Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 24, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CHEMICAL FINANCIAL CORP | |
Entity Central Index Key | 19,612 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 38,112,634 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Cash and cash equivalents: | |||
Cash and cash due from banks | $ 167,054 | $ 144,892 | $ 139,023 |
Interest-bearing deposits with the Federal Reserve Bank and other banks | 47,980 | 38,128 | 1,271 |
Total cash and cash equivalents | 215,034 | 183,020 | 140,294 |
Investment securities: | |||
Available-for-sale, at fair value | 685,706 | 748,864 | 615,975 |
Held-to-maturity (fair value - $466,578 at June 30, 2015, $315,740 at December 31, 2014 and $303,961 at June 30, 2014) | 469,837 | 316,413 | 308,130 |
Total investment securities | 1,155,543 | 1,065,277 | 924,105 |
Loans held-for-sale, at fair value | 7,798 | 9,128 | 6,329 |
Loans | 7,034,743 | 5,688,230 | 4,898,804 |
Allowance for loan losses | (74,941) | (75,683) | (77,793) |
Net loans | 6,959,802 | 5,612,547 | 4,821,011 |
Premises and equipment (net of accumulated depreciation of $112,530 at June 30, 2015, $108,826 at December 31, 2014 and $104,225 at June 30, 2014) | 111,968 | 97,496 | 74,291 |
Goodwill | 285,512 | 180,128 | 120,164 |
Other intangible assets | 41,201 | 33,080 | 12,454 |
Interest receivable and other assets | 243,867 | 141,467 | 133,327 |
Total Assets | 9,020,725 | 7,322,143 | 6,231,975 |
Deposits: | |||
Noninterest-bearing | 1,860,863 | 1,591,661 | 1,283,439 |
Interest-bearing | 5,432,116 | 4,487,310 | 3,809,474 |
Total deposits | 7,292,979 | 6,078,971 | 5,092,913 |
Interest payable and other liabilities | 66,174 | 56,572 | 40,142 |
Short-term borrowings | 532,291 | 389,467 | 305,422 |
Other Borrowings | 148,490 | 0 | 0 |
Total liabilities | 8,039,934 | 6,525,010 | 5,438,477 |
Shareholders’ equity: | |||
Preferred Stock, No Par Value: Authorized – 2,000,000 shares at June 30, 2015 and 200,000 shares at both December 31, 2014 and June 30, 2014, none issued | 0 | 0 | 0 |
Common Stock, $1 par value: Issued and outstanding — 38,110,136 shares at June 30, 2015, 32,774,420 shares at December 31, 2014 and 32,760,088 shares at June 30, 2014 | 38,110 | 32,774 | 32,760 |
Additional paid-in capital | 722,329 | 565,166 | 563,393 |
Retained earnings | 251,456 | 231,646 | 215,333 |
Accumulated other comprehensive loss | (31,104) | (32,453) | (17,988) |
Total shareholders’ equity | 980,791 | 797,133 | 793,498 |
Total Liabilities and Shareholders’ Equity | $ 9,020,725 | $ 7,322,143 | $ 6,231,975 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Position (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Held-to-maturity, fair value | $ 466,578 | $ 315,740 | $ 303,961 |
Accumulated depreciation of premises and equipment | $ 112,530 | $ 108,826 | $ 104,225 |
Preferred stock, no par value | |||
Preferred stock, shares authorized | 2,000,000 | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized | 60,000,000 | 45,000,000 | 45,000,000 |
Common stock, shares issued | 38,110,136 | 32,774,420 | 32,760,088 |
Common stock, shares outstanding | 38,110,136 | 32,774,420 | 32,760,088 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest Income | ||||
Interest and fees on loans | $ 64,613 | $ 50,751 | $ 122,710 | $ 99,946 |
Interest on investment securities: | ||||
Taxable | 2,202 | 2,248 | 4,509 | 4,631 |
Tax-exempt | 2,185 | 1,671 | 4,091 | 3,375 |
Dividends on nonmarketable equity securities | 551 | 411 | 749 | 649 |
Interest on deposits with the Federal Reserve Bank and other banks | 128 | 99 | 250 | 224 |
Total interest income | 69,679 | 55,180 | 132,309 | 108,825 |
Interest Expense | ||||
Interest on deposits | 3,630 | 3,626 | 6,982 | 7,371 |
Interest on short-term borrowings | 101 | 94 | 199 | 215 |
Interest on other borrowings | 213 | 0 | 213 | 0 |
Total interest expense | 3,944 | 3,720 | 7,394 | 7,586 |
Net Interest Income | 65,735 | 51,460 | 124,915 | 101,239 |
Provision for loan losses | 1,500 | 1,500 | 3,000 | 3,100 |
Net interest income after provision for loan losses | 64,235 | 49,960 | 121,915 | 98,139 |
Noninterest Income | ||||
Service charges and fees on deposit accounts | 6,445 | 5,486 | 12,361 | 10,416 |
Wealth management revenue | 5,605 | 3,958 | 10,676 | 7,589 |
Other charges and fees for customer services | 6,516 | 4,682 | 12,506 | 8,876 |
Mortgage banking revenue | 1,688 | 1,491 | 3,091 | 2,285 |
Gain on sale of investment securities | 28 | 0 | 607 | 0 |
Other | 392 | 184 | 708 | 351 |
Total noninterest income | 20,674 | 15,801 | 39,949 | 29,517 |
Operating Expenses | ||||
Salaries, wages and employee benefits | 31,711 | 24,860 | 60,964 | 49,044 |
Occupancy | 4,386 | 3,638 | 8,812 | 8,012 |
Equipment and software | 4,480 | 3,413 | 8,878 | 6,874 |
Business Combination, Acquisition Related Costs | 3,457 | 647 | 4,819 | 970 |
Other | 12,751 | 9,867 | 24,332 | 19,707 |
Total operating expenses | 56,785 | 42,425 | 107,805 | 84,607 |
Income before income taxes | 28,124 | 23,336 | 54,059 | 43,049 |
Federal income tax expense | 9,100 | 7,100 | 17,200 | 13,000 |
Net Income | $ 19,024 | $ 16,236 | $ 36,859 | $ 30,049 |
Net Income Per Common Share: | ||||
Basic (in dollars per share) | $ 0.54 | $ 0.54 | $ 1.08 | $ 1 |
Diluted (in dollars per share) | 0.54 | 0.54 | 1.08 | 1 |
Cash Dividends Declared Per Common Share (dollars per share) | $ 0.24 | $ 0.23 | $ 0.48 | $ 0.46 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 19,024 | $ 16,236 | $ 36,859 | $ 30,049 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on investment securities available-for-sale, net of tax expense (benefit) of $(1,084) and $909 for the three months ended June 30, 2015 and 2014, respectively, and $177 and $1,766 for the six months ended June 30, 2015 and 2014, respectively | (2,014) | 1,687 | 331 | 3,280 |
Reclassification adjustment for realized gain on sale of investment securities available-for-sale included in net income, net of tax expense of $10 for the three months ended June 30, 2015 and $212 for the six months ended June 30, 2015 | (18) | 0 | (395) | 0 |
Adjustment for pension and other postretirement benefits, net of tax expense (benefit) of $380 and $(202) for the three months ended June 30, 2015 and 2014, respectively, and $761 and $(403) for the six months ended June 30, 2015 and 2014, respectively | 707 | (374) | 1,413 | (748) |
Total other comprehensive income (loss), net of tax | (1,325) | 1,313 | 1,349 | 2,532 |
Comprehensive income | $ 17,699 | $ 17,549 | $ 38,208 | $ 32,581 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Tax expense (benefit) on net unrealized gains (losses) on investment securities available-for-sale | $ (1,084) | $ 909 | $ 177 | $ 1,766 |
Tax expense (benefit) on reclassification adjustment for realized gains on sale of investment securities available-for-sale | (10) | 0 | (212) | 0 |
Tax expense (benefit) on adjustment for pension and other postretirement benefits | $ 380 | $ (202) | $ 761 | $ (403) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2013 | $ 696,500 | $ 29,790 | $ 488,177 | $ 199,053 | $ (20,520) |
Changes in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | 32,581 | 30,049 | 2,532 | ||
Cash dividends declared per share: $0.48 and $0.46 per share for the six months ended June 30, 2015 and June 30, 2014, respectively | (13,769) | (13,769) | |||
Stock Issued During Period, Value, New Issues | 76,175 | 2,875 | 73,300 | ||
Stock issued - stock options | 854 | 41 | 813 | ||
Shares issued – directors’ stock plans | 468 | 18 | 450 | ||
Shares issued – restricted stock units | (484) | $ 36 | (520) | ||
Share-based compensation | 1,173 | 1,173 | |||
Ending Balance at Jun. 30, 2014 | 793,498 | $ 32,760 | 563,393 | 215,333 | (17,988) |
Beginning Balance at Dec. 31, 2014 | 797,133 | 32,774 | 565,166 | 231,646 | (32,453) |
Changes in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income | 38,208 | 36,859 | 1,349 | ||
Cash dividends declared per share: $0.48 and $0.46 per share for the six months ended June 30, 2015 and June 30, 2014, respectively | (17,049) | (17,049) | |||
Stock Issued During Period, Value, Acquisitions | 159,904 | 5,183 | 154,721 | ||
Stock issued - stock options | 1,146 | 88 | 1,058 | ||
Shares issued – directors’ stock plans | 316 | 11 | 305 | ||
Shares issued – restricted stock units | (328) | 53 | (381) | ||
Share-based compensation | 1,461 | 1 | 1,460 | ||
Ending Balance at Jun. 30, 2015 | $ 980,791 | $ 38,110 | $ 722,329 | $ 251,456 | $ (31,104) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash dividends declared per share | $ 0.24 | $ 0.23 | $ 0.48 | $ 0.46 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities | ||
Net income | $ 36,859 | $ 30,049 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 3,000 | 3,100 |
Gains on sales of loans | (3,375) | (1,680) |
Proceeds from sales of loans | 119,683 | 59,490 |
Loans originated for sale | (111,903) | (58,920) |
Net gains from sales/writedowns of other real estate and repossessed assets | (1,578) | (856) |
Depreciation of premises and equipment | 5,239 | 4,238 |
Amortization of intangible assets | 3,787 | 1,391 |
Net gains on sale of investment securities | (607) | 0 |
Net amortization of premiums and discounts on investment securities | 2,759 | 2,129 |
Share-based compensation expense | 1,461 | 1,173 |
Net increase in interest receivable and other assets | (11,695) | (1,503) |
Net increase (decrease) in interest payable and other liabilities | (15,727) | 754 |
Net cash provided by operating activities | 27,903 | 39,365 |
Investment securities – available-for-sale: | ||
Proceeds from sales | 13,173 | 0 |
Proceeds from maturities, calls and principal reductions | 113,973 | 71,919 |
Investment securities – held-to-maturity: | ||
Proceeds from maturities, calls and principal reductions | 54,481 | 66,230 |
Purchases | (205,286) | (100,862) |
Net increase in loans | (250,997) | (260,201) |
Proceeds from sales of other real estate and repossessed assets | 7,934 | 4,879 |
Purchases of premises and equipment, net of disposals | (3,333) | (3,221) |
Cash Acquired in Excess of Payments to Acquire Business | 16,551 | 0 |
Net cash used in investing activities | (253,504) | (221,256) |
Financing Activities | ||
Net increase in interest- and noninterest-bearing demand deposits and savings accounts | 217,719 | 23,559 |
Net decrease in time deposits | (72,795) | (53,031) |
Net increase (decrease) in short-term borrowings | 103,824 | (22,006) |
Proceeds from (Repayments of) Other Debt | 25,000 | 0 |
Cash dividends paid | (17,049) | (13,769) |
Proceeds from Issuance of Common Stock | 0 | 76,175 |
Proceeds from directors’ stock plans and exercise of stock options, net of shares withheld | 1,462 | 1,163 |
Cash paid for payroll taxes upon conversion of share-based awards | (546) | (694) |
Net cash provided by financing activities | 257,615 | 11,397 |
Net increase (decrease) in cash and cash equivalents | 32,014 | (170,494) |
Cash and cash equivalents at beginning of period | 183,020 | 310,788 |
Cash and cash equivalents at end of period | 215,034 | 140,294 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 6,592 | 7,719 |
Loans transferred to other real estate and repossessed assets | 5,908 | 4,639 |
Transfer Of Other Real Estate, Closed Branch Offices | 359 | 0 |
Income Taxes Paid | 20,800 | 12,900 |
Fair Value of Tangible Assets Acquired | 1,284,552 | 0 |
Goodwill and Identifiable Intangible Assets Acquired | 116,478 | 0 |
Liabilities Assumed | 1,257,917 | 0 |
Stock Issued | $ 159,904 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Nature of Operations Chemical Financial Corporation (Corporation) operates in a single operating segment — commercial banking. The Corporation is a financial holding company, headquartered in Midland, Michigan, that operates through three commercial banks, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan. The Bank of Holland and The Bank of Northern Michigan, which were acquired in the May 31, 2015 acquisition of Lake Michigan Financial Corporation (Lake Michigan), are expected to be consolidated with and into Chemical Bank during the fourth quarter of 2015 in conjunction with the conversion of their core data systems to Chemical Bank's. In addition, the Corporation acquired Monarch Community Bank as part of its April 1, 2015 acquisition of Monarch Community Bancorp, Inc. (Monarch). Monarch Community Bank was consolidated with and into Chemical Bank during the second quarter of 2015. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products. The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue. Basis of Presentation The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . 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 May 31, 2015, the Corporation acquired all the outstanding stock of Lake Michigan for total consideration of $187.4 million , which included stock consideration of $132.9 million and cash consideration of $54.5 million . The Corporation recorded $100 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition. On April 1, 2015, the Corporation acquired all the outstanding stock of Monarch in an all-stock transaction valued at $27.2 million . The Corporation recorded $5.4 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition. 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 Bancorp, Inc. (Northwestern), which occurred on October 31, 2014, Lake Michigan, and Monarch, 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. See Note 2 for further information regarding the Corporation's acquisitions. Originated Loans Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period. The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months ) and collectibility is no longer in doubt. Loans Acquired in a Business Combination Loans acquired in a business combination (acquired loans) consist of loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern, and on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date. The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 2 pools in the acquisition of Lake Michigan, 2 pools in the acquisition of Monarch, 4 pools in the acquisition of Northwestern and 14 pools in 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 estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool. Loans Modified Under Troubled Debt Restructurings Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. In accordance with ASC Topic 310-30, acquired loans are excluded from TDRs as these loans are accounted for in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six -month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been renewed by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR. Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the 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 charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty. In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five -year historical loan loss experience, with higher weighting placed on the most recent years, loan loss trends 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. Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off. Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods. Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations. Fair Value Measurements Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2015 , December 31, 2014 and June 30, 2014 , the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities. Share-Based Compensation The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period. Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows. Bank-Owned Life Insurance The Corporation has life insurance policies on certain key officers of its bank subsidiaries. The majority of the bank-owned life insurance policies of the Corporation were obtained through its acquisition of Lake Michigan. Bank-owned life insurance is recorded at the cash surrender value, net of surrender charges, and is included within other assets on the consolidated statements of financial position and changes in the cash surrender values are recorded as other noninterest income on the consolidated statements of income. Income and Other Taxes The Corporation is subject to the income and other tax laws of the United States, the State of Michigan and any other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law. On a quarterly basis, management assesses the reasonableness of its 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. In conjunction with the acquisition of Monarch, the Corporation has net operating loss carryforwards, which are limited under Internal Revenue Code (IRC) Section 382, included in deferred tax assets. See Note 2 for further information regarding the net operating loss carryforward. Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2015 , December 31, 2014 or June 30, 2014 . Tax returns open to examination by the Internal Revenue Service (IRS) include those for the calendar years ended December 31, 2014 , 2013 , 2012 and 2011 for the Corporation, Lake Michigan, Monarch and Northwestern. Monarch's tax returns for the calendar years ended 2009-2013 are currently under an IRS examination. Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits The Corporation invests in qualified affordable housing projects, federal historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits. Return on the Corporation's investment of these projects comes in the form of the tax credits and and tax losses that pass through to the Corporation. The carrying value of the investments are reflected in other assets on the consolidated statements of financial position. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects and the equity method to account for investments in other tax credit projects. Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.2 million and $0.3 million during the three and six months ended June 30, 2015 , respectively, and $0.1 million and $0.2 million during the three and six months ended June 30, 2014 , respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $21.4 million at June 30, 2015 , $4.9 million at December 31, 2014 and $3.1 million at June 30, 2014 . The increase in qualified affordable housing project investments at June 30, 2015, compared to December 31, 2014 and June 30, 2014, was attributable to investments acquired as part of the Lake Michigan transaction. Under the equity method, the Corporation's share of the earnings or losses are included in other operating expenses on the consolidated statements of income. The Corporation's investment in new market projects accounted for under the equity method totaled $3.3 million at June 30, 2015. There were no investments in such projects accounted for under the equity method as of December 31, 2014 or June 30, 2 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Acquisition of Lake Michigan Financial Corporation On May 31, 2015, the Corporation acquired all the outstanding stock consideration of Lake Michigan Financial Corporation (Lake Michigan) for total consideration of $187.4 million , which included stock consideration of $132.9 million and cash consideration of $54.5 million . As a result of the acquisition, the Corporation issued approximately 4.3 million shares of its common stock, based on an exchange ratio of 1.326 shares of its common stock, and paid $16.64 in cash, for each share of Lake Michigan common stock outstanding. Lake Michigan, a bank holding company which owned The Bank of Holland and The Bank of Northern Michigan, provided traditional banking services and products with five banking offices in Holland, Grand Haven, Grand Rapids, Petoskey and Traverse City, Michigan. The Bank of Holland and The Bank of Northern Michigan will be operated as separate subsidiaries of the Corporation until their planned consolidation with and into Chemical Bank in the fourth quarter of 2015 in conjunction with conversion of their core data systems to Chemical Bank's. At the acquisition date, Lake Michigan added total assets of $1.24 billion , including total loans of $986 million , and total deposits of $925 million to the Corporation's consolidated statement of financial position. The Corporation recorded $ 100 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Lake Michigan. In addition, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition. The results of the merged Lake Michigan operations are presented within the Corporation's consolidated financial statements from the acquisition date. The Bank of Holland and The Bank of Northern Michigan collectively contributed $3.2 million of net interest income, $0.3 million of noninterest income and $1.1 million of net income to the Corporation's consolidated statements of income for the one month period from the acquisition date of May 31, 2015 to June 30, 2015. Nonrecurring transaction-related expenses associated with the Lake Michigan transaction totaled $2.0 million and $2.3 million during the three and six months ended June 30, 2015, respectively. The summary computation of the purchase price, including adjustments to reflect Lake Michigan's assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Lake Michigan 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): Fair value of the Corporation's common shares issued on May 31, 2015 (4,322,101 shares at a market price of $30.29 per share) $ 130,916 Fair value of Lake Michigan options converted to the Corporation's options 2,000 Cash paid to acquire outstanding stock 54,478 Total purchase price $ 187,394 Net assets acquired: Lake Michigan shareholders' equity $ 89,280 Adjustments to reflect fair value of net assets acquired: Loans (22,600 ) Allowance for loan losses 15,888 Premises and equipment (2,333 ) Core deposit intangibles 7,303 Deferred tax assets, net 2,269 Deposits and borrowings, net (3,048 ) Other assets and other liabilities 633 Fair value of adjusted net assets acquired 87,392 Goodwill recognized as a result of the Lake Michigan transaction $ 100,002 Allocation of Purchase Price The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Lake Michigan were as follows (in thousands): Assets Cash and cash equivalents $ 39,301 Investment securities 66,699 Loans 985,542 Premises and equipment 13,673 Deferred tax asset, net 14,888 Goodwill 100,002 Core deposit intangible asset 7,303 Bank-owned life insurance 23,844 Other assets 38,449 Assets acquired, at fair value 1,289,701 Liabilities Deposits 924,697 Short-term borrowings 30,000 Other borrowings 124,723 Other liabilities 22,887 Total liabilities acquired, at fair value 1,102,307 Total purchase price $ 187,394 Upon acquisition, the Lake Michigan loan portfolio had contractually required principal and interest payments receivable of $1.01 billion and $190.2 million , respectively, expected principal and interest cash flows of $986.1 million and $189.6 million , respectively, and a fair value of $985.5 million . The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $22.6 million at the acquisition date, with $22.0 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $190.2 million at the date of acquisition. At June 30, 2015, the outstanding contractual principal balance and the carrying amount of the Lake Michigan acquired loan portfolio were $990 million and $967 million , respectively, and there was no related allowance for loan losses at that date. Acquisition of Monarch Community Bancorp, Inc. On April 1, 2015, the Corporation acquired all of the outstanding stock of Monarch Community Bancorp, Inc. (Monarch) in an all-stock transaction valued at $27.2 million . As a result of the acquisition, the Corporation issued 860,575 shares of its common stock based on an exchange ratio of 0.0982 shares of its common stock for each share of Monarch common stock outstanding. Monarch, a bank holding company, owned Monarch Community Bank, which operated five full service branch offices in Coldwater, Marshall, Hillsdale and Union City, Michigan. As of the April 1, 2015 acquisition date, Monarch added total assets of $183 million , including total loans of $122 million , and total deposits of $144 million to the Corporation's consolidated statement of financial position. Monarch Community Bank was consolidated with and into Chemical Bank on May 8, 2015. In connection with the acquisition of Monarch, the Corporation recorded $5.4 million of goodwill, which was primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and Monarch. In addition, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition. The results of the merged Monarch operations are presented within the Corporation's consolidated financial statements from the acquisition date. The disclosure of Monarch's post-acquisition revenue and net income is not practical due to the combining of Monarch's operations with and into Chemical Bank early in the second quarter of 2015. Nonrecurring transaction-related expenses associated with the Monarch acquisition totaled $ 1.5 million and $2.3 million during the three and six months ended June 30, 2015, respectively. The summary computation of the purchase price, including adjustments to reflect Monarch's assets acquired and liabilities assumed at fair value and the allocation of the purchase price to the net assets of Monarch 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 provide 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): Fair value of the Corporation's common shares issued on April 1, 2015 (860,575 shares at a market price of $31.36 per share) $ 26,988 Cash paid 203 Total purchase price $ 27,191 Net assets acquired: Monarch shareholders' equity 15,270 Adjustments to reflect fair value of net assets acquired: Loans (7,150 ) Allowance for loan losses 2,128 Deferred tax assets, net: Net operating loss carryforward 7,900 Other 1,748 Premises and equipment (370 ) Core deposit intangibles 1,930 Mortgage servicing rights 315 Other assets and other liabilities 37 Fair value of adjusted net assets acquired 21,808 Goodwill recognized as a result of the Monarch transaction $ 5,383 Allocation of Purchase Price The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Monarch were as follows (in thousands): Assets Cash and cash equivalents $ 32,171 Loans 121,783 Premises and equipment 3,064 Deferred tax assets, net Net operating loss carryforward 7,900 Other 2,314 Interest receivable and other assets 6,972 Goodwill 5,383 Core deposit intangibles 1,930 Mortgage servicing rights 1,284 Assets acquired, at fair value 182,801 Liabilities Deposits 144,311 FHLB advances 8,000 Interest payable and other liabilities 3,299 Total liabilities acquired, at fair value 155,610 Total purchase price $ 27,191 Upon acquisition, the Monarch loan portfolio had contractually required principal and interest payments receivable of $128.9 million and $37.8 million , respectively, expected principal and interest cash flows of $122.6 million and $37.1 million , respectively, and a fair value of $121.8 million . The difference between the contractually required payments receivable and the expected cash flows represents the nonaccretable difference, which totaled $7.1 million at the acquisition date, with $6.3 million attributable to expected credit losses. The difference between the expected cash flows and fair value represents the accretable yield, which totaled $37.9 million at the date of acquisition. At June 30, 2015, the outstanding contractual principal balance and the carrying amount of the Monarch acquired loan portfolio were $126 million and $119 million , respectively, and there was no related allowance for loan losses at that date. Upon acquisition, Monarch incurred an ownership change within the meaning of IRC Section 382. At April 1, 2015, Monarch had $22.6 million in gross federal net operating loss carryforwards that expire between 2028-2034, which the Corporation expects to utilize. The Corporation expects to utilize these net operating losses, in part, as Monarch was in a net unrealized built-in gain position as of the acquisition date. Monarch also had $1.7 million of general business credits that expire between 2026-2032, which the Corporation does not expect to utilize. Unaudited Pro Forma Combined Results of Operations The following presentation of unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch, and Northwestern presents these results as if the acquisitions 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 indicative of future results. In particular, no adjustments have been made to eliminate the amount of Lake Michigan's, Monarch's, or 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 addition, no adjustment has been made for the lost opportunity cost associated with the all-cash purchase of Northwestern. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Interest income $ 78,137 $ 74,842 $ 154,261 $ 148,089 Interest expense 5,483 6,748 11,363 13,627 Net interest income 72,654 68,094 142,898 134,462 Provision for loan losses 1,500 1,860 3,000 4,035 Net interest income after provision for loan losses 71,154 66,234 139,898 130,427 Noninterest income 21,153 23,713 43,180 43,487 Operating expenses 62,394 59,915 123,042 121,241 Income before income taxes 29,913 30,032 60,036 52,673 Federal income tax expense 7,525 9,048 16,736 15,807 Net income $ 22,388 $ 20,984 $ 43,300 $ 36,866 Net income per common share: Basic $ 0.59 $ 0.60 $ 1.14 $ 1.05 Diluted 0.58 0.59 1.13 1.04 Weighted average shares outstanding: Basic 38,044 35,251 38,024 35,129 Diluted 38,279 35,462 38,259 35,398 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. At the 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. 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. The outstanding contractual principal balance and the carrying amount of the Northwestern acquired loan portfolio were $415 million and $382 million , respectively, at June 30, 2015 , compared to $485 million and $452 million , respectively, at December 31, 2014 . Acquisition of 21 Branches On December 7, 2012, Chemical Bank acquired 21 branches from Independent Bank, a subsidiary of Independent Bank Corporation, located in the Northeast and Battle Creek regions of Michigan, including $404 million in deposits and $44 million in loans (branch acquisition transaction). The purchase price of the branch offices, including equipment, was $8.1 million and the Corporation paid a premium on deposits of $11.5 million , or approximately 2.85% of total deposits. The loans were purchased at a discount of 1.75% . In connection with the branch acquisition transaction, the Corporation recorded goodwill of $6.8 million and other intangible assets attributable to customer core deposits of $5.6 million . Acquisition of O.A.K. Financial Corporation (OAK) On April 30, 2010, the Corporation acquired OAK in an all-stock transaction for total consideration of $83.7 million . OAK provided traditional banking services and products through 14 banking offices serving communities in Ottawa, Allegan and Kent counties in west Michigan. At the acquisition date, OAK added total assets of $820 million , including total loans of $627 million , and total deposits of $693 million , including brokered deposits of $193 million . Upon acquisition, the OAK loan portfolio had contractually required principal payments receivable of $683 million and a fair value of $627 million . The outstanding contractual principal balance and the carrying amount of the OAK acquired loan portfolio were $236 million and $215 million , respectively, at June 30, 2015 , compared to $268 million and $246 million , respectively, at December 31, 2014 and $298 million and $274 million , respectively, at June 30, 2014 . 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: Six Months Ended June 30, 2015 2014 Lake Michigan Monarch North-western OAK Total OAK (In thousands) Balance at beginning of period $ — $ — $ 104,675 $ 33,286 137,961 $ 32,610 Additions attributable to acquisitions 190,246 37,914 — — 228,160 — Additions (reductions)* 1,550 (1,141 ) (2,859 ) 5,215 2,765 2,333 Accretion recognized in interest income (3,486 ) (968 ) (10,058 ) (6,326 ) (20,838 ) (7,594 ) Reclassification from nonaccretable difference — — — — — 10,000 Balance at end of period $ 188,310 $ 35,805 $ 91,758 $ 32,175 $ 348,048 $ 37,349 *Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2015 , December 31, 2014 and June 30, 2014 : Investment Securities Available-for-Sale Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In thousands) June 30, 2015 U.S. Treasury securities $ 8,270 $ 24 $ — $ 8,294 Government sponsored agencies 227,424 683 200 227,907 State and political subdivisions 26,476 503 14 26,965 Residential mortgage-backed securities 213,621 742 1,694 212,669 Collateralized mortgage obligations 167,768 245 981 167,032 Corporate bonds 39,680 76 78 39,678 Preferred stock and trust preferred securities 2,889 272 — 3,161 Total $ 686,128 $ 2,545 $ 2,967 $ 685,706 December 31, 2014 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 June 30, 2014 Government sponsored agencies $ 88,503 $ 346 $ 141 $ 88,708 State and political subdivisions 40,165 1,443 — 41,608 Residential mortgage-backed securities 265,673 1,117 1,422 265,368 Collateralized mortgage obligations 154,035 376 1,128 153,283 Corporate bonds 64,979 456 83 65,352 Preferred stock 1,389 267 — 1,656 Total $ 614,744 $ 4,005 $ 2,774 $ 615,975 Investment Securities Held-to-Maturity Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In thousands) June 30, 2015 State and political subdivisions $ 469,337 $ 4,853 $ 7,912 $ 466,278 Trust preferred securities 500 — 200 300 Total $ 469,837 $ 4,853 $ 8,112 $ 466,578 December 31, 2014 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 June 30, 2014 State and political subdivisions $ 297,630 $ 5,885 $ 6,329 $ 297,186 Trust preferred securities 10,500 — 3,725 6,775 Total $ 308,130 $ 5,885 $ 10,054 $ 303,961 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). As of December 31, 2014 and June 30, 2014, the Corporation held a $10.0 million trust preferred investment security of Lake Michigan. With the acquisition of Lake Michigan, this investment was settled as of the acquisition date at par. The following is a summary of the amortized cost and fair value of investment securities at June 30, 2015 , 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. June 30, 2015 Amortized Cost Fair Value (In thousands) Investment Securities Available-for-Sale: Due in one year or less $ 198,939 $ 198,680 Due after one year through five years 411,399 411,247 Due after five years through ten years 68,583 68,295 Due after ten years 5,818 5,823 Preferred stock 1,389 1,661 Total $ 686,128 $ 685,706 Investment Securities Held-to-Maturity: Due in one year or less $ 55,922 $ 56,043 Due after one year through five years 209,886 209,768 Due after five years through ten years 127,398 125,775 Due after ten years 76,631 74,992 Total $ 469,837 $ 466,578 The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2015 , December 31, 2014 and June 30, 2014 , 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 Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) June 30, 2015 Government sponsored agencies $ 24,789 $ 163 $ 14,715 $ 37 $ 39,504 $ 200 State and political subdivisions 258,503 5,433 63,584 2,493 322,087 7,926 Residential mortgage-backed securities 187,858 1,592 3,643 102 191,501 1,694 Collateralized mortgage obligations 49,845 155 48,881 826 98,726 981 Corporate bonds 9,670 49 14,971 29 24,641 78 Trust preferred securities — — 300 200 300 200 Total $ 530,665 $ 7,392 $ 146,094 $ 3,687 $ 676,759 $ 11,079 December 31, 2014 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 Total $ 317,885 $ 3,998 $ 302,630 $ 7,295 $ 620,515 $ 11,293 June 30, 2014 Government sponsored agencies $ 2,377 $ 2 $ 44,786 $ 139 $ 47,163 $ 141 State and political subdivisions 92,279 4,047 71,421 2,282 163,700 6,329 Residential mortgage-backed securities 10,144 60 197,042 1,362 207,186 1,422 Collateralized mortgage obligations 47,142 68 35,722 1,060 82,864 1,128 Corporate bonds 4,996 5 14,922 78 19,918 83 Trust preferred securities — — 6,775 3,725 6,775 3,725 Total $ 156,938 $ 4,182 $ 370,668 $ 8,646 $ 527,606 $ 12,828 An assessment is performed quarterly by the Corporation to determine whether unrealized losses in its investment securities portfolio are temporary or other-than-temporary by carefully considering all available information. The Corporation reviews factors such as financial statements, credit ratings, news releases and other pertinent information of the underlying issuer or company to make its determination. Management did not believe any individual unrealized loss on any investment security, as of June 30, 2015 , represented an other-than-temporary impairment (OTTI). Management believed that the unrealized losses on investment securities at June 30, 2015 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. At June 30, 2015 , the Corporation did not have the intent to sell any of its impaired investment securities and believed that it was more-likely-than-not that the Corporation will not have to sell any such investment securities before a full recovery of amortized cost. Accordingly, at June 30, 2015 , the Corporation believed the impairments in its investment securities portfolio were temporary in nature. However, there is no assurance that OTTI may not occur in the future. