Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CVBF | ' |
Entity Registrant Name | 'CVB FINANCIAL CORP | ' |
Entity Central Index Key | '0000354647 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 105,824,853 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $106,002 | $88,776 |
Interest-earning balances due from Federal Reserve | 134,054 | 5,917 |
Total cash and cash equivalents | 240,056 | 94,693 |
Interest-earning balances due from depository institutions | 18,314 | 70,000 |
Investment securities available-for-sale, at fair value (with amortized cost of $3,128,869 at September 30, 2014, and $2,679,727 at December 31, 2013) | 3,160,056 | 2,663,642 |
Investment securities held-to-maturity | 1,598 | 1,777 |
Investment in stock of Federal Home Loan Bank (FHLB) | 25,338 | 32,331 |
Non-covered loans held-for-sale | ' | 3,667 |
Loans and lease finance receivables, excluding covered loans | 3,573,885 | 3,385,916 |
Allowance for loan losses | -59,582 | -75,235 |
Net loans and lease finance receivables | 3,514,303 | 3,310,681 |
Covered loans and lease finance receivables, net | 132,351 | 160,315 |
Premises and equipment, net | 34,609 | 32,831 |
Bank owned life insurance | 126,369 | 123,168 |
Accrued interest receivable | 23,459 | 22,051 |
Intangibles | 3,570 | 2,261 |
Goodwill | 74,244 | 55,097 |
FDIC loss sharing asset | 331 | 4,764 |
Non-covered other real estate owned | 6,225 | 6,475 |
Covered other real estate owned | 590 | 504 |
Income taxes | 40,324 | 59,786 |
Other assets | 21,112 | 20,924 |
TOTAL ASSETS | 7,422,849 | 6,664,967 |
Deposits: | ' | ' |
Noninterest-bearing | 3,037,103 | 2,562,980 |
Interest-bearing | 2,722,190 | 2,327,651 |
Total deposits | 5,759,293 | 4,890,631 |
Customer repurchase agreements | 528,824 | 643,251 |
FHLB advances | 199,410 | 199,206 |
Other borrowings | ' | 69,000 |
Accrued interest payable | 1,120 | 1,111 |
Deferred compensation | 10,175 | 9,449 |
Junior subordinated debentures | 25,774 | 25,774 |
Payable for securities purchased | 643 | 3,533 |
Other liabilities | 48,379 | 51,125 |
TOTAL LIABILITIES | 6,573,618 | 5,893,080 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, authorized, 225,000,000 shares without par; issued and outstanding 105,796,853 at September 30, 2014 and 105,370,170 at December 31, 2013. | 494,323 | 491,068 |
Retained earnings | 336,820 | 290,149 |
Accumulated other comprehensive income, net of tax | 18,088 | -9,330 |
Total stockholders' equity | 849,231 | 771,887 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $7,422,849 | $6,664,967 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Amortized cost | $3,128,869 | $2,679,727 |
Common stock, par value | $0 | $0 |
Common stock, authorized | 225,000,000 | 225,000,000 |
Common stock, shares issued | 105,796,853 | 105,370,170 |
Common stock, shares outstanding | 105,796,853 | 105,370,170 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Earnings and Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Loans and leases, including fees | $45,551 | $41,706 | $130,591 | $124,879 |
Accretion on acquired covered loans | 1,372 | 2,947 | 4,546 | 10,796 |
Loans, including fees | 46,923 | 44,653 | 135,137 | 135,675 |
Investment securities: | ' | ' | ' | ' |
Taxable | 12,460 | 7,102 | 34,425 | 19,280 |
Tax-advantaged | 5,227 | 5,517 | 15,691 | 16,569 |
Total investment income | 17,687 | 12,619 | 50,116 | 35,849 |
Dividends from FHLB stock | 518 | 622 | 1,648 | 1,432 |
Federal funds sold | 112 | 58 | 363 | 158 |
Interest-earning deposits with other institutions | 55 | 122 | 309 | 366 |
Total interest income | 65,295 | 58,074 | 187,573 | 173,480 |
Interest expense: | ' | ' | ' | ' |
Deposits | 1,228 | 1,228 | 3,636 | 3,627 |
Borrowings | 2,724 | 2,768 | 8,283 | 8,184 |
Junior subordinated debentures | 105 | 105 | 315 | 512 |
Total interest expense | 4,057 | 4,101 | 12,234 | 12,323 |
Net interest income before provision for loan losses | 61,238 | 53,973 | 175,339 | 161,157 |
Provision for loan losses | -1,000 | -3,750 | -16,100 | -9,950 |
Net interest income after provision for loan losses | 62,238 | 57,723 | 191,439 | 171,107 |
Noninterest income: | ' | ' | ' | ' |
Service charges on deposit accounts | 4,065 | 4,011 | 11,798 | 11,982 |
Trust and investment services | 2,045 | 2,021 | 6,103 | 6,098 |
Bankcard services | 868 | 920 | 2,569 | 2,697 |
BOLI income | 613 | 497 | 1,852 | 1,867 |
Gain on sale of loans held-for-sale | ' | ' | 5,330 | ' |
Gain on sale of securities, net | ' | ' | ' | 2,094 |
Decrease in FDIC loss sharing asset, net | -479 | -3,248 | -3,653 | -10,715 |
Gain (loss) on OREO, net | 127 | -3 | 262 | 3,129 |
Other | 770 | 759 | 2,296 | 2,245 |
Total noninterest income | 8,009 | 4,957 | 26,557 | 19,397 |
Noninterest expense: | ' | ' | ' | ' |
Salaries and employee benefits | 19,366 | 18,389 | 57,170 | 52,777 |
Occupancy and equipment | 4,147 | 3,641 | 11,548 | 10,888 |
Professional services | 2,080 | 1,316 | 5,090 | 4,299 |
Software licenses and maintenance | 1,324 | 1,077 | 3,399 | 3,392 |
Promotion | 1,349 | 1,105 | 3,956 | 3,503 |
Provision for unfunded loan commitments | -1,250 | 500 | -1,250 | 500 |
Amortization of intangible assets | 466 | 127 | 781 | 1,002 |
OREO expense | 102 | 21 | 240 | 384 |
Insurance reimbursements | -24 | -4,139 | -42 | -4,139 |
Acquisition related expenses | 640 | ' | 1,932 | ' |
Other | 4,281 | 3,677 | 12,138 | 12,154 |
Total noninterest expense | 32,481 | 25,714 | 94,962 | 84,760 |
Earnings before income taxes | 37,766 | 36,966 | 123,034 | 105,744 |
Income taxes | 13,471 | 12,727 | 44,594 | 35,424 |
Net earnings | 24,295 | 24,239 | 78,440 | 70,320 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Unrealized (loss) gain on securities arising during the period | -10,291 | 421 | 47,272 | -65,129 |
Less: Reclassification adjustment for net gain on securities included in net income | ' | ' | ' | -2,094 |
Other comprehensive (loss) income, before tax | -10,291 | 421 | 47,272 | -67,223 |
Less: Income tax benefit (expense) related to items of other comprehensive (loss) income | 4,322 | -176 | -19,854 | 28,234 |
Net change, After-Tax | -5,969 | 245 | 27,418 | -38,989 |
Comprehensive income | $18,326 | $24,484 | $105,858 | $31,331 |
Basic earnings per common share | $0.23 | $0.23 | $0.74 | $0.67 |
Diluted earnings per common share | $0.23 | $0.23 | $0.74 | $0.67 |
Cash dividends declared per common share | $0.10 | $0.10 | $0.30 | $0.28 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
In Thousands | ||||
Beginning balance at Dec. 31, 2012 | $762,970 | $484,709 | $235,010 | $43,251 |
Beginning balance, shares at Dec. 31, 2012 | ' | 104,890 | ' | ' |
Repurchase of common stock | -459 | -459 | ' | ' |
Repurchase of common stock, shares | ' | -36 | ' | ' |
Exercise of stock options | 2,651 | 2,651 | ' | ' |
Exercise of stock options, shares | ' | 259 | ' | ' |
Tax benefit from exercise of stock options | 215 | 215 | ' | ' |
Shares issued pursuant to stock-based compensation plan | 1,439 | 1,439 | ' | ' |
Shares issued pursuant to stock-based compensation plan, shares | ' | 97 | ' | ' |
Cash dividends declared | -29,925 | ' | -29,925 | ' |
Net earnings | 70,320 | ' | 70,320 | ' |
Other comprehensive income (loss), net of tax | -38,989 | ' | ' | -38,989 |
Ending balance at Sep. 30, 2013 | 768,222 | 488,555 | 275,405 | 4,262 |
Ending balance, shares at Sep. 30, 2013 | ' | 105,210 | ' | ' |
Beginning balance at Dec. 31, 2013 | 771,887 | 491,068 | 290,149 | -9,330 |
Beginning balance, shares at Dec. 31, 2013 | ' | 105,370 | ' | ' |
Repurchase of common stock | -5,383 | -5,383 | ' | ' |
Repurchase of common stock, shares | ' | -377 | ' | ' |
Exercise of stock options | 5,378 | 5,378 | ' | ' |
Exercise of stock options, shares | ' | 498 | ' | ' |
Tax benefit from exercise of stock options | 983 | 983 | ' | ' |
Shares issued pursuant to stock-based compensation plan | 2,277 | 2,277 | ' | ' |
Shares issued pursuant to stock-based compensation plan, shares | ' | 306 | ' | ' |
Cash dividends declared | -31,769 | ' | -31,769 | ' |
Net earnings | 78,440 | ' | 78,440 | ' |
Other comprehensive income (loss), net of tax | 27,418 | ' | ' | 27,418 |
Ending balance at Sep. 30, 2014 | $849,231 | $494,323 | $336,820 | $18,088 |
Ending balance, shares at Sep. 30, 2014 | ' | 105,797 | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Cash dividends per common share | $0.10 | $0.10 | $0.30 | $0.28 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Interest and dividends received | $193,605 | $181,608 |
Service charges and other fees received | 22,653 | 23,103 |
Interest paid | -12,120 | -12,506 |
Net cash paid to vendors and employees | -92,766 | -69,441 |
Income taxes paid | -44,000 | -50,200 |
(Payments to) proceeds from FDIC loss share agreement | -1,186 | 239 |
Net cash provided by operating activities | 66,186 | 72,803 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Proceeds from redemption of FHLB stock | 10,413 | 17,231 |
Proceeds from maturity of interest-earning balances from depository institutions | 62,491 | ' |
Proceeds from sale of investment securities | 14,271 | 99,155 |
Proceeds from repayment of investment securities | 238,495 | 344,660 |
Proceeds from maturity of investment securities | 63,216 | 62,175 |
Purchases of investment securities | -738,882 | -759,609 |
Net decrease in loan and lease finance receivables | 101,432 | 13,375 |
Proceeds from sales of premises and equipment | 663 | 9 |
Purchase of premises and equipment | -1,668 | -2,080 |
Proceeds from sales of other real estate owned | 2,588 | 12,922 |
Cash acquired on purchase of American Security Bank, net of cash paid | 50,038 | ' |
Net cash used in investing activities | -196,943 | -212,162 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Net increase in transaction deposits | 492,720 | 147,349 |
Net decrease in time deposits | -2,433 | -25,850 |
Repayment of junior subordinated debentures | ' | -41,238 |
Net decrease in other borrowings | -69,000 | 16,482 |
Net (decrease) increase in customer repurchase agreements | -114,427 | 92,639 |
Cash dividends on common stock | -31,718 | -19,419 |
Repurchase of common stock | -5,383 | -459 |
Proceeds from exercise of stock options | 5,378 | 2,651 |
Tax benefit related to exercise of stock options | 983 | 215 |
Net cash provided by financing activities | 276,120 | 172,370 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 145,363 | 33,011 |
CASH AND CASH EQUIVALENTS, beginning of period | 94,693 | 98,431 |
CASH AND CASH EQUIVALENTS, end of period | 240,056 | ' |
RECONCILIATION OF NET EARNINGS TO NET CASH PROVIDED BY OPERATING ACTIVITIES | ' | ' |
Net earnings | 78,440 | 70,320 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' |
Gain on sale of loans held-for-sale | -5,330 | ' |
Gain on sale of investment securities | ' | -2,094 |
Loss on sale of premises and equipment, net | 68 | 2 |
Gain on sale of other real estate owned | -222 | -3,048 |
Amortization of capitalized prepayment penalty on borrowings | 204 | 204 |
Increase in bank owned life insurance | -1,757 | -1,805 |
Net amortization of premiums and discounts on investment securities | 15,515 | 20,770 |
Accretion of SJB discount | -4,546 | -10,796 |
Provision for loan losses | -16,100 | -9,950 |
Provision for unfunded loan commitments | -1,250 | 500 |
Valuation adjustment on other real estate owned | 65 | 87 |
Change in FDIC loss share asset | 3,653 | 10,715 |
(Payments to) proceeds from FDIC loss share agreement | -1,186 | 239 |
Stock-based compensation | 2,277 | 1,439 |
Depreciation and amortization, net | 488 | 2,029 |
Change in accrued interest receivable | -684 | 495 |
Change in accrued interest payable | -36 | -387 |
Change in other assets and liabilities | -3,413 | -5,917 |
Total adjustments | -12,254 | 2,483 |
Net cash provided by operating activities | 66,186 | 72,803 |
Net cash used in investing activities | -196,943 | -212,162 |
Net cash provided by financing activities | 276,120 | 172,370 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 145,363 | 33,011 |
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING ACTIVITIES | ' | ' |
Securities purchased and not settled | 643 | ' |
Transfer of loans to other real estate owned | $640 | $1,492 |
Business
Business | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Business | ' |
1. BUSINESS | |
The condensed consolidated financial statements include the accounts of CVB Financial Corp. (referred to herein on an unconsolidated basis as “CVB” and on a consolidated basis as “we,” “our” or the “Company”) and its wholly owned subsidiaries: Citizens Business Bank (the “Bank” or “CBB”) after elimination of all intercompany transactions and balances. The Company has one inactive subsidiary, Chino Valley Bancorp. The Company is also the common stockholder of CVB Statutory Trust III. CVB Statutory Trust III was created in January 2006 to issue trust preferred securities in order to raise capital for the Company. In accordance with ASC 810 Consolidation (previously Financial Accounting Standards Board (“FASB”) Interpretation No. 46R “Consolidation of Variable Interest Entities”), this trust does not meet the criteria for consolidation. | |
The Company’s primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money through the operations of the Bank. The Bank also provides automobile and equipment leasing to customers through its Citizens Financial Services Group and trust and investment-related services to customers through its CitizensTrust Division. The Bank’s customers consist primarily of small to mid-sized businesses and individuals located in San Bernardino County, Riverside County, Los Angeles County, Orange County, San Diego County, Madera County, Fresno County, Tulare County and Kern County, California. The Bank operates 40 Business Financial Centers, six Commercial Banking Centers, and three trust office locations. The Company is headquartered in the city of Ontario, California. | |
On May 15, 2014, we announced the completion of our acquisition of American Security Bank (“ASB”), a Newport Beach, CA headquartered regional bank with approximately $433 million in total assets and five branch locations throughout Orange County, San Bernardino County, and Los Angeles County. Our condensed consolidated financial statements for 2014 include ASB operations, post-merger. In the latter half of the third quarter of 2014, we converted the ASB core operating system into the CBB application infrastructure, consolidated two branch locations, and closed two electronic banking vestibules. See Note 4—Business Combinations, included herein. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
2. BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for Form 10-Q and conform to practices within the banking industry and include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting. The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments), which are necessary for a fair presentation of financial results for the interim periods presented. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results for the full year. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements, accounting policies and financial notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, filed with the Securities and Exchange Commission. A summary of the significant accounting policies consistently applied in the preparation of the accompanying unaudited condensed consolidated financial statements follows. | |
Reclassification – Certain amounts in the prior periods’ condensed consolidated financial statements and related footnote disclosures have been reclassified to conform to the current presentation with no impact on previously reported net income or stockholders’ equity. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Investment Securities — The Company classifies as held-to-maturity those debt securities that the Company has the positive intent and ability to hold to maturity. Securities classified as trading are those securities that are bought and held principally for the purpose of selling them in the near term. All other debt and equity securities are classified as available-for-sale. Securities held-to-maturity are accounted for at cost and adjusted for amortization of premiums and accretion of discounts. Trading securities are accounted for at fair value with the unrealized gains and losses being included in current earnings. Available-for-sale securities are accounted for at fair value, with the net unrealized gains and losses, net of income tax effects, presented as a separate component of stockholders’ equity. Realized gains and losses on sales of securities are recognized in earnings at the time of sale and are determined on a specific-identification basis. Purchase premiums and discounts are recognized in interest income using the effective-yield method over the terms of the securities. For mortgage-backed securities (“MBS”), the amortization or accretion is based on estimated average lives of the securities. The lives of these securities can fluctuate based on the amount of prepayments received on the underlying collateral of the securities. The Company’s investment in the Federal Home Loan Bank of San Francisco (“FHLB”) stock is carried at cost. | ||||
At each reporting date, securities are assessed to determine whether there is an other-than-temporary impairment (“OTTI”). Other-than-temporary impairment on investment securities is recognized in earnings when there are credit losses on a debt security for which management does not intend to sell and for which it is more-likely-than-not that the Company will not have to sell prior to recovery of the noncredit impairment. In those situations, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the debt security’s amortized cost and its fair value would be included in other comprehensive income. | ||||
Loans and Lease Finance Receivables — Non-covered loans and lease finance receivables that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, less deferred net loan origination fees and purchase price discounts. In the ordinary course of business, the Company enters into commitments to extend credit to its customers. To the extent that such commitments are unfunded, the related unfunded amounts are not reflected in the accompanying condensed consolidated financial statements. | ||||
The Company receives collateral to support loans, lease finance receivables, and commitments to extend credit for which collateral is deemed necessary. The most significant categories of collateral are real estate, principally commercial and industrial income-producing properties, real estate mortgages, and assets utilized in dairy & livestock and agribusiness, and various personal property assets utilized in commercial and industrial business governed by the Uniform Commercial Code. | ||||
Nonrefundable fees and direct costs associated with the origination or purchase of non-covered loans are deferred and netted against outstanding loan balances. The deferred net loan fees and costs and purchase price discounts are recognized in interest income over the loan term using the effective-yield method. | ||||
Interest on non-covered loans and lease finance receivables is credited to income based on the principal amounts of such loans or receivables outstanding. Non-covered loans are considered delinquent when principal or interest payments are past due 30 days or more and generally remain on accrual status between 30 and 89 days past due. Interest income is not recognized on non-covered loans and lease finance receivables when collection of interest is deemed by management to be doubtful. Non-covered loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. In general, the accrual of interest on non-covered loans is discontinued when the loan becomes 90 days past due, or when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered in determining that the full collection of principal and interest is no longer probable include cash flow and liquidity of the borrower or property, the financial position of the guarantors and their willingness to support the loan as well as other factors, and this determination involves significant judgment. When an asset is placed on nonaccrual status, previously accrued but unpaid interest is reversed against income. Subsequent collections of cash are applied as reductions to the principal balance unless the loan is returned to accrual status. Interest is not recognized using a cash-basis method. Nonaccrual loans may be restored to accrual status when principal and interest become current and when the borrower is able to demonstrate payment performance for a sustained period, typically for six months. A nonaccrual loan may return to accrual status sooner based on other significant events or mitigating circumstances. This policy is consistently applied to all classes of non-covered financing receivables. | ||||
Troubled Debt Restructurings — Loans are reported as a Troubled Debt Restructuring (“TDR”) if the Company for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Types of modifications that may be considered concessions, which in turn result in a TDR include, but are not limited to, (i) a reduction of the stated interest rate for the remaining original life of the debt, (ii) an extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk, (iii) a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement, or (iv) a reduction of interest. As a result of these concessions, restructured loans are considered impaired, and the measurement of impairment is based on the Company’s policy for impaired loans. In addition, the Company may provide a concession to the debtor where it offers collateral and the value of such collateral is significant in proportion to the nature of the concession requested, and it substantially reduces the Company’s risk of loss. In such cases, these modifications are not considered a TDR as, in substance, no concession was made as a result of the significant additional collateral obtained. | ||||
When determining whether or not a loan modification is a TDR under ASC 310-40, the Company evaluates loan modification requests from borrowers experiencing financial difficulties on a case-by-case basis. Any such modifications granted are unique to the borrower’s circumstances. Because of the Company’s focus on the commercial lending sector, each business customer has unique attributes, which in turn means that modifications of loans to those customers are not easily categorized by type, key features, or other terms, but are evaluated individually based on all relevant facts and circumstances pertaining to the modification request and the borrower’s/guarantor’s financial condition at the time of the request. The evaluation of whether or not a borrower is experiencing financial difficulties will include, among other relevant factors considered by the Company, a review of significant factors such as (i)whether the borrower is in default on any of its debt, (ii) whether the borrower is experiencing payment delinquency, (iii) whether the global cash flows of the borrower and the owner guarantor(s) of the borrower have diminished below what is necessary to service existing debt obligations, (iv) whether the borrowers’ forecasted cash flows will be insufficient to service the debt in future periods or in accordance with the contractual terms of the existing agreement through maturity, (v) whether the borrower is unable to refinance the subject debt from other financing sources with similar terms, and (vi) whether the borrower is in jeopardy as a going-concern and/or considering bankruptcy. In any case, the debtor is presumed to be experiencing financial difficulties if the Company determines it is probable the debtor will default on the original loan if the modification is not granted. | ||||
The types of loans subject to modification vary greatly, but during the subject period are concentrated in commercial and industrial loans, dairy and agricultural loans, and term loans to commercial real estate investors. Some examples of key features include payment deferrals and delays, interest rate reductions, and extensions or renewals where the contract rate may or may not be below the market rate of interest for debt with similar characteristics as those of the modified debt. The typical length of the modified terms ranges from three (3) to twelve (12) months; however, all actual modified terms will depend on the facts, circumstances and attributes of the specific borrower requesting a modification. In general, after a careful evaluation of all relevant facts and circumstances taken together, including the nature of any concession, certain modification requests will result in troubled debt restructurings while certain other modifications will not, pursuant to the criteria and judgments as discussed throughout this report. In certain cases, modification requests for delays or deferrals of principal were evaluated and determined to be exempt from TDR reporting because they constituted insignificant delays under ASC 310-40-15. | ||||
In situations where the Company has determined that the borrower is experiencing financial difficulties and is evaluating whether a concession is insignificant, and therefore does not result in a troubled debt restructuring, such analysis is based on an evaluation of both the amount and the timing of the restructured payments, including the following factors: | ||||
1 | Whether the amount of the restructured payments subject to delay is insignificant relative to the unpaid principal balance or collateral value of the debt and will result in an insignificant shortfall in the contractual amount due; and | |||
2 | The delay is insignificant relative to any of the following: | |||
• | The frequency of payments due; | |||
• | The debt’s original contractual maturity; or | |||
• | The debt’s original expected duration. | |||
Most modified loans not classified and accounted for as troubled debt restructurings were performing and paying as agreed under their original terms in the six-month period immediately preceding a request for modification. Subsequently, these modified loans have continued to perform under the modified terms and deferrals that amounted to insignificant delays, which in turn is supported by the facts and circumstances of each individual customer and loan as described above. Payment performance continues to be monitored once modifications are made. The Company’s favorable experience regarding “re-defaults” under modified terms, or upon return of the loan to its original terms, indicates that such relief may improve ultimate collection and reduces the Company’s risk of loss. | ||||
Impaired Loans — A loan is generally considered impaired when based on current events and information it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan, including a restructured loan, for which there is an insignificant delay relative to the frequency of payments due, and/or the original contractual maturity, is not considered an impaired loan. Generally, impaired loans include loans on nonaccrual status and TDRs. | ||||
The Company’s policy is to record a specific valuation allowance, which is included in the allowance for loan losses, or to charge off that portion of an impaired loan that represents the impairment or shortfall amount as determined utilizing one of the three methods described in ASC 310-10-35-22. Impairment on non-collateral dependent restructured loans is measured by comparing the present value of expected future cash flows on the restructured loans discounted at the interest rate of the original loan agreement to the loan’s carrying value. The impairment amount, if any, is generally charged off and recorded against the allowance for loan losses at the time impairment is measurable and a probable loss is determined. As a result, most of the TDRs have no specific allowance allocated because, consistent with the Company’s stated practice, any impairment is typically charged off in the period in which it is identified. The Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may also measure impairment based on an observable market price for the loan, or the value of the collateral, for collateral dependent loans. Impairment on collateral dependent restructured loans is measured by determining the amount by which our recorded investment in the impaired loan exceeds the fair value of the collateral less estimated selling costs. The fair value is generally determined by one or more appraisals of the collateral, performed by a Company-approved third-party independent appraiser. The majority of impaired loans that are collateral dependent are charged off down to their estimated fair value of the collateral (less selling costs) at each reporting date based on current appraised value. | ||||
Appraisals of the collateral for impaired collateral dependent loans are typically ordered at the time the loan is identified as showing signs of inherent weakness. These appraisals are normally updated at least annually, or more frequently, if there are concerns or indications that the value of the collateral may have changed significantly since the previous appraisal. On an exception basis, a specific valuation allowance is recorded on collateral dependent impaired loans when a current appraisal is not yet available, a recent appraisal is still under review or on single-family mortgage loans if the loans are currently under review for a loan modification. Such valuation allowances are generally based on previous appraisals adjusted for current market conditions, based on preliminary appraisal values that are still being reviewed or for single-family loans under review for modification on an appraisal or indications of comparable home sales from external sources. | ||||
Charge-offs of unsecured consumer loans are recorded when the loan reaches 120 days past due or sooner as circumstances indicate. Except for the charge-offs of unsecured consumer loans, the charge-off policy is applied consistently across all portfolio segments. Impaired single-family mortgage loans that have been modified in accordance with the various government modification programs are also measured based on the present value of the expected cash flows discounted at the loan’s pre-modification interest rate. The Company recognizes the change in present value attributable to the passage of time as interest income on such performing single-family mortgage loans and the amount of interest income recognized to date has been insignificant. | ||||
Provision and Allowance for Loan Losses — The allowance for loan losses is management’s estimate of probable losses inherent in the loan and lease receivables portfolio. The allowance is increased by the provision for losses and decreased by charge-offs when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The determination of the balance in the allowance for loan losses is based on an analysis of the loan and lease finance receivables portfolio using a systematic methodology and reflects an amount that, in management’s judgment, is appropriate to provide for probable loan losses inherent in the portfolio, after giving consideration to the character of the loan portfolio, current economic conditions, past loan loss experience, and such other factors that would deserve current recognition in estimating inherent loan losses. | ||||
There are different qualitative risks for the loans in each portfolio segment. The construction and real estate segments’ predominant risk characteristics are the collateral and the geographic location of the property collateralizing the loan as well as the operating cash flow for commercial real estate properties. The commercial and industrial segments’ predominant risk characteristics are the cash flows of the businesses we lend to, the global cash flows and liquidity of the guarantors of such losses, as well as economic and market conditions. The dairy & livestock segment’s predominant risk characteristics are milk and beef prices in the market as well as the cost of feed and cattle. The municipal lease segment’s predominant risk characteristics are the municipality’s general financial condition and tax revenues or if applicable the specific project related financial condition. The consumer, auto and other segments’ predominant risk characteristics are employment and income levels as they relate to consumers and cash flows of the businesses as they relate to equipment and vehicle leases to businesses. The agribusiness segment’s predominant risk characteristics are the supply and demand conditions of the product, production seasonality, the scale of operations and ability to control costs, the availability and cost of water, and operator experience. | ||||
The Company’s methodology is consistently applied across all portfolio segments taking into account the applicable historical loss rates and the qualitative factors applicable to each pool of loans. A key factor in the Company’s methodology is the loan risk rating (Pass, Special Mention, Substandard, Doubtful and Loss). Loan risk ratings are updated as facts related to the loan or borrower become available. In addition, all term loans in excess of $1.0 million are subject to an annual internal credit review process where all factors underlying the loan, borrower and guarantors are subject to review which may result in changes to the loan’s risk rating. Periodically, we assess various attributes utilized in adjusting our historical loss factors to reflect our view of current economic conditions. The estimate is reviewed quarterly by the Board of Directors and management and periodically by various regulatory agencies and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. | ||||
Our methodology for assessing the appropriateness of the allowance is conducted on a regular basis and considers the Bank’s overall loan portfolio. The Bank’s methodology consists of two major phases. | ||||
In the first phase, individual loans are reviewed to identify loans for impairment and, if impaired, whether they are collateral-dependent loans. Impairment is measured based on the Company’s policy which requires that impaired loans are individually evaluated for impairment utilizing one of three valuation methods, as prescribed under ASC 310-10. Generally, the Company measures impairment based on the present value of expected cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price, or the fair value of the collateral if the loan is a collateral-dependent loan. Impaired loans are deemed collateral-dependent if repayment is expected to be provided solely by the underlying collateral, which includes repayment from the proceeds from the sale of the collateral, cash flow from the continued operation of the collateral, or both, and cash flows to repay the loan from all other available sources are expected to be no more than nominal. If the Company deems the impaired loan to be a collateral-dependent loan, the impairment is measured using the fair value of the collateral. If the Company determines that a loan’s present value of expected cash flows or fair value of the collateral, if the loan is collateral-dependent, is less than the recorded investment in the loan, the Company either recognizes an impairment reserve as a specific allowance, or charges off the impaired balance if it is determined that such amount represents a confirmed loss. Loans determined to be impaired are excluded from the formula allowance that evaluates loans collectively for impairment, as discussed in the second phase below. | ||||
The second phase is conducted by evaluating or segmenting the remainder of the loan portfolio into groups or pools of loans with similar characteristics. In this second phase, groups or pools of homogeneous loans are reviewed to determine a portfolio formula allowance. In the case of the portfolio formula allowance, homogeneous portfolios, such as small business loans, consumer loans, agricultural loans, and real estate loans, are aggregated or pooled in determining the appropriate allowance. The risk assessment process in this case emphasizes trends in the different portfolios for delinquency, loss, and other behavioral characteristics of the subject portfolio over a relevant period. | ||||
Included in this second phase is our consideration of qualitative factors, including, all known relevant internal and external factors that may affect the collectability of a loan. This includes our estimates of the amounts necessary for concentrations, economic uncertainties, the volatility of the market value of collateral, and other relevant factors. These qualitative factors are used to adjust the historical loan loss rates for each pool of loans to determine the probable loan losses inherent in the portfolio. | ||||
Periodically, we assess various attributes utilized in adjusting our historical loss factors to reflect current economic conditions. The methodology is consistently applied across all the portfolio segments taking into account the applicable historical loss rates and the qualitative factors applicable to each pool of loans. | ||||
