Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | OLD SECOND BANCORP INC | |
Entity Central Index Key | 357173 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,470,929 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $19,051 | $30,101 |
Interest bearing deposits with financial institutions | 55,111 | 14,096 |
Cash and cash equivalents | 74,162 | 44,197 |
Securities available-for-sale, at fair value | 399,252 | 385,486 |
Securities held-to-maturity, at amortized cost | 257,332 | 259,670 |
Federal Home Loan Bank and Federal Reserve Bank stock | 9,058 | 9,058 |
Loans held-for-sale | 7,038 | 5,072 |
Loans | 1,151,069 | 1,159,332 |
Less: allowance for loan losses | 21,181 | 21,637 |
Net loans | 1,129,888 | 1,137,695 |
Premises and equipment, net | 42,016 | 42,335 |
Other real estate owned | 35,461 | 31,982 |
Mortgage servicing rights, net | 5,254 | 5,462 |
Bank-owned life insurance (BOLI) | 57,161 | 56,807 |
Deferred tax assets, net | 67,743 | 70,141 |
Other assets | 13,145 | 13,882 |
Total assets | 2,097,510 | 2,061,787 |
Deposits: | ||
Noninterest bearing demand | 431,843 | 400,447 |
Interest bearing: | ||
Savings, NOW, and money market | 896,618 | 865,103 |
Time | 416,317 | 419,505 |
Total deposits | 1,744,778 | 1,685,055 |
Securities sold under repurchase agreements | 26,513 | 21,036 |
Other short-term borrowings | 30,000 | 45,000 |
Junior subordinated debentures | 58,378 | 58,378 |
Subordinated debt | 45,000 | 45,000 |
Notes payable and other borrowings | 500 | 500 |
Other liabilities | 10,501 | 12,655 |
Total liabilities | 1,915,670 | 1,867,624 |
Stockholders' Equity | ||
Preferred stock | 31,553 | 47,331 |
Common stock | 34,415 | 34,365 |
Additional paid-in capital | 115,489 | 115,332 |
Retained earnings | 103,372 | 100,697 |
Accumulated other comprehensive loss | -7,023 | -7,713 |
Treasury stock | -95,966 | -95,849 |
Total stockholders' equity | 181,840 | 194,163 |
Total liabilities and stockholders' equity | $2,097,510 | $2,061,787 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets | ||
Preferred stock, Par value (in dollars per share) | $1 | $1 |
Preferred stock, Liquidation value (in dollars per share) | $1,000 | $1,000 |
Preferred stock, Shares authorized | 300,000 | 300,000 |
Preferred stock, Shares issued | 31,553 | 47,331 |
Preferred stock, Shares outstanding | 31,553 | 47,331 |
Common stock, Par value (in dollars per share) | $1 | $1 |
Common Stock, Shares authorized | 60,000,000 | 60,000,000 |
Common stock, Shares issued | 34,414,734 | 34,364,734 |
Common stock, Shares outstanding | 29,470,929 | 29,442,508 |
Treasury stock, Shares | 4,943,805 | 4,922,226 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest and Dividend Income | ||
Loans, including fees | $13,218 | $12,938 |
Loans held-for-sale | 43 | 25 |
Securities: | ||
Taxable | 3,375 | 3,502 |
Tax exempt | 141 | 148 |
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock | 77 | 76 |
Interest bearing deposits with financial institutions | 12 | 15 |
Total interest and dividend income | 16,866 | 16,704 |
Interest Expense | ||
Savings, NOW, and money market deposits | 179 | 199 |
Time deposits | 807 | 1,321 |
Other short-term borrowings | 9 | 2 |
Junior subordinated debentures | 1,072 | 1,387 |
Subordinated debt | 197 | 196 |
Notes payable and other borrowings | 4 | 4 |
Total interest expense | 2,268 | 3,109 |
Net interest and dividend income | 14,598 | 13,595 |
Loan loss reserve release | -1,000 | |
Net interest and dividend income after provision for loan losses | 14,598 | 14,595 |
Noninterest Income | ||
Trust income | 1,486 | 1,459 |
Service charges on deposits | 1,541 | 1,720 |
Secondary mortgage fees | 244 | 112 |
Mortgage servicing loss, net of changes in fair value | -208 | -47 |
Net gain on sales of mortgage loans | 1,623 | 662 |
Securities loss, net | -109 | -69 |
Increase in cash surrender value of bank-owned life insurance | 354 | 358 |
Debit card interchange income | 959 | 830 |
Other income | 2,083 | 1,296 |
Total noninterest income | 7,973 | 6,321 |
Noninterest Expense | ||
Salaries and employee benefits | 9,255 | 9,101 |
Occupancy expense, net | 1,271 | 1,481 |
Furniture and equipment expense | 1,001 | 983 |
FDIC insurance | 273 | 279 |
General bank insurance | 357 | 489 |
Amortization of core deposit | 512 | |
Advertising expense | 205 | 303 |
Debit card interchange expense | 352 | 378 |
Legal fees | 223 | 257 |
Other real estate expense, net | 1,352 | 1,008 |
Other expense | 2,864 | 2,725 |
Total noninterest expense | 17,153 | 17,516 |
Income before income taxes | 5,418 | 3,400 |
Provision for income taxes | 1,919 | 1,198 |
Net income | 3,499 | 2,202 |
Preferred stock dividends and accretion of discount | 824 | 1,572 |
Net income available to common stockholders | $2,675 | $630 |
Basic earnings per share (in dollars per share) | $0.09 | $0.04 |
Diluted earnings per share (in dollars per share) | $0.09 | $0.04 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Comprehensive Income | ||
Net income | $3,499 | $2,202 |
Unrealized holding gains (losses) on available-for-sale securities arising during the period | 921 | -1,089 |
Related tax (expense) benefit | -438 | 448 |
Holding gains (losses) after tax on available-for-sale securities | 483 | -641 |
Less: Reclassification adjustment for the net gains realized during the period | ||
Net realized losses | -109 | -69 |
Income tax benefit on net realized gains | 45 | 28 |
Net realized losses after tax | 64 | 41 |
Other comprehensive income (loss) on available-for-sale securities | 547 | -600 |
Accretion of net unrealized holding gains on held-to-maturity transferred from available-for-sale securities | 243 | 247 |
Related tax expense | -100 | -102 |
Other comprehensive income on held-to-maturity securities | 143 | 145 |
Total other comprehensive income (loss) | 690 | -455 |
Total comprehensive income | $4,189 | $1,747 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities | ||
Net income | $3,499,000 | $2,202,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization of leasehold improvement | 607,000 | 644,000 |
Change in fair value of mortgage servicing rights | 609,000 | 304,000 |
Loan loss reserve release | 1,000,000 | |
Provision for deferred tax expense | 1,815,000 | 1,168,000 |
Originations of loans held-for-sale | -51,641,000 | -19,764,000 |
Proceeds from sales of loans held-for-sale | 50,965,000 | 21,592,000 |
Net gain on sales of mortgage loans | -1,623,000 | -662,000 |
Change in current income taxes payable | 5,000 | 29,000 |
Increase in cash surrender value of bank-owned life insurance | -354,000 | -358,000 |
Change in accrued interest receivable and other assets | 671,000 | -6,238,000 |
Change in accrued interest payable and other liabilities | -1,949,000 | -3,082,000 |
Net premium amortization/discount (accretion) on securities | 28,000 | -474,000 |
Securities losses, net | 109,000 | 69,000 |
Amortization of core deposit | 512,000 | |
Stock based compensation | 177,000 | 66,000 |
Net gain on sale of other real estate owned | -95,000 | -386,000 |
Provision for other real estate owned losses | 609,000 | 436,000 |
Net cash provided by (used in) operating activities | 3,432,000 | -4,942,000 |
Cash flows from investing activities | ||
Proceeds from maturities and calls including pay down of securities available-for-sale | 3,478,000 | 2,361,000 |
Proceeds from sales of securities available-for-sale | 53,191,000 | 31,781,000 |
Purchases of securities available-for-sale | -69,671,000 | -62,391,000 |
Proceeds from maturities and calls including pay down of securities held-to-maturity | 2,710,000 | 1,893,000 |
Purchases of securities held-to-maturity | -9,220,000 | |
Net change in loans | 1,699,000 | -15,474,000 |
Proceeds from sales of other real estate owned | 2,115,000 | 5,955,000 |
Net purchases of premises and equipment | -288,000 | -355,000 |
Net cash used in investing activities | -6,766,000 | -45,450,000 |
Cash flows from financing activities | ||
Net change in deposits | 59,723,000 | 42,153,000 |
Net change in securities sold under repurchase agreements | 5,477,000 | 652,000 |
Net change in other short-term borrowings | -15,000,000 | 15,000,000 |
Redemption of preferred stock | -15,778,000 | |
Dividends paid | -1,006,000 | |
Purchase of treasury stock | -117,000 | -46,000 |
Net cash provided by financing activities | 33,299,000 | 57,759,000 |
Net change in cash and cash equivalents | 29,965,000 | 7,367,000 |
Cash and cash equivalents at beginning of period | 44,197,000 | 47,660,000 |
Cash and cash equivalents at end of period | 74,162,000 | 55,027,000 |
Supplemental cash flow information | ||
Income taxes paid | 100,000 | |
Interest paid for deposits | 1,032,000 | 1,584,000 |
Interest paid for borrowings | 1,289,000 | 202,000 |
Non-cash transfer of loans to other real estate owned | 6,108,000 | 4,688,000 |
Change in dividends accrued and declared but not paid | -182,000 | |
Accretion on preferred stock warrants | $58,000 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common Stock | Preferred Stock | Additional Paid In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2013 | $18,830 | $72,942 | $66,212 | $92,549 | ($7,038) | ($95,803) | $147,692 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 2,202 | 2,202 | |||||
Other comprehensive gain (loss), net of tax | -455 | -455 | |||||
Change in restricted stock | 10 | -10 | |||||
Recapture of restricted stock | 29 | 29 | |||||
Stock based compensation | 66 | 66 | |||||
Purchase of treasury stock | -46 | -46 | |||||
Preferred stock accretion and declared dividends | 58 | -58 | |||||
Balance at Mar. 31, 2014 | 18,840 | 73,000 | 66,297 | 94,693 | -7,493 | -95,849 | 149,488 |
Balance at Dec. 31, 2014 | 34,365 | 47,331 | 115,332 | 100,697 | -7,713 | -95,849 | 194,163 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 3,499 | 3,499 | |||||
Other comprehensive gain (loss), net of tax | 690 | 690 | |||||
Change in restricted stock | 50 | -50 | |||||
Tax effect from vesting of restricted stock | 30 | 30 | |||||
Stock based compensation | 177 | 177 | |||||
Purchase of treasury stock | -117 | -117 | |||||
Redemption of preferred stock | -15,778 | -15,778 | |||||
Preferred stock accretion and declared dividends | -824 | -824 | |||||
Balance at Mar. 31, 2015 | $34,415 | $31,553 | $115,489 | $103,372 | ($7,023) | ($95,966) | $181,840 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies |
The accounting policies followed in the preparation of the interim consolidated financial statements are consistent with those used in the preparation of the annual financial information. The interim consolidated financial statements reflect all normal and recurring adjustments, which are necessary, in the opinion of management, for a fair statement of results for the interim period presented. Results for the period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These interim consolidated financial statements are unaudited and should be read in conjunction with the audited financial statements and notes included in Old Second Bancorp, Inc.’s (the “Company”) annual report on Form 10-K for the year ended December 31, 2014. Unless otherwise indicated, amounts in the tables contained in the notes to the consolidated financial statements are in thousands. Certain items in prior periods have been reclassified to conform to the current presentation. | |
The Company’s consolidated financial statements are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and follow general practices within the banking industry. Application of these principles requires management to make estimates, assumptions, and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the consolidated financial statements. Future changes in information may affect these estimates, assumptions, and judgments, which, in turn, may affect amounts reported in the consolidated financial statements. | |
All significant accounting policies are presented in Note 1 to the consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2014. These policies, along with the disclosures presented in the other financial statement notes and in this discussion, provide information on how significant assets and liabilities are valued in the consolidated financial statements and how those values are determined. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued ASU No. 2014-09 "Revenue from Contracts with Customers (Topic 606)." The core principle 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 and services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. Early application is not permitted. The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures. On April 1, 2015, the FASB voted to propose a delay in the effective date of ASU 2014 – 09. On April 29, 2015, FASB issued a proposed accounting standards update to defer the effective date of an additional year. If the proposal is approved, the standard will be effective for annual reporting periods beginning after December 15, 2017. FASB requested comments on the proposal by May 29, 2015. | |
Securities
Securities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Securities | Note 2 – Securities | ||||||||||||||||||||||||
Investment Portfolio Management | |||||||||||||||||||||||||
Our investment portfolio serves the liquidity and income needs of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio will also serve as income producing assets. The size and composition of the portfolio reflects liquidity needs, loan demand and interest income objectives. | |||||||||||||||||||||||||
Portfolio size and composition will be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. | |||||||||||||||||||||||||
Investments are comprised of debt securities and non-marketable equity investments. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. | |||||||||||||||||||||||||
Securities held-to-maturity are carried at amortized cost and the discount or premium created in the 2013 transfer from available-for-sale securities or at the time of purchase thereafter is accreted or amortized to the maturity or expected payoff date but not an earlier call. In accordance with GAAP, the Company has the positive intent and ability to hold the securities to maturity. | |||||||||||||||||||||||||
Nonmarketable equity investments include Federal Home Loan Bank of Chicago (“FHLBC”) stock and Federal Reserve Bank of Chicago (“Reserve Bank”) stock. FHLBC stock was recorded at $4.3 million at March 31, 2015, and December 31, 2014. Reserve Bank stock was recorded at $4.8 million at March 31, 2015, and December 31, 2014. Our FHLBC stock is necessary to maintain access to FHLBC advances. | |||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of the securities portfolio at March 31, 2015, and December 31, 2014, and the corresponding amounts of gross unrealized gains and losses (in thousands): | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
March 31, 2015: | Cost | Gains | Losses | Value | |||||||||||||||||||||
Securities Available-for-Sale | |||||||||||||||||||||||||
U.S. Treasury | $ | 1,524 | $ | 1 | $ | - | $ | 1,525 | |||||||||||||||||
U.S. government agencies | 1,704 | - | -93 | 1,611 | |||||||||||||||||||||
States and political subdivisions | 33,573 | 327 | -154 | 33,746 | |||||||||||||||||||||
Corporate bonds | 33,385 | 23 | -404 | 33,004 | |||||||||||||||||||||
Collateralized mortgage obligations | 69,205 | 50 | -1,162 | 68,093 | |||||||||||||||||||||