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans | Loans Loan portfolio segments are defined as the level at which an entity develops and documents a systematic methodology to determine its allowance. The Corporation has two loan portfolio segments (commercial loans and consumer loans) that it uses in determining the allowance. Both quantitative and qualitative factors are used by management at the loan portfolio segment level in determining the adequacy of the allowance for the Corporation. Classes of loans are a disaggregation of an entity’s loan portfolio segments. Classes of loans are defined as a group of loans which share similar initial measurement attributes, risk characteristics, and methods for monitoring and assessing credit risk. The Corporation has seven classes of loans, which are set forth below. Commercial — Loans and lines of credit to varying types of businesses, including municipalities, school districts and nonprofit organizations, for the purpose of supporting working capital, operational needs and term financing of equipment. Repayment of such loans is generally provided through operating cash flows of the business. Commercial loans are predominately secured by equipment, inventory, accounts receivable, personal guarantees of the owner and other sources of repayment, although the Corporation may also secure commercial loans with real estate. Commercial real estate — Loans secured by real estate occupied by the borrower for ongoing operations, non-owner occupied real estate leased to one or more tenants and vacant land that has been acquired for investment or future land development. Real estate construction — Secured loans for the construction of business properties. Real estate construction loans often convert to a commercial real estate loan at the completion of the construction period. Land development — Secured development loans made to borrowers for the purpose of infrastructure improvements to vacant land to create finished marketable residential and commercial lots/land. Most land development loans are originated with the intention that the loans will be paid through the sale of developed lots/land by the developers within twelve months of the completion date. Land development loans at June 30, 2015 , December 31, 2014 and June 30, 2014 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 and comprised primarily of indirect loans purchased from dealers. These loans consist of relatively small amounts that are spread across many individual borrowers. Home equity — Loans and lines of credit whereby consumers utilize equity in their personal residence, generally through a second mortgage, as collateral to secure the loan. Commercial, commercial real estate, real estate construction and land development loans are referred to as the Corporation’s commercial loan portfolio, while residential mortgage, consumer installment and home equity loans are referred to as the Corporation’s consumer loan portfolio. A summary of loans follows: June 30, December 31, June 30, (In thousands) Commercial loan portfolio: Commercial $ 1,754,873 $ 1,354,881 $ 1,212,383 Commercial real estate 2,243,513 1,557,648 1,298,365 Real estate construction 101,717 152,745 101,168 Land development 10,595 18,750 10,956 Subtotal 4,110,698 3,084,024 2,622,872 Consumer loan portfolio: Residential mortgage 1,310,167 1,110,390 970,397 Consumer installment 887,907 829,570 744,781 Home equity 725,971 664,246 560,754 Subtotal 2,924,045 2,604,206 2,275,932 Total loans $ 7,034,743 $ 5,688,230 $ 4,898,804 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, through its subsidiary banks, 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 six executive and senior officers who have varying limits exceeding $1.5 million and up to $3.5 million . During the first quarter of 2015, the Corporation increased the upper range for each level of group loan authority by $5.0 million , resulting in group loan authorities as follows. Chemical Bank 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 $10.0 million , depending on risk rating and credit action required. A directors’ loan committee of Chemical Bank, consisting of eight independent members of the board of directors of Chemical Bank, the chief executive officer of Chemical Bank and senior credit officer of Chemical Bank, meets bi-weekly to consider loans in amounts over $10.0 million , and certain loans under $10.0 million depending on a loan’s risk rating and credit action required. Loans over $15.0 million require majority approval of the board of directors of Chemical Bank. The approval authorities of relationship managers at The Bank of Holland and The Bank of Northern Michigan are similar to those at Chemical Bank, while approval authority for the loan committees at The Bank of Holland and The Bank of Northern Michigan are lower than those at Chemical Bank. Further, certain loan relationships of The Bank of Holland and The Bank of Northern Michigan, depending on a loan’s risk rating and credit action needed, require approval by the directors' loan committee of Chemical Bank, in addition to approval by the respective board of directors of The Bank of Holland or The Bank of Northern Michigan. The majority of the Corporation’s consumer loan portfolio is comprised of secured loans that are relatively small. The Corporation’s consumer loan portfolio has a centralized approval process which utilizes standardized underwriting criteria. The ongoing measurement of credit quality of the consumer loan portfolio is largely done on an exception basis. If payments are made on schedule, as agreed, then no further monitoring is performed. However, if delinquency occurs, the delinquent loans are turned over to the Corporation’s collection department for resolution, resulting in repossession or foreclosure if payments are not brought current. Credit quality for the entire consumer loan portfolio is measured by the periodic delinquency rate, nonaccrual amounts and actual losses incurred. Loans in the commercial loan portfolio tend to be larger and more complex than those in the consumer loan portfolio, and therefore, are subject to more intensive monitoring. All loans in the commercial loan portfolio have an assigned relationship manager, and most borrowers provide periodic financial and operating information that allows the relationship managers to stay abreast of credit quality during the life of the loans. The risk ratings of loans in the commercial loan portfolio are reassessed at least annually, with loans below an acceptable risk rating reassessed more frequently and reviewed by various loan committees within the Corporation at least quarterly. The Corporation maintains a centralized independent loan review function that monitors the approval process and ongoing asset quality of the loan portfolio, including the accuracy of loan grades. The Corporation also maintains an independent appraisal review function that participates in the review of all appraisals obtained by the Corporation for loans in the commercial loan portfolio. Credit Quality Indicators Commercial Loan Portfolio The Corporation uses a nine grade risk rating system to monitor the ongoing credit quality of its commercial loan portfolio. These loan grades rank the credit quality of a borrower by measuring liquidity, debt capacity, coverage and payment behavior as shown in the borrower’s financial statements. The loan grades also measure the quality of the borrower’s management and the repayment support offered by any guarantors. A summary of the Corporation’s loan grades (or characteristics of the loans within each grade) follows: Risk Grades 1-5 (Acceptable Credit Quality) — All loans in risk grades 1 through 5 are considered to be acceptable credit risks by the Corporation and are grouped for purposes of allowance for loan loss considerations and financial reporting. The five grades essentially represent a ranking of loans that are all viewed to be of acceptable credit quality, taking into consideration the various factors mentioned above, but with varying degrees of financial strength, debt coverage, management and factors that could impact credit quality. Business credits within risk grades 1 through 5 range from Risk Grade 1: Prime Quality (factors include: excellent business credit; excellent debt capacity and coverage; outstanding management; strong guarantors; superior liquidity and net worth; favorable loan-to-value ratios; debt secured by cash or equivalents, or backed by the full faith and credit of the U.S. Government) to Risk Grade 5: Acceptable Quality With Care (factors include: acceptable business credit, but with added risk due to specific industry or internal situations). Risk Grade 6 (Watch) — A business credit that is not acceptable within the Corporation’s loan origination criteria; cash flow may not be adequate or is continually inconsistent to service current debt; financial condition has deteriorated as company trends/management have become inconsistent; the company is slow in furnishing quality financial information; working capital needs of the company are reliant on short-term borrowings; personal guarantees are weak and/or with little or no liquidity; the net worth of the company has deteriorated after recent or continued losses; the loan requires constant monitoring and attention from the Corporation; payment delinquencies becoming more serious; if left uncorrected, these potential weaknesses may, at some future date, result in deterioration of repayment prospects. Risk Grade 7 (Substandard — Accrual) — A business credit that is inadequately protected by the current financial net worth and paying capacity of the obligor or of the collateral pledged, if any; management has deteriorated or has become non-existent; quality financial information is not available; a high level of maintenance is required by the Corporation; cash flow can no longer support debt requirements; loan payments are continually and/or severely delinquent; negative net worth; personal guaranty has become insignificant; a credit that has a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The Corporation still expects a full recovery of all contractual principal and interest payments; however, a possibility exists that the Corporation will sustain some loss if deficiencies are not corrected. Risk Grade 8 (Substandard — Nonaccrual ) — A business credit accounted for on a nonaccrual basis that has all the weaknesses inherent in a loan classified as risk grade 7 with the added characteristic that the weaknesses are so pronounced that, on the basis of current financial information, conditions, and values, collection in full is highly questionable; a partial loss is possible and interest is no longer being accrued. This loan meets the definition of an impaired loan. The risk of loss requires analysis to determine whether a valuation allowance needs to be established. Risk Grade 9 (Substandard — Doubtful) — A business credit that has all the weaknesses inherent in a loan classified as risk grade 8 and interest is no longer being accrued, but additional deficiencies make it highly probable that liquidation will not satisfy the majority of the obligation; the primary source of repayment is nonexistent and there is doubt as to the value of the secondary source of repayment; the possibility of loss is likely, but current pending factors could strengthen the credit. This loan meets the definition of an impaired loan. A loan charge-off is recorded when management deems an amount uncollectible; however, the Corporation will establish a valuation allowance for probable losses, if required. The Corporation considers all loans graded 1 through 5 as acceptable credit risks and structures and manages such relationships accordingly. Periodic financial and operating data combined with regular loan officer interactions are deemed adequate to monitor borrower performance. Loans graded 6 and 7 are considered higher-risk credits than loans graded 1 through 5 and the frequency of loan officer contact and receipt of financial data is increased to stay abreast of borrower performance. Loans graded 8 and 9 are considered problematic and require special care. Further, loans graded 6 through 9 are managed and monitored regularly through a number of processes, procedures and committees, including oversight by a loan administration committee comprised of executive and senior management of the Corporation, which include highly structured reporting of financial and operating data, intensive loan officer intervention and strategies to exit, as well as potential management by the Corporation’s special assets group. The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2015 , December 31, 2014 and June 30, 2014 : Commercial Commercial Real Estate Real Estate Construction Land Development Total (In thousands) June 30, 2015 Originated Portfolio: Risk Grades 1-5 $ 1,269,091 $ 1,273,725 $ 94,894 $ 2,470 $ 2,640,180 Risk Grade 6 32,189 34,677 — 433 67,299 Risk Grade 7 41,316 29,737 1,249 878 73,180 Risk Grade 8 17,260 25,283 247 255 43,045 Risk Grade 9 — 4 — — 4 Subtotal 1,359,856 1,363,426 96,390 4,036 2,823,708 Acquired Portfolio: Risk Grades 1-5 347,914 820,400 5,122 5,017 1,178,453 Risk Grade 6 29,412 22,796 — 71 52,279 Risk Grade 7 13,910 30,288 — 119 44,317 Risk Grade 8 3,781 6,603 205 1,352 11,941 Risk Grade 9 — — — — — Subtotal 395,017 880,087 5,327 6,559 1,286,990 Total $ 1,754,873 $ 2,243,513 $ 101,717 $ 10,595 $ 4,110,698 December 31, 2014 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 June 30, 2014 Originated Portfolio: Risk Grades 1-5 $ 1,067,000 $ 1,063,555 $ 85,754 $ 2,514 $ 2,218,823 Risk Grade 6 15,459 30,053 666 965 47,143 Risk Grade 7 37,291 35,946 1,995 627 75,859 Risk Grade 8 18,560 25,347 160 2,184 46,251 Risk Grade 9 213 14 — — 227 Subtotal 1,138,523 1,154,915 88,575 6,290 2,388,303 Acquired Portfolio: Risk Grades 1-5 59,993 132,898 12,593 2,546 208,030 Risk Grade 6 6,769 3,822 — — 10,591 Risk Grade 7 3,197 6,730 — 143 10,070 Risk Grade 8 3,901 — — 1,977 5,878 Risk Grade 9 — — — — — Subtotal 73,860 143,450 12,593 4,666 234,569 Total $ 1,212,383 $ 1,298,365 $ 101,168 $ 10,956 $ 2,622,872 Consumer Loan Portfolio The Corporation evaluates the credit quality of loans in the consumer loan portfolio based on the performing or nonperforming status of the loan. Loans in the consumer loan portfolio that are performing in accordance with original contractual terms and are less than 90 days past due and accruing interest are considered to be in a performing status, while those that are in nonaccrual status, contractually past due 90 days or more as to interest or principal payments or classified as a nonperforming TDR are considered to be in a nonperforming status. Nonaccrual TDRs in the consumer loan portfolio are included with nonaccrual loans, while other TDRs in the consumer loan portfolio are considered in a nonperforming status until they meet the Corporation’s definition of a performing TDR, at which time they are considered in a performing status. The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2015 , December 31, 2014 and June 30, 2014 : Residential Mortgage Consumer Installment Home Equity Total Consumer (In thousands) June 30, 2015 Originated Loans: Performing $ 1,058,696 $ 871,543 $ 584,520 $ 2,514,759 Nonperforming 9,793 393 2,357 12,543 Subtotal 1,068,489 871,936 586,877 2,527,302 Acquired Loans: Performing 238,698 15,966 138,086 392,750 Nonperforming 2,980 5 1,008 3,993 Subtotal 241,678 15,971 139,094 396,743 Total $ 1,310,167 $ 887,907 $ 725,971 $ 2,924,045 December 31, 2014 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 June 30, 2014 Originated Loans: Performing $ 947,768 $ 743,121 $ 529,093 $ 2,219,982 Nonperforming 12,217 536 3,371 16,124 Subtotal 959,985 743,657 532,464 2,236,106 Acquired Loans: Performing 10,343 1,124 28,227 39,694 Nonperforming 69 — 63 132 Subtotal 10,412 1,124 28,290 39,826 Total $ 970,397 $ 744,781 $ 560,754 $ 2,275,932 Nonperforming Loans A summary of nonperforming loans follows: June 30, December 31, June 30, (In thousands) Nonaccrual loans: Commercial $ 17,260 $ 16,418 $ 18,773 Commercial real estate 25,287 24,966 25,361 Real estate construction 247 162 160 Land development 255 225 2,184 Residential mortgage 6,004 6,706 6,325 Consumer installment 393 500 536 Home equity 1,769 1,667 2,296 Total nonaccrual loans 51,215 50,644 55,635 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial 711 170 15 Commercial real estate 56 — 69 Real estate construction — — — Land development — — — Residential mortgage 424 557 376 Consumer installment — — — Home equity 588 1,346 1,075 Total accruing loans contractually past due 90 days or more as to interest or principal payments 1,779 2,073 1,535 Nonperforming TDRs: Commercial loan portfolio 14,547 15,271 11,049 Consumer loan portfolio 3,365 3,196 5,516 Total nonperforming TDRs 17,912 18,467 16,565 Total nonperforming loans $ 70,906 $ 71,184 $ 73,735 The Corporation’s nonaccrual loans at June 30, 2015 , December 31, 2014 and June 30, 2014 included $35.7 million , $37.2 million and $43.7 million , respectively, of nonaccrual TDRs. The Corporation had $2.0 million of residential mortgage loans that were in the process of foreclosure at June 30, 2015 , compared to $2.3 million and $3.6 million at December 31, 2014 and June 30, 2014 , respectively. Impaired Loans The following schedule presents impaired loans by classes of loans at June 30, 2015 , December 31, 2014 and June 30, 2014 : Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) June 30, 2015 Impaired loans with a valuation allowance: Commercial $ 4,044 $ 4,137 $ 718 Commercial real estate 2,789 2,948 603 Residential mortgage 20,970 20,970 260 Subtotal 27,803 28,055 1,581 Impaired loans with no related valuation allowance: Commercial 32,461 38,160 — Commercial real estate 56,052 78,490 — Real estate construction 451 531 — Land development 1,942 3,644 — Residential mortgage 8,984 8,984 — Consumer installment 398 398 — Home equity 2,778 2,778 — Subtotal 103,066 132,985 — Total impaired loans: Commercial 36,505 42,297 718 Commercial real estate 58,841 81,438 603 Real estate construction 451 531 — Land development 1,942 3,644 — Residential mortgage 29,954 29,954 260 Consumer installment 398 398 — Home equity 2,778 2,778 — Total $ 130,869 $ 161,040 $ 1,581 December 31, 2014 Impaired loans with a valuation allowance: Commercial $ 966 $ 1,040 $ 293 Commercial real estate 2,587 2,927 710 Residential mortgage 19,681 19,681 335 Subtotal 23,234 23,648 1,338 Impaired loans with no related valuation allowance: Commercial 38,094 44,557 — Commercial real estate 60,616 82,693 — Real estate construction 162 255 — Land development 1,928 3,484 — Residential mortgage 7,994 7,994 — Consumer installment 518 518 — Home equity 2,121 2,121 — Subtotal 111,433 141,622 — Total impaired loans: Commercial 39,060 45,597 293 Commercial real estate 63,203 85,620 710 Real estate construction 162 255 — Land development 1,928 3,484 — Residential mortgage 27,675 27,675 335 Consumer installment 518 518 — Home equity 2,121 2,121 — Total $ 134,667 $ 165,270 $ 1,338 Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) June 30, 2014 Impaired loans with a valuation allowance: Commercial $ 2,905 $ 3,258 $ 563 Commercial real estate 4,369 5,605 777 Residential mortgage 20,353 20,353 379 Subtotal 27,627 29,216 1,719 Impaired loans with no related valuation allowance: Commercial 39,420 43,463 — Commercial real estate 46,205 58,997 — Real estate construction 160 366 — Land development 4,211 7,506 — Residential mortgage 6,325 6,325 — Consumer installment 536 536 — Home equity 2,296 2,296 — Subtotal 99,153 119,489 — Total impaired loans: Commercial 42,325 46,721 563 Commercial real estate 50,574 64,602 777 Real estate construction 160 366 — Land development 4,211 7,506 — Residential mortgage 26,678 26,678 379 Consumer installment 536 536 — Home equity 2,296 2,296 — Total $ 126,780 $ 148,705 $ 1,719 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 $30.2 million , $30.6 million and $21.9 million at June 30, 2015 , December 31, 2014 and June 30, 2014 , respectively, includes confirmed losses (partial charge-offs) of $15.2 million , $15.4 million and $18.2 million , respectively, and fair value discount adjustments of $15.0 million , $15.2 million and $3.7 million , respectively. Impaired loans included $15.9 million , $19.9 million and $10.4 million at June 30, 2015 , December 31, 2014 and June 30, 2014 , 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 $45.8 million , $45.7 million and $44.1 million at June 30, 2015 , December 31, 2014 and June 30, 2014 , respectively, of performing TDRs. The following schedule presents information related to impaired loans for the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 36,735 $ 263 $ 37,655 $ 552 Commercial real estate 60,393 458 60,317 983 Real estate construction 390 2 515 2 Land development 1,900 34 1,888 61 Residential mortgage 29,432 380 28,392 711 Consumer installment 426 1 463 1 Home equity 2,529 14 2,440 22 Total $ 131,805 $ 1,152 $ 131,670 $ 2,332 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 42,629 $ 347 $ 42,118 $ 680 Commercial real estate 51,260 366 52,290 727 Real estate construction 163 — 165 — Land development 4,312 34 4,478 71 Residential mortgage 26,737 328 26,758 631 Consumer installment 634 — 704 — Home equity 2,221 — 2,194 — Total $ 127,956 $ 1,075 $ 128,707 $ 2,109 The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2015 , December 31, 2014 and June 30, 2014 : 31-60 Days Past Due 61-89 Days Past Due Accruing Loans Past Due 90 Days or More Non-accrual Loans Total Past Due Current Total Loans (In thousands) June 30, 2015 Originated Portfolio: Commercial $ 4,055 $ 2,317 $ 711 $ 17,260 $ 24,343 $ 1,335,513 $ 1,359,856 Commercial real estate 2,754 1,117 56 25,287 29,214 1,334,212 1,363,426 Real estate construction 413 — — 247 660 95,730 96,390 Land development — — — 255 255 3,781 4,036 Residential mortgage 1,536 — 424 6,004 7,964 1,060,525 1,068,489 Consumer installment 2,526 302 — 393 3,221 868,715 871,936 Home equity 2,334 204 588 1,769 4,895 581,982 586,877 Total $ 13,618 $ 3,940 $ 1,779 $ 51,215 $ 70,552 $ 5,280,458 $ 5,351,010 Acquired Portfolio: Commercial $ 690 $ — $ 3,781 $ — $ 4,471 $ 390,546 $ 395,017 Commercial real estate 969 291 6,603 — 7,863 872,224 880,087 Real estate construction — — 205 — 205 5,122 5,327 Land development — — 1,352 — 1,352 5,207 6,559 Residential mortgage 1,077 138 2,980 — 4,195 237,483 241,678 Consumer installment — 56 5 — 61 15,910 15,971 Home equity 1,153 210 1,008 — 2,371 136,723 139,094 Total $ 3,889 $ 695 $ 15,934 $ — $ 20,518 $ 1,663,215 $ 1,683,733 31-60 Days Past Due 61-89 Days Past Due Accruing Loans Past Due 90 Days or More Non-accrual Loans Total Past Due Current Total Loans (In thousands) December 31, 2014 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 June 30, 2014 Originated Portfolio: Commercial $ 4,149 $ 1,901 $ 15 $ 18,773 $ 24,838 $ 1,113,685 $ 1,138,523 Commercial real estate 5,933 233 69 25,361 31,596 1,123,319 1,154,915 Real estate construction — — — 160 160 88,415 88,575 Land development — — — 2,184 2,184 4,106 6,290 Residential mortgage 2,515 — 376 6,325 9,216 950,769 959,985 Consumer installment 2,513 313 — 536 3,362 740,295 743,657 Home equity 2,002 985 1,075 2,296 6,358 526,106 532,464 Total $ 17,112 $ 3,432 $ 1,535 $ 55,635 $ 77,714 $ 4,546,695 $ 4,624,409 Acquired Portfolio: Commercial $ — $ — $ 6,744 $ — $ 6,744 $ 67,116 $ 73,860 Commercial real estate — — 1,594 — 1,594 141,856 143,450 Real estate construction — — — — — 12,593 12,593 Land development — — 1,977 — 1,977 2,689 4,666 Residential mortgage — — 69 — 69 10,343 10,412 Consumer installment 20 — — — 20 1,104 1,124 Home equity 325 49 63 — 437 27,853 28,290 Total $ 345 $ 49 $ 10,447 $ — $ 10,841 $ 263,554 $ 274,395 Loans Modified Under Troubled Debt Restructurings (TDRs) The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2015 , December 31, 2014 and June 30, 2014 : Performing TDRs Non-Performing TDRs Nonaccrual TDRs Total (In thousands) June 30, 2015 Commercial loan portfolio $ 28,203 $ 14,547 $ 32,001 $ 74,751 Consumer loan portfolio 17,605 3,365 3,707 24,677 Total $ 45,808 $ 17,912 $ 35,708 $ 99,428 December 31, 2014 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 June 30, 2014 Commercial loan portfolio $ 29,296 $ 11,049 $ 40,351 $ 80,696 Consumer loan portfolio 14,837 5,516 3,334 23,687 Total $ 44,133 $ 16,565 $ 43,685 $ 104,383 The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment (Dollars in thousands) Commercial loan portfolio: Commercial 13 $ 2,332 $ 2,332 18 $ 4,264 $ 4,264 Commercial real estate 4 527 527 9 3,061 3,061 Land development 1 305 305 1 305 305 Subtotal – commercial loan portfolio 18 3,164 3,164 28 7,630 7,630 Consumer loan portfolio 29 1,633 1,631 39 1,969 1,967 Total 47 $ 4,797 $ 4,795 67 $ 9,599 $ 9,597 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment (Dollars in thousands) Commercial loan portfolio: Commercial 15 $ 3,575 $ 3,575 27 $ 11,931 $ 11,931 Commercial real estate 12 3,134 3,134 21 5,924 5,924 Land development — — — 1 72 72 Subtotal – commercial loan portfolio 27 6,709 6,709 49 17,927 17,927 Consumer loan portfolio 63 1,649 1,648 93 2,636 2,626 Total 90 $ 8,358 $ 8,357 142 $ 20,563 $ 20,553 The pre-modification and post-modification recorded investment represents amounts as of the date of loan modification. The difference between the pre-modification and post-modification recorded investment of residential mortgage TDRs represents impairment recognized by the Corporation through the provision for loan losses computed based on a loan's post-modification present value of expected future cash flows discounted at the loan's original effective interest rate. The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2015 and 2014 , whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Number of Loans Principal Balance at End of Period Number of Loans Principal Balance at End of Period (Dollars in thousands) Commercial loan portfolio: Commercial — $ — — $ — Commercial real estate 1 183 4 942 Subtotal – commercial loan portfolio 1 183 4 942 Consumer loan portfolio — — 1 33 Total 1 $ 183 5 $ 975 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Number of Loans Principal Balance at End of Period Number of Loans Principal Balance at End of Period (Dollars in thousands) Commercial loan portfolio: Commercial 5 $ 771 6 $ 875 Commercial real estate 3 603 5 2,273 Subtotal – commercial loan portfolio 8 1,374 11 3,148 Consumer loan portfolio 3 80 3 80 Total 11 $ 1,454 14 $ 3,228 Allowance for Loan Losses The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and s |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The Corporation has the following types of intangible assets: goodwill, core deposit intangible assets, non-compete intangible assets and mortgage servicing rights (MSRs). Goodwill, core deposit intangible assets, and non-compete intangible assets arose as a result of business combinations or other acquisitions. MSRs arose as a result of selling residential mortgage loans in the secondary market while retaining the right to service these loans and receive servicing income over the life of the loan and from acquisitions of other banks that had MSRs. The majority of the MSRs recorded at June 30, 2015 were acquired as a result of the Northwestern and Monarch acquisitions. Amortization is recorded on the core deposit intangible assets, non-compete intangible assets and MSRs. Goodwill recorded is primarily attributable to the synergies and economies of scale expected from combining the operations of the Corporation and other acquisitions. During the second quarter of 2015, the Corporation acquired Lake Michigan and Monarch, which resulted in the recognition of $100.0 million and $5.4 million in goodwill, respectively. No amount of goodwill recorded in conjunction with these acquisitions is deductible for tax purposes. Goodwill is not amortized but is evaluated at least annually for impairment. The Corporation’s most recent annual goodwill impairment test performed as of October 31, 2014 did not indicate that an impairment of goodwill existed. The Corporation also determined that no triggering events have occurred that indicated impairment from the most recent valuation date through June 30, 2015 and that the Corporation's goodwill was not impaired at June 30, 2015 . The following table shows the net carrying value of the Corporation’s intangible assets: June 30, December 31, June 30, (In thousands) Goodwill $ 285,512 $ 180,128 $ 120,164 Other intangible assets: Core deposit intangible assets $ 28,353 $ 20,863 $ 9,110 Non-compete intangible assets 541 — — Mortgage servicing rights 12,307 12,217 3,344 Total other intangible assets $ 41,201 $ 33,080 $ 12,454 The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions: June 30, December 31, June 30, (In thousands) Gross original amount $ 39,355 $ 31,550 $ 18,659 Accumulated amortization 11,002 10,687 9,549 Carrying amount $ 28,353 $ 20,863 $ 9,110 Amortization expense for the three months ended June 30 $ 952 $ 446 Amortization expense for the six months ended June 30 $ 1,743 $ 891 In conjunction with the acquisition of Lake Michigan on May 31, 2015 and Monarch on April 1, 2015, the Corporation recorded $7.3 million and $1.9 million , respectively, in core deposit intangible assets. These core deposit intangible assets are being amortized over a period of 10 years on an accelerated basis. There were no additions of core deposit intangible assets during the three and six months ended June 30, 2014. The estimated future amortization expense on core deposit intangible assets for periods ending after June 30, 2015 is as follows: 2015 — $2.4 million ; 2016 — $4.3 million ; 2017 — $3.7 million ; 2018 — $3.5 million ; 2019 — $3.3 million ; 2020 and thereafter — $11.2 million . In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation recorded $0.6 million in non-compete intangible assets with an amortization period of one year. There were no additions of non-compete intangible assets during the three and six months ended June 30, 2014. The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others: June 30, December 31, June 30, (In thousands) Net carrying value of MSRs $ 12,307 $ 12,217 $ 3,344 Fair value of MSRs $ 16,602 $ 14,979 $ 6,433 Loans serviced for others that have servicing rights capitalized $ 2,193,067 $ 2,093,140 $ 871,158 The following table shows the activity for capitalized MSRs: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 11,583 $ 3,316 $ 12,217 $ 3,423 Acquired in Monarch acquisition 1,284 — 1,284 — Additions 415 278 815 421 Amortization (1,175 ) (250 ) (2,209 ) (500 ) Change in valuation allowance 200 — 200 — Balance at end of period $ 12,307 $ 3,344 $ 12,307 $ 3,344 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. There was a valuation allowance of $0.2 million as of December 31, 2014 related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. There was no impairment valuation allowance recorded on the Corporation's MSRs at June 30, 2015 and June 30, 2014 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows: June 30, December 31, June 30, (In thousands) Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014 $ (274 ) $ (210 ) $ 800 Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014 (30,830 ) (32,243 ) (18,788 ) Accumulated other comprehensive loss $ (31,104 ) $ (32,453 ) $ (17,988 ) |
Borrowings Borrowings (Notes)
Borrowings Borrowings (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Borrowings [Abstract] | |