In the fourth quarter ended December 31, 2013, the Bank implemented a change in its methodology to calculate the ALLL. Previously, the Bank used an annual three-year look-back period of historical losses, segmented by loan type, with the loss factors updated annually to include the current year’s loss experience in the fourth quarter of each year. External factors that were considered were the improving credit environment and the stabilizing economy. In determining the look-back period, management considered the period used to develop the historical loss rate should be long enough to capture sufficient loss data. We determined that a rolling twenty quarters look-back period was appropriate as of December 31, 2013 because the most recent three-year period provided insufficient data, with very low loss experience, and in some cases recoveries actually exceeded losses within certain loan segments during the three year period. We believe the rolling twenty quarters look-back period is the best indicator of inherent losses within the loan portfolio as many of the economic factors in the early stages of the economic recovery still exist. | ||||
Covered Loans — We refer to “covered loans” as those loans that we acquired in the San Joaquin Bank (“SJB”) acquisition for which we will be reimbursed for a substantial portion of any future losses under the terms of the Federal Deposit Insurance Corporation (“FDIC”) loss sharing agreement. We account for loans under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“acquired impaired loan accounting”) when (i) we acquire loans deemed to be impaired when there is evidence of credit deterioration since their origination and it is probable at the date of acquisition that we would be unable to collect all contractually required payments and (ii) as a general policy election for non-impaired loans that we acquire in a distressed bank acquisition. Acquired impaired loans are accounted for individually or in pools of loans based on common risk characteristics. The excess of the loan’s or pool’s scheduled contractual principal and interest payments over all cash flows expected at acquisition is the nonaccretable difference. The remaining amount, representing the excess of the loan’s cash flows expected to be collected over the fair value is the accretable yield (accreted into interest income over the remaining life of the loan or pool). | ||||
A provision for loan losses on the covered portfolio will be recorded if there is deterioration in the expected cash flows on covered loans as a result of deteriorated credit quality, compared to those previously estimated without regard to the reimbursement from the FDIC under the FDIC loss sharing agreement. The portion of the loss on covered loans reimbursable from the FDIC is recorded in noninterest income as a (decrease) increase in the FDIC loss sharing asset. Decreases in expected cash flows on the acquired impaired loans as of the measurement date compared to previously estimated are recognized by recording a provision for loan losses on acquired impaired loans. Loans accounted for as part of a pool are measured based on the expected cash flows of the entire pool. | ||||
FDIC Loss Sharing Asset — On October 16, 2009, the Bank acquired substantially all of the assets and assumed substantially all of the liabilities of San Joaquin Bank (“SJB”) from the FDIC in an FDIC-assisted transaction. The Bank entered into a loss sharing agreement with the FDIC, whereby the FDIC will cover a substantial portion of any future losses on certain acquired assets. The acquired assets subject to the loss sharing agreement are referred to collectively as “covered assets.” Under the terms of such loss sharing agreement, the FDIC will absorb 80% of losses and share in 80% of loss recoveries up to $144.0 million with respect to covered assets, after a first loss amount of $26.7 million. The FDIC will reimburse the Bank for 95% of losses and share in 95% of loss recoveries in excess of $144.0 million with respect to covered assets. The loss sharing agreement is in effect for 5 years for commercial loans and 10 years for single-family residential loans from the October 16, 2009 acquisition date and the loss recovery provisions are in effect for 8 and 10 years, respectively, for commercial and single-family residential loans from the acquisition date. | ||||
The FDIC loss sharing asset was initially recorded at fair value which represents the present value of the estimated cash payments from the FDIC for future losses on covered loans. The ultimate collectability of this asset is dependent upon the performance of the underlying covered loans, the passage of time and claims paid by the FDIC. The loss estimates used in calculating the FDIC loss sharing asset are determined on the same basis as the loss estimates on the related covered loans and is the present value of the cash flows the Company expects to collect from the FDIC under the loss sharing agreement. The difference between the present value and the undiscounted cash flow the Company expects to collect from the FDIC is accreted (or amortized) into noninterest income over the life of the FDIC indemnification asset. The FDIC indemnification asset is adjusted for any changes in expected cash flows based on covered loan performance. Any increases in the cash flows of covered loans over those expected will reduce the FDIC indemnification asset and any decreases in the cash flows of covered loans over those expected will increase the FDIC indemnification asset, with the remaining balance amortized on the same basis as the discount, not to exceed its remaining contract life. These increases and decreases to the FDIC indemnification asset are recorded as adjustments to noninterest income. | ||||
Goodwill and Intangible Assets — Goodwill resulting from business combinations prior to January 1, 2009, represents the excess of the purchase price over the fair value of the net assets of the businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. | ||||
Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Based on the Company’s annual impairment test, there was zero recorded impairment as of September 30, 2014. | ||||
Other intangible assets consist of core deposit intangible assets arising from business combinations and are amortized using an accelerated method over their estimated useful lives. | ||||
Fair Value of Financial Instruments — We use fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures. Investment securities available-for-sale and interest-rate swaps are financial instruments recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other financial assets on a non-recurring basis, such as impaired loans and other real estate owned (“OREO”). These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Further, we include in Note 9 of the unaudited condensed consolidated financial statements information about the extent to which fair value is used to measure assets and liabilities, the valuation methodologies used and its impact to earnings. Additionally, for financial instruments not recorded at fair value we disclose the estimate of their fair value. | ||||
Earnings per Common Share — The Company calculates earnings per common share (“EPS”) using the two-class method. The two-class method requires the Company to present EPS as if all of the earnings for the period are distributed to common shareholders and any participating securities. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities. The Company grants restricted shares under the 2008 Equity Incentive Plan that qualify as participating securities. Restricted shares issued under this plan are entitled to dividends at the same rate as common stock. A reconciliation of the numerator and the denominator used in the computation of basic and diluted earnings per common share is included in Note 8 of these unaudited condensed consolidated financial statements. | ||||
Stock-Based Compensation — Consistent with the provisions of ASC 718, “Stock Compensation”, we recognize expense for the grant date fair value of stock options and restricted shares issued to employees, officers and non-employee directors over the their requisite service periods (generally the vesting period). The service periods may be subject to performance conditions. | ||||
At September 30, 2014, the Company had three stock-based employee compensation plans. The Company accounts for stock compensation using the “modified prospective” method. Under this method, awards that are granted, modified, or settled after December 31, 2005, are measured at fair value as of the grant date with compensation costs recognized over the vesting period on a straight-lined basis. Also under this method, unvested stock awards as of January 1, 2006 are recognized over the remaining service period with no change in historical reported earnings. | ||||
The fair value of each stock option grant is estimated as of the grant date using the Black-Scholes option-pricing model. Management assumptions used at the time of grant impact the fair value of the option calculated under the Black-Scholes option-pricing model, and ultimately, the expense that will be recognized over the life of the option. | ||||
The grant date fair value of restricted stock awards is measured at the fair value of the Company’s common stock as if the restricted share was vested and issued on the date of grant. | ||||
Additional information is included in Note 17 – Stock Option Plan and Restricted Stock Awards, of the Company’s 2013 Annual Report on Form 10-K. | ||||
Derivative Financial Instruments — All derivative instruments, including certain derivative instruments embedded in other contracts, are recognized on the condensed consolidated balance sheets at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in “Other Comprehensive Income,” net of deferred taxes, and are subsequently reclassified to earnings when the hedged transaction affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. | ||||
Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. Other significant estimates which may be subject to change include fair value determinations and disclosures, impairment of investments, goodwill, loans, and valuation of deferred tax assets, other intangibles and OREO. | ||||
Other Contingencies — In the ordinary course of business, the Company becomes involved in litigation. Based upon the Company’s internal records and discussions with legal counsel, the Company records reserves as appropriate, for estimates of the probable outcome of all cases brought against the Company. Except as discussed in Part II – Other Information, Item 1. “Legal Proceedings,” at September 30, 2014, the Company does not have any litigation reserves, and is not aware of any material pending legal action or complaints asserted against the Company. | ||||
Recent Accounting Pronouncements— In January 2014, the FASB issued ASU No. 2014-01, “Investments — Equity Method and Joint Ventures (Topic 323) — Accounting for Investments in Qualified Affordable Housing Projects.” This ASU allows reporting entities to make an accounting policy election concerning investments in Low Income Housing Tax Credit (“LIHTC”) programs, that meet specified conditions, to present the net tax benefits (net of the amortization of the cost of the investment) within income tax expense. The cost of LIHTC investments, that meet the specified conditions, may be amortized in proportion to the total expected tax benefits, including the tax credits and other tax benefits, as they are realized on the tax return. This ASU is effective beginning after December 15, 2014. This ASU is required to be applied retrospectively, if investors elect the proportional amortization method. However, if investors have existing LIHTC investments accounted for under the effective-yield method at adoption, they may continue to apply that method for those existing investments. The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In January 2014, the FASB issued ASU No. 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure.” This ASU clarifies when a creditor should reclassify mortgage loans collateralized by residential real estate from loans receivable to other real estate owned. ASU 2014-04 defines when an in-substance repossession or foreclosure has occurred and when a creditor is considered to have received physical possession of residential real estate collateralizing a mortgage loan. This ASU is effective for us on January 1, 2015 and can be applied either prospectively or using a modified retrospective transition method, and early adoption is permitted. The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This update to the ASC is the culmination of efforts by the FASB and the International Accounting Standards Board (IASB) to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 supersedes Topic 605 – Revenue Recognition and most industry-specific guidance. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in ASU 2014-09 describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. The amendments in ASU 2014-9 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not allowed. The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In June 2014, the FASB issued ASU No. 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 Services Period”. The amendments in ASU 2014-12 provide guidance for determining compensation cost under specific circumstances when an employee is eligible to vest in an award regardless of whether the employee is rendering service on the date the performance target is achieved. ASU 2014-12 becomes effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the effects of ASU 2014-12 on its consolidated financial statements and disclosures, if any. | ||||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements—Going Concern (Subtopic 205-40) –Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The new guidance addresses management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management’s evaluation should be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued. ASU 2014-15will be effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Business_Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Business Combinations | ' |
4. BUSINESS COMBINATIONS | |
American Security Bank Acquisition | |
On May 15, 2014, the Bank acquired all of the assets and assumed all of the liabilities of ASB for $57.0 million in cash. As a result, ASB was merged with CBB, the principal subsidiary of CVB. The Company believes this transaction serves to further expand its footprint in Southern California. At close, ASB had five branches located in the Southern California communities of: Newport Beach, Laguna Niguel, Corona, Lancaster, and Apple Valley. ASB also had two electronic branch vestibules in the High Desert area of California and a loan production office in Ontario, California. In the latter half of the third quarter of 2014, two branch locations were consolidated and two electronic banking vestibules were closed. By the end of the third quarter of 2014, the majority of the integration of ASB into CBB was completed. This included personnel decisions, center consolidations and system conversions. | |
Goodwill of $19.1 million from the acquisition represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. | |
The total fair value of assets acquired approximated $436.4 million, which included $117.8 million in cash and cash due from banks, $44.5 million in investment securities available for sale, $1.9 million in FHLB stock, $242.7 million in loans receivable, $4.8 million in fixed assets, $2.1 million in core deposit intangible assets acquired, $1.6 million in other real estate owned (“OREO”), and $1.8 million in other assets. The total fair value of liabilities assumed was $379.4 million, which included $378.4 million in deposits and $1.0 million in other liabilities. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of May 15, 2014. The assets acquired and liabilities assumed have been accounted for under the purchase method accounting. The final purchase price allocation will be completed in the fourth quarter of 2014. | |
We have included the financial results of the business combination in the condensed consolidated statement of income beginning on the acquisition date. | |
For the three and nine months ended September 30, 2014, the Company incurred non-recurring merger related expenses associated with the ASB acquisition of $640,000 and $1.9 million, respectively. |
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
5. INVESTMENT SECURITIES | |||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities are summarized below. The majority of securities held are publicly traded, and the estimated fair values were obtained from an independent pricing service based upon market quotes. | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | Total | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Percent | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gain | Loss | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 342,560 | $ | 2 | $ | (13,363 | ) | $ | 329,199 | 10.42 | % | ||||||||||||||
Residential mortgage-backed securities | 1,901,645 | 22,056 | (7,950 | ) | 1,915,751 | 60.62 | % | ||||||||||||||||||
CMOs / REMICs - residential | 315,298 | 7,300 | (643 | ) | 321,955 | 10.19 | % | ||||||||||||||||||
Municipal bonds | 564,366 | 24,583 | (936 | ) | 588,013 | 18.61 | % | ||||||||||||||||||
Other securities | 5,000 | 138 | — | 5,138 | 0.16 | % | |||||||||||||||||||
Total | $ | 3,128,869 | $ | 54,079 | $ | (22,892 | ) | $ | 3,160,056 | 100 | % | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | Total | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Percent | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gain | Loss | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 350,378 | $ | 22 | $ | (23,875 | ) | $ | 326,525 | 12.26 | % | ||||||||||||||
Residential mortgage-backed securities | 1,391,631 | 13,100 | (24,788 | ) | 1,379,943 | 51.81 | % | ||||||||||||||||||
CMOs / REMICs - residential | 361,573 | 6,576 | (1,974 | ) | 366,175 | 13.75 | % | ||||||||||||||||||
Municipal bonds | 571,145 | 18,839 | (3,893 | ) | 586,091 | 22 | % | ||||||||||||||||||
Other securities | 5,000 | — | (92 | ) | 4,908 | 0.18 | % | ||||||||||||||||||
Total | $ | 2,679,727 | $ | 38,537 | $ | (54,622 | ) | $ | 2,663,642 | 100 | % | ||||||||||||||
Approximately 81% of the available-for-sale portfolio at September 30, 2014 represents securities issued by the U.S government or U.S. government-sponsored enterprises, with the implied guarantee of payment of principal and interest. All non-agency available-for-sale CMO/REMIC issues held are rated investment grade or better by either Standard & Poor’s or Moody’s, as of September 30, 2014 and December 31, 2013. The Bank has $388,000 in CMOs/REMICs backed by whole loans issued by private-label companies (nongovernment sponsored). | |||||||||||||||||||||||||
During the first quarter of 2013, management identified 13 securities with a par value of $94.2 million that were experiencing accelerated prepayment speeds that were causing deterioration in yield. These securities were sold, and the Company recognized a net pre-tax gain on sale of $2.1 million for the nine months ended September 30, 2013. There were no realized gains or losses for the three and nine months ended September 30, 2014. | |||||||||||||||||||||||||
The tables below show the Company’s investment securities’ gross unrealized losses and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2014 and December 31, 2013. Management has reviewed individual securities to determine whether a decline in fair value below the amortized cost basis is other-than-temporary. | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Holding | Holding | Holding | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 17,979 | $ | 37 | $ | 306,211 | $ | 13,326 | $ | 324,190 | $ | 13,363 | |||||||||||||
Residential mortgage-backed securities | 399,364 | 677 | 309,465 | 7,273 | 708,829 | 7,950 | |||||||||||||||||||
CMOs / REMICs - residential | 28,420 | 76 | 42,092 | 567 | 70,512 | 643 | |||||||||||||||||||
Municipal bonds | 6,409 | 53 | 35,731 | 883 | 42,140 | 936 | |||||||||||||||||||
Other securities | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 452,172 | $ | 843 | $ | 693,499 | $ | 22,049 | $ | 1,145,671 | $ | 22,892 | |||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Holding | Holding | Holding | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 267,936 | $ | 20,514 | $ | 38,563 | $ | 3,361 | $ | 306,499 | $ | 23,875 | |||||||||||||
Residential mortgage-backed securities | 851,621 | 23,313 | 22,999 | 1,475 | 874,620 | 24,788 | |||||||||||||||||||
CMOs / REMICs - residential | 104,322 | 1,780 | 17,747 | 194 | 122,069 | 1,974 | |||||||||||||||||||
Municipal bonds | 47,116 | 3,359 | 10,338 | 534 | 57,454 | 3,893 | |||||||||||||||||||
Other securities | 4,908 | 92 | — | — | 4,908 | 92 | |||||||||||||||||||
Total | $ | 1,275,903 | $ | 49,058 | $ | 89,647 | $ | 5,564 | $ | 1,365,550 | $ | 54,622 | |||||||||||||
The following summarizes our analysis of these securities and the unrealized losses. This assessment was based on the following factors: i) the length of the time and the extent to which the fair value has been less than amortized cost; ii) adverse condition specifically related to the security, an industry, or a geographic area and whether or not the Company expects to recover the entire amortized cost, iii) historical and implied volatility of the fair value of the security; iv) the payment structure of the security and the likelihood of the issuer being able to make payments in the future; v) failure of the issuer of the security to make scheduled interest or principal payments, vi) any changes to the rating of the security by a rating agency, and vii) recoveries or additional declines in fair value subsequent to the balance sheet date. | |||||||||||||||||||||||||
CMO Held-to-Maturity — The Company has one investment security classified as held-to-maturity. This security was issued by Countrywide Financial and is collateralized by Alt-A mortgages. The mortgages are primarily fixed-rate, 30-year loans, originated in early 2006 with average FICO scores of 715 and an average LTV of 71% at origination. The security was a senior security in the securitization, was rated triple AAA at origination and was supported by subordinate securities. This security is classified as held-to-maturity as the Bank has both the intent and ability to hold this debt security to maturity. The Bank acquired this security in February 2008 at a price of 98.25%. The significant decline in the fair value of the security first appeared in August 2008 at the time the financial crisis in the markets occurred and the market for securities collateralized by Alt-A mortgages diminished. | |||||||||||||||||||||||||
As of September 30, 2014, the unrealized loss on this security was zero and the current fair value on the security was 79.27% of the current par value. This Alt-A bond, with a book value of $1.6 million as of September 30, 2014, has had $1.9 million in net impairment losses to date. These losses have been recorded as a reduction to noninterest income. The security is rated non-investment grade. We evaluated the security for an other-than-temporary decline in fair value as of September 30, 2014. The key assumptions include default rates, loss severities and prepayment rates. There were no changes in credit related other-than temporary impairment recognized in earnings for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||
Government Agency & Government-Sponsored Enterprise— The government agency bonds are backed by the full faith and credit of agencies of the U.S. Government. While the Government-Sponsored Enterprise bonds are not expressly guaranteed by the U.S. Government, they are currently being supported by the U.S. Government under a conservatorship arrangement. As of September 30, 2014, approximately $137.2 million in U.S. government agency bonds are callable. These securities are bullet securities, that is, they have a defined maturity date on which the principal is paid. The contractual term of these investments provides that the Company will receive the face value of the bond at maturity which will equal the amortized cost of the bond. Interest is received throughout the life of the security. | |||||||||||||||||||||||||
Mortgage-Backed Securities and CMOs/REMICs— Almost all of the Company’s available-for-sale mortgage-backed and CMOs/REMICs securities are issued by government agencies or government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. These securities are collateralized or backed by the underlying residential mortgages. All mortgage-backed securities are considered to be rated investment grade with a weighted average life of approximately 4.2 years. Of the total MBS/CMO, 99.98% have the implied guarantee of U.S. government-sponsored agencies and enterprises. The remaining 0.02% are issued by banks. Accordingly, it is expected the securities would not be settled at a price less than the amortized cost of the bonds. | |||||||||||||||||||||||||
Municipal Bonds—The majority of the Company’s municipal bonds are insured by the largest bond insurance companies with maturities of approximately 8.6 years. The Company diversifies its holdings by owning selections of securities from different issuers and by holding securities from geographically diversified municipal issuers, thus reducing the Company’s exposure to any single adverse event. The decline in fair value is attributable to the changes in interest rates and not credit quality. Since the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized costs, these investments are not considered other than temporarily impaired at September 30, 2014. | |||||||||||||||||||||||||
On an ongoing basis, we monitor the quality of our municipal bond portfolio in light of the current financial problems exhibited by certain monoline insurance companies. Many of the securities that would not be rated without insurance are pre-refunded and/or are general obligation bonds. We continue to monitor municipalities, which includes a review of the respective municipalities’ audited financial statements to determine whether there are any audit or performance issues. We use outside brokers to assist us in these analyses. Based on our monitoring of the municipal marketplace, to our knowledge, none of the municipalities are exhibiting financial problems that would lead us to believe that there is OTTI for any given security. | |||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, investment securities having a carrying value of approximately $3.13 billion and $2.60 billion, respectively, were pledged to secure public deposits, short and long-term borrowings, and for other purposes as required or permitted by law. | |||||||||||||||||||||||||
The amortized cost and fair value of debt securities at September 30, 2014, by contractual maturity, are shown in the table below. Although mortgage-backed securities and CMOs/REMICs have contractual maturities through 2043, expected maturities will differ from contractual maturities because borrowers may have the right to prepay such obligations without penalty. Mortgage-backed securities and CMOs/REMICs are included in maturity categories based upon estimated prepayment speeds. | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||||
Amortized | Fair | Average | |||||||||||||||||||||||
Cost | Value | Yield | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 130,897 | $ | 133,756 | 3.51 | % | |||||||||||||||||||
Due after one year through five years | 2,116,400 | 2,156,397 | 2.48 | % | |||||||||||||||||||||
Due after five years through ten years | 796,615 | 782,833 | 2.2 | % | |||||||||||||||||||||
Due after ten years | 84,957 | 87,070 | 2.72 | % | |||||||||||||||||||||
Total | $ | 3,128,869 | $ | 3,160,056 | 2.46 | % | |||||||||||||||||||
The investment in FHLB stock is periodically evaluated for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. No impairment losses have been recorded through September 30, 2014. |
Covered_Assets_and_FDIC_Loss_S
Covered Assets and FDIC Loss Sharing Asset | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Covered Assets and FDIC Loss Sharing Asset | ' | ||||||||
6. COVERED ASSETS AND FDIC LOSS SHARING ASSET | |||||||||
FDIC Assisted Acquisition | |||||||||
On October 16, 2009, the Bank acquired SJB and entered into loss sharing agreements with the FDIC that is more fully discussed in Note 3—Summary of Significant Accounting Policies, included herein. The acquisition has been accounted for under the purchase method of accounting. The assets and liabilities were recorded at their estimated fair values as of the October 16, 2009 acquisition date. The application of the purchase method of accounting resulted in an after-tax gain of $12.3 million which was included in 2009 earnings. The gain is the negative goodwill resulting from the acquired assets and liabilities recognized at fair value. | |||||||||
At September 30, 2014, the remaining discount associated with the SJB loans approximated $8.2 million. Based on the Company’s regular forecast of expected cash flows from these loans, approximately $5.7 million of the related discount is expected to accrete into interest income over the remaining average lives of the respective pools and individual loans, which approximates 4.2 years and 0.5 years, respectively. Due to the decrease in estimated losses to be incurred in the remaining portfolio, the expected reimbursement from the FDIC under the loss sharing agreement decreased. The FDIC loss sharing asset of $331,000 at September 30, 2014 was reduced by loss claims submitted to the FDIC with the remaining balance amortized on the same basis as the discount on the related loans, not to exceed its remaining contract life, which expires in October of 2014 for commercial loans. Refer to Note 3—Summary of Significant Accounting Policies for a more detailed discussion concerning the FDIC loss sharing agreement. | |||||||||
The following table provides a summary of the components of covered loan and lease finance receivables: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
(Dollars in thousands) | |||||||||
Commercial and industrial | $ | 16,877 | $ | 20,461 | |||||
Real estate: | |||||||||
Commercial real estate | 116,854 | 141,141 | |||||||
Construction | — | 644 | |||||||
SFR mortgage | 211 | 313 | |||||||
Dairy & livestock and agribusiness | 3,270 | 6,000 | |||||||
Municipal lease finance receivables | — | — | |||||||
Consumer and other loans | 3,392 | 4,545 | |||||||
Gross covered loans | 140,604 | 173,104 | |||||||
Less: Purchase accounting discount | (8,253 | ) | (12,789 | ) | |||||
Gross covered loans, net of discount | 132,351 | 160,315 | |||||||
Less: Allowance for covered loan losses | — | — | |||||||
Net covered loans | $ | 132,351 | $ | 160,315 | |||||
Credit Quality Indicators | |||||||||
Central to our credit risk management is our loan risk rating system. The originating credit officer assigns borrowers an initial risk rating, which is reviewed and accepted or modified by Credit Management. The risk rating is based primarily on a thorough analysis of each borrower’s financial capacity in conjunction with industry and economic trends. Approvals are made based upon the amount of inherent credit risk specific to the transaction and are reviewed for appropriateness by senior line and credit management personnel. Credits are monitored by line and credit management personnel for deterioration in a borrower’s financial condition, which would impact the ability of the borrower to perform under the contract. Risk ratings are adjusted as necessary. | |||||||||
Credit risk ratings are also used by Management in deriving expectations for future cash flows of covered loans, in addition to managing the underlying credit quality and collection efforts for these loans. Changes in credit risk ratings on covered loans assist the Company in establishing assumptions used in estimating expected future cash flows, and do not necessarily represent a need to establish or reverse an allowance for loan losses for these loans. | |||||||||
The following table summarizes covered loans by internal risk ratings: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
(Dollars in thousands) | |||||||||
Pass | $ | 26,503 | $ | 38,961 | |||||
Watch list | 79,635 | 74,369 | |||||||
Special mention | 6,542 | 15,492 | |||||||
Substandard | 27,924 | 44,241 | |||||||
Doubtful & loss | — | 41 | |||||||
Total covered gross loans | $ | 140,604 | $ | 173,104 | |||||
Allowance for Loan Losses | |||||||||
The Company’s Credit Management Division is responsible for regularly reviewing the ALLL methodology for covered loans. The ALLL for covered loans is determined separately from non-covered loans, and is based on expectations of future cash flows from the underlying pools of loans or individual loans in accordance with ASC 310-30, as more fully discussed in Note 3—Summary of Significant Accounting Policies. As of September 30, 2014 and December 31, 2013, the Company had zero allowance for loan losses recorded for covered loans. |
NonCovered_Loan_and_Lease_Fina
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses | ' | ||||||||||||||||||||||||
7. NON-COVERED LOAN AND LEASE FINANCE RECEIVABLES AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||
The following tables provide a summary of the components of loan and lease finance receivables: | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 513,644 | $ | 512,792 | |||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 2,465,915 | 2,207,515 | |||||||||||||||||||||||
Construction | 67,229 | 47,109 | |||||||||||||||||||||||
SFR mortgage | 193,205 | 189,233 | |||||||||||||||||||||||
Dairy & livestock and agribusiness | 192,930 | 294,292 | |||||||||||||||||||||||
Municipal lease finance receivables | 80,013 | 89,106 | |||||||||||||||||||||||
Consumer and other loans | 69,811 | 55,103 | |||||||||||||||||||||||
Gross non-covered loans | 3,582,747 | 3,395,150 | |||||||||||||||||||||||
Less: Deferred loan fees, net | (8,862 | ) | (9,234 | ) | |||||||||||||||||||||
Gross loans, net of deferred loan fees | 3,573,885 | 3,385,916 | |||||||||||||||||||||||
Less: Allowance for non-covered loan losses | (59,582 | ) | (75,235 | ) | |||||||||||||||||||||
Net non-covered loans | $ | 3,514,303 | $ | 3,310,681 | |||||||||||||||||||||
As of September 30, 2014, 68.83% of the total non-covered loan portfolio consisted of commercial real estate loans and 1.88% of the total non-covered loan portfolio consisted of construction loans. Substantially all of the Company’s real estate loans and construction loans are secured by real properties located in California. At September 30, 2014, the Company held approximately $1.75 billion of non-covered fixed rate loans. | |||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, loans totaling $2.61 billion and $2.31 billion, respectively, were pledged to secure borrowings and available lines of credit from the FHLB and the Federal Reserve Bank. | |||||||||||||||||||||||||
Non-Covered Loans Held-for-Sale | |||||||||||||||||||||||||
The following table provides a summary of the activity related to non-covered loans held-for-sale for the nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Balance, beginning of period | $ | 3,667 | $ | — | |||||||||||||||||||||
Originations of mortgage loans | — | — | |||||||||||||||||||||||
Sales of mortgage loans | — | — | |||||||||||||||||||||||
Transfer of mortgage loans to held for investment | — | — | |||||||||||||||||||||||
Sales of other loans | (3,667 | ) | — | ||||||||||||||||||||||
Transfers of other loans to held-for-sale | — | — | |||||||||||||||||||||||
Write-down of loans held-for-sale | — | — | |||||||||||||||||||||||
Balance, end of period | $ | — | $ | — | |||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||
Central to our credit risk management is our loan risk rating system. The originating credit officer assigns borrowers an initial risk rating, which is reviewed and confirmed or changed, as appropriate, by Credit Management. Approvals are made based upon the amount of inherent credit risk specific to the transaction and are reviewed for appropriateness by senior line and credit management personnel. Credits are monitored by line and credit management personnel for deterioration in a borrower’s financial condition, which would impact the ability of the borrower to perform under the contract. Risk ratings are adjusted as necessary. | |||||||||||||||||||||||||
Loans are risk rated into the following categories (Credit Quality Indicators): Pass, Pass Watch List, Special Mention, Substandard, Doubtful and Loss. Each of these groups is assessed for the proper amount to be used in determining the adequacy of our allowance for losses. These categories can be described as follows: | |||||||||||||||||||||||||
Pass – These loans range from minimal credit risk to lower than average, but still acceptable, credit risk. | |||||||||||||||||||||||||
Pass Watch List — Pass Watch list loans usually require more than normal management attention. Loans which qualify for the Pass Watch List may involve borrowers with adverse financial trends, higher debt/equity ratios, or weaker liquidity positions, but not to the degree of being considered a defined weakness or problem loan where risk of loss may be apparent. | |||||||||||||||||||||||||
Special Mention — Loans assigned to this category are currently protected but are weak. Although concerns exist, the Company is currently protected and loss is unlikely. Such loans have potential weaknesses that may, if not checked or corrected, weaken the asset or inadequately protect the Company’s credit position at some future date. | |||||||||||||||||||||||||