Asset-backed securities | 170,817 | 18 | -2,579 | 168,256 | |||||||||||||||||||||
Collateralized loan obligations | 94,221 | 13 | -1,217 | 93,017 | |||||||||||||||||||||
Total Securities Available-for-Sale | $ | 404,429 | $ | 432 | $ | -5,609 | $ | 399,252 | |||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 37,135 | $ | 2,541 | $ | - | $ | 39,676 | |||||||||||||||||
Collateralized mortgage obligations | 220,197 | 5,482 | -260 | 225,419 | |||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 257,332 | $ | 8,023 | $ | -260 | $ | 265,095 | |||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
December 31, 2014: | Cost | Gains | Losses | Value | |||||||||||||||||||||
Securities Available-for-Sale | |||||||||||||||||||||||||
U.S. Treasury | $ | 1,529 | $ | - | $ | -2 | $ | 1,527 | |||||||||||||||||
U.S. government agencies | 1,711 | - | -87 | 1,624 | |||||||||||||||||||||
States and political subdivisions | 21,682 | 432 | -96 | 22,018 | |||||||||||||||||||||
Corporate bonds | 31,243 | 309 | -567 | 30,985 | |||||||||||||||||||||
Collateralized mortgage obligations | 65,728 | 31 | -2,132 | 63,627 | |||||||||||||||||||||
Asset-backed securities | 175,565 | 199 | -2,268 | 173,496 | |||||||||||||||||||||
Collateralized loan obligations | 94,236 | 176 | -2,203 | 92,209 | |||||||||||||||||||||
Total Securities Available-for-Sale | $ | 391,694 | $ | 1,147 | $ | -7,355 | $ | 385,486 | |||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 37,125 | $ | 2,030 | $ | - | $ | 39,155 | |||||||||||||||||
Collateralized mortgage obligations | 222,545 | 3,005 | -1,439 | 224,111 | |||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 259,670 | $ | 5,035 | $ | -1,439 | $ | 263,266 | |||||||||||||||||
The fair value, amortized cost and weighted average yield of debt securities at March 31, 2015, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date are shown separately. | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Amortized | Average | Fair | |||||||||||||||||||||||
Securities Available-for-Sale | Cost | Yield | Value | ||||||||||||||||||||||
Due in one year or less | $ | 20,410 | 1.56% | $ | 20,454 | ||||||||||||||||||||
Due after one year through five years | 9,048 | 2.64% | 9,199 | ||||||||||||||||||||||
Due after five years through ten years | 35,588 | 2.16% | 35,221 | ||||||||||||||||||||||
Due after ten years | 5,140 | 3.27% | 5,012 | ||||||||||||||||||||||
70,186 | 2.13% | 69,886 | |||||||||||||||||||||||
Collateralized mortgage obligations | 69,205 | 1.95% | 68,093 | ||||||||||||||||||||||
Asset-backed securities | 170,817 | 1.11% | 168,256 | ||||||||||||||||||||||
Collateralized loan obligations | 94,221 | 2.85% | 93,017 | ||||||||||||||||||||||
$ | 404,429 | 1.84% | $ | 399,252 | |||||||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
Mortgage-backed and collateralized mortgage obligations | $ | 257,332 | 3.03% | $ | 265,095 | ||||||||||||||||||||
Securities with unrealized losses at March 31, 2015, and December 31, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (in thousands except for number of securities): | |||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | ||||||||||||||||||||||||
March 31, 2015 | in an unrealized loss position | in an unrealized loss position | Total | ||||||||||||||||||||||
Number of | Unrealized | Fair | Number of | Unrealized | Fair | Number of | Unrealized | Fair | |||||||||||||||||
Securities Available-for-Sale | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | ||||||||||||||||
U.S. government agencies | - | $ | - | $ | - | 1 | $ | 93 | $ | 1,611 | 1 | $ | 93 | $ | 1,611 | ||||||||||
States and political subdivisions | 2 | 154 | 3,249 | - | - | - | 2 | 154 | 3,249 | ||||||||||||||||
Corporate bonds | 4 | 295 | 16,756 | 2 | 109 | 6,893 | 6 | 404 | 23,649 | ||||||||||||||||
Collateralized mortgage obligations | 5 | 434 | 38,849 | 3 | 728 | 19,754 | 8 | 1,162 | 58,603 | ||||||||||||||||
Asset-backed securities | 9 | 1,202 | 97,873 | 4 | 1,377 | 57,949 | 13 | 2,579 | 155,822 | ||||||||||||||||
Collateralized loan obligations | 13 | 1,217 | 88,020 | - | - | - | 13 | 1,217 | 88,020 | ||||||||||||||||
33 | $ | 3,302 | $ | 244,747 | 10 | $ | 2,307 | $ | 86,207 | 43 | $ | 5,609 | $ | 330,954 | |||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
Collateralized mortgage obligations | 1 | $ | 42 | $ | 13,135 | 5 | $ | 218 | $ | 51,149 | 6 | $ | 260 | $ | 64,284 | ||||||||||
1 | $ | 42 | $ | 13,135 | 5 | $ | 218 | $ | 51,149 | 6 | $ | 260 | $ | 64,284 | |||||||||||
Less than 12 months | Greater than 12 months | ||||||||||||||||||||||||
December 31, 2014 | in an unrealized loss position | in an unrealized loss position | Total | ||||||||||||||||||||||
Number of | Unrealized | Fair | Number of | Unrealized | Fair | Number of | Unrealized | Fair | |||||||||||||||||
Securities Available-for-Sale | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | ||||||||||||||||
U.S. Treasury | 1 | $ | 2 | $ | 1,527 | - | $ | - | $ | - | 1 | $ | 2 | $ | 1,527 | ||||||||||
U.S. government agencies | - | - | - | 1 | 87 | 1,624 | 1 | 87 | 1,624 | ||||||||||||||||
States and political subdivisions | 4 | 96 | 4,896 | - | - | - | 4 | 96 | 4,896 | ||||||||||||||||
Corporate bonds | 4 | 486 | 15,246 | 1 | 81 | 1,921 | 5 | 567 | 17,167 | ||||||||||||||||
Collateralized mortgage obligations | 5 | 900 | 38,284 | 3 | 1,232 | 21,604 | 8 | 2,132 | 59,888 | ||||||||||||||||
Asset-backed securities | 9 | 1,077 | 99,286 | 3 | 1,191 | 43,662 | 12 | 2,268 | 142,948 | ||||||||||||||||
Collateralized loan obligations | 12 | 2,203 | 82,387 | - | - | - | 12 | 2,203 | 82,387 | ||||||||||||||||
35 | $ | 4,764 | $ | 241,626 | 8 | $ | 2,591 | $ | 68,811 | 43 | $ | 7,355 | $ | 310,437 | |||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
Collateralized mortgage obligations | 7 | $ | 457 | $ | 49,302 | 4 | $ | 982 | $ | 46,283 | 11 | 1,439 | 95,585 | ||||||||||||
7 | $ | 457 | $ | 49,302 | 4 | $ | 982 | $ | 46,283 | 11 | $ | 1,439 | $ | 95,585 | |||||||||||
Recognition of other-than-temporary impairment was not necessary in the three months ending March 31, 2015, or the year ended December 31, 2014. The changes in fair value related primarily to interest rate fluctuations. Our review of other-than-temporary impairment confirmed no credit quality deterioration. | |||||||||||||||||||||||||
Loans
Loans | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Loans | Note 3 – Loans | ||||||||||||||||||||||||
Major classifications of loans were as follows: | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Commercial | $ | 114,241 | $ | 119,158 | |||||||||||||||||||||
Real estate - commercial | 608,267 | 600,629 | |||||||||||||||||||||||
Real estate - construction | 39,430 | 44,795 | |||||||||||||||||||||||
Real estate - residential | 363,967 | 370,191 | |||||||||||||||||||||||
Consumer | 3,495 | 3,504 | |||||||||||||||||||||||
Overdraft | 368 | 649 | |||||||||||||||||||||||
Lease financing receivables | 8,651 | 8,038 | |||||||||||||||||||||||
Other | 11,945 | 11,630 | |||||||||||||||||||||||
1,150,364 | 1,158,594 | ||||||||||||||||||||||||
Net deferred loan fees | 705 | 738 | |||||||||||||||||||||||
$ | 1,151,069 | $ | 1,159,332 | ||||||||||||||||||||||
It is the policy of the Company to review each prospective credit in order to determine if an adequate level of security or collateral was obtained prior to making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company’s access to collateral, in the event of borrower default, is assured through adherence to lending laws, the Company’s lending standards and credit monitoring procedures. The Bank generally makes loans solely within its market area. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector although the real estate related categories listed above represent 87.9% and 87.6% of the portfolio at March 31, 2015, and December 31, 2014, respectively. | |||||||||||||||||||||||||
Aged analysis of past due loans by class of loans were as follows: | |||||||||||||||||||||||||
. | Recorded | ||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
90 Days or | Greater Past | ||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater Past | Total Past | Due and | |||||||||||||||||||||
March 31, 2015 | Past Due | Past Due | Due | Due | Current | Nonaccrual | Total Loans | Accruing | |||||||||||||||||
Commercial | $ | 684 | $ | - | $ | - | $ | 684 | $ | 120,311 | $ | 1,897 | $ | 122,892 | $ | - | |||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 2,921 | - | - | 2,921 | 127,156 | 5,427 | 135,504 | - | |||||||||||||||||
Owner occupied special purpose | - | - | - | - | 170,733 | 1,409 | 172,142 | - | |||||||||||||||||
Non-owner occupied general purpose | - | - | - | - | 151,033 | 750 | 151,783 | - | |||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 92,702 | 1,198 | 93,900 | - | |||||||||||||||||
Retail properties | - | - | - | - | 41,012 | - | 41,012 | - | |||||||||||||||||
Farm | - | - | - | - | 12,556 | 1,370 | 13,926 | - | |||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | - | 2,660 | - | 2,660 | - | |||||||||||||||||
Land | - | - | - | - | 2,463 | - | 2,463 | - | |||||||||||||||||
Commercial speculative | - | - | - | - | 6,300 | - | 6,300 | - | |||||||||||||||||
All other | - | - | - | - | 27,506 | 501 | 28,007 | - | |||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | 359 | - | - | 359 | 134,329 | 1,160 | 135,848 | - | |||||||||||||||||
Owner occupied | 2,092 | - | - | 2,092 | 107,125 | 6,745 | 115,962 | - | |||||||||||||||||
Revolving and junior liens | 255 | 10 | - | 265 | 109,301 | 2,591 | 112,157 | - | |||||||||||||||||
Consumer | - | - | - | - | 3,495 | - | 3,495 | - | |||||||||||||||||
All other1 | - | - | - | - | 13,018 | - | 13,018 | - | |||||||||||||||||
$ | 6,311 | $ | 10 | $ | - | $ | 6,321 | $ | 1,121,700 | $ | 23,048 | $ | 1,151,069 | $ | - | ||||||||||
Recorded | |||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
90 Days or | Greater Past | ||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater Past | Total Past | Due and | |||||||||||||||||||||
December 31, 2014 | Past Due | Past Due | Due | Due | Current | Nonaccrual | Total Loans | Accruing | |||||||||||||||||
Commercial | $ | 38 | $ | - | $ | - | $ | 38 | $ | 125,658 | $ | 1,500 | $ | 127,196 | $ | - | |||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 699 | - | - | 699 | 126,029 | 5,937 | 132,665 | - | |||||||||||||||||
Owner occupied special purpose | - | - | - | - | 167,874 | 1,441 | 169,315 | - | |||||||||||||||||
Non-owner occupied general purpose | - | - | - | - | 153,328 | 4,907 | 158,235 | - | |||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 87,054 | 1,423 | 88,477 | - | |||||||||||||||||
Retail properties | - | - | - | - | 37,780 | - | 37,780 | - | |||||||||||||||||
Farm | - | - | - | - | 14,157 | - | 14,157 | - | |||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | - | 3,204 | - | 3,204 | - | |||||||||||||||||
Land | - | - | - | - | 1,658 | - | 1,658 | - | |||||||||||||||||
Commercial speculative | - | - | - | - | 13,431 | - | 13,431 | - | |||||||||||||||||
All other | 71 | 29 | - | 100 | 25,841 | 561 | 26,502 | - | |||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | - | - | - | - | 135,273 | 1,942 | 137,215 | - | |||||||||||||||||
Owner occupied | 1,076 | 914 | - | 1,990 | 107,727 | 6,711 | 116,428 | - | |||||||||||||||||
Revolving and junior liens | 94 | 44 | - | 138 | 113,906 | 2,504 | 116,548 | - | |||||||||||||||||
Consumer | - | - | - | - | 3,504 | - | 3,504 | - | |||||||||||||||||
All other1 | - | - | - | - | 13,017 | - | 13,017 | - | |||||||||||||||||
$ | 1,978 | $ | 987 | $ | - | $ | 2,965 | $ | 1,129,441 | $ | 26,926 | $ | 1,159,332 | $ | - | ||||||||||
1. The “All other” class includes overdrafts and net deferred costs. | |||||||||||||||||||||||||
Credit Quality Indicators: | |||||||||||||||||||||||||
The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding balances or commitments greater than $50,000 and excludes homogeneous loans such as home equity lines of credit and residential mortgages. Loans with a classified risk rating are reviewed quarterly regardless of size or loan type. The Company uses the following definitions for classified risk ratings: | |||||||||||||||||||||||||
Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan at some future date. | |||||||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | |||||||||||||||||||||||||
Credits that are not covered by the definitions above are pass credits, which are not considered to be adversely rated. | |||||||||||||||||||||||||
Credit Quality Indicators by class of loans were as follows: | |||||||||||||||||||||||||
March 31, 2015 | Special | ||||||||||||||||||||||||
Pass | Mention | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Commercial | $ | 111,647 | $ | 6,309 | $ | 4,936 | $ | - | $ | 122,892 | |||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 125,429 | 3,123 | 6,952 | - | 135,504 | ||||||||||||||||||||
Owner occupied special purpose | 161,825 | 6,894 | 3,423 | - | 172,142 | ||||||||||||||||||||
Non-owner occupied general purpose | 146,281 | 2,872 | 2,630 | - | 151,783 | ||||||||||||||||||||
Non-owner occupied special purpose | 88,655 | 4,047 | 1,198 | - | 93,900 | ||||||||||||||||||||
Retail Properties | 38,501 | 2,511 | - | - | 41,012 | ||||||||||||||||||||
Farm | 12,027 | 529 | 1,370 | - | 13,926 | ||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | 2,660 | - | - | - | 2,660 | ||||||||||||||||||||
Land | 2,463 | - | - | - | 2,463 | ||||||||||||||||||||
Commercial speculative | 2,828 | - | 3,472 | - | 6,300 | ||||||||||||||||||||
All other | 27,506 | - | 501 | - | 28,007 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | 134,673 | - | 1,175 | - | 135,848 | ||||||||||||||||||||
Owner occupied | 108,433 | - | 7,529 | - | 115,962 | ||||||||||||||||||||
Revolving and junior liens | 108,735 | 188 | 3,234 | - | 112,157 | ||||||||||||||||||||
Consumer | 3,494 | - | 1 | - | 3,495 | ||||||||||||||||||||
All other | 13,018 | - | - | - | 13,018 | ||||||||||||||||||||
Total | $ | 1,088,175 | $ | 26,473 | $ | 36,421 | $ | - | $ | 1,151,069 | |||||||||||||||
December 31, 2014 | Special | ||||||||||||||||||||||||
Pass | Mention | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Commercial | $ | 118,845 | $ | 3,948 | $ | 4,403 | $ | - | $ | 127,196 | |||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 124,936 | 253 | 7,476 | - | 132,665 | ||||||||||||||||||||
Owner occupied special purpose | 154,225 | 11,607 | 3,483 | - | 169,315 | ||||||||||||||||||||
Non-owner occupied general purpose | 148,212 | 3,235 | 6,788 | - | 158,235 | ||||||||||||||||||||
Non-owner occupied special purpose | 78,957 | 8,097 | 1,423 | - | 88,477 | ||||||||||||||||||||
Retail Properties | 36,779 | 1,001 | - | - | 37,780 | ||||||||||||||||||||
Farm | 14,157 | - | - | - | 14,157 | ||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | 3,204 | - | - | - | 3,204 | ||||||||||||||||||||
Land | 1,658 | - | - | - | 1,658 | ||||||||||||||||||||
Commercial speculative | 9,947 | - | 3,484 | - | 13,431 | ||||||||||||||||||||
All other | 25,941 | - | 561 | - | 26,502 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | 134,952 | - | 2,263 | - | 137,215 | ||||||||||||||||||||
Owner occupied | 109,085 | - | 7,343 | - | 116,428 | ||||||||||||||||||||
Revolving and junior liens | 112,647 | 188 | 3,713 | - | 116,548 | ||||||||||||||||||||
Consumer | 3,503 | - | 1 | - | 3,504 | ||||||||||||||||||||