Borrowings [Text Block] | Borrowings Short-term Borrowings A summary of the Corporation's short-term borrowings, which generally have an original term to maturity of 30 days or less, follows: June 30, December 31, June 30, (In thousands) Short-term borrowings: Securities sold under agreements to repurchase with customers $ 305,291 $ 304,467 $ 293,422 Short-term FHLB advances 205,000 60,000 — Federal funds purchased 22,000 25,000 12,000 Total short-term borrowings $ 532,291 $ 389,467 $ 305,422 Other Borrowings The Corporation's other borrowings were obtained as a result of the acquisitions of Lake Michigan and Monarch. A summary of the Corporation's other borrowings follows: June 30, December 31, June 30, (In thousands) Other borrowings: Long-term FHLB advances $ 81,469 $ — $ — Securities sold under agreements to repurchase 23,649 — — Line of credit 25,000 — — Subordinated debentures 18,372 — — Total other borrowings $ 148,490 $ — $ — In conjunction with the Lake Michigan and Monarch acquisitions, the Corporation acquired long-term FHLB advances totaling $81.5 million . These advances have a weighted average interest rate of 1.33% at June 30, 2015 . The Corporation's FHLB advances, including both short-term and long-term, require monthly interest payments and are collateralized by eligible loans totaling $1.24 billion as of June 30, 2015 . The scheduled reductions of long-term FHLB advances as of June 30, 2015 were as follows: 2015 - $0.1 million ; 2016 - $7.1 million ; 2017 - $47.1 million ; 2018 - $17.1 million ; 2019; - $0.1 million ; and 2020 - $10.0 million . In conjunction with the Lake Michigan acquisition, the Company acquired securities sold under agreements to repurchase with an unaffiliated financial institution of $23.7 million as of acquisition date. These agreements are secured by available for-sale-securities. The scheduled reductions of securities sold under agreements to repurchase as of June 30, 2015 were as follows: 2015 - $3.2 million ; 2016 - $8.3 million ; and 2017 - $12.1 million . The Corporation entered into a $25 million secured non-revolving line-of-credit in May 2015 with an unaffiliated third-party financial institution. The Corporation drew on the entire amount of the line-of-credit in order to partially fund the cash portion of the purchase price consideration for the Lake Michigan transaction. This line-of-credit bears a variable rate of interest which is based on the one-, two- or three-month LIBOR, as periodically selected by the Corporation, plus a fixed stated rate (effective interest rate of 2.134% at June 30, 2015), and matures in May 2016. The line-of-credit agreement contains certain restrictive covenants. The Corporation was in compliance with all of the covenants at June 30, 2015 . In conjunction with the acquisition of Lake Michigan on May 31, 2015, the Corporation acquired Lake Michigan Financial Capital Trust I (LMFCTI), Lake Michigan Financial Capital Trust II (LMFCTII), and Lake Michigan Financial Capital Trust III (LMFCTIII). LMFCTIII, which held the $10.0 million trust preferred security due to the Corporation, was repaid and settled as of the Lake Michigan acquisition date, and the entity was subsequently dissolved. All of the common securities of the remaining two special purpose trusts are owned by the Corporation. The trusts exist solely to issue capital securities in the form of cumulative preferred securities (trust preferred securities) with a par value of $1,000 per security. The proceeds from the sale of the trust preferred securities were used by each trust to purchase an equivalent amount of subordinated debentures from Lake Michigan. Lake Michigan guaranteed the payment of distributions on the trust preferred securities issued by LMFCTI and LMFCTII. At the acquisition date, the Corporation assumed responsibility of the guarantees. LMFCTI issued $10.3 million in preferred securities in October 2002. This trust preferred subordinated debt pays interest based on a floating rate tied to the three-month LIBOR plus 3.45% (effective interest rate of 3.73% as of June 30, 2015). The maturity date of this trust preferred subordinated debt is October 2032. LMFCTII issued $8.2 million in preferred securities in May 2004. This trust preferred subordinated debt pays interest based on a floating rate tied to the three-month LIBOR plus 2.7% (effective interest rate of 2.98% as of June 30, 2015). The maturity date of this trust preferred subordinated debt is May 2034. The Corporation may, at any time, redeem the LMFCTI or LMFCTII subordinated debentures at par. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital Federal and state banking regulations place certain restrictions on the transfer of assets, in the form of dividends, loans, or advances, from Chemical Bank, The Bank of Holland and The Bank of Northern Michigan to the Corporation. As of June 30, 2015 , substantially all of the assets of Chemical Bank, The Bank of Holland and The Bank of Northern Michigan 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. In addition to the statutory limits, the Corporation considers the overall financial and capital position of Chemical Bank, The Bank of Holland, and The Bank of Northern Michigan prior to making any cash dividend decisions. The Corporation, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan are subject to various regulatory capital requirements administered by federal banking agencies. Under these capital requirements, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan 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 common equity Tier 1, Tier 1 and Total capital to risk-weighted assets. These capital guidelines assign risk weights to on- and off-balance sheet items in arriving at total risk-weighted assets. Minimum capital levels are based upon the perceived risk of various asset categories and certain off-balance sheet instruments. Risk weighted assets of the Corporation totaled $6.99 billion , $5.70 billion and $4.90 billion at June 30, 2015 , December 31, 2014 and June 30, 2014 , respectively. In July 2013, the Federal Reserve Board and FDIC approved final rules implementing the Basel Committee on Banking Supervision's (BCBS) capital guidelines for U.S. banks. Beginning January 1, 2015,the final rules include a new minimum common equity Tier 1 capital to risk-weighted assets (CET) ratio of 4.5%, in addition to raising the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and requiring a minimum leverage ratio of 4.0%. The final rules also establish a new capital conservation buffer of 2.5% of risk-weighted assets, which is phased-in over a four-year period beginning January 1, 2016. At June 30, 2015 , December 31, 2014 and June 30, 2014 , Chemical Bank’s capital ratios exceeded the quantitative capital ratios required for an institution to be considered “well-capitalized.” At June 30, 2015 , The Bank of Northern Michigan's capital ratios exceeded the quantitative capital ratios required for an institution to be considered "well-capitalized." At June 30, 2015 , The Bank of Holland was considered "adequately-capitalized" due to the impact of push down accounting of the purchase accounting adjustments related to the Lake Michigan acquisition. Significant factors that may affect capital adequacy include, but are not limited to, a disproportionate growth in assets versus capital and a change in mix or credit quality of assets. The summary below compares the actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy: Actual Minimum Required for Capital Adequacy Purposes Required to be Well Capitalized Under Prompt Corrective Action Regulations Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio (Dollars in thousands) June 30, 2015 Total Capital to Risk-Weighted Assets: Corporation $ 816,595 11.7 % $ 559,273 8.0 % N/A N/A Chemical Bank 713,999 12.1 471,422 8.0 $ 589,277 10.0 % The Bank of Holland 72,506 9.5 61,028 8.0 76,285 10.0 The Bank of Northern Michigan 32,779 10.1 25,878 8.0 32,347 10.0 Tier 1 Capital to Risk-Weighted Assets: Corporation 741,654 10.6 419,455 6.0 N/A N/A Chemical Bank 640,324 10.9 353,566 6.0 471,422 8.0 The Bank of Holland 72,506 9.5 45,771 6.0 61,028 8.0 The Bank of Northern Michigan 32,779 10.1 19,408 6.0 25,878 8.0 Common Equity Tier 1 Capital to Risk-Weighted Assets: Corporation 723,654 10.4 314,591 4.5 N/A N/A Chemical Bank 640,324 10.9 265,175 4.5 383,030 6.5 The Bank of Holland 72,506 9.5 34,328 4.5 49,585 6.5 The Bank of Northern Michigan 32,779 10.1 14,556 4.5 21,025 6.5 Leverage Ratio: Corporation 741,654 9.4 314,344 4.0 N/A N/A Chemical Bank 640,324 8.5 300,703 4.0 375,878 5.0 The Bank of Holland 72,506 9.4 30,710 4.0 38,388 5.0 The Bank of Northern Michigan 32,779 9.1 14,421 4.0 18,026 5.0 December 31, 2014 Total Capital to Risk-Weighted Assets: Corporation $ 705,130 12.4 % $ 456,302 8.0 % N/A N/A Chemical Bank 654,031 11.5 455,633 8.0 $ 569,541 10.0 % Tier 1 Capital to Risk-Weighted Assets: Corporation 633,779 11.1 228,151 4.0 N/A N/A Chemical Bank 582,783 10.2 227,816 4.0 341,725 6.0 Leverage Ratio: Corporation 633,779 9.3 273,226 4.0 N/A N/A Chemical Bank 582,783 8.5 273,048 4.0 341,310 5.0 June 30, 2014 Total Capital to Risk-Weighted Assets: Corporation $ 748,332 15.3 % $ 391,911 8.0 % N/A N/A Chemical Bank 601,561 12.3 391,305 8.0 $ 489,131 10.0 % Tier 1 Capital to Risk-Weighted Assets: Corporation 686,892 14.0 195,955 4.0 N/A N/A Chemical Bank 540,214 11.0 195,653 4.0 293,479 6.0 Leverage Ratio: Corporation 686,892 11.2 244,757 4.0 N/A N/A Chemical Bank 540,214 8.8 244,604 4.0 305,755 5.0 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value, as defined by GAAP, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for market activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Investment securities — available-for-sale and loans held-for-sale are recorded at fair value on a recurring basis. Additionally, the Corporation may be required to record other assets, such as impaired loans, goodwill, other intangible assets, other real estate and repossessed assets, at fair value on a nonrecurring basis. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. The Corporation determines the fair value of its financial instruments based on a three-level hierarchy established by GAAP. The classification and disclosure of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. The three levels of inputs that may be used to measure fair value within the GAAP hierarchy are as follows: Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 valuations for the Corporation would include U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Valuations are obtained from a third-party pricing service for these investment securities. Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 valuations for the Corporation include government sponsored agency securities, including securities issued by the Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Federal Farm Credit Bank, Student Loan Marketing Corporation and the Small Business Administration, securities issued by certain state and political subdivisions, residential mortgage-backed securities, collateralized mortgage obligations, corporate bonds, preferred stock and certain trust preferred securities. 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, non-compete intangible assets, MSRs and other real estate and repossessed assets. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Corporation’s financial assets and financial liabilities carried at fair value and all financial instruments disclosed at fair value. In general, fair value is based upon quoted market prices, where available. If quoted market prices are not available, fair value is based upon third-party pricing services when available. Fair value may also be based on internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be required to record financial instruments at fair value. Any such valuation adjustments are applied consistently over time. The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Furthermore, the fair value amounts may change significantly after the date of the statement of financial position from the amounts reported in the consolidated financial statements and related notes. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Investment securities — available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are generally measured using independent pricing models or other model-based valuation techniques that include market inputs, such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. The Corporation elected the fair value option for all residential mortgage loans held-for-sale originated on or after July 1, 2012. Accordingly, loans held-for-sale are recorded at fair value on a recurring basis. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations. Disclosure of Recurring Basis Fair Value Measurements For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows: Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) June 30, 2015 Investment securities – available-for-sale: U.S. Treasury securities $ 8,294 $ — $ — $ 8,294 Government sponsored agencies — 227,907 — 227,907 State and political subdivisions — 26,965 — 26,965 Residential mortgage-backed securities — 212,669 — 212,669 Collateralized mortgage obligations — 167,032 — 167,032 Corporate bonds — 39,678 — 39,678 Preferred stock and trust preferred securities — 3,161 — 3,161 Total investment securities – available-for-sale 8,294 677,412 — 685,706 Loans held-for-sale — 7,798 — 7,798 Total assets measured at fair value on a recurring basis $ 8,294 $ 685,210 $ — $ 693,504 December 31, 2014 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 June 30, 2014 Investment securities – available-for-sale: Government sponsored agencies $ — $ 88,708 $ — $ 88,708 State and political subdivisions — 41,608 — 41,608 Residential mortgage-backed securities — 265,368 — 265,368 Collateralized mortgage obligations — 153,283 — 153,283 Corporate bonds — 65,352 — 65,352 Preferred stock — 1,656 — 1,656 Total investment securities – available-for-sale — 615,975 — 615,975 Loans held-for-sale — 6,329 — 6,329 Total assets measured at fair value on a recurring basis $ — $ 622,304 $ — $ 622,304 There were no liabilities recorded at fair value on a recurring basis at June 30, 2015 , December 31, 2014 or June 30, 2014 . Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Corporation does not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allocation of the allowance (valuation allowance) may be established or a portion of the loan is charged off. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including the loan’s observable market price, the fair value of the collateral or the present value of the expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring a valuation allowance represent loans for which the fair value of the expected repayments or collateral exceed the remaining carrying amount of such loans. Impaired loans where a valuation allowance is established or a portion of the loan is charged off based on the fair value of collateral are subject to nonrecurring fair value measurement and require classification in the fair value hierarchy. The Corporation records impaired loans as Level 3 valuations as there is generally no observable market price or independent appraised value, or management determines the fair value of the collateral is further impaired below the appraised value. When management determines the fair value of the collateral is further impaired below appraised value, discount factors ranging between 70% and 80% of the appraised value are used depending on the nature of the collateral and the age of the most recent appraisal. Goodwill is subject to impairment testing on an annual basis. The assessment of goodwill for impairment requires a significant degree of judgment. In the event the assessment indicates that it is more-likely-than-not that the fair value is less than the carrying value, the asset is considered impaired and recorded at fair value. Goodwill that is impaired and subject to nonrecurring fair value measurements is a Level 3 valuation. At June 30, 2015 , December 31, 2014 and June 30, 2014 , 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, non-compete intangible assets, and MSRs. These items are recorded at fair value when initially recorded. Subsequently, core deposit intangible assets and non-compete 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 or non-compete intangible asset impairment is identified, the Corporation classifies impaired core deposit intangible assets and impaired non-compete intangible assets subject to nonrecurring fair value measurements as Level 3 valuations. At June 30, 2015 , December 31, 2014 and June 30, 2014 , there was no impairment identified for core deposit intangible assets or non-compete intangible assets. The fair value of MSRs is initially estimated using a model that calculates the net present value of estimated future cash flows using various assumptions, including prepayment speeds, the discount rate and servicing costs. If the valuation model reflects a value less than the carrying value, MSRs are adjusted to fair value, as determined by the model, through a valuation allowance. The Corporation classifies MSRs subject to nonrecurring fair value measurements as Level 3 valuations. At December 31, 2014 , the Corporation recognized a valuation allowance of $0.2 million related to impairment within certain pools attributable to the Corporation's servicing portfolio that was acquired in the Northwestern transaction. At June 30, 2015 and June 30, 2014 , there was no impairment identified for MSRs and, therefore, no other intangible assets were recorded at fair value on a nonrecurring basis at those dates. The carrying amounts for other real estate (ORE) and repossessed assets (RA) are reported in the consolidated statements of financial position under “Interest receivable and other assets.” ORE and RA include real estate and other types of assets repossessed by the Corporation. ORE and RA are recorded at the lower of cost or fair value upon the transfer of a loan to ORE or RA and, subsequently, ORE and RA continue to be measured and carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the property or management’s estimation of the value of the property. The Corporation records ORE and RA as Level 3 valuations as management generally determines that the fair value of the property is impaired below the appraised value. When management determines the fair value of the property is further impaired below appraised value, discount factors ranging between 70% and 75% of the appraised value are used depending on the nature of the property and the age of the most recent appraisal. Disclosure of Nonrecurring Basis Fair Value Measurements For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows: Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) June 30, 2015 Impaired originated loans $ — $ — $ 24,517 $ 24,517 Other real estate/repossessed assets — — 14,197 14,197 Total $ — $ — $ 38,714 $ 38,714 December 31, 2014 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 June 30, 2014 Impaired originated loans $ — $ — $ 29,789 $ 29,789 Other real estate/repossessed assets — — 10,392 10,392 Total $ — $ — $ 40,181 $ 40,181 There were no liabilities recorded at fair value on a nonrecurring basis at June 30, 2015 , December 31, 2014 and June 30, 2014 . Disclosures about Fair Value of Financial Instruments GAAP requires disclosures about the estimated fair value of the Corporation's financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring or nonrecurring basis. However, the method of estimating fair value for certain financial instruments, such as loans, that are not required to be measured on a recurring or nonrecurring basis, as prescribed by ASC 820, Fair Value Measurements and Disclosures, does not incorporate the exit-price concept of fair value. The Corporation utilized the fair value hierarchy in computing the fair values of its financial instruments. In cases where quoted market prices were not available, the Corporation employed present value methods using unobservable inputs requiring management's judgment to estimate the fair values of its financial instruments, which are considered Level 3 valuations. These Level 3 valuations are affected by the assumptions made and, accordingly, do not necessarily indicate amounts that could be realized in a current market exchange. It is also the Corporation's general practice and intent to hold the majority of its financial instruments until maturity and, therefore, the Corporation does not expect to realize the estimated amounts disclosed. The methodologies for estimating the fair value of financial assets and financial liabilities on a recurring or nonrecurring basis are discussed above. At June 30, 2015 , December 31, 2014 and June 30, 2014 , the estimated fair values of cash and cash equivalents, interest receivable and interest payable approximated their carrying values at those dates. The methodologies for other financial assets and financial liabilities follow. Fair value measurement for investment securities — held-to-maturity is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques that include market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data and industry and economic events. Fair value measurements using Level 2 valuations of investment securities — held-to-maturity include the majority of the Corporation's investment securities issued by state and political subdivisions. Level 3 valuations include certain securities issued by state and political subdivisions and trust preferred investment securities. Fair value measurements of nonmarketable equity securities, which consisted of Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, are based on their redeemable value, which is cost. The market for these securities is restricted to the issuer of the stock and subject to impairment evaluation. It is not practicable to determine the fair value of these securities within the fair value hierarchy due to the restrictions placed on their transferability. Loans held-for-sale are carried at fair value, as the Corporation elected the fair value option on these loans. The fair values of loans held-for-sale are based on the market price for similar loans sold in the secondary market, and therefore, are classified as Level 2 valuations. The fair value of variable interest rate loans that reprice regularly with changes in market interest rates are based on carrying values. The fair values for fixed interest rate loans are estimated using discounted cash flow analyses, using the Corporation’s interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The resulting fair value amounts are adjusted to estimate the impact of changes in the credit quality of borrowers after the loans were originated. The fair value measurements for loans are Level 3 valuations. The fair values of deposit accounts without defined maturities, such as interest- and noninterest-bearing checking, savings and money market accounts, are equal to the amounts payable on demand. Fair value measurements for fixed-interest rate time deposits with defined maturities are based on the discounted value of contractual cash flows, using the Corporation’s interest rates currently being offered for deposits of similar maturities, and are Level 3 valuations. The fair values for variable-interest rate time deposits with defined maturities approximate their carrying amounts. Short-term borrowings consist of securities sold under agreements to repurchase with customers, short-term 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. Other borrowings consist of long-term FHLB advances, securities sold under agreements to repurchase with an unaffiliated financial institution, a non-revolving line-of-credit and subordinated debentures. Fair value measurements for other 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. Long-term FHLB advances and the non-revolving line-of-credit included in other borrowings are Level 2 valuations, while securities sold under agreements to repurchase with an unaffiliated financial institution and subordinated debentures are Level 3 valuations. The Corporation’s unused commitments to extend credit, standby letters of credit and loan commitments have no carrying amount and have been estimated to have no realizable fair value. Historically, a majority of the unused commitments to extend credit have not been drawn upon and, generally, the Corporation does not receive fees in connection with these commitments other than standby letter of credit fees, which are not significant. Fair value measurements have not been made for items that are not defined by GAAP as financial instruments, including such items as the value of the Corporation’s Wealth Management department and the value of the Corporation’s core deposit base. The Corporation believes it is impractical to estimate a representative fair value for these types of assets, even though management believes they add significant value to the Corporation. A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows: Level in Fair Value Measurement Hierarchy June 30, 2015 December 31, 2014 June 30, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Assets: Cash and cash equivalents Level 1 $ 215,034 $ 215,034 $ 183,020 $ 183,020 $ 140,294 $ 140,294 Investment securities: Available-for-sale Level 1 8,294 8,294 8,259 8,259 — — Available-for-sale Level 2 677,412 677,412 740,605 740,605 615,975 615,975 Held-to-maturity Level 2 469,337 466,278 305,913 308,650 297,630 297,186 Held-to-maturity Level 3 500 300 10,500 7,090 10,500 6,775 Nonmarketable equity securities NA 36,142 36,142 27,369 27,369 25,572 25,572 Loans held-for-sale Level 2 7,798 7,798 9,128 9,128 6,329 6,329 Net loans Level 3 6,959,802 6,969,655 5,612,547 5,623,454 4,821,011 4,826,672 Interest receivable Level 2 21,668 21,668 17,492 17,492 15,827 15,827 Liabilities: Deposits without defined maturities Level 2 $ 5,547,764 $ 5,547,764 $ 4,741,024 $ 4,741,024 $ 3,814,013 $ 3,814,013 Time deposits Level 3 1,745,215 1,745,215 1,337,947 1,340,015 1,278,900 1,285,992 Interest payable Level 2 1,557 1,557 755 755 735 735 Short-term borrowings Level 2 532,291 532,291 389,467 389,467 305,422 305,422 Other borrowings Level 2 106,469 106,469 — — — — Other borrowings Level 3 42,021 42,021 — — — — |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share for the Corporation is computed by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share excludes any dilutive effect of common stock equivalents. Diluted earnings per common share for the Corporation is computed by dividing net income by the sum of the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents using the treasury stock method. Average shares of common stock for diluted net income per common share include shares to be issued upon the exercise of stock options granted under the Corporation’s share-based compensation plans, restricted stock units that may be converted to stock, stock to be issued under the deferred stock compensation plan for non-employee directors and stock to be issued under the stock purchase plan for non-employee advisory directors. For any period in which a net loss is recorded, the assumed exercise of stock options, restricted stock units that may be converted to stock and stock to be issued under the deferred stock compensation plan and the stock purchase plan would have an anti-dilutive impact on the net loss per common share and thus are excluded in the diluted earnings per common share calculation. The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator for both basic and diluted earnings per common share, net income $ 19,024 $ 16,236 $ 36,859 $ 30,049 Denominator for basic earnings per common share, weighted average common shares outstanding 35,162 30,068 33,992 29,947 Weighted average common stock equivalents 235 211 235 212 Denominator for diluted earnings per common share 35,397 30,279 34,227 30,159 Basic earnings per common share $ 0.54 $ 0.54 $ 1.08 $ 1.00 Diluted earnings per common share 0.54 0.54 1.08 1.00 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 80,700 and 249,150 for the three months ended June 30, 2015 and 2014 , respectively, and 100,875 and 252,529 for six-month period ended June 30, 2015 and 2014 , respectively. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Corporation maintains share-based compensation plans under which it periodically grants share-based awards for a fixed number of shares to certain officers of the Corporation. The fair value of share-based awards is recognized as compensation expense over the requisite service or performance period. During the three-month periods ended June 30, 2015 and 2014 , share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $0.8 million and $0.6 million , respectively. During the six-month periods ended June 30, 2015 and 2014 , share-based compensation expense related to stock options, restricted stock units and other share-based awards totaled $1.5 million and $1.2 million , respectively. During the six-month period ended June 30, 2015 , the Corporation granted options to purchase 244,165 shares of common stock and 79,202 restricted stock units to certain officers. On April 20, 2015, the shareholders of the Corporation approved the Stock Incentive Plan of 2015, which provides for 1,300,000 shares of the Corporation's common stock to be made available for future equity-based awards and canceled the amount of shares available for future grant under prior share-based compensation plans. At June 30, 2015 , there were 1,295,145 shares of common stock available for future grants under the Stock Incentive Plan of 2015. 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. In conjunction with the acquisition of Lake Michigan, the Corporation assumed the Lake Michigan Financial Corporation Stock Incentive Plan of 2012 and the Lake Michigan Financial Corporation Stock Incentive Plan of 2003 (collectively referred to as the Lake Michigan Stock Option Plans). On the date of acquisition, all outstanding Lake Michigan stock options became immediately vested, if not already vested, and were converted into 132,883 stock options for the Corporation. The converted options continue to have and are subject to the same terms of the Lake Michigan Stock Option Plans. No additional share-based awards may be granted under the Lake Michigan Stock Option Plans. A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2015 is presented below: Non-Vested Stock Options Outstanding Stock Options Outstanding Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Grant Date Fair Value Per Share Number of Options Weighted- Average Exercise Price Per Share Outstanding at December 31, 2014 432,199 $ 26.75 $ 8.30 1,037,311 $ 25.90 Granted 244,165 30.18 8.40 244,165 30.18 Lake Michigan converted options — — — 132,883 12.93 Exercised — — — (216,690 ) 23.99 Vested (150,224 ) 25.57 7.80 — — Forfeited/expired (9,175 ) 28.21 8.52 (9,175 ) 28.21 Outstanding at June 30, 2015 516,965 $ 28.69 $ 8.49 1,188,494 $ 25.66 Exercisable/vested at June 30, 2015 671,529 $ 23.32 The weighted-average remaining contractual terms were 6.6 years for all outstanding stock options and 4.8 years for exercisable stock options at June 30, 2015 . The intrinsic value of all outstanding in-the-money stock options and exercisable in-the-money stock options was $6.9 million and $4.7 million , respectively, at June 30, 2015 . The aggregate intrinsic values of outstanding and exercisable options at June 30, 2015 were calculated based on the closing market price of the Corporation’s common stock on June 30, 2015 of $33.06 per share less the exercise price. Options with intrinsic values less than zero, or “out-of-the-money” options, were not included in the aggregate intrinsic value reported. At June 30, 2015 , unrecognized compensation expense related to stock options totaled $4.0 million and is expected to be recognized over a remaining weighted average period of 3.9 years . The fair value of the stock options granted during the six months ended June 30, 2015 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions. Expected dividend yield 3.50 % Risk-free interest rate 1.78 % Expected stock price volatility 39.1 % Expected life of options – in years 7.0 Weighted average fair value of options granted $ 8.40 Restricted Stock Units In addition to stock options, the Corporation grants restricted stock performance units and restricted stock service-based units (collectively referred to as restricted stock units) to certain officers. The restricted stock performance units vest based on the Corporation achieving certain performance target levels and the grantee completing the requisite service period. The restricted stock performance units are eligible to vest from 0.25 x to 1.5 x the number of units originally granted depending on which, if any, of the performance target levels are met. However, if the minimum performance target levels are not achieved, no shares will become vested or be issued for that respective year’s restricted stock performance units. The restricted stock service-based units vest upon satisfaction of a service condition. Upon achievement of the performance target level and/or satisfaction of a service condition, if applicable, the restricted stock units are converted into shares of the Corporation’s common stock on a one-to-one basis. Compensation expense related to restricted stock units is recognized over the expected requisite performance or service period, as applicable. A summary of the activity for restricted stock units as of and for the six months ended June 30, 2015 is presented below: Number of Units Weighted- Average Grant Date Fair Value Per Unit Outstanding at December 31, 2014 204,319 $ 24.14 Granted 79,202 28.25 Converted into shares of common stock (67,489 ) 22.32 Forfeited/expired (1,427 ) 25.13 Outstanding at June 30, 2015 214,605 $ 26.23 At June 30, 2015 , unrecognized compensation expense related to restricted stock unit awards totaled $3.7 million and is expected to be recognized over a remaining weighted average period of 2.8 years . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Corporation's retirement plans include a qualified pension plan, a nonqualified pension plan, a nonqualified postretirement benefit plan, a 401(k) savings plan, and a multi-employer defined benefit plan. Qualified and Nonqualified Pension Plans and Nonqualified Postretirement Benefit Plans The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Defined Benefit Pension Plans Service cost $ 273 $ 251 $ 545 $ 501 Interest cost 1,332 1,312 2,664 2,624 Expected return on plan assets (2,161 ) (2,079 ) (4,322 ) (4,157 ) Amortization of prior service credit (1 ) (1 ) (2 ) (1 ) Amortization of unrecognized net loss 1,056 569 2,112 1,138 Net periodic benefit cost $ 499 $ 52 $ 997 $ 105 Postretirement Benefit Plan Service cost $ 4 $ 4 $ 8 $ 9 Interest cost 33 36 67 71 Amortization of prior service cost 32 33 65 65 Amortization of unrecognized net gain — (26 ) (1 ) (52 ) Net periodic benefit cost $ 69 $ 47 $ 139 $ 93 The Corporation’s pension plan does not have a contribution requirement in 2015 . The Corporation did no t make a contribution to the pension plan during 2014 . The discount rate used to compute the Corporation's pension plan expense for 2015 is 4.15% . 401(k) Savings Plan 401(k) Savings Plan expense for the Corporation’s match of participants’ base compensation contributions and a 4% of eligible pay contribution to certain employees who are not grandfathered under the pension plan was $1.3 million and $1.0 million for the three months ended June 30, 2015 and 2014 , respectively, and $2.4 million and $1.7 million for the six-month period ended June 30, 2015 and 2014 , respectively. Multi-Employer Defined Benefit Plan In conjunction with the April 1, 2015 acquisition of Monarch, the Corporation acquired a participation in the Pentegra Defined Benefit Plan for Financial Institutions (Pentegra DB Plan), a qualified defined benefit pension plan. Employee benefits for Monarch employees under the Plan were frozen effective April 1, 2004. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code (IRC). The Pentegra Plan is a single plan under IRC Section 413(c) and, as a result, all the plan's assets stand behind all of the plan's liabilities. Accordingly, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. No contributions were made by the Corporation to the Pentegra DB Plan for the three months ended June 30, 2015. |