Substandard – Loans classified as substandard include poor liquidity, high leverage, and erratic earnings or losses. The primary source of repayment is no longer realistic, and asset or collateral liquidation may be the only source of repayment. Substandard loans are marginal and require continuing and close supervision by credit management. Substandard loans have the distinct possibility that the Company will sustain some loss if deficiencies are not corrected. | |||||||||||||||||||||||||
Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added provision that the weaknesses make collection or the liquidation, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors which may work to the advantage and strengthening of the assets, their classifications as losses are deferred until their more exact status may be determined. | |||||||||||||||||||||||||
Loss — Loans classified as loss are considered uncollectible and of such little value that their continuance as active assets of the Company is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be achieved in the future. | |||||||||||||||||||||||||
The following tables summarize our internal risk grouping by loan class as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Pass | Watch List | Special | Substandard | Doubtful & | Total | ||||||||||||||||||||
Mention | Loss (1) | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 306,627 | $ | 125,212 | $ | 63,569 | $ | 16,539 | $ | 1,697 | $ | 513,644 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 529,273 | 161,659 | 65,056 | 25,426 | — | 781,414 | |||||||||||||||||||
Non-owner occupied | 1,305,708 | 254,429 | 76,113 | 48,251 | — | 1,684,501 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 23,230 | 2,872 | — | 17,318 | — | 43,420 | |||||||||||||||||||
Non-speculative | 11,230 | 3,476 | 2 | 9,101 | — | 23,809 | |||||||||||||||||||
SFR mortgage | 160,920 | 20,459 | 2,455 | 9,371 | — | 193,205 | |||||||||||||||||||
Dairy & livestock and agribusiness | 70,125 | 90,136 | 16,240 | 14,966 | 1,463 | 192,930 | |||||||||||||||||||
Municipal lease finance receivables | 36,609 | 23,091 | 20,313 | — | — | 80,013 | |||||||||||||||||||
Consumer and other loans | 56,971 | 6,860 | 2,959 | 2,825 | 196 | 69,811 | |||||||||||||||||||
Total non-covered gross loans | $ | 2,500,693 | $ | 688,194 | $ | 246,707 | $ | 143,797 | $ | 3,356 | $ | 3,582,747 | |||||||||||||
-1 | There were no loans classified as loss as of September 30, 2014. | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Pass | Watch List | Special | Substandard | Doubtful & | Total | ||||||||||||||||||||
Mention | Loss (1) | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 312,927 | $ | 128,068 | $ | 53,417 | $ | 17,950 | $ | 430 | $ | 512,792 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 449,853 | 147,165 | 74,999 | 57,934 | — | 729,951 | |||||||||||||||||||
Non-owner occupied | 1,104,065 | 242,431 | 81,088 | 49,980 | — | 1,477,564 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 8,611 | 21 | 1,529 | 17,617 | — | 27,778 | |||||||||||||||||||
Non-speculative | 6,940 | 3,190 | — | 9,201 | — | 19,331 | |||||||||||||||||||
SFR mortgage | 152,500 | 20,485 | 3,302 | 12,946 | — | 189,233 | |||||||||||||||||||
Dairy & livestock and agribusiness | 43,588 | 86,580 | 92,514 | 69,005 | 2,605 | 294,292 | |||||||||||||||||||
Municipal lease finance receivables | 43,445 | 18,338 | 20,893 | 6,430 | — | 89,106 | |||||||||||||||||||
Consumer and other loans | 43,225 | 6,938 | 3,449 | 1,491 | — | 55,103 | |||||||||||||||||||
Total non-covered gross loans | $ | 2,165,154 | $ | 653,216 | $ | 331,191 | $ | 242,554 | $ | 3,035 | $ | 3,395,150 | |||||||||||||
-1 | There were no loans classified as loss as of December 31, 2013. | ||||||||||||||||||||||||
Allowance for Loan Losses | |||||||||||||||||||||||||
The Company’s Credit Management Division is responsible for regularly reviewing the allowance for loan losses (“ALLL”) methodology, including loss factors and economic risk factors. The Bank’s Directors Loan Committee provides Board oversight of the ALLL process and approves the ALLL methodology on a quarterly basis. | |||||||||||||||||||||||||
Our methodology for assessing the appropriateness of the allowance is conducted on a regular basis and considers the Bank’s overall loan portfolio. Refer to Note 3 – Summary of Significant Accounting Policies for a more detailed discussion concerning the allowance for loan losses. | |||||||||||||||||||||||||
Management believes that the ALLL was appropriate at September 30, 2014 and December 31, 2013. No assurance can be given that economic conditions which adversely affect the Company’s service areas or other circumstances will not be reflected in increased provisions for loan losses in the future. | |||||||||||||||||||||||||
The following tables present the balance and activity related to the allowance for loan losses for non-covered held-for-investment loans by portfolio segment for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
June 30, | September 30, | ||||||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 8,402 | $ | (2 | ) | $ | 187 | $ | 97 | $ | 8,684 | ||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 35,918 | — | 2 | (286 | ) | 35,634 | |||||||||||||||||||
Construction | 605 | — | 37 | 148 | 790 | ||||||||||||||||||||
SFR mortgage | 2,214 | — | 188 | (97 | ) | 2,305 | |||||||||||||||||||
Dairy & livestock and agribusiness | 5,428 | (1,061 | ) | 151 | (241 | ) | 4,277 | ||||||||||||||||||
Municipal lease finance receivables | 1,464 | — | — | 4 | 1,468 | ||||||||||||||||||||
Consumer and other loans | 930 | (7 | ) | 113 | (169 | ) | 867 | ||||||||||||||||||
Covered loans | — | — | — | — | — | ||||||||||||||||||||
Unallocated | 6,013 | — | — | (456 | ) | 5,557 | |||||||||||||||||||
Total allowance for loan losses | $ | 60,974 | $ | (1,070 | ) | $ | 678 | $ | (1,000 | ) | $ | 59,582 | |||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
June 30, | September 30, | ||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 12,586 | $ | (1,235 | ) | $ | 315 | $ | (1,022 | ) | $ | 10,644 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 44,392 | — | 34 | (1,007 | ) | 43,419 | |||||||||||||||||||
Construction | 1,172 | — | 15 | 412 | 1,599 | ||||||||||||||||||||
SFR mortgage | 3,715 | (110 | ) | — | (144 | ) | 3,461 | ||||||||||||||||||
Dairy & livestock and agribusiness | 14,225 | — | 14 | (2,152 | ) | 12,087 | |||||||||||||||||||
Municipal lease finance receivables | 2,369 | — | — | 69 | 2,438 | ||||||||||||||||||||
Consumer and other loans | 1,052 | (39 | ) | 12 | 25 | 1,050 | |||||||||||||||||||
Unallocated | 5,946 | — | — | 69 | 6,015 | ||||||||||||||||||||
Total allowance for loan losses | $ | 85,457 | $ | (1,384 | ) | $ | 390 | $ | (3,750 | ) | $ | 80,713 | |||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 10,834 | $ | (516 | ) | $ | 748 | $ | (2,382 | ) | $ | 8,684 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 39,402 | (352 | ) | 140 | (3,556 | ) | 35,634 | ||||||||||||||||||
Construction | 1,305 | — | 834 | (1,349 | ) | 790 | |||||||||||||||||||
SFR mortgage | 2,718 | — | 188 | (601 | ) | 2,305 | |||||||||||||||||||
Dairy & livestock and agribusiness | 11,728 | (1,061 | ) | 393 | (6,783 | ) | 4,277 | ||||||||||||||||||
Municipal lease finance receivables | 2,335 | — | — | (867 | ) | 1,468 | |||||||||||||||||||
Consumer and other loans | 960 | (26 | ) | 139 | (206 | ) | 867 | ||||||||||||||||||
Covered loans | — | (40 | ) | — | 40 | — | |||||||||||||||||||
Unallocated | 5,953 | — | — | (396 | ) | 5,557 | |||||||||||||||||||
Total allowance for loan losses | $ | 75,235 | $ | (1,995 | ) | $ | 2,442 | $ | (16,100 | ) | $ | 59,582 | |||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 11,652 | $ | (2,339 | ) | $ | 523 | $ | 808 | $ | 10,644 | ||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 47,457 | — | 100 | (4,138 | ) | 43,419 | |||||||||||||||||||
Construction | 2,291 | — | 83 | (775 | ) | 1,599 | |||||||||||||||||||
SFR mortgage | 3,448 | (252 | ) | 133 | 132 | 3,461 | |||||||||||||||||||
Dairy & livestock and agribusiness | 18,696 | — | 42 | (6,651 | ) | 12,087 | |||||||||||||||||||
Municipal lease finance receivables | 1,588 | — | — | 850 | 2,438 | ||||||||||||||||||||
Consumer and other loans | 1,170 | (108 | ) | 40 | (52 | ) | 1,050 | ||||||||||||||||||
Unallocated | 6,139 | — | — | (124 | ) | 6,015 | |||||||||||||||||||
Total allowance for loan losses | $ | 92,441 | $ | (2,699 | ) | $ | 921 | $ | (9,950 | ) | $ | 80,713 | |||||||||||||
The following tables present the recorded investment in non-covered loans held-for-investment, and the related allowance for loan losses by portfolio segment, based on the Company’s methodology for determining the allowance for loan losses as of September 30, 2014 and 2013: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | ||||||||||||||||||||||
Evaluated for | Evaluated for | Evaluated for | Evaluated for | ||||||||||||||||||||||
Impairment | Impairment | Impairment | Impairment | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 7,709 | $ | 505,935 | $ | 711 | $ | 7,954 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 31,375 | 2,434,540 | — | 35,633 | |||||||||||||||||||||
Construction | 26,419 | 40,810 | — | 790 | |||||||||||||||||||||
SFR mortgage | 7,755 | 185,450 | 39 | 2,266 | |||||||||||||||||||||
Dairy & livestock and agribusiness | 18,939 | 173,991 | — | 4,278 | |||||||||||||||||||||
Municipal lease finance receivables | — | 80,013 | — | 1,468 | |||||||||||||||||||||
Consumer and other loans | 461 | 69,350 | 4 | 882 | |||||||||||||||||||||
Unallocated | — | — | — | 5,557 | |||||||||||||||||||||
Total | $ | 92,658 | $ | 3,490,089 | $ | 754 | $ | 58,828 | |||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | ||||||||||||||||||||||
Evaluated for | Evaluated for | Evaluated for | Evaluated for | ||||||||||||||||||||||
Impairment | Impairment | Impairment | Impairment | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 4,983 | $ | 505,583 | $ | 387 | $ | 10,257 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 38,999 | 2,087,416 | 1 | 43,418 | |||||||||||||||||||||
Construction | 27,239 | 20,409 | 144 | 1,455 | |||||||||||||||||||||
SFR mortgage | 12,805 | 179,325 | 290 | 3,171 | |||||||||||||||||||||
Dairy & livestock and agribusiness | 24,494 | 237,144 | 2,658 | 9,429 | |||||||||||||||||||||
Municipal lease finance receivables | — | 99,188 | — | 2,438 | |||||||||||||||||||||
Consumer and other loans | 159 | 52,727 | 5 | 1,045 | |||||||||||||||||||||
Unallocated | — | — | — | 6,015 | |||||||||||||||||||||
Total | $ | 108,679 | $ | 3,181,792 | $ | 3,485 | $ | 77,228 | |||||||||||||||||
Past Due and Nonperforming Loans | |||||||||||||||||||||||||
We seek to manage asset quality and control credit risk through diversification of the non-covered loan portfolio and the application of policies designed to promote sound underwriting and loan monitoring practices. The Bank’s Credit Management Division is in charge of monitoring asset quality, establishing credit policies and procedures and enforcing the consistent application of these policies and procedures across the Bank. Reviews of nonperforming, past due non-covered loans and larger credits, designed to identify potential charges to the allowance for loan losses, and to determine the appropriateness of the allowance, are conducted on an ongoing basis. These reviews consider such factors as the financial strength of borrowers and any guarantors, the value of the applicable collateral, loan loss experience, estimated loan losses, growth in the loan portfolio, prevailing economic conditions and other factors. Refer to Note 3 – Summary of Significant Accounting Policies for additional discussion concerning the Bank’s policy for past due and nonperforming loans. | |||||||||||||||||||||||||
Loans are reported as a troubled debt restructuring when the Bank grants a concession(s) to a borrower experiencing financial difficulties that the Bank would not otherwise consider. Examples of such concessions include a reduction in the interest rate, deferral of principal or accrued interest, extending the payment due dates or loan maturity date(s), or providing a lower interest rate than would be normally available for new debt of similar risk. As a result of these concessions, restructured loans are classified as impaired. Impairment reserves on non-collateral dependent restructured loans are measured by comparing the present value of expected future cash flows on the restructured loans discounted at the interest rate of the original loan agreement to the loan’s carrying value. These impairment reserves are recognized as a specific component to be provided for in the allowance for loan losses. | |||||||||||||||||||||||||
Generally, when loans are identified as impaired they are moved to our Special Assets Department. When we identify a loan as impaired, we measure the loan for potential impairment using discounted cash flows, unless the loan is determined to be collateral dependent. In these cases, we use the current fair value of collateral, less selling costs. Generally, the determination of fair value is established through obtaining external appraisals of the collateral. | |||||||||||||||||||||||||
Speculative construction loans are generally for properties where there is no identified buyer or renter. | |||||||||||||||||||||||||
The following tables present the recorded investment in, and the aging of, non-covered past due and nonaccrual loans and loans past due by class of loans as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
30-59 | 60-89 | Total Past | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Days Past | Days Past | Due and | -1 | and | |||||||||||||||||||||
Due | Due | Accruing | Financing | ||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 673 | $ | — | $ | 673 | $ | 6,666 | $ | 506,305 | $ | 513,644 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | — | — | — | 4,034 | 777,380 | 781,414 | |||||||||||||||||||
Non-owner occupied | — | — | — | 10,761 | 1,673,740 | 1,684,501 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | 9,666 | 33,754 | 43,420 | |||||||||||||||||||
Non-speculative | — | — | — | — | 23,809 | 23,809 | |||||||||||||||||||
SFR mortgage | — | — | — | 3,999 | 189,206 | 193,205 | |||||||||||||||||||
Dairy & livestock and agribusiness | — | — | — | 1,463 | 191,467 | 192,930 | |||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | 80,013 | 80,013 | |||||||||||||||||||
Consumer and other loans | 15 | — | 15 | 461 | 69,335 | 69,811 | |||||||||||||||||||
Total non-covered gross loans | $ | 688 | $ | — | $ | 688 | $ | 37,050 | $ | 3,545,009 | $ | 3,582,747 | |||||||||||||
-1 | As of September 30, 2014, $22.7 million of nonaccrual loans were current according to original or restructured terms, $3.2 million were 30-59 days past due, $13,000 were 60-89 days past due, and $11.2 million were 90+ days past due. | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
30-59 | 60-89 | Total Past | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Days Past | Days Past | Due and | -1 | and | |||||||||||||||||||||
Due | Due | Accruing | Financing | ||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 900 | $ | 93 | $ | 993 | $ | 3,861 | $ | 507,938 | $ | 512,792 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 220 | — | 220 | 4,105 | 725,626 | 729,951 | |||||||||||||||||||
Non-owner occupied | 303 | — | 303 | 8,305 | 1,468,956 | 1,477,564 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | 9,966 | 17,812 | 27,778 | |||||||||||||||||||
Non-speculative | — | — | — | — | 19,331 | 19,331 | |||||||||||||||||||
SFR mortgage | 773 | 935 | 1,708 | 7,577 | 179,948 | 189,233 | |||||||||||||||||||
Dairy & livestock and agribusiness | — | — | — | 5,739 | 288,553 | 294,292 | |||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | 89,106 | 89,106 | |||||||||||||||||||
Consumer and other loans | 75 | — | 75 | 401 | 54,627 | 55,103 | |||||||||||||||||||
Total non-covered gross loans | $ | 2,271 | $ | 1,028 | $ | 3,299 | $ | 39,954 | $ | 3,351,897 | $ | 3,395,150 | |||||||||||||
-1 | As of December 31, 2013, $23.9 million of nonaccruing loans were current according to original or restructured terms, $473,000 were 30-59 days past due, $854,000 were 60-89 days past due, and $14.7 million were 90+ days past due. | ||||||||||||||||||||||||
Non-Covered Impaired Loans | |||||||||||||||||||||||||
At September 30, 2014, the Company had non-covered impaired loans of $92.7 million. Of this amount, there were $14.8 million of nonaccrual commercial real estate loans, $9.7 million in nonaccrual commercial construction loans, $4.0 million of nonaccrual SFR mortgage loans, $6.7 million of nonaccrual commercial and industrial loans, $1.5 million of nonaccrual dairy & livestock and agribusiness loans and $461,000 of nonaccrual consumer and other loans. These non-covered impaired loans included $78.2 million of loans whose terms were modified in a troubled debt restructuring, of which $22.6 million were classified as nonaccrual. The remaining balance of $55.6 million consisted of 39 loans performing according to the restructured terms. The impaired loans had a specific allowance of $754,000 at September 30, 2014. At December 31, 2013, the Company had classified as impaired, non-covered loans with a balance of $106.9 million with a related allowance of $3.2 million. | |||||||||||||||||||||||||
The following tables present information for held-for-investment loans, individually evaluated for impairment by class of loans, as of and for the periods indicated below: | |||||||||||||||||||||||||
As of and For the Nine Months Ended | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | $ | 6,096 | $ | 7,861 | $ | — | $ | 5,849 | $ | 44 | |||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 8,742 | 9,896 | — | 9,025 | 238 | ||||||||||||||||||||
Non-owner occupied | 22,633 | 29,545 | — | 23,252 | 541 | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 17,318 | 18,407 | — | 17,440 | 232 | ||||||||||||||||||||
Non-speculative | 9,101 | 9,101 | — | 9,145 | 463 | ||||||||||||||||||||
SFR mortgage | 7,285 | 9,685 | — | 7,934 | 82 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 18,939 | 20,698 | — | 21,205 | 819 | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 450 | 876 | — | 455 | — | ||||||||||||||||||||
Total | 90,564 | 106,069 | — | 94,305 | 2,419 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | 1,613 | 1,951 | 711 | 1,626 | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | — | — | — | — | — | ||||||||||||||||||||
Non-owner occupied | — | — | — | — | — | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | — | — | ||||||||||||||||||||
Non-speculative | — | — | — | — | — | ||||||||||||||||||||
SFR mortgage | 470 | 484 | 39 | 476 | — | ||||||||||||||||||||
Dairy & livestock and agribusiness | — | — | — | — | — | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 11 | 15 | 4 | 12 | — | ||||||||||||||||||||
Total | 2,094 | 2,450 | 754 | 2,114 | — | ||||||||||||||||||||
Total non-covered impaired loans | $ | 92,658 | $ | 108,519 | $ | 754 | $ | 96,419 | $ | 2,419 | |||||||||||||||
As of and For the Nine Months Ended | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | $ | 4,595 | $ | 6,020 | $ | — | $ | 5,131 | $ | 161 | |||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 13,361 | 14,412 | — | 13,635 | 494 | ||||||||||||||||||||
Non-owner occupied | 25,631 | 36,851 | — | 26,838 | 553 | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 10,369 | 10,956 | — | 10,522 | — | ||||||||||||||||||||
Non-speculative | 9,219 | 9,219 | — | 9,219 | 428 | ||||||||||||||||||||
SFR mortgage | 10,156 | 11,838 | — | 9,487 | 75 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 17,553 | 18,515 | — | 19,308 | 445 | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 142 | 214 | — | 149 | — | ||||||||||||||||||||
Total | 91,026 | 108,025 | — | 94,289 | 2,156 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | 388 | 408 | 387 | 417 | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 7 | 9 | 1 | 11 | — | ||||||||||||||||||||
Non-owner occupied | — | — | — | — | — | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 7,651 | 7,651 | 144 | 7,651 | 232 | ||||||||||||||||||||
Non-speculative | — | — | — | — | — | ||||||||||||||||||||
SFR mortgage | 2,649 | 2,764 | 290 | 2,636 | 5 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 6,941 | 7,654 | 2,658 | 7,571 | — | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 17 | 19 | 5 | 19 | — | ||||||||||||||||||||
Total | 17,653 | 18,505 | 3,485 | 18,305 | 237 | ||||||||||||||||||||
Total non-covered impaired loans | $ | 108,679 | $ | 126,530 | $ | 3,485 | $ | 112,594 | $ | 2,393 | |||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance | |||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | $ | 4,668 | $ | 5,927 | $ | — | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 13,041 | 14,133 | — | ||||||||||||||||||||||
Non-owner occupied | 20,399 | 26,155 | — | ||||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 17,617 | 18,408 | — | ||||||||||||||||||||||
Non-speculative | 9,201 | 9,201 | — | ||||||||||||||||||||||
SFR mortgage | 10,919 | 12,516 | — | ||||||||||||||||||||||
Dairy & livestock and agribusiness | 17,702 | 17,702 | — | ||||||||||||||||||||||
Municipal lease finance receivables | — | — | — | ||||||||||||||||||||||
Consumer and other loans | 385 | 445 | — | ||||||||||||||||||||||
Total | 93,932 | 104,487 | — | ||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | 365 | 379 | 365 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | — | — | — | ||||||||||||||||||||||
Non-owner occupied | — | — | — | ||||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | ||||||||||||||||||||||
Non-speculative | — | — | — | ||||||||||||||||||||||
SFR mortgage | 486 | 489 | 103 | ||||||||||||||||||||||
Dairy & livestock and agribusiness | 12,110 | 12,783 | 2,702 | ||||||||||||||||||||||
Municipal lease finance receivables | — | — | — | ||||||||||||||||||||||
Consumer and other loans | 16 | 19 | 4 | ||||||||||||||||||||||
Total | 12,977 | 13,670 | 3,174 | ||||||||||||||||||||||
Total non-covered impaired loans | $ | 106,909 | $ | 118,157 | $ | 3,174 | |||||||||||||||||||
The Company recognizes the charge-off of impairment allowance on impaired loans in the period in which a loss is identified for collateral dependent loans. Therefore, the majority of the nonaccrual loans as of September 30, 2014 and December 31, 2013 have already been written down to the estimated net realizable value. The impaired loans with a related allowance recorded are on nonaccrual loans where a charge-off is not yet processed, on nonaccrual SFR loans where there is a potential modification in process, or on smaller balance non-collateral dependent loans. | |||||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, impaired construction speculative loans included one nonaccruing loan that represents the Company’s only participating interest in a loan classified under the Shared National Credit program. The outstanding balance of this loan was $9.7 million as of September 30, 2014 and $10.0 million at December 31, 2013. | |||||||||||||||||||||||||
Reserve for Unfunded Loan Commitments | |||||||||||||||||||||||||
The allowance for off-balance sheet credit exposure relates to commitments to extend credit, letters of credit and undisbursed funds on lines of credit. The Company evaluates credit risk associated with the off-balance sheet commitments at the same time it evaluates credit risk associated with the loan and lease portfolio. The Company recorded a reduction in our reserve for unfunded loan commitments of $1.3 million for the three and nine months ended September 30, 2014, compared with a provision for unfunded loan commitments of $500,000 for the same period in 2013. At September 30, 2014 and December 31, 2013, the balance of the reserve was $7.8 million and $9.1 million, respectively, and was included in other liabilities. | |||||||||||||||||||||||||
Troubled Debt Restructurings (“TDR”) | |||||||||||||||||||||||||
Loans that are reported as TDRs are considered impaired and charge-off amounts are taken on an individual loan basis, as deemed appropriate. The majority of restructured loans are loans for which the terms of repayment have been renegotiated, resulting in a reduction in interest rate or deferral of principal. Refer to Note 3 – Summary of Significant Accounting Policies, Troubled Debt Restructurings, included herein. | |||||||||||||||||||||||||
As of September 30, 2014, there were $78.2 million of loans classified as TDR, of which $22.6 million were nonperforming and $55.6 million were performing. TDRs on accrual status are comprised of loans that were accruing interest at the time of restructuring or have demonstrated repayment performance in compliance with the restructured terms for a sustained period and for which the Company anticipates full repayment of both principal and interest. At September 30, 2014, performing TDRs were comprised of 10 commercial real estate loans of $16.6 million, two construction loans of $16.7 million, 10 dairy & livestock loans of $17.5 million, 11 SFR mortgage loans of $3.8 million, and six commercial and industrial loans of $1.0 million. There were no loans removed from TDR classification during the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||||||
The majority of TDRs have no specific allowance allocated as any impairment amount is normally charged off at the time a probable loss is determined. We have allocated $389,000 and $2.7 million of specific allowance to TDRs as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
The following tables provide a summary of the activity related to TDRs for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||
Performing TDRs: | |||||||||||||||||||||||||
Beginning balance | $ | 61,878 | $ | 61,566 | $ | 66,955 | $ | 50,392 | |||||||||||||||||
New modifications | — | — | 41 | 21,364 | |||||||||||||||||||||
Payoffs and payments, net | (6,270 | ) | (2,481 | ) | (11,388 | ) | (13,820 | ) | |||||||||||||||||
TDRs returned to accrual status | — | 110 | — | 1,259 | |||||||||||||||||||||
TDRs placed on nonaccrual status | — | — | — | — | |||||||||||||||||||||
Ending balance | $ | 55,608 | $ | 59,195 | $ | 55,608 | $ | 59,195 | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||
Nonperforming TDRs: | |||||||||||||||||||||||||
Beginning balance | $ | 27,397 | $ | 26,497 | $ | 25,119 | $ | 31,309 | |||||||||||||||||
New modifications (1) | — | 3,676 | 4,187 | 3,804 | |||||||||||||||||||||
Charge-offs | (1,061 | ) | (68 | ) | (1,061 | ) | (68 | ) | |||||||||||||||||
Payoffs and payments, net | (3,730 | ) | (1,950 | ) | (5,639 | ) | (5,741 | ) | |||||||||||||||||
TDRs returned to accrual status | — | (110 | ) | — | (1,259 | ) | |||||||||||||||||||
TDRs placed on nonaccrual status | — | — | — | — | |||||||||||||||||||||
Ending balance | $ | 22,606 | $ | 28,045 | $ | 22,606 | $ | 28,045 | |||||||||||||||||
-1 | New modifications for the nine months ended September 30, 2014 represent TDRs acquired from ASB. | ||||||||||||||||||||||||
The following tables summarize loans modified as troubled debt restructurings during the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
Modifications (1) | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Total non-covered loans | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Change in amortization period or maturity | 1 | 34 | 34 | 34 | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | 2 | 3,642 | 3,642 | 3,556 | — | ||||||||||||||||||||
Total non-covered loans | 3 | $ | 3,676 | $ | 3,676 | $ | 3,590 | $ | — | ||||||||||||||||
-1 | The tables exclude modified loans that were paid off prior to the end of the period. | ||||||||||||||||||||||||
-2 | Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, 2014 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction (3) | 2 | $ | 368 | $ | 368 | $ | 337 | $ | — | ||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Real estate: | — | — | — | — | — | ||||||||||||||||||||
Commercial real estate: | — | — | — | — | — | ||||||||||||||||||||
Owner occupied | — | — | — | — | — | ||||||||||||||||||||
Interest rate reduction (3) | 1 | 199 | 199 | 187 | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Non-owner occupied | — | — | — | — | — | ||||||||||||||||||||
Interest rate reduction (3) | 3 | 3,573 | 3,573 | 3,469 | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | — | — | — | — | — | ||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Total non-covered loans | 6 | $ | 4,140 | $ | 4,140 | $ | 3,993 | $ | — | ||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Change in amortization period or maturity | 4 | 265 | 265 | 223 | 122 | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | 1 | 168 | 168 | 143 | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | 7 | 18,848 | 18,848 | 16,068 | — | ||||||||||||||||||||
Total non-covered loans | 12 | $ | 19,281 | $ | 19,281 | $ | 16,434 | $ | 122 | ||||||||||||||||
-1 | The tables exclude modified loans that were paid off prior to the end of the period. | ||||||||||||||||||||||||
-2 | Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. | ||||||||||||||||||||||||
-3 | New modifications for the nine months ended September 30, 2014 represent TDRs acquired from ASB. | ||||||||||||||||||||||||
As of September 30, 2014, there were no loans that were previously modified as a troubled debt restructuring within the previous 12 months that subsequently defaulted during the three and nine months ended September 30, 2014. |
Earnings_Per_Share_Reconciliat
Earnings Per Share Reconciliation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share Reconciliation | ' | ||||||||||||||||
8. EARNINGS PER SHARE RECONCILIATION | |||||||||||||||||
Basic earnings per common share are computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding during each period. The computation of diluted earnings per common share considers the number of tax-effected shares issuable upon the assumed exercise of outstanding common stock options. Antidilutive common shares are not included in the calculation of diluted earnings per common share. For the three and nine months ended September 30, 2014, shares deemed to be antidilutive, and thus excluded from the computation of earnings per common share, were 222,000 and 199,000 shares, respectively. For both the three and nine months ended September 30, 2013, shares deemed to be antidilutive, and thus excluded from the computation of earnings per common share, were 688,000 and 1.2 million shares, respectively. | |||||||||||||||||
The table below summarizes earnings per common share and diluted earnings per common share, and reconciles the numerator and denominator of both earnings per common share calculations. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Earnings per common share: | |||||||||||||||||
Net earnings | $ | 24,295 | $ | 24,239 | $ | 78,440 | $ | 70,320 | |||||||||
Less: Net earnings allocated to restricted stock | 134 | 74 | 409 | 218 | |||||||||||||
Net earnings allocated to common shareholders | $ | 24,161 | $ | 24,165 | $ | 78,031 | $ | 70,102 | |||||||||
Weighted average shares outstanding | 104,875 | 104,766 | 105,218 | 104,657 | |||||||||||||
Earnings per common share | $ | 0.23 | $ | 0.23 | $ | 0.74 | $ | 0.67 | |||||||||
Diluted earnings per common share: | |||||||||||||||||
Net income allocated to common shareholders | $ | 24,161 | $ | 24,165 | $ | 78,031 | $ | 70,102 | |||||||||
Weighted average shares outstanding | 104,875 | 104,766 | 105,218 | 104,657 | |||||||||||||
Incremental shares from assumed exercise of outstanding options | 531 | 451 | 542 | 330 | |||||||||||||
Diluted weighted average shares outstanding | 105,406 | 105,217 | 105,760 | 104,987 | |||||||||||||
Diluted earnings per common share | $ | 0.23 | $ | 0.23 | $ | 0.74 | $ | 0.67 | |||||||||
Fair_Value_Information
Fair Value Information | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Information | ' | ||||||||||||||||||||
9. FAIR VALUE INFORMATION | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | |||||||||||||||||||||
The following disclosure provides the fair value information for financial assets and liabilities as of September 30, 2014. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). | |||||||||||||||||||||
• | Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets. | ||||||||||||||||||||
• | 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 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flows and similar techniques. | ||||||||||||||||||||
There were no transfers in and out of Level 1 and Level 2 measurement during the nine months ended September 30, 2014 and 2013. | |||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||
The following is a description of valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial instruments not recorded at fair value. | |||||||||||||||||||||
Cash and Cash Equivalents— The carrying amount of cash and cash equivalents is considered to approximate fair value due to the liquidity of these instruments. | |||||||||||||||||||||
Interest-Bearing Balances Due from Depository Institutions — The carrying value of due from depository institutions is considered to approximate fair value due to the short-term nature of these deposits. | |||||||||||||||||||||
FHLB Stock — The carrying amount of FHLB stock approximates fair value, as the stock may be sold back to the FHLB at carrying value. | |||||||||||||||||||||
Investment Securities Held–to- Maturity — Investment securities held-to-maturity are valued based upon quotes obtained from an independent third-party pricing service. The Company categorized its held-to-maturity investment as a level 3 valuation. | |||||||||||||||||||||
Investment Securities Available-for-Sale — Investment securities available-for-sale are generally valued based upon quotes obtained from an independent third-party pricing service, which uses evaluated pricing applications and model processes. Observable market inputs, such as, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data are considered as part of the evaluation. The inputs are related directly to the security being evaluated, or indirectly to a similarly situated security. Market assumptions and market data are utilized in the valuation models. The Company reviews the market prices provided by the third-party pricing service for reasonableness based on the Company’s understanding of the market place and credit issues related to the securities. The Company has not made any adjustments to the market quotes provided by them and accordingly, the Company categorized its investment portfolio within Level 2 of the fair value hierarchy. | |||||||||||||||||||||
Loans Held-for-Sale — Loans held-for-sale are carried at the lower of cost or fair value. The fair value is derived from third party sale analysis, existing sale agreements, or appraisal reports on the loans’ underlying collateral. | |||||||||||||||||||||
Non-Covered Loans — The carrying amount of loans and lease finance receivables is their contractual amounts outstanding, reduced by deferred net loan origination fees, purchase price discounts and the allocable portion of the allowance for loan losses. | |||||||||||||||||||||
The fair value of loans, other than loans on nonaccrual status, was estimated by discounting the remaining contractual cash flows using the estimated current rate at which similar loans would be made to borrowers with similar credit risk characteristics and for the same remaining maturities, reduced by deferred net loan origination fees and the allocable portion of the allowance for loan losses. Accordingly, in determining the estimated current rate for discounting purposes, no adjustment has been made for any change in borrowers’ specific credit risks since the origination or purchase of such loans. Rather, the allocable portion of the allowance for loan losses and the purchase price discounts are considered to provide for such changes in estimating fair value. As a result, this fair value is not necessarily the value which would be derived using an exit price. These loans are included within Level 3 of the fair value hierarchy. | |||||||||||||||||||||
Non-covered impaired loans and OREO are generally measured using the fair value of the underlying collateral, which is determined based on the most recent appraisal information received, less costs to sell. Appraised values may be adjusted based on factors such as the changes in market conditions from the time of valuation or discounted cash flows of the property. As such, these loans and OREO fall within Level 3 of the fair value hierarchy. | |||||||||||||||||||||
The majority of our commitments to extend credit carry current market interest rates if converted to loans. Because these commitments are generally unassignable by either the borrower or us, they only have value to the borrower and us. The estimated fair value approximates the recorded deferred fee amounts and is excluded from the following table because it is not material. | |||||||||||||||||||||
Covered Loans — Covered loans were measured at fair value on the date of acquisition. Thereafter, covered loans are not measured at fair value on a recurring basis. The above valuation discussion for non-covered loans is applicable to covered loans following their acquisition date. | |||||||||||||||||||||
Swaps — The fair value of the interest rate swap contracts are provided by our counterparty using a system that constructs a yield curve based on cash LIBOR rates, Eurodollar futures contracts, and 3-year through 30-year swap rates. The yield curve determines the valuations of the interest rate swaps. Accordingly, the swap is categorized as a Level 2 valuation. | |||||||||||||||||||||