All other | 13,017 | - | - | - | 13,017 | ||||||||||||||||||||
Total | $ | 1,090,065 | $ | 28,329 | $ | 40,938 | $ | - | $ | 1,159,332 | |||||||||||||||
1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans | |||||||||||||||||||||||||
The Company did not have any repossessed assets reported in other assets as of March 31, 2015, and December 31, 2014. The Company had $3.0 million and $3.5 million residential assets in the process of foreclosure as of March 31, 2015, and December 31, 2014, respectively. | |||||||||||||||||||||||||
Impaired loans by class of loan were as follows: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
As of March 31, 2015 | March 31, 2015 | ||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||
Commercial | $ | 1,897 | $ | 2,571 | $ | - | $ | 1,699 | $ | - | |||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | 2,593 | 3,279 | - | 4,859 | 15 | ||||||||||||||||||||
Owner occupied special purpose | 1,154 | 1,240 | - | 1,476 | 6 | ||||||||||||||||||||
Non-owner occupied general purpose | 750 | 1,160 | - | 2,790 | - | ||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | 712 | - | ||||||||||||||||||||
Retail properties | - | - | - | - | - | ||||||||||||||||||||
Farm | 1,370 | 1,370 | - | 685 | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | 1,320 | 1,320 | - | 1,555 | 21 | ||||||||||||||||||||
Land | - | - | - | - | - | ||||||||||||||||||||
Commercial speculative | - | - | - | - | - | ||||||||||||||||||||
All other | 240 | 324 | - | 266 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 1,760 | 2,101 | - | 2,177 | 10 | ||||||||||||||||||||
Owner occupied | 11,602 | 13,113 | - | 11,511 | 43 | ||||||||||||||||||||
Revolving and junior liens | 2,330 | 3,628 | - | 2,284 | 2 | ||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||
Total impaired loans with no recorded allowance | 25,016 | 30,106 | - | 30,014 | 97 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | 4,011 | 4,657 | 1,304 | 2,006 | - | ||||||||||||||||||||
Owner occupied special purpose | 609 | 687 | 113 | 304 | - | ||||||||||||||||||||
Non-owner occupied general purpose | - | - | - | 38 | - | ||||||||||||||||||||
Non-owner occupied special purpose | 1,380 | 1,806 | 163 | 690 | 4 | ||||||||||||||||||||
Retail properties | - | - | - | - | - | ||||||||||||||||||||
Farm | - | - | - | - | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | - | - | ||||||||||||||||||||
Land | - | - | - | - | - | ||||||||||||||||||||
Commercial speculative | - | - | - | - | - | ||||||||||||||||||||
All other | 261 | 300 | 60 | 266 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 131 | 144 | 21 | 133 | - | ||||||||||||||||||||
Owner occupied | 152 | 194 | 30 | 87 | 1 | ||||||||||||||||||||
Revolving and junior liens | 366 | 405 | 93 | 368 | 1 | ||||||||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||||||||
Total impaired loans with a recorded allowance | 6,910 | 8,193 | 1,784 | 3,892 | 6 | ||||||||||||||||||||
Total impaired loans | $ | 31,926 | $ | 38,299 | $ | 1,784 | $ | 33,906 | $ | 103 | |||||||||||||||
Impaired loans by class of loans were as follows: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
As of December 31, 2014 | March 31, 2014 | ||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||
Commercial | $ | 1,500 | $ | 2,114 | $ | - | $ | 26 | $ | - | |||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | 7,125 | 7,870 | - | 2,567 | 1 | ||||||||||||||||||||
Owner occupied special purpose | 1,798 | 1,941 | - | 4,120 | - | ||||||||||||||||||||
Non-owner occupied general purpose | 4,831 | 5,653 | - | 6,886 | 15 | ||||||||||||||||||||
Non-owner occupied special purpose | 1,423 | 1,930 | - | 652 | - | ||||||||||||||||||||
Retail properties | - | - | - | 3,107 | - | ||||||||||||||||||||
Farm | - | - | - | - | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | 1,791 | 1,791 | - | 1,955 | 28 | ||||||||||||||||||||
Land | - | - | - | 209 | - | ||||||||||||||||||||
Commercial speculative | - | - | - | 1,325 | - | ||||||||||||||||||||
All other | 291 | 323 | - | 150 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 2,595 | 3,024 | - | 4,673 | 1 | ||||||||||||||||||||
Owner occupied | 11,419 | 12,816 | - | 9,589 | 47 | ||||||||||||||||||||
Revolving and junior liens | 2,238 | 3,541 | - | 2,030 | 1 | ||||||||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||||||||
Total impaired loans with no recorded allowance | 35,011 | 41,003 | - | 37,289 | 93 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | - | - | - | 926 | - | ||||||||||||||||||||
Owner occupied special purpose | - | - | - | 3,225 | - | ||||||||||||||||||||
Non-owner occupied general purpose | 76 | 76 | 21 | 469 | - | ||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | - | ||||||||||||||||||||
Retail properties | - | - | - | - | - | ||||||||||||||||||||
Farm | - | - | - | - | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | 84 | - | ||||||||||||||||||||
Land | - | - | - | - | - | ||||||||||||||||||||
Commercial speculative | - | - | - | 588 | - | ||||||||||||||||||||
All other | 270 | 306 | 98 | 402 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 135 | 145 | 24 | 514 | - | ||||||||||||||||||||
Owner occupied | 23 | 65 | 38 | 890 | 2 | ||||||||||||||||||||
Revolving and junior liens | 371 | 405 | 97 | 997 | - | ||||||||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||||||||
Total impaired loans with a recorded allowance | 875 | 997 | 278 | 8,095 | 2 | ||||||||||||||||||||
Total impaired loans | $ | 35,886 | $ | 42,000 | $ | 278 | $ | 45,384 | $ | 95 | |||||||||||||||
Troubled debt restructurings (“TDRs”) are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession to the borrower and (2) the borrower is experiencing financial difficulties. Loans are restructured on a case-by-case basis during the loan collection process with modifications generally initiated at the request of the borrower. These modifications may include reduction in interest rates, extension of term, deferrals of principal, and other modifications. The Bank participates in the U.S. Department of the Treasury’s (the “Treasury”) Home Affordable Modification Program (“HAMP”) which gives qualifying homeowners an opportunity to refinance into more affordable monthly payments. | |||||||||||||||||||||||||
The specific allocation of the allowance for loan losses on a TDR is determined by either discounting the modified cash flows at the original effective rate of the loan before modification or is based on the underlying collateral value less costs to sell, if repayment of the loan is collateral-dependent. If the resulting amount is less than the recorded book value, the Bank either establishes a valuation allowance (i.e. specific reserve) as a component of the allowance for loan losses or charges off the impaired balance if it determines that such amount is a confirmed loss. This method is used consistently for all segments of the portfolio. The allowance for loan losses also includes an allowance based on a loss migration analysis for each loan category on loans that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. | |||||||||||||||||||||||||
TDRs that were modified during the period are as follows: | |||||||||||||||||||||||||
TDR Modifications | |||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
contracts | recorded investment | recorded investment | |||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Bifurcate1 | 1 | $ | 300 | $ | 182 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Other2 | 1 | 147 | 156 | ||||||||||||||||||||||
2 | $ | 447 | $ | 338 | |||||||||||||||||||||
TDR Modifications | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
contracts | recorded investment | recorded investment | |||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Other2 | 2 | $ | 1,320 | $ | 1,191 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
HAMP3 | 1 | 102 | 76 | ||||||||||||||||||||||
Deferral4 | 1 | 237 | 127 | ||||||||||||||||||||||
4 | $ | 1,659 | $ | 1,394 | |||||||||||||||||||||
1 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. | |||||||||||||||||||||||||
2 Other: Change of terms from bankruptcy court | |||||||||||||||||||||||||
3 HAMP: Home Affordable Modification Program | |||||||||||||||||||||||||
4 Deferral: Refers to the deferral of principal | |||||||||||||||||||||||||
TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. There was no TDR default activity for three months ending March 31, 2015, and March 31, 2014, that were restructured within the 12 month period prior to default. | |||||||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Allowance for Loan Losses | Note 4 – Allowance for Loan Losses | |||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment for three months ending March 31, 2015, were as follows: | ||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Real Estate | Real Estate | |||||||||||||||||||
Commercial | Commercial 1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||||
Beginning balance | $ | 1,644 | $ | 12,577 | $ | 1,475 | $ | 1,981 | $ | 1,454 | $ | 2,506 | $ | 21,637 | ||||||||
Charge-offs | 32 | 495 | 1 | 618 | 118 | - | 1,264 | |||||||||||||||
Recoveries | 141 | 330 | 5 | 224 | 108 | - | 808 | |||||||||||||||
(Release) provision | -241 | 1,621 | -207 | 330 | -27 | -1,476 | - | |||||||||||||||
Ending balance | $ | 1,512 | $ | 14,033 | $ | 1,272 | $ | 1,917 | $ | 1,417 | $ | 1,030 | $ | 21,181 | ||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 1,580 | $ | 60 | $ | 144 | $ | - | $ | - | $ | 1,784 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 1,512 | $ | 12,453 | $ | 1,212 | $ | 1,773 | $ | 1,417 | $ | 1,030 | $ | 19,397 | ||||||||
Loans: | ||||||||||||||||||||||
Ending balance | $ | 122,892 | $ | 608,267 | $ | 39,430 | $ | 363,967 | $ | 3,495 | $ | 13,018 | $ | 1,151,069 | ||||||||
Ending balance: Individually evaluated for impairment | $ | 1,897 | $ | 11,867 | $ | 1,821 | $ | 16,341 | $ | - | $ | - | $ | 31,926 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 120,995 | $ | 596,400 | $ | 37,609 | $ | 347,626 | $ | 3,495 | $ | 13,018 | $ | 1,119,143 | ||||||||
1 As of March 31, 2015, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $5.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $1.1 million at March 31, 2015. | ||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment for three months ending March 31, 2014, were as follows: | ||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Real Estate | Real Estate | |||||||||||||||||||
Commercial | Commercial 1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||||
Beginning balance | $ | 2,250 | $ | 16,763 | $ | 1,980 | $ | 2,837 | $ | 1,439 | $ | 2,012 | $ | 27,281 | ||||||||
Charge-offs | 4 | 329 | 68 | 849 | 110 | - | 1,360 | |||||||||||||||
Recoveries | 15 | 141 | 37 | 250 | 112 | - | 555 | |||||||||||||||
(Release) provision | 65 | -2,509 | 49 | 30 | 54 | 1,311 | -1,000 | |||||||||||||||
Ending balance | $ | 2,326 | $ | 14,066 | $ | 1,998 | $ | 2,268 | $ | 1,495 | $ | 3,323 | $ | 25,476 | ||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 673 | $ | 194 | $ | 380 | $ | - | $ | - | $ | 1,247 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 2,326 | $ | 13,393 | $ | 1,804 | $ | 1,888 | $ | 1,495 | $ | 3,323 | $ | 24,229 | ||||||||
Loans: | ||||||||||||||||||||||
Ending balance | $ | 107,548 | $ | 579,297 | $ | 32,016 | $ | 375,781 | $ | 2,837 | $ | 13,758 | $ | 1,111,237 | ||||||||
Ending balance: Individually evaluated for impairment | $ | 24 | $ | 22,790 | $ | 4,679 | $ | 16,705 | $ | - | $ | - | $ | 44,198 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 107,524 | $ | 556,507 | $ | 27,337 | $ | 359,076 | $ | 2,837 | $ | 13,758 | $ | 1,067,039 | ||||||||
1 As of March 31, 2014, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $5.6 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $412,000 at March 31, 2014. | ||||||||||||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Real Estate Owned | |||||||||
Other Real Estate Owned | Note 5 – Other Real Estate Owned | ||||||||
Details related to the activity in the other real estate owned (“OREO”) portfolio, net of valuation reserve, for the periods presented are itemized in the following table: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Other real estate owned | 2015 | 2014 | |||||||
Balance at beginning of period | $ | 31,982 | $ | 41,537 | |||||
Property additions | 6,108 | 4,688 | |||||||
Property improvements | - | - | |||||||
Less: | |||||||||
Property disposals, net of gains/losses | 2,020 | 5,569 | |||||||
Period valuation adjustments | 609 | 436 | |||||||
Balance at end of period | $ | 35,461 | $ | 40,220 | |||||
Activity in the valuation allowance was as follows: | |||||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 19,229 | $ | 22,284 | |||||
Provision for unrealized losses | 609 | 436 | |||||||
Reductions taken on sales | -382 | -2,647 | |||||||
Other adjustments | - | -589 | |||||||
Balance at end of period | $ | 19,456 | $ | 19,484 | |||||
Expenses related to OREO, net of lease revenue includes: | |||||||||
2015 | 2014 | ||||||||
Gain on sales, net | $ | -95 | $ | -386 | |||||
Provision for unrealized losses | 609 | 436 | |||||||
Operating expenses | 1,001 | 1,237 | |||||||
Less: | |||||||||
Lease revenue | 163 | 279 | |||||||
$ | 1,352 | $ | 1,008 | ||||||
Deposits
Deposits | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deposits | ||||||||
Deposits | Note 6 – Deposits | |||||||
Major classifications of deposits were as follows: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Noninterest bearing demand | $ | 431,843 | $ | 400,447 | ||||
Savings | 252,578 | 239,845 | ||||||
NOW accounts | 344,737 | 328,641 | ||||||
Money market accounts | 299,303 | 296,617 | ||||||
Certificates of deposit of less than $100,000 | 247,132 | 251,108 | ||||||
Certificates of deposit of $100,000 through $250,000 | 113,160 | 112,515 | ||||||
Certificates of deposit of more than $250,000 | 56,025 | 55,882 | ||||||
$ | 1,744,778 | $ | 1,685,055 | |||||
Borrowings
Borrowings | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Borrowings | ||||||||
Borrowings | Note 7 – Borrowings | |||||||
The following table is a summary of borrowings as of March 31, 2015, and December 31, 2014. Junior subordinated debentures are discussed in detail in Note 8: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Securities sold under repurchase agreements | $ | 26,513 | $ | 21,036 | ||||
FHLBC advances | 30,000 | 45,000 | ||||||
Junior subordinated debentures | 58,378 | 58,378 | ||||||
Subordinated debt | 45,000 | 45,000 | ||||||
Notes payable and other borrowings | 500 | 500 | ||||||
$ | 160,391 | $ | 169,914 | |||||
The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature within 1 to 90 days from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U.S. government agencies and collateralized mortgage-backed securities and have a carrying amount of $26.5 million at March 31, 2015, and $21.0 million at December 31, 2014. The fair value of the pledged collateral was $43.4 million at March 31, 2015, and December 31, 2014. At March 31, 2015, there were no customers with secured balances exceeding 10% of stockholders’ equity. | ||||||||