Financial Guarantees
Financial Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Financial Guarantees | Financial Guarantees In the normal course of business, the Corporation is a party to financial instruments containing credit risk that are not required to be reflected in the consolidated statements of financial position. For the Corporation, these financial instruments are financial and performance standby letters of credit. The Corporation has risk management policies to identify, monitor and limit exposure to credit risk. To mitigate credit risk for these financial guarantees, the Corporation generally determines the need for specific covenant, guarantee and collateral requirements on a case-by-case basis, depending on the nature of the financial instrument and the customer’s creditworthiness. At June 30, 2015 , December 31, 2014 and June 30, 2014 , the Corporation had $45 million , $41 million and $37 million , respectively, of outstanding financial and performance standby letters of credit that expire in five years or less. The majority of these standby letters of credit are collateralized. The Corporation determined that there were no potential losses from standby letters of credit at June 30, 2015 , December 31, 2014 and June 30, 2014 . |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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 three commercial banks, Chemical Bank, The Bank of Holland and The Bank of Northern Michigan. The Bank of Holland and The Bank of Northern Michigan, which were acquired in the May 31, 2015 acquisition of Lake Michigan Financial Corporation (Lake Michigan), are expected to be consolidated with and into Chemical Bank during the fourth quarter of 2015 in conjunction with the conversion of their core data systems to Chemical Bank's. In addition, the Corporation acquired Monarch Community Bank as part of its April 1, 2015 acquisition of Monarch Community Bancorp, Inc. (Monarch). Monarch Community Bank was consolidated with and into Chemical Bank during the second quarter of 2015. Chemical Bank operates within the State of Michigan as a state-chartered commercial bank. Chemical Bank operates through an internal organizational structure of four regional banking units and offers a full range of traditional banking and fiduciary products and services to the residents and business customers in the bank’s geographical market areas. The products and services offered by the regional banking units, through branch banking offices, are generally consistent throughout the Corporation, as is the pricing of those products and services. The marketing of products and services throughout the Corporation’s regional banking units is generally uniform, as many of the markets served by the regional banking units overlap. The distribution of products and services is uniform throughout the Corporation’s regional banking units and is achieved primarily through retail branch banking offices, automated teller machines and electronically accessed banking products. The Corporation’s primary sources of revenue are interest from its loan products and investment securities, service charges and fees from customer deposit accounts and wealth management revenue. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of the Corporation and its subsidiaries have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the interim consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Corporation’s consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments believed necessary to present fairly the financial condition and results of operations of the Corporation for the periods presented. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . |
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 Policy [Policy Text Block] | 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 May 31, 2015, the Corporation acquired all the outstanding stock of Lake Michigan for total consideration of $187.4 million , which included stock consideration of $132.9 million and cash consideration of $54.5 million . The Corporation recorded $100 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $7.9 million of core deposit and other intangible assets in conjunction with the acquisition. On April 1, 2015, the Corporation acquired all the outstanding stock of Monarch in an all-stock transaction valued at $27.2 million . The Corporation recorded $5.4 million of goodwill in conjunction with the acquisition, which represented the purchase price over the fair value of identifiable net assets acquired. Additionally, the Corporation recorded $1.9 million of core deposit intangible assets in conjunction with the acquisition. 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 Bancorp, Inc. (Northwestern), which occurred on October 31, 2014, Lake Michigan, and Monarch, 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. See Note 2 for further information regarding the Corporation's acquisitions. |
Originated Loans | Originated Loans Originated loans include all of the Corporation's portfolio loans, excluding loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern and on April 30, 2010 in the acquisition of O.A.K. Financial Corporation (OAK). Originated loans include loans acquired as part of the Corporation's branch acquisition on December 7, 2012, as these loans were performing and were considered high-quality loans in accordance with the Corporation's credit underwriting standards at that date. Originated loans are stated at their principal amount outstanding, net of unearned income, charge-offs and unamortized deferred fees and costs. Loan interest income is recognized on the accrual basis. Deferred loan fees and costs are amortized over the loan term based on the level-yield method. Net loan commitment fees are deferred and amortized into fee income on a straight-line basis over the commitment period. The past due status of a loan is based on the loan’s contractual terms. A loan is placed in nonaccrual status (accrual of interest is discontinued) when principal or interest is past due 90 days or more (except for a loan that is secured by residential real estate, which is transferred to nonaccrual status at 120 days past due), unless the loan is both well-secured and in the process of collection, or earlier when, in the opinion of management, there is sufficient reason to doubt the collectibility of principal or interest. Interest previously accrued, but not collected, is reversed and charged against interest income at the time the loan is placed in nonaccrual status. Subsequent receipts of interest while a loan is in nonaccrual status are recorded as a reduction of principal. Loans are returned to accrual status when principal and interest payments are brought current, payments have been received consistently for a period of time (generally six months ) and collectibility is no longer in doubt. |
Loans Acquired in a Business Combination | Loans Acquired in a Business Combination Loans acquired in a business combination (acquired loans) consist of loans acquired on May 31, 2015 in the acquisition of Lake Michigan, on April 1, 2015 in the acquisition of Monarch, on October 31, 2014 in the acquisition of Northwestern, and on April 30, 2010 in the acquisition of OAK. Acquired loans were recorded at fair value at the date of acquisition, without a carryover of the associated allowance for loan losses related to these loans, through a fair value discount that was, in part, attributable to deterioration in credit quality. The estimate of expected credit losses was determined based on due diligence performed by executive and senior officers of the Corporation, with assistance from third-party consultants. The fair value discount was recorded as a reduction of the acquired loans’ outstanding principal balances in the consolidated statement of financial position at the acquisition date. The Corporation accounts for acquired loans, which are recorded at fair value at acquisition, in accordance with Accounting Standards Codification (ASC) Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30). ASC 310-30 allows investors to aggregate loans acquired into loan pools that have common risk characteristics and thereby use a composite interest rate and expectation of cash flows expected to be collected for the loan pools. Under the provisions of ASC 310-30, the Corporation aggregated acquired loans into 2 pools in the acquisition of Lake Michigan, 2 pools in the acquisition of Monarch, 4 pools in the acquisition of Northwestern and 14 pools in 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 estimated remaining life of the loan pool on a level-yield basis. The difference between a loan pool's contractually required principal and interest payments at the acquisition date and the cash flows expected to be collected at the acquisition date is referred to as the "nonaccretable difference," which includes an estimate of future credit losses expected to be incurred over the estimated life of the loan pool and interest payments that are not expected to be collected. Decreases to the expected cash flows in each loan pool in subsequent periods will require the Corporation to record a provision for loan losses. Improvements in expected cash flows in each loan pool in subsequent periods will result in reversing a portion of the nonaccretable difference, which is then classified as part of the accretable yield and subsequently recognized into interest income over the estimated remaining life of the loan pool. |
Loans Modified Under Troubled Debt Restructurings | Loans Modified Under Troubled Debt Restructurings Loans modified under troubled debt restructurings (TDRs) involve granting a concession to a borrower who is experiencing financial difficulty. Concessions generally include modifications to original loan terms, including changes to a loan’s payment schedule or interest rate, which generally would not otherwise be considered. The Corporation’s TDRs include performing and nonperforming TDRs, which consist of originated loans that continue to accrue interest at the loan's original interest rate as the Corporation expects to collect the remaining principal and interest on the loan, and nonaccrual TDRs, which include originated loans that are in a nonaccrual status and are no longer accruing interest, as the Corporation does not expect to collect the full amount of principal and interest owed from the borrower on these loans. In accordance with ASC Topic 310-30, acquired loans are excluded from TDRs as these loans are accounted for in pools at net realizable value based on the principal and interest the Corporation expects to collect on such loans. At the time of modification (except for loans on nonaccrual status), a TDR is reported as a nonperforming TDR until a six -month payment history of principal and interest payments, in accordance with the terms of the loan modification, is sustained, at which time the Corporation moves the loan to a performing status (performing TDR). If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. All TDRs are accounted for as impaired loans and are included in the Corporation’s analysis of the allowance for loan losses. A TDR that has been renewed by a borrower who is no longer experiencing financial difficulty and which yields a market rate of interest at the time of a refinancing is no longer reported as a TDR. Loans in the Corporation’s commercial loan portfolio (comprised of commercial, commercial real estate, real estate construction and land development loans) that meet the definition of a TDR generally consist of loans where the Corporation has allowed borrowers to defer scheduled principal payments and make interest-only payments for a specified period of time at the stated interest rate of the original loan agreement or reduced payments due to a moderate extension of the loan’s contractual term. If the Corporation does not expect to collect all principal and interest on the loan, the modified loan is classified as a nonaccrual TDR. If the Corporation does not expect to incur a loss on the loan based on its assessment of the borrowers’ expected cash flows, as the pre- and post-modification effective yields are approximately the same, the loan is classified as a nonperforming TDR until a six-month payment history is sustained, at which time the loan is classified as a performing TDR. Since no loss is expected to be incurred on these loans, no additional provision for loan losses has been recognized related to these loans, and these loans accrue interest at their contractual interest rate. These loans are individually evaluated for impairment and transferred to nonaccrual status if they become 90 days past due as to principal or interest payments or if it is probable that any remaining principal and interest payments due on the loan will not be collected in accordance with the modified terms of the 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 charge-off experience, trends with respect to adversely risk-rated loans in the commercial loan portfolio, trends with respect to past due and nonaccrual loans, changes in economic conditions and trends, changes in the value of underlying collateral and other credit risk factors. This evaluation involves a high degree of uncertainty. In determining the allowance and the related provision for loan losses, the Corporation considers four principal elements: (i) valuation allowances based upon probable losses identified during the review of impaired loans in the commercial loan portfolio, (ii) reserves established for adversely-rated loans in the commercial loan portfolio and nonaccrual residential mortgage, consumer installment and home equity loans based on loan loss experience of other adversely-rated loans, (iii) reserves, by loan classes, on all other loans based principally on a five -year historical loan loss experience, with higher weighting placed on the most recent years, loan loss trends 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. Although the Corporation allocates portions of the allowance to specific loans and loan types, the entire allowance attributable to originated loans is available for any loan losses that occur in the originated portfolio. Loans that are deemed not collectible are charged off and reduce the allowance. The provision for loan losses and recoveries on loans previously charged off increase the allowance. Collection efforts may continue and recoveries may occur after a loan is charged off. Acquired loans are aggregated into pools based upon common risk characteristics. An allowance may be recorded related to an acquired loan pool if it experiences a decrease in expected cash flows, as compared to those projected at the acquisition date. On a quarterly basis, the expected future cash flow of each pool is estimated based on various factors, including changes in property values of collateral dependent loans, default rates, loss severities and prepayment speeds. Decreases in estimates of expected cash flows within a pool generally result in a charge to the provision for loan losses and a corresponding increase in the allowance allocated to acquired loans for the particular pool. Increases in estimates of expected cash flows within a pool generally result in a reduction in the allowance allocated to acquired loans for the particular pool, if applicable, and then an adjustment to the accretable yield for the pool, which will increase amounts recognized in interest income in subsequent periods. Various regulatory agencies, as an integral part of their examination process, periodically review the allowance. Such agencies may require additions to the allowance, based on their judgment, reflecting information available to them at the time of their examinations. |
Fair Value Measurements | Fair Value Measurements Fair value for assets and liabilities measured at fair value on a recurring or nonrecurring basis refers to the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants in the market in which the reporting entity transacts such sales or transfers based on the assumptions market participants would use when pricing an asset or liability. Assumptions are developed based on prioritizing information within a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. The Corporation may choose to measure eligible items at fair value at specified election dates. Unrealized gains and losses on items for which the fair value measurement option has been elected are reported in earnings at each subsequent reporting date. The fair value option (i) may be applied instrument by instrument, with certain exceptions, allowing the Corporation to record identical financial assets and liabilities at fair value or by another measurement basis permitted under GAAP, (ii) is irrevocable (unless a new election date occurs) and (iii) is applied only to entire instruments and not to portions of instruments. At June 30, 2015 , December 31, 2014 and June 30, 2014 , the Corporation had elected the fair value option on all of its residential mortgage loans held-for-sale. The Corporation has not elected the fair value option for any other financial assets or liabilities. |
Share-Based Compensation | Share-Based Compensation The Corporation grants stock options, stock awards, restricted stock performance units and restricted stock service-based units to certain executive and senior management employees. The Corporation accounts for share-based compensation expense using the modified-prospective transition method. Under that method, compensation expense is recognized for stock options based on the estimated grant date fair value as computed using the Black-Scholes option pricing model and the probability of issuance. The Corporation accounts for stock awards based on the closing stock price of the Corporation's common stock on the date of the award. The fair values of both stock options and stock awards are recognized as compensation expense on a straight-line basis over the requisite service period. The Corporation accounts for restricted stock performance units based on the closing stock price of the Corporation's common stock on the date of grant, discounted by the present value of estimated future dividends to be declared over the requisite performance or service period. The fair value of restricted stock performance units is recognized as compensation expense over the expected requisite performance period, or requisite service period for awards with multiple performance and service conditions. The Corporation accounts for restricted stock service-based units based on the closing stock price of the Corporation's common stock on the date of grant, as these awards accrue dividend equivalents equal to the amount of any cash dividends that would have been payable to a shareholder owning the number of shares of the Corporation's common stock represented by the restricted stock service-based units. The fair value of the restricted stock service-based units is recognized as compensation expense over the requisite service period. Cash flows realized from the tax benefits of exercised stock option awards that result from actual tax deductions that are in excess of the recorded tax benefits related to the compensation expense recognized for those options (excess tax benefits) are classified as financing activities on the consolidated statements of cash flows. |
Life Insurance, Corporate or Bank Owned [Text Block] | Bank-Owned Life Insurance The Corporation has life insurance policies on certain key officers of its bank subsidiaries. The majority of the bank-owned life insurance policies of the Corporation were obtained through its acquisition of Lake Michigan. Bank-owned life insurance is recorded at the cash surrender value, net of surrender charges, and is included within other assets on the consolidated statements of financial position and changes in the cash surrender values are recorded as other noninterest income on the consolidated statements of income. |
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 any other states where nexus has been created. These laws are complex and are subject to different interpretations by the taxpayer and the various taxing authorities. In determining the provision for income and other taxes, management must make judgments and estimates about the application of these inherently complex laws, related regulations and case law. In the process of preparing the Corporation’s tax returns, management attempts to make reasonable interpretations of enacted tax laws. These interpretations are subject to challenge by the tax authorities upon audit or to reinterpretation based on management’s ongoing assessment of facts and evolving case law. On a quarterly basis, management assesses the reasonableness of its 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. In conjunction with the acquisition of Monarch, the Corporation has net operating loss carryforwards, which are limited under Internal Revenue Code (IRC) Section 382, included in deferred tax assets. See Note 2 for further information regarding the net operating loss carryforward. Uncertain income tax positions are evaluated to determine whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the tax position. If a tax position is more-likely-than-not to be sustained, a tax benefit is recognized for the amount that is greater than 50% likely to be realized. Reserves for contingent income tax liabilities attributable to unrecognized tax benefits associated with uncertain tax positions are reviewed quarterly for adequacy based upon developments in tax law and the status of audits or examinations. The Corporation had no contingent income tax liabilities recorded at June 30, 2015 , December 31, 2014 or June 30, 2014 . Tax returns open to examination by the Internal Revenue Service (IRS) include those for the calendar years ended December 31, 2014 , 2013 , 2012 and 2011 for the Corporation, Lake Michigan, Monarch and Northwestern. Monarch's tax returns for the calendar years ended 2009-2013 are currently under an IRS examination. |
Investments in Tax Credit Projects [Policy Text Block] | Investments in Qualified Affordable Housing Projects, Federal Historic Projects and New Market Tax Credits The Corporation invests in qualified affordable housing projects, federal historic projects, and new market projects for the purpose of community reinvestment and obtaining tax credits. Return on the Corporation's investment of these projects comes in the form of the tax credits and and tax losses that pass through to the Corporation. The carrying value of the investments are reflected in other assets on the consolidated statements of financial position. The Corporation utilizes the proportional amortization method to account for investments in qualified affordable housing projects and the equity method to account for investments in other tax credit projects. Under the proportional amortization method, the Corporation amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated. The Corporation recognized additional income tax expense attributable to the amortization of investments in qualified affordable housing projects of $0.2 million and $0.3 million during the three and six months ended June 30, 2015 , respectively, and $0.1 million and $0.2 million during the three and six months ended June 30, 2014 , respectively. The Corporation's remaining investment in qualified affordable housing projects accounted for under the proportional amortization method totaled $21.4 million at June 30, 2015 , $4.9 million at December 31, 2014 and $3.1 million at June 30, 2014 . The increase in qualified affordable housing project investments at June 30, 2015, compared to December 31, 2014 and June 30, 2014, was attributable to investments acquired as part of the Lake Michigan transaction. Under the equity method, the Corporation's share of the earnings or losses are included in other operating expenses on the consolidated statements of income. The Corporation's investment in new market projects accounted for under the equity method totaled $3.3 million at June 30, 2015. There were no investments in such projects accounted for under the equity method as of December 31, 2014 or June 30, 2014. The Corporation's unfunded equity contributions relating to investments in qualified affordable housing projects, federal historic tax projects and new market projects is recorded in other liabilities on the consolidated statements of financial position. The Corporation's remaining unfunded equity contributions totaled $9.7 million at June 30, 2015. Management analyzes these investments for potential impairment when events or changes in circumstances indicate that it is more likely than not that the carrying amount of the investment will not be realized. An impairment loss is measured as the amount by which the carrying amount of an investment exceeds its fair value. There were no impairment losses recognized as of June 30, 2015, December 31, 2014 or June 30, 2014. 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 the qualified affordable housing, federal historic and new market projects it has invested in . These projects meet the definition of VIEs. However, 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 consolidated financial statements. |
Shareholders' Equity | Shareholders’ Equity Common Stock Repurchase Programs From time to time, the board of directors of the Corporation approves common stock repurchase programs allowing management to repurchase shares of the Corporation’s common stock in the open market. The repurchased shares are available for later reissuance in connection with potential future stock dividends, the Corporation’s dividend reinvestment plan, employee benefit plans and other general corporate purposes. Under these programs, the timing and actual number of shares subject to repurchase are at the discretion of management and are contingent on a number of factors, including the projected parent company cash flow requirements and the Corporation’s market price per share. In January 2008, the board of directors of the Corporation authorized the repurchase of up to 500,000 shares of the Corporation’s common stock under a stock repurchase program. In November 2011, the board of directors of the Corporation reaffirmed the stock buy-back authorization with the qualification that the shares may only be repurchased if the share price is below the tangible book value per share of the Corporation’s common stock at the time of the repurchase. Since the January 2008 authorization, no shares have been repurchased. At June 30, 2015 , there were 500,000 remaining shares available for repurchase under the Corporation’s stock repurchase program. 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, 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. Preferred Stock On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation which eliminated and replaced the previous class of 200,000 shares of preferred stock, that had been approved by shareholders on April 20, 2009, with a new class of 2,000,000 shares of preferred stock. At June 30, 2015 , no shares of preferred stock were issued and outstanding. Common Stock On April 20, 2015, the shareholders of the Corporation approved an amendment to the restated articles of incorporation to increase the number of authorized shares of common stock from 45,000,000 to 60,000,000 . |
Legal Matters | Legal Matters The Corporation and Chemical Bank are subject to certain legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition or results of operations of the Corporation. |
Reclassifications [Text Block] | Reclassifications Certain amounts appearing in the consolidated financial statements and notes thereto for prior periods have been reclassified to conform with the current presentation. The reclassification had no effect on net income or shareholders’ equity as previously reported. |
Adopted Accounting Pronouncements | Adopted 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 did not 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 Corporation's early adoption of ASU 2014-12 on January 1, 2015 did not 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 did not have a material impact on the Corporation's consolidated financial condition or results of operations. |
Pending Accounting Pronouncements | Pending Accounting Pronouncements There are no recent accounting pronouncements that have been issued by the FASB that would have a material impact on the financial statements of the Corporation. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information [Table Text Block] | Unaudited Pro Forma Combined Results of Operations The following presentation of unaudited pro forma combined results of operations of Chemical, Lake Michigan, Monarch, and Northwestern presents these results as if the acquisitions 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 indicative of future results. In particular, no adjustments have been made to eliminate the amount of Lake Michigan's, Monarch's, or 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 addition, no adjustment has been made for the lost opportunity cost associated with the all-cash purchase of Northwestern. In accordance with Article 11 of SEC Regulation S-X, transaction costs directly attributable to the acquisition have been excluded. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Interest income $ 78,137 $ 74,842 $ 154,261 $ 148,089 Interest expense 5,483 6,748 11,363 13,627 Net interest income 72,654 68,094 142,898 134,462 Provision for loan losses 1,500 1,860 3,000 4,035 Net interest income after provision for loan losses 71,154 66,234 139,898 130,427 Noninterest income 21,153 23,713 43,180 43,487 Operating expenses 62,394 59,915 123,042 121,241 Income before income taxes 29,913 30,032 60,036 52,673 Federal income tax expense 7,525 9,048 16,736 15,807 Net income $ 22,388 $ 20,984 $ 43,300 $ 36,866 Net income per common share: Basic $ 0.59 $ 0.60 $ 1.14 $ 1.05 Diluted 0.58 0.59 1.13 1.04 Weighted average shares outstanding: Basic 38,044 35,251 38,024 35,129 Diluted 38,279 35,462 38,259 35,398 |
Activity for accretable yield includes contractually due interest of acquired loans | Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows: Six Months Ended June 30, 2015 2014 Lake Michigan Monarch North-western OAK Total OAK (In thousands) Balance at beginning of period $ — $ — $ 104,675 $ 33,286 137,961 $ 32,610 Additions attributable to acquisitions 190,246 37,914 — — 228,160 — Additions (reductions)* 1,550 (1,141 ) (2,859 ) 5,215 2,765 2,333 Accretion recognized in interest income (3,486 ) (968 ) (10,058 ) (6,326 ) (20,838 ) (7,594 ) Reclassification from nonaccretable difference — — — — — 10,000 Balance at end of period $ 188,310 $ 35,805 $ 91,758 $ 32,175 $ 348,048 $ 37,349 *Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans. |
Lake Michigan Financial Corp [Member] | |
Business Acquisition [Line Items] | |
Purchase Accounting Fair Value Adjustments [Table Text Block] | 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): Fair value of the Corporation's common shares issued on May 31, 2015 (4,322,101 shares at a market price of $30.29 per share) $ 130,916 Fair value of Lake Michigan options converted to the Corporation's options 2,000 Cash paid to acquire outstanding stock 54,478 Total purchase price $ 187,394 Net assets acquired: Lake Michigan shareholders' equity $ 89,280 Adjustments to reflect fair value of net assets acquired: Loans (22,600 ) Allowance for loan losses 15,888 Premises and equipment (2,333 ) Core deposit intangibles 7,303 Deferred tax assets, net 2,269 Deposits and borrowings, net (3,048 ) Other assets and other liabilities 633 Fair value of adjusted net assets acquired 87,392 Goodwill recognized as a result of the Lake Michigan transaction $ 100,002 |
Schedule of Purchase Price Allocation [Table Text Block] | The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Lake Michigan were as follows (in thousands): Assets Cash and cash equivalents $ 39,301 Investment securities 66,699 Loans 985,542 Premises and equipment 13,673 Deferred tax asset, net 14,888 Goodwill 100,002 Core deposit intangible asset 7,303 Bank-owned life insurance 23,844 Other assets 38,449 Assets acquired, at fair value 1,289,701 Liabilities Deposits 924,697 Short-term borrowings 30,000 Other borrowings 124,723 Other liabilities 22,887 Total liabilities acquired, at fair value 1,102,307 Total purchase price $ 187,394 |
Monarch Community Bancorp [Member] | |
Business Acquisition [Line Items] | |
Purchase Accounting Fair Value Adjustments [Table Text Block] | 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): Fair value of the Corporation's common shares issued on April 1, 2015 (860,575 shares at a market price of $31.36 per share) $ 26,988 Cash paid 203 Total purchase price $ 27,191 Net assets acquired: Monarch shareholders' equity 15,270 Adjustments to reflect fair value of net assets acquired: Loans (7,150 ) Allowance for loan losses 2,128 Deferred tax assets, net: Net operating loss carryforward 7,900 Other 1,748 Premises and equipment (370 ) Core deposit intangibles 1,930 Mortgage servicing rights 315 Other assets and other liabilities 37 Fair value of adjusted net assets acquired 21,808 Goodwill recognized as a result of the Monarch transaction $ 5,383 |