Deposits & Borrowings — The amounts payable to depositors for demand, savings, and money market accounts, and short-term borrowings are considered to approximate fair value. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value of long-term borrowings and junior subordinated debentures is estimated using the rates currently offered for borrowings of similar remaining maturities. Interest-bearing deposits and borrowings are included within Level 2 of the fair value hierarchy. | |||||||||||||||||||||
Accrued Interest Receivable/Payable — The amounts of accrued interest receivable on loans and lease finance receivables and investments and accrued interest payable on deposits and borrowings are considered to approximate fair value and are included within Level 2 of the fair value hierarchy. | |||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||
The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
September 30, 2014 | Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||
Assets | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Investment securities - AFS: | |||||||||||||||||||||
Government agency | $ | 329,199 | $ | — | $ | 329,199 | $ | — | |||||||||||||
Residential mortgage-backed securities | 1,915,751 | — | 1,915,751 | — | |||||||||||||||||
CMOs / REMICs - residential | 321,955 | — | 321,955 | — | |||||||||||||||||
Municipal bonds | 588,013 | — | 588,013 | — | |||||||||||||||||
Other securities | 5,138 | — | 5,138 | — | |||||||||||||||||
Total investment securities - AFS | 3,160,056 | — | 3,160,056 | — | |||||||||||||||||
Interest rate swaps | 9,317 | — | 9,317 | — | |||||||||||||||||
Total assets | $ | 3,169,373 | $ | — | $ | 3,169,373 | $ | — | |||||||||||||
Description of liability | |||||||||||||||||||||
Interest rate swaps | $ | 9,317 | $ | — | $ | 9,317 | $ | — | |||||||||||||
Total liabilities | $ | 9,317 | $ | — | $ | 9,317 | $ | — | |||||||||||||
Carrying Value at | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||
Assets | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Investment securities - AFS: | |||||||||||||||||||||
Government agency | $ | 326,525 | $ | — | $ | 326,525 | $ | — | |||||||||||||
Residential mortgage-backed securities | 1,379,943 | — | 1,379,943 | — | |||||||||||||||||
CMOs / REMICs - residential | 366,175 | — | 366,175 | — | |||||||||||||||||
Municipal bonds | 586,091 | — | 586,091 | — | |||||||||||||||||
Other securities | 4,908 | — | 4,908 | — | |||||||||||||||||
Total investment securities - AFS | 2,663,642 | — | 2,663,642 | — | |||||||||||||||||
Interest rate swaps | 10,846 | — | 10,846 | — | |||||||||||||||||
Total assets | $ | 2,674,488 | $ | — | $ | 2,674,488 | $ | — | |||||||||||||
Description of liability | |||||||||||||||||||||
Interest rate swaps | $ | 10,846 | $ | — | $ | 10,846 | $ | — | |||||||||||||
Total liabilities | $ | 10,846 | $ | — | $ | 10,846 | $ | — | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | |||||||||||||||||||||
We may be required to measure certain assets at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a non-recurring basis that were still held on the balance sheet at September 30, 2014 and December 31, 2013, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets for investments that experienced losses during the period. | |||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | Total Losses | |||||||||||||||||
September 30, 2014 | Active Markets | Other | Unobservable | For the Nine | |||||||||||||||||
for Identical | Observable | Inputs | Months Ended | ||||||||||||||||||
Assets | Inputs | (Level 3) | September 30, 2014 | ||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Impaired loans-non-covered: | |||||||||||||||||||||
Commercial and industrial | $ | 2,998 | $ | — | $ | — | $ | 2,998 | $ | 911 | |||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 1,518 | — | — | 1,518 | 117 | ||||||||||||||||
Dairy & livestock and agribusiness | 1,463 | — | — | 1,463 | 1,061 | ||||||||||||||||
Consumer and other loans | 16 | — | — | 16 | 5 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Covered | 275 | — | — | 275 | 65 | ||||||||||||||||
Total assets | $ | 6,270 | $ | — | $ | — | $ | 6,270 | $ | 2,159 | |||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | Total Losses | |||||||||||||||||
December 31, 2013 | Active Markets | Other | Unobservable | For the Year Ended | |||||||||||||||||
for Identical | Observable | Inputs | December 31, 2013 | ||||||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Impaired loans-non-covered: | |||||||||||||||||||||
Commercial and industrial | $ | 529 | $ | — | $ | — | $ | 529 | $ | 627 | |||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||||
Dairy & livestock and agribusiness | 11,899 | — | — | 11,899 | 2,096 | ||||||||||||||||
Consumer and other loans | 2 | — | — | 2 | 2 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Covered | 504 | — | — | 504 | 434 | ||||||||||||||||
Total assets | $ | 12,934 | $ | — | $ | — | $ | 12,934 | $ | 3,159 | |||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The following disclosure presents estimated fair value of financial instruments. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to develop the estimates of fair value. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company may realize in a current market exchange as of September 30, 2014 and December 31, 2013, respectively. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 240,056 | $ | 240,056 | $ | — | $ | — | $ | 240,056 | |||||||||||
Interest-earning balances due from depository institutions | 18,314 | — | 18,314 | — | 18,314 | ||||||||||||||||
FHLB stock | 25,338 | — | 25,338 | — | 25,338 | ||||||||||||||||
Investment securities available-for-sale | 3,160,056 | — | 3,160,056 | — | 3,160,056 | ||||||||||||||||
Investment securities held-to-maturity | 1,598 | — | — | 2,194 | 2,194 | ||||||||||||||||
Non-covered loans held-for-sale | — | — | — | — | — | ||||||||||||||||
Total loans, net of allowance for loan losses | 3,646,654 | — | — | 3,680,071 | 3,680,071 | ||||||||||||||||
Accrued interest receivable | 23,459 | — | 23,459 | — | 23,459 | ||||||||||||||||
Swaps | 9,317 | — | 9,317 | — | 9,317 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Noninterest-bearing | $ | 3,037,103 | $ | 3,037,103 | $ | — | $ | — | $ | 3,037,103 | |||||||||||
Interest-bearing | 2,722,190 | — | 2,723,117 | — | 2,723,117 | ||||||||||||||||
Borrowings | 728,234 | — | 743,372 | — | 743,372 | ||||||||||||||||
Junior subordinated debentures | 25,774 | — | 25,993 | — | 25,993 | ||||||||||||||||
Accrued interest payable | 1,120 | — | 1,120 | — | 1,120 | ||||||||||||||||
Swaps | 9,317 | — | 9,317 | — | 9,317 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 94,693 | $ | 94,693 | $ | — | $ | — | $ | 94,693 | |||||||||||
Interest-earning balances due from depository institutions | 70,000 | — | 70,000 | — | 70,000 | ||||||||||||||||
FHLB stock | 32,331 | — | 32,331 | — | 32,331 | ||||||||||||||||
Investment securities available-for-sale | 2,663,642 | — | 2,663,642 | — | 2,663,642 | ||||||||||||||||
Investment securities held-to-maturity | 1,777 | — | — | 2,296 | 2,296 | ||||||||||||||||
Non-covered loans held-for-sale | 3,667 | — | — | 8,897 | 8,897 | ||||||||||||||||
Total loans, net of allowance for loan losses | 3,470,996 | — | — | 3,527,725 | 3,527,725 | ||||||||||||||||
Accrued interest receivable | 22,051 | — | 22,051 | — | 22,051 | ||||||||||||||||
Swaps | 10,846 | — | 10,846 | — | 10,846 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Noninterest-bearing | $ | 2,562,980 | $ | 2,562,980 | $ | — | $ | — | $ | 2,562,980 | |||||||||||
Interest-bearing | 2,327,651 | — | 2,328,488 | — | 2,328,488 | ||||||||||||||||
Borrowings | 911,457 | — | 932,408 | — | 932,408 | ||||||||||||||||
Junior subordinated debentures | 25,774 | — | 25,819 | — | 25,819 | ||||||||||||||||
Accrued interest payable | 1,111 | — | 1,111 | — | 1,111 | ||||||||||||||||
Swaps | 10,846 | — | 10,846 | — | 10,846 | ||||||||||||||||
The fair value estimates presented herein are based on pertinent information available to management as of September 30, 2014 and December 31, 2013. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date, and therefore, current estimates of fair value may differ significantly from the amounts presented above. |
Business_Segments
Business Segments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Business Segments | ' | ||||||||||||||||||||
10. BUSINESS SEGMENTS | |||||||||||||||||||||
The Company has identified two principal reportable segments: Business Financial and Commercial Banking Centers (“Centers”) and the Treasury Department. The Company’s subsidiary bank has 40 Business Financial Centers and six Commercial Banking Centers organized in geographic regions, which are the focal points for customer sales and services. The Company utilizes an internal reporting system to measure the performance of various operating segments within the Bank which is the basis for determining the Bank’s reportable segments. The chief operating decision maker (currently our CEO) regularly reviews the financial information of these segments in deciding how to allocate resources and to assess performance. Centers are considered one operating segment as their products and services are similar and are sold to similar types of customers, have similar production and distribution processes, have similar economic characteristics, and have similar reporting and organizational structures. The Treasury Department’s primary focus is managing the Bank’s investments, liquidity and interest rate risk. Information related to the Company’s remaining operating segments, which include construction lending, dairy & livestock lending, leasing, CitizensTrust, and centralized functions have been aggregated and included in “Other.” In addition, the Company allocates internal funds transfer pricing to the segments using a methodology that charges users of funds interest expense and credits providers of funds interest income with the net effect of this allocation being recorded in administration. | |||||||||||||||||||||
The following table represents the selected financial information for these two business segments. GAAP does not have an authoritative body of knowledge regarding the management accounting used in presenting segment financial information. The accounting policies for each of the business units is the same as those policies identified for the consolidated Company and disclosed in Note 3 — Summary of Significant Accounting Policies. The income numbers represent the actual income and expenses of each business unit. In addition, each segment has allocated income and expenses based on management’s internal reporting system, which allows management to determine the performance of each of its business units. Loan fees included in the Centers category are the actual loan fees paid to the Company by its customers. These fees are eliminated and deferred in the “Other” category, resulting in deferred loan fees for the consolidated financial statements. All income and expense items not directly associated with the two business segments are grouped in the “Other” category. Future changes in the Company’s management structure or reporting methodologies may result in changes in the measurement of operating segment results. | |||||||||||||||||||||
The following tables present the operating results and other key financial measures for the individual operating segments for the periods indicated: | |||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 36,723 | $ | 18,397 | $ | 10,175 | $ | — | $ | 65,295 | |||||||||||
Credit for funds provided (1) | 8,190 | — | 12,037 | (20,227 | ) | — | |||||||||||||||
Total interest income | 44,913 | 18,397 | 22,212 | (20,227 | ) | 65,295 | |||||||||||||||
Interest expense | 1,637 | 2,415 | 5 | — | 4,057 | ||||||||||||||||
Charge for funds used (1) | 1,490 | 14,374 | 4,363 | (20,227 | ) | — | |||||||||||||||
Total interest expense | 3,127 | 16,789 | 4,368 | (20,227 | ) | 4,057 | |||||||||||||||
Net interest income | 41,786 | 1,608 | 17,844 | — | 61,238 | ||||||||||||||||
Provision for loan losses | — | — | (1,000 | ) | — | (1,000 | ) | ||||||||||||||
Net interest income after provision for loan losses | 41,786 | 1,608 | 18,844 | — | 62,238 | ||||||||||||||||
Noninterest income | 5,288 | — | 2,721 | — | 8,009 | ||||||||||||||||
Noninterest expense | 12,373 | 186 | 19,922 | — | 32,481 | ||||||||||||||||
Segment pre-tax profit | $ | 34,701 | $ | 1,422 | $ | 1,643 | $ | — | $ | 37,766 | |||||||||||
Segment assets as of September 30, 2014 | $ | 6,089,389 | $ | 3,431,467 | $ | 789,656 | $ | (2,887,663 | ) | $ | 7,422,849 | ||||||||||
-1 | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 36,024 | $ | 13,443 | $ | 8,607 | $ | — | $ | 58,074 | |||||||||||
Credit for funds provided (1) | 6,782 | — | 10,667 | (17,449 | ) | — | |||||||||||||||
Total interest income | 42,806 | 13,443 | 19,274 | (17,449 | ) | 58,074 | |||||||||||||||
Interest expense | 1,551 | 2,435 | 115 | — | 4,101 | ||||||||||||||||
Charge for funds used (1) | 919 | 11,595 | 4,935 | (17,449 | ) | — | |||||||||||||||
Total interest expense | 2,470 | 14,030 | 5,050 | (17,449 | ) | 4,101 | |||||||||||||||
Net interest income | 40,336 | (587 | ) | 14,224 | — | 53,973 | |||||||||||||||
Provision for loan losses | — | — | (3,750 | ) | — | (3,750 | ) | ||||||||||||||
Net interest income after provision for loan losses | 40,336 | (587 | ) | 17,974 | — | 57,723 | |||||||||||||||
Noninterest income | 5,306 | — | (349 | ) | — | 4,957 | |||||||||||||||
Noninterest expense | 11,514 | 178 | 14,022 | — | 25,714 | ||||||||||||||||
Segment pre-tax profit (loss) | $ | 34,128 | $ | (765 | ) | $ | 3,603 | $ | — | $ | 36,966 | ||||||||||
Segment assets as of September 30, 2013 | $ | 5,305,357 | $ | 2,855,964 | $ | 732,999 | $ | (2,337,037 | ) | $ | 6,557,283 | ||||||||||
(1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. | |||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 105,212 | $ | 52,504 | $ | 29,857 | $ | — | $ | 187,573 | |||||||||||
Credit for funds provided (1) | 22,924 | — | 34,914 | (57,838 | ) | — | |||||||||||||||
Total interest income | 128,136 | 52,504 | 64,771 | (57,838 | ) | 187,573 | |||||||||||||||
Interest expense | 4,835 | 7,178 | 221 | — | 12,234 | ||||||||||||||||
Charge for funds used (1) | 3,817 | 40,607 | 13,414 | (57,838 | ) | — | |||||||||||||||
Total interest expense | 8,652 | 47,785 | 13,635 | (57,838 | ) | 12,234 | |||||||||||||||
Net interest income | 119,484 | 4,719 | 51,136 | — | 175,339 | ||||||||||||||||
Provision for loan losses | — | — | (16,100 | ) | — | (16,100 | ) | ||||||||||||||
Net interest income after provision for loan losses | 119,484 | 4,719 | 67,236 | — | 191,439 | ||||||||||||||||
Noninterest income | 15,232 | — | 11,325 | — | 26,557 | ||||||||||||||||
Noninterest expense | 35,723 | 564 | 58,675 | — | 94,962 | ||||||||||||||||
Segment pre-tax profit | $ | 98,993 | $ | 4,155 | $ | 19,886 | $ | — | $ | 123,034 | |||||||||||
Segment assets as of September 30, 2014 | $ | 6,089,389 | $ | 3,431,467 | $ | 789,656 | $ | (2,887,663 | ) | $ | 7,422,849 | ||||||||||
(1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 106,660 | $ | 37,872 | $ | 28,948 | $ | — | $ | 173,480 | |||||||||||
Credit for funds provided (1) | 19,603 | — | 31,052 | (50,655 | ) | — | |||||||||||||||
Total interest income | 126,263 | 37,872 | 60,000 | (50,655 | ) | 173,480 | |||||||||||||||
Interest expense | 4,495 | 7,270 | 558 | — | 12,323 | ||||||||||||||||
Charge for funds used (1) | 3,025 | 32,973 | 14,657 | (50,655 | ) | — | |||||||||||||||
Total interest expense | 7,520 | 40,243 | 15,215 | (50,655 | ) | 12,323 | |||||||||||||||
Net interest income | 118,743 | (2,371 | ) | 44,785 | — | 161,157 | |||||||||||||||
Provision for loan losses | — | — | (9,950 | ) | — | (9,950 | ) | ||||||||||||||
Net interest income after provision for loan losses | 118,743 | (2,371 | ) | 54,735 | — | 171,107 | |||||||||||||||
Noninterest income | 15,889 | 2,094 | 1,414 | — | 19,397 | ||||||||||||||||
Noninterest expense | 34,410 | 539 | 49,811 | — | 84,760 | ||||||||||||||||
Segment pre-tax profit | $ | 100,222 | $ | (816 | ) | $ | 6,338 | $ | — | $ | 105,744 | ||||||||||
Segment assets as of September 30, 2013 | $ | 5,305,357 | $ | 2,855,964 | $ | 732,999 | $ | (2,337,037 | ) | $ | 6,557,283 | ||||||||||
-1 | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
11. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||
The Bank is exposed to certain risks relating to its ongoing business operations and utilizes interest rate swap agreements (“swaps”) as part of its asset/liability management strategy to help manage its interest rate risk position. As of September 30, 2014, the Bank has entered into 77 interest-rate swap agreements with customers, all of which also involve a counterparty bank. The swap agreements are not designated as hedging instruments. The purpose of entering into offsetting derivatives not designated as a hedging instrument is to provide the Bank a variable-rate loan receivable and provide the customer the financial effects of a fixed-rate loan without creating significant volatility in the Bank’s earnings. | |||||||||||||
The structure of the swaps is as follows. The Bank enters into a swap with its customers to allow them to convert variable rate loans to fixed rate loans, and at the same time, the Bank enters into a swap with the counterparty bank to allow the Bank to pass on the interest-rate risk associated with fixed rate loans. The net effect of the transaction allows the Bank to receive interest on the loan from the customer at a variable rate based on LIBOR plus a spread. The changes in the fair value of the swaps primarily offset each other and therefore should not have a significant impact on the Company’s results of operations, although the Company does incur credit and counterparty risk with respect to performance on the swap agreements by the Bank’s customer and counterparty, respectively. Our interest rate swap derivatives are subject to a master netting arrangement with one counterparty bank. None of our derivative assets and liabilities are offset in the balance sheet. | |||||||||||||
We believe our risk of loss associated with our counterparty borrowers related to interest rate swaps is mitigated as the loans with swaps are underwritten to take into account potential additional exposure, although there can be no assurances in this regard since the performance of our swaps is subject to market and counterparty risk. | |||||||||||||
Balance Sheet Classification of Derivative Financial Instruments | |||||||||||||
As of September 30, 2014 and December 31, 2013, the total notional amount of the Company’s swaps was $200.5 million, and $221.5 million, respectively. The location of the asset and liability, and their respective fair values are summarized in the table below: | |||||||||||||
September 30, 2014 | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Location | Value | Location | Value | ||||||||||
(Dollars in thousands) | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest rate swaps | Other assets | $ | 9,317 | Other liabilities | $ | 9,317 | |||||||
Total derivatives | $ | 9,317 | $ | 9,317 | |||||||||
December 31, 2013 | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Location | Value | Location | Value | ||||||||||
(Dollars in thousands) | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest rate swaps | Other assets | $ | 10,846 | Other liabilities | $ | 10,846 | |||||||
Total derivatives | $ | 10,846 | $ | 10,846 | |||||||||
The Effect of Derivative Financial Instruments on the Condensed Consolidated Statements of Earnings | |||||||||||||
There was no gain recognized in the condensed consolidated statements of earnings for the three and nine months ended September 30, 2014 and 2013. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Other Comprehensive Income (Loss) | ' | ||||||||||||
12. OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
The tables below provide a summary of the components of other comprehensive income (“OCI”) for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||
For the Three Months Ended | |||||||||||||
September 30, 2014 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | (10,291 | ) | $ | (4,322 | ) | $ | (5,969 | ) | ||||
Net change | $ | (10,291 | ) | $ | (4,322 | ) | $ | (5,969 | ) | ||||
For the Three Months Ended | |||||||||||||
September 30, 2013 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 421 | $ | 176 | $ | 245 | |||||||
Net change | $ | 421 | $ | 176 | $ | 245 | |||||||
For the Nine Months Ended | |||||||||||||
September 30, 2014 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 47,272 | $ | 19,854 | $ | 27,418 | |||||||
Net change | $ | 47,272 | $ | 19,854 | $ | 27,418 | |||||||
For the Nine Months Ended | |||||||||||||
September 30, 2013 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | (65,129 | ) | $ | (27,355 | ) | $ | (37,774 | ) | ||||
Net realized gains reclassified into earnings (1) | (2,094 | ) | (879 | ) | (1,215 | ) | |||||||
Net change | $ | (67,223 | ) | $ | (28,234 | ) | $ | (38,989 | ) | ||||
-1 | Net realized gains are included in noninterest income in the unaudited condensed consolidated statements of earnings and comprehensive income for the nine months ended September 30, 2013. | ||||||||||||
The following table provides a summary of the change in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013: | |||||||||||||
Investment Securities | |||||||||||||
Available-for-Sale | |||||||||||||
(Dollars in thousands) | |||||||||||||
Balance, January 1, 2014 | $ | (9,330 | ) | ||||||||||
Net change in fair value recorded in accumulated OCI | 27,418 | ||||||||||||
Net realized losses reclassified into earnings | — | ||||||||||||
Balance, September 30, 2014 | $ | 18,088 | |||||||||||
Investment Securities | |||||||||||||
Available-for-Sale | |||||||||||||
(Dollars in thousands) | |||||||||||||
Balance, January 1, 2013 | $ | 43,251 | |||||||||||
Net change in fair value recorded in accumulated OCI | (37,774 | ) | |||||||||||
Net realized gains reclassified into earnings | (1,215 | ) | |||||||||||
Balance, September 30, 2013 | $ | 4,262 | |||||||||||
Balance_Sheet_Offsetting
Balance Sheet Offsetting | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Balance Sheet Offsetting | ' | ||||||||||||||||||||||||
13. BALANCE SHEET OFFSETTING | |||||||||||||||||||||||||
Assets and liabilities relating to certain financial instruments, including, derivatives and securities sold under repurchase agreements (“repurchase agreements”), may be eligible for offset in the condensed consolidated balance sheets as permitted under accounting guidance. As noted above, our interest rate swap derivatives are subject to a master netting arrangement with one counterparty bank. Our interest rate swap derivatives require the Company to pledge investment securities as collateral based on certain risk thresholds. Investment securities that have been pledged by the Company to the counterparty bank continue to be reported in the Company’s condensed consolidated balance sheets unless the Company defaults. In November 2006, we began offering a repurchase agreement product to our customers, which include master netting agreements that allow for the netting of collateral positions. This product, known as Citizens Sweep Manager, sells certain of our securities overnight to our customers under an agreement to repurchase them the next day. The repurchase agreements are not offset in the condensed consolidated balances. | |||||||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | Net | |||||||||||||||||||||
Recognized in the | offset in the | Assets Presented | the Condensed Consolidated | Amount | |||||||||||||||||||||
Condensed | Condensed | in the Condensed | Balance Sheets | ||||||||||||||||||||||
Consolidated | Consolidated | Consolidated | |||||||||||||||||||||||
Balance Sheets | Balance Sheets | Balance Sheets | Financial | Collateral | |||||||||||||||||||||
Instruments | Pledged | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 9,317 | $ | — | $ | — | $ | 9,317 | $ | — | $ | 9,317 | |||||||||||||
Total | $ | 9,317 | $ | — | $ | — | $ | 9,317 | $ | — | $ | 9,317 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 9,888 | $ | (571 | ) | $ | 9,317 | $ | 571 | $ | (16,671 | ) | $ | (6,783 | ) | ||||||||||
Repurchase agreements | 528,824 | — | 528,824 | — | (650,185 | ) | (121,361 | ) | |||||||||||||||||
Total | $ | 538,712 | $ | (571 | ) | $ | 538,141 | $ | 571 | $ | (666,856 | ) | $ | (128,144 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 10,846 | $ | — | $ | — | $ | 10,846 | $ | — | $ | 10,846 | |||||||||||||
Total | $ | 10,846 | $ | — | $ | — | $ | 10,846 | $ | — | $ | 10,846 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 12,908 | $ | (2,062 | ) | $ | 10,846 | $ | 2,062 | $ | (16,179 | ) | $ | (3,271 | ) | ||||||||||
Repurchase agreements | 643,251 | — | 643,251 | — | (649,385 | ) | (6,134 | ) | |||||||||||||||||
Total | $ | 656,159 | $ | (2,062 | ) | $ | 654,097 | $ | 2,062 | $ | (665,564 | ) | $ | (9,405 | ) | ||||||||||
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Accounting Policies [Abstract] | ' | |||
Reclassification | ' | |||
Reclassification – Certain amounts in the prior periods’ condensed consolidated financial statements and related footnote disclosures have been reclassified to conform to the current presentation with no impact on previously reported net income or stockholders’ equity. | ||||
Investment Securities | ' | |||
Investment Securities — The Company classifies as held-to-maturity those debt securities that the Company has the positive intent and ability to hold to maturity. Securities classified as trading are those securities that are bought and held principally for the purpose of selling them in the near term. All other debt and equity securities are classified as available-for-sale. Securities held-to-maturity are accounted for at cost and adjusted for amortization of premiums and accretion of discounts. Trading securities are accounted for at fair value with the unrealized gains and losses being included in current earnings. Available-for-sale securities are accounted for at fair value, with the net unrealized gains and losses, net of income tax effects, presented as a separate component of stockholders’ equity. Realized gains and losses on sales of securities are recognized in earnings at the time of sale and are determined on a specific-identification basis. Purchase premiums and discounts are recognized in interest income using the effective-yield method over the terms of the securities. For mortgage-backed securities (“MBS”), the amortization or accretion is based on estimated average lives of the securities. The lives of these securities can fluctuate based on the amount of prepayments received on the underlying collateral of the securities. The Company’s investment in the Federal Home Loan Bank of San Francisco (“FHLB”) stock is carried at cost. | ||||
At each reporting date, securities are assessed to determine whether there is an other-than-temporary impairment (“OTTI”). Other-than-temporary impairment on investment securities is recognized in earnings when there are credit losses on a debt security for which management does not intend to sell and for which it is more-likely-than-not that the Company will not have to sell prior to recovery of the noncredit impairment. In those situations, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the debt security’s amortized cost and its fair value would be included in other comprehensive income. | ||||
Loans and Lease Finance Receivables | ' | |||
Loans and Lease Finance Receivables — Non-covered loans and lease finance receivables that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, less deferred net loan origination fees and purchase price discounts. In the ordinary course of business, the Company enters into commitments to extend credit to its customers. To the extent that such commitments are unfunded, the related unfunded amounts are not reflected in the accompanying condensed consolidated financial statements. | ||||
The Company receives collateral to support loans, lease finance receivables, and commitments to extend credit for which collateral is deemed necessary. The most significant categories of collateral are real estate, principally commercial and industrial income-producing properties, real estate mortgages, and assets utilized in dairy & livestock and agribusiness, and various personal property assets utilized in commercial and industrial business governed by the Uniform Commercial Code. | ||||
Nonrefundable fees and direct costs associated with the origination or purchase of non-covered loans are deferred and netted against outstanding loan balances. The deferred net loan fees and costs and purchase price discounts are recognized in interest income over the loan term using the effective-yield method. | ||||
Interest on non-covered loans and lease finance receivables is credited to income based on the principal amounts of such loans or receivables outstanding. Non-covered loans are considered delinquent when principal or interest payments are past due 30 days or more and generally remain on accrual status between 30 and 89 days past due. Interest income is not recognized on non-covered loans and lease finance receivables when collection of interest is deemed by management to be doubtful. Non-covered loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. In general, the accrual of interest on non-covered loans is discontinued when the loan becomes 90 days past due, or when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered in determining that the full collection of principal and interest is no longer probable include cash flow and liquidity of the borrower or property, the financial position of the guarantors and their willingness to support the loan as well as other factors, and this determination involves significant judgment. When an asset is placed on nonaccrual status, previously accrued but unpaid interest is reversed against income. Subsequent collections of cash are applied as reductions to the principal balance unless the loan is returned to accrual status. Interest is not recognized using a cash-basis method. Nonaccrual loans may be restored to accrual status when principal and interest become current and when the borrower is able to demonstrate payment performance for a sustained period, typically for six months. A nonaccrual loan may return to accrual status sooner based on other significant events or mitigating circumstances. This policy is consistently applied to all classes of non-covered financing receivables. | ||||
Troubled Debt Restructurings | ' | |||
Troubled Debt Restructurings — Loans are reported as a Troubled Debt Restructuring (“TDR”) if the Company for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Types of modifications that may be considered concessions, which in turn result in a TDR include, but are not limited to, (i) a reduction of the stated interest rate for the remaining original life of the debt, (ii) an extension of the maturity date or dates at a stated interest rate lower than the current market rate for new debt with similar risk, (iii) a reduction of the face amount or maturity amount of the debt as stated in the instrument or other agreement, or (iv) a reduction of interest. As a result of these concessions, restructured loans are considered impaired, and the measurement of impairment is based on the Company’s policy for impaired loans. In addition, the Company may provide a concession to the debtor where it offers collateral and the value of such collateral is significant in proportion to the nature of the concession requested, and it substantially reduces the Company’s risk of loss. In such cases, these modifications are not considered a TDR as, in substance, no concession was made as a result of the significant additional collateral obtained. | ||||
When determining whether or not a loan modification is a TDR under ASC 310-40, the Company evaluates loan modification requests from borrowers experiencing financial difficulties on a case-by-case basis. Any such modifications granted are unique to the borrower’s circumstances. Because of the Company’s focus on the commercial lending sector, each business customer has unique attributes, which in turn means that modifications of loans to those customers are not easily categorized by type, key features, or other terms, but are evaluated individually based on all relevant facts and circumstances pertaining to the modification request and the borrower’s/guarantor’s financial condition at the time of the request. The evaluation of whether or not a borrower is experiencing financial difficulties will include, among other relevant factors considered by the Company, a review of significant factors such as (i)whether the borrower is in default on any of its debt, (ii) whether the borrower is experiencing payment delinquency, (iii) whether the global cash flows of the borrower and the owner guarantor(s) of the borrower have diminished below what is necessary to service existing debt obligations, (iv) whether the borrowers’ forecasted cash flows will be insufficient to service the debt in future periods or in accordance with the contractual terms of the existing agreement through maturity, (v) whether the borrower is unable to refinance the subject debt from other financing sources with similar terms, and (vi) whether the borrower is in jeopardy as a going-concern and/or considering bankruptcy. In any case, the debtor is presumed to be experiencing financial difficulties if the Company determines it is probable the debtor will default on the original loan if the modification is not granted. | ||||
The types of loans subject to modification vary greatly, but during the subject period are concentrated in commercial and industrial loans, dairy and agricultural loans, and term loans to commercial real estate investors. Some examples of key features include payment deferrals and delays, interest rate reductions, and extensions or renewals where the contract rate may or may not be below the market rate of interest for debt with similar characteristics as those of the modified debt. The typical length of the modified terms ranges from three (3) to twelve (12) months; however, all actual modified terms will depend on the facts, circumstances and attributes of the specific borrower requesting a modification. In general, after a careful evaluation of all relevant facts and circumstances taken together, including the nature of any concession, certain modification requests will result in troubled debt restructurings while certain other modifications will not, pursuant to the criteria and judgments as discussed throughout this report. In certain cases, modification requests for delays or deferrals of principal were evaluated and determined to be exempt from TDR reporting because they constituted insignificant delays under ASC 310-40-15. | ||||
In situations where the Company has determined that the borrower is experiencing financial difficulties and is evaluating whether a concession is insignificant, and therefore does not result in a troubled debt restructuring, such analysis is based on an evaluation of both the amount and the timing of the restructured payments, including the following factors: | ||||
1 | Whether the amount of the restructured payments subject to delay is insignificant relative to the unpaid principal balance or collateral value of the debt and will result in an insignificant shortfall in the contractual amount due; and | |||
2 | The delay is insignificant relative to any of the following: | |||
• | The frequency of payments due; | |||
• | The debt’s original contractual maturity; or | |||
• | The debt’s original expected duration. | |||
Most modified loans not classified and accounted for as troubled debt restructurings were performing and paying as agreed under their original terms in the six-month period immediately preceding a request for modification. Subsequently, these modified loans have continued to perform under the modified terms and deferrals that amounted to insignificant delays, which in turn is supported by the facts and circumstances of each individual customer and loan as described above. Payment performance continues to be monitored once modifications are made. The Company’s favorable experience regarding “re-defaults” under modified terms, or upon return of the loan to its original terms, indicates that such relief may improve ultimate collection and reduces the Company’s risk of loss. | ||||
Impaired Loans | ' | |||
Impaired Loans — A loan is generally considered impaired when based on current events and information it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. A loan, including a restructured loan, for which there is an insignificant delay relative to the frequency of payments due, and/or the original contractual maturity, is not considered an impaired loan. Generally, impaired loans include loans on nonaccrual status and TDRs. | ||||