The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC. Total borrowings are generally limited to the lower of 35% of total assets or 60% of the book value of certain mortgage loans. As of March 31, 2015, the Bank had taken an advance of $30.0 million on the FHLBC stock valued at $4.3 million, collateralized securities with a fair value of $74.1 million and loans with a principal balance of $46.8 million, which carry a combined collateral value of $143.4 million. The Company has excess collateral of $112.1 million available to secure borrowings. At December 31, 2014, the Bank had an advance of $45.0 million on FBLBC stock valued at $4.3 million. | ||||||||
One of the Company’s most significant borrowing relationships continued to be the $45.5 million credit facility with a correspondent bank. That credit began in January 2008 and was originally composed of a $30.5 million senior debt facility, which included $500,000 in term debt, and $45.0 million of subordinated debt. The subordinated debt and the term debt portion of the senior debt facility mature on March 31, 2018. The interest rate on the senior debt facility resets quarterly and at the Company’s option, is based on, either the lender’s prime rate or three-month LIBOR plus 90 basis points. The interest rate on the subordinated debt resets quarterly, and is equal to three-month LIBOR plus 150 basis points. The Company had no principal outstanding balance on the senior line of credit portion of the senior debt facility when it matured and was terminated. The Company had $500,000 in principal outstanding in term debt and $45.0 million in principal outstanding in subordinated debt at the end of both March 31, 2015, and December 31, 2014. The term debt is secured by all of the outstanding capital stock of the Bank. The Company has made all required interest payments on the outstanding principal balance on a timely basis. | ||||||||
The credit facility agreement contains usual and customary provisions regarding acceleration of the senior debt upon the occurrence of an event of default by the Company under the senior debt agreement. The senior debt agreement also contains certain customary representations and warranties, and financial covenants. At March 31, 2015, and December 31, 2014, the Company was in compliance with all covenants contained within the credit agreement. The agreement provides that noncompliance is an event of default and as the result of the Company’s failure to comply with a financial covenant, the lender may (i) terminate all commitments to extend further credit, (ii) increase the interest rate on the revolving line of the term debt by 200 basis points, (iii) declare the senior debt immediately due and payable and (iv) exercise all of its rights and remedies at law, in equity and/or pursuant to any or all collateral documents, including foreclosing on the collateral. The total outstanding principal of the senior debt is the $500,000 in term debt. Because the subordinated debt is treated as Tier 2 capital for regulatory capital purposes, the senior debt agreement does not provide the lender with any rights of acceleration or other remedies with regard to the subordinated debt upon an event of default caused by the Company’s failure to comply with a financial covenant. | ||||||||
Junior_Subordinated_Debentures
Junior Subordinated Debentures | 3 Months Ended |
Mar. 31, 2015 | |
Junior Subordinated Debentures. | |
Junior Subordinated Debentures | Note 8 – Junior Subordinated Debentures |
The Company completed the sale of $27.5 million of cumulative trust preferred securities by its unconsolidated subsidiary, Old Second Capital Trust I in June 2003. An additional $4.1 million of cumulative trust preferred securities were sold in July 2003. The trust preferred securities may remain outstanding for a 30-year term but, subject to regulatory approval, can be called in whole or in part by the Company after June 30, 2008. When not in deferral, distributions on the securities are payable quarterly at an annual rate of 7.80%. The Company issued a new $32.6 million subordinated debenture to Old Second Capital Trust I in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. | |
The Company issued an additional $25.0 million of cumulative trust preferred securities through a private placement completed by an additional, unconsolidated subsidiary, Old Second Capital Trust II, in April 2007. These trust preferred securities also mature in 30 years, but subject to the aforementioned regulatory approval, can be called in whole or in part on a quarterly basis commencing June 15, 2017. The quarterly cash distributions on the securities are fixed at 6.77% through June 15, 2017, and float at 150 basis points over three-month LIBOR thereafter. The Company issued a new $25.8 million subordinated debenture to the Old Second Capital Trust II in return for the aggregate net proceeds of this trust preferred offering. The interest rate and payment frequency on the debenture are equivalent to the cash distribution basis on the trust preferred securities. | |
Both of the debentures issued by the Company are disclosed on the Consolidated Balance Sheet as junior subordinated debentures and the related interest expense for each issuance is included in the Consolidated Statements of Income. As of March 31, 2015, the Company is current on the payments due on these securities. | |
Equity_Compensation_Plans
Equity Compensation Plans | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Equity Compensation Plans | |||||||||||
Equity Compensation Plans | Note 9 – Equity Compensation Plans | ||||||||||
There are stock-based awards outstanding under the Company’s 2008 Equity Incentive Plan (the “2008 Plan”) and the Company’s 2014 Equity Incentive Plan (the “2014 Plan,” and together with the 2008 Plan, the “Plans”). The 2014 Plan was approved at the 2014 annual meeting of stockholders. Following approval of the 2014 Plan, no further awards will be granted under the 2008 Plan or any other Company equity compensation plan. A maximum of 375,000 shares may be issued under the 2014 Plan. The Plan authorizes the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights. Awards may be granted to selected directors and officers or employees under the 2014 Plan at the discretion of the Compensation Committee of the Company’s Board of Directors. As of March 31, 2015, 122,500 shares remained available for issuance under the 2014 Plan. | |||||||||||
Total compensation cost that has been charged for the plans was $177,000 in the first three months of 2015. | |||||||||||
There were no stock options granted in the first quarter of 2015 or 2014. All stock options are granted for a term of ten years. There were no stock options exercised during the first quarter of 2015 or 2014. There is no unrecognized compensation cost related to unvested stock options as all stock options of the Company’s common stock have vested. | |||||||||||
A summary of stock option activity in the Plans for the three months ending March 31, 2015, is as follows: | |||||||||||
Weighted- | |||||||||||
Weighted | Average | ||||||||||
Average | Remaining | ||||||||||
Exercise | Contractual | Aggregate | |||||||||
Shares | Price | Term (years) | Intrinsic Value | ||||||||
Beginning outstanding | 229,000 | $ | 28.28 | ||||||||
Canceled | - | - | |||||||||
Expired | - | - | |||||||||
Ending outstanding | 229,000 | $ | 28.28 | 1.9 | $ | - | |||||
Exercisable at end of period | 229,000 | $ | 28.28 | 1.9 | $ | - | |||||
Generally, restricted stock and restricted stock units granted under the Plans vest three years from the grant date, but the Compensation Committee of the Company’s Board of Directors has discretionary authority to change some terms including the amount of time until the vest date. | |||||||||||
Awards under the 2008 Plan will become fully vested upon a merger or change in control of the Company. Under the 2014 Plan, upon a change in control of the Company, if (i) the 2014 Plan is not an obligation of the successor entity following the change in control, or (ii) the 2014 Plan is an obligation of the successor entity following the change in control and the participant incurs an involuntary termination, then the stock options, stock appreciation rights, stock awards and cash incentive awards under the 2014 Plan will become fully exercisable and vested. Performance-based awards generally will vest based upon the level of achievement of the applicable performance measures through the change in control. | |||||||||||
The Company granted restricted stock under its equity compensation plans beginning in 2005 and it began granting restricted stock units in February 2009. Restricted stock awards under the Plans generally entitle holders to voting and dividend rights upon grant and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Restricted stock units under the Plans are also subject to forfeiture until certain restrictions have lapsed including employment for a specific period, and generally entitle holders to receive dividend equivalents during the restricted period but do not entitle holders to voting rights until the restricted period ends and shares are transferred in connection with the units. | |||||||||||
There were 101,500 restricted awards issued under the Plans during the three months ending March 31, 2015. There were no restricted awards issued during the three months ending March 31, 2014. Compensation expense is recognized over the vesting period of the restricted award based on the market value of the award on the issue date. | |||||||||||
A summary of changes in the Company’s unvested restricted awards for the three months ending March 31, 2015, is as follows: | |||||||||||
March 31, 2015 | |||||||||||
Weighted | |||||||||||
Restricted | Average | ||||||||||
Stock Shares | Grant Date | ||||||||||
and Units | Fair Value | ||||||||||
Nonvested at January 1 | 325,000 | $ | 4.15 | ||||||||
Granted | 101,500 | 5.38 | |||||||||
Vested | -50,000 | 3.90 | |||||||||
Forfeited | -13,500 | 4.25 | |||||||||
Nonvested at March 31 | 363,000 | $ | 4.53 | ||||||||
Total unrecognized compensation cost of restricted awards was $648,000 as of March 31, 2015, which is expected to be recognized over a weighted-average period of 2.28 years. Total unrecognized compensation cost of restricted awards was $303,000 as of March 31, 2014, which was expected to be recognized over a weighted-average period of 1.99 years. | |||||||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share | ||||||||
Earnings (loss) Per Share | Note 10 – Earnings Per Share | |||||||
The earnings per share – both basic and diluted – are included below as of March 31 (in thousands except for share data): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic earnings per share: | ||||||||
Weighted-average common shares outstanding | 29,470,297 | 13,921,023 | ||||||
Weighted-average common shares less stock based awards | 29,470,297 | 13,912,523 | ||||||
Weighted-average common shares stock based awards | - | 169,111 | ||||||
Net income | $ | 3,499 | $ | 2,202 | ||||
Preferred stock dividends and accretion | 824 | 1,572 | ||||||
Net earnings available to common stockholders | 2,675 | 630 | ||||||
Basic earnings per share common undistributed earnings | N/A | 0.04 | ||||||
Basic earnings per share | 0.09 | 0.04 | ||||||
Diluted earnings per share: | ||||||||
Weighted-average common shares outstanding | 29,470,297 | 13,921,023 | ||||||
Dilutive effect of nonvested restricted awards1 | 203,583 | 160,611 | ||||||
Diluted average common shares outstanding | 29,673,880 | 14,081,634 | ||||||
Net earnings available to common stockholders | $ | 2,675 | $ | 630 | ||||
Diluted earnings per share | $ | 0.09 | $ | 0.04 | ||||
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation | 1,044,339 | 1,140,839 | ||||||
1 Includes the common stock equivalents for restricted share rights that are dilutive. | ||||||||
The above earnings per share calculation did not include a warrant for 815,339 shares of common stock that was outstanding as of March 31, 2015, and March 31, 2014, because the warrant was anti-dilutive. Of note, the warrant was sold at auction by the Treasury in June 2013 to a third party investor. | ||||||||
The Company completed the redemption of 25,669 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “Series B Stock”) in the second quarter of 2014. As previously disclosed, the Company completed a public offering of 15,525,000 shares of common stock in April of 2014. Net proceeds of over $64.0 million were used to pay the accrued but unpaid interest on the Company’s trust preferred securities or junior subordinated debentures discussed in Note 8, the accumulated but unpaid dividends on the Series B Stock and to complete this redemption of the Series B Stock. The amount remaining after the completion of these transactions was retained at the Company for use in addressing general corporate matters. The redemption price for such Series B Stock was 94.75% of the liquidation value of the shares and the holders of the redeemed shares agreed to forebear payment of dividends due and waived any rights to such dividend upon redemption. The Company redeemed all shares of Series B Stock held by directors of the Company on the same terms. | ||||||||
On December 30, 2014, the Company provided notice that it was redeeming approximately one-third of the remaining issued and outstanding shares of the Company’s Series B Stock. The effective date for the redemption was January 31, 2015, and the redemption price was the stated liquidation value of $1,000 per share, together with any accrued and unpaid dividends accumulated to, but excluding, the redemption date. As of December 30, 2014, there were 47,331 shares of the Series B Preferred Stock outstanding, and redeeming one-third of the Series B Preferred Stock resulted in the redemption of 15,778 shares of Series B Preferred Stock. The redemption was successfully completed in the first quarter. As of March 31, 2015, 31,553 shares of the Series B Preferred Stock remained outstanding. | ||||||||
Regulatory_Capital_Matters
Regulatory & Capital Matters | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Regulatory & Capital Matters | |||||||||||||||||||
Regulatory & Capital Matters | Note 11 – Regulatory & Capital Matters | ||||||||||||||||||
The Bank is subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighted Bank assets, developed by the Office of the Comptroller of the Currency (the “OCC”) and the other bank regulatory agencies. In connection with the current economic environment, the Bank’s current level of nonperforming assets and the risk-based capital guidelines, the Bank’s board of directors has determined that the Bank should maintain a Tier 1 leverage capital ratio at or above eight percent (8%) and a total risk-based capital ratio at or above twelve percent (12%). At March 31, 2015, the Bank exceeds those thresholds. | |||||||||||||||||||
At March 31, 2015, the Bank’s Tier 1 capital leverage ratio was 12.15%, up 13 basis points from December 31, 2014, and well above the 8.00% objective. The Bank’s total capital ratio was 18.18%, down 55 basis points from December 31, 2014, and also well above the objective of 12.00%. | |||||||||||||||||||
On July 22, 2011, the Company entered into a Written Agreement with the Reserve Bank designed to maintain the financial soundness of the Company. Pursuant to the Written Agreement, the Company took certain actions and operated in compliance with the Written Agreement’s provisions during its term. On January 17, 2014, the Reserve Bank terminated the Written Agreement. | |||||||||||||||||||