Schedule of Purchase Price Allocation [Table Text Block] | The preliminary acquisition date estimated fair values of the assets acquired and liabilities assumed of Monarch were as follows (in thousands): Assets Cash and cash equivalents $ 32,171 Loans 121,783 Premises and equipment 3,064 Deferred tax assets, net Net operating loss carryforward 7,900 Other 2,314 Interest receivable and other assets 6,972 Goodwill 5,383 Core deposit intangibles 1,930 Mortgage servicing rights 1,284 Assets acquired, at fair value 182,801 Liabilities Deposits 144,311 FHLB advances 8,000 Interest payable and other liabilities 3,299 Total liabilities acquired, at fair value 155,610 Total purchase price $ 27,191 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The following is a summary of the amortized cost and fair value of investment securities available-for-sale and investment securities held-to-maturity at June 30, 2015 , December 31, 2014 and June 30, 2014 : Investment Securities Available-for-Sale Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In thousands) June 30, 2015 U.S. Treasury securities $ 8,270 $ 24 $ — $ 8,294 Government sponsored agencies 227,424 683 200 227,907 State and political subdivisions 26,476 503 14 26,965 Residential mortgage-backed securities 213,621 742 1,694 212,669 Collateralized mortgage obligations 167,768 245 981 167,032 Corporate bonds 39,680 76 78 39,678 Preferred stock and trust preferred securities 2,889 272 — 3,161 Total $ 686,128 $ 2,545 $ 2,967 $ 685,706 December 31, 2014 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 June 30, 2014 Government sponsored agencies $ 88,503 $ 346 $ 141 $ 88,708 State and political subdivisions 40,165 1,443 — 41,608 Residential mortgage-backed securities 265,673 1,117 1,422 265,368 Collateralized mortgage obligations 154,035 376 1,128 153,283 Corporate bonds 64,979 456 83 65,352 Preferred stock 1,389 267 — 1,656 Total $ 614,744 $ 4,005 $ 2,774 $ 615,975 |
Held-to-maturity Securities | Investment Securities Held-to-Maturity Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In thousands) June 30, 2015 State and political subdivisions $ 469,337 $ 4,853 $ 7,912 $ 466,278 Trust preferred securities 500 — 200 300 Total $ 469,837 $ 4,853 $ 8,112 $ 466,578 December 31, 2014 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 June 30, 2014 State and political subdivisions $ 297,630 $ 5,885 $ 6,329 $ 297,186 Trust preferred securities 10,500 — 3,725 6,775 Total $ 308,130 $ 5,885 $ 10,054 $ 303,961 |
Amortized cost and fair value of debt securities by contractual maturity | The following is a summary of the amortized cost and fair value of investment securities at June 30, 2015 , 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. June 30, 2015 Amortized Cost Fair Value (In thousands) Investment Securities Available-for-Sale: Due in one year or less $ 198,939 $ 198,680 Due after one year through five years 411,399 411,247 Due after five years through ten years 68,583 68,295 Due after ten years 5,818 5,823 Preferred stock 1,389 1,661 Total $ 686,128 $ 685,706 Investment Securities Held-to-Maturity: Due in one year or less $ 55,922 $ 56,043 Due after one year through five years 209,886 209,768 Due after five years through ten years 127,398 125,775 Due after ten years 76,631 74,992 Total $ 469,837 $ 466,578 |
Summary of continuous unrealized loss position of securities | The following schedule summarizes information for both available-for-sale and held-to-maturity investment securities with gross unrealized losses at June 30, 2015 , December 31, 2014 and June 30, 2014 , 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 Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In thousands) June 30, 2015 Government sponsored agencies $ 24,789 $ 163 $ 14,715 $ 37 $ 39,504 $ 200 State and political subdivisions 258,503 5,433 63,584 2,493 322,087 7,926 Residential mortgage-backed securities 187,858 1,592 3,643 102 191,501 1,694 Collateralized mortgage obligations 49,845 155 48,881 826 98,726 981 Corporate bonds 9,670 49 14,971 29 24,641 78 Trust preferred securities — — 300 200 300 200 Total $ 530,665 $ 7,392 $ 146,094 $ 3,687 $ 676,759 $ 11,079 December 31, 2014 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 Total $ 317,885 $ 3,998 $ 302,630 $ 7,295 $ 620,515 $ 11,293 June 30, 2014 Government sponsored agencies $ 2,377 $ 2 $ 44,786 $ 139 $ 47,163 $ 141 State and political subdivisions 92,279 4,047 71,421 2,282 163,700 6,329 Residential mortgage-backed securities 10,144 60 197,042 1,362 207,186 1,422 Collateralized mortgage obligations 47,142 68 35,722 1,060 82,864 1,128 Corporate bonds 4,996 5 14,922 78 19,918 83 Trust preferred securities — — 6,775 3,725 6,775 3,725 Total $ 156,938 $ 4,182 $ 370,668 $ 8,646 $ 527,606 $ 12,828 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Summary of loans under portfolio | A summary of loans follows: June 30, December 31, June 30, (In thousands) Commercial loan portfolio: Commercial $ 1,754,873 $ 1,354,881 $ 1,212,383 Commercial real estate 2,243,513 1,557,648 1,298,365 Real estate construction 101,717 152,745 101,168 Land development 10,595 18,750 10,956 Subtotal 4,110,698 3,084,024 2,622,872 Consumer loan portfolio: Residential mortgage 1,310,167 1,110,390 970,397 Consumer installment 887,907 829,570 744,781 Home equity 725,971 664,246 560,754 Subtotal 2,924,045 2,604,206 2,275,932 Total loans $ 7,034,743 $ 5,688,230 $ 4,898,804 |
Recorded investment of loans in the commercial loan portfolio by risk rating categories | The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2015 , December 31, 2014 and June 30, 2014 : Commercial Commercial Real Estate Real Estate Construction Land Development Total (In thousands) June 30, 2015 Originated Portfolio: Risk Grades 1-5 $ 1,269,091 $ 1,273,725 $ 94,894 $ 2,470 $ 2,640,180 Risk Grade 6 32,189 34,677 — 433 67,299 Risk Grade 7 41,316 29,737 1,249 878 73,180 Risk Grade 8 17,260 25,283 247 255 43,045 Risk Grade 9 — 4 — — 4 Subtotal 1,359,856 1,363,426 96,390 4,036 2,823,708 Acquired Portfolio: Risk Grades 1-5 347,914 820,400 5,122 5,017 1,178,453 Risk Grade 6 29,412 22,796 — 71 52,279 Risk Grade 7 13,910 30,288 — 119 44,317 Risk Grade 8 3,781 6,603 205 1,352 11,941 Risk Grade 9 — — — — — Subtotal 395,017 880,087 5,327 6,559 1,286,990 Total $ 1,754,873 $ 2,243,513 $ 101,717 $ 10,595 $ 4,110,698 December 31, 2014 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 June 30, 2014 Originated Portfolio: Risk Grades 1-5 $ 1,067,000 $ 1,063,555 $ 85,754 $ 2,514 $ 2,218,823 Risk Grade 6 15,459 30,053 666 965 47,143 Risk Grade 7 37,291 35,946 1,995 627 75,859 Risk Grade 8 18,560 25,347 160 2,184 46,251 Risk Grade 9 213 14 — — 227 Subtotal 1,138,523 1,154,915 88,575 6,290 2,388,303 Acquired Portfolio: Risk Grades 1-5 59,993 132,898 12,593 2,546 208,030 Risk Grade 6 6,769 3,822 — — 10,591 Risk Grade 7 3,197 6,730 — 143 10,070 Risk Grade 8 3,901 — — 1,977 5,878 Risk Grade 9 — — — — — Subtotal 73,860 143,450 12,593 4,666 234,569 Total $ 1,212,383 $ 1,298,365 $ 101,168 $ 10,956 $ 2,622,872 |
Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status | The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2015 , December 31, 2014 and June 30, 2014 : Residential Mortgage Consumer Installment Home Equity Total Consumer (In thousands) June 30, 2015 Originated Loans: Performing $ 1,058,696 $ 871,543 $ 584,520 $ 2,514,759 Nonperforming 9,793 393 2,357 12,543 Subtotal 1,068,489 871,936 586,877 2,527,302 Acquired Loans: Performing 238,698 15,966 138,086 392,750 Nonperforming 2,980 5 1,008 3,993 Subtotal 241,678 15,971 139,094 396,743 Total $ 1,310,167 $ 887,907 $ 725,971 $ 2,924,045 December 31, 2014 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 June 30, 2014 Originated Loans: Performing $ 947,768 $ 743,121 $ 529,093 $ 2,219,982 Nonperforming 12,217 536 3,371 16,124 Subtotal 959,985 743,657 532,464 2,236,106 Acquired Loans: Performing 10,343 1,124 28,227 39,694 Nonperforming 69 — 63 132 Subtotal 10,412 1,124 28,290 39,826 Total $ 970,397 $ 744,781 $ 560,754 $ 2,275,932 |
Summary of nonperforming loans | A summary of nonperforming loans follows: June 30, December 31, June 30, (In thousands) Nonaccrual loans: Commercial $ 17,260 $ 16,418 $ 18,773 Commercial real estate 25,287 24,966 25,361 Real estate construction 247 162 160 Land development 255 225 2,184 Residential mortgage 6,004 6,706 6,325 Consumer installment 393 500 536 Home equity 1,769 1,667 2,296 Total nonaccrual loans 51,215 50,644 55,635 Accruing loans contractually past due 90 days or more as to interest or principal payments: Commercial 711 170 15 Commercial real estate 56 — 69 Real estate construction — — — Land development — — — Residential mortgage 424 557 376 Consumer installment — — — Home equity 588 1,346 1,075 Total accruing loans contractually past due 90 days or more as to interest or principal payments 1,779 2,073 1,535 Nonperforming TDRs: Commercial loan portfolio 14,547 15,271 11,049 Consumer loan portfolio 3,365 3,196 5,516 Total nonperforming TDRs 17,912 18,467 16,565 Total nonperforming loans $ 70,906 $ 71,184 $ 73,735 |
Schedule of Impaired loans by classes | The following schedule presents impaired loans by classes of loans at June 30, 2015 , December 31, 2014 and June 30, 2014 : Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) June 30, 2015 Impaired loans with a valuation allowance: Commercial $ 4,044 $ 4,137 $ 718 Commercial real estate 2,789 2,948 603 Residential mortgage 20,970 20,970 260 Subtotal 27,803 28,055 1,581 Impaired loans with no related valuation allowance: Commercial 32,461 38,160 — Commercial real estate 56,052 78,490 — Real estate construction 451 531 — Land development 1,942 3,644 — Residential mortgage 8,984 8,984 — Consumer installment 398 398 — Home equity 2,778 2,778 — Subtotal 103,066 132,985 — Total impaired loans: Commercial 36,505 42,297 718 Commercial real estate 58,841 81,438 603 Real estate construction 451 531 — Land development 1,942 3,644 — Residential mortgage 29,954 29,954 260 Consumer installment 398 398 — Home equity 2,778 2,778 — Total $ 130,869 $ 161,040 $ 1,581 December 31, 2014 Impaired loans with a valuation allowance: Commercial $ 966 $ 1,040 $ 293 Commercial real estate 2,587 2,927 710 Residential mortgage 19,681 19,681 335 Subtotal 23,234 23,648 1,338 Impaired loans with no related valuation allowance: Commercial 38,094 44,557 — Commercial real estate 60,616 82,693 — Real estate construction 162 255 — Land development 1,928 3,484 — Residential mortgage 7,994 7,994 — Consumer installment 518 518 — Home equity 2,121 2,121 — Subtotal 111,433 141,622 — Total impaired loans: Commercial 39,060 45,597 293 Commercial real estate 63,203 85,620 710 Real estate construction 162 255 — Land development 1,928 3,484 — Residential mortgage 27,675 27,675 335 Consumer installment 518 518 — Home equity 2,121 2,121 — Total $ 134,667 $ 165,270 $ 1,338 Recorded Investment Unpaid Principal Balance Related Valuation Allowance (In thousands) June 30, 2014 Impaired loans with a valuation allowance: Commercial $ 2,905 $ 3,258 $ 563 Commercial real estate 4,369 5,605 777 Residential mortgage 20,353 20,353 379 Subtotal 27,627 29,216 1,719 Impaired loans with no related valuation allowance: Commercial 39,420 43,463 — Commercial real estate 46,205 58,997 — Real estate construction 160 366 — Land development 4,211 7,506 — Residential mortgage 6,325 6,325 — Consumer installment 536 536 — Home equity 2,296 2,296 — Subtotal 99,153 119,489 — Total impaired loans: Commercial 42,325 46,721 563 Commercial real estate 50,574 64,602 777 Real estate construction 160 366 — Land development 4,211 7,506 — Residential mortgage 26,678 26,678 379 Consumer installment 536 536 — Home equity 2,296 2,296 — Total $ 126,780 $ 148,705 $ 1,719 |
Schedule presents information related to impaired loans | The following schedule presents information related to impaired loans for the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 36,735 $ 263 $ 37,655 $ 552 Commercial real estate 60,393 458 60,317 983 Real estate construction 390 2 515 2 Land development 1,900 34 1,888 61 Residential mortgage 29,432 380 28,392 711 Consumer installment 426 1 463 1 Home equity 2,529 14 2,440 22 Total $ 131,805 $ 1,152 $ 131,670 $ 2,332 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Average Recorded Investment Interest Income Recognized While on Impaired Status Average Recorded Investment Interest Income Recognized While on Impaired Status (In thousands) Commercial $ 42,629 $ 347 $ 42,118 $ 680 Commercial real estate 51,260 366 52,290 727 Real estate construction 163 — 165 — Land development 4,312 34 4,478 71 Residential mortgage 26,737 328 26,758 631 Consumer installment 634 — 704 — Home equity 2,221 — 2,194 — Total $ 127,956 $ 1,075 $ 128,707 $ 2,109 |
Schedule representing the aging status of the recorded investment in loans by classes | The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2015 , December 31, 2014 and June 30, 2014 : 31-60 Days Past Due 61-89 Days Past Due Accruing Loans Past Due 90 Days or More Non-accrual Loans Total Past Due Current Total Loans (In thousands) June 30, 2015 Originated Portfolio: Commercial $ 4,055 $ 2,317 $ 711 $ 17,260 $ 24,343 $ 1,335,513 $ 1,359,856 Commercial real estate 2,754 1,117 56 25,287 29,214 1,334,212 1,363,426 Real estate construction 413 — — 247 660 95,730 96,390 Land development — — — 255 255 3,781 4,036 Residential mortgage 1,536 — 424 6,004 7,964 1,060,525 1,068,489 Consumer installment 2,526 302 — 393 3,221 868,715 871,936 Home equity 2,334 204 588 1,769 4,895 581,982 586,877 Total $ 13,618 $ 3,940 $ 1,779 $ 51,215 $ 70,552 $ 5,280,458 $ 5,351,010 Acquired Portfolio: Commercial $ 690 $ — $ 3,781 $ — $ 4,471 $ 390,546 $ 395,017 Commercial real estate 969 291 6,603 — 7,863 872,224 880,087 Real estate construction — — 205 — 205 5,122 5,327 Land development — — 1,352 — 1,352 5,207 6,559 Residential mortgage 1,077 138 2,980 — 4,195 237,483 241,678 Consumer installment — 56 5 — 61 15,910 15,971 Home equity 1,153 210 1,008 — 2,371 136,723 139,094 Total $ 3,889 $ 695 $ 15,934 $ — $ 20,518 $ 1,663,215 $ 1,683,733 31-60 Days Past Due 61-89 Days Past Due Accruing Loans Past Due 90 Days or More Non-accrual Loans Total Past Due Current Total Loans (In thousands) December 31, 2014 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 June 30, 2014 Originated Portfolio: Commercial $ 4,149 $ 1,901 $ 15 $ 18,773 $ 24,838 $ 1,113,685 $ 1,138,523 Commercial real estate 5,933 233 69 25,361 31,596 1,123,319 1,154,915 Real estate construction — — — 160 160 88,415 88,575 Land development — — — 2,184 2,184 4,106 6,290 Residential mortgage 2,515 — 376 6,325 9,216 950,769 959,985 Consumer installment 2,513 313 — 536 3,362 740,295 743,657 Home equity 2,002 985 1,075 2,296 6,358 526,106 532,464 Total $ 17,112 $ 3,432 $ 1,535 $ 55,635 $ 77,714 $ 4,546,695 $ 4,624,409 Acquired Portfolio: Commercial $ — $ — $ 6,744 $ — $ 6,744 $ 67,116 $ 73,860 Commercial real estate — — 1,594 — 1,594 141,856 143,450 Real estate construction — — — — — 12,593 12,593 Land development — — 1,977 — 1,977 2,689 4,666 Residential mortgage — — 69 — 69 10,343 10,412 Consumer installment 20 — — — 20 1,104 1,124 Home equity 325 49 63 — 437 27,853 28,290 Total $ 345 $ 49 $ 10,447 $ — $ 10,841 $ 263,554 $ 274,395 |
Schedule of Corporation's TDRs | The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2015 , December 31, 2014 and June 30, 2014 : Performing TDRs Non-Performing TDRs Nonaccrual TDRs Total (In thousands) June 30, 2015 Commercial loan portfolio $ 28,203 $ 14,547 $ 32,001 $ 74,751 Consumer loan portfolio 17,605 3,365 3,707 24,677 Total $ 45,808 $ 17,912 $ 35,708 $ 99,428 December 31, 2014 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 June 30, 2014 Commercial loan portfolio $ 29,296 $ 11,049 $ 40,351 $ 80,696 Consumer loan portfolio 14,837 5,516 3,334 23,687 Total $ 44,133 $ 16,565 $ 43,685 $ 104,383 |
Schedule providing information on TDRs | The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2015 and 2014 : Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment (Dollars in thousands) Commercial loan portfolio: Commercial 13 $ 2,332 $ 2,332 18 $ 4,264 $ 4,264 Commercial real estate 4 527 527 9 3,061 3,061 Land development 1 305 305 1 305 305 Subtotal – commercial loan portfolio 18 3,164 3,164 28 7,630 7,630 Consumer loan portfolio 29 1,633 1,631 39 1,969 1,967 Total 47 $ 4,797 $ 4,795 67 $ 9,599 $ 9,597 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment Number of Loans Pre- Modification Recorded Investment Post- Modification Recorded Investment (Dollars in thousands) Commercial loan portfolio: Commercial 15 $ 3,575 $ 3,575 27 $ 11,931 $ 11,931 Commercial real estate 12 3,134 3,134 21 5,924 5,924 Land development — — — 1 72 72 Subtotal – commercial loan portfolio 27 6,709 6,709 49 17,927 17,927 Consumer loan portfolio 63 1,649 1,648 93 2,636 2,626 Total 90 $ 8,358 $ 8,357 142 $ 20,563 $ 20,553 |
Troubled debt restructurings on financing receivables with defaults payment | The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2015 and 2014 , whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Number of Loans Principal Balance at End of Period Number of Loans Principal Balance at End of Period (Dollars in thousands) Commercial loan portfolio: Commercial — $ — — $ — Commercial real estate 1 183 4 942 Subtotal – commercial loan portfolio 1 183 4 942 Consumer loan portfolio — — 1 33 Total 1 $ 183 5 $ 975 Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Number of Loans Principal Balance at End of Period Number of Loans Principal Balance at End of Period (Dollars in thousands) Commercial loan portfolio: Commercial 5 $ 771 6 $ 875 Commercial real estate 3 603 5 2,273 Subtotal – commercial loan portfolio 8 1,374 11 3,148 Consumer loan portfolio 3 80 3 80 Total 11 $ 1,454 14 $ 3,228 |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2015 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2015 by impairment evaluation method. Commercial Loan Portfolio Consumer Loan Portfolio Unallocated Total (In thousands) Changes in allowance for loan losses for the three months ended June 30, 2015: Beginning balance $ 46,819 $ 24,579 $ 3,858 $ 75,256 Provision for loan losses (626 ) (109 ) 2,235 1,500 Charge-offs (915 ) (1,809 ) — (2,724 ) Recoveries 249 660 — 909 Ending balance $ 45,527 $ 23,321 $ 6,093 $ 74,941 Changes in allowance for loan losses for the six months ended June 30, 2015: Beginning balance $ 44,156 $ 28,803 $ 2,724 $ 75,683 Provision for loan losses 2,967 (3,336 ) 3,369 3,000 Charge-offs (2,419 ) (3,448 ) — (5,867 ) Recoveries 823 1,302 — 2,125 Ending balance $ 45,527 $ 23,321 $ 6,093 $ 74,941 Allowance for loan losses balance at June 30, 2015 attributable to: Loans individually evaluated for impairment $ 1,321 $ 260 $ — $ 1,581 Loans collectively evaluated for impairment 44,206 23,061 6,093 73,360 Loans acquired with deteriorated credit quality — — — — Total $ 45,527 $ 23,321 $ 6,093 $ 74,941 Recorded investment (loan balance) at June 30, 2015: Loans individually evaluated for impairment $ 85,799 $ 20,970 $ — $ 106,769 Loans collectively evaluated for impairment 2,737,909 2,506,332 — 5,244,241 Loans acquired with deteriorated credit quality 1,286,990 396,743 — 1,683,733 Total $ 4,110,698 $ 2,924,045 $ — $ 7,034,743 The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method. Commercial Loan Portfolio Consumer Loan Portfolio Unallocated Total (In thousands) 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 schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method. Commercial Loan Portfolio Consumer Loan Portfolio Unallocated Total (In thousands) Changes in allowance for loan losses for the three months ended June 30, 2014: Beginning balance $ 45,010 $ 29,233 $ 4,230 $ 78,473 Provision for loan losses 439 1,287 (226 ) 1,500 Charge-offs (1,814 ) (1,561 ) — (3,375 ) Recoveries 589 606 — 1,195 Ending balance $ 44,224 $ 29,565 $ 4,004 $ 77,793 Changes in allowance for loan losses for the six months ended June 30, 2014: Beginning balance $ 44,482 $ 30,145 $ 4,445 $ 79,072 Provision for loan losses 1,399 2,142 (441 ) 3,100 Charge-offs (3,023 ) (3,824 ) — (6,847 ) Recoveries 1,366 1,102 — 2,468 Ending balance $ 44,224 $ 29,565 $ 4,004 $ 77,793 Allowance for loan losses balance at June 30, 2014 attributable to: Loans individually evaluated for impairment $ 1,340 $ 379 $ — $ 1,719 Loans collectively evaluated for impairment 42,884 28,686 4,004 75,574 Loans acquired with deteriorated credit quality — 500 — 500 Total $ 44,224 $ 29,565 $ 4,004 $ 77,793 Recorded investment (loan balance) at June 30, 2014: Loans individually evaluated for impairment $ 86,823 $ 20,353 $ — $ 107,176 Loans collectively evaluated for impairment 2,301,480 2,215,753 — 4,517,233 Loans acquired with deteriorated credit quality 234,569 39,826 — 274,395 Total $ 2,622,872 $ 2,275,932 $ — $ 4,898,804 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Net carrying value of intangible assets | The following table shows the net carrying value of the Corporation’s intangible assets: June 30, December 31, June 30, (In thousands) Goodwill $ 285,512 $ 180,128 $ 120,164 Other intangible assets: Core deposit intangible assets $ 28,353 $ 20,863 $ 9,110 Non-compete intangible assets 541 — — Mortgage servicing rights 12,307 12,217 3,344 Total other intangible assets $ 41,201 $ 33,080 $ 12,454 |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | The following table sets forth the carrying amount, accumulated amortization and amortization expense of core deposit intangible assets that are amortizable and arose from business combinations or other acquisitions: June 30, December 31, June 30, (In thousands) Gross original amount $ 39,355 $ 31,550 $ 18,659 Accumulated amortization 11,002 10,687 9,549 Carrying amount $ 28,353 $ 20,863 $ 9,110 Amortization expense for the three months ended June 30 $ 952 $ 446 Amortization expense for the six months ended June 30 $ 1,743 $ 891 |
Net carrying value, fair value of MSRs and loans Corporation servicing for others | The following shows the net carrying value and fair value of MSRs and the total loans that the Corporation is servicing for others: June 30, December 31, June 30, (In thousands) Net carrying value of MSRs $ 12,307 $ 12,217 $ 3,344 Fair value of MSRs $ 16,602 $ 14,979 $ 6,433 Loans serviced for others that have servicing rights capitalized $ 2,193,067 $ 2,093,140 $ 871,158 |
Activity for capitalized MSRs | The following table shows the activity for capitalized MSRs: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 11,583 $ 3,316 $ 12,217 $ 3,423 Acquired in Monarch acquisition 1,284 — 1,284 — Additions 415 278 815 421 Amortization (1,175 ) (250 ) (2,209 ) (500 ) Change in valuation allowance 200 — 200 — Balance at end of period $ 12,307 $ 3,344 $ 12,307 $ 3,344 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Components of accumulated other comprehensive loss, net of related tax benefit/expense | The components of accumulated other comprehensive loss, net of related tax benefit/expense, were as follows: June 30, December 31, June 30, (In thousands) Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014 $ (274 ) $ (210 ) $ 800 Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014 (30,830 ) (32,243 ) (18,788 ) Accumulated other comprehensive loss $ (31,104 ) $ (32,453 ) $ (17,988 ) |
Borrowings Borrowings (Tables)
Borrowings Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Borrowings [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | A summary of the Corporation's short-term borrowings, which generally have an original term to maturity of 30 days or less, follows: June 30, December 31, June 30, (In thousands) Short-term borrowings: Securities sold under agreements to repurchase with customers $ 305,291 $ 304,467 $ 293,422 Short-term FHLB advances 205,000 60,000 — Federal funds purchased 22,000 25,000 12,000 Total short-term borrowings $ 532,291 $ 389,467 $ 305,422 |
Schedule of Other Borrowings [Table Text Block] | The Corporation's other borrowings were obtained as a result of the acquisitions of Lake Michigan and Monarch. A summary of the Corporation's other borrowings follows: June 30, December 31, June 30, (In thousands) Other borrowings: Long-term FHLB advances $ 81,469 $ — $ — Securities sold under agreements to repurchase 23,649 — — Line of credit 25,000 — — Subordinated debentures 18,372 — — Total other borrowings $ 148,490 $ — $ — |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 actual capital amounts and ratios with the quantitative measures established by regulation to ensure capital adequacy: Actual Minimum Required for Capital Adequacy Purposes Required to be Well Capitalized Under Prompt Corrective Action Regulations Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio (Dollars in thousands) June 30, 2015 Total Capital to Risk-Weighted Assets: Corporation $ 816,595 11.7 % $ 559,273 8.0 % N/A N/A Chemical Bank 713,999 12.1 471,422 8.0 $ 589,277 10.0 % The Bank of Holland 72,506 9.5 61,028 8.0 76,285 10.0 The Bank of Northern Michigan 32,779 10.1 25,878 8.0 32,347 10.0 Tier 1 Capital to Risk-Weighted Assets: Corporation 741,654 10.6 419,455 6.0 N/A N/A Chemical Bank 640,324 10.9 353,566 6.0 471,422 8.0 The Bank of Holland 72,506 9.5 45,771 6.0 61,028 8.0 The Bank of Northern Michigan 32,779 10.1 19,408 6.0 25,878 8.0 Common Equity Tier 1 Capital to Risk-Weighted Assets: Corporation 723,654 10.4 314,591 4.5 N/A N/A Chemical Bank 640,324 10.9 265,175 4.5 383,030 6.5 The Bank of Holland 72,506 9.5 34,328 4.5 49,585 6.5 The Bank of Northern Michigan 32,779 10.1 14,556 4.5 21,025 6.5 Leverage Ratio: Corporation 741,654 9.4 314,344 4.0 N/A N/A Chemical Bank 640,324 8.5 300,703 4.0 375,878 5.0 The Bank of Holland 72,506 9.4 30,710 4.0 38,388 5.0 The Bank of Northern Michigan 32,779 9.1 14,421 4.0 18,026 5.0 December 31, 2014 Total Capital to Risk-Weighted Assets: Corporation $ 705,130 12.4 % $ 456,302 8.0 % N/A N/A Chemical Bank 654,031 11.5 455,633 8.0 $ 569,541 10.0 % Tier 1 Capital to Risk-Weighted Assets: Corporation 633,779 11.1 228,151 4.0 N/A N/A Chemical Bank 582,783 10.2 227,816 4.0 341,725 6.0 Leverage Ratio: Corporation 633,779 9.3 273,226 4.0 N/A N/A Chemical Bank 582,783 8.5 273,048 4.0 341,310 5.0 June 30, 2014 Total Capital to Risk-Weighted Assets: Corporation $ 748,332 15.3 % $ 391,911 8.0 % N/A N/A Chemical Bank 601,561 12.3 391,305 8.0 $ 489,131 10.0 % Tier 1 Capital to Risk-Weighted Assets: Corporation 686,892 14.0 195,955 4.0 N/A N/A Chemical Bank 540,214 11.0 195,653 4.0 293,479 6.0 Leverage Ratio: Corporation 686,892 11.2 244,757 4.0 N/A N/A Chemical Bank 540,214 8.8 244,604 4.0 305,755 5.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of assets measured at fair value on a recurring basis | For assets measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets were as follows: Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) June 30, 2015 Investment securities – available-for-sale: U.S. Treasury securities $ 8,294 $ — $ — $ 8,294 Government sponsored agencies — 227,907 — 227,907 State and political subdivisions — 26,965 — 26,965 Residential mortgage-backed securities — 212,669 — 212,669 Collateralized mortgage obligations — 167,032 — 167,032 Corporate bonds — 39,678 — 39,678 Preferred stock and trust preferred securities — 3,161 — 3,161 Total investment securities – available-for-sale 8,294 677,412 — 685,706 Loans held-for-sale — 7,798 — 7,798 Total assets measured at fair value on a recurring basis $ 8,294 $ 685,210 $ — $ 693,504 December 31, 2014 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 June 30, 2014 Investment securities – available-for-sale: Government sponsored agencies $ — $ 88,708 $ — $ 88,708 State and political subdivisions — 41,608 — 41,608 Residential mortgage-backed securities — 265,368 — 265,368 Collateralized mortgage obligations — 153,283 — 153,283 Corporate bonds — 65,352 — 65,352 Preferred stock — 1,656 — 1,656 Total investment securities – available-for-sale — 615,975 — 615,975 Loans held-for-sale — 6,329 — 6,329 Total assets measured at fair value on a recurring basis $ — $ 622,304 $ — $ 622,304 |
Summary of assets measured at fair value on a nonrecurring basis | For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets were as follows: Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In thousands) June 30, 2015 Impaired originated loans $ — $ — $ 24,517 $ 24,517 Other real estate/repossessed assets — — 14,197 14,197 Total $ — $ — $ 38,714 $ 38,714 December 31, 2014 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 June 30, 2014 Impaired originated loans $ — $ — $ 29,789 $ 29,789 Other real estate/repossessed assets — — 10,392 10,392 Total $ — $ — $ 40,181 $ 40,181 |
Summary of carrying amounts and estimated fair values of the financial instruments | A summary of carrying amounts and estimated fair values of the Corporation’s financial instruments included in the consolidated statements of financial position was as follows: Level in Fair Value Measurement Hierarchy June 30, 2015 December 31, 2014 June 30, 2014 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Assets: Cash and cash equivalents Level 1 $ 215,034 $ 215,034 $ 183,020 $ 183,020 $ 140,294 $ 140,294 Investment securities: Available-for-sale Level 1 8,294 8,294 8,259 8,259 — — Available-for-sale Level 2 677,412 677,412 740,605 740,605 615,975 615,975 Held-to-maturity Level 2 469,337 466,278 305,913 308,650 297,630 297,186 Held-to-maturity Level 3 500 300 10,500 7,090 10,500 6,775 Nonmarketable equity securities NA 36,142 36,142 27,369 27,369 25,572 25,572 Loans held-for-sale Level 2 7,798 7,798 9,128 9,128 6,329 6,329 Net loans Level 3 6,959,802 6,969,655 5,612,547 5,623,454 4,821,011 4,826,672 Interest receivable Level 2 21,668 21,668 17,492 17,492 15,827 15,827 Liabilities: Deposits without defined maturities Level 2 $ 5,547,764 $ 5,547,764 $ 4,741,024 $ 4,741,024 $ 3,814,013 $ 3,814,013 Time deposits Level 3 1,745,215 1,745,215 1,337,947 1,340,015 1,278,900 1,285,992 Interest payable Level 2 1,557 1,557 755 755 735 735 Short-term borrowings Level 2 532,291 532,291 389,467 389,467 305,422 305,422 Other borrowings Level 2 106,469 106,469 — — — — Other borrowings Level 3 42,021 42,021 — — — — |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Numerator and denominator of the basic and diluted earnings per common share computations | The following summarizes the numerator and denominator of the basic and diluted earnings per common share computations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands, except per share data) Numerator for both basic and diluted earnings per common share, net income $ 19,024 $ 16,236 $ 36,859 $ 30,049 Denominator for basic earnings per common share, weighted average common shares outstanding 35,162 30,068 33,992 29,947 Weighted average common stock equivalents 235 211 235 212 Denominator for diluted earnings per common share 35,397 30,279 34,227 30,159 Basic earnings per common share $ 0.54 $ 0.54 $ 1.08 $ 1.00 Diluted earnings per common share 0.54 0.54 1.08 1.00 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of activity for Corporation's stock options | A summary of activity for the Corporation’s stock options as of and for the six months ended June 30, 2015 is presented below: Non-Vested Stock Options Outstanding Stock Options Outstanding Number of Options Weighted- Average Exercise Price Per Share Weighted- Average Grant Date Fair Value Per Share Number of Options Weighted- Average Exercise Price Per Share Outstanding at December 31, 2014 432,199 $ 26.75 $ 8.30 1,037,311 $ 25.90 Granted 244,165 30.18 8.40 244,165 30.18 Lake Michigan converted options — — — 132,883 12.93 Exercised — — — (216,690 ) 23.99 Vested (150,224 ) 25.57 7.80 — — Forfeited/expired (9,175 ) 28.21 8.52 (9,175 ) 28.21 Outstanding at June 30, 2015 516,965 $ 28.69 $ 8.49 1,188,494 $ 25.66 Exercisable/vested at June 30, 2015 671,529 $ 23.32 |
Assumptions of Black-Scholes option pricing model | The fair value of the stock options granted during the six months ended June 30, 2015 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions. Expected dividend yield 3.50 % Risk-free interest rate 1.78 % Expected stock price volatility 39.1 % Expected life of options – in years 7.0 Weighted average fair value of options granted $ 8.40 |
Summary of activity for restricted stock performance units | A summary of the activity for restricted stock units as of and for the six months ended June 30, 2015 is presented below: Number of Units Weighted- Average Grant Date Fair Value Per Unit Outstanding at December 31, 2014 204,319 $ 24.14 Granted 79,202 28.25 Converted into shares of common stock (67,489 ) 22.32 Forfeited/expired (1,427 ) 25.13 Outstanding at June 30, 2015 214,605 $ 26.23 |
Pension and Other Postretirem34
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | The components of net periodic benefit cost for the Corporation’s qualified and nonqualified pension plans and nonqualified postretirement benefit plan are as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In thousands) Defined Benefit Pension Plans Service cost $ 273 $ 251 $ 545 $ 501 Interest cost 1,332 1,312 2,664 2,624 Expected return on plan assets (2,161 ) (2,079 ) (4,322 ) (4,157 ) Amortization of prior service credit (1 ) (1 ) (2 ) (1 ) Amortization of unrecognized net loss 1,056 569 2,112 1,138 Net periodic benefit cost $ 499 $ 52 $ 997 $ 105 Postretirement Benefit Plan Service cost $ 4 $ 4 $ 8 $ 9 Interest cost 33 36 67 71 Amortization of prior service cost 32 33 65 65 Amortization of unrecognized net gain — (26 ) (1 ) (52 ) Net periodic benefit cost $ 69 $ 47 $ 139 $ 93 |
Significant Accounting Polici35
Significant Accounting Policies (Details) | May. 31, 2015USD ($) | Apr. 01, 2015USD ($) | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Jun. 30, 2015USD ($)BankPoolsshares | Jun. 30, 2014USD ($)shares | Apr. 20, 2015shares | Mar. 31, 2015shares | Dec. 31, 2014USD ($)shares | Jun. 24, 2014USD ($)$ / sharesshares | Sep. 18, 2013USD ($)$ / sharesshares | Apr. 20, 2009shares | Jan. 31, 2008shares |
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 285,512,000 | $ 120,164,000 | $ 285,512,000 | $ 120,164,000 | $ 180,128,000 | ||||||||
Number of banks through which company operates | Bank | 3 | ||||||||||||
Number of regional banking units Chemical Bank operates through | Bank | 4 | ||||||||||||
Number of minimum days when principal or interest is past due is placed in nonaccrual category | 90 days | ||||||||||||
Number of minimum days in real estate residential loan when principal or interest is past due is placed in nonaccrual category | 120 days | ||||||||||||
Time period in which payments receive consistently and loans are returned to accrual status | 6 months | ||||||||||||
Time period sustained for payment history of principal and interest payments to move them to performing status | 6 months | ||||||||||||
Time period of real estate residential troubled debt restructurings reducing borrower's monthly payments by decreasing the interest rate charged on the loan | 24 months | ||||||||||||