The Company’s policy is to record a specific valuation allowance, which is included in the allowance for loan losses, or to charge off that portion of an impaired loan that represents the impairment or shortfall amount as determined utilizing one of the three methods described in ASC 310-10-35-22. Impairment on non-collateral dependent restructured loans is measured by comparing the present value of expected future cash flows on the restructured loans discounted at the interest rate of the original loan agreement to the loan’s carrying value. The impairment amount, if any, is generally charged off and recorded against the allowance for loan losses at the time impairment is measurable and a probable loss is determined. As a result, most of the TDRs have no specific allowance allocated because, consistent with the Company’s stated practice, any impairment is typically charged off in the period in which it is identified. The Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may also measure impairment based on an observable market price for the loan, or the value of the collateral, for collateral dependent loans. Impairment on collateral dependent restructured loans is measured by determining the amount by which our recorded investment in the impaired loan exceeds the fair value of the collateral less estimated selling costs. The fair value is generally determined by one or more appraisals of the collateral, performed by a Company-approved third-party independent appraiser. The majority of impaired loans that are collateral dependent are charged off down to their estimated fair value of the collateral (less selling costs) at each reporting date based on current appraised value. | ||||
Appraisals of the collateral for impaired collateral dependent loans are typically ordered at the time the loan is identified as showing signs of inherent weakness. These appraisals are normally updated at least annually, or more frequently, if there are concerns or indications that the value of the collateral may have changed significantly since the previous appraisal. On an exception basis, a specific valuation allowance is recorded on collateral dependent impaired loans when a current appraisal is not yet available, a recent appraisal is still under review or on single-family mortgage loans if the loans are currently under review for a loan modification. Such valuation allowances are generally based on previous appraisals adjusted for current market conditions, based on preliminary appraisal values that are still being reviewed or for single-family loans under review for modification on an appraisal or indications of comparable home sales from external sources. | ||||
Charge-offs of unsecured consumer loans are recorded when the loan reaches 120 days past due or sooner as circumstances indicate. Except for the charge-offs of unsecured consumer loans, the charge-off policy is applied consistently across all portfolio segments. Impaired single-family mortgage loans that have been modified in accordance with the various government modification programs are also measured based on the present value of the expected cash flows discounted at the loan’s pre-modification interest rate. The Company recognizes the change in present value attributable to the passage of time as interest income on such performing single-family mortgage loans and the amount of interest income recognized to date has been insignificant. | ||||
Provision and Allowance for Loan Losses | ' | |||
Provision and Allowance for Loan Losses — The allowance for loan losses is management’s estimate of probable losses inherent in the loan and lease receivables portfolio. The allowance is increased by the provision for losses and decreased by charge-offs when management believes the uncollectability of a loan is confirmed. Subsequent recoveries, if any, are credited to the allowance. The determination of the balance in the allowance for loan losses is based on an analysis of the loan and lease finance receivables portfolio using a systematic methodology and reflects an amount that, in management’s judgment, is appropriate to provide for probable loan losses inherent in the portfolio, after giving consideration to the character of the loan portfolio, current economic conditions, past loan loss experience, and such other factors that would deserve current recognition in estimating inherent loan losses. | ||||
There are different qualitative risks for the loans in each portfolio segment. The construction and real estate segments’ predominant risk characteristics are the collateral and the geographic location of the property collateralizing the loan as well as the operating cash flow for commercial real estate properties. The commercial and industrial segments’ predominant risk characteristics are the cash flows of the businesses we lend to, the global cash flows and liquidity of the guarantors of such losses, as well as economic and market conditions. The dairy & livestock segment’s predominant risk characteristics are milk and beef prices in the market as well as the cost of feed and cattle. The municipal lease segment’s predominant risk characteristics are the municipality’s general financial condition and tax revenues or if applicable the specific project related financial condition. The consumer, auto and other segments’ predominant risk characteristics are employment and income levels as they relate to consumers and cash flows of the businesses as they relate to equipment and vehicle leases to businesses. The agribusiness segment’s predominant risk characteristics are the supply and demand conditions of the product, production seasonality, the scale of operations and ability to control costs, the availability and cost of water, and operator experience. | ||||
The Company’s methodology is consistently applied across all portfolio segments taking into account the applicable historical loss rates and the qualitative factors applicable to each pool of loans. A key factor in the Company’s methodology is the loan risk rating (Pass, Special Mention, Substandard, Doubtful and Loss). Loan risk ratings are updated as facts related to the loan or borrower become available. In addition, all term loans in excess of $1.0 million are subject to an annual internal credit review process where all factors underlying the loan, borrower and guarantors are subject to review which may result in changes to the loan’s risk rating. Periodically, we assess various attributes utilized in adjusting our historical loss factors to reflect our view of current economic conditions. The estimate is reviewed quarterly by the Board of Directors and management and periodically by various regulatory agencies and, as adjustments become necessary, they are reported in earnings in the periods in which they become known. | ||||
Our methodology for assessing the appropriateness of the allowance is conducted on a regular basis and considers the Bank’s overall loan portfolio. The Bank’s methodology consists of two major phases. | ||||
In the first phase, individual loans are reviewed to identify loans for impairment and, if impaired, whether they are collateral-dependent loans. Impairment is measured based on the Company’s policy which requires that impaired loans are individually evaluated for impairment utilizing one of three valuation methods, as prescribed under ASC 310-10. Generally, the Company measures impairment based on the present value of expected cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price, or the fair value of the collateral if the loan is a collateral-dependent loan. Impaired loans are deemed collateral-dependent if repayment is expected to be provided solely by the underlying collateral, which includes repayment from the proceeds from the sale of the collateral, cash flow from the continued operation of the collateral, or both, and cash flows to repay the loan from all other available sources are expected to be no more than nominal. If the Company deems the impaired loan to be a collateral-dependent loan, the impairment is measured using the fair value of the collateral. If the Company determines that a loan’s present value of expected cash flows or fair value of the collateral, if the loan is collateral-dependent, is less than the recorded investment in the loan, the Company either recognizes an impairment reserve as a specific allowance, or charges off the impaired balance if it is determined that such amount represents a confirmed loss. Loans determined to be impaired are excluded from the formula allowance that evaluates loans collectively for impairment, as discussed in the second phase below. | ||||
The second phase is conducted by evaluating or segmenting the remainder of the loan portfolio into groups or pools of loans with similar characteristics. In this second phase, groups or pools of homogeneous loans are reviewed to determine a portfolio formula allowance. In the case of the portfolio formula allowance, homogeneous portfolios, such as small business loans, consumer loans, agricultural loans, and real estate loans, are aggregated or pooled in determining the appropriate allowance. The risk assessment process in this case emphasizes trends in the different portfolios for delinquency, loss, and other behavioral characteristics of the subject portfolio over a relevant period. | ||||
Included in this second phase is our consideration of qualitative factors, including, all known relevant internal and external factors that may affect the collectability of a loan. This includes our estimates of the amounts necessary for concentrations, economic uncertainties, the volatility of the market value of collateral, and other relevant factors. These qualitative factors are used to adjust the historical loan loss rates for each pool of loans to determine the probable loan losses inherent in the portfolio. | ||||
Periodically, we assess various attributes utilized in adjusting our historical loss factors to reflect current economic conditions. The methodology is consistently applied across all the portfolio segments taking into account the applicable historical loss rates and the qualitative factors applicable to each pool of loans. | ||||
In the fourth quarter ended December 31, 2013, the Bank implemented a change in its methodology to calculate the ALLL. Previously, the Bank used an annual three-year look-back period of historical losses, segmented by loan type, with the loss factors updated annually to include the current year’s loss experience in the fourth quarter of each year. External factors that were considered were the improving credit environment and the stabilizing economy. In determining the look-back period, management considered the period used to develop the historical loss rate should be long enough to capture sufficient loss data. We determined that a rolling twenty quarters look-back period was appropriate as of December 31, 2013 because the most recent three-year period provided insufficient data, with very low loss experience, and in some cases recoveries actually exceeded losses within certain loan segments during the three year period. We believe the rolling twenty quarters look-back period is the best indicator of inherent losses within the loan portfolio as many of the economic factors in the early stages of the economic recovery still exist. | ||||
Covered Loans | ' | |||
Covered Loans — We refer to “covered loans” as those loans that we acquired in the San Joaquin Bank (“SJB”) acquisition for which we will be reimbursed for a substantial portion of any future losses under the terms of the Federal Deposit Insurance Corporation (“FDIC”) loss sharing agreement. We account for loans under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (“acquired impaired loan accounting”) when (i) we acquire loans deemed to be impaired when there is evidence of credit deterioration since their origination and it is probable at the date of acquisition that we would be unable to collect all contractually required payments and (ii) as a general policy election for non-impaired loans that we acquire in a distressed bank acquisition. Acquired impaired loans are accounted for individually or in pools of loans based on common risk characteristics. The excess of the loan’s or pool’s scheduled contractual principal and interest payments over all cash flows expected at acquisition is the nonaccretable difference. The remaining amount, representing the excess of the loan’s cash flows expected to be collected over the fair value is the accretable yield (accreted into interest income over the remaining life of the loan or pool). | ||||
A provision for loan losses on the covered portfolio will be recorded if there is deterioration in the expected cash flows on covered loans as a result of deteriorated credit quality, compared to those previously estimated without regard to the reimbursement from the FDIC under the FDIC loss sharing agreement. The portion of the loss on covered loans reimbursable from the FDIC is recorded in noninterest income as a (decrease) increase in the FDIC loss sharing asset. Decreases in expected cash flows on the acquired impaired loans as of the measurement date compared to previously estimated are recognized by recording a provision for loan losses on acquired impaired loans. Loans accounted for as part of a pool are measured based on the expected cash flows of the entire pool. | ||||
FDIC Loss Sharing Asset | ' | |||
FDIC Loss Sharing Asset — On October 16, 2009, the Bank acquired substantially all of the assets and assumed substantially all of the liabilities of San Joaquin Bank (“SJB”) from the FDIC in an FDIC-assisted transaction. The Bank entered into a loss sharing agreement with the FDIC, whereby the FDIC will cover a substantial portion of any future losses on certain acquired assets. The acquired assets subject to the loss sharing agreement are referred to collectively as “covered assets.” Under the terms of such loss sharing agreement, the FDIC will absorb 80% of losses and share in 80% of loss recoveries up to $144.0 million with respect to covered assets, after a first loss amount of $26.7 million. The FDIC will reimburse the Bank for 95% of losses and share in 95% of loss recoveries in excess of $144.0 million with respect to covered assets. The loss sharing agreement is in effect for 5 years for commercial loans and 10 years for single-family residential loans from the October 16, 2009 acquisition date and the loss recovery provisions are in effect for 8 and 10 years, respectively, for commercial and single-family residential loans from the acquisition date. | ||||
The FDIC loss sharing asset was initially recorded at fair value which represents the present value of the estimated cash payments from the FDIC for future losses on covered loans. The ultimate collectability of this asset is dependent upon the performance of the underlying covered loans, the passage of time and claims paid by the FDIC. The loss estimates used in calculating the FDIC loss sharing asset are determined on the same basis as the loss estimates on the related covered loans and is the present value of the cash flows the Company expects to collect from the FDIC under the loss sharing agreement. The difference between the present value and the undiscounted cash flow the Company expects to collect from the FDIC is accreted (or amortized) into noninterest income over the life of the FDIC indemnification asset. The FDIC indemnification asset is adjusted for any changes in expected cash flows based on covered loan performance. Any increases in the cash flows of covered loans over those expected will reduce the FDIC indemnification asset and any decreases in the cash flows of covered loans over those expected will increase the FDIC indemnification asset, with the remaining balance amortized on the same basis as the discount, not to exceed its remaining contract life. These increases and decreases to the FDIC indemnification asset are recorded as adjustments to noninterest income. | ||||
Goodwill and Intangible Assets | ' | |||
Goodwill and Intangible Assets — Goodwill resulting from business combinations prior to January 1, 2009, represents the excess of the purchase price over the fair value of the net assets of the businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually, or more frequently if events and circumstances exists that indicate that a goodwill impairment test should be performed. | ||||
Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. Based on the Company’s annual impairment test, there was zero recorded impairment as of September 30, 2014. | ||||
Other intangible assets consist of core deposit intangible assets arising from business combinations and are amortized using an accelerated method over their estimated useful lives. | ||||
Fair Value of Financial Instruments | ' | |||
Fair Value of Financial Instruments — We use fair value measurements to record fair value adjustments to certain financial instruments and to determine fair value disclosures. Investment securities available-for-sale and interest-rate swaps are financial instruments recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other financial assets on a non-recurring basis, such as impaired loans and other real estate owned (“OREO”). These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write-downs of individual assets. Further, we include in Note 9 of the unaudited condensed consolidated financial statements information about the extent to which fair value is used to measure assets and liabilities, the valuation methodologies used and its impact to earnings. Additionally, for financial instruments not recorded at fair value we disclose the estimate of their fair value. | ||||
Earnings per Common Share | ' | |||
Earnings per Common Share — The Company calculates earnings per common share (“EPS”) using the two-class method. The two-class method requires the Company to present EPS as if all of the earnings for the period are distributed to common shareholders and any participating securities. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities. The Company grants restricted shares under the 2008 Equity Incentive Plan that qualify as participating securities. Restricted shares issued under this plan are entitled to dividends at the same rate as common stock. A reconciliation of the numerator and the denominator used in the computation of basic and diluted earnings per common share is included in Note 8 of these unaudited condensed consolidated financial statements. | ||||
Stock-Based Compensation | ' | |||
Stock-Based Compensation — Consistent with the provisions of ASC 718, “Stock Compensation”, we recognize expense for the grant date fair value of stock options and restricted shares issued to employees, officers and non-employee directors over the their requisite service periods (generally the vesting period). The service periods may be subject to performance conditions. | ||||
At September 30, 2014, the Company had three stock-based employee compensation plans. The Company accounts for stock compensation using the “modified prospective” method. Under this method, awards that are granted, modified, or settled after December 31, 2005, are measured at fair value as of the grant date with compensation costs recognized over the vesting period on a straight-lined basis. Also under this method, unvested stock awards as of January 1, 2006 are recognized over the remaining service period with no change in historical reported earnings. | ||||
The fair value of each stock option grant is estimated as of the grant date using the Black-Scholes option-pricing model. Management assumptions used at the time of grant impact the fair value of the option calculated under the Black-Scholes option-pricing model, and ultimately, the expense that will be recognized over the life of the option. | ||||
The grant date fair value of restricted stock awards is measured at the fair value of the Company’s common stock as if the restricted share was vested and issued on the date of grant. | ||||
Additional information is included in Note 17 – Stock Option Plan and Restricted Stock Awards, of the Company’s 2013 Annual Report on Form 10-K. | ||||
Derivative Financial Instruments | ' | |||
Derivative Financial Instruments — All derivative instruments, including certain derivative instruments embedded in other contracts, are recognized on the condensed consolidated balance sheets at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in “Other Comprehensive Income,” net of deferred taxes, and are subsequently reclassified to earnings when the hedged transaction affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. | ||||
Use of Estimates in the Preparation of Financial Statements | ' | |||
Use of Estimates in the Preparation of Financial Statements — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. Other significant estimates which may be subject to change include fair value determinations and disclosures, impairment of investments, goodwill, loans, and valuation of deferred tax assets, other intangibles and OREO. | ||||
Other Contingencies | ' | |||
Other Contingencies — In the ordinary course of business, the Company becomes involved in litigation. Based upon the Company’s internal records and discussions with legal counsel, the Company records reserves as appropriate, for estimates of the probable outcome of all cases brought against the Company. Except as discussed in Part II – Other Information, Item 1. “Legal Proceedings,” at September 30, 2014, the Company does not have any litigation reserves, and is not aware of any material pending legal action or complaints asserted against the Company. | ||||
Recent Accounting Pronouncements | ' | |||
Recent Accounting Pronouncements— In January 2014, the FASB issued ASU No. 2014-01, “Investments — Equity Method and Joint Ventures (Topic 323) — Accounting for Investments in Qualified Affordable Housing Projects.” This ASU allows reporting entities to make an accounting policy election concerning investments in Low Income Housing Tax Credit (“LIHTC”) programs, that meet specified conditions, to present the net tax benefits (net of the amortization of the cost of the investment) within income tax expense. The cost of LIHTC investments, that meet the specified conditions, may be amortized in proportion to the total expected tax benefits, including the tax credits and other tax benefits, as they are realized on the tax return. This ASU is effective beginning after December 15, 2014. This ASU is required to be applied retrospectively, if investors elect the proportional amortization method. However, if investors have existing LIHTC investments accounted for under the effective-yield method at adoption, they may continue to apply that method for those existing investments. The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In January 2014, the FASB issued ASU No. 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40) — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure.” This ASU clarifies when a creditor should reclassify mortgage loans collateralized by residential real estate from loans receivable to other real estate owned. ASU 2014-04 defines when an in-substance repossession or foreclosure has occurred and when a creditor is considered to have received physical possession of residential real estate collateralizing a mortgage loan. This ASU is effective for us on January 1, 2015 and can be applied either prospectively or using a modified retrospective transition method, and early adoption is permitted. The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. This update to the ASC is the culmination of efforts by the FASB and the International Accounting Standards Board (IASB) to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 supersedes Topic 605 – Revenue Recognition and most industry-specific guidance. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in ASU 2014-09 describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. The amendments in ASU 2014-9 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not allowed. The adoption of this new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In June 2014, the FASB issued ASU No. 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 Services Period”. The amendments in ASU 2014-12 provide guidance for determining compensation cost under specific circumstances when an employee is eligible to vest in an award regardless of whether the employee is rendering service on the date the performance target is achieved. ASU 2014-12 becomes effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. The Company is currently evaluating the effects of ASU 2014-12 on its consolidated financial statements and disclosures, if any. | ||||
Fair Value Hierarchy | ' | |||
Fair Value Hierarchy | ||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | ||||
The following disclosure provides the fair value information for financial assets and liabilities as of September 30, 2014. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels (Level 1, Level 2, and Level 3). | ||||
• | Level 1 — Valuation is based upon quoted prices for identical instruments traded in active markets. | |||
• | 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 3 — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flows and similar techniques. |
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Summary of Amortized Cost and Estimated Fair Value of Investment Securities | ' | ||||||||||||||||||||||||
The majority of securities held are publicly traded, and the estimated fair values were obtained from an independent pricing service based upon market quotes. | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | Total | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Percent | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gain | Loss | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 342,560 | $ | 2 | $ | (13,363 | ) | $ | 329,199 | 10.42 | % | ||||||||||||||
Residential mortgage-backed securities | 1,901,645 | 22,056 | (7,950 | ) | 1,915,751 | 60.62 | % | ||||||||||||||||||
CMOs / REMICs - residential | 315,298 | 7,300 | (643 | ) | 321,955 | 10.19 | % | ||||||||||||||||||
Municipal bonds | 564,366 | 24,583 | (936 | ) | 588,013 | 18.61 | % | ||||||||||||||||||
Other securities | 5,000 | 138 | — | 5,138 | 0.16 | % | |||||||||||||||||||
Total | $ | 3,128,869 | $ | 54,079 | $ | (22,892 | ) | $ | 3,160,056 | 100 | % | ||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | Total | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Percent | ||||||||||||||||||||||
Holding | Holding | ||||||||||||||||||||||||
Gain | Loss | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 350,378 | $ | 22 | $ | (23,875 | ) | $ | 326,525 | 12.26 | % | ||||||||||||||
Residential mortgage-backed securities | 1,391,631 | 13,100 | (24,788 | ) | 1,379,943 | 51.81 | % | ||||||||||||||||||
CMOs / REMICs - residential | 361,573 | 6,576 | (1,974 | ) | 366,175 | 13.75 | % | ||||||||||||||||||
Municipal bonds | 571,145 | 18,839 | (3,893 | ) | 586,091 | 22 | % | ||||||||||||||||||
Other securities | 5,000 | — | (92 | ) | 4,908 | 0.18 | % | ||||||||||||||||||
Total | $ | 2,679,727 | $ | 38,537 | $ | (54,622 | ) | $ | 2,663,642 | 100 | % | ||||||||||||||
Summary of Continuous Unrealized Loss Position of Securities | ' | ||||||||||||||||||||||||
The tables below show the Company’s investment securities’ gross unrealized losses and fair value by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2014 and December 31, 2013. Management has reviewed individual securities to determine whether a decline in fair value below the amortized cost basis is other-than-temporary. | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Holding | Holding | Holding | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 17,979 | $ | 37 | $ | 306,211 | $ | 13,326 | $ | 324,190 | $ | 13,363 | |||||||||||||
Residential mortgage-backed securities | 399,364 | 677 | 309,465 | 7,273 | 708,829 | 7,950 | |||||||||||||||||||
CMOs / REMICs - residential | 28,420 | 76 | 42,092 | 567 | 70,512 | 643 | |||||||||||||||||||
Municipal bonds | 6,409 | 53 | 35,731 | 883 | 42,140 | 936 | |||||||||||||||||||
Other securities | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 452,172 | $ | 843 | $ | 693,499 | $ | 22,049 | $ | 1,145,671 | $ | 22,892 | |||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Holding | Holding | Holding | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Government agency | $ | 267,936 | $ | 20,514 | $ | 38,563 | $ | 3,361 | $ | 306,499 | $ | 23,875 | |||||||||||||
Residential mortgage-backed securities | 851,621 | 23,313 | 22,999 | 1,475 | 874,620 | 24,788 | |||||||||||||||||||
CMOs / REMICs - residential | 104,322 | 1,780 | 17,747 | 194 | 122,069 | 1,974 | |||||||||||||||||||
Municipal bonds | 47,116 | 3,359 | 10,338 | 534 | 57,454 | 3,893 | |||||||||||||||||||
Other securities | 4,908 | 92 | — | — | 4,908 | 92 | |||||||||||||||||||
Total | $ | 1,275,903 | $ | 49,058 | $ | 89,647 | $ | 5,564 | $ | 1,365,550 | $ | 54,622 | |||||||||||||
Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | ' | ||||||||||||||||||||||||
Mortgage-backed securities and CMOs/REMICs are included in maturity categories based upon estimated prepayment speeds. | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Weighted- | |||||||||||||||||||||||||
Amortized | Fair | Average | |||||||||||||||||||||||
Cost | Value | Yield | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 130,897 | $ | 133,756 | 3.51 | % | |||||||||||||||||||
Due after one year through five years | 2,116,400 | 2,156,397 | 2.48 | % | |||||||||||||||||||||
Due after five years through ten years | 796,615 | 782,833 | 2.2 | % | |||||||||||||||||||||
Due after ten years | 84,957 | 87,070 | 2.72 | % | |||||||||||||||||||||
Total | $ | 3,128,869 | $ | 3,160,056 | 2.46 | % | |||||||||||||||||||
Covered_Assets_and_FDIC_Loss_S1
Covered Assets and FDIC Loss Sharing Asset (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Summary of Components of Covered Loan and Lease Finance Receivables | ' | ||||||||
The following table provides a summary of the components of covered loan and lease finance receivables: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
(Dollars in thousands) | |||||||||
Commercial and industrial | $ | 16,877 | $ | 20,461 | |||||
Real estate: | |||||||||
Commercial real estate | 116,854 | 141,141 | |||||||
Construction | — | 644 | |||||||
SFR mortgage | 211 | 313 | |||||||
Dairy & livestock and agribusiness | 3,270 | 6,000 | |||||||
Municipal lease finance receivables | — | — | |||||||
Consumer and other loans | 3,392 | 4,545 | |||||||
Gross covered loans | 140,604 | 173,104 | |||||||
Less: Purchase accounting discount | (8,253 | ) | (12,789 | ) | |||||
Gross covered loans, net of discount | 132,351 | 160,315 | |||||||
Less: Allowance for covered loan losses | — | — | |||||||
Net covered loans | $ | 132,351 | $ | 160,315 | |||||
Summary of Covered Loans by Internal Risk Ratings | ' | ||||||||
The following table summarizes covered loans by internal risk ratings: | |||||||||
September 30, 2014 | December 31, 2013 | ||||||||
(Dollars in thousands) | |||||||||
Pass | $ | 26,503 | $ | 38,961 | |||||
Watch list | 79,635 | 74,369 | |||||||
Special mention | 6,542 | 15,492 | |||||||
Substandard | 27,924 | 44,241 | |||||||
Doubtful & loss | — | 41 | |||||||
Total covered gross loans | $ | 140,604 | $ | 173,104 | |||||
NonCovered_Loan_and_Lease_Fina1
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Summary of Components of Loan and Lease Finance Receivables | ' | ||||||||||||||||||||||||
The following tables provide a summary of the components of loan and lease finance receivables: | |||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 513,644 | $ | 512,792 | |||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 2,465,915 | 2,207,515 | |||||||||||||||||||||||
Construction | 67,229 | 47,109 | |||||||||||||||||||||||
SFR mortgage | 193,205 | 189,233 | |||||||||||||||||||||||
Dairy & livestock and agribusiness | 192,930 | 294,292 | |||||||||||||||||||||||
Municipal lease finance receivables | 80,013 | 89,106 | |||||||||||||||||||||||
Consumer and other loans | 69,811 | 55,103 | |||||||||||||||||||||||
Gross non-covered loans | 3,582,747 | 3,395,150 | |||||||||||||||||||||||
Less: Deferred loan fees, net | (8,862 | ) | (9,234 | ) | |||||||||||||||||||||
Gross loans, net of deferred loan fees | 3,573,885 | 3,385,916 | |||||||||||||||||||||||
Less: Allowance for non-covered loan losses | (59,582 | ) | (75,235 | ) | |||||||||||||||||||||
Net non-covered loans | $ | 3,514,303 | $ | 3,310,681 | |||||||||||||||||||||
Summary of Activity Related to Non-Covered Loans Held-for-Sale | ' | ||||||||||||||||||||||||
The following table provides a summary of the activity related to non-covered loans held-for-sale for the nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Balance, beginning of period | $ | 3,667 | $ | — | |||||||||||||||||||||
Originations of mortgage loans | — | — | |||||||||||||||||||||||
Sales of mortgage loans | — | — | |||||||||||||||||||||||
Transfer of mortgage loans to held for investment | — | — | |||||||||||||||||||||||
Sales of other loans | (3,667 | ) | — | ||||||||||||||||||||||
Transfers of other loans to held-for-sale | — | — | |||||||||||||||||||||||
Write-down of loans held-for-sale | — | — | |||||||||||||||||||||||
Balance, end of period | $ | — | $ | — | |||||||||||||||||||||
Summary of Loan by Internal Risk Ratings | ' | ||||||||||||||||||||||||
The following tables summarize our internal risk grouping by loan class as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Pass | Watch List | Special | Substandard | Doubtful & | Total | ||||||||||||||||||||
Mention | Loss (1) | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 306,627 | $ | 125,212 | $ | 63,569 | $ | 16,539 | $ | 1,697 | $ | 513,644 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 529,273 | 161,659 | 65,056 | 25,426 | — | 781,414 | |||||||||||||||||||
Non-owner occupied | 1,305,708 | 254,429 | 76,113 | 48,251 | — | 1,684,501 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 23,230 | 2,872 | — | 17,318 | — | 43,420 | |||||||||||||||||||
Non-speculative | 11,230 | 3,476 | 2 | 9,101 | — | 23,809 | |||||||||||||||||||
SFR mortgage | 160,920 | 20,459 | 2,455 | 9,371 | — | 193,205 | |||||||||||||||||||
Dairy & livestock and agribusiness | 70,125 | 90,136 | 16,240 | 14,966 | 1,463 | 192,930 | |||||||||||||||||||
Municipal lease finance receivables | 36,609 | 23,091 | 20,313 | — | — | 80,013 | |||||||||||||||||||
Consumer and other loans | 56,971 | 6,860 | 2,959 | 2,825 | 196 | 69,811 | |||||||||||||||||||
Total non-covered gross loans | $ | 2,500,693 | $ | 688,194 | $ | 246,707 | $ | 143,797 | $ | 3,356 | $ | 3,582,747 | |||||||||||||
-1 | There were no loans classified as loss as of September 30, 2014. | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Pass | Watch List | Special | Substandard | Doubtful & | Total | ||||||||||||||||||||
Mention | Loss (1) | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 312,927 | $ | 128,068 | $ | 53,417 | $ | 17,950 | $ | 430 | $ | 512,792 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 449,853 | 147,165 | 74,999 | 57,934 | — | 729,951 | |||||||||||||||||||
Non-owner occupied | 1,104,065 | 242,431 | 81,088 | 49,980 | — | 1,477,564 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 8,611 | 21 | 1,529 | 17,617 | — | 27,778 | |||||||||||||||||||
Non-speculative | 6,940 | 3,190 | — | 9,201 | — | 19,331 | |||||||||||||||||||
SFR mortgage | 152,500 | 20,485 | 3,302 | 12,946 | — | 189,233 | |||||||||||||||||||
Dairy & livestock and agribusiness | 43,588 | 86,580 | 92,514 | 69,005 | 2,605 | 294,292 | |||||||||||||||||||
Municipal lease finance receivables | 43,445 | 18,338 | 20,893 | 6,430 | — | 89,106 | |||||||||||||||||||
Consumer and other loans | 43,225 | 6,938 | 3,449 | 1,491 | — | 55,103 | |||||||||||||||||||
Total non-covered gross loans | $ | 2,165,154 | $ | 653,216 | $ | 331,191 | $ | 242,554 | $ | 3,035 | $ | 3,395,150 | |||||||||||||
-1 | There were no loans classified as loss as of December 31, 2013. | ||||||||||||||||||||||||
Schedule of Balance and Activity Related to Allowance for Loan Losses for Non-Covered Held-for-Investment Loans by Portfolio Segment | ' | ||||||||||||||||||||||||
The following tables present the balance and activity related to the allowance for loan losses for non-covered held-for-investment loans by portfolio segment for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
June 30, | September 30, | ||||||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 8,402 | $ | (2 | ) | $ | 187 | $ | 97 | $ | 8,684 | ||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 35,918 | — | 2 | (286 | ) | 35,634 | |||||||||||||||||||
Construction | 605 | — | 37 | 148 | 790 | ||||||||||||||||||||
SFR mortgage | 2,214 | — | 188 | (97 | ) | 2,305 | |||||||||||||||||||
Dairy & livestock and agribusiness | 5,428 | (1,061 | ) | 151 | (241 | ) | 4,277 | ||||||||||||||||||
Municipal lease finance receivables | 1,464 | — | — | 4 | 1,468 | ||||||||||||||||||||
Consumer and other loans | 930 | (7 | ) | 113 | (169 | ) | 867 | ||||||||||||||||||
Covered loans | — | — | — | — | — | ||||||||||||||||||||
Unallocated | 6,013 | — | — | (456 | ) | 5,557 | |||||||||||||||||||
Total allowance for loan losses | $ | 60,974 | $ | (1,070 | ) | $ | 678 | $ | (1,000 | ) | $ | 59,582 | |||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
June 30, | September 30, | ||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 12,586 | $ | (1,235 | ) | $ | 315 | $ | (1,022 | ) | $ | 10,644 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 44,392 | — | 34 | (1,007 | ) | 43,419 | |||||||||||||||||||