Bank holding companies are required to maintain minimum levels of capital in accordance with capital guidelines implemented by the Board of Governors of the Federal Reserve System. The general bank and holding company capital adequacy guidelines are shown in the accompanying table, as are the capital ratios of the Company and the Bank, as of March 31, 2015, and December 31, 2014. | |||||||||||||||||||
The Company completed the redemption of certain of its Series B Fixed Rate Cumulative Preferred Stock (the “Series B Stock”) in the second quarter of 2014 and the first quarter of 2015. The Company completed a public offering of common stock in April of 2014. Net proceeds of over $64.0 million were used to pay the accrued but unpaid interest on trust preferred securities, the accumulated but unpaid dividends on the Series B Stock and to complete this redemption. All ratios for March 31, 2015, reflect these changes in the Company’s capital. | |||||||||||||||||||
At March 31, 2015, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “adequately capitalized” under current regulatory defined capital ratios. For all periods prior to 2015, all capital ratios displayed were calculated without giving effect to the final Basel III capital rules. | |||||||||||||||||||
Capital levels and industry defined regulatory minimum required levels: | |||||||||||||||||||
Minimum Required | Minimum Required | ||||||||||||||||||
for Capital | to be Well | ||||||||||||||||||
Actual | Adequacy Purposes | Capitalized 1 | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
March 31, 2015 | |||||||||||||||||||
Common equity tier 1 capital to risk weighted assets | |||||||||||||||||||
Consolidated | $ | 136,976 | 9.46 | % | $ | 65,158 | 4.50 | % | N/A | N/A | |||||||||
Old Second Bank | 245,076 | 16.91 | 65,218 | 4.50 | $ | 94,204 | 6.50 | % | |||||||||||
Total capital to risk weighted assets | |||||||||||||||||||
Consolidated | 250,416 | 17.30 | 115,799 | 8.00 | N/A | N/A | |||||||||||||
Old Second Bank | 263,398 | 18.18 | 115,907 | 8.00 | 144,883 | 10.00 | |||||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||
Consolidated | 197,987 | 13.68 | 86,836 | 6.00 | N/A | N/A | |||||||||||||
Old Second Bank | 245,076 | 16.91 | 86,958 | 6.00 | 115,944 | 8.00 | |||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||
Consolidated | 197,987 | 9.82 | 80,646 | 4.00 | N/A | N/A | |||||||||||||
Old Second Bank | 245,076 | 12.15 | 80,683 | 4.00 | 100,854 | 5.00 | |||||||||||||
December 31, 2014 | |||||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||||
Consolidated | $ | 240,566 | 17.68 | % | $ | 108,853 | 8.00 | % | N/A | N/A | |||||||||
Old Second Bank | 254,897 | 18.73 | 108,872 | 8.00 | $ | 136,090 | 10.00 | % | |||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||
Consolidated | 196,499 | 14.44 | 54,432 | 4.00 | N/A | N/A | |||||||||||||
Old Second Bank | 237,828 | 17.47 | 54,454 | 4.00 | 81,681 | 6.00 | |||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||
Consolidated | 196,499 | 9.93 | 79,154 | 4.00 | N/A | N/A | |||||||||||||
Old Second Bank | 237,828 | 12.02 | 79,144 | 4.00 | 98,930 | 5.00 | |||||||||||||
1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”. | |||||||||||||||||||
The Company’s credit facility with a correspondent bank includes $45.0 million in subordinated debt. That debt obligation qualifies at 60% of the original amount for Tier 2 regulatory capital at March 31, 2015, and December 31, 2014. In addition, the trust preferred securities continue to qualify as Tier 1 regulatory capital, and the Company treats the maximum amount of this security type allowable under regulatory guidelines as Tier 1 capital. At March 31, 2015 $49.5 million and $7.1 million of the trust preferred proceeds qualified as Tier 1 regulatory capital and Tier 2 regulatory capital, respectively. All $56.6 million of the trust preferred proceeds qualified as Tier 1 regulatory capital as of December 31, 2014. All of the Series B Stock qualified as Tier 1 regulatory capital as of March 31, 2015, and December 31, 2014. | |||||||||||||||||||
Dividend Restrictions | |||||||||||||||||||
In addition to the above requirements, banking regulations and capital guidelines generally limit the amount of dividends that may be paid by a bank without prior regulatory approval. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s profits, combined with the retained profit of the previous two years, subject to the capital requirements described above. Pursuant to the Basel III rules that came into effect January 1, 2015, the Bank must keep a buffer of 0.625% for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter of Common Equity Tier 1 minimum requirement in order to avoid limitations on capital distributions. The Bank has the ability and the authority to pay dividends to the Company to pay debt and to meet preferred dividend requirements. | |||||||||||||||||||
As discussed in Note 8, as of March 31, 2015, the Company had $58.4 million of junior subordinated debentures held by two statutory business trusts that it controls. The Company has the right to defer interest payments on the debentures for a period of up to 20 consecutive quarters, and elected to begin such a deferral in August 2010. However, all deferred interest must be paid before the Company may pay dividends on its common stock. In the second quarter of 2014, the Company terminated the deferral period and paid all accumulated and unpaid interest on the junior subordinated debentures which totaled $19.7 million. The Company is currently paying interest as it comes due. | |||||||||||||||||||
Furthermore, as with the debentures discussed above, the Company is prohibited from paying dividends on its common stock unless it has fully paid all deferred dividends on the Series B Stock. On April 15, 2014, the Company declared a dividend of approximately $15.8 million on its Series B Stock to stockholders of record on May 1, 2014. Series B Stock dividends of $10.3 million were paid on May 15, 2014. The Company is currently paying dividends as they come due and $710,000 was paid on February 15, 2015 on the remaining shares outstanding at that date and is current with the Series B Stock dividends. | |||||||||||||||||||
On April 28, 2014, the Company redeemed 25,669 shares of the Series B Stock from certain holders, which included certain of the Company’s directors, at a redemption price of 94.75% of the per share liquidation value, or $947.50 per share, for a total price of approximately $24.3 million. The Company paid $22.9 million to a large private investor and an additional $1.4 million to Company directors for these purchases. The holders of such shares waived their rights to any dividends on the Series B Stock, and such holders did not receive any part of the declared dividend on the Series B Stock. In May, the Company paid $10.3 million in Series B Stock dividends. In the second quarter, the Company also recognized benefit from $5.4 million in net income available to common stockholders reflecting both reversal of dividends previously accrued as well as dividends accumulated but not accrued by the Company and waived by holders upon redemption. As of December 31, 2014, there were 47,331 shares of the Series B Preferred Stock outstanding, and redeemed approximately one-third of the Series B Preferred Stock in the first quarter of 2015 resulted in the redemption of 15,778 shares of Series B Preferred Stock. The redemption was successfully completed in the quarter. As of March 31, 2015, 31,553 shares of the Series B Preferred Stock remain outstanding. | |||||||||||||||||||
Further detail on the junior subordinated debentures, the Series B Stock and the deferral of interest and dividends thereon is described in Notes 8 and 15. | |||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Measurements | |||||||||||||
Fair Value Measurements | Note 12 – Fair Value Measurements | ||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an 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 fair value hierarchy established by the Company also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are: | |||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. | |||||||||||||
Level 2: Significant observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. | |||||||||||||
Level 3: Significant unobservable inputs that reflect a company’s own view about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||
Transfers between levels are deemed to have occurred at the end of the reporting period. For the quarter ended March 31, 2015, there was a transfer of $24.9 million from Level 3 to Level 2 in asset-backed securities. For the quarter ended March 31 2014, there were no significant transfers between levels. | |||||||||||||
The majority of securities (available-for-sale and held-to-maturity) are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: | |||||||||||||
· | Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing. | ||||||||||||
· | Other government-sponsored agency securities, MBS and some of the actively traded real estate mortgage investment conduits and collateralized mortgage obligations are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. | ||||||||||||
· | State and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. | ||||||||||||
· | From December 31, 2013, to December 31, 2014, the Company utilized pricing data from a nationally recognized valuation firm providing specialized securities valuation services for auction rate asset-backed securities. At March 31, 2015, these securities are priced using market spreads, cash flows, prepayment speeds, and loss analytics. Therefore, the valuations of auction rate asset-backed securities are considered Level 2 valuations. | ||||||||||||
· | During the third quarter of 2014, asset-backed collateralized loan obligations were acquired and priced using data from a pricing matrix support by our bond accounting service provider and are therefore considered Level 2 valuations. | ||||||||||||
· | Residential mortgage loans eligible for sale in the secondary market are carried at fair market value. The fair value of loans held-for-sale is determined using quoted secondary market prices. | ||||||||||||
· | Lending related commitments to fund certain residential mortgage loans, e.g. residential mortgage loans with locked interest rates to be sold in the secondary market and forward commitments for the future delivery of mortgage loans to third party investors as well as forward commitments for future delivery of MBS are considered derivatives. Fair values are estimated based on observable changes in mortgage interest rates including prices for MBS from the date of the commitment and do not typically involve significant judgments by management. | ||||||||||||
· | The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income to derive the resultant value. The Company is able to compare the valuation model inputs, such as the discount rate, prepayment speeds, weighted average delinquency and foreclosure/bankruptcy rates to widely available published industry data for reasonableness. | ||||||||||||
· | Interest rate swap positions, both assets and liabilities, are based on valuation pricing models using an income approach reflecting readily observable market parameters such as interest rate yield curves. | ||||||||||||
· | Both the credit valuation reserve on current interest rate swap positions and on receivables related to unwound customer interest rate swap positions were determined based upon management’s estimate of the amount of credit risk exposure, including by available collateral protection and/or by utilizing an estimate related to a probability of default as indicated in the Bank credit policy. Such adjustments would result in a Level 3 classification. | ||||||||||||
· | The fair value of impaired loans with specific allocations of the allowance for loan losses is essentially based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are made in the appraisal process by the appraisers to reflect differences between the available comparable sales and income data. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | ||||||||||||
· | Nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO are measured at the lower of carrying amount or fair value, less costs to sell. Fair values are based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. | ||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis: | |||||||||||||
The tables below present the balance of assets and liabilities at March 31, 2015, and December 31, 2014, respectively, measured by the Company at fair value on a recurring basis: | |||||||||||||
March 31, 2015 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets: | |||||||||||||
Investment securities available-for-sale | |||||||||||||
U.S. Treasury | $ | 1,525 | $ | - | $ | - | $ | 1,525 | |||||
U.S. government agencies | - | 1,611 | - | 1,611 | |||||||||
States and political subdivisions | - | 33,628 | 118 | 33,746 | |||||||||
Corporate Bonds | - | 33,004 | - | 33,004 | |||||||||
Collateralized mortgage obligations | - | 68,093 | - | 68,093 | |||||||||
Asset-backed securities | - | 168,256 | - | 168,256 | |||||||||
Collateralized loan obligations | - | 93,017 | - | 93,017 | |||||||||
Loans held-for-sale | - | 7,038 | - | 7,038 | |||||||||
Mortgage servicing rights | - | - | 5,254 | 5,254 | |||||||||
Other assets (Interest rate swap agreements) | - | 66 | - | 66 | |||||||||
Other assets (Mortgage banking derivatives) | - | 296 | - | 296 | |||||||||
Total | $ | 1,525 | $ | 405,009 | $ | 5,372 | $ | 411,906 | |||||
Liabilities: | |||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 66 | $ | - | $ | 66 | |||||
Total | $ | - | $ | 66 | $ | - | $ | 66 | |||||
December 31, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets: | |||||||||||||
Investment securities available-for-sale | |||||||||||||
U.S. Treasury | $ | 1,527 | $ | - | $ | - | $ | 1,527 | |||||
U.S. government agencies | - | 1,624 | - | 1,624 | |||||||||
States and political subdivisions | - | 21,900 | 118 | 22,018 | |||||||||
Corporate bonds | - | 30,985 | - | 30,985 | |||||||||
Collateralized mortgage obligations | - | 63,627 | - | 63,627 | |||||||||
Asset-backed securities | - | 120,555 | 52,941 | 173,496 | |||||||||
Collateralized loan obligations | - | 92,209 | - | 92,209 | |||||||||
Loans held-for-sale | - | 5,072 | - | 5,072 | |||||||||
Mortgage servicing rights | - | - | 5,462 | 5,462 | |||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 30 | - | 30 | |||||||||
Other assets (Mortgage banking derivatives) | - | 143 | - | 143 | |||||||||
Total | $ | 1,527 | $ | 336,145 | $ | 58,521 | $ | 396,193 | |||||
Liabilities: | |||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 30 | $ | - | $ | 30 | |||||
Total | $ | - | $ | 30 | $ | - | $ | 30 | |||||
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: | |||||||||||||
Three months ended March 31, 2015 | |||||||||||||
Securities available-for-sale | |||||||||||||
States and | Mortgage | ||||||||||||
Asset- | Political | Servicing | |||||||||||
backed | Subdivisions | Rights | |||||||||||
Beginning balance January 1, 2015 | $ | 52,941 | $ | 118 | $ | 5,462 | |||||||
Transfers out of Level 3 | -24,917 | - | - | ||||||||||