Minimum number of days past due as to interest or principal payments in accruing loans moves to nonperforming loans | 90 days | ||||||||||||
Minimum amount of loan reviewed for detailed credit quality | $ 250,000 | ||||||||||||
Time period for historical loan loss experience | 5 years | ||||||||||||
Minimum percentage of tax benefit is recognized for the amount likely to be realized | 50.00% | ||||||||||||
Reserve for contingent income tax liabilities recorded | 0 | 0 | $ 0 | 0 | 0 | ||||||||
Expense related to qualified affordable housing projects | 200,000 | 100,000 | 300,000 | 200,000 | |||||||||
Remaining investment in qualified affordable housing projects, proportional amortization method | 21,400,000 | 3,100,000 | 21,400,000 | 3,100,000 | 4,900,000 | ||||||||
Investment in tax credit projects, equity method | 3,300,000 | $ 0 | 3,300,000 | $ 0 | $ 0 | ||||||||
Variable Interest Entity, Reporting Entity Involvement, Unfunded Obligation, Amount | $ 9,700,000 | $ 9,700,000 | |||||||||||
Number of shares authorized to be repurchased | shares | 500,000 | ||||||||||||
Stock repurchased (shares) | shares | 0 | ||||||||||||
Number of remaining shares authorized to be repurchased (shares) | shares | 500,000 | 500,000 | |||||||||||
Common Stock, Shares, Issued | shares | 38,110,136 | 32,760,088 | 38,110,136 | 32,760,088 | 32,774,420 | 2,500,000 | 2,213,750 | ||||||
CommonStockIssuedOverAllotment | shares | 375,000 | 288,750 | |||||||||||
Gross Value of Common Stock sold in public stock offering | $ 80,500,000 | ||||||||||||
Shares Issued, Price Per Share | $ / shares | $ 28 | $ 26 | |||||||||||
Issuance of common stock, net of issuance costs | $ 76,200,000 | $ 53,900,000 | |||||||||||
Preferred stock, shares authorized | shares | 2,000,000 | 200,000 | 2,000,000 | 200,000 | 200,000 | 200,000 | |||||||
Preferred stock, shares issued | shares | 0 | 0 | 0 | 0 | 0 | ||||||||
Preferred stock, shares outstanding | shares | 0 | 0 | |||||||||||
Common Stock, Shares Authorized | shares | 60,000,000 | 45,000,000 | 60,000,000 | 45,000,000 | 45,000,000 | 45,000,000 | |||||||
Impairment on tax credit projects | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
Lake Michigan Financial Corp [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools | 2 | ||||||||||||
Monarch Community Bancorp [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools | 2 | ||||||||||||
Northwestern Bancorp [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools | 4 | ||||||||||||
OAK [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of pools of aggregate acquired loans based upon common risk characteristics | Pools | 14 | ||||||||||||
Shareholder Approved Proposal [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Preferred stock, shares authorized | shares | 2,000,000 | ||||||||||||
Common Stock, Shares Authorized | shares | 60,000,000 | ||||||||||||
Monarch Community Bancorp [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Consideration Transferred | $ 27,191,000 | ||||||||||||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | 203,000 | ||||||||||||
Goodwill | 5,383,000 | ||||||||||||
Core deposit intangible assets acquired, business combination | $ 1,930,000 | ||||||||||||
Lake Michigan Financial Corp [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Consideration Transferred | $ 187,394,000 | ||||||||||||
Business Combination, Consideration Transferred, Value of Stock and Options Issued | 132,900,000 | ||||||||||||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | 54,478,000 | ||||||||||||
Goodwill | 100,002,000 | ||||||||||||
Core deposit and other intangible assets acquired in business combination | 7,900,000 | ||||||||||||
Core deposit intangible assets acquired, business combination | $ 7,303,000 |
Acquisitions Purchase Accountin
Acquisitions Purchase Accounting Fair Value Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 31, 2015 | Apr. 01, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Purchase Accounting Fair Value Adjustments [Line Items] | |||||
Goodwill | $ 285,512 | $ 180,128 | $ 120,164 | ||
Monarch Community Bancorp [Member] | |||||
Purchase Accounting Fair Value Adjustments [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 860,575 | ||||
Business Combination, Consideration Transferred, Value of Stock Issued | $ 26,988 | ||||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | 203 | ||||
Business Combination, Consideration Transferred | 27,191 | ||||
Net Assets Acquired, Acquiree Shareholders Equity | 15,270 | ||||
Purchase Accounting Fair Value Adjustment, Loans | (7,150) | ||||
Purchase Accounting Fair Value Adjustment, Allowance for Loan Losses | 2,128 | ||||
Business Combination, Fair Value Adjustment, Deferred Tax Asset NOL | 7,900 | ||||
Purchase Accounting Fair Value Adjustment, Premises and Equipment | (370) | ||||
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset | 1,930 | ||||
Purchase Accounting Fair Value Adjustment, Mortgage Servicing Rights Asset | 315 | ||||
Purchase Accounting Fair Value Adjustment, Deferred Tax Asset, Net | 1,748 | ||||
Purchase Accounting Fair Value Adjustment, Other Assets and Liabilities, Net | 37 | ||||
Net Assets Acquired After Purchase Accounting Fair Value Adjustments | 21,808 | ||||
Goodwill | $ 5,383 | ||||
Business Acquisition, Price Per Share of Common Stock Issued | $ 31.36 | ||||
Lake Michigan Financial Corp [Member] | |||||
Purchase Accounting Fair Value Adjustments [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 4,322,101 | ||||
Business Combination, Consideration Transferred, Value of Stock Issued | $ 130,916 | ||||
Business Combination, Consideration Transferred, Value of Stock Options | 2,000 | ||||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | 54,478 | ||||
Business Combination, Consideration Transferred | 187,394 | ||||
Net Assets Acquired, Acquiree Shareholders Equity | 89,280 | ||||
Purchase Accounting Fair Value Adjustment, Loans | (22,600) | ||||
Purchase Accounting Fair Value Adjustment, Allowance for Loan Losses | 15,888 | ||||
Purchase Accounting Fair Value Adjustment, Premises and Equipment | (2,333) | ||||
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset | 7,303 | ||||
Purchase Accounting Fair Value Adjustment, Deferred Tax Asset, Net | 2,269 | ||||
Purchase Accounting Fair Value Adjustment, Deposits and Other Borrowings | (3,048) | ||||
Purchase Accounting Fair Value Adjustment, Other Assets and Liabilities, Net | (633) | ||||
Net Assets Acquired After Purchase Accounting Fair Value Adjustments | 87,392 | ||||
Goodwill | $ 100,002 | ||||
Business Acquisition, Price Per Share of Common Stock Issued | $ 30.29 |
Acquisitions Allocation of Purc
Acquisitions Allocation of Purchase Price (Details) - USD ($) $ in Thousands | May. 31, 2015 | Apr. 01, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Schedule of Purchase Price Allocation [Line Items] | |||||
Goodwill | $ 285,512 | $ 180,128 | $ 120,164 | ||
Short-term borrowings | 532,291 | 389,467 | 305,422 | ||
Other Borrowings | $ 148,490 | $ 0 | $ 0 | ||
Monarch Community Bancorp [Member] | |||||
Schedule of Purchase Price Allocation [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 32,171 | ||||
Business Combination, Acquired Receivables, Fair Value | 121,783 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 3,064 | ||||
Business Combination, Deferred Tax Asset, Net Operating Loss | 7,900 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 2,314 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 6,972 | ||||
Goodwill | 5,383 | ||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Mortgage Servicing Rights Asset | 1,284 | ||||
Core deposit intangible assets acquired, business combination | 1,930 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 182,801 | ||||
Business Combination Deposits Assumed | 144,311 | ||||
Other Borrowings | 8,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 3,299 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 155,610 | ||||
Business Combination, Consideration Transferred | $ 27,191 | ||||
Lake Michigan Financial Corp [Member] | |||||
Schedule of Purchase Price Allocation [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 39,301 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Marketable Securities | 66,699 | ||||
Business Combination, Acquired Receivables, Fair Value | 985,542 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 13,673 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets Noncurrent | 14,888 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 38,449 | ||||
Goodwill | 100,002 | ||||
Core deposit intangible assets acquired, business combination | 7,303 | ||||
Bank Owned Life Insurance | 23,844 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 1,289,701 | ||||
Business Combination Deposits Assumed | 924,697 | ||||
Short-term borrowings | 30,000 | ||||
Other Borrowings | 124,723 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 22,887 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 1,102,307 | ||||
Business Combination, Consideration Transferred | $ 187,394 |
Acquisitions Unaudited Pro Form
Acquisitions Unaudited Pro Forma Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Business Acquisition, Pro Forma interest and dividend income | $ 78,137 | $ 74,842 | $ 154,261 | $ 148,089 |
Business Acquisition, Pro Forma interest expense | 5,483 | 6,748 | 11,363 | 13,627 |
Business Acquisition, Pro Forma net interest income | 72,654 | 68,094 | 142,898 | 134,462 |
Business Acquisition, Pro Forma provision for loan losses | 1,500 | 1,860 | 3,000 | 4,035 |
Business Acquisition, Pro Forma net interest income after provision for loan losses | 71,154 | 66,234 | 139,898 | 130,427 |
Business Acquisition, Pro Forma noninterest income | 21,153 | 23,713 | 43,180 | 43,487 |
Business Acquisition, Pro Forma noninterest expense | 62,394 | 59,915 | 123,042 | 121,241 |
Business Acquisition, Pro Forma pre-tax net income | 29,913 | 30,032 | 60,036 | 52,673 |
Business Acquisition, Pro Forma federal income tax expense | 7,525 | 9,048 | 16,736 | 15,807 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 22,388 | $ 20,984 | $ 43,300 | $ 36,866 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 0.59 | $ 0.60 | $ 1.14 | $ 1.05 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 0.58 | $ 0.59 | $ 1.13 | $ 1.04 |
Weighted Average Number of Shares Outstanding, Basic | 35,162 | 30,068 | 33,992 | 29,947 |
Weighted Average Number of Shares Outstanding, Diluted | 35,397 | 30,279 | 34,227 | 30,159 |
Lake Michigan, Monarch and Northwestern [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted Average Number of Shares Outstanding, Basic | 38,044 | 35,251 | 38,024 | 35,129 |
Weighted Average Number of Shares Outstanding, Diluted | 38,279 | 35,462 | 38,259 | 35,398 |
Acquisitions (Activity for Acqu
Acquisitions (Activity for Acquired Loans) (Details) - USD ($) $ in Thousands | May. 31, 2015 | Apr. 01, 2015 | Oct. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Activity for accretable yield includes contractually due interest of acquired loans | ||||||
Balance at beginning of period | $ 137,961 | |||||
Additions attributable to acquisitions | 228,160 | |||||
Accretable Yield Additions, Net of Reductions | [1] | 2,765 | ||||
Accretion recognized in interest income | (20,838) | |||||
Reclassification from nonaccretable difference | 0 | |||||
Balance at end of period | 348,048 | |||||
Northwestern Bancorp [Member] | ||||||
Activity for accretable yield includes contractually due interest of acquired loans | ||||||
Balance at beginning of period | 104,675 | |||||
Additions attributable to acquisitions | $ 110,000 | 0 | ||||
Accretable Yield Additions, Net of Reductions | [1] | (2,859) | ||||
Accretion recognized in interest income | (10,058) | |||||
Reclassification from nonaccretable difference | 0 | |||||
Balance at end of period | 91,758 | |||||
OAK [Member] | ||||||
Activity for accretable yield includes contractually due interest of acquired loans | ||||||
Balance at beginning of period | 33,286 | $ 32,610 | ||||
Additions attributable to acquisitions | 0 | 0 | ||||
Accretable Yield Additions, Net of Reductions | [1] | 5,215 | 2,333 | |||
Accretion recognized in interest income | (6,326) | (7,594) | ||||
Reclassification from nonaccretable difference | 0 | 10,000 | ||||
Balance at end of period | 32,175 | $ 37,349 | ||||
Lake Michigan Financial Corp [Member] | ||||||
Activity for accretable yield includes contractually due interest of acquired loans | ||||||
Balance at beginning of period | 0 | |||||
Additions attributable to acquisitions | $ 190,246 | 190,246 | ||||
Accretable Yield Additions, Net of Reductions | [1] | 1,550 | ||||
Accretion recognized in interest income | (3,486) | |||||
Reclassification from nonaccretable difference | 0 | |||||
Balance at end of period | 188,310 | |||||
Monarch Community Bancorp [Member] | ||||||
Activity for accretable yield includes contractually due interest of acquired loans | ||||||
Balance at beginning of period | 0 | |||||
Additions attributable to acquisitions | $ 37,914 | 37,914 | ||||
Accretable Yield Additions, Net of Reductions | [1] | (1,141) | ||||
Accretion recognized in interest income | (968) | |||||
Reclassification from nonaccretable difference | 0 | |||||
Balance at end of period | $ 35,805 | |||||
[1] | Represents additions of estimated contractual interest expected to be collected from acquired loans being renewed or extended, less reductions in contractual interest resulting from the early payoff of acquired loans. |
Acquisitions (Textual) (Details
Acquisitions (Textual) (Details) $ / shares in Units, $ in Thousands | May. 31, 2015USD ($)Offices$ / sharesshares | Apr. 01, 2015USD ($)Officesshares | Oct. 31, 2014USD ($)Offices | Dec. 07, 2012USD ($)Branches | Apr. 30, 2010USD ($)Offices | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 285,512 | $ 285,512 | $ 180,128 | $ 120,164 | |||||
Lake Michigan Financial Corp [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Expected Principal Cash Flows of Contractually Required Acquired Loan Portfolio | $ 986,100 | ||||||||
Expected Interest Cash Flows of Contractually Required Acquired Loan Portfolio | $ 189,600 | ||||||||
Business Acquisition, Share Price | $ / shares | $ 16.64 | ||||||||
Exchange Ratio of Common Stock Issued, Business Combinations | 1.326 | ||||||||
Business Combination, Acquired Receivables, Fair Value | $ 985,542 | ||||||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 22,600 | ||||||||
Acquisition purchase price | $ 187,394 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 4,322,101 | ||||||||
Goodwill | $ 100,002 | ||||||||
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset | (7,303) | ||||||||
Intangibles acquired | $ 7,303 | ||||||||
Service provided by acquiree bank through number of branches | Offices | 5 | ||||||||
Assets of acquiree company | $ 1,240,000 | ||||||||
Deposits of acquiree company | 924,697 | ||||||||
Core deposit and other intangible assets acquired in business combination | 7,900 | ||||||||
Business Combination, Pro Forma Information, Net Interest Income of Acquiree since Acquisition Date | 3,200 | ||||||||
Business Combination, Pro Forma Information, Noninterest Income of Acquiree since Acquisition Date | 300 | ||||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 1,100 | ||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 2,000 | 2,300 | |||||||
Outstanding contractual principal balance of acquired loan portfolio | 990,000 | 990,000 | |||||||
Carrying amount of acquired loan portfolio | 967,000 | 967,000 | |||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 1,010,000 | ||||||||
Interest Payments Receivable of Acquired Loan Portfolio | 190,200 | ||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 22,000 | ||||||||
Business Combination, Consideration Transferred, Value of Stock and Options Issued | 132,900 | ||||||||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | $ 54,478 | ||||||||
Monarch Community Bancorp [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Expected Principal Cash Flows of Contractually Required Acquired Loan Portfolio | $ 122,600 | ||||||||
Expected Interest Cash Flows of Contractually Required Acquired Loan Portfolio | $ 37,100 | ||||||||
Exchange Ratio of Common Stock Issued, Business Combinations | 0.0982 | ||||||||
Business Combination, Acquired Receivables, Fair Value | $ 121,783 | ||||||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 7,100 | ||||||||
Acquisition purchase price | $ 27,191 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 860,575 | ||||||||
Goodwill | $ 5,383 | ||||||||
Purchase Accounting Fair Value Adjustment, Core Deposit Intangible Asset | (1,930) | ||||||||
Intangibles acquired | $ 1,930 | ||||||||
Service provided by acquiree bank through number of branches | Offices | 5 | ||||||||
Assets of acquiree company | $ 183,000 | ||||||||
Deposits of acquiree company | 144,311 | ||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 1,500 | 2,300 | |||||||
Outstanding contractual principal balance of acquired loan portfolio | 126,000 | 126,000 | |||||||
Carrying amount of acquired loan portfolio | 119,000 | 119,000 | |||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 128,900 | ||||||||
Interest Payments Receivable of Acquired Loan Portfolio | 37,800 | ||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 6,300 | ||||||||
Business Combination, Consideration Transferred, Cash Paid for Outstanding Stock | 203 | ||||||||
Operating Loss Carryforwards | 22,600 | ||||||||
Tax Credit Carryforwards Not Expected to Be Utilized | $ 1,700 | ||||||||
Northwestern Bancorp [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Expected Principal Cash Flows of Contractually Required Acquired Loan Portfolio | $ 481,000 | ||||||||
Expected Interest Cash Flows of Contractually Required Acquired Loan Portfolio | 104,000 | ||||||||
Business Combination, Acquired Receivables, Fair Value | 475,000 | ||||||||
Certain Loans Acquired in Transfer, Nonaccretable Difference | 34,000 | ||||||||
Acquisition purchase price | 121,000 | ||||||||
Goodwill | 60,000 | ||||||||
Intangibles acquired | $ 12,900 | ||||||||
Service provided by acquiree bank through number of branches | Offices | 25 | ||||||||
Assets of acquiree company | $ 815,000 | ||||||||
Deposits of acquiree company | 794,000 | ||||||||
Outstanding contractual principal balance of acquired loan portfolio | 415,000 | 415,000 | 485,000 | ||||||
Carrying amount of acquired loan portfolio | 382,000 | 382,000 | 452,000 | ||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 507,000 | ||||||||
Interest Payments Receivable of Acquired Loan Portfolio | 112,000 | ||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | $ 26,000 | ||||||||
Independent Bank [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of branches acquired (branches) | Branches | 21 | ||||||||
Deposits acquired | $ 404,000 | ||||||||
Loans acquired | 44,000 | ||||||||
Acquisition purchase price | 8,100 | ||||||||
Premium paid on deposits purchased | $ 11,500 | ||||||||
Premium paid as a percentage of deposits purchased (percent) | 2.85% | ||||||||
Discount on loans purchased (percent) | 1.75% | ||||||||
Goodwill | $ 6,800 | ||||||||
Independent Bank [Member] | Core Deposits [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangibles acquired | $ 5,600 | ||||||||
OAK [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Loans acquired | $ 627,000 | ||||||||
Acquisition purchase price | $ 83,700 | ||||||||
Service provided by acquiree bank through number of branches | Offices | 14 | ||||||||
Assets of acquiree company | $ 820,000 | ||||||||
Deposits of acquiree company | 693,000 | ||||||||
Brokered deposits of acquiree company | 193,000 | ||||||||
Contractually required principal payments of loan portfolio, acquisition date | 683,000 | ||||||||
Acquired loan portfolio acquisition date fair value | $ 627,000 | ||||||||
Outstanding contractual principal balance of acquired loan portfolio | 236,000 | 236,000 | 268,000 | 298,000 | |||||
Carrying amount of acquired loan portfolio | $ 215,000 | $ 215,000 | $ 246,000 | $ 274,000 |
Investment Securities (Summary
Investment Securities (Summary of Amortized Cost and Fair Value of Available-For-Sale Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | $ 686,128 | $ 749,187 | $ 614,744 |
Investment securities available-for-sale, Unrealized Gains | 2,545 | 3,003 | 4,005 |
Investment securities available-for-sale, Unrealized Losses | 2,967 | 3,326 | 2,774 |
Available-for-sale Securities, Total | 685,706 | 748,864 | 615,975 |
US Treasury Securities [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 8,270 | 8,272 | |
Investment securities available-for-sale, Unrealized Gains | 24 | 0 | |
Investment securities available-for-sale, Unrealized Losses | 0 | 13 | |
Available-for-sale Securities, Total | 8,294 | 8,259 | |
Government sponsored agencies [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 227,424 | 263,658 | 88,503 |
Investment securities available-for-sale, Unrealized Gains | 683 | 356 | 346 |
Investment securities available-for-sale, Unrealized Losses | 200 | 511 | 141 |
Available-for-sale Securities, Total | 227,907 | 263,503 | 88,708 |
State and political subdivisions [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 26,476 | 45,157 | 40,165 |
Investment securities available-for-sale, Unrealized Gains | 503 | 1,087 | 1,443 |
Investment securities available-for-sale, Unrealized Losses | 14 | 17 | 0 |
Available-for-sale Securities, Total | 26,965 | 46,227 | 41,608 |
Residential mortgage-backed securities [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 213,621 | 240,465 | 265,673 |
Investment securities available-for-sale, Unrealized Gains | 742 | 885 | 1,117 |
Investment securities available-for-sale, Unrealized Losses | 1,694 | 1,543 | 1,422 |
Available-for-sale Securities, Total | 212,669 | 239,807 | 265,368 |
Collateralized Mortgage Obligations [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 167,768 | 145,316 | 154,035 |
Investment securities available-for-sale, Unrealized Gains | 245 | 261 | 376 |
Investment securities available-for-sale, Unrealized Losses | 981 | 1,194 | 1,128 |
Available-for-sale Securities, Total | 167,032 | 144,383 | 153,283 |
Corporate bonds [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 39,680 | 44,930 | 64,979 |
Investment securities available-for-sale, Unrealized Gains | 76 | 213 | 456 |
Investment securities available-for-sale, Unrealized Losses | 78 | 48 | 83 |
Available-for-sale Securities, Total | 39,678 | 45,095 | 65,352 |
Preferred stock [Member] | |||
Available-for-sale Securities | |||
Investment securities available-for-sale, Amortized Cost | 2,889 | 1,389 | 1,389 |
Investment securities available-for-sale, Unrealized Gains | 272 | 201 | 267 |
Investment securities available-for-sale, Unrealized Losses | 0 | 0 | 0 |
Available-for-sale Securities, Total | $ 3,161 | $ 1,590 | $ 1,656 |
Investment Securities (Summar42
Investment Securities (Summary of Amortized Cost and Fair Value of Held-To-Maturity Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Held-to-maturity Securities | |||
Investment securities held-to-maturity, Amortized Cost | $ 469,837 | $ 316,413 | $ 308,130 |
Investment securities held-to-maturity, Unrealized Gains | 4,853 | 7,294 | 5,885 |
Investment securities held-to-maturity, Unrealized Losses | 8,112 | 7,967 | 10,054 |
Total Held-to-maturity securities, Debt maturities, Fair Value | 466,578 | 315,740 | 303,961 |
State and political subdivisions [Member] | |||
Held-to-maturity Securities | |||
Investment securities held-to-maturity, Amortized Cost | 469,337 | 305,913 | 297,630 |
Investment securities held-to-maturity, Unrealized Gains | 4,853 | 7,294 | 5,885 |
Investment securities held-to-maturity, Unrealized Losses | 7,912 | 4,557 | 6,329 |
Total Held-to-maturity securities, Debt maturities, Fair Value | 466,278 | 308,650 | 297,186 |
Trust Preferred Securities [Member] | |||
Held-to-maturity Securities | |||
Investment securities held-to-maturity, Amortized Cost | 500 | 10,500 | 10,500 |
Investment securities held-to-maturity, Unrealized Gains | 0 | 0 | 0 |
Investment securities held-to-maturity, Unrealized Losses | 200 | 3,410 | 3,725 |
Total Held-to-maturity securities, Debt maturities, Fair Value | $ 300 | $ 7,090 | $ 6,775 |
Investment Securities (Maturiti
Investment Securities (Maturities of Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment Securities Available-for-Sale: | |||
Due in one year or less, Amortized Cost | $ 198,939 | ||
Due after one year through five years, Amortized Cost | 411,399 | ||
Due after five years through ten years, Amortized Cost | 68,583 | ||
Due after ten years, Amortized Cost | 5,818 | ||
Preferred stock, Amortized Cost | 1,389 | ||
Total Available-for-sale Securities, Debt Maturities, Amortized Cost | 686,128 | ||
Due in one year or less , Fair Value | 198,680 | ||
Due after one year through five years, Fair Value | 411,247 | ||
Due after five years through ten years, Fair Value | 68,295 | ||
Due after ten years, Fair Value | 5,823 | ||
Preferred stock, Fair Value | 1,661 | ||
Total Available-for-sale securities, Debt maturities, Fair Value | 685,706 | ||
Investment Securities Held-to-Maturity: | |||
Due in one year or less, Amortized Cost | 55,922 | ||
Due after one year through five years, Amortized Cost | 209,886 | ||
Due after five years through ten years, Amortized Cost | 127,398 | ||
Due after ten years, Amortized Cost | 76,631 | ||
Total Held-to-maturity securities, Debt maturities, Amortized Cost | 469,837 | $ 316,413 | $ 308,130 |
Due in one year or less , Fair Value | 56,043 | ||
Due after one year through five years, Fair Value | 209,768 | ||
Due after five years through ten years, Fair Value | 125,775 | ||
Due after ten years, Fair Value | 74,992 | ||
Total Held-to-maturity securities, Debt maturities, Fair Value | $ 466,578 | $ 315,740 | $ 303,961 |
Investment Securities (Summar44
Investment Securities (Summary of Investment Securities with Gross Unrealized Losses) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | $ 530,665 | $ 317,885 | $ 156,938 |
Less Than 12 Months, Gross Unrealized Losses | 7,392 | 3,998 | 4,182 |
12 Months or More, Fair Value | 146,094 | 302,630 | 370,668 |
12 Months or More, Gross Unrealized Losses | 3,687 | 7,295 | 8,646 |
Total, Fair Value | 676,759 | 620,515 | 527,606 |
Total, Gross Unrealized Losses | 11,079 | 11,293 | 12,828 |
Government sponsored agencies [Member] | |||
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | 24,789 | 166,963 | 2,377 |
Less Than 12 Months, Gross Unrealized Losses | 163 | 406 | 2 |
12 Months or More, Fair Value | 14,715 | 31,927 | 44,786 |
12 Months or More, Gross Unrealized Losses | 37 | 105 | 139 |
Total, Fair Value | 39,504 | 198,890 | 47,163 |
Total, Gross Unrealized Losses | 200 | 511 | 141 |
State and political subdivisions [Member] | |||
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | 258,503 | 62,310 | 92,279 |
Less Than 12 Months, Gross Unrealized Losses | 5,433 | 3,348 | 4,047 |
12 Months or More, Fair Value | 63,584 | 36,847 | 71,421 |
12 Months or More, Gross Unrealized Losses | 2,493 | 1,226 | 2,282 |
Total, Fair Value | 322,087 | 99,157 | 163,700 |
Total, Gross Unrealized Losses | 7,926 | 4,574 | 6,329 |
Residential mortgage-backed securities [Member] | |||
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | 187,858 | 17,276 | 10,144 |
Less Than 12 Months, Gross Unrealized Losses | 1,592 | 52 | 60 |
12 Months or More, Fair Value | 3,643 | 180,194 | 197,042 |
12 Months or More, Gross Unrealized Losses | 102 | 1,491 | 1,362 |
Total, Fair Value | 191,501 | 197,470 | 207,186 |
Total, Gross Unrealized Losses | 1,694 | 1,543 | 1,422 |
Collateralized Mortgage Obligations [Member] | |||
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | 49,845 | 63,077 | 47,142 |
Less Than 12 Months, Gross Unrealized Losses | 155 | 179 | 68 |
12 Months or More, Fair Value | 48,881 | 31,620 | 35,722 |
12 Months or More, Gross Unrealized Losses | 826 | 1,015 | 1,060 |
Total, Fair Value | 98,726 | 94,697 | 82,864 |
Total, Gross Unrealized Losses | 981 | 1,194 | 1,128 |
Corporate bonds [Member] | |||
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | 9,670 | 0 | 4,996 |
Less Than 12 Months, Gross Unrealized Losses | 49 | 0 | 5 |
12 Months or More, Fair Value | 14,971 | 14,952 | 14,922 |
12 Months or More, Gross Unrealized Losses | 29 | 48 | 78 |
Total, Fair Value | 24,641 | 14,952 | 19,918 |
Total, Gross Unrealized Losses | 78 | 48 | 83 |
Trust Preferred Securities [Member] | |||
Summary of continuous unrealized loss position of securities | |||
Less Than 12 Months, Fair Value | 0 | 0 | 0 |
Less Than 12 Months, Gross Unrealized Losses | 0 | 0 | 0 |
12 Months or More, Fair Value | 300 | 7,090 | 6,775 |
12 Months or More, Gross Unrealized Losses | 200 | 3,410 | 3,725 |
Total, Fair Value | 300 | 7,090 | 6,775 |
Total, Gross Unrealized Losses | $ 200 | 3,410 | $ 3,725 |
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 |
Investment Securities (Textual)
Investment Securities (Textual) (Details) - USD ($) $ in Millions | May. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Schedule of Investments [Line Items] | |||
Trust preferred investment security of Non Public bank company | $ 10 | $ 10 | $ 10 |
Loans (Summary of Loans) (Detai
Loans (Summary of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Summary of loans under portfolio | |||
Commercial loan | $ 4,110,698 | $ 3,084,024 | $ 2,622,872 |
Consumer loan | 2,924,045 | 2,604,206 | 2,275,932 |
Total loans | 7,034,743 | 5,688,230 | 4,898,804 |
Commercial [Member] | |||
Summary of loans under portfolio | |||
Commercial loan | 1,754,873 | 1,354,881 | 1,212,383 |
Real estate commercial [Member] | |||
Summary of loans under portfolio | |||
Commercial loan | 2,243,513 | 1,557,648 | 1,298,365 |
Real estate construction [Member] | |||
Summary of loans under portfolio | |||
Commercial loan | 101,717 | 152,745 | 101,168 |
Land development [Member] | |||
Summary of loans under portfolio | |||
Commercial loan | 10,595 | 18,750 | 10,956 |
Real estate residential [Member] | |||
Summary of loans under portfolio | |||
Consumer loan | 1,310,167 | 1,110,390 | 970,397 |
Consumer installment [Member] | |||
Summary of loans under portfolio | |||
Consumer loan | 887,907 | 829,570 | 744,781 |
Home equity [Member] | |||
Summary of loans under portfolio | |||
Consumer loan | $ 725,971 | $ 664,246 | $ 560,754 |
Loans (Summary of Recorded Inve
Loans (Summary of Recorded Investment of Commercial Loans by Risk Rating Categories) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | $ 4,110,698 | $ 3,084,024 | $ 2,622,872 |
Commercial [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 1,754,873 | 1,354,881 | 1,212,383 |
Real estate commercial [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 2,243,513 | 1,557,648 | 1,298,365 |
Real estate construction [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 101,717 | 152,745 | 101,168 |
Land development [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 10,595 | 18,750 | 10,956 |
Originated Portfolio [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 2,823,708 | 2,603,592 | 2,388,303 |
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 | 2,640,180 | 2,423,966 | 2,218,823 |
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 | 67,299 | 74,942 | 47,143 |
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 | 73,180 | 62,913 | 75,859 |
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 | 43,045 | 41,762 | 46,251 |
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 | 4 | 9 | 227 |
Originated Portfolio [Member] | Commercial [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 1,359,856 | 1,255,898 | 1,138,523 |
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 | 1,269,091 | 1,171,817 | 1,067,000 |
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 | 32,189 | 37,800 | 15,459 |
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 | 41,316 | 29,863 | 37,291 |
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 | 17,260 | 16,417 | 18,560 |
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 | 0 | 1 | 213 |
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 | 1,363,426 | 1,204,426 | 1,154,915 |
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 | 1,273,725 | 1,114,529 | 1,063,555 |
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 | 34,677 | 34,996 | 30,053 |
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 | 29,737 | 29,935 | 35,946 |
Originated Portfolio [Member] | Real estate commercial [Member] | Risk Grade 8 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 25,283 | 24,958 | 25,347 |
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 | 4 | 8 | 14 |
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 | 96,390 | 138,740 | 88,575 |
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 | 94,894 | 134,668 | 85,754 |
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 | 0 | 1,408 | 666 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 7 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 1,249 | 2,502 | 1,995 |
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 | 247 | 162 | 160 |
Originated Portfolio [Member] | Real estate construction [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Originated Portfolio [Member] | Land development [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 4,036 | 4,528 | 6,290 |
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 | 2,470 | 2,952 | 2,514 |
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 | 433 | 738 | 965 |
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 | 878 | 613 | 627 |
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 | 255 | 225 | 2,184 |
Originated Portfolio [Member] | Land development [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 1,286,990 | 480,432 | 234,569 |
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 | 1,178,453 | 423,592 | 208,030 |
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 | 52,279 | 21,968 | 10,591 |
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 | 44,317 | 16,764 | 10,070 |
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 | 11,941 | 18,108 | 5,878 |
Acquired Portfolio [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Commercial [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 395,017 | 98,983 | 73,860 |
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 | 347,914 | 76,780 | 59,993 |
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 | 29,412 | 12,687 | 6,769 |
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 | 13,910 | 4,089 | 3,197 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 8 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 3,781 | 5,427 | 3,901 |
Acquired Portfolio [Member] | Commercial [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate commercial [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 880,087 | 353,222 | 143,450 |