Construction | 1,172 | — | 15 | 412 | 1,599 | ||||||||||||||||||||
SFR mortgage | 3,715 | (110 | ) | — | (144 | ) | 3,461 | ||||||||||||||||||
Dairy & livestock and agribusiness | 14,225 | — | 14 | (2,152 | ) | 12,087 | |||||||||||||||||||
Municipal lease finance receivables | 2,369 | — | — | 69 | 2,438 | ||||||||||||||||||||
Consumer and other loans | 1,052 | (39 | ) | 12 | 25 | 1,050 | |||||||||||||||||||
Unallocated | 5,946 | — | — | 69 | 6,015 | ||||||||||||||||||||
Total allowance for loan losses | $ | 85,457 | $ | (1,384 | ) | $ | 390 | $ | (3,750 | ) | $ | 80,713 | |||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 10,834 | $ | (516 | ) | $ | 748 | $ | (2,382 | ) | $ | 8,684 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 39,402 | (352 | ) | 140 | (3,556 | ) | 35,634 | ||||||||||||||||||
Construction | 1,305 | — | 834 | (1,349 | ) | 790 | |||||||||||||||||||
SFR mortgage | 2,718 | — | 188 | (601 | ) | 2,305 | |||||||||||||||||||
Dairy & livestock and agribusiness | 11,728 | (1,061 | ) | 393 | (6,783 | ) | 4,277 | ||||||||||||||||||
Municipal lease finance receivables | 2,335 | — | — | (867 | ) | 1,468 | |||||||||||||||||||
Consumer and other loans | 960 | (26 | ) | 139 | (206 | ) | 867 | ||||||||||||||||||
Covered loans | — | (40 | ) | — | 40 | — | |||||||||||||||||||
Unallocated | 5,953 | — | — | (396 | ) | 5,557 | |||||||||||||||||||
Total allowance for loan losses | $ | 75,235 | $ | (1,995 | ) | $ | 2,442 | $ | (16,100 | ) | $ | 59,582 | |||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Ending | Charge-offs | Recoveries | Provision for | Ending | |||||||||||||||||||||
Balance | Loan Losses | Balance | |||||||||||||||||||||||
December 31, | September 30, | ||||||||||||||||||||||||
2012 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 11,652 | $ | (2,339 | ) | $ | 523 | $ | 808 | $ | 10,644 | ||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 47,457 | — | 100 | (4,138 | ) | 43,419 | |||||||||||||||||||
Construction | 2,291 | — | 83 | (775 | ) | 1,599 | |||||||||||||||||||
SFR mortgage | 3,448 | (252 | ) | 133 | 132 | 3,461 | |||||||||||||||||||
Dairy & livestock and agribusiness | 18,696 | — | 42 | (6,651 | ) | 12,087 | |||||||||||||||||||
Municipal lease finance receivables | 1,588 | — | — | 850 | 2,438 | ||||||||||||||||||||
Consumer and other loans | 1,170 | (108 | ) | 40 | (52 | ) | 1,050 | ||||||||||||||||||
Unallocated | 6,139 | — | — | (124 | ) | 6,015 | |||||||||||||||||||
Total allowance for loan losses | $ | 92,441 | $ | (2,699 | ) | $ | 921 | $ | (9,950 | ) | $ | 80,713 | |||||||||||||
Schedule of Recorded Investment in Non-Covered Loans Held-for-Investment, and Related Allowance for Loan Losses by Portfolio Segment | ' | ||||||||||||||||||||||||
The following tables present the recorded investment in non-covered loans held-for-investment, and the related allowance for loan losses by portfolio segment, based on the Company’s methodology for determining the allowance for loan losses as of September 30, 2014 and 2013: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | ||||||||||||||||||||||
Evaluated for | Evaluated for | Evaluated for | Evaluated for | ||||||||||||||||||||||
Impairment | Impairment | Impairment | Impairment | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 7,709 | $ | 505,935 | $ | 711 | $ | 7,954 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 31,375 | 2,434,540 | — | 35,633 | |||||||||||||||||||||
Construction | 26,419 | 40,810 | — | 790 | |||||||||||||||||||||
SFR mortgage | 7,755 | 185,450 | 39 | 2,266 | |||||||||||||||||||||
Dairy & livestock and agribusiness | 18,939 | 173,991 | — | 4,278 | |||||||||||||||||||||
Municipal lease finance receivables | — | 80,013 | — | 1,468 | |||||||||||||||||||||
Consumer and other loans | 461 | 69,350 | 4 | 882 | |||||||||||||||||||||
Unallocated | — | — | — | 5,557 | |||||||||||||||||||||
Total | $ | 92,658 | $ | 3,490,089 | $ | 754 | $ | 58,828 | |||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Recorded Investment in Loans | Allowance for Loan Losses | ||||||||||||||||||||||||
Individually | Collectively | Individually | Collectively | ||||||||||||||||||||||
Evaluated for | Evaluated for | Evaluated for | Evaluated for | ||||||||||||||||||||||
Impairment | Impairment | Impairment | Impairment | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 4,983 | $ | 505,583 | $ | 387 | $ | 10,257 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | 38,999 | 2,087,416 | 1 | 43,418 | |||||||||||||||||||||
Construction | 27,239 | 20,409 | 144 | 1,455 | |||||||||||||||||||||
SFR mortgage | 12,805 | 179,325 | 290 | 3,171 | |||||||||||||||||||||
Dairy & livestock and agribusiness | 24,494 | 237,144 | 2,658 | 9,429 | |||||||||||||||||||||
Municipal lease finance receivables | — | 99,188 | — | 2,438 | |||||||||||||||||||||
Consumer and other loans | 159 | 52,727 | 5 | 1,045 | |||||||||||||||||||||
Unallocated | — | — | — | 6,015 | |||||||||||||||||||||
Total | $ | 108,679 | $ | 3,181,792 | $ | 3,485 | $ | 77,228 | |||||||||||||||||
Schedule of Recorded Investment in, and Aging of, Non-Covered Past Due and Nonaccrual Loans by Class of Loans | ' | ||||||||||||||||||||||||
The following tables present the recorded investment in, and the aging of, non-covered past due and nonaccrual loans and loans past due by class of loans as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
30-59 | 60-89 | Total Past | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Days Past | Days Past | Due and | -1 | and | |||||||||||||||||||||
Due | Due | Accruing | Financing | ||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 673 | $ | — | $ | 673 | $ | 6,666 | $ | 506,305 | $ | 513,644 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | — | — | — | 4,034 | 777,380 | 781,414 | |||||||||||||||||||
Non-owner occupied | — | — | — | 10,761 | 1,673,740 | 1,684,501 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | 9,666 | 33,754 | 43,420 | |||||||||||||||||||
Non-speculative | — | — | — | — | 23,809 | 23,809 | |||||||||||||||||||
SFR mortgage | — | — | — | 3,999 | 189,206 | 193,205 | |||||||||||||||||||
Dairy & livestock and agribusiness | — | — | — | 1,463 | 191,467 | 192,930 | |||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | 80,013 | 80,013 | |||||||||||||||||||
Consumer and other loans | 15 | — | 15 | 461 | 69,335 | 69,811 | |||||||||||||||||||
Total non-covered gross loans | $ | 688 | $ | — | $ | 688 | $ | 37,050 | $ | 3,545,009 | $ | 3,582,747 | |||||||||||||
-1 | As of September 30, 2014, $22.7 million of nonaccrual loans were current according to original or restructured terms, $3.2 million were 30-59 days past due, $13,000 were 60-89 days past due, and $11.2 million were 90+ days past due. | ||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
30-59 | 60-89 | Total Past | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Days Past | Days Past | Due and | -1 | and | |||||||||||||||||||||
Due | Due | Accruing | Financing | ||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial | $ | 900 | $ | 93 | $ | 993 | $ | 3,861 | $ | 507,938 | $ | 512,792 | |||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 220 | — | 220 | 4,105 | 725,626 | 729,951 | |||||||||||||||||||
Non-owner occupied | 303 | — | 303 | 8,305 | 1,468,956 | 1,477,564 | |||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | 9,966 | 17,812 | 27,778 | |||||||||||||||||||
Non-speculative | — | — | — | — | 19,331 | 19,331 | |||||||||||||||||||
SFR mortgage | 773 | 935 | 1,708 | 7,577 | 179,948 | 189,233 | |||||||||||||||||||
Dairy & livestock and agribusiness | — | — | — | 5,739 | 288,553 | 294,292 | |||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | 89,106 | 89,106 | |||||||||||||||||||
Consumer and other loans | 75 | — | 75 | 401 | 54,627 | 55,103 | |||||||||||||||||||
Total non-covered gross loans | $ | 2,271 | $ | 1,028 | $ | 3,299 | $ | 39,954 | $ | 3,351,897 | $ | 3,395,150 | |||||||||||||
-1 | As of December 31, 2013, $23.9 million of nonaccruing loans were current according to original or restructured terms, $473,000 were 30-59 days past due, $854,000 were 60-89 days past due, and $14.7 million were 90+ days past due. | ||||||||||||||||||||||||
Schedule of Held-for-Investment Loans, Individually Evaluated for Impairment by Class of Loans | ' | ||||||||||||||||||||||||
The following tables present information for held-for-investment loans, individually evaluated for impairment by class of loans, as of and for the periods indicated below: | |||||||||||||||||||||||||
As of and For the Nine Months Ended | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | $ | 6,096 | $ | 7,861 | $ | — | $ | 5,849 | $ | 44 | |||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 8,742 | 9,896 | — | 9,025 | 238 | ||||||||||||||||||||
Non-owner occupied | 22,633 | 29,545 | — | 23,252 | 541 | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 17,318 | 18,407 | — | 17,440 | 232 | ||||||||||||||||||||
Non-speculative | 9,101 | 9,101 | — | 9,145 | 463 | ||||||||||||||||||||
SFR mortgage | 7,285 | 9,685 | — | 7,934 | 82 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 18,939 | 20,698 | — | 21,205 | 819 | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 450 | 876 | — | 455 | — | ||||||||||||||||||||
Total | 90,564 | 106,069 | — | 94,305 | 2,419 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | 1,613 | 1,951 | 711 | 1,626 | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | — | — | — | — | — | ||||||||||||||||||||
Non-owner occupied | — | — | — | — | — | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | — | — | ||||||||||||||||||||
Non-speculative | — | — | — | — | — | ||||||||||||||||||||
SFR mortgage | 470 | 484 | 39 | 476 | — | ||||||||||||||||||||
Dairy & livestock and agribusiness | — | — | — | — | — | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 11 | 15 | 4 | 12 | — | ||||||||||||||||||||
Total | 2,094 | 2,450 | 754 | 2,114 | — | ||||||||||||||||||||
Total non-covered impaired loans | $ | 92,658 | $ | 108,519 | $ | 754 | $ | 96,419 | $ | 2,419 | |||||||||||||||
As of and For the Nine Months Ended | |||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | $ | 4,595 | $ | 6,020 | $ | — | $ | 5,131 | $ | 161 | |||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 13,361 | 14,412 | — | 13,635 | 494 | ||||||||||||||||||||
Non-owner occupied | 25,631 | 36,851 | — | 26,838 | 553 | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 10,369 | 10,956 | — | 10,522 | — | ||||||||||||||||||||
Non-speculative | 9,219 | 9,219 | — | 9,219 | 428 | ||||||||||||||||||||
SFR mortgage | 10,156 | 11,838 | — | 9,487 | 75 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 17,553 | 18,515 | — | 19,308 | 445 | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 142 | 214 | — | 149 | — | ||||||||||||||||||||
Total | 91,026 | 108,025 | — | 94,289 | 2,156 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | 388 | 408 | 387 | 417 | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 7 | 9 | 1 | 11 | — | ||||||||||||||||||||
Non-owner occupied | — | — | — | — | — | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 7,651 | 7,651 | 144 | 7,651 | 232 | ||||||||||||||||||||
Non-speculative | — | — | — | — | — | ||||||||||||||||||||
SFR mortgage | 2,649 | 2,764 | 290 | 2,636 | 5 | ||||||||||||||||||||
Dairy & livestock and agribusiness | 6,941 | 7,654 | 2,658 | 7,571 | — | ||||||||||||||||||||
Municipal lease finance receivables | — | — | — | — | — | ||||||||||||||||||||
Consumer and other loans | 17 | 19 | 5 | 19 | — | ||||||||||||||||||||
Total | 17,653 | 18,505 | 3,485 | 18,305 | 237 | ||||||||||||||||||||
Total non-covered impaired loans | $ | 108,679 | $ | 126,530 | $ | 3,485 | $ | 112,594 | $ | 2,393 | |||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | |||||||||||||||||||||||
Investment | Principal | Allowance | |||||||||||||||||||||||
Balance | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | $ | 4,668 | $ | 5,927 | $ | — | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | 13,041 | 14,133 | — | ||||||||||||||||||||||
Non-owner occupied | 20,399 | 26,155 | — | ||||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | 17,617 | 18,408 | — | ||||||||||||||||||||||
Non-speculative | 9,201 | 9,201 | — | ||||||||||||||||||||||
SFR mortgage | 10,919 | 12,516 | — | ||||||||||||||||||||||
Dairy & livestock and agribusiness | 17,702 | 17,702 | — | ||||||||||||||||||||||
Municipal lease finance receivables | — | — | — | ||||||||||||||||||||||
Consumer and other loans | 385 | 445 | — | ||||||||||||||||||||||
Total | 93,932 | 104,487 | — | ||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||
Commercial and industrial | 365 | 379 | 365 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied | — | — | — | ||||||||||||||||||||||
Non-owner occupied | — | — | — | ||||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Speculative | — | — | — | ||||||||||||||||||||||
Non-speculative | — | — | — | ||||||||||||||||||||||
SFR mortgage | 486 | 489 | 103 | ||||||||||||||||||||||
Dairy & livestock and agribusiness | 12,110 | 12,783 | 2,702 | ||||||||||||||||||||||
Municipal lease finance receivables | — | — | — | ||||||||||||||||||||||
Consumer and other loans | 16 | 19 | 4 | ||||||||||||||||||||||
Total | 12,977 | 13,670 | 3,174 | ||||||||||||||||||||||
Total non-covered impaired loans | $ | 106,909 | $ | 118,157 | $ | 3,174 | |||||||||||||||||||
Summary of Activity Related to Troubled Debt Restructurings | ' | ||||||||||||||||||||||||
The following tables provide a summary of the activity related to TDRs for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||
Performing TDRs: | |||||||||||||||||||||||||
Beginning balance | $ | 61,878 | $ | 61,566 | $ | 66,955 | $ | 50,392 | |||||||||||||||||
New modifications | — | — | 41 | 21,364 | |||||||||||||||||||||
Payoffs and payments, net | (6,270 | ) | (2,481 | ) | (11,388 | ) | (13,820 | ) | |||||||||||||||||
TDRs returned to accrual status | — | 110 | — | 1,259 | |||||||||||||||||||||
TDRs placed on nonaccrual status | — | — | — | — | |||||||||||||||||||||
Ending balance | $ | 55,608 | $ | 59,195 | $ | 55,608 | $ | 59,195 | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||
Nonperforming TDRs: | |||||||||||||||||||||||||
Beginning balance | $ | 27,397 | $ | 26,497 | $ | 25,119 | $ | 31,309 | |||||||||||||||||
New modifications (1) | — | 3,676 | 4,187 | 3,804 | |||||||||||||||||||||
Charge-offs | (1,061 | ) | (68 | ) | (1,061 | ) | (68 | ) | |||||||||||||||||
Payoffs and payments, net | (3,730 | ) | (1,950 | ) | (5,639 | ) | (5,741 | ) | |||||||||||||||||
TDRs returned to accrual status | — | (110 | ) | — | (1,259 | ) | |||||||||||||||||||
TDRs placed on nonaccrual status | — | — | — | — | |||||||||||||||||||||
Ending balance | $ | 22,606 | $ | 28,045 | $ | 22,606 | $ | 28,045 | |||||||||||||||||
-1 | New modifications for the nine months ended September 30, 2014 represent TDRs acquired from ASB. | ||||||||||||||||||||||||
Summary of Loans Modified as Troubled Debt Restructurings | ' | ||||||||||||||||||||||||
The following tables summarize loans modified as troubled debt restructurings during the three and nine months ended September 30, 2014 and 2013: | |||||||||||||||||||||||||
Modifications (1) | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, | |||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Non-owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Total non-covered loans | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, | |||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Change in amortization period or maturity | 1 | 34 | 34 | 34 | — | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | 2 | 3,642 | 3,642 | 3,556 | — | ||||||||||||||||||||
Total non-covered loans | 3 | $ | 3,676 | $ | 3,676 | $ | 3,590 | $ | — | ||||||||||||||||
-1 | The tables exclude modified loans that were paid off prior to the end of the period. | ||||||||||||||||||||||||
-2 | Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. | ||||||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, 2014 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction (3) | 2 | $ | 368 | $ | 368 | $ | 337 | $ | — | ||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Real estate: | — | — | — | — | — | ||||||||||||||||||||
Commercial real estate: | — | — | — | — | — | ||||||||||||||||||||
Owner occupied | — | — | — | — | — | ||||||||||||||||||||
Interest rate reduction (3) | 1 | 199 | 199 | 187 | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Non-owner occupied | — | — | — | — | — | ||||||||||||||||||||
Interest rate reduction (3) | 3 | 3,573 | 3,573 | 3,469 | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | — | — | — | — | — | ||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | — | — | — | — | — | ||||||||||||||||||||
Total non-covered loans | 6 | $ | 4,140 | $ | 4,140 | $ | 3,993 | $ | — | ||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Number | Pre-Modification | Post-Modification | Outstanding | Financial Effect | |||||||||||||||||||||
of Loans | Outstanding | Outstanding | Recorded | Resulting From | |||||||||||||||||||||
Recorded | Recorded | Investment at | Modifications (2) | ||||||||||||||||||||||
Investment | Investment | September 30, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Commercial and industrial: | |||||||||||||||||||||||||
Interest rate reduction | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Change in amortization period or maturity | 4 | 265 | 265 | 223 | 122 | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | 1 | 168 | 168 | 143 | — | ||||||||||||||||||||
Dairy & livestock and agribusiness: | |||||||||||||||||||||||||
Interest rate reduction | — | — | — | — | — | ||||||||||||||||||||
Change in amortization period or maturity | 7 | 18,848 | 18,848 | 16,068 | — | ||||||||||||||||||||
Total non-covered loans | 12 | $ | 19,281 | $ | 19,281 | $ | 16,434 | $ | 122 | ||||||||||||||||
-1 | The tables exclude modified loans that were paid off prior to the end of the period. | ||||||||||||||||||||||||
-2 | Financial effects resulting from modifications represent charge-offs and specific allowance recorded at modification date. | ||||||||||||||||||||||||
-3 | New modifications for the nine months ended September 30, 2014 represent TDRs acquired from ASB. |
Earnings_Per_Share_Reconciliat1
Earnings Per Share Reconciliation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Common Share Reconciliation | ' | ||||||||||||||||
The table below summarizes earnings per common share and diluted earnings per common share, and reconciles the numerator and denominator of both earnings per common share calculations. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
Earnings per common share: | |||||||||||||||||
Net earnings | $ | 24,295 | $ | 24,239 | $ | 78,440 | $ | 70,320 | |||||||||
Less: Net earnings allocated to restricted stock | 134 | 74 | 409 | 218 | |||||||||||||
Net earnings allocated to common shareholders | $ | 24,161 | $ | 24,165 | $ | 78,031 | $ | 70,102 | |||||||||
Weighted average shares outstanding | 104,875 | 104,766 | 105,218 | 104,657 | |||||||||||||
Earnings per common share | $ | 0.23 | $ | 0.23 | $ | 0.74 | $ | 0.67 | |||||||||
Diluted earnings per common share: | |||||||||||||||||
Net income allocated to common shareholders | $ | 24,161 | $ | 24,165 | $ | 78,031 | $ | 70,102 | |||||||||
Weighted average shares outstanding | 104,875 | 104,766 | 105,218 | 104,657 | |||||||||||||
Incremental shares from assumed exercise of outstanding options | 531 | 451 | 542 | 330 | |||||||||||||
Diluted weighted average shares outstanding | 105,406 | 105,217 | 105,760 | 104,987 | |||||||||||||
Diluted earnings per common share | $ | 0.23 | $ | 0.23 | $ | 0.74 | $ | 0.67 | |||||||||
Fair_Value_Information_Tables
Fair Value Information (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
The tables below present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013: | |||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
September 30, 2014 | Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||
Assets | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Investment securities - AFS: | |||||||||||||||||||||
Government agency | $ | 329,199 | $ | — | $ | 329,199 | $ | — | |||||||||||||
Residential mortgage-backed securities | 1,915,751 | — | 1,915,751 | — | |||||||||||||||||
CMOs / REMICs - residential | 321,955 | — | 321,955 | — | |||||||||||||||||
Municipal bonds | 588,013 | — | 588,013 | — | |||||||||||||||||
Other securities | 5,138 | — | 5,138 | — | |||||||||||||||||
Total investment securities - AFS | 3,160,056 | — | 3,160,056 | — | |||||||||||||||||
Interest rate swaps | 9,317 | — | 9,317 | — | |||||||||||||||||
Total assets | $ | 3,169,373 | $ | — | $ | 3,169,373 | $ | — | |||||||||||||
Description of liability | |||||||||||||||||||||
Interest rate swaps | $ | 9,317 | $ | — | $ | 9,317 | $ | — | |||||||||||||
Total liabilities | $ | 9,317 | $ | — | $ | 9,317 | $ | — | |||||||||||||
Carrying Value at | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
December 31, 2013 | Active Markets | Observable Inputs | Unobservable | ||||||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||||||
Assets | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Investment securities - AFS: | |||||||||||||||||||||
Government agency | $ | 326,525 | $ | — | $ | 326,525 | $ | — | |||||||||||||
Residential mortgage-backed securities | 1,379,943 | — | 1,379,943 | — | |||||||||||||||||
CMOs / REMICs - residential | 366,175 | — | 366,175 | — | |||||||||||||||||
Municipal bonds | 586,091 | — | 586,091 | — | |||||||||||||||||
Other securities | 4,908 | — | 4,908 | — | |||||||||||||||||
Total investment securities - AFS | 2,663,642 | — | 2,663,642 | — | |||||||||||||||||
Interest rate swaps | 10,846 | — | 10,846 | — | |||||||||||||||||
Total assets | $ | 2,674,488 | $ | — | $ | 2,674,488 | $ | — | |||||||||||||
Description of liability | |||||||||||||||||||||
Interest rate swaps | $ | 10,846 | $ | — | $ | 10,846 | $ | — | |||||||||||||
Total liabilities | $ | 10,846 | $ | — | $ | 10,846 | $ | — | |||||||||||||
Assets and Liabilities Measured at Fair Value on Non-Recurring Basis | ' | ||||||||||||||||||||
the following tables provide the level of valuation assumptions used to determine each adjustment and the carrying value of the related assets for investments that experienced losses during the period. | |||||||||||||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | Total Losses | |||||||||||||||||
September 30, 2014 | Active Markets | Other | Unobservable | For the Nine | |||||||||||||||||
for Identical | Observable | Inputs | Months Ended | ||||||||||||||||||
Assets | Inputs | (Level 3) | September 30, 2014 | ||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Impaired loans-non-covered: | |||||||||||||||||||||
Commercial and industrial | $ | 2,998 | $ | — | $ | — | $ | 2,998 | $ | 911 | |||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | 1,518 | — | — | 1,518 | 117 | ||||||||||||||||
Dairy & livestock and agribusiness | 1,463 | — | — | 1,463 | 1,061 | ||||||||||||||||
Consumer and other loans | 16 | — | — | 16 | 5 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Covered | 275 | — | — | 275 | 65 | ||||||||||||||||
Total assets | $ | 6,270 | $ | — | $ | — | $ | 6,270 | $ | 2,159 | |||||||||||
Carrying Value at | Quoted Prices in | Significant | Significant | Total Losses | |||||||||||||||||
December 31, 2013 | Active Markets | Other | Unobservable | For the Year Ended | |||||||||||||||||
for Identical | Observable | Inputs | December 31, 2013 | ||||||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Description of assets | |||||||||||||||||||||
Impaired loans-non-covered: | |||||||||||||||||||||
Commercial and industrial | $ | 529 | $ | — | $ | — | $ | 529 | $ | 627 | |||||||||||
Real estate: | |||||||||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||||
Dairy & livestock and agribusiness | 11,899 | — | — | 11,899 | 2,096 | ||||||||||||||||
Consumer and other loans | 2 | — | — | 2 | 2 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Covered | 504 | — | — | 504 | 434 | ||||||||||||||||
Total assets | $ | 12,934 | $ | — | $ | — | $ | 12,934 | $ | 3,159 | |||||||||||
Estimated Fair Value of Financial Instruments | ' | ||||||||||||||||||||
The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 240,056 | $ | 240,056 | $ | — | $ | — | $ | 240,056 | |||||||||||
Interest-earning balances due from depository institutions | 18,314 | — | 18,314 | — | 18,314 | ||||||||||||||||
FHLB stock | 25,338 | — | 25,338 | — | 25,338 | ||||||||||||||||
Investment securities available-for-sale | 3,160,056 | — | 3,160,056 | — | 3,160,056 | ||||||||||||||||
Investment securities held-to-maturity | 1,598 | — | — | 2,194 | 2,194 | ||||||||||||||||
Non-covered loans held-for-sale | — | — | — | — | — | ||||||||||||||||
Total loans, net of allowance for loan losses | 3,646,654 | — | — | 3,680,071 | 3,680,071 | ||||||||||||||||
Accrued interest receivable | 23,459 | — | 23,459 | — | 23,459 | ||||||||||||||||
Swaps | 9,317 | — | 9,317 | — | 9,317 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Noninterest-bearing | $ | 3,037,103 | $ | 3,037,103 | $ | — | $ | — | $ | 3,037,103 | |||||||||||
Interest-bearing | 2,722,190 | — | 2,723,117 | — | 2,723,117 | ||||||||||||||||
Borrowings | 728,234 | — | 743,372 | — | 743,372 | ||||||||||||||||
Junior subordinated debentures | 25,774 | — | 25,993 | — | 25,993 | ||||||||||||||||
Accrued interest payable | 1,120 | — | 1,120 | — | 1,120 | ||||||||||||||||
Swaps | 9,317 | — | 9,317 | — | 9,317 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Estimated Fair Value | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Total cash and cash equivalents | $ | 94,693 | $ | 94,693 | $ | — | $ | — | $ | 94,693 | |||||||||||
Interest-earning balances due from depository institutions | 70,000 | — | 70,000 | — | 70,000 | ||||||||||||||||
FHLB stock | 32,331 | — | 32,331 | — | 32,331 | ||||||||||||||||
Investment securities available-for-sale | 2,663,642 | — | 2,663,642 | — | 2,663,642 | ||||||||||||||||
Investment securities held-to-maturity | 1,777 | — | — | 2,296 | 2,296 | ||||||||||||||||
Non-covered loans held-for-sale | 3,667 | — | — | 8,897 | 8,897 | ||||||||||||||||
Total loans, net of allowance for loan losses | 3,470,996 | — | — | 3,527,725 | 3,527,725 | ||||||||||||||||
Accrued interest receivable | 22,051 | — | 22,051 | — | 22,051 | ||||||||||||||||
Swaps | 10,846 | — | 10,846 | — | 10,846 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Noninterest-bearing | $ | 2,562,980 | $ | 2,562,980 | $ | — | $ | — | $ | 2,562,980 | |||||||||||
Interest-bearing | 2,327,651 | — | 2,328,488 | — | 2,328,488 | ||||||||||||||||
Borrowings | 911,457 | — | 932,408 | — | 932,408 | ||||||||||||||||
Junior subordinated debentures | 25,774 | — | 25,819 | — | 25,819 | ||||||||||||||||
Accrued interest payable | 1,111 | — | 1,111 | — | 1,111 | ||||||||||||||||
Swaps | 10,846 | — | 10,846 | — | 10,846 |
Business_Segments_Tables
Business Segments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information by Segment | ' | ||||||||||||||||||||
The following tables present the operating results and other key financial measures for the individual operating segments for the periods indicated: | |||||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 36,723 | $ | 18,397 | $ | 10,175 | $ | — | $ | 65,295 | |||||||||||
Credit for funds provided (1) | 8,190 | — | 12,037 | (20,227 | ) | — | |||||||||||||||
Total interest income | 44,913 | 18,397 | 22,212 | (20,227 | ) | 65,295 | |||||||||||||||
Interest expense | 1,637 | 2,415 | 5 | — | 4,057 | ||||||||||||||||
Charge for funds used (1) | 1,490 | 14,374 | 4,363 | (20,227 | ) | — | |||||||||||||||
Total interest expense | 3,127 | 16,789 | 4,368 | (20,227 | ) | 4,057 | |||||||||||||||
Net interest income | 41,786 | 1,608 | 17,844 | — | 61,238 | ||||||||||||||||
Provision for loan losses | — | — | (1,000 | ) | — | (1,000 | ) | ||||||||||||||
Net interest income after provision for loan losses | 41,786 | 1,608 | 18,844 | — | 62,238 | ||||||||||||||||
Noninterest income | 5,288 | — | 2,721 | — | 8,009 | ||||||||||||||||
Noninterest expense | 12,373 | 186 | 19,922 | — | 32,481 | ||||||||||||||||
Segment pre-tax profit | $ | 34,701 | $ | 1,422 | $ | 1,643 | $ | — | $ | 37,766 | |||||||||||
Segment assets as of September 30, 2014 | $ | 6,089,389 | $ | 3,431,467 | $ | 789,656 | $ | (2,887,663 | ) | $ | 7,422,849 | ||||||||||
-1 | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 36,024 | $ | 13,443 | $ | 8,607 | $ | — | $ | 58,074 | |||||||||||
Credit for funds provided (1) | 6,782 | — | 10,667 | (17,449 | ) | — | |||||||||||||||
Total interest income | 42,806 | 13,443 | 19,274 | (17,449 | ) | 58,074 | |||||||||||||||
Interest expense | 1,551 | 2,435 | 115 | — | 4,101 | ||||||||||||||||
Charge for funds used (1) | 919 | 11,595 | 4,935 | (17,449 | ) | — | |||||||||||||||
Total interest expense | 2,470 | 14,030 | 5,050 | (17,449 | ) | 4,101 | |||||||||||||||
Net interest income | 40,336 | (587 | ) | 14,224 | — | 53,973 | |||||||||||||||
Provision for loan losses | — | — | (3,750 | ) | — | (3,750 | ) | ||||||||||||||
Net interest income after provision for loan losses | 40,336 | (587 | ) | 17,974 | — | 57,723 | |||||||||||||||
Noninterest income | 5,306 | — | (349 | ) | — | 4,957 | |||||||||||||||
Noninterest expense | 11,514 | 178 | 14,022 | — | 25,714 | ||||||||||||||||
Segment pre-tax profit (loss) | $ | 34,128 | $ | (765 | ) | $ | 3,603 | $ | — | $ | 36,966 | ||||||||||
Segment assets as of September 30, 2013 | $ | 5,305,357 | $ | 2,855,964 | $ | 732,999 | $ | (2,337,037 | ) | $ | 6,557,283 | ||||||||||
(1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. | |||||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 105,212 | $ | 52,504 | $ | 29,857 | $ | — | $ | 187,573 | |||||||||||
Credit for funds provided (1) | 22,924 | — | 34,914 | (57,838 | ) | — | |||||||||||||||
Total interest income | 128,136 | 52,504 | 64,771 | (57,838 | ) | 187,573 | |||||||||||||||
Interest expense | 4,835 | 7,178 | 221 | — | 12,234 | ||||||||||||||||
Charge for funds used (1) | 3,817 | 40,607 | 13,414 | (57,838 | ) | — | |||||||||||||||
Total interest expense | 8,652 | 47,785 | 13,635 | (57,838 | ) | 12,234 | |||||||||||||||
Net interest income | 119,484 | 4,719 | 51,136 | — | 175,339 | ||||||||||||||||
Provision for loan losses | — | — | (16,100 | ) | — | (16,100 | ) | ||||||||||||||
Net interest income after provision for loan losses | 119,484 | 4,719 | 67,236 | — | 191,439 | ||||||||||||||||
Noninterest income | 15,232 | — | 11,325 | — | 26,557 | ||||||||||||||||
Noninterest expense | 35,723 | 564 | 58,675 | — | 94,962 | ||||||||||||||||
Segment pre-tax profit | $ | 98,993 | $ | 4,155 | $ | 19,886 | $ | — | $ | 123,034 | |||||||||||
Segment assets as of September 30, 2014 | $ | 6,089,389 | $ | 3,431,467 | $ | 789,656 | $ | (2,887,663 | ) | $ | 7,422,849 | ||||||||||
(1) Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Centers | Treasury | Other | Eliminations | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest income, including loan fees | $ | 106,660 | $ | 37,872 | $ | 28,948 | $ | — | $ | 173,480 | |||||||||||
Credit for funds provided (1) | 19,603 | — | 31,052 | (50,655 | ) | — | |||||||||||||||
Total interest income | 126,263 | 37,872 | 60,000 | (50,655 | ) | 173,480 | |||||||||||||||
Interest expense | 4,495 | 7,270 | 558 | — | 12,323 | ||||||||||||||||
Charge for funds used (1) | 3,025 | 32,973 | 14,657 | (50,655 | ) | — | |||||||||||||||
Total interest expense | 7,520 | 40,243 | 15,215 | (50,655 | ) | 12,323 | |||||||||||||||
Net interest income | 118,743 | (2,371 | ) | 44,785 | — | 161,157 | |||||||||||||||
Provision for loan losses | — | — | (9,950 | ) | — | (9,950 | ) | ||||||||||||||
Net interest income after provision for loan losses | 118,743 | (2,371 | ) | 54,735 | — | 171,107 | |||||||||||||||
Noninterest income | 15,889 | 2,094 | 1,414 | — | 19,397 | ||||||||||||||||
Noninterest expense | 34,410 | 539 | 49,811 | — | 84,760 | ||||||||||||||||
Segment pre-tax profit | $ | 100,222 | $ | (816 | ) | $ | 6,338 | $ | — | $ | 105,744 | ||||||||||
Segment assets as of September 30, 2013 | $ | 5,305,357 | $ | 2,855,964 | $ | 732,999 | $ | (2,337,037 | ) | $ | 6,557,283 | ||||||||||
-1 | Credit for funds provided and charges for funds used are eliminated in the condensed consolidated presentation. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Fair Value of Derivative Instruments | ' | ||||||||||||
The location of the asset and liability, and their respective fair values are summarized in the table below: | |||||||||||||
September 30, 2014 | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Location | Value | Location | Value | ||||||||||
(Dollars in thousands) | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest rate swaps | Other assets | $ | 9,317 | Other liabilities | $ | 9,317 | |||||||
Total derivatives | $ | 9,317 | $ | 9,317 | |||||||||
December 31, 2013 | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Location | Value | Location | Value | ||||||||||
(Dollars in thousands) | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest rate swaps | Other assets | $ | 10,846 | Other liabilities | $ | 10,846 | |||||||
Total derivatives | $ | 10,846 | $ | 10,846 | |||||||||
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Summary of Components of Other Comprehensive Income | ' | ||||||||||||
The tables below provide a summary of the components of other comprehensive income (“OCI”) for the three and nine months ended September 30, 2014 and 2013: | |||||||||||||
For the Three Months Ended | |||||||||||||
September 30, 2014 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | (10,291 | ) | $ | (4,322 | ) | $ | (5,969 | ) | ||||
Net change | $ | (10,291 | ) | $ | (4,322 | ) | $ | (5,969 | ) | ||||
For the Three Months Ended | |||||||||||||
September 30, 2013 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 421 | $ | 176 | $ | 245 | |||||||
Net change | $ | 421 | $ | 176 | $ | 245 | |||||||
For the Nine Months Ended | |||||||||||||
September 30, 2014 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | 47,272 | $ | 19,854 | $ | 27,418 | |||||||
Net change | $ | 47,272 | $ | 19,854 | $ | 27,418 | |||||||
For the Nine Months Ended | |||||||||||||
September 30, 2013 | |||||||||||||
Before-Tax | Tax Effect | After-Tax | |||||||||||
(Dollars in thousands) | |||||||||||||
Investment securities available-for-sale: | |||||||||||||
Net change in fair value recorded in accumulated OCI | $ | (65,129 | ) | $ | (27,355 | ) | $ | (37,774 | ) | ||||
Net realized gains reclassified into earnings (1) | (2,094 | ) | (879 | ) | (1,215 | ) | |||||||
Net change | $ | (67,223 | ) | $ | (28,234 | ) | $ | (38,989 | ) | ||||
-1 | Net realized gains are included in noninterest income in the unaudited condensed consolidated statements of earnings and comprehensive income for the nine months ended September 30, 2013. | ||||||||||||
Summary of Change in Accumulated Other Comprehensive Income | ' | ||||||||||||
The following table provides a summary of the change in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013: | |||||||||||||
Investment Securities | |||||||||||||
Available-for-Sale | |||||||||||||
(Dollars in thousands) | |||||||||||||
Balance, January 1, 2014 | $ | (9,330 | ) | ||||||||||
Net change in fair value recorded in accumulated OCI | 27,418 | ||||||||||||
Net realized losses reclassified into earnings | — | ||||||||||||
Balance, September 30, 2014 | $ | 18,088 | |||||||||||
Investment Securities | |||||||||||||
Available-for-Sale | |||||||||||||
(Dollars in thousands) | |||||||||||||
Balance, January 1, 2013 | $ | 43,251 | |||||||||||
Net change in fair value recorded in accumulated OCI | (37,774 | ) | |||||||||||
Net realized gains reclassified into earnings | (1,215 | ) | |||||||||||
Balance, September 30, 2013 | $ | 4,262 | |||||||||||
Balance_Sheet_Offsetting_Table
Balance Sheet Offsetting (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Balance Sheet Offsetting | ' | ||||||||||||||||||||||||
The repurchase agreements are not offset in the condensed consolidated balances. | |||||||||||||||||||||||||
Gross Amounts | Gross Amounts | Net Amounts of | Gross Amounts Not Offset in | Net | |||||||||||||||||||||
Recognized in the | offset in the | Assets Presented | the Condensed Consolidated | Amount | |||||||||||||||||||||
Condensed | Condensed | in the Condensed | Balance Sheets | ||||||||||||||||||||||
Consolidated | Consolidated | Consolidated | |||||||||||||||||||||||
Balance Sheets | Balance Sheets | Balance Sheets | Financial | Collateral | |||||||||||||||||||||
Instruments | Pledged | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 9,317 | $ | — | $ | — | $ | 9,317 | $ | — | $ | 9,317 | |||||||||||||
Total | $ | 9,317 | $ | — | $ | — | $ | 9,317 | $ | — | $ | 9,317 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 9,888 | $ | (571 | ) | $ | 9,317 | $ | 571 | $ | (16,671 | ) | $ | (6,783 | ) | ||||||||||
Repurchase agreements | 528,824 | — | 528,824 | — | (650,185 | ) | (121,361 | ) | |||||||||||||||||
Total | $ | 538,712 | $ | (571 | ) | $ | 538,141 | $ | 571 | $ | (666,856 | ) | $ | (128,144 | ) | ||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 10,846 | $ | — | $ | — | $ | 10,846 | $ | — | $ | 10,846 | |||||||||||||
Total | $ | 10,846 | $ | — | $ | — | $ | 10,846 | $ | — | $ | 10,846 | |||||||||||||
Financial liabilities: | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | 12,908 | $ | (2,062 | ) | $ | 10,846 | $ | 2,062 | $ | (16,179 | ) | $ | (3,271 | ) | ||||||||||
Repurchase agreements | 643,251 | — | 643,251 | — | (649,385 | ) | (6,134 | ) | |||||||||||||||||