Total gains or losses | |||||||||||||
Included in earnings (or changes in net assets) | -28 | - | -454 | ||||||||||
Included in other comprehensive income | -541 | - | - | ||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||
Issuances | - | - | 401 | ||||||||||
Settlements | - | - | -155 | ||||||||||
Sales | -27,455 | - | - | ||||||||||
Ending balance March 31, 2015 | $ | - | $ | 118 | $ | 5,254 | |||||||
Three months ended March 31, 2014 | |||||||||||||
Securities available-for-sale | |||||||||||||
States and | Mortgage | Interest Rate | |||||||||||
Asset- | Political | Servicing | Swap | ||||||||||
backed | Subdivisions | Rights | Valuation | ||||||||||
Beginning balance January 1, 2014 | $ | 154,137 | $ | 125 | $ | 5,807 | $ | -6 | |||||
Total gains or losses | |||||||||||||
Included in earnings (or changes in net assets) | 226 | - | 111 | 5 | |||||||||
Included in other comprehensive income | -315 | - | - | - | |||||||||
Purchases, issuances, sales, and settlements | |||||||||||||
Purchases | 4,290 | - | - | - | |||||||||
Issuances | - | - | -304 | - | |||||||||
Ending balance March 31, 2014 | $ | 158,338 | $ | 125 | $ | 5,614 | $ | -1 | |||||
The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of March 31, 2015: | |||||||||||||
Weighted | |||||||||||||
Measured at fair value | Unobservable | Average | |||||||||||
on a recurring basis: | Fair Value | Valuation Methodology | Inputs | Range of Input | of Inputs | ||||||||
Mortgage Servicing rights | $ | 5,254 | Discounted Cash Flow | Discount Rate | 9.7-15.5% | 11.9 | % | ||||||
Prepayment Speed | 4.8-35.1% | 10.2 | % | ||||||||||
The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2014: | |||||||||||||
Weighted | |||||||||||||
Measured at fair value | Unobservable | Average | |||||||||||
on a recurring basis: | Fair Value | Valuation Methodology | Inputs | Range of Input | of Inputs | ||||||||
Mortgage Servicing rights | $ | 5,462 | Discounted Cash Flow | Discount Rate | 9.7-108.2% | 10.2 | % | ||||||
Prepayment Speed | 5.0-78.4% | 10.9 | % | ||||||||||
Asset-backed securities | 52,941 | Discounted Cash Flow | Credit Risk Premium | 0.9-0.9% | 0.9 | % | |||||||
with comparable transaction yields | Liquidity Discount | 3.5-3.7% | 3.6 | % | |||||||||
The $118,000 on the state and political subdivisions line at March 31, 2015, under Level 3 represents a security from a small, local municipality. Given the small dollar amount and size of the municipality involved, this is categorized as Level 3 based on the payment stream received by the Company from the municipality. That payment stream is otherwise an unobservable input. | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis: | |||||||||||||
The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of impaired loans and OREO. For assets measured at fair value on a nonrecurring basis at March 31, 2015, and December 31, 2014, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: | |||||||||||||
March 31, 2015 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Impaired loans1 | $ | - | $ | - | $ | 4,776 | $ | 4,776 | |||||
Other real estate owned, net2 | - | - | 35,461 | 35,461 | |||||||||
Total | $ | - | $ | - | $ | 40,237 | $ | 40,237 | |||||
1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the fair value of the impaired loan had a carrying amount of $6.6 million, with a valuation allowance of $1.8 million, resulting in an increase of specific allocations within the allowance for loan losses of $1.5 million for the three months ending March 31, 2015. | |||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $35.5 million, which is made up of the outstanding balance of $56.8 million, net of a valuation allowance of $19.5 million and participations of $1.8 million, at March 31, 2015. | |||||||||||||
December 31, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Impaired loans1 | $ | - | $ | - | $ | 564 | $ | 564 | |||||
Other real estate owned, net2 | - | - | 31,982 | 31,982 | |||||||||
Total | $ | - | $ | - | $ | 32,546 | $ | 32,546 | |||||
1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $842,000, with a valuation allowance of $278,000, resulting in a decrease of specific allocations within the provision for loan losses of $2.1 million for the year ending December 31, 2014. | |||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $32.0 million, which is made up of the outstanding balance of $53.0 million, net of a valuation allowance of $19.2 million and participations of $1.8 million, at December 31, 2014. | |||||||||||||
The Company also has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include OREO and impaired loans. The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and impaired loans are generally valued using the fair value of collateral provided by third party appraisals. These valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales. The numerical range of unobservable inputs for these valuation assumptions are not meaningful. | |||||||||||||
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | Note 13 – Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | |||||||||||||||||||
To meet the financing needs of its customers, the Bank, as a subsidiary of the Company, is a party to various financial instruments with off-balance-sheet risk in the normal course of business. These off-balance-sheet financial instruments include commitments to originate and sell loans as well as financial standby, performance standby and commercial letters of credit. The instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Bank’s exposure to credit loss for loan commitments and letters of credit is represented by the dollar amount of those instruments. Management generally uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet instruments. | ||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||
The Bank also has interest rate derivative positions to assist with risk management that are not designated as hedging instruments. These derivative positions relate to transactions in which the Bank enters an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. Due to financial covenant violations relating to nonperforming loans, the Bank had $1.3 million in investment securities pledged to support interest rate swap activity with two correspondent financial institutions at March 31, 2015. The Bank had $3.0 million in investment securities pledged to support interest rate swap activity with three correspondent financial institutions at December 31, 2014. | ||||||||||||||||||||
In connection with each transaction, the Bank agreed to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Bank agreed to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to convert a variable rate loan to a fixed rate loan and is part of the Company’s interest rate risk management strategy. Because the Bank acts as an intermediary for the client, changes in the fair value of the underlying derivative contracts offset each other and do not generally affect the results of operations. Fair value measurements include an assessment of credit risk related to the client’s ability to perform on their contract position, however, and valuation estimates related to that exposure are discussed in Note 12 above. At March 31, 2015, the notional amount of non-hedging interest rate swaps was $13.1 million with a weighted average maturity of 2.9 years. At December 31, 2014, the notional amount of non-hedging interest rate swaps was $16.3 million with a weighted average maturity of 2.7 years. The Bank offsets derivative assets and liabilities that are subject to a master netting arrangement. | ||||||||||||||||||||
The Bank also grants mortgage loan interest rate lock commitments to borrowers, subject to normal loan underwriting standards. The interest rate risk associated with these loan interest rate lock commitments is managed with contracts for future deliveries of loans as well as selling forward mortgage-backed securities contracts. Loan interest rate lock commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking revenue. Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment. | ||||||||||||||||||||
The following table presents derivatives not designated as hedging instruments as of March 31, 2015, and periodic changes in the values of the interest rate swaps are reported in other noninterest income. Periodic changes in the value of the forward contracts related to mortgage loan origination are reported in the net gain on sales of mortgage loans. | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Notional or | ||||||||||||||||||||
Contractual | Balance Sheet | Balance Sheet | ||||||||||||||||||
Amount | Location | Fair Value | Location | Fair Value | ||||||||||||||||
Interest rate swap contracts | $ | 13,123 | Other Assets | $ | 66 | Other Liabilities | $ | 66 | ||||||||||||
Commitments1 | 222,684 | Other Assets | 296 | N/A | - | |||||||||||||||
Forward contracts2 | 28,654 | N/A | - | Other Liabilities | - | |||||||||||||||
Total | $ | 362 | $ | 66 | ||||||||||||||||
1Includes unused loan commitments and interest rate lock commitments. | ||||||||||||||||||||
2Includes forward MBS contracts and forward loan contracts. | ||||||||||||||||||||
The following table presents derivatives not designated as hedging instruments as of December 31, 2014. | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Notional or | ||||||||||||||||||||
Contractual | Balance Sheet | Balance Sheet | ||||||||||||||||||
Amount | Location | Fair Value | Location | Fair Value | ||||||||||||||||
Interest rate swap contracts net of credit valuation | $ | 16,334 | Other Assets | $ | 30 | Other Liabilities | $ | 30 | ||||||||||||
Commitments1 | 201,946 | Other Assets | 143 | N/A | - | |||||||||||||||
Forward contracts2 | 14,000 | N/A | - | Other Liabilities | - | |||||||||||||||
Total | $ | 173 | $ | 30 | ||||||||||||||||
1Includes unused loan commitments and interest rate lock commitments. | ||||||||||||||||||||
2Includes forward MBS contracts. | ||||||||||||||||||||
The Bank also issues letters of credit, which are conditional commitments that guarantee the performance of a customer to a third party. The credit risk involved and collateral obtained in issuing letters of credit are essentially the same as that involved in extending loan commitments to our customers. In addition to customer related commitments, the Company is responsible for letters of credit commitments that relate to properties held in OREO. The following table represents the Company’s contractual commitments due to letters of credit as of March 31, 2015, and December 31, 2014. | ||||||||||||||||||||
The following table is a summary of letter of credit commitments (in thousands): | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Fixed | Variable | Total | Fixed | Variable | Total | |||||||||||||||
Letters of credit: | ||||||||||||||||||||
Borrower: | ||||||||||||||||||||
Financial standby | $ | 55 | $ | 5,227 | $ | 5,282 | $ | 55 | $ | 4,745 | $ | 4,800 | ||||||||
Commercial standby | - | 47 | 47 | - | 49 | 49 | ||||||||||||||
Performance standby | 416 | 5,386 | 5,802 | 416 | 5,690 | 6,106 | ||||||||||||||
471 | 10,660 | 11,131 | 471 | 10,484 | 10,955 | |||||||||||||||
Non-borrower: | ||||||||||||||||||||
Performance standby | - | 576 | 576 | - | 572 | 572 | ||||||||||||||
- | 576 | 576 | - | 572 | 572 | |||||||||||||||
Total letters of credit | $ | 471 | $ | 11,236 | $ | 11,707 | $ | 471 | $ | 11,056 | $ | 11,527 | ||||||||
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Values of Financial Instruments | ||||||||||||||||
Fair Values of Financial Instruments | Note 14 – Fair Values of Financial Instruments | |||||||||||||||
The estimated fair values approximate carrying amount for all items except those described in the following table. Investment security fair values are based upon market prices or dealer quotes, and if no such information is available, on the rate and term of the security. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable and can only be sold to the FHLBC or another member institution at par. During the years ended December 31, 2014, and 2013, the Company participated in multiple redemptions with the FHLBC and, using the redemption values as the carrying value, FHLBC stock is carried at a Level 2 fair value since December 31, 2012. The Company had redemptions of $1.2 million in the year 2014. Of note, the Company redeemed $788,000 in April of 2015. Fair values of loans were estimated for portfolios of loans with similar financial characteristics, such as type and fixed or variable interest rate terms. Cash flows were discounted using current rates at which similar loans would be made to borrowers with similar ratings and for similar maturities. The fair value of time deposits is estimated using discounted future cash flows at current rates offered for deposits of similar remaining maturities. The fair values of borrowings were estimated based on interest rates available to the Company for debt with similar terms and remaining maturities. The fair value of off balance sheet volume is not considered material. | ||||||||||||||||
The carrying amount and estimated fair values of financial instruments were as follows: | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Carrying | Fair | |||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 19,051 | $ | 19,051 | $ | 19,051 | $ | - | $ | - | ||||||
Interest bearing deposits with financial institutions | 55,111 | 55,111 | 55,111 | - | - | |||||||||||
Securities available-for-sale | 399,252 | 399,252 | 1,525 | 397,609 | 118 | |||||||||||
Securities held-to-maturity | 257,332 | 265,095 | - | 265,095 | - | |||||||||||
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | - | 9,058 | - | |||||||||||
Bank-owned life insurance | 57,161 | 57,161 | - | 57,161 | - | |||||||||||
Loans held-for-sale | 7,038 | 7,038 | - | 7,038 | - | |||||||||||
Loans, net | 1,129,888 | 1,142,727 | - | - | 1,142,727 | |||||||||||
Accrued interest receivable | 4,953 | 4,953 | - | 4,953 | - | |||||||||||
Financial liabilities: | ||||||||||||||||
Noninterest bearing deposits | $ | 431,843 | $ | 431,843 | $ | 431,843 | $ | - | $ | - | ||||||
Interest bearing deposits | 1,312,935 | 1,313,710 | - | 1,313,710 | - | |||||||||||
Securities sold under repurchase agreements | 26,513 | 26,513 | - | 26,513 | - | |||||||||||
Other short-term borrowings | 30,000 | 30,000 | - | 30,000 | - | |||||||||||
Junior subordinated debentures | 58,378 | 54,631 | 32,408 | 22,223 | - | |||||||||||
Subordinated debenture | 45,000 | 39,690 | - | 39,690 | - | |||||||||||
Note payable and other borrowings | 500 | 427 | - | 427 | - | |||||||||||
Borrowing interest payable | 68 | 68 | - | 68 | - | |||||||||||
Deposit interest payable | 421 | 421 | - | 421 | - | |||||||||||
December 31, 2014 | ||||||||||||||||
Carrying | Fair | |||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 30,101 | $ | 30,101 | $ | 30,101 | $ | - | $ | - | ||||||
Interest bearing deposits with financial institutions | 14,096 | 14,096 | 14,096 | - | - | |||||||||||
Securities available-for-sale | 385,486 | 385,486 | 1,527 | 330,900 | 53,059 | |||||||||||
Securities held-to-maturity | 259,670 | 263,266 | - | 263,266 | - | |||||||||||
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | - | 9,058 | - | |||||||||||
Bank-owned life insurance | 56,807 | 56,807 | - | 56,807 | - | |||||||||||