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 | 820,400 | 321,018 | 132,898 |
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 | 22,796 | 8,698 | 3,822 |
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 | 30,288 | 12,478 | 6,730 |
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 | 6,603 | 11,028 | 0 |
Acquired Portfolio [Member] | Real estate commercial [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 5,327 | 14,005 | 12,593 |
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 | 5,122 | 14,005 | 12,593 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 6 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 7 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 8 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 205 | 0 | 0 |
Acquired Portfolio [Member] | Real estate construction [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 0 | 0 | 0 |
Acquired Portfolio [Member] | Land development [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | 6,559 | 14,222 | 4,666 |
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 | 5,017 | 11,789 | 2,546 |
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 | 71 | 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 | 119 | 197 | 143 |
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 | 1,352 | 1,653 | 1,977 |
Acquired Portfolio [Member] | Land development [Member] | Risk Grade 9 [Member] | |||
Recorded investment of loans in commercial loan portfolio by risk rating categories | |||
Recorded investment (loan balance), Commercial, Total | $ 0 | $ 0 | $ 0 |
Loans (Summary of Recorded In48
Loans (Summary of Recorded Investment of Consumer Loans by Risk Rating Categories) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
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 | $ 2,924,045 | $ 2,604,206 | $ 2,275,932 |
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 | 1,310,167 | 1,110,390 | 970,397 |
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 | 887,907 | 829,570 | 744,781 |
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 | 725,971 | 664,246 | 560,754 |
Originated Loans [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 2,527,302 | 2,386,475 | 2,236,106 |
Originated Loans [Member] | Real estate residential [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 1,068,489 | 998,001 | 959,985 |
Originated Loans [Member] | Consumer installment [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 871,936 | 819,378 | 743,657 |
Originated Loans [Member] | Home equity [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 586,877 | 569,096 | 532,464 |
Originated Loans [Member] | Performing [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 2,514,759 | 2,372,503 | 2,219,982 |
Originated Loans [Member] | Performing [Member] | Real estate residential [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 1,058,696 | 987,542 | 947,768 |
Originated Loans [Member] | Performing [Member] | Consumer installment [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 871,543 | 818,878 | 743,121 |
Originated Loans [Member] | Performing [Member] | Home equity [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 584,520 | 566,083 | 529,093 |
Originated Loans [Member] | Nonperforming [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 12,543 | 13,972 | 16,124 |
Originated Loans [Member] | Nonperforming [Member] | Real estate residential [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 9,793 | 10,459 | 12,217 |
Originated Loans [Member] | Nonperforming [Member] | Consumer installment [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 393 | 500 | 536 |
Originated Loans [Member] | Nonperforming [Member] | Home equity [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 2,357 | 3,013 | 3,371 |
Acquired Loans [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 396,743 | 217,731 | 39,826 |
Acquired Loans [Member] | Real estate residential [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 241,678 | 112,389 | 10,412 |
Acquired Loans [Member] | Consumer installment [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 15,971 | 10,192 | 1,124 |
Acquired Loans [Member] | Home equity [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 139,094 | 95,150 | 28,290 |
Acquired Loans [Member] | Performing [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 392,750 | 215,971 | 39,694 |
Acquired Loans [Member] | Performing [Member] | Real estate residential [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 238,698 | 111,101 | 10,343 |
Acquired Loans [Member] | Performing [Member] | Consumer installment [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 15,966 | 10,174 | 1,124 |
Acquired Loans [Member] | Performing [Member] | Home equity [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 138,086 | 94,696 | 28,227 |
Acquired Loans [Member] | Nonperforming [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 3,993 | 1,760 | 132 |
Acquired Loans [Member] | Nonperforming [Member] | Real estate residential [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 2,980 | 1,288 | 69 |
Acquired Loans [Member] | Nonperforming [Member] | Consumer installment [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | 5 | 18 | 0 |
Acquired Loans [Member] | Nonperforming [Member] | Home equity [Member] | |||
Recorded investment of loans in consumer loan portfolio based on credit risk profile of loans in performing and nonperforming status | |||
Recorded investment (loan balance), Consumer, Total | $ 1,008 | $ 454 | $ 63 |
Loans (Summary of Nonperforming
Loans (Summary of Nonperforming Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Summary of nonperforming loans | |||
Total TDRs | $ 99,428 | $ 101,322 | $ 104,383 |
Total loans | $ 7,034,743 | 5,688,230 | 4,898,804 |
Minimum number of days accruing loans past due move to nonaccrual status | 90 days | ||
Commercial Loan Portfolio [Member] | |||
Summary of nonperforming loans | |||
Total TDRs | $ 74,751 | 77,047 | 80,696 |
Total loans | 4,110,698 | 3,084,024 | 2,622,872 |
Consumer Loan Portfolio [Member] | |||
Summary of nonperforming loans | |||
Total TDRs | 24,677 | 24,275 | 23,687 |
Total loans | 2,924,045 | 2,604,206 | 2,275,932 |
Nonperforming [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 51,215 | 50,644 | 55,635 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 1,779 | 2,073 | 1,535 |
Total TDRs | 17,912 | 18,467 | 16,565 |
Total loans | 70,906 | 71,184 | 73,735 |
Nonperforming [Member] | Commercial Loan Portfolio [Member] | |||
Summary of nonperforming loans | |||
Total TDRs | 14,547 | 15,271 | 11,049 |
Nonperforming [Member] | Consumer Loan Portfolio [Member] | |||
Summary of nonperforming loans | |||
Total TDRs | 3,365 | 3,196 | 5,516 |
Nonperforming [Member] | Commercial [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 17,260 | 16,418 | 18,773 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 711 | 170 | 15 |
Nonperforming [Member] | Real estate commercial [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 25,287 | 24,966 | 25,361 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 56 | 0 | 69 |
Nonperforming [Member] | Real Estate Construction Loans [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 247 | 162 | 160 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 | 0 |
Nonperforming [Member] | Land Development Loans [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 255 | 225 | 2,184 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 | 0 |
Nonperforming [Member] | Real estate residential [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 6,004 | 6,706 | 6,325 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 424 | 557 | 376 |
Nonperforming [Member] | Consumer Installment Loans [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 393 | 500 | 536 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | 0 | 0 | 0 |
Nonperforming [Member] | Home Equity Loans [Member] | |||
Summary of nonperforming loans | |||
Total nonaccrual loans | 1,769 | 1,667 | 2,296 |
Total accruing loans contractually past due 90 days or more as to interest or principal payments | $ 588 | $ 1,346 | $ 1,075 |
Loans (Summary of Impaired Loan
Loans (Summary of Impaired Loans by Classes of Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | $ 27,803 | $ 23,234 | $ 27,627 |
Unpaid Principal Balance | 28,055 | 23,648 | 29,216 |
Related Valuation Allowance | 1,581 | 1,338 | 1,719 |
Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 103,066 | 111,433 | 99,153 |
Unpaid Principal Balance | 132,985 | 141,622 | 119,489 |
Related Valuation Allowance | 0 | 0 | 0 |
Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 130,869 | 134,667 | 126,780 |
Unpaid Principal Balance | 161,040 | 165,270 | 148,705 |
Related Valuation Allowance | 1,581 | 1,338 | 1,719 |
Commercial [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 4,044 | 966 | 2,905 |
Unpaid Principal Balance | 4,137 | 1,040 | 3,258 |
Related Valuation Allowance | 718 | 293 | 563 |
Commercial [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 32,461 | 38,094 | 39,420 |
Unpaid Principal Balance | 38,160 | 44,557 | 43,463 |
Related Valuation Allowance | 0 | 0 | 0 |
Commercial [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 36,505 | 39,060 | 42,325 |
Unpaid Principal Balance | 42,297 | 45,597 | 46,721 |
Related Valuation Allowance | 718 | 293 | 563 |
Real estate commercial [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 2,789 | 2,587 | 4,369 |
Unpaid Principal Balance | 2,948 | 2,927 | 5,605 |
Related Valuation Allowance | 603 | 710 | 777 |
Real estate commercial [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 56,052 | 60,616 | 46,205 |
Unpaid Principal Balance | 78,490 | 82,693 | 58,997 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate commercial [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 58,841 | 63,203 | 50,574 |
Unpaid Principal Balance | 81,438 | 85,620 | 64,602 |
Related Valuation Allowance | 603 | 710 | 777 |
Real estate construction [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 451 | 162 | 160 |
Unpaid Principal Balance | 531 | 255 | 366 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate construction [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 451 | 162 | 160 |
Unpaid Principal Balance | 531 | 255 | 366 |
Related Valuation Allowance | 0 | 0 | 0 |
Land development [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 1,942 | 1,928 | 4,211 |
Unpaid Principal Balance | 3,644 | 3,484 | 7,506 |
Related Valuation Allowance | 0 | 0 | 0 |
Land development [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 1,942 | 1,928 | 4,211 |
Unpaid Principal Balance | 3,644 | 3,484 | 7,506 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate residential [Member] | Impaired loans with a valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 20,970 | 19,681 | 20,353 |
Unpaid Principal Balance | 20,970 | 19,681 | 20,353 |
Related Valuation Allowance | 260 | 335 | 379 |
Real estate residential [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 8,984 | 7,994 | 6,325 |
Unpaid Principal Balance | 8,984 | 7,994 | 6,325 |
Related Valuation Allowance | 0 | 0 | 0 |
Real estate residential [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 29,954 | 27,675 | 26,678 |
Unpaid Principal Balance | 29,954 | 27,675 | 26,678 |
Related Valuation Allowance | 260 | 335 | 379 |
Consumer installment [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 398 | 518 | 536 |
Unpaid Principal Balance | 398 | 518 | 536 |
Related Valuation Allowance | 0 | 0 | 0 |
Consumer installment [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 398 | 518 | 536 |
Unpaid Principal Balance | 398 | 518 | 536 |
Related Valuation Allowance | 0 | 0 | 0 |
Home equity [Member] | Impaired loans with no valuation allowance [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 2,778 | 2,121 | 2,296 |
Unpaid Principal Balance | 2,778 | 2,121 | 2,296 |
Related Valuation Allowance | 0 | 0 | 0 |
Home equity [Member] | Total Impaired Loans [Member] | |||
Schedule of Impaired loans by classes | |||
Recorded Investment | 2,778 | 2,121 | 2,296 |
Unpaid Principal Balance | 2,778 | 2,121 | 2,296 |
Related Valuation Allowance | $ 0 | $ 0 | $ 0 |
Loans (Summary of Information R
Loans (Summary of Information Related to Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | $ 131,805 | $ 127,956 | $ 131,670 | $ 128,707 |
Interest income recognized related to loans with impaired status | 1,152 | 1,075 | 2,332 | 2,109 |
Commercial [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 36,735 | 42,629 | 37,655 | 42,118 |
Interest income recognized related to loans with impaired status | 263 | 347 | 552 | 680 |
Real estate commercial [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 60,393 | 51,260 | 60,317 | 52,290 |
Interest income recognized related to loans with impaired status | 458 | 366 | 983 | 727 |
Real estate construction [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 390 | 163 | 515 | 165 |
Interest income recognized related to loans with impaired status | 2 | 0 | 2 | 0 |
Land development [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 1,900 | 4,312 | 1,888 | 4,478 |
Interest income recognized related to loans with impaired status | 34 | 34 | 61 | 71 |
Real estate residential [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 29,432 | 26,737 | 28,392 | 26,758 |
Interest income recognized related to loans with impaired status | 380 | 328 | 711 | 631 |
Consumer installment [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 426 | 634 | 463 | 704 |
Interest income recognized related to loans with impaired status | 1 | 0 | 1 | 0 |
Home equity [Member] | ||||
Schedule representing information related to impaired loans | ||||
Average recorded investment related to impaired loans | 2,529 | 2,221 | 2,440 | 2,194 |
Interest income recognized related to loans with impaired status | $ 14 | $ 0 | $ 22 | $ 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 ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
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 | $ 13,618 | $ 20,595 | $ 17,112 |
Financing receivable, recorded investment 61 to 89 days past due | 3,940 | 3,352 | 3,432 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,779 | 2,073 | 1,535 |
Financing receivable, recorded investment, Nonaccrual loans | 51,215 | 50,644 | 55,635 |
Financing receivable recorded investment, Total past due | 70,552 | 76,664 | 77,714 |
Financing receivable, recorded investment, current | 5,280,458 | 4,913,403 | 4,546,695 |
Financing receivable, recorded investment, Total loans | 5,351,010 | 4,990,067 | 4,624,409 |
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 | 4,055 | 4,033 | 4,149 |
Financing receivable, recorded investment 61 to 89 days past due | 2,317 | 743 | 1,901 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 711 | 170 | 15 |
Financing receivable, recorded investment, Nonaccrual loans | 17,260 | 16,418 | 18,773 |
Financing receivable recorded investment, Total past due | 24,343 | 21,364 | 24,838 |
Financing receivable, recorded investment, current | 1,335,513 | 1,234,534 | 1,113,685 |
Financing receivable, recorded investment, Total loans | 1,359,856 | 1,255,898 | 1,138,523 |
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 | 2,754 | 7,515 | 5,933 |
Financing receivable, recorded investment 61 to 89 days past due | 1,117 | 1,383 | 233 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 56 | 0 | 69 |
Financing receivable, recorded investment, Nonaccrual loans | 25,287 | 24,966 | 25,361 |
Financing receivable recorded investment, Total past due | 29,214 | 33,864 | 31,596 |
Financing receivable, recorded investment, current | 1,334,212 | 1,170,562 | 1,123,319 |
Financing receivable, recorded investment, Total loans | 1,363,426 | 1,204,426 | 1,154,915 |
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 | 413 | 262 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 247 | 162 | 160 |
Financing receivable recorded investment, Total past due | 660 | 424 | 160 |
Financing receivable, recorded investment, current | 95,730 | 138,316 | 88,415 |
Financing receivable, recorded investment, Total loans | 96,390 | 138,740 | 88,575 |
Originated Portfolio [Member] | Land development [Member] | |||
Schedule representing the aging status of the recorded investment in loans by classes | |||
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 255 | 225 | 2,184 |
Financing receivable recorded investment, Total past due | 255 | 225 | 2,184 |
Financing receivable, recorded investment, current | 3,781 | 4,303 | 4,106 |
Financing receivable, recorded investment, Total loans | 4,036 | 4,528 | 6,290 |
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 | 1,536 | 2,126 | 2,515 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 54 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 424 | 557 | 376 |
Financing receivable, recorded investment, Nonaccrual loans | 6,004 | 6,706 | 6,325 |
Financing receivable recorded investment, Total past due | 7,964 | 9,443 | 9,216 |
Financing receivable, recorded investment, current | 1,060,525 | 988,558 | 950,769 |
Financing receivable, recorded investment, Total loans | 1,068,489 | 998,001 | 959,985 |
Originated Portfolio [Member] | Consumer installment [Member] | |||
Schedule representing the aging status of the recorded investment in loans by classes | |||
Financing receivable, recorded investment 31 to 60 days past due | 2,526 | 3,620 | 2,513 |
Financing receivable, recorded investment 61 to 89 days past due | 302 | 512 | 313 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 0 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 393 | 500 | 536 |
Financing receivable recorded investment, Total past due | 3,221 | 4,632 | 3,362 |
Financing receivable, recorded investment, current | 868,715 | 814,746 | 740,295 |
Financing receivable, recorded investment, Total loans | 871,936 | 819,378 | 743,657 |
Originated Portfolio [Member] | Home equity [Member] | |||
Schedule representing the aging status of the recorded investment in loans by classes | |||
Financing receivable, recorded investment 31 to 60 days past due | 2,334 | 3,039 | 2,002 |
Financing receivable, recorded investment 61 to 89 days past due | 204 | 660 | 985 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 588 | 1,346 | 1,075 |
Financing receivable, recorded investment, Nonaccrual loans | 1,769 | 1,667 | 2,296 |
Financing receivable recorded investment, Total past due | 4,895 | 6,712 | 6,358 |
Financing receivable, recorded investment, current | 581,982 | 562,384 | 526,106 |
Financing receivable, recorded investment, Total loans | 586,877 | 569,096 | 532,464 |
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 | 3,889 | 2,994 | 345 |
Financing receivable, recorded investment 61 to 89 days past due | 695 | 461 | 49 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 15,934 | 19,892 | 10,447 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 20,518 | 23,347 | 10,841 |
Financing receivable, recorded investment, current | 1,663,215 | 674,816 | 263,554 |
Financing receivable, recorded investment, Total loans | 1,683,733 | 698,163 | 274,395 |
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 | 690 | 133 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 3,781 | 5,427 | 6,744 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 4,471 | 5,560 | 6,744 |
Financing receivable, recorded investment, current | 390,546 | 93,423 | 67,116 |
Financing receivable, recorded investment, Total loans | 395,017 | 98,983 | 73,860 |
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 | 969 | 2,014 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 291 | 352 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 6,603 | 11,052 | 1,594 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 7,863 | 13,418 | 1,594 |
Financing receivable, recorded investment, current | 872,224 | 339,804 | 141,856 |
Financing receivable, recorded investment, Total loans | 880,087 | 353,222 | 143,450 |
Acquired Portfolio [Member] | Real estate construction [Member] | |||
Schedule representing the aging status of the recorded investment in loans by classes | |||
Financing receivable, recorded investment 31 to 60 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 205 | 0 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 205 | 0 | 0 |
Financing receivable, recorded investment, current | 5,122 | 14,005 | 12,593 |
Financing receivable, recorded investment, Total loans | 5,327 | 14,005 | 12,593 |
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 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 0 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,352 | 1,653 | 1,977 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 1,352 | 1,653 | 1,977 |
Financing receivable, recorded investment, current | 5,207 | 12,569 | 2,689 |
Financing receivable, recorded investment, Total loans | 6,559 | 14,222 | 4,666 |
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 | 1,077 | 156 | 0 |
Financing receivable, recorded investment 61 to 89 days past due | 138 | 0 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 2,980 | 18 | 69 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 4,195 | 174 | 69 |
Financing receivable, recorded investment, current | 237,483 | 112,215 | 10,343 |
Financing receivable, recorded investment, Total loans | 241,678 | 112,389 | 10,412 |
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 | 0 | 55 | 20 |
Financing receivable, recorded investment 61 to 89 days past due | 56 | 3 | 0 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 5 | 454 | 0 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 61 | 512 | 20 |
Financing receivable, recorded investment, current | 15,910 | 9,680 | 1,104 |
Financing receivable, recorded investment, Total loans | 15,971 | 10,192 | 1,124 |
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 | 1,153 | 636 | 325 |
Financing receivable, recorded investment 61 to 89 days past due | 210 | 106 | 49 |
Financing receivable, recorded investment accruing loans past due 90 days or more | 1,008 | 1,288 | 63 |
Financing receivable, recorded investment, Nonaccrual loans | 0 | 0 | 0 |
Financing receivable recorded investment, Total past due | 2,371 | 2,030 | 437 |
Financing receivable, recorded investment, current | 136,723 | 93,120 | 27,853 |
Financing receivable, recorded investment, Total loans | $ 139,094 | $ 95,150 | $ 28,290 |
Loans (Summary of TDRs) (Detail
Loans (Summary of TDRs) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Schedule of corporation's TDRs | |||
Total TDRs | $ 99,428 | $ 101,322 | $ 104,383 |
Commercial Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 74,751 | 77,047 | 80,696 |
Consumer Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 24,677 | 24,275 | 23,687 |
Performing [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 45,808 | 45,664 | 44,133 |
Performing [Member] | Commercial Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 28,203 | 29,179 | 29,296 |
Performing [Member] | Consumer Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 17,605 | 16,485 | 14,837 |
Nonperforming [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 17,912 | 18,467 | 16,565 |
Nonperforming [Member] | Commercial Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 14,547 | 15,271 | 11,049 |
Nonperforming [Member] | Consumer Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 3,365 | 3,196 | 5,516 |
Substandard Nonaccrual [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 35,708 | 37,191 | 43,685 |
Substandard Nonaccrual [Member] | Commercial Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | 32,001 | 32,597 | 40,351 |
Substandard Nonaccrual [Member] | Consumer Loan Portfolio [Member] | |||
Schedule of corporation's TDRs | |||
Total TDRs | $ 3,707 | $ 4,594 | $ 3,334 |
Loans (Summary of TDRs Modified
Loans (Summary of TDRs Modified During the Period) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)Loans | Jun. 30, 2014USD ($)Loans | Jun. 30, 2015USD ($)Loans | Jun. 30, 2014USD ($)Loans | |
Schedule providing information on TDRs | ||||
Modified TDRs, Number of loans | Loans | 47 | 90 | 67 | 142 |
Modified TDRs, Pre-modification recorded investment | $ 4,797 | $ 8,358 | $ 9,599 | $ 20,563 |
Modified TDRs, Post-modification recorded investment | $ 4,795 | $ 8,357 | $ 9,597 | $ 20,553 |
Subtotal-commercial loan portfolio [Member] | Commercial Loan Portfolio [Member] | ||||
Schedule providing information on TDRs | ||||
Modified TDRs, Number of loans | Loans | 18 | 27 | 28 | 49 |
Modified TDRs, Pre-modification recorded investment | $ 3,164 | $ 6,709 | $ 7,630 | $ 17,927 |
Modified TDRs, Post-modification recorded investment | $ 3,164 | $ 6,709 | $ 7,630 | $ 17,927 |
Consumer loan portfolio [Member] | Consumer Portfolio Segment [Member] | ||||
Schedule providing information on TDRs | ||||
Modified TDRs, Number of loans | Loans | 29 | 63 | 39 | 93 |
Modified TDRs, Pre-modification recorded investment | $ 1,633 | $ 1,649 | $ 1,969 | $ 2,636 |
Modified TDRs, Post-modification recorded investment | $ 1,631 | $ 1,648 | $ 1,967 | $ 2,626 |
Commercial [Member] | Commercial Loan Portfolio [Member] | ||||
Schedule providing information on TDRs | ||||
Modified TDRs, Number of loans | Loans | 13 | 15 | 18 | 27 |
Modified TDRs, Pre-modification recorded investment | $ 2,332 | $ 3,575 | $ 4,264 | $ 11,931 |
Modified TDRs, Post-modification recorded investment | $ 2,332 | $ 3,575 | $ 4,264 | $ 11,931 |
Real estate commercial [Member] | Commercial Loan Portfolio [Member] | ||||
Schedule providing information on TDRs | ||||
Modified TDRs, Number of loans | Loans | 4 | 12 | 9 | 21 |
Modified TDRs, Pre-modification recorded investment | $ 527 | $ 3,134 | $ 3,061 | $ 5,924 |
Modified TDRs, Post-modification recorded investment | $ 527 | $ 3,134 | $ 3,061 | $ 5,924 |
Land development [Member] | Commercial Loan Portfolio [Member] | ||||
Schedule providing information on TDRs | ||||
Modified TDRs, Number of loans | Loans | 1 | 0 | 1 | 1 |
Modified TDRs, Pre-modification recorded investment | $ 305 | $ 0 | $ 305 | $ 72 |
Modified TDRs, Post-modification recorded investment | $ 305 | $ 0 | $ 305 | $ 72 |
Loans (Summary of TDRs with a P
Loans (Summary of TDRs with a Payment Default During the Period) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)Loans | Jun. 30, 2014USD ($)Loans | Jun. 30, 2015USD ($)Loans | Jun. 30, 2014USD ($)Loans | |
Troubled debt restructurings on financing receivables with defaults payment | ||||
Financing receivable modifications subsequent default number of contract | 1 | 11 | 5 | 14 |
Financing receivable modification subsequent default recorded investment | $ | $ 183 | $ 1,454 | $ 975 | $ 3,228 |
Consumer Portfolio Segment [Member] | ||||
Troubled debt restructurings on financing receivables with defaults payment | ||||
Financing receivable modifications subsequent default number of contract | 0 | 3 | 1 | 3 |
Financing receivable modification subsequent default recorded investment | $ | $ 0 | $ 80 | $ 33 | $ 80 |
Commercial [Member] | Commercial Loan Portfolio [Member] | ||||
Troubled debt restructurings on financing receivables with defaults payment | ||||
Financing receivable modifications subsequent default number of contract | 0 | 5 | 0 | 6 |
Financing receivable modification subsequent default recorded investment | $ | $ 0 | $ 771 | $ 0 | $ 875 |
Real estate commercial [Member] | Commercial Loan Portfolio [Member] | ||||
Troubled debt restructurings on financing receivables with defaults payment | ||||
Financing receivable modifications subsequent default number of contract | 1 | 3 | 4 | 5 |
Financing receivable modification subsequent default recorded investment | $ | $ 183 | $ 603 | $ 942 | $ 2,273 |
Subtotal-commercial loan portfolio [Member] | Commercial Loan Portfolio [Member] | ||||
Troubled debt restructurings on financing receivables with defaults payment | ||||
Financing receivable modifications subsequent default number of contract | 1 | 8 | 4 | 11 |
Financing receivable modification subsequent default recorded investment | $ | $ 183 | $ 1,374 | $ 942 | $ 3,148 |
Loans (Schedule of the Allowanc
Loans (Schedule of the Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | |||||||
Beginning balance | $ 75,256 | $ 78,473 | $ 75,683 | $ 79,072 | |||
Provision for loan losses | 1,500 | 1,500 | 3,000 | 3,100 | |||
Charge-offs | (2,724) | (3,375) | (5,867) | (6,847) | |||
Recoveries | 909 | 1,195 | 2,125 | 2,468 | |||
Ending balance | 74,941 | 77,793 | 74,941 | 77,793 | |||
Allowance for loan losses | |||||||
Loans individually evaluated for impairment related to allowance for loan losses | $ 1,581 | $ 1,338 | $ 1,719 | ||||
Loans collectively evaluated for impairment related to allowance for loan losses | 73,360 | 73,845 | 75,574 | ||||
Loans acquired with deteriorated credit quality related to allowance for loan losses | 0 | 500 | 500 | ||||
Total | 75,256 | 78,473 | 75,683 | 79,072 | 74,941 | 75,683 | 77,793 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 106,769 | 105,902 | 107,176 | ||||
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 5,244,241 | 4,884,165 | 4,517,233 | ||||
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 1,683,733 | 698,163 | 274,395 | ||||
Total loans | 7,034,743 | 5,688,230 | 4,898,804 | ||||
Commercial Loan Portfolio [Member] | |||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | |||||||
Beginning balance | 46,819 | 45,010 | 44,156 | 44,482 | |||
Provision for loan losses | (626) | 439 | 2,967 | 1,399 | |||
Charge-offs | (915) | (1,814) | (2,419) | (3,023) | |||
Recoveries | 249 | 589 | 823 | 1,366 | |||
Ending balance | 45,527 | 44,224 | 45,527 | 44,224 | |||
Allowance for loan losses | |||||||
Loans individually evaluated for impairment related to allowance for loan losses | 1,321 | 1,003 | 1,340 | ||||
Loans collectively evaluated for impairment related to allowance for loan losses | 44,206 | 43,153 | 42,884 | ||||
Loans acquired with deteriorated credit quality related to allowance for loan losses | 0 | 0 | 0 | ||||
Total | 46,819 | 45,010 | 44,156 | 44,482 | 45,527 | 44,156 | 44,224 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 85,799 | 86,221 | 86,823 | ||||
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 2,737,909 | 2,517,371 | 2,301,480 | ||||
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 1,286,990 | 480,432 | 234,569 | ||||
Total loans | 4,110,698 | 3,084,024 | 2,622,872 | ||||
Consumer Loan Portfolio [Member] | |||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | |||||||
Beginning balance | 24,579 | 29,233 | 28,803 | 30,145 | |||
Provision for loan losses | (109) | 1,287 | (3,336) | 2,142 | |||
Charge-offs | (1,809) | (1,561) | (3,448) | (3,824) | |||
Recoveries | 660 | 606 | 1,302 | 1,102 | |||
Ending balance | 23,321 | 29,565 | 23,321 | 29,565 | |||
Allowance for loan losses | |||||||
Loans individually evaluated for impairment related to allowance for loan losses | 260 | 335 | 379 | ||||
Loans collectively evaluated for impairment related to allowance for loan losses | 23,061 | 27,968 | 28,686 | ||||
Loans acquired with deteriorated credit quality related to allowance for loan losses | 0 | 500 | 500 | ||||
Total | 24,579 | 29,233 | 28,803 | 30,145 | 23,321 | 28,803 | 29,565 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 20,970 | 19,681 | 20,353 | ||||
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 2,506,332 | 2,366,794 | 2,215,753 | ||||
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 396,743 | 217,731 | 39,826 | ||||
Total loans | 2,924,045 | 2,604,206 | 2,275,932 | ||||
Unallocated [Member] | |||||||
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment | |||||||
Beginning balance | 3,858 | 4,230 | 2,724 | 4,445 | |||
Provision for loan losses | 2,235 | (226) | 3,369 | (441) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 6,093 | 4,004 | 6,093 | 4,004 | |||
Allowance for loan losses | |||||||
Loans individually evaluated for impairment related to allowance for loan losses | 0 | 0 | 0 | ||||
Loans collectively evaluated for impairment related to allowance for loan losses | 6,093 | 2,724 | 4,004 | ||||
Loans acquired with deteriorated credit quality related to allowance for loan losses | 0 | 0 | 0 | ||||
Total | $ 3,858 | $ 4,230 | $ 2,724 | $ 4,445 | 6,093 | 2,724 | 4,004 |
Loans individually evaluated for impairment related to recorded investment (loan balance) | 0 | 0 | 0 | ||||
Loans collectively evaluated for impairment related to recorded investment (loan balance) | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality related to recorded investment (loan balance) | 0 | 0 | 0 | ||||
Total loans | $ 0 | $ 0 | $ 0 |
Loans (Textual) (Details)
Loans (Textual) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)SegmentLoansBaordOfDirectorsTenants | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | $ 0 | $ 0 | $ 500 | $ 500 |
Loans (Textual) [Abstract] | ||||
Number of portfolio segment | Segment | 2 | |||
Number of classes of loans | Loans | 7 | |||
Number of minimum tenants under lease of non-owner occupied commercial real estate | Tenants | 1 | |||
Number of members of the board of directors in loan committee | BaordOfDirectors | 8 | |||
Minimum due period of loans consider in a nonperforming status | 90 days | |||
Total nonaccrual TDR loans | 35,700 | $ 35,700 | 37,200 | 43,700 |
Difference between recorded investment and unpaid principal balance of loan | 30,200 | 30,200 | 30,600 | 21,900 |
Confirmed losses (partial charge-offs) | 15,200 | 15,200 | 15,400 | 18,200 |
Fair value of discount adjustment | 15,000 | 15,000 | 15,200 | 3,700 |
Acquired impaired loans | 15,900 | 15,900 | 19,900 | 10,400 |
Performing trouble debt restructuring under impaired loans | 45,800 | 45,800 | 45,700 | 44,100 |
Financing receivable allowance for acquired loans | 500 | 500 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 0 | |||
Residential Mortgage Loans in Process of Foreclosure | 2,000 | 2,000 | 2,300 | 3,600 |
Commercial Loan Portfolio [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 |
Loans (Textual) [Abstract] | ||||
Minimum value of loan requires executive and senior officer approval | 1,500 | 1,500 | ||
Consumer Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | $ 0 | $ 500 | $ 500 |
Loans (Textual) [Abstract] | ||||
Maximum due period of loans consider in performing status | 90 days | |||
Minimum due period of loans consider in a nonperforming status | 90 days | |||
Commercial [Member] | ||||
Loans (Textual) [Abstract] | ||||
Minimum value of loan requires group loan authority approval | 1,000 | $ 1,000 | ||
Maximum value of loan requires executive and senior officer approval | 3,500 | $ 3,500 | ||
Increase in Minimum Value of Loans Requiring Group Loan Authority Approval | 5,000 | |||