Total | $ | 656,159 | $ | (2,062 | ) | $ | 654,097 | $ | 2,062 | $ | (665,564 | ) | $ | (9,405 | ) | ||||||||||
Business_Additional_Informatio
Business - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | 15-May-14 |
Branch | Branch | |
Schedule Of Description Of Company [Line Items] | ' | ' |
Number of inactive subsidiaries | 1 | ' |
Bank operated Business Financial Centers, number | 40 | ' |
Bank operated Commercial Banking Centers, number | 6 | ' |
Bank operated trust office locations, number | 3 | ' |
American Security Bank [Member] | ' | ' |
Schedule Of Description Of Company [Line Items] | ' | ' |
Total assets | ' | $433 |
Number of bank branches | ' | 5 |
Number of branch locations consolidated | 2 | ' |
American Security Bank [Member] | Electronic Branch [Member] | ' | ' |
Schedule Of Description Of Company [Line Items] | ' | ' |
Number of bank branches | ' | 2 |
Number of banking vestibules closed | 2 | ' |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | |
Oct. 16, 2009 | Sep. 30, 2014 | Oct. 16, 2009 | |
Plans | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of days on which collection of interest on principal is no longer probable | ' | '90 days | ' |
Period over which borrower has to demonstrate repayment performance in compliance with restructured terms to take loan out of nonaccrual status | ' | '6 months | ' |
Original terms of modified loans | ' | '6 months | ' |
Number of days on which charge-offs unsecured consumer loans are recorded | ' | '120 days | ' |
Minimum loan amount for credit review process | ' | $1,000,000 | ' |
Allowance for loan losses look-back period, revised | ' | 'Rolling twenty quarters | ' |
Agreed percentage of losses in loss sharing agreement | ' | ' | 80.00% |
Loss amount with respect to covered assets | 26,700,000 | ' | ' |
Agreed percentage of reimbursement in loss sharing agreement | 95.00% | ' | ' |
Goodwill impairment | ' | 0 | ' |
Number of stock-based employee compensation plans | ' | 3 | ' |
Previously Reported [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Allowance for loan losses look-back period, previous | ' | '3 years | ' |
Commercial Loans [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Loss sharing agreement term | '5 years | ' | ' |
Loss recovery provisions term | '8 years | ' | ' |
Single-family Residential Loans [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Loss sharing agreement term | '10 years | ' | ' |
Loss recovery provisions term | '10 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of days over which principal or interest payments are past due to consider non-covered loans | ' | '30 days | ' |
Number of days for which principal or interest payments on non-covered loans remain accrual | ' | '30 days | ' |
Length of modified debt term | ' | '3 months | ' |
Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of days for which principal or interest payments on non-covered loans remain accrual | ' | '89 days | ' |
Length of modified debt term | ' | '12 months | ' |
Loss recoveries on covered assets | $144,000,000 | ' | ' |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | 15-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | 15-May-14 | Sep. 30, 2014 | 15-May-14 | 15-May-14 | |
American Security Bank [Member] | American Security Bank [Member] | American Security Bank [Member] | American Security Bank [Member] | American Security Bank [Member] | American Security Bank [Member] | American Security Bank [Member] | ||||
Branch | Branch | Electronic Branch [Member] | Electronic Branch [Member] | Loan Production Office [Member] | ||||||
Branch | Branch | Branch | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition date | ' | 16-Oct-09 | ' | ' | ' | 15-May-14 | ' | ' | ' | ' |
Acquired assets and assumed liabilities for cash | ' | ' | ' | $57,000,000 | ' | ' | ' | ' | ' | ' |
Number of bank branches | ' | ' | ' | ' | ' | ' | 5 | ' | 2 | 1 |
Number of branch locations consolidated | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of banking vestibules closed | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Estimated fair values refinement period | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' |
Goodwill | 74,244,000 | 74,244,000 | 55,097,000 | ' | ' | ' | 19,100,000 | ' | ' | ' |
Total fair value of assets acquired | ' | ' | ' | ' | ' | ' | 436,400,000 | ' | ' | ' |
Cash and cash due from banks | ' | ' | ' | ' | ' | ' | 117,800,000 | ' | ' | ' |
Investment securities available for sale | ' | ' | ' | ' | ' | ' | 44,500,000 | ' | ' | ' |
FHLB stock | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' |
Loans receivable | ' | ' | ' | ' | ' | ' | 242,700,000 | ' | ' | ' |
Fixed assets | ' | ' | ' | ' | ' | ' | 4,800,000 | ' | ' | ' |
Core deposit intangible assets | ' | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' |
Other real estate owned | ' | ' | ' | ' | ' | ' | 1,600,000 | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' |
Total fair value of liabilities assumed | ' | ' | ' | ' | ' | ' | 379,400,000 | ' | ' | ' |
Deposits | ' | ' | ' | ' | ' | ' | 378,400,000 | ' | ' | ' |
Other liabilities | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' |
Non-recurring merger related expenses | $640,000 | $1,932,000 | ' | ' | $640,000 | $1,900,000 | ' | ' | ' | ' |
Investment_Securities_Summary_
Investment Securities - Summary of Amortized Cost and Estimated Fair Value of Investment Securities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $3,128,869 | $2,679,727 |
Gross Unrealized Holding Gain | 54,079 | 38,537 |
Gross Unrealized Holding Loss | -22,892 | -54,622 |
Fair Value | 3,160,056 | 2,663,642 |
Total Percent | 100.00% | 100.00% |
Government agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 342,560 | 350,378 |
Gross Unrealized Holding Gain | 2 | 22 |
Gross Unrealized Holding Loss | -13,363 | -23,875 |
Fair Value | 329,199 | 326,525 |
Total Percent | 10.42% | 12.26% |
Residential mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,901,645 | 1,391,631 |
Gross Unrealized Holding Gain | 22,056 | 13,100 |
Gross Unrealized Holding Loss | -7,950 | -24,788 |
Fair Value | 1,915,751 | 1,379,943 |
Total Percent | 60.62% | 51.81% |
CMOs / REMICs - residential [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 315,298 | 361,573 |
Gross Unrealized Holding Gain | 7,300 | 6,576 |
Gross Unrealized Holding Loss | -643 | -1,974 |
Fair Value | 321,955 | 366,175 |
Total Percent | 10.19% | 13.75% |
Municipal bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 564,366 | 571,145 |
Gross Unrealized Holding Gain | 24,583 | 18,839 |
Gross Unrealized Holding Loss | -936 | -3,893 |
Fair Value | 588,013 | 586,091 |
Total Percent | 18.61% | 22.00% |
Other securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 5,000 | 5,000 |
Gross Unrealized Holding Gain | 138 | 0 |
Gross Unrealized Holding Loss | 0 | -92 |
Fair Value | $5,138 | $4,908 |
Total Percent | 0.16% | 0.18% |
Investment_Securities_Addition
Investment Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Number of securities | ' | ' | 13 | ' | ' | ' |
Investment securities, par value | ' | ' | $94,200,000 | ' | ' | ' |
Pre-tax gain on sale of securities | ' | ' | ' | ' | 2,094,000 | ' |
Gains (loss) recognized | 0 | ' | ' | 0 | ' | ' |
Average life of investment grade debt securities, years | ' | ' | ' | '4 years 2 months 12 days | ' | ' |
Gross unrealized holding losses | 0 | ' | ' | 0 | ' | ' |
Book value of the bond | 1,598,000 | ' | ' | 1,598,000 | ' | 1,777,000 |
Credit-related impairment loss on investment securities held-to-maturity | 0 | 0 | ' | 0 | 0 | ' |
Investment securities pledged as collateral | 3,130,000,000 | ' | ' | 3,130,000,000 | ' | 2,600,000,000 |
Investment in FHLB stock, impairment losses | 0 | ' | ' | 0 | ' | ' |
Government agency [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Agency bond callable | ' | ' | ' | 137,200,000 | ' | ' |
United States [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Securities issued by U.S. government percentage | 81.00% | ' | ' | 81.00% | ' | ' |
CMOs / REMICs - residential [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
CMO/REMICs backed by whole loans issued by private-label companies (non-government sponsored) | 388,000 | ' | ' | 388,000 | ' | ' |
Investment security classified as held-to-maturity, number | 1 | ' | ' | 1 | ' | ' |
Held-to-Maturity securities, average FICO score | 715 | ' | ' | 715 | ' | ' |
Held-to-Maturity securities, acquired price, percentage | 98.25% | ' | ' | 98.25% | ' | ' |
Average percentage of LTV | 71.00% | ' | ' | 71.00% | ' | ' |
Average life of investment grade debt securities, years | ' | ' | ' | '30 years | ' | ' |
Current fair value percentage of Held-to-Maturity security against par value | 79.27% | ' | ' | 79.27% | ' | ' |
Investment contractual cash flows guaranteed by Government, percentage | 99.98% | ' | ' | 99.98% | ' | ' |
Investment contractual cash flows guaranteed by banks, percentage | 0.02% | ' | ' | 0.02% | ' | ' |
Alt-A bond [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Book value of the bond | 1,600,000 | ' | ' | 1,600,000 | ' | ' |
Net impairment losses | $1,900,000 | ' | ' | $1,900,000 | ' | ' |
Municipal bonds [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Average life of investment grade debt securities, years | ' | ' | ' | '8 years 7 months 6 days | ' | ' |
Investment_Securities_Summary_1
Investment Securities - Summary of Continuous Unrealized Loss Position of Securities (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less Than 12 Months | $452,172 | $1,275,903 |
Gross Unrealized Holding Losses, Less Than 12 Months | 843 | 49,058 |
Fair Value, 12 Months or Longer | 693,499 | 89,647 |
Gross Unrealized Holding Losses, 12 Months or Longer | 22,049 | 5,564 |
Fair Value | 1,145,671 | 1,365,550 |
Gross Unrealized Holding Losses | 22,892 | 54,622 |
Government agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less Than 12 Months | 17,979 | 267,936 |
Gross Unrealized Holding Losses, Less Than 12 Months | 37 | 20,514 |
Fair Value, 12 Months or Longer | 306,211 | 38,563 |
Gross Unrealized Holding Losses, 12 Months or Longer | 13,326 | 3,361 |
Fair Value | 324,190 | 306,499 |
Gross Unrealized Holding Losses | 13,363 | 23,875 |
Residential mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less Than 12 Months | 399,364 | 851,621 |
Gross Unrealized Holding Losses, Less Than 12 Months | 677 | 23,313 |
Fair Value, 12 Months or Longer | 309,465 | 22,999 |
Gross Unrealized Holding Losses, 12 Months or Longer | 7,273 | 1,475 |
Fair Value | 708,829 | 874,620 |
Gross Unrealized Holding Losses | 7,950 | 24,788 |
CMOs / REMICs - residential [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less Than 12 Months | 28,420 | 104,322 |
Gross Unrealized Holding Losses, Less Than 12 Months | 76 | 1,780 |
Fair Value, 12 Months or Longer | 42,092 | 17,747 |
Gross Unrealized Holding Losses, 12 Months or Longer | 567 | 194 |
Fair Value | 70,512 | 122,069 |
Gross Unrealized Holding Losses | 643 | 1,974 |
Municipal bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less Than 12 Months | 6,409 | 47,116 |
Gross Unrealized Holding Losses, Less Than 12 Months | 53 | 3,359 |
Fair Value, 12 Months or Longer | 35,731 | 10,338 |
Gross Unrealized Holding Losses, 12 Months or Longer | 883 | 534 |
Fair Value | 42,140 | 57,454 |
Gross Unrealized Holding Losses | 936 | 3,893 |
Other securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less Than 12 Months | 0 | 4,908 |
Gross Unrealized Holding Losses, Less Than 12 Months | 0 | 92 |
Fair Value, 12 Months or Longer | 0 | 0 |
Gross Unrealized Holding Losses, 12 Months or Longer | 0 | 0 |
Fair Value | 0 | 4,908 |
Gross Unrealized Holding Losses | $0 | $92 |
Investment_Securities_Summary_2
Investment Securities - Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Detail) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Investments, Debt and Equity Securities [Abstract] | ' |
Due in one year or less, Amortized Cost | $130,897 |
Due after one year through five years, Amortized Cost | 2,116,400 |
Due after five years through ten years, Amortized Cost | 796,615 |
Due after ten years, Amortized Cost | 84,957 |
Total Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 3,128,869 |
Due in one year or less, Fair Value | 133,756 |
Due after one year through five years, Fair Value | 2,156,397 |
Due after five years through ten years, Fair Value | 782,833 |
Due after ten years, Fair Value | 87,070 |
Total, Available-for-sale, Fair Value | $3,160,056 |
Due in one year or less, Weighted-Average Yield | 3.51% |
Due after one year through five years, Weighted-Average Yield | 2.48% |
Due after five years through ten years, Weighted-Average Yield | 2.20% |
Due after ten years, Weighted-Average Yield | 2.72% |
Total, Available-for-sale, Weighted-Average Yield | 2.46% |
Covered_Assets_and_FDIC_Loss_S2
Covered Assets and FDIC Loss Sharing Asset - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | |
Oct. 16, 2009 | Sep. 30, 2014 | Dec. 31, 2013 | |
Business Combinations [Abstract] | ' | ' | ' |
Acquisition date | ' | 16-Oct-09 | ' |
After-tax gain included in earnings due to purchase method | $12,300,000 | ' | ' |
Remaining discount associated with SJB loans | ' | 8,200,000 | ' |
Expected cash flows | ' | 5,700,000 | ' |
Remaining average lives of respective pools loans | ' | '4 years 2 months 12 days | ' |
Remaining average lives of respective individual loans | ' | '6 months | ' |
FDIC loss sharing asset | ' | 331,000 | 4,764,000 |
Remaining contract life expiration date | ' | 31-Oct-14 | ' |
Allowance for covered loans | ' | $0 | $0 |
Covered_Assets_and_FDIC_Loss_S3
Covered Assets and FDIC Loss Sharing Asset - Summary of Components of Covered Loan and Lease Finance Receivables (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Real estate: | ' | ' |
Less: Allowance for covered loan losses | $0 | $0 |
Covered Loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | 16,877 | 20,461 |
Real estate: | ' | ' |
Commercial real estate | 116,854 | 141,141 |
Construction | 0 | 644 |
SFR mortgage | 211 | 313 |
Dairy & livestock and agribusiness | 3,270 | 6,000 |
Municipal lease finance receivables | 0 | 0 |
Consumer and other loans | 3,392 | 4,545 |
Total covered gross loans | 140,604 | 173,104 |
Less: Purchase accounting discount | -8,253 | -12,789 |
Gross covered loans, net of discount | 132,351 | 160,315 |
Less: Allowance for covered loan losses | 0 | 0 |
Net covered loans | $132,351 | $160,315 |
Covered_Assets_and_FDIC_Loss_S4
Covered Assets and FDIC Loss Sharing Asset - Summary of Covered Loans by Internal Risk Ratings (Detail) (Covered Loans [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total covered gross loans | $140,604 | $173,104 |
Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total covered gross loans | 26,503 | 38,961 |
Watch List [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total covered gross loans | 79,635 | 74,369 |
Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total covered gross loans | 6,542 | 15,492 |
Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total covered gross loans | 27,924 | 44,241 |
Doubtful & Loss [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Total covered gross loans | $0 | $41 |
NonCovered_Loan_and_Lease_Fina2
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Summary of Components of Loan and Lease Finance Receivables (Detail) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Gross loans, net of deferred loan fees | $3,573,885 | ' | $3,385,916 | ' | ' | ' |
Less: Allowance for non-covered loan losses | -59,582 | ' | -75,235 | ' | ' | ' |
Non-Covered Loans [Member] | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Commercial and industrial | 513,644 | ' | 512,792 | ' | ' | ' |
Commercial real estate | 2,465,915 | ' | 2,207,515 | ' | ' | ' |
Construction | 67,229 | ' | 47,109 | ' | ' | ' |
SFR mortgage | 193,205 | ' | 189,233 | ' | ' | ' |
Dairy & livestock and agribusiness | 192,930 | ' | 294,292 | ' | ' | ' |
Municipal lease finance receivables | 80,013 | ' | 89,106 | ' | ' | ' |
Consumer and other loans | 69,811 | ' | 55,103 | ' | ' | ' |
Gross non-covered loans | 3,582,747 | ' | 3,395,150 | ' | ' | ' |
Less: Deferred loan fees, net | -8,862 | ' | -9,234 | ' | ' | ' |
Gross loans, net of deferred loan fees | 3,573,885 | ' | 3,385,916 | ' | ' | ' |
Less: Allowance for non-covered loan losses | -59,582 | -60,974 | -75,235 | -80,713 | -85,457 | -92,441 |
Net covered loans | $3,514,303 | ' | $3,310,681 | ' | ' | ' |
NonCovered_Loan_and_Lease_Fina3
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
SecurityLoan | SecurityLoan | SecurityLoan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Non-covered fixed rate loans held | $1,750,000,000 | ' | $1,750,000,000 | ' | ' |
Secure borrowings and available lines of credit from FHLB and Federal Reserve Bank | 2,610,000,000 | ' | 2,610,000,000 | ' | 2,310,000,000 |
Impaired, at carrying value | 92,658,000 | 108,679,000 | 92,658,000 | 108,679,000 | 106,909,000 |
Loans classified as troubled debt restructured | 78,200,000 | ' | 78,200,000 | ' | ' |
Impaired construction speculative loans | ' | ' | 9,700,000 | ' | 10,000,000 |
Number of nonaccruing loan | 1 | ' | 1 | ' | 1 |
Provision for unfunded loan commitments | 1,300,000 | 500,000 | 1,300,000 | 500,000 | ' |
Reserve for credit risk for undisbursed commitments | 7,800,000 | ' | 7,800,000 | ' | 9,100,000 |
Number of loans | 0 | ' | 0 | ' | ' |
Allocation of allowance to troubled debt restructuring | 389,000 | ' | 389,000 | ' | 2,700,000 |
Nonaccrual commercial real estate loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Outstanding balance | 14,800,000 | ' | 14,800,000 | ' | ' |
Nonaccrual consumer loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Outstanding balance | 461,000 | ' | 461,000 | ' | ' |
Impaired loans-non-covered [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Impaired, at carrying value | ' | ' | ' | ' | 106,900,000 |
Nonaccrual residential construction and land loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Outstanding balance | 9,700,000 | ' | 9,700,000 | ' | ' |
Nonaccrual commercial and industrial loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Outstanding balance | 6,700,000 | ' | 6,700,000 | ' | ' |
Performing financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Impaired, at carrying value | 92,700,000 | ' | 92,700,000 | ' | ' |
Loans classified as troubled debt restructured | 55,600,000 | ' | 55,600,000 | ' | ' |
Number of performing loans | ' | ' | 39 | ' | ' |
Number of loans removed from TDR classification | 0 | 0 | 0 | 0 | ' |
Nonperforming financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Impaired, at carrying value | 22,600,000 | ' | 22,600,000 | ' | ' |
Loans classified as troubled debt restructured | 22,600,000 | ' | 22,600,000 | ' | ' |
Nonaccrual single family mortgage loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Outstanding balance | 4,000,000 | ' | 4,000,000 | ' | ' |
Allowance impaired loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Loans classified as troubled debt restructured | 754,000,000,000 | ' | 754,000,000,000 | ' | ' |
Allowance impaired non-covered loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Impaired, at carrying value | ' | ' | ' | ' | 3,200,000 |
Commercial real estate loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Percentage of total non-covered loan portfolio | 68.83% | ' | 68.83% | ' | ' |
Commercial real estate loans [Member] | Performing financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Loans classified as troubled debt restructured | 16,600,000 | ' | 16,600,000 | ' | ' |
Number of loans | ' | ' | 10 | ' | ' |
Construction [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Percentage of total non-covered loan portfolio | 1.88% | ' | 1.88% | ' | ' |
Construction [Member] | Performing financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Loans classified as troubled debt restructured | 16,700,000 | ' | 16,700,000 | ' | ' |
Number of loans | ' | ' | 2 | ' | ' |
Dairy & livestock and agribusiness [Member] | Performing financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Loans classified as troubled debt restructured | 17,500,000 | ' | 17,500,000 | ' | ' |
Number of loans | ' | ' | 10 | ' | ' |
Single-family Residential Loans [Member] | Performing financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Loans classified as troubled debt restructured | 3,800,000 | ' | 3,800,000 | ' | ' |
Number of loans | ' | ' | 11 | ' | ' |
Commercial and industrial [Member] | Performing financing receivable [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Loans classified as troubled debt restructured | 1,000,000 | ' | 1,000,000 | ' | ' |
Number of loans | ' | ' | 6 | ' | ' |
Nonaccrual dairy and livestock loans [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Outstanding balance | 1,500,000 | ' | 1,500,000 | ' | ' |
Non-covered impaired loans modified in troubled debt restructure [Member] | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' |
Impaired, at carrying value | $78,200,000 | ' | $78,200,000 | ' | ' |
NonCovered_Loan_and_Lease_Fina4
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Summary of Activity Related to Non-Covered Loans Held-for-Sale (Detail) (Non-Covered Loans Held-for-Sale Activity [Member], USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Non-Covered Loans Held-for-Sale Activity [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Balance, beginning of period | $3,667 | ' |
Originations of mortgage loans | ' | ' |
Sales of mortgage loans | ' | ' |
Transfer of mortgage loans to held for investment | ' | ' |
Sales of other loans | -3,667 | ' |
Transfers of other loans to held-for-sale | ' | ' |
Write-down of loans held-for-sale | ' | ' |
Balance, end of period | ' | ' |
NonCovered_Loan_and_Lease_Fina5
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Summary of Loan by Internal Risk Ratings (Detail) (Non-Covered Loans [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | $513,644 | $512,792 |
Commercial real estate, Owner occupied | 781,414 | 729,951 |
Commercial real estate, Non-owner occupied | 1,684,501 | 1,477,564 |
Construction, Speculative | 43,420 | 27,778 |
Construction, Non-speculative | 23,809 | 19,331 |
SFR mortgage | 193,205 | 189,233 |
Dairy & livestock and agribusiness | 192,930 | 294,292 |
Municipal lease finance receivables | 80,013 | 89,106 |
Consumer and other loans | 69,811 | 55,103 |
Total non-covered gross loans | 3,582,747 | 3,395,150 |
Pass [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | 306,627 | 312,927 |
Commercial real estate, Owner occupied | 529,273 | 449,853 |
Commercial real estate, Non-owner occupied | 1,305,708 | 1,104,065 |
Construction, Speculative | 23,230 | 8,611 |
Construction, Non-speculative | 11,230 | 6,940 |
SFR mortgage | 160,920 | 152,500 |
Dairy & livestock and agribusiness | 70,125 | 43,588 |
Municipal lease finance receivables | 36,609 | 43,445 |
Consumer and other loans | 56,971 | 43,225 |
Total non-covered gross loans | 2,500,693 | 2,165,154 |
Watch List [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | 125,212 | 128,068 |
Commercial real estate, Owner occupied | 161,659 | 147,165 |
Commercial real estate, Non-owner occupied | 254,429 | 242,431 |
Construction, Speculative | 2,872 | 21 |
Construction, Non-speculative | 3,476 | 3,190 |
SFR mortgage | 20,459 | 20,485 |
Dairy & livestock and agribusiness | 90,136 | 86,580 |
Municipal lease finance receivables | 23,091 | 18,338 |
Consumer and other loans | 6,860 | 6,938 |
Total non-covered gross loans | 688,194 | 653,216 |
Special Mention [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | 63,569 | 53,417 |
Commercial real estate, Owner occupied | 65,056 | 74,999 |
Commercial real estate, Non-owner occupied | 76,113 | 81,088 |
Construction, Speculative | ' | 1,529 |
Construction, Non-speculative | 2 | ' |
SFR mortgage | 2,455 | 3,302 |
Dairy & livestock and agribusiness | 16,240 | 92,514 |
Municipal lease finance receivables | 20,313 | 20,893 |
Consumer and other loans | 2,959 | 3,449 |
Total non-covered gross loans | 246,707 | 331,191 |
Substandard [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | 16,539 | 17,950 |
Commercial real estate, Owner occupied | 25,426 | 57,934 |
Commercial real estate, Non-owner occupied | 48,251 | 49,980 |
Construction, Speculative | 17,318 | 17,617 |
Construction, Non-speculative | 9,101 | 9,201 |
SFR mortgage | 9,371 | 12,946 |
Dairy & livestock and agribusiness | 14,966 | 69,005 |
Municipal lease finance receivables | ' | 6,430 |
Consumer and other loans | 2,825 | 1,491 |
Total non-covered gross loans | 143,797 | 242,554 |
Doubtful & Loss [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Commercial and industrial | 1,697 | 430 |
Commercial real estate, Owner occupied | ' | ' |
Commercial real estate, Non-owner occupied | ' | ' |
Construction, Speculative | ' | ' |
Construction, Non-speculative | ' | ' |
SFR mortgage | ' | ' |
Dairy & livestock and agribusiness | 1,463 | 2,605 |
Municipal lease finance receivables | ' | ' |
Consumer and other loans | 196 | ' |
Total non-covered gross loans | $3,356 | $3,035 |
NonCovered_Loan_and_Lease_Fina6
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Summary of Loan by Internal Risk Ratings (Parenthetical) (Detail) (Non-Covered Loans [Member], Doubtful & Loss [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Non-Covered Loans [Member] | Doubtful & Loss [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans classified as loss | $0 | $0 |
NonCovered_Loan_and_Lease_Fina7
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Schedule of Balance and Activity Related to Allowance for Loan Losses for Non-Covered Held-for-Investment Loans by Portfolio Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $75,235 | ' |
Provision for loan losses | -1,000 | -3,750 | -16,100 | -9,950 |
Ending Balance | 59,582 | ' | 59,582 | ' |
Non-Covered Loans [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 60,974 | 85,457 | 75,235 | 92,441 |
Charge-offs | -1,070 | -1,384 | -1,995 | -2,699 |
Recoveries | 678 | 390 | 2,442 | 921 |
Provision for loan losses | -1,000 | -3,750 | -16,100 | -9,950 |
Ending Balance | 59,582 | 80,713 | 59,582 | 80,713 |
Non-Covered Loans [Member] | Commercial and industrial [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 8,402 | 12,586 | 10,834 | 11,652 |
Charge-offs | -2 | -1,235 | -516 | -2,339 |
Recoveries | 187 | 315 | 748 | 523 |
Provision for loan losses | 97 | -1,022 | -2,382 | 808 |
Ending Balance | 8,684 | 10,644 | 8,684 | 10,644 |
Non-Covered Loans [Member] | Commercial real estate [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 35,918 | 44,392 | 39,402 | 47,457 |
Charge-offs | ' | ' | -352 | ' |
Recoveries | 2 | 34 | 140 | 100 |
Provision for loan losses | -286 | -1,007 | -3,556 | -4,138 |
Ending Balance | 35,634 | 43,419 | 35,634 | 43,419 |
Non-Covered Loans [Member] | Construction [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 605 | 1,172 | 1,305 | 2,291 |
Charge-offs | ' | ' | ' | ' |
Recoveries | 37 | 15 | 834 | 83 |
Provision for loan losses | 148 | 412 | -1,349 | -775 |
Ending Balance | 790 | 1,599 | 790 | 1,599 |
Non-Covered Loans [Member] | SFR mortgage [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 2,214 | 3,715 | 2,718 | 3,448 |
Charge-offs | ' | -110 | ' | -252 |
Recoveries | 188 | ' | 188 | 133 |
Provision for loan losses | -97 | -144 | -601 | 132 |
Ending Balance | 2,305 | 3,461 | 2,305 | 3,461 |
Non-Covered Loans [Member] | Dairy & livestock and agribusiness [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 5,428 | 14,225 | 11,728 | 18,696 |
Charge-offs | -1,061 | ' | -1,061 | ' |
Recoveries | 151 | 14 | 393 | 42 |
Provision for loan losses | -241 | -2,152 | -6,783 | -6,651 |
Ending Balance | 4,277 | 12,087 | 4,277 | 12,087 |
Non-Covered Loans [Member] | Municipal lease finance receivables [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 1,464 | 2,369 | 2,335 | 1,588 |
Charge-offs | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' |
Provision for loan losses | 4 | 69 | -867 | 850 |
Ending Balance | 1,468 | 2,438 | 1,468 | 2,438 |
Non-Covered Loans [Member] | Consumer and other loans [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 930 | 1,052 | 960 | 1,170 |
Charge-offs | -7 | -39 | -26 | -108 |
Recoveries | 113 | 12 | 139 | 40 |
Provision for loan losses | -169 | 25 | -206 | -52 |
Ending Balance | 867 | 1,050 | 867 | 1,050 |
Non-Covered Loans [Member] | Covered Loans [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | ' | ' | ' | ' |
Charge-offs | ' | ' | -40 | ' |
Recoveries | ' | ' | ' | ' |
Provision for loan losses | ' | ' | 40 | ' |
Ending Balance | ' | ' | ' | ' |
Non-Covered Loans [Member] | Unallocated [Member] | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' |
Beginning Balance | 6,013 | 5,946 | 5,953 | 6,139 |
Charge-offs | ' | ' | ' | ' |
Recoveries | ' | ' | ' | ' |
Provision for loan losses | -456 | 69 | -396 | -124 |
Ending Balance | $5,557 | $6,015 | $5,557 | $6,015 |
NonCovered_Loan_and_Lease_Fina8
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Schedule of Recorded Investment in Non-Covered Loans Held-for-Investment, and Related Allowance for Loan Losses by Portfolio Segment (Detail) (Non-Covered Loans [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | $92,658 | $108,679 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 3,490,089 | 3,181,792 |
Allowance for Loan Losses, Individually Evaluated for Impairment | 754 | 3,485 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 58,828 | 77,228 |
Commercial and industrial [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | 7,709 | 4,983 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 505,935 | 505,583 |
Allowance for Loan Losses, Individually Evaluated for Impairment | 711 | 387 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 7,954 | 10,257 |
Commercial real estate [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | 31,375 | 38,999 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 2,434,540 | 2,087,416 |
Allowance for Loan Losses, Individually Evaluated for Impairment | ' | 1 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 35,633 | 43,418 |
Construction [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | 26,419 | 27,239 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 40,810 | 20,409 |
Allowance for Loan Losses, Individually Evaluated for Impairment | ' | 144 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 790 | 1,455 |
SFR mortgage [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | 7,755 | 12,805 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 185,450 | 179,325 |
Allowance for Loan Losses, Individually Evaluated for Impairment | 39 | 290 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 2,266 | 3,171 |
Dairy & livestock and agribusiness [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | 18,939 | 24,494 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 173,991 | 237,144 |
Allowance for Loan Losses, Individually Evaluated for Impairment | ' | 2,658 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,278 | 9,429 |
Municipal lease finance receivables [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | ' | ' |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 80,013 | 99,188 |
Allowance for Loan Losses, Individually Evaluated for Impairment | ' | ' |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,468 | 2,438 |
Consumer and other loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | 461 | 159 |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 69,350 | 52,727 |
Allowance for Loan Losses, Individually Evaluated for Impairment | 4 | 5 |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 882 | 1,045 |
Unallocated [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Recorded Investment in Loans, Individually Evaluated for Impairment | ' | ' |
Recorded Investment in Loans, Collectively Evaluated for Impairment | ' | ' |
Allowance for Loan Losses, Individually Evaluated for Impairment | ' | ' |
Allowance for Loan Losses, Collectively Evaluated for Impairment | $5,557 | $6,015 |
NonCovered_Loan_and_Lease_Fina9
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Schedule of Recorded Investment in, and Aging of, Non-Covered Past Due and Nonaccrual Loans by Class of Loans (Detail) (Non-Covered Loans [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | $688,000 | $2,271,000 |
60-89 Days Past Due | ' | 1,028,000 |
Total Past Due and Accruing | 688,000 | 3,299,000 |
Nonaccrual | 37,050,000 | 39,954,000 |
Current | 3,545,009,000 | 3,351,897,000 |
Gross non-covered loans | 3,582,747,000 | 3,395,150,000 |
Commercial and industrial [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | 673,000 | 900,000 |
60-89 Days Past Due | ' | 93,000 |
Total Past Due and Accruing | 673,000 | 993,000 |
Nonaccrual | 6,666,000 | 3,861,000 |
Current | 506,305,000 | 507,938,000 |
Gross non-covered loans | 513,644,000 | 512,792,000 |
Commercial real estate Owner occupied [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | 220,000 |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | ' | 220,000 |
Nonaccrual | 4,034,000 | 4,105,000 |
Current | 777,380,000 | 725,626,000 |
Gross non-covered loans | 781,414,000 | 729,951,000 |
Commercial real estate Non-owner occupied [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | 303,000 |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | ' | 303,000 |
Nonaccrual | 10,761,000 | 8,305,000 |
Current | 1,673,740,000 | 1,468,956,000 |
Gross non-covered loans | 1,684,501,000 | 1,477,564,000 |
Construction Speculative [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | ' |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | ' | ' |
Nonaccrual | 9,666,000 | 9,966,000 |
Current | 33,754,000 | 17,812,000 |
Gross non-covered loans | 43,420,000 | 27,778,000 |
Construction Non-speculative [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | ' |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | ' | ' |
Nonaccrual | ' | ' |
Current | 23,809,000 | 19,331,000 |
Gross non-covered loans | 23,809,000 | 19,331,000 |
SFR mortgage [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | 773,000 |
60-89 Days Past Due | ' | 935,000 |
Total Past Due and Accruing | ' | 1,708,000 |
Nonaccrual | 3,999,000 | 7,577,000 |
Current | 189,206,000 | 179,948,000 |
Gross non-covered loans | 193,205,000 | 189,233,000 |
Dairy & livestock and agribusiness [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | ' |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | ' | ' |
Nonaccrual | 1,463,000 | 5,739,000 |
Current | 191,467,000 | 288,553,000 |
Gross non-covered loans | 192,930,000 | 294,292,000 |
Municipal lease finance receivables [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | ' | ' |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | ' | ' |
Nonaccrual | ' | ' |
Current | 80,013,000 | 89,106,000 |
Gross non-covered loans | 80,013,000 | 89,106,000 |
Consumer and other loans [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
30-59 Days Past Due | 15,000 | 75,000 |
60-89 Days Past Due | ' | ' |
Total Past Due and Accruing | 15,000 | 75,000 |
Nonaccrual | 461,000 | 401,000 |
Current | 69,335,000 | 54,627,000 |
Gross non-covered loans | $69,811,000 | $55,103,000 |
Recovered_Sheet1
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Schedule of Recorded Investment in, and Aging of, Non-Covered Past Due and Nonaccrual Loans by Class of Loans (Parenthetical) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ' | ' |
Nonaccruing loans, current | $22,700,000 | $23,900,000 |
Nonaccruing loans, 30-59 days past due | 3,200,000 | 473,000 |
Nonaccruing loans, 60-89 days past due | 13,000 | 854,000 |
Nonaccruing loans, 90+ days past due | $11,200,000 | $14,700,000 |
Recovered_Sheet2
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Schedule of Held-for-Investment Loans, Individually Evaluated for Impairment by Class of Loans (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, Total non-covered impaired loans | $92,658 | $108,679 | $106,909 |
Unpaid Principal Balance, Total non-covered impaired loans | 108,519 | 126,530 | 118,157 |
Related Allowance, Total non-covered impaired loans | 754 | 3,485 | 3,174 |
Average Recorded Investment, Total non-covered impaired loans | 96,419 | 112,594 | ' |
Interest Income Recognized, Total non-covered impaired loans | 2,419 | 2,393 | ' |
Recorded Investment, With no related allowance recorded | 90,564 | 91,026 | 93,932 |
Unpaid Principal Balance, With no related allowance recorded | 106,069 | 108,025 | 104,487 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 94,305 | 94,289 | ' |
Interest Income Recognized, With no related allowance recorded | 2,419 | 2,156 | ' |
Recorded Investment, With a related allowance recorded | 2,094 | 17,653 | 12,977 |
Unpaid Principal Balance, With a related allowance recorded | 2,450 | 18,505 | 13,670 |
Related Allowance, With a related allowance recorded | 754 | 3,485 | 3,174 |
Average Recorded Investment, With a related allowance recorded | 2,114 | 18,305 | ' |
Interest Income Recognized, With a related allowance recorded | ' | 237 | ' |
Commercial and industrial [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 6,096 | 4,595 | 4,668 |
Unpaid Principal Balance, With no related allowance recorded | 7,861 | 6,020 | 5,927 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 5,849 | 5,131 | ' |
Interest Income Recognized, With no related allowance recorded | 44 | 161 | ' |
Recorded Investment, With a related allowance recorded | 1,613 | 388 | 365 |