Loans held-for-sale | 5,072 | 5,072 | - | 5,072 | - | |||||||||||
Loans, net | 1,137,695 | 1,151,223 | - | - | 1,151,223 | |||||||||||
Accrued interest receivable | 4,888 | 4,888 | - | 4,888 | - | |||||||||||
Financial liabilities: | ||||||||||||||||
Noninterest bearing deposits | $ | 400,447 | $ | 400,447 | $ | 400,447 | $ | - | $ | - | ||||||
Interest bearing deposits | 1,284,608 | 1,284,887 | - | 1,284,887 | - | |||||||||||
Securities sold under repurchase agreements | 21,036 | 21,036 | - | 21,036 | - | |||||||||||
Other short-term borrowings | 45,000 | 45,000 | - | 45,000 | - | |||||||||||
Junior subordinated debentures | 58,378 | 54,686 | 32,441 | 22,245 | - | |||||||||||
Subordinated debenture | 45,000 | 39,366 | - | 39,366 | - | |||||||||||
Note payable and other borrowings | 500 | 422 | - | 422 | - | |||||||||||
Borrowing interest payable | 75 | 75 | - | 75 | - | |||||||||||
Deposit interest payable | 467 | 467 | - | 467 | - | |||||||||||
Series_B_Preferred_Stock
Series B Preferred Stock | 3 Months Ended |
Mar. 31, 2015 | |
Series B Preferred Stock ("Series B Stock") | |
Series B Preferred Stock (bSeries B Stockb) | Note 15 – Series B Preferred Stock (“Series B Stock”) |
The Series B Stock was issued as part of the Treasury’s Troubled Asset Relief Program and Capital Purchase Program ( the “CPP”). The Series B Stock qualifies as Tier 1 capital and pays cumulative dividends on the liquidation preference amount on a quarterly basis at a rate of 5% per annum for the first five years, and 9% per annum thereafter effective in February 2014. Concurrent with issuing the Series B Stock, the Company issued to the Treasury a ten year warrant to purchase 815,339 shares of the Company’s common stock at an exercise price of $13.43 per share. | |
Subsequent to the Company’s receipt of the $73.0 million in proceeds from the Treasury in the first quarter of 2009, the Company allocated the proceeds between the Series B Stock and the warrant that was issued. The Company recorded the warrant as equity, and the allocation was based on their relative fair values in accordance with accounting guidance. The fair value was determined for both the Series B Stock and the warrant as part of the allocation process in the amounts of $68.2 million and $4.8 million, respectively. | |
On August 31, 2010, the Company announced that it would begin deferring quarterly cash dividends on its outstanding Series B Stock. Further, the Company also elected to defer interest payments on certain of its subordinated debentures. However, under the terms of the Series B Stock, if the Company failed to pay dividends for an aggregate of six quarters on the Series B Stock, whether or not consecutive, the holders would have the right to appoint representatives to the Company’s board of directors. As the Company elected to defer dividends for more than six quarters, a new director was appointed by the Treasury to join the board during the fourth quarter of 2012. The terms of the Series B Stock also prevent the Company from paying cash dividends or generally repurchasing its common stock while Series B Stock dividends are in arrears. | |
The Treasury sold all of the Series B Stock held to third parties, including certain of our directors, in auctions that were completed in the first quarter of 2013. The Treasury also sold the warrant to a third party at a subsequent auction. Upon completion by Treasury of the auction, the Company’s board affirmed the director appointed by Treasury to ongoing board membership, and the Series B director was elected by the holders of the Series B Stock at the Company’s 2013 annual meeting. | |
As a result of the completed 2013 auctions, the Company’s Board elected to stop accruing the dividend on the Series B Stock in the first quarter of 2013. Previously, the Company had accrued the dividend on the Series B Stock quarterly throughout the deferral period. Given the discount reflected in the results of the auction, the board believed that the Company would likely be able to redeem the Series B Stock at a price less than the face amount of the Series B Stock plus accrued and unpaid dividends. While the Company did not fully accrue the dividend on the Series B Stock in the first quarter of 2013 and did not accrue for it in subsequent quarters, the Company continued to evaluate whether accruing dividends on the Series B Stock was appropriate. In the second quarter of 2014, the Company completed redemption of 25,669 shares of its Series B Stock at a price equal to 94.75% of liquidation value provided that the holders of shares entered into agreements to forebear payment of dividends due and to waive any rights to such dividends upon redemption. Following the redemption, the Company resumed accrual in the second quarter of 2014. The Company currently intends to declare and pay future dividends on these shares. Payments of $24.3 million resulted in redemption of 25,669 shares of Series B Stock in the second quarter of 2014. | |
On December 30, 2014, the Company provided notice that it was redeeming approximately one-third of the issued and outstanding shares of the Company’s Series B Stock. The effective date for the redemption was January 31, 2015, and the redemption price was the stated liquidation value of $1,000 per share, together with any accrued and unpaid dividends accumulated to, but excluding, the redemption date. As of December 30, 2014, there were 47,331 shares of the Series B Stock outstanding, and redeeming one-third of the Series B Preferred Stock resulted in the redemption of 15,778 shares of Series B Stock. The redemption was successfully completed in the first quarter. As of March 31, 2015, 31,553 shares of the Series B Stock remain outstanding. | |
At March 31, 2015, the Company carried $31.6 million of Series B Stock in total stockholders’ equity. The Company carried $47.3 million and $72.9 million of Series B Stock in total stockholders’ equity at December 31, 2014, and December 31, 2013, respectively. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the FASB issued ASU No. 2014-09 "Revenue from Contracts with Customers (Topic 606)." The core principle 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 and services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. Early application is not permitted. The Company is assessing the impact of ASU 2014-09 on its accounting and disclosures. On April 1, 2015, the FASB voted to propose a delay in the effective date of ASU 2014 – 09. On April 29, 2015, FASB issued a proposed accounting standards update to defer the effective date of an additional year. If the proposal is approved, the standard will be effective for annual reporting periods beginning after December 15, 2017. FASB requested comments on the proposal by May 29, 2015. | |
Securities_Tables
Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Schedule of amortized cost and fair value of the securities portfolio and corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
March 31, 2015: | Cost | Gains | Losses | Value | |||||||||||||||||||||
Securities Available-for-Sale | |||||||||||||||||||||||||
U.S. Treasury | $ | 1,524 | $ | 1 | $ | - | $ | 1,525 | |||||||||||||||||
U.S. government agencies | 1,704 | - | -93 | 1,611 | |||||||||||||||||||||
States and political subdivisions | 33,573 | 327 | -154 | 33,746 | |||||||||||||||||||||
Corporate bonds | 33,385 | 23 | -404 | 33,004 | |||||||||||||||||||||
Collateralized mortgage obligations | 69,205 | 50 | -1,162 | 68,093 | |||||||||||||||||||||
Asset-backed securities | 170,817 | 18 | -2,579 | 168,256 | |||||||||||||||||||||
Collateralized loan obligations | 94,221 | 13 | -1,217 | 93,017 | |||||||||||||||||||||
Total Securities Available-for-Sale | $ | 404,429 | $ | 432 | $ | -5,609 | $ | 399,252 | |||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 37,135 | $ | 2,541 | $ | - | $ | 39,676 | |||||||||||||||||
Collateralized mortgage obligations | 220,197 | 5,482 | -260 | 225,419 | |||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 257,332 | $ | 8,023 | $ | -260 | $ | 265,095 | |||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
December 31, 2014: | Cost | Gains | Losses | Value | |||||||||||||||||||||
Securities Available-for-Sale | |||||||||||||||||||||||||
U.S. Treasury | $ | 1,529 | $ | - | $ | -2 | $ | 1,527 | |||||||||||||||||
U.S. government agencies | 1,711 | - | -87 | 1,624 | |||||||||||||||||||||
States and political subdivisions | 21,682 | 432 | -96 | 22,018 | |||||||||||||||||||||
Corporate bonds | 31,243 | 309 | -567 | 30,985 | |||||||||||||||||||||
Collateralized mortgage obligations | 65,728 | 31 | -2,132 | 63,627 | |||||||||||||||||||||
Asset-backed securities | 175,565 | 199 | -2,268 | 173,496 | |||||||||||||||||||||
Collateralized loan obligations | 94,236 | 176 | -2,203 | 92,209 | |||||||||||||||||||||
Total Securities Available-for-Sale | $ | 391,694 | $ | 1,147 | $ | -7,355 | $ | 385,486 | |||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 37,125 | $ | 2,030 | $ | - | $ | 39,155 | |||||||||||||||||
Collateralized mortgage obligations | 222,545 | 3,005 | -1,439 | 224,111 | |||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 259,670 | $ | 5,035 | $ | -1,439 | $ | 263,266 | |||||||||||||||||
Schedule of fair value, amortized cost and weighted average yield of debt securities by contractual maturity along with securities not due at a single maturity date, primarily mortgage-backed securities (MBS), asset-backed securities, and collateralized loan obligations | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Amortized | Average | Fair | |||||||||||||||||||||||
Securities Available-for-Sale | Cost | Yield | Value | ||||||||||||||||||||||
Due in one year or less | $ | 20,410 | 1.56% | $ | 20,454 | ||||||||||||||||||||
Due after one year through five years | 9,048 | 2.64% | 9,199 | ||||||||||||||||||||||
Due after five years through ten years | 35,588 | 2.16% | 35,221 | ||||||||||||||||||||||
Due after ten years | 5,140 | 3.27% | 5,012 | ||||||||||||||||||||||
70,186 | 2.13% | 69,886 | |||||||||||||||||||||||
Collateralized mortgage obligations | 69,205 | 1.95% | 68,093 | ||||||||||||||||||||||
Asset-backed securities | 170,817 | 1.11% | 168,256 | ||||||||||||||||||||||
Collateralized loan obligations | 94,221 | 2.85% | 93,017 | ||||||||||||||||||||||
$ | 404,429 | 1.84% | $ | 399,252 | |||||||||||||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
Mortgage-backed and collateralized mortgage obligations | $ | 257,332 | 3.03% | $ | 265,095 | ||||||||||||||||||||
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | |||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | ||||||||||||||||||||||||
March 31, 2015 | in an unrealized loss position | in an unrealized loss position | Total | ||||||||||||||||||||||
Number of | Unrealized | Fair | Number of | Unrealized | Fair | Number of | Unrealized | Fair | |||||||||||||||||
Securities Available-for-Sale | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | ||||||||||||||||
U.S. government agencies | - | $ | - | $ | - | 1 | $ | 93 | $ | 1,611 | 1 | $ | 93 | $ | 1,611 | ||||||||||
States and political subdivisions | 2 | 154 | 3,249 | - | - | - | 2 | 154 | 3,249 | ||||||||||||||||
Corporate bonds | 4 | 295 | 16,756 | 2 | 109 | 6,893 | 6 | 404 | 23,649 | ||||||||||||||||
Collateralized mortgage obligations | 5 | 434 | 38,849 | 3 | 728 | 19,754 | 8 | 1,162 | 58,603 | ||||||||||||||||
Asset-backed securities | 9 | 1,202 | 97,873 | 4 | 1,377 | 57,949 | 13 | 2,579 | 155,822 | ||||||||||||||||
Collateralized loan obligations | 13 | 1,217 | 88,020 | - | - | - | 13 | 1,217 | 88,020 | ||||||||||||||||
33 | $ | 3,302 | $ | 244,747 | 10 | $ | 2,307 | $ | 86,207 | 43 | $ | 5,609 | $ | 330,954 | |||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
Collateralized mortgage obligations | 1 | $ | 42 | $ | 13,135 | 5 | $ | 218 | $ | 51,149 | 6 | $ | 260 | $ | 64,284 | ||||||||||
1 | $ | 42 | $ | 13,135 | 5 | $ | 218 | $ | 51,149 | 6 | $ | 260 | $ | 64,284 | |||||||||||
Less than 12 months | Greater than 12 months | ||||||||||||||||||||||||
December 31, 2014 | in an unrealized loss position | in an unrealized loss position | Total | ||||||||||||||||||||||
Number of | Unrealized | Fair | Number of | Unrealized | Fair | Number of | Unrealized | Fair | |||||||||||||||||
Securities Available-for-Sale | Securities | Losses | Value | Securities | Losses | Value | Securities | Losses | Value | ||||||||||||||||
U.S. Treasury | 1 | $ | 2 | $ | 1,527 | - | $ | - | $ | - | 1 | $ | 2 | $ | 1,527 | ||||||||||
U.S. government agencies | - | - | - | 1 | 87 | 1,624 | 1 | 87 | 1,624 | ||||||||||||||||
States and political subdivisions | 4 | 96 | 4,896 | - | - | - | 4 | 96 | 4,896 | ||||||||||||||||
Corporate bonds | 4 | 486 | 15,246 | 1 | 81 | 1,921 | 5 | 567 | 17,167 | ||||||||||||||||
Collateralized mortgage obligations | 5 | 900 | 38,284 | 3 | 1,232 | 21,604 | 8 | 2,132 | 59,888 | ||||||||||||||||
Asset-backed securities | 9 | 1,077 | 99,286 | 3 | 1,191 | 43,662 | 12 | 2,268 | 142,948 | ||||||||||||||||
Collateralized loan obligations | 12 | 2,203 | 82,387 | - | - | - | 12 | 2,203 | 82,387 | ||||||||||||||||
35 | $ | 4,764 | $ | 241,626 | 8 | $ | 2,591 | $ | 68,811 | 43 | $ | 7,355 | $ | 310,437 | |||||||||||
Securities Held-to-Maturity | |||||||||||||||||||||||||
Collateralized mortgage obligations | 7 | $ | 457 | $ | 49,302 | 4 | $ | 982 | $ | 46,283 | 11 | 1,439 | 95,585 | ||||||||||||
7 | $ | 457 | $ | 49,302 | 4 | $ | 982 | $ | 46,283 | 11 | $ | 1,439 | $ | 95,585 | |||||||||||
Loans_Tables
Loans (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
Schedule of major classifications of loans | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Commercial | $ | 114,241 | $ | 119,158 | |||||||||||||||||||||
Real estate - commercial | 608,267 | 600,629 | |||||||||||||||||||||||
Real estate - construction | 39,430 | 44,795 | |||||||||||||||||||||||
Real estate - residential | 363,967 | 370,191 | |||||||||||||||||||||||
Consumer | 3,495 | 3,504 | |||||||||||||||||||||||
Overdraft | 368 | 649 | |||||||||||||||||||||||
Lease financing receivables | 8,651 | 8,038 | |||||||||||||||||||||||
Other | 11,945 | 11,630 | |||||||||||||||||||||||
1,150,364 | 1,158,594 | ||||||||||||||||||||||||
Net deferred loan fees | 705 | 738 | |||||||||||||||||||||||
$ | 1,151,069 | $ | 1,159,332 | ||||||||||||||||||||||
Schedule of aged analysis of past due loans by class of loans | |||||||||||||||||||||||||
. | Recorded | ||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
90 Days or | Greater Past | ||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater Past | Total Past | Due and | |||||||||||||||||||||
March 31, 2015 | Past Due | Past Due | Due | Due | Current | Nonaccrual | Total Loans | Accruing | |||||||||||||||||
Commercial | $ | 684 | $ | - | $ | - | $ | 684 | $ | 120,311 | $ | 1,897 | $ | 122,892 | $ | - | |||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 2,921 | - | - | 2,921 | 127,156 | 5,427 | 135,504 | - | |||||||||||||||||
Owner occupied special purpose | - | - | - | - | 170,733 | 1,409 | 172,142 | - | |||||||||||||||||
Non-owner occupied general purpose | - | - | - | - | 151,033 | 750 | 151,783 | - | |||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 92,702 | 1,198 | 93,900 | - | |||||||||||||||||
Retail properties | - | - | - | - | 41,012 | - | 41,012 | - | |||||||||||||||||