Real Estate Residential Loans [Member] | ||||
Loans (Textual) [Abstract] | ||||
Period for loan secured under real estate residential security | 15 years | |||
Loan-to-value ratio at the time of origination | 80.00% | |||
Land Development Loans [Member] | ||||
Loans (Textual) [Abstract] | ||||
Maximum period for payment of loan | 12 months | |||
Maximum [Member] | Commercial Loan Portfolio [Member] | ||||
Loans (Textual) [Abstract] | ||||
Maximum value of loan requires group loan authority approval | 10,000 | $ 10,000 | ||
Other loans requiring director loan committee approval depending on risk rating and credit action required | 10,000 | $ 10,000 | ||
Maximum [Member] | Real Estate Residential Loans [Member] | ||||
Loans (Textual) [Abstract] | ||||
Upper limit of number of family residential properties | Tenants | 4 | |||
Minimum [Member] | Commercial Loan Portfolio [Member] | ||||
Loans (Textual) [Abstract] | ||||
Minimum value of loan requires group loan authority approval | 1,000 | $ 1,000 | ||
Minimum value of loans depending on risk rating and requires credit action from board of directors | 15,000 | 15,000 | ||
Minimum [Member] | Commercial [Member] | ||||
Loans (Textual) [Abstract] | ||||
Minimum value of loans requiring only director loan committee approval | $ 10,000 | $ 10,000 | ||
Minimum [Member] | Real Estate Residential Loans [Member] | ||||
Loans (Textual) [Abstract] | ||||
Lower limit of number of family residential properties | Tenants | 1 |
Intangible Assets (Net Carrying
Intangible Assets (Net Carrying Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | May. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Net carrying value of intangible assets | ||||||||
Goodwill | $ 285,512 | $ 180,128 | $ 120,164 | |||||
Other intangible assets: | ||||||||
Total other intangible assets | 41,201 | 33,080 | 12,454 | |||||
Core deposit intangible assets [Member] | ||||||||
Other intangible assets: | ||||||||
Finite-Lived Core Deposits, Gross | 28,353 | 20,863 | 9,110 | |||||
Total other intangible assets | 28,353 | 20,863 | 9,110 | |||||
Noncompete Agreements [Member] | ||||||||
Other intangible assets: | ||||||||
Finite-Lived Noncompete Agreements, Gross | 0 | $ 0 | ||||||
Mortgage servicing rights [Member] | ||||||||
Other intangible assets: | ||||||||
Servicing Asset at Amortized Cost | 12,307 | 12,217 | 3,344 | |||||
Total other intangible assets | 12,307 | $ 11,583 | $ 12,217 | $ 3,344 | $ 3,316 | $ 3,423 | ||
Lake Michigan Financial Corp [Member] | ||||||||
Net carrying value of intangible assets | ||||||||
Goodwill | $ 100,002 | |||||||
Other intangible assets: | ||||||||
Finite-Lived Noncompete Agreements, Gross | $ 541 | $ 600 |
Intangible Assets (Amortization
Intangible Assets (Amortization Expense of Core Deposit Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | |||||
Carrying amount | $ 41,201 | $ 12,454 | $ 41,201 | $ 12,454 | $ 33,080 |
Amortization of intangible assets | 3,787 | 1,391 | |||
Core deposit intangible assets [Member] | |||||
Carrying amount, accumulated amortization and amortization expense of core deposit intangible assets | |||||
Gross original amount | 39,355 | 18,659 | 39,355 | 18,659 | 31,550 |
Accumulated amortization | 11,002 | 9,549 | 11,002 | 9,549 | 10,687 |
Carrying amount | 28,353 | 9,110 | 28,353 | 9,110 | $ 20,863 |
Amortization of intangible assets | $ 952 | $ 446 | $ 1,743 | $ 891 |
Intangible Assets (Carrying and
Intangible Assets (Carrying and Fair Value of MSRs) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Net carrying value, fair value of MSRs and loans Corporation servicing for others | |||
Loans serviced for others that have servicing rights capitalized | $ 2,193,067 | $ 2,093,140 | $ 871,158 |
Mortgage servicing rights [Member] | |||
Net carrying value, fair value of MSRs and loans Corporation servicing for others | |||
Net carrying value of MSRs | 12,307 | 12,217 | 3,344 |
Fair value of MSRs | $ 16,602 | $ 14,979 | $ 6,433 |
Intangible Assets (Activity for
Intangible Assets (Activity for Capitalized MSRs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Capitalized MSRs [Roll Forward] | ||||
Balance at beginning of period | $ 33,080 | |||
Amortization | (3,787) | $ (1,391) | ||
Balance at end of period | $ 41,201 | $ 12,454 | 41,201 | 12,454 |
Mortgage servicing rights [Member] | ||||
Capitalized MSRs [Roll Forward] | ||||
Balance at beginning of period | 11,583 | 3,316 | 12,217 | 3,423 |
Acquired in Monarch acquisition | 1,284 | 0 | 1,284 | 0 |
Additions | 415 | 278 | 815 | 421 |
Amortization | (1,175) | (250) | (2,209) | (500) |
Change in Valuation Allowance for Impairment of MSRs | (200) | 0 | (200) | 0 |
Balance at end of period | $ 12,307 | $ 3,344 | $ 12,307 | $ 3,344 |
Intangible Assets (Textual) (De
Intangible Assets (Textual) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2015 | May. 31, 2015 | Apr. 01, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 285,512 | $ 180,128 | $ 120,164 | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 10 years | ||||
Intangible Assets (Textual) [Abstract] | |||||
Impairment valuation allowance | $ 0 | 200 | 0 | ||
Core deposit intangible assets [Member] | |||||
Estimated Future Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
2,015 | 2,400 | ||||
2,016 | 4,300 | ||||
2,017 | 3,700 | ||||
2,018 | 3,500 | ||||
2,019 | 3,300 | ||||
2020 and thereafter | 11,200 | ||||
Mortgage servicing rights [Member] | |||||
Intangible Assets (Textual) [Abstract] | |||||
Impairment valuation allowance | $ 0 | $ 200 | $ 0 | ||
Lake Michigan Financial Corp [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 100,002 | ||||
Core deposit intangible assets acquired, business combination | $ 7,303 | ||||
Monarch Community Bancorp [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 5,383 | ||||
Core deposit intangible assets acquired, business combination | $ 1,930 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Components of accumulated other comprehensive loss, net of related tax benefit/expense | |||
Net unrealized gains (losses) on investment securities – available-for-sale, net of related tax expense (benefit) of $(148) at June 30, 2015, $(113) at December 31, 2014 and $431 at June 30, 2014 | $ (274) | $ (210) | $ 800 |
Pension and other postretirement benefits adjustment, net of related tax benefit of $16,601 at June 30, 2015, $17,362 at December 31, 2014 and $10,117 at June 30, 2014 | (30,830) | (32,243) | (18,788) |
Accumulated other comprehensive loss | $ (31,104) | $ (32,453) | $ (17,988) |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Loss (Textual) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Accumulated Other Comprehensive Loss (Textual) [Abstract] | |||
Net unrealized gains (losses) on investment securities-available-for-sale, tax expense (benefit) | $ (148) | $ (113) | $ 431 |
Pension and other postretirement benefits adjustment, tax benefit | $ 16,601 | $ 17,362 | $ 10,117 |
Borrowings Schedule of Short-te
Borrowings Schedule of Short-term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Schedule of Short-Term Borrowings [Abstract] | |||
Securities sold under repurchase agreements with customers | $ 305,291 | $ 304,467 | $ 293,422 |
Federal Home Loan Bank Advances, Short Term | 205,000 | 60,000 | 0 |
Federal Funds Purchased | 22,000 | 25,000 | 12,000 |
Short-term borrowings | $ 532,291 | $ 389,467 | $ 305,422 |
Borrowings Schedule of Other Bo
Borrowings Schedule of Other Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Schedule of Other Borrowings [Abstract] | |||
Long-term Federal Home Loan Bank Advances | $ 81,469 | $ 0 | $ 0 |
Securities Sold under Agreements to Repurchase | 23,649 | 0 | 0 |
nonrevolving line of credit | 25,000 | 0 | 0 |
Subordinated Debt | 18,372 | 0 | 0 |
Other Borrowings | $ 148,490 | $ 0 | $ 0 |
Borrowings Textuals (Details)
Borrowings Textuals (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2015 | May. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Borrowings [Line Items] | ||||
Maximum original maturity term of short-term borrowings | 30 days | |||
Long-term Federal Home Loan Bank Advances | $ 81,469,000 | $ 0 | $ 0 | |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 1.33% | |||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 1,240,000,000 | |||
Federal Home Loan Bank, Advances, Maturities Summary, Due Remainder of Current Year | 100,000 | |||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two | 7,100,000 | |||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Three | 47,100,000 | |||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Four | 17,100,000 | |||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Five | 100,000 | |||
Federal Home Loan Bank, Advances, Maturities Summary, Floating Rate, after Five Years | 10,000,000 | |||
Securities Sold under Agreements to Repurchase | 23,649,000 | 0 | 0 | |
Securities Sold Under Agreements to Repurchase, Maturities Summary, Due Remainder of Current Year | 3,200,000 | |||
Securities Sold Under Agreements to Repurchase, Maturities, Due in Year Two | 8,300,000 | |||
Securities Sold Under Agreements to Repurchase, Maturities, Due in Year Three | 12,100,000 | |||
nonrevolving line of credit | $ 25,000,000 | 0 | 0 | |
Line of Credit Facility, Interest Rate at Period End | 2.134% | |||
Trust Preferred Investment Security of Non Public Bank Company | $ 10,000,000 | 10,000,000 | 10,000,000 | |
subordinated debt par value | $ 1,000 | |||
Subordinated Debt | 18,372,000 | $ 0 | $ 0 | |
Lake Michigan Financial Corp [Member] | ||||
Borrowings [Line Items] | ||||
Long-term Federal Home Loan Bank Advances | 81,500,000 | |||
Securities Sold under Agreements to Repurchase | $ 23,700,000 | |||
LMFCTI [Member] | ||||
Borrowings [Line Items] | ||||
Subordinated Debt | $ 10,300,000 | |||
Subordinated Borrowing, Minimum Interest Rate plus LIBOR | 3.45% | |||
Subordinated Borrowing, Interest Rate, Effective Percentage | 3.73% | |||
LMFCTII [Member] | ||||
Borrowings [Line Items] | ||||
Subordinated Debt | $ 8,200,000 | |||
Subordinated Borrowing, Minimum Interest Rate plus LIBOR | 2.70% | |||
Subordinated Borrowing, Interest Rate, Effective Percentage | 2.98% |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Risk weighted assets | $ 6,990,000 | $ 5,700,000 | $ 4,900,000 |
Chemical Financial Corporation [Member] | |||
Total Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | 816,595 | 705,130 | 748,332 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | $ 559,273 | $ 456,302 | $ 391,911 |
Actual, Ratio | 11.70% | 12.40% | 15.30% |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Tier 1 Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 741,654 | $ 633,779 | $ 686,892 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | $ 419,455 | $ 228,151 | $ 195,955 |
Actual, Ratio | 10.60% | 11.10% | 14.00% |
Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | 4.00% | 4.00% |
Common Equity Tier One Risk Based Capital | $ 723,654 | ||
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 10.40% | ||
Common Equity Tier One Risk Based Capital for Capital Adequacy | $ 314,591 | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Leverage Ratio: | |||
Actual, Capital Amount | $ 741,654 | $ 633,779 | $ 686,892 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | $ 314,344 | $ 273,226 | $ 244,757 |
Actual, Ratio | 9.40% | 9.30% | 11.20% |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Chemical Bank [Member] | |||
Total Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 713,999 | $ 654,031 | $ 601,561 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 471,422 | 455,633 | 391,305 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 589,277 | $ 569,541 | $ 489,131 |
Actual, Ratio | 12.10% | 11.50% | 12.30% |
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | 8.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | 10.00% | 10.00% |
Tier 1 Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 640,324 | $ 582,783 | $ 540,214 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 353,566 | 227,816 | 195,653 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 471,422 | $ 341,725 | $ 293,479 |
Actual, Ratio | 10.90% | 10.20% | 11.00% |
Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | 4.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | 6.00% | 6.00% |
Common Equity Tier One Risk Based Capital | $ 640,324 | ||
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 10.90% | ||
Common Equity Tier One Risk Based Capital for Capital Adequacy | $ 265,175 | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Common Equity Tier One Risk Based Capital to be Well Capitalized | $ 383,030 | ||
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets | 6.50% | ||
Leverage Ratio: | |||
Actual, Capital Amount | $ 640,324 | $ 582,783 | $ 540,214 |
Minimum Required for Capital Adequacy Purposes, Capital Amount | 300,703 | 273,048 | 244,604 |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 375,878 | $ 341,310 | $ 305,755 |
Actual, Ratio | 8.50% | 8.50% | 8.80% |
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | 4.00% |
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | 5.00% | 5.00% |
The Bank of Holland [Member] | |||
Total Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 72,506 | ||
Minimum Required for Capital Adequacy Purposes, Capital Amount | 61,028 | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 76,285 | ||
Actual, Ratio | 9.50% | ||
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | ||
Tier 1 Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 72,506 | ||
Minimum Required for Capital Adequacy Purposes, Capital Amount | 45,771 | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 61,028 | ||
Actual, Ratio | 9.50% | ||
Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | ||
Common Equity Tier One Risk Based Capital | $ 72,506 | ||
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 9.50% | ||
Common Equity Tier One Risk Based Capital for Capital Adequacy | $ 34,328 | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Common Equity Tier One Risk Based Capital to be Well Capitalized | $ 49,585 | ||
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets | 6.50% | ||
Leverage Ratio: | |||
Actual, Capital Amount | $ 72,506 | ||
Minimum Required for Capital Adequacy Purposes, Capital Amount | 30,710 | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 38,388 | ||
Actual, Ratio | 9.40% | ||
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% | ||
The Bank of Northern Michigan [Member] | |||
Total Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 32,779 | ||
Minimum Required for Capital Adequacy Purposes, Capital Amount | 25,878 | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 32,347 | ||
Actual, Ratio | 10.10% | ||
Minimum Required for Capital Adequacy Purposes, Ratio | 8.00% | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 10.00% | ||
Tier 1 Capital to Risk-Weighted Assets: | |||
Actual, Capital Amount | $ 32,779 | ||
Minimum Required for Capital Adequacy Purposes, Capital Amount | 19,408 | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 25,878 | ||
Actual, Ratio | 10.10% | ||
Minimum Required for Capital Adequacy Purposes, Ratio | 6.00% | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 8.00% | ||
Common Equity Tier One Risk Based Capital | $ 32,779 | ||
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 10.10% | ||
Common Equity Tier One Risk Based Capital for Capital Adequacy | $ 14,556 | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Common Equity Tier One Risk Based Capital to be Well Capitalized | $ 21,025 | ||
Common Equity Tier One Risk Based Capital Required to Be Well Capitalized to Risk Weighted Assets | 6.50% | ||
Leverage Ratio: | |||
Actual, Capital Amount | $ 32,779 | ||
Minimum Required for Capital Adequacy Purposes, Capital Amount | 14,421 | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Capital Amount | $ 18,026 | ||
Actual, Ratio | 9.10% | ||
Minimum Required for Capital Adequacy Purposes, Ratio | 4.00% | ||
Required to be Well Capitalized Under Prompt Corrective Action Regulations, Ratio | 5.00% |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Assets on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | $ 685,706 | $ 748,864 | $ 615,975 |
Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 685,706 | 748,864 | 615,975 |
Loans Held-for-sale | 7,798 | 9,128 | 6,329 |
Total assets measured at fair value on a recurring basis | 693,504 | 757,992 | 622,304 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 8,294 | 8,259 | 0 |
Loans Held-for-sale | 0 | 0 | 0 |
Total assets measured at fair value on a recurring basis | 8,294 | 8,259 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 677,412 | 740,605 | 615,975 |
Loans Held-for-sale | 7,798 | 9,128 | 6,329 |
Total assets measured at fair value on a recurring basis | 685,210 | 749,733 | 622,304 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Loans Held-for-sale | 0 | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 | 0 |
US Treasury Securities [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 8,294 | 8,259 | |
US Treasury Securities [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 8,294 | 8,259 | |
US Treasury Securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 8,294 | 8,259 | |
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | |
US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | |
Government sponsored agencies [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 227,907 | 263,503 | 88,708 |
Government sponsored agencies [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 227,907 | 263,503 | 88,708 |
Government sponsored agencies [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Government sponsored agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 227,907 | 263,503 | 88,708 |
Government sponsored agencies [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
State and political subdivisions [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 26,965 | 46,227 | 41,608 |
State and political subdivisions [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 26,965 | 46,227 | 41,608 |
State and political subdivisions [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 26,965 | 46,227 | 41,608 |
State and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Residential mortgage-backed securities [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 212,669 | 239,807 | 265,368 |
Residential mortgage-backed securities [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 212,669 | 239,807 | 265,368 |
Residential mortgage-backed securities [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Residential mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 212,669 | 239,807 | 265,368 |
Residential mortgage-backed securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Collateralized mortgage obligations [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 167,032 | 144,383 | 153,283 |
Collateralized mortgage obligations [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 167,032 | 144,383 | 153,283 |
Collateralized mortgage obligations [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Collateralized mortgage obligations [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 167,032 | 144,383 | 153,283 |
Collateralized mortgage obligations [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Corporate bonds [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 39,678 | 45,095 | 65,352 |
Corporate bonds [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 39,678 | 45,095 | 65,352 |
Corporate bonds [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Corporate bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 39,678 | 45,095 | 65,352 |
Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Preferred stock [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 3,161 | 1,590 | 1,656 |
Preferred stock [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 3,161 | 1,590 | 1,656 |
Preferred stock [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 0 | 0 | 0 |
Preferred stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | 3,161 | 1,590 | 1,656 |
Preferred stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value Measurements Recurring [Member] | |||
Summary of assets measured at fair value on a recurring basis | |||
Available-for-sale, at fair value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Fair70
Fair Value Measurements (Fair Value of Assets on a Nonrecurring Basis) (Details) - Fair Value Measurements Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | $ 38,714 | $ 44,219 | $ 40,181 |
Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 38,714 | 44,219 | 40,181 |
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 | 24,517 | 21,323 | 29,789 |
Impaired originated loans [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Impaired originated loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Impaired originated loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 24,517 | 21,323 | 29,789 |
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 | 14,197 | 14,205 | 10,392 |
Other real estate/repossessed assets [Member] | Quoted Prices In Active Markets for Identical Assets (Level 1) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Other real estate/repossessed assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | 0 |
Other real estate/repossessed assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Summary of assets measured at fair value on a nonrecurring basis | |||
Total assets measured at fair value on a nonrecurring basis | $ 14,197 | 14,205 | $ 10,392 |
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 (Schedu
Fair Value Measurements (Schedule of Carrying Amounts and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment securities: | |||
Available-for-sale | $ 685,706 | $ 748,864 | $ 615,975 |
Held-to-maturity | 466,578 | 315,740 | 303,961 |
Carrying Amount [Member] | |||
Investment securities: | |||
Nonmarketable equity securities | 36,142 | 27,369 | 25,572 |
Carrying Amount [Member] | Level 1[Member] | |||
Assets: | |||
Cash and cash equivalents | 215,034 | 183,020 | 140,294 |
Investment securities: | |||
Available-for-sale | 8,294 | 8,259 | 0 |
Carrying Amount [Member] | Level 2 [Member] | |||
Investment securities: | |||
Available-for-sale | 677,412 | 740,605 | 615,975 |
Held-to-maturity | 469,337 | 305,913 | 297,630 |
Loans Held-for-sale | 7,798 | 9,128 | 6,329 |
Interest receivable | 21,668 | 17,492 | 15,827 |
Liabilities: | |||
Deposits without defined maturities | 5,547,764 | 4,741,024 | 3,814,013 |
Interest payable | 1,557 | 755 | 735 |
Short-term borrowings, fair value disclosure | 532,291 | 389,467 | 305,422 |
Other Liabilities, Fair Value Disclosure | 106,469 | 0 | 0 |
Carrying Amount [Member] | Level 3 [Member] | |||
Investment securities: | |||
Held-to-maturity | 500 | 10,500 | 10,500 |
Net loans | 6,959,802 | 5,612,547 | 4,821,011 |
Liabilities: | |||
Time deposits | 1,745,215 | 1,337,947 | 1,278,900 |
Other Liabilities, Fair Value Disclosure | 42,021 | 0 | 0 |
Fair Value [Member] | |||
Investment securities: | |||
Nonmarketable equity securities | 36,142 | 27,369 | 25,572 |
Fair Value [Member] | Level 1[Member] | |||
Assets: | |||
Cash and cash equivalents | 215,034 | 183,020 | 140,294 |
Investment securities: | |||
Available-for-sale | 8,294 | 8,259 | 0 |
Fair Value [Member] | Level 2 [Member] | |||
Investment securities: | |||
Available-for-sale | 677,412 | 740,605 | 615,975 |
Held-to-maturity | 466,278 | 308,650 | 297,186 |
Loans Held-for-sale | 7,798 | 9,128 | 6,329 |
Interest receivable | 21,668 | 17,492 | 15,827 |
Liabilities: | |||
Deposits without defined maturities | 5,547,764 | 4,741,024 | 3,814,013 |
Interest payable | 1,557 | 755 | 735 |
Short-term borrowings, fair value disclosure | 532,291 | 389,467 | 305,422 |
Other Liabilities, Fair Value Disclosure | 106,469 | 0 | 0 |
Fair Value [Member] | Level 3 [Member] | |||
Investment securities: | |||
Held-to-maturity | 300 | 7,090 | 6,775 |
Net loans | 6,969,655 | 5,623,454 | 4,826,672 |
Liabilities: | |||
Time deposits | 1,745,215 | 1,340,015 | 1,285,992 |
Other Liabilities, Fair Value Disclosure | $ 42,021 | $ 0 | $ 0 |
Fair Value Measurements (Textua
Fair Value Measurements (Textual) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Fair Value Measurements (Textual) [Abstract] | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Valuation Allowance on Mortgage Servicing Rights | 0 | 200 | 0 |
Impairment identified for intangible assets | 0 | 0 | |
Core deposit intangible assets [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Impairment identified for intangible assets | $ 0 | 0 | 0 |
Maximum [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Expected life of intangible assets | 15 years | ||
Minimum [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Expected life of intangible assets | 10 years | ||
Total Impaired Loans [Member] | Maximum [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Percentage of discount factors used to determine fair value | 80.00% | ||
Total Impaired Loans [Member] | Minimum [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Percentage of discount factors used to determine fair value | 70.00% | ||
Other Real Estate and Repossessed Assets [Member] | Maximum [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Percentage of discount factors used to determine fair value | 75.00% | ||
Other Real Estate and Repossessed Assets [Member] | Minimum [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Percentage of discount factors used to determine fair value | 70.00% | ||
Fair Value Measurements Recurring [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Liabilities recorded at fair value | $ 0 | 0 | 0 |
Fair Value Measurements Nonrecurring [Member] | |||
Fair Value Measurements (Textual) [Abstract] | |||
Liabilities recorded at fair value | $ 0 | $ 0 | $ 0 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator and denominator of the basic and diluted earnings per common share computations | ||||
Numerator for both basic and diluted earnings per common share, net income | $ 19,024 | $ 16,236 | $ 36,859 | $ 30,049 |
Denominator for basic earnings per common share, weighted average common shares outstanding | 35,162,000 | 30,068,000 | 33,992,000 | 29,947,000 |
Weighted average common stock equivalents | 235,000 | 211,000 | 235,000 | 212,000 |
Denominator for diluted earnings per common share | 35,397,000 | 30,279,000 | 34,227,000 | 30,159,000 |
Basic earnings per common share (dollars per share) | $ 0.54 | $ 0.54 | $ 1.08 | $ 1 |
Diluted earnings per common share (dollars per share) | $ 0.54 | $ 0.54 | $ 1.08 | $ 1 |
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 | 80,700 | 249,150 | 100,875 | 252,529 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Activity) (Details) - Jun. 30, 2015 - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average fair value of options granted | $ 8.40 |
Stock Options [Member] | Non Vested [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, Number of Options | 432,199 |
Granted, Number of Options | 244,165 |
Converted, Number of Options from Lake Michigan Acquisition | 0 |
Exercised, Number of Options | 0 |
Vested, Number of Options | (150,224) |
Forfeited/expired, Number of Options | (9,175) |
Ending balance, Number of Options | 516,965 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Beginning balance, Weighted Average Exercise Price | $ 26.75 |
Granted, Weighted Average Exercise Price | 30.18 |
Converted options from Lake Michigan acquisition, Weighted Average Exercise Price | 0 |
Exercised, Weighted Average Exercise Price | 0 |
Vested, Weighted Average Exercise Price | 25.57 |
Forfeited/expired, Weighted Average Exercise Price | 28.21 |
Ending balance, Weighted Average Exercise Price | 28.69 |
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 | 8.30 |
Weighted average fair value of options granted | 8.40 |
Converted options from acquisitions, Wtd Avg Grant Date Fair Value | 0 |
Exercised, Weighted Average Grant Date Fair Value | 0 |
Vested, Weighted Average Grant Date Fair Value | 7.80 |
Forfeited/expired, Weighted Average Grant Date Fair Value | 8.52 |
Ending balance, Weighted average grant date fair value | $ 8.49 |
Stock Options [Member] | Vested & Nonvested [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance, Number of Options | 1,037,311 |
Granted, Number of Options | 244,165 |
Converted, Number of Options from Lake Michigan Acquisition | 132,883 |
Exercised, Number of Options | (216,690) |
Vested, Number of Options | 0 |
Forfeited/expired, Number of Options | (9,175) |
Ending balance, Number of Options | 1,188,494 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Beginning balance, Weighted Average Exercise Price | $ 25.90 |
Granted, Weighted Average Exercise Price | 30.18 |
Converted options from Lake Michigan acquisition, Weighted Average Exercise Price | 12.93 |
Exercised, Weighted Average Exercise Price | 23.99 |
Vested, Weighted Average Exercise Price | 0 |
Forfeited/expired, Weighted Average Exercise Price | 28.21 |
Ending balance, Weighted Average Exercise Price | $ 25.66 |
Stock Options [Member] | Vested [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | |
Exercisable/vested, Number of Options | 671,529 |
Exercisable/vested, Weighted Average Exercise Price | $ 23.32 |
Share-Based Compensation (Black
Share-Based Compensation (Black-Scholes Pricing Model Assumptions) (Details) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Assumptions of Black-Scholes option pricing model | |
Expected dividend yield | 3.50% |
Risk-free interest rate | 1.78% |
Expected stock price volatility | 39.10% |
Expected life of options - in years | 7 years |
Weighted average fair value of options granted | $ 8.40 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Unit Activity) (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock Units (RSUs) [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Number of Shares [Roll Forward] | |
Beginning balance, Number of shares | 204,319 |
Granted, Number of shares | 79,202 |
Converted into shares of common stock, Number of shares | (67,489) |
Forfeited/expired, Number of shares | (1,427) |
Ending balance, Number of shares | 214,605 |
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 | $ 24.14 |
Granted, Weighted Average grant date fair value | 28.25 |
Converted into shares of common stock, Weighted average grant date fair value | 22.32 |
Forfeited/expired, Weighted average grant date fair value | 25.13 |
Ending balance, Weighted average grant date fair value | $ 26.23 |
(Textual) (Details)
(Textual) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Apr. 20, 2015shares | |
Share-Based Compensation Plans (Textual) [Abstract] | |||||
Share-based compensation expense | $ | $ 0.8 | $ 0.6 | $ 1.5 | $ 1.2 | |
Common stock available for future grants under share-based compensation plans | 1,300,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Plans (Textual) [Abstract] | |||||
Corporation granted options to purchase restricted stock performance units | 79,202 | ||||
Unrecognized compensation expense | $ | $ 3.7 | $ 3.7 | |||
Unrecognized compensation expense, period for recognition | 2 years 9 months 18 days | ||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||
Share-Based Compensation Plans (Textual) [Abstract] | |||||
Restricted stock performance units eligible to vest as a multiple of number of units granted | 1.5 | ||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||
Share-Based Compensation Plans (Textual) [Abstract] | |||||
Restricted stock performance units eligible to vest as a multiple of number of units granted | 0.25 | ||||
Equity Option [Member] | |||||
Share-Based Compensation Plans (Textual) [Abstract] | |||||
Common stock available for future grants under share-based compensation plans | 1,295,145 | 1,295,145 | |||
Weighted-average remaining contractual terms for outstanding stock options | 6 years 7 months 6 days | ||||
Weighted-average remaining contractual terms for exercisable stock options | 4 years 9 months 18 days | ||||
Outstanding in-the-money stock options, intrinsic value | $ | $ 6.9 | $ 6.9 | |||
Exercisable in-the-money stock options, intrinsic value | $ | $ 4.7 | $ 4.7 | |||
Closing price of common stock | $ / shares | $ 33.06 | $ 33.06 | |||
Unrecognized compensation expense | $ | $ 4 | $ 4 | |||
Unrecognized compensation expense, period for recognition | 3 years 10 months 24 days | ||||
Vested & Nonvested [Member] | Employee Stock Option [Member] | |||||
Share-Based Compensation Plans (Textual) [Abstract] | |||||
Corporation granted options to purchase common stock | 244,165 | ||||
Converted, Number of Options from Lake Michigan Acquisition | 132,883 |
Pension and Other Postretirem78
Pension and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost (Income)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Pension Plans [Member] | ||||
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ||||
Service cost | $ 273 | $ 251 | $ 545 | $ 501 |
Interest cost | 1,332 | 1,312 | 2,664 | 2,624 |
Expected return on plan assets | (2,161) | (2,079) | (4,322) | (4,157) |
Amortization of prior service cost | (1) | (1) | (2) | (1) |
Amortization of unrecognized net loss (gain) | 1,056 | 569 | 2,112 | 1,138 |
Net periodic benefit cost | 499 | 52 | 997 | 105 |
Postretirement Benefit Plan [Member] | ||||
Components of net periodic benefit cost (income) for the Corporation's qualified and nonqualified pension plans and nonqualified postretirement benefits plan | ||||
Service cost | 4 | 4 | 8 | 9 |
Interest cost | 33 | 36 | 67 | 71 |
Amortization of prior service cost | 32 | 33 | 65 | 65 |
Amortization of unrecognized net loss (gain) | 0 | (26) | (1) | (52) |
Net periodic benefit cost | $ 69 | $ 47 | $ 139 | $ 93 |
Pension and Other Postretirem79
Pension and Other Postretirement Benefit Plans (Textual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Contribution to corporation's pension plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit pension plan | $ 0 | $ 0 | ||
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.15% | |||
Multi-Employer Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to defined benefit pension plan | $ 0 | |||
Chemical Financial Corporation [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of eligible pay contribution to certain employees | 4.00% | |||
Defined Contribution Plan, Employer Total Contribution Amount | $ 1.3 | $ 1 | $ 2.4 | $ 1.7 |
Financial Guarantees (Textual)
Financial Guarantees (Textual) (Details) - Financial Standby Letter of Credit [Member] - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Financial Guarantees (Textual) [Abstract] | |||
Letters of credit outstanding | $ 45 | $ 41 | $ 37 |
Expiration period for letters of credit, maximum | 5 years |