Unpaid Principal Balance, With a related allowance recorded | 1,951 | 408 | 379 |
Related Allowance, With a related allowance recorded | 711 | 387 | 365 |
Average Recorded Investment, With a related allowance recorded | 1,626 | 417 | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
Commercial real estate Owner occupied [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 8,742 | 13,361 | 13,041 |
Unpaid Principal Balance, With no related allowance recorded | 9,896 | 14,412 | 14,133 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 9,025 | 13,635 | ' |
Interest Income Recognized, With no related allowance recorded | 238 | 494 | ' |
Recorded Investment, With a related allowance recorded | ' | 7 | ' |
Unpaid Principal Balance, With a related allowance recorded | ' | 9 | ' |
Related Allowance, With a related allowance recorded | ' | 1 | ' |
Average Recorded Investment, With a related allowance recorded | ' | 11 | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
Commercial real estate Non-owner occupied [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 22,633 | 25,631 | 20,399 |
Unpaid Principal Balance, With no related allowance recorded | 29,545 | 36,851 | 26,155 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 23,252 | 26,838 | ' |
Interest Income Recognized, With no related allowance recorded | 541 | 553 | ' |
Recorded Investment, With a related allowance recorded | ' | ' | ' |
Unpaid Principal Balance, With a related allowance recorded | ' | ' | ' |
Related Allowance, With a related allowance recorded | ' | ' | ' |
Average Recorded Investment, With a related allowance recorded | ' | ' | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
Construction Speculative [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 17,318 | 10,369 | 17,617 |
Unpaid Principal Balance, With no related allowance recorded | 18,407 | 10,956 | 18,408 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 17,440 | 10,522 | ' |
Interest Income Recognized, With no related allowance recorded | 232 | ' | ' |
Recorded Investment, With a related allowance recorded | ' | 7,651 | ' |
Unpaid Principal Balance, With a related allowance recorded | ' | 7,651 | ' |
Related Allowance, With a related allowance recorded | ' | 144 | ' |
Average Recorded Investment, With a related allowance recorded | ' | 7,651 | ' |
Interest Income Recognized, With a related allowance recorded | ' | 232 | ' |
Construction Non-speculative [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 9,101 | 9,219 | 9,201 |
Unpaid Principal Balance, With no related allowance recorded | 9,101 | 9,219 | 9,201 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 9,145 | 9,219 | ' |
Interest Income Recognized, With no related allowance recorded | 463 | 428 | ' |
Recorded Investment, With a related allowance recorded | ' | ' | ' |
Unpaid Principal Balance, With a related allowance recorded | ' | ' | ' |
Related Allowance, With a related allowance recorded | ' | ' | ' |
Average Recorded Investment, With a related allowance recorded | ' | ' | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
SFR mortgage [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 7,285 | 10,156 | 10,919 |
Unpaid Principal Balance, With no related allowance recorded | 9,685 | 11,838 | 12,516 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 7,934 | 9,487 | ' |
Interest Income Recognized, With no related allowance recorded | 82 | 75 | ' |
Recorded Investment, With a related allowance recorded | 470 | 2,649 | 486 |
Unpaid Principal Balance, With a related allowance recorded | 484 | 2,764 | 489 |
Related Allowance, With a related allowance recorded | 39 | 290 | 103 |
Average Recorded Investment, With a related allowance recorded | 476 | 2,636 | ' |
Interest Income Recognized, With a related allowance recorded | ' | 5 | ' |
Dairy & livestock and agribusiness [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 18,939 | 17,553 | 17,702 |
Unpaid Principal Balance, With no related allowance recorded | 20,698 | 18,515 | 17,702 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 21,205 | 19,308 | ' |
Interest Income Recognized, With no related allowance recorded | 819 | 445 | ' |
Recorded Investment, With a related allowance recorded | ' | 6,941 | 12,110 |
Unpaid Principal Balance, With a related allowance recorded | ' | 7,654 | 12,783 |
Related Allowance, With a related allowance recorded | ' | 2,658 | 2,702 |
Average Recorded Investment, With a related allowance recorded | ' | 7,571 | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
Municipal lease finance receivables [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | ' | ' | ' |
Unpaid Principal Balance, With no related allowance recorded | ' | ' | ' |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | ' | ' | ' |
Interest Income Recognized, With no related allowance recorded | ' | ' | ' |
Recorded Investment, With a related allowance recorded | ' | ' | ' |
Unpaid Principal Balance, With a related allowance recorded | ' | ' | ' |
Related Allowance, With a related allowance recorded | ' | ' | ' |
Average Recorded Investment, With a related allowance recorded | ' | ' | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
Consumer and other loans [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | 450 | 142 | 385 |
Unpaid Principal Balance, With no related allowance recorded | 876 | 214 | 445 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Average Recorded Investment, With no related allowance recorded | 455 | 149 | ' |
Interest Income Recognized, With no related allowance recorded | ' | ' | ' |
Recorded Investment, With a related allowance recorded | 11 | 17 | 16 |
Unpaid Principal Balance, With a related allowance recorded | 15 | 19 | 19 |
Related Allowance, With a related allowance recorded | 4 | 5 | 4 |
Average Recorded Investment, With a related allowance recorded | 12 | 19 | ' |
Interest Income Recognized, With a related allowance recorded | ' | ' | ' |
Recovered_Sheet3
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Schedule of Held-for-Investment Loans, Individually Evaluated for Impairment by Class of Loans (Parenthetical) (Detail) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Receivables [Abstract] | ' | ' | ' |
Recorded Investment, With no related allowance recorded | $90,564 | $91,026 | $93,932 |
Recorded Investment, With a related allowance recorded | 2,094 | 17,653 | 12,977 |
Recorded Investment, Total non-covered impaired loans | 92,658 | 108,679 | 106,909 |
Unpaid Principal Balance, With no related allowance recorded | 106,069 | 108,025 | 104,487 |
Unpaid Principal Balance, With a related allowance recorded | 2,450 | 18,505 | 13,670 |
Related Allowance, Total non-covered impaired loans | 108,519 | 126,530 | 118,157 |
Related Allowance, With no related allowance recorded | ' | ' | ' |
Related Allowance, With a related allowance recorded | 754 | 3,485 | 3,174 |
Related Allowance, Total non-covered impaired loans | 754 | 3,485 | 3,174 |
Average Recorded Investment, With no related allowance recorded | 94,305 | 94,289 | ' |
Average Recorded Investment, With a related allowance recorded | 2,114 | 18,305 | ' |
Average Recorded Investment, Total non-covered impaired loans | 96,419 | 112,594 | ' |
Interest Income Recognized, With no related allowance recorded | 2,419 | 2,156 | ' |
Interest Income Recognized, With a related allowance recorded | ' | 237 | ' |
Interest Income Recognized, Total non-covered impaired loans | $2,419 | $2,393 | ' |
Recovered_Sheet4
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Summary of Activity Related to Troubled Debt Restructurings (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Performing TDRs [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Beginning balance | $61,878 | $61,566 | $66,955 | $50,392 |
New modifications | ' | ' | 41 | 21,364 |
Payoffs and payments, net | -6,270 | -2,481 | -11,388 | -13,820 |
TDRs returned to accrual status | ' | 110 | ' | 1,259 |
TDRs placed on nonaccrual status | ' | ' | ' | ' |
Ending balance | 55,608 | 59,195 | 55,608 | 59,195 |
Nonperforming TDRs [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Beginning balance | 27,397 | 26,497 | 25,119 | 31,309 |
New modifications | ' | 3,676 | 4,187 | 3,804 |
Charge-offs | -1,061 | -68 | -1,061 | -68 |
Payoffs and payments, net | -3,730 | -1,950 | -5,639 | -5,741 |
TDRs returned to accrual status | ' | -110 | ' | -1,259 |
TDRs placed on nonaccrual status | ' | ' | ' | ' |
Ending balance | $22,606 | $28,045 | $22,606 | $28,045 |
Recovered_Sheet5
Non-Covered Loan and Lease Finance Receivables and Allowance for Loan Losses - Summary of Loans Modified as Troubled Debt Restructurings (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Contract | Contract | Contract | Contract | |
Non-Covered Loans [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | 3 | 6 | 12 |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | $3,676 | $4,140 | $19,281 |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | 3,676 | 4,140 | 19,281 |
Troubled debt restructurings, Outstanding Recorded Investment | ' | 3,590 | 3,993 | 16,434 |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | 122 |
Commercial and industrial [Member] | Interest rate reduction [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | 2 | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | 368 | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | 368 | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | 337 | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Commercial and industrial [Member] | Change in amortization period or maturity [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | 1 | ' | 4 |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | 34 | ' | 265 |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | 34 | ' | 265 |
Troubled debt restructurings, Outstanding Recorded Investment | ' | 34 | ' | 223 |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | 122 |
Commercial real estate Owner occupied [Member] | Interest rate reduction [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | 1 | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | 199 | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | 199 | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | 187 | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Commercial real estate Owner occupied [Member] | Change in amortization period or maturity [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | ' | 1 |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 168 |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | ' | 168 |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | ' | 143 |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Commercial real estate Owner occupied [Member] | Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | ' | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Commercial real estate Non-owner occupied [Member] | Interest rate reduction [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | 3 | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | 3,573 | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | 3,573 | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | 3,469 | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Commercial real estate Non-owner occupied [Member] | Change in amortization period or maturity [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | ' | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Commercial real estate Non-owner occupied [Member] | Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | ' | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Dairy & livestock and agribusiness [Member] | Interest rate reduction [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | ' | ' | ' |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Outstanding Recorded Investment | ' | ' | ' | ' |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Dairy & livestock and agribusiness [Member] | Change in amortization period or maturity [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings, Number of Loans | ' | 2 | ' | 7 |
Troubled debt restructurings, Pre-Modification Outstanding Recorded Investment | ' | 3,642 | ' | 18,848 |
Troubled debt restructurings, Post-Modification Outstanding Recorded Investment | ' | 3,642 | ' | 18,848 |
Troubled debt restructurings, Outstanding Recorded Investment | ' | 3,556 | ' | 16,068 |
Troubled debt restructurings, Financial Effect Resulting From Modifications | ' | ' | ' | ' |
Earnings_Per_Share_Reconciliat2
Earnings Per Share Reconciliation - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per common share | 222,000 | 688,000 | 199,000 | 1,200,000 |
Earnings_Per_Share_Reconciliat3
Earnings Per Share Reconciliation - Schedule of Earnings Per Common Share Reconciliation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings per common share: | ' | ' | ' | ' |
Net earnings | $24,295 | $24,239 | $78,440 | $70,320 |
Less: Net earnings allocated to restricted stock | 134 | 74 | 409 | 218 |
Net earnings allocated to common shareholders | 24,161 | 24,165 | 78,031 | 70,102 |
Weighted average shares outstanding | 104,875 | 104,766 | 105,218 | 104,657 |
Earnings per common share | $0.23 | $0.23 | $0.74 | $0.67 |
Diluted earnings per common share: | ' | ' | ' | ' |
Net income allocated to common shareholders | $24,161 | $24,165 | $78,031 | $70,102 |
Weighted average shares outstanding | 104,875 | 104,766 | 105,218 | 104,657 |
Incremental shares from assumed exercise of outstanding options | 531 | 451 | 542 | 330 |
Diluted weighted average shares outstanding | 105,406 | 105,217 | 105,760 | 104,987 |
Diluted earnings per common share | $0.23 | $0.23 | $0.74 | $0.67 |
Fair_Value_Information_Additio
Fair Value Information - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Minimum [Member] | Maximum [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ' | ' | ' | ' |
Fair value assets transfers from Level 1 to Level 2 | $0 | $0 | ' | ' |
Fair value assets transfers from Level 2 to Level 1 | $0 | $0 | ' | ' |
Term of interest rate swap contracts by the counterparty, years | ' | ' | '3 years | '30 years |
Fair_Value_Information_Assets_
Fair Value Information - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | $538,141 | $654,097 |
Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | ' | ' |
Carrying Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | 9,317 | 10,846 |
Interest rate swaps | 9,317 | 10,846 |
Fair Value on Recurring Basis [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value on Recurring Basis [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 3,169,373 | 2,674,488 |
Total liabilities | 9,317 | 10,846 |
Fair Value on Recurring Basis [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value on Recurring Basis [Member] | Government agency [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Government agency [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 329,199 | 326,525 |
Fair Value on Recurring Basis [Member] | Government agency [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Residential mortgage-backed securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Residential mortgage-backed securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 1,915,751 | 1,379,943 |
Fair Value on Recurring Basis [Member] | Residential mortgage-backed securities [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | CMOs / REMICs - residential [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | CMOs / REMICs - residential [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 321,955 | 366,175 |
Fair Value on Recurring Basis [Member] | CMOs / REMICs - residential [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Municipal bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Municipal bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 588,013 | 586,091 |
Fair Value on Recurring Basis [Member] | Municipal bonds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Other securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Other securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 5,138 | 4,908 |
Fair Value on Recurring Basis [Member] | Other securities [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Investment securities - AFS [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Investment securities - AFS [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 3,160,056 | 2,663,642 |
Fair Value on Recurring Basis [Member] | Investment securities - AFS [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 0 | 0 |
Fair Value on Recurring Basis [Member] | Interest rate swaps [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Fair Value on Recurring Basis [Member] | Interest rate swaps [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | 9,317 | 10,846 |
Interest rate swaps | 9,317 | 10,846 |
Fair Value on Recurring Basis [Member] | Interest rate swaps [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total assets | 3,169,373 | 2,674,488 |
Total liabilities | 9,317 | 10,846 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | Government agency [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 329,199 | 326,525 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | Residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 1,915,751 | 1,379,943 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | CMOs / REMICs - residential [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 321,955 | 366,175 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 588,013 | 586,091 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | Other securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 5,138 | 4,908 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | Investment securities - AFS [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment securities - AFS | 3,160,056 | 2,663,642 |
Fair Value on Recurring Basis [Member] | Carrying Value [Member] | Interest rate swaps [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Interest rate swaps | 9,317 | 10,846 |
Interest rate swaps | $9,317 | $10,846 |
Fair_Value_Information_Assets_1
Fair Value Information - Assets and Liabilities Measured at Fair Value on Non-Recurring Basis (Detail) (Fair Value on Non-Recurring Basis [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Description of assets | ' | ' |
Total assets | $2,159 | $3,159 |
Impaired loans-non-covered [Member] | Commercial and industrial [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 911 | 627 |
Impaired loans-non-covered [Member] | Commercial real estate [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 117 | ' |
Impaired loans-non-covered [Member] | Dairy & livestock and agribusiness [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 1,061 | 2,096 |
Impaired loans-non-covered [Member] | Consumer and other loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 5 | 2 |
Covered Loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 65 | 434 |
Level 1 [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 1 [Member] | Impaired loans-non-covered [Member] | Commercial and industrial [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 1 [Member] | Impaired loans-non-covered [Member] | Commercial real estate [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 1 [Member] | Impaired loans-non-covered [Member] | Dairy & livestock and agribusiness [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 1 [Member] | Impaired loans-non-covered [Member] | Consumer and other loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 1 [Member] | Covered Loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 2 [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 2 [Member] | Impaired loans-non-covered [Member] | Commercial and industrial [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 2 [Member] | Impaired loans-non-covered [Member] | Commercial real estate [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 2 [Member] | Impaired loans-non-covered [Member] | Dairy & livestock and agribusiness [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 2 [Member] | Impaired loans-non-covered [Member] | Consumer and other loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 2 [Member] | Covered Loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | ' | ' |
Level 3 [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 6,270 | 12,934 |
Level 3 [Member] | Impaired loans-non-covered [Member] | Commercial and industrial [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 2,998 | 529 |
Level 3 [Member] | Impaired loans-non-covered [Member] | Commercial real estate [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 1,518 | ' |
Level 3 [Member] | Impaired loans-non-covered [Member] | Dairy & livestock and agribusiness [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 1,463 | 11,899 |
Level 3 [Member] | Impaired loans-non-covered [Member] | Consumer and other loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 16 | 2 |
Level 3 [Member] | Covered Loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 275 | 504 |
Carrying Value [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 6,270 | 12,934 |
Carrying Value [Member] | Impaired loans-non-covered [Member] | Commercial and industrial [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 2,998 | 529 |
Carrying Value [Member] | Impaired loans-non-covered [Member] | Commercial real estate [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 1,518 | ' |
Carrying Value [Member] | Impaired loans-non-covered [Member] | Dairy & livestock and agribusiness [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 1,463 | 11,899 |
Carrying Value [Member] | Impaired loans-non-covered [Member] | Consumer and other loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | 16 | 2 |
Carrying Value [Member] | Covered Loans [Member] | ' | ' |
Description of assets | ' | ' |
Total assets | $275 | $504 |
Fair_Value_Information_Estimat
Fair Value Information - Estimated Fair Value of Financial Instruments (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Total cash and cash equivalents | $240,056 | $94,693 | $98,431 |
Interest-earning balances due from depository institutions | 18,314 | 70,000 | ' |
FHLB stock | 25,338 | 32,331 | ' |
Investment securities available-for-sale | 3,160,056 | 2,663,642 | ' |
Investment securities held-to-maturity | 1,598 | 1,777 | ' |
Non-covered loans held-for-sale | ' | 3,667 | ' |
Total loans, net of allowance for loan losses | 3,514,303 | 3,310,681 | ' |
Accrued interest receivable | 23,459 | 22,051 | ' |
Deposits: | ' | ' | ' |
Noninterest-bearing | 3,037,103 | 2,562,980 | ' |
Interest-bearing | 2,722,190 | 2,327,651 | ' |
Junior subordinated debentures | 25,774 | 25,774 | ' |
Accrued interest payable | 1,120 | 1,111 | ' |
Swaps | 538,141 | 654,097 | ' |
Carrying Value [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Total cash and cash equivalents | 240,056 | 94,693 | ' |
Interest-earning balances due from depository institutions | 18,314 | 70,000 | ' |
FHLB stock | 25,338 | 32,331 | ' |
Investment securities available-for-sale | 3,160,056 | 2,663,642 | ' |
Investment securities held-to-maturity | 1,598 | 1,777 | ' |
Non-covered loans held-for-sale | ' | 3,667 | ' |
Total loans, net of allowance for loan losses | 3,646,654 | 3,470,996 | ' |
Accrued interest receivable | 23,459 | 22,051 | ' |
Swaps | 9,317 | 10,846 | ' |
Deposits: | ' | ' | ' |
Noninterest-bearing | 3,037,103 | 2,562,980 | ' |
Interest-bearing | 2,722,190 | 2,327,651 | ' |
Borrowings | 728,234 | 911,457 | ' |
Junior subordinated debentures | 25,774 | 25,774 | ' |
Accrued interest payable | 1,120 | 1,111 | ' |
Swaps | 9,317 | 10,846 | ' |
Estimated Fair Value [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Total cash and cash equivalents | 240,056 | 94,693 | ' |
Interest-earning balances due from depository institutions | 18,314 | 70,000 | ' |
FHLB stock | 25,338 | 32,331 | ' |
Investment securities available-for-sale | 3,160,056 | 2,663,642 | ' |
Investment securities held-to-maturity | 2,194 | 2,296 | ' |
Non-covered loans held-for-sale | ' | 8,897 | ' |
Total loans, net of allowance for loan losses | 3,680,071 | 3,527,725 | ' |
Accrued interest receivable | 23,459 | 22,051 | ' |
Swaps | 9,317 | 10,846 | ' |
Deposits: | ' | ' | ' |
Noninterest-bearing | 3,037,103 | 2,562,980 | ' |
Interest-bearing | 2,723,117 | 2,328,488 | ' |
Borrowings | 743,372 | 932,408 | ' |
Junior subordinated debentures | 25,993 | 25,819 | ' |
Accrued interest payable | 1,120 | 1,111 | ' |
Swaps | 9,317 | 10,846 | ' |
Estimated Fair Value [Member] | Level 1 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Total cash and cash equivalents | 240,056 | 94,693 | ' |
Interest-earning balances due from depository institutions | ' | ' | ' |
FHLB stock | ' | ' | ' |
Investment securities available-for-sale | ' | ' | ' |
Investment securities held-to-maturity | ' | ' | ' |
Non-covered loans held-for-sale | ' | ' | ' |
Total loans, net of allowance for loan losses | ' | ' | ' |
Accrued interest receivable | ' | ' | ' |
Swaps | ' | ' | ' |
Deposits: | ' | ' | ' |
Noninterest-bearing | 3,037,103 | 2,562,980 | ' |
Interest-bearing | ' | ' | ' |
Borrowings | ' | ' | ' |
Junior subordinated debentures | ' | ' | ' |
Accrued interest payable | ' | ' | ' |
Swaps | ' | ' | ' |
Estimated Fair Value [Member] | Level 2 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Total cash and cash equivalents | ' | ' | ' |
Interest-earning balances due from depository institutions | 18,314 | 70,000 | ' |
FHLB stock | 25,338 | 32,331 | ' |
Investment securities available-for-sale | 3,160,056 | 2,663,642 | ' |
Investment securities held-to-maturity | ' | ' | ' |
Non-covered loans held-for-sale | ' | ' | ' |
Total loans, net of allowance for loan losses | ' | ' | ' |
Accrued interest receivable | 23,459 | 22,051 | ' |
Swaps | 9,317 | 10,846 | ' |
Deposits: | ' | ' | ' |
Noninterest-bearing | ' | ' | ' |
Interest-bearing | 2,723,117 | 2,328,488 | ' |
Borrowings | 743,372 | 932,408 | ' |
Junior subordinated debentures | 25,993 | 25,819 | ' |
Accrued interest payable | 1,120 | 1,111 | ' |
Swaps | 9,317 | 10,846 | ' |
Estimated Fair Value [Member] | Level 3 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Total cash and cash equivalents | ' | ' | ' |
Interest-earning balances due from depository institutions | ' | ' | ' |
FHLB stock | ' | ' | ' |
Investment securities available-for-sale | ' | ' | ' |
Investment securities held-to-maturity | 2,194 | 2,296 | ' |
Non-covered loans held-for-sale | ' | 8,897 | ' |
Total loans, net of allowance for loan losses | 3,680,071 | 3,527,725 | ' |
Accrued interest receivable | ' | ' | ' |
Swaps | ' | ' | ' |
Deposits: | ' | ' | ' |
Noninterest-bearing | ' | ' | ' |
Interest-bearing | ' | ' | ' |
Borrowings | ' | ' | ' |
Junior subordinated debentures | ' | ' | ' |
Accrued interest payable | ' | ' | ' |
Swaps | ' | ' | ' |
Business_Segments_Additional_I
Business Segments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
FinancialCenters | |
Segment Reporting Information [Line Items] | ' |
Number of principal reporting segments | 2 |
Bank operated Business Financial Centers, number | 40 |
Bank operated Commercial Banking Centers, number | 6 |
Consideration of Business Financial and Commercial Banking Centers | 1 |
Subsidiary bank [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Bank operated Business Financial Centers, number | 40 |
Bank operated Commercial Banking Centers, number | 6 |
Business_Segments_Schedule_of_
Business Segments - Schedule of Segment Reporting Information by Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income, including loan fees | $65,295 | $58,074 | $187,573 | $173,480 | ' |
Credit for funds provided | ' | ' | ' | ' | ' |
Total interest income | 65,295 | 58,074 | 187,573 | 173,480 | ' |
Interest expense | 4,057 | 4,101 | 12,234 | 12,323 | ' |
Charge for funds used | ' | ' | ' | ' | ' |
Total interest expense | 4,057 | 4,101 | 12,234 | 12,323 | ' |
Net interest income | 61,238 | 53,973 | 175,339 | 161,157 | ' |
Provision for loan losses | -1,000 | -3,750 | -16,100 | -9,950 | ' |
Net interest income after provision for loan losses | 62,238 | 57,723 | 191,439 | 171,107 | ' |
Noninterest income | 8,009 | 4,957 | 26,557 | 19,397 | ' |
Noninterest expense | 32,481 | 25,714 | 94,962 | 84,760 | ' |
Segment pre-tax profit (loss) | 37,766 | 36,966 | 123,034 | 105,744 | ' |
Segment assets | 7,422,849 | 6,557,283 | 7,422,849 | 6,557,283 | 6,664,967 |
Operating segments [Member] | Centers [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income, including loan fees | 36,723 | 36,024 | 105,212 | 106,660 | ' |
Credit for funds provided | 8,190 | 6,782 | 22,924 | 19,603 | ' |
Total interest income | 44,913 | 42,806 | 128,136 | 126,263 | ' |
Interest expense | 1,637 | 1,551 | 4,835 | 4,495 | ' |
Charge for funds used | 1,490 | 919 | 3,817 | 3,025 | ' |
Total interest expense | 3,127 | 2,470 | 8,652 | 7,520 | ' |
Net interest income | 41,786 | 40,336 | 119,484 | 118,743 | ' |
Provision for loan losses | ' | ' | ' | ' | ' |
Net interest income after provision for loan losses | 41,786 | 40,336 | 119,484 | 118,743 | ' |
Noninterest income | 5,288 | 5,306 | 15,232 | 15,889 | ' |
Noninterest expense | 12,373 | 11,514 | 35,723 | 34,410 | ' |
Segment pre-tax profit (loss) | 34,701 | 34,128 | 98,993 | 100,222 | ' |
Segment assets | 6,089,389 | 5,305,357 | 6,089,389 | 5,305,357 | ' |
Operating segments [Member] | Treasury [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income, including loan fees | 18,397 | 13,443 | 52,504 | 37,872 | ' |
Credit for funds provided | ' | ' | ' | ' | ' |
Total interest income | 18,397 | 13,443 | 52,504 | 37,872 | ' |
Interest expense | 2,415 | 2,435 | 7,178 | 7,270 | ' |
Charge for funds used | 14,374 | 11,595 | 40,607 | 32,973 | ' |
Total interest expense | 16,789 | 14,030 | 47,785 | 40,243 | ' |
Net interest income | 1,608 | -587 | 4,719 | -2,371 | ' |
Provision for loan losses | ' | ' | ' | ' | ' |
Net interest income after provision for loan losses | 1,608 | -587 | 4,719 | -2,371 | ' |
Noninterest income | ' | ' | ' | 2,094 | ' |
Noninterest expense | 186 | 178 | 564 | 539 | ' |
Segment pre-tax profit (loss) | 1,422 | -765 | 4,155 | -816 | ' |
Segment assets | 3,431,467 | 2,855,964 | 3,431,467 | 2,855,964 | ' |
Operating segments [Member] | Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income, including loan fees | 10,175 | 8,607 | 29,857 | 28,948 | ' |
Credit for funds provided | 12,037 | 10,667 | 34,914 | 31,052 | ' |
Total interest income | 22,212 | 19,274 | 64,771 | 60,000 | ' |
Interest expense | 5 | 115 | 221 | 558 | ' |
Charge for funds used | 4,363 | 4,935 | 13,414 | 14,657 | ' |
Total interest expense | 4,368 | 5,050 | 13,635 | 15,215 | ' |
Net interest income | 17,844 | 14,224 | 51,136 | 44,785 | ' |
Provision for loan losses | -1,000 | -3,750 | -16,100 | -9,950 | ' |
Net interest income after provision for loan losses | 18,844 | 17,974 | 67,236 | 54,735 | ' |
Noninterest income | 2,721 | -349 | 11,325 | 1,414 | ' |
Noninterest expense | 19,922 | 14,022 | 58,675 | 49,811 | ' |
Segment pre-tax profit (loss) | 1,643 | 3,603 | 19,886 | 6,338 | ' |
Segment assets | 789,656 | 732,999 | 789,656 | 732,999 | ' |
Eliminations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Interest income, including loan fees | ' | ' | ' | ' | ' |
Credit for funds provided | -20,227 | -17,449 | -57,838 | -50,655 | ' |
Total interest income | -20,227 | -17,449 | -57,838 | -50,655 | ' |
Interest expense | ' | ' | ' | ' | ' |
Charge for funds used | -20,227 | -17,449 | -57,838 | -50,655 | ' |
Total interest expense | -20,227 | -17,449 | -57,838 | -50,655 | ' |
Net interest income | ' | ' | ' | ' | ' |
Provision for loan losses | ' | ' | ' | ' | ' |
Net interest income after provision for loan losses | ' | ' | ' | ' | ' |
Noninterest income | ' | ' | ' | ' | ' |
Noninterest expense | ' | ' | ' | ' | ' |
Segment pre-tax profit (loss) | ' | ' | ' | ' | ' |
Segment assets | ($2,887,663) | ($2,337,037) | ($2,887,663) | ($2,337,037) | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Derivative assets and liabilities offset in balance sheet | $0 | ' | $0 | ' | ' |
Total notional amount of the Company's swaps | 200.5 | ' | 200.5 | ' | 221.5 |
Gain recognized in the condensed consolidated statements of earnings | $0 | $0 | $0 | $0 | ' |
Interest-rate swap agreements with customers [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Number of interest-rate swap agreements | 77 | ' | 77 | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Value of Derivative Instruments (Detail) (Derivatives not designated as hedging instruments [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other liabilities [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | $9,317 | $10,846 |
Other liabilities [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability Derivatives | 9,317 | 10,846 |
Other assets [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 9,317 | 10,846 |
Other assets [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $9,317 | $10,846 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) - Summary of Components of Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Investment securities available-for-sale: Before-Tax | ' | ' | ' | ' |
Net change in fair value recorded in accumulated OCI, Before-Tax | ($10,291) | $421 | $47,272 | ($65,129) |
Net realized gains reclassified into earnings, Before-Tax | ' | ' | ' | -2,094 |
Net change, Before-Tax | -10,291 | 421 | 47,272 | -67,223 |
Investment securities available-for-sale: Tax Effect | ' | ' | ' | ' |
Net change in fair value recorded in accumulated OCI, Tax Effect | -4,322 | 176 | 19,854 | -27,355 |
Net realized gains reclassified into earnings, Tax Effect | ' | ' | ' | -879 |
Net change, Tax Effect | -4,322 | 176 | 19,854 | -28,234 |
Investment securities available-for-sale: After-Tax | ' | ' | ' | ' |
Net change in fair value recorded in accumulated OCI, After-Tax | -5,969 | 245 | 27,418 | -37,774 |
Net realized gains reclassified into earnings, After-Tax | ' | ' | ' | -1,215 |
Net change, After-Tax | ($5,969) | $245 | $27,418 | ($38,989) |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) - Summary of Change in Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract] | ' | ' | ' | ' |
Beginning balance | ' | ' | ($9,330) | $43,251 |
Net change in fair value recorded in accumulated OCI | -5,969 | 245 | 27,418 | -37,774 |
Net realized gains (losses) reclassified into earnings | ' | ' | ' | -1,215 |
Ending balance | $18,088 | $4,262 | $18,088 | $4,262 |
Balance_Sheet_Offsetting_Sched
Balance Sheet Offsetting - Schedule of Balance Sheet Offsetting (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting Assets Liabilities [Line Items] | ' | ' |
Financial liabilities, Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | $538,712 | $656,159 |
Financial liabilities, Gross Amounts offset in the Condensed Consolidated Balance Sheets | -571 | -2,062 |
Financial liabilities, Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 538,141 | 654,097 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 571 | 2,062 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral Pledged | -666,856 | -665,564 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | -128,144 | -9,405 |
Repurchase agreements [Member] | ' | ' |
Offsetting Assets Liabilities [Line Items] | ' | ' |
Financial liabilities, Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | 528,824 | 643,251 |
Financial liabilities, Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 528,824 | 643,251 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral Pledged | -650,185 | -649,385 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | -121,361 | -6,134 |
Interest rate swaps [Member] | ' | ' |
Offsetting Assets Liabilities [Line Items] | ' | ' |
Financial assets, Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | 9,317 | 10,846 |
Financial assets, Gross Amounts offset in the Condensed Consolidated Balance Sheets | ' | ' |
Financial assets, Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | ' | ' |
Financial assets, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 9,317 | 10,846 |
Financial assets, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral Pledged | ' | ' |
Financial assets, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | 9,317 | 10,846 |
Interest rate swaps [Member] | Derivatives not designated as hedging instruments [Member] | ' | ' |
Offsetting Assets Liabilities [Line Items] | ' | ' |
Financial assets, Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | 9,317 | 10,846 |
Financial assets, Gross Amounts offset in the Condensed Consolidated Balance Sheets | ' | ' |
Financial assets, Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | ' | ' |
Financial assets, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 9,317 | 10,846 |
Financial assets, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral Pledged | ' | ' |
Financial assets, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | 9,317 | 10,846 |
Financial liabilities, Gross Amounts Recognized in the Condensed Consolidated Balance Sheets | 9,888 | 12,908 |
Financial liabilities, Gross Amounts offset in the Condensed Consolidated Balance Sheets | -571 | -2,062 |
Financial liabilities, Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheets | 9,317 | 10,846 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Financial Instruments | 571 | 2,062 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Collateral Pledged | -16,671 | -16,179 |
Financial liabilities, Gross Amounts Not Offset in the Condensed Consolidated Balance Sheets, Net Amount | ($6,783) | ($3,271) |