Farm | - | - | - | - | 12,556 | 1,370 | 13,926 | - | |||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | - | 2,660 | - | 2,660 | - | |||||||||||||||||
Land | - | - | - | - | 2,463 | - | 2,463 | - | |||||||||||||||||
Commercial speculative | - | - | - | - | 6,300 | - | 6,300 | - | |||||||||||||||||
All other | - | - | - | - | 27,506 | 501 | 28,007 | - | |||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | 359 | - | - | 359 | 134,329 | 1,160 | 135,848 | - | |||||||||||||||||
Owner occupied | 2,092 | - | - | 2,092 | 107,125 | 6,745 | 115,962 | - | |||||||||||||||||
Revolving and junior liens | 255 | 10 | - | 265 | 109,301 | 2,591 | 112,157 | - | |||||||||||||||||
Consumer | - | - | - | - | 3,495 | - | 3,495 | - | |||||||||||||||||
All other1 | - | - | - | - | 13,018 | - | 13,018 | - | |||||||||||||||||
$ | 6,311 | $ | 10 | $ | - | $ | 6,321 | $ | 1,121,700 | $ | 23,048 | $ | 1,151,069 | $ | - | ||||||||||
Recorded | |||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
90 Days or | Greater Past | ||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater Past | Total Past | Due and | |||||||||||||||||||||
December 31, 2014 | Past Due | Past Due | Due | Due | Current | Nonaccrual | Total Loans | Accruing | |||||||||||||||||
Commercial | $ | 38 | $ | - | $ | - | $ | 38 | $ | 125,658 | $ | 1,500 | $ | 127,196 | $ | - | |||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 699 | - | - | 699 | 126,029 | 5,937 | 132,665 | - | |||||||||||||||||
Owner occupied special purpose | - | - | - | - | 167,874 | 1,441 | 169,315 | - | |||||||||||||||||
Non-owner occupied general purpose | - | - | - | - | 153,328 | 4,907 | 158,235 | - | |||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 87,054 | 1,423 | 88,477 | - | |||||||||||||||||
Retail properties | - | - | - | - | 37,780 | - | 37,780 | - | |||||||||||||||||
Farm | - | - | - | - | 14,157 | - | 14,157 | - | |||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | - | 3,204 | - | 3,204 | - | |||||||||||||||||
Land | - | - | - | - | 1,658 | - | 1,658 | - | |||||||||||||||||
Commercial speculative | - | - | - | - | 13,431 | - | 13,431 | - | |||||||||||||||||
All other | 71 | 29 | - | 100 | 25,841 | 561 | 26,502 | - | |||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | - | - | - | - | 135,273 | 1,942 | 137,215 | - | |||||||||||||||||
Owner occupied | 1,076 | 914 | - | 1,990 | 107,727 | 6,711 | 116,428 | - | |||||||||||||||||
Revolving and junior liens | 94 | 44 | - | 138 | 113,906 | 2,504 | 116,548 | - | |||||||||||||||||
Consumer | - | - | - | - | 3,504 | - | 3,504 | - | |||||||||||||||||
All other1 | - | - | - | - | 13,017 | - | 13,017 | - | |||||||||||||||||
$ | 1,978 | $ | 987 | $ | - | $ | 2,965 | $ | 1,129,441 | $ | 26,926 | $ | 1,159,332 | $ | - | ||||||||||
1. The “All other” class includes overdrafts and net deferred costs. | |||||||||||||||||||||||||
Schedule of credit quality indicators by class of loans | |||||||||||||||||||||||||
March 31, 2015 | Special | ||||||||||||||||||||||||
Pass | Mention | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Commercial | $ | 111,647 | $ | 6,309 | $ | 4,936 | $ | - | $ | 122,892 | |||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 125,429 | 3,123 | 6,952 | - | 135,504 | ||||||||||||||||||||
Owner occupied special purpose | 161,825 | 6,894 | 3,423 | - | 172,142 | ||||||||||||||||||||
Non-owner occupied general purpose | 146,281 | 2,872 | 2,630 | - | 151,783 | ||||||||||||||||||||
Non-owner occupied special purpose | 88,655 | 4,047 | 1,198 | - | 93,900 | ||||||||||||||||||||
Retail Properties | 38,501 | 2,511 | - | - | 41,012 | ||||||||||||||||||||
Farm | 12,027 | 529 | 1,370 | - | 13,926 | ||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | 2,660 | - | - | - | 2,660 | ||||||||||||||||||||
Land | 2,463 | - | - | - | 2,463 | ||||||||||||||||||||
Commercial speculative | 2,828 | - | 3,472 | - | 6,300 | ||||||||||||||||||||
All other | 27,506 | - | 501 | - | 28,007 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | 134,673 | - | 1,175 | - | 135,848 | ||||||||||||||||||||
Owner occupied | 108,433 | - | 7,529 | - | 115,962 | ||||||||||||||||||||
Revolving and junior liens | 108,735 | 188 | 3,234 | - | 112,157 | ||||||||||||||||||||
Consumer | 3,494 | - | 1 | - | 3,495 | ||||||||||||||||||||
All other | 13,018 | - | - | - | 13,018 | ||||||||||||||||||||
Total | $ | 1,088,175 | $ | 26,473 | $ | 36,421 | $ | - | $ | 1,151,069 | |||||||||||||||
December 31, 2014 | Special | ||||||||||||||||||||||||
Pass | Mention | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Commercial | $ | 118,845 | $ | 3,948 | $ | 4,403 | $ | - | $ | 127,196 | |||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Owner occupied general purpose | 124,936 | 253 | 7,476 | - | 132,665 | ||||||||||||||||||||
Owner occupied special purpose | 154,225 | 11,607 | 3,483 | - | 169,315 | ||||||||||||||||||||
Non-owner occupied general purpose | 148,212 | 3,235 | 6,788 | - | 158,235 | ||||||||||||||||||||
Non-owner occupied special purpose | 78,957 | 8,097 | 1,423 | - | 88,477 | ||||||||||||||||||||
Retail Properties | 36,779 | 1,001 | - | - | 37,780 | ||||||||||||||||||||
Farm | 14,157 | - | - | - | 14,157 | ||||||||||||||||||||
Real estate - construction | |||||||||||||||||||||||||
Homebuilder | 3,204 | - | - | - | 3,204 | ||||||||||||||||||||
Land | 1,658 | - | - | - | 1,658 | ||||||||||||||||||||
Commercial speculative | 9,947 | - | 3,484 | - | 13,431 | ||||||||||||||||||||
All other | 25,941 | - | 561 | - | 26,502 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Investor | 134,952 | - | 2,263 | - | 137,215 | ||||||||||||||||||||
Owner occupied | 109,085 | - | 7,343 | - | 116,428 | ||||||||||||||||||||
Revolving and junior liens | 112,647 | 188 | 3,713 | - | 116,548 | ||||||||||||||||||||
Consumer | 3,503 | - | 1 | - | 3,504 | ||||||||||||||||||||
All other | 13,017 | - | - | - | 13,017 | ||||||||||||||||||||
Total | $ | 1,090,065 | $ | 28,329 | $ | 40,938 | $ | - | $ | 1,159,332 | |||||||||||||||
1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans | |||||||||||||||||||||||||
Schedule of impaired loans by class of loan | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
As of March 31, 2015 | March 31, 2015 | ||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||
Commercial | $ | 1,897 | $ | 2,571 | $ | - | $ | 1,699 | $ | - | |||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | 2,593 | 3,279 | - | 4,859 | 15 | ||||||||||||||||||||
Owner occupied special purpose | 1,154 | 1,240 | - | 1,476 | 6 | ||||||||||||||||||||
Non-owner occupied general purpose | 750 | 1,160 | - | 2,790 | - | ||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | 712 | - | ||||||||||||||||||||
Retail properties | - | - | - | - | - | ||||||||||||||||||||
Farm | 1,370 | 1,370 | - | 685 | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | 1,320 | 1,320 | - | 1,555 | 21 | ||||||||||||||||||||
Land | - | - | - | - | - | ||||||||||||||||||||
Commercial speculative | - | - | - | - | - | ||||||||||||||||||||
All other | 240 | 324 | - | 266 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 1,760 | 2,101 | - | 2,177 | 10 | ||||||||||||||||||||
Owner occupied | 11,602 | 13,113 | - | 11,511 | 43 | ||||||||||||||||||||
Revolving and junior liens | 2,330 | 3,628 | - | 2,284 | 2 | ||||||||||||||||||||
Consumer | - | - | - | - | |||||||||||||||||||||
Total impaired loans with no recorded allowance | 25,016 | 30,106 | - | 30,014 | 97 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | 4,011 | 4,657 | 1,304 | 2,006 | - | ||||||||||||||||||||
Owner occupied special purpose | 609 | 687 | 113 | 304 | - | ||||||||||||||||||||
Non-owner occupied general purpose | - | - | - | 38 | - | ||||||||||||||||||||
Non-owner occupied special purpose | 1,380 | 1,806 | 163 | 690 | 4 | ||||||||||||||||||||
Retail properties | - | - | - | - | - | ||||||||||||||||||||
Farm | - | - | - | - | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | - | - | ||||||||||||||||||||
Land | - | - | - | - | - | ||||||||||||||||||||
Commercial speculative | - | - | - | - | - | ||||||||||||||||||||
All other | 261 | 300 | 60 | 266 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 131 | 144 | 21 | 133 | - | ||||||||||||||||||||
Owner occupied | 152 | 194 | 30 | 87 | 1 | ||||||||||||||||||||
Revolving and junior liens | 366 | 405 | 93 | 368 | 1 | ||||||||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||||||||
Total impaired loans with a recorded allowance | 6,910 | 8,193 | 1,784 | 3,892 | 6 | ||||||||||||||||||||
Total impaired loans | $ | 31,926 | $ | 38,299 | $ | 1,784 | $ | 33,906 | $ | 103 | |||||||||||||||
Impaired loans by class of loans were as follows: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
As of December 31, 2014 | March 31, 2014 | ||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||
Commercial | $ | 1,500 | $ | 2,114 | $ | - | $ | 26 | $ | - | |||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | 7,125 | 7,870 | - | 2,567 | 1 | ||||||||||||||||||||
Owner occupied special purpose | 1,798 | 1,941 | - | 4,120 | - | ||||||||||||||||||||
Non-owner occupied general purpose | 4,831 | 5,653 | - | 6,886 | 15 | ||||||||||||||||||||
Non-owner occupied special purpose | 1,423 | 1,930 | - | 652 | - | ||||||||||||||||||||
Retail properties | - | - | - | 3,107 | - | ||||||||||||||||||||
Farm | - | - | - | - | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | 1,791 | 1,791 | - | 1,955 | 28 | ||||||||||||||||||||
Land | - | - | - | 209 | - | ||||||||||||||||||||
Commercial speculative | - | - | - | 1,325 | - | ||||||||||||||||||||
All other | 291 | 323 | - | 150 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 2,595 | 3,024 | - | 4,673 | 1 | ||||||||||||||||||||
Owner occupied | 11,419 | 12,816 | - | 9,589 | 47 | ||||||||||||||||||||
Revolving and junior liens | 2,238 | 3,541 | - | 2,030 | 1 | ||||||||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||||||||
Total impaired loans with no recorded allowance | 35,011 | 41,003 | - | 37,289 | 93 | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||
Commercial | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||
Owner occupied general purpose | - | - | - | 926 | - | ||||||||||||||||||||
Owner occupied special purpose | - | - | - | 3,225 | - | ||||||||||||||||||||
Non-owner occupied general purpose | 76 | 76 | 21 | 469 | - | ||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | - | ||||||||||||||||||||
Retail properties | - | - | - | - | - | ||||||||||||||||||||
Farm | - | - | - | - | - | ||||||||||||||||||||
Construction | |||||||||||||||||||||||||
Homebuilder | - | - | - | 84 | - | ||||||||||||||||||||
Land | - | - | - | - | - | ||||||||||||||||||||
Commercial speculative | - | - | - | 588 | - | ||||||||||||||||||||
All other | 270 | 306 | 98 | 402 | - | ||||||||||||||||||||
Residential | |||||||||||||||||||||||||
Investor | 135 | 145 | 24 | 514 | - | ||||||||||||||||||||
Owner occupied | 23 | 65 | 38 | 890 | 2 | ||||||||||||||||||||
Revolving and junior liens | 371 | 405 | 97 | 997 | - | ||||||||||||||||||||
Consumer | - | - | - | - | - | ||||||||||||||||||||
Total impaired loans with a recorded allowance | 875 | 997 | 278 | 8,095 | 2 | ||||||||||||||||||||
Total impaired loans | $ | 35,886 | $ | 42,000 | $ | 278 | $ | 45,384 | $ | 95 | |||||||||||||||
Schedule of TDRs modified during the period by type of modification | |||||||||||||||||||||||||
TDR Modifications | |||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
contracts | recorded investment | recorded investment | |||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Bifurcate1 | 1 | $ | 300 | $ | 182 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
Other2 | 1 | 147 | 156 | ||||||||||||||||||||||
2 | $ | 447 | $ | 338 | |||||||||||||||||||||
TDR Modifications | |||||||||||||||||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | |||||||||||||||||||||||
contracts | recorded investment | recorded investment | |||||||||||||||||||||||
Troubled debt restructurings | |||||||||||||||||||||||||
Real estate - commercial | |||||||||||||||||||||||||
Other2 | 2 | $ | 1,320 | $ | 1,191 | ||||||||||||||||||||
Real estate - residential | |||||||||||||||||||||||||
Owner occupied | |||||||||||||||||||||||||
HAMP3 | 1 | 102 | 76 | ||||||||||||||||||||||
Deferral4 | 1 | 237 | 127 | ||||||||||||||||||||||
4 | $ | 1,659 | $ | 1,394 | |||||||||||||||||||||
1 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. | |||||||||||||||||||||||||
2 Other: Change of terms from bankruptcy court | |||||||||||||||||||||||||
3 HAMP: Home Affordable Modification Program | |||||||||||||||||||||||||
4 Deferral: Refers to the deferral of principal | |||||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment | Changes in the allowance for loan losses by segment of loans based on method of impairment for three months ending March 31, 2015, were as follows: | |||||||||||||||||||||
Allowance for loan losses: | Real Estate | Real Estate | Real Estate | |||||||||||||||||||
Commercial | Commercial 1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||
Three months ended March 31, 2015 | ||||||||||||||||||||||
Beginning balance | $ | 1,644 | $ | 12,577 | $ | 1,475 | $ | 1,981 | $ | 1,454 | $ | 2,506 | $ | 21,637 | ||||||||
Charge-offs | 32 | 495 | 1 | 618 | 118 | - | 1,264 | |||||||||||||||
Recoveries | 141 | 330 | 5 | 224 | 108 | - | 808 | |||||||||||||||
(Release) provision | -241 | 1,621 | -207 | 330 | -27 | -1,476 | - | |||||||||||||||
Ending balance | $ | 1,512 | $ | 14,033 | $ | 1,272 | $ | 1,917 | $ | 1,417 | $ | 1,030 | $ | 21,181 | ||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 1,580 | $ | 60 | $ | 144 | $ | - | $ | - | $ | 1,784 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 1,512 | $ | 12,453 | $ | 1,212 | $ | 1,773 | $ | 1,417 | $ | 1,030 | $ | 19,397 | ||||||||
Loans: | ||||||||||||||||||||||
Ending balance | $ | 122,892 | $ | 608,267 | $ | 39,430 | $ | 363,967 | $ | 3,495 | $ | 13,018 | $ | 1,151,069 | ||||||||
Ending balance: Individually evaluated for impairment | $ | 1,897 | $ | 11,867 | $ | 1,821 | $ | 16,341 | $ | - | $ | - | $ | 31,926 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 120,995 | $ | 596,400 | $ | 37,609 | $ | 347,626 | $ | 3,495 | $ | 13,018 | $ | 1,119,143 | ||||||||
1 As of March 31, 2015, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $5.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $1.1 million at March 31, 2015. | ||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment for three months ending March 31, 2014, were as follows: | ||||||||||||||||||||||
Allowance for loan losses: | Real Estate | Real Estate | Real Estate | |||||||||||||||||||
Commercial | Commercial 1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||
Three months ended March 31, 2014 | ||||||||||||||||||||||
Beginning balance | $ | 2,250 | $ | 16,763 | $ | 1,980 | $ | 2,837 | $ | 1,439 | $ | 2,012 | $ | 27,281 | ||||||||
Charge-offs | 4 | 329 | 68 | 849 | 110 | - | 1,360 | |||||||||||||||
Recoveries | 15 | 141 | 37 | 250 | 112 | - | 555 | |||||||||||||||
(Release) provision | 65 | -2,509 | 49 | 30 | 54 | 1,311 | -1,000 | |||||||||||||||
Ending balance | $ | 2,326 | $ | 14,066 | $ | 1,998 | $ | 2,268 | $ | 1,495 | $ | 3,323 | $ | 25,476 | ||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 673 | $ | 194 | $ | 380 | $ | - | $ | - | $ | 1,247 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 2,326 | $ | 13,393 | $ | 1,804 | $ | 1,888 | $ | 1,495 | $ | 3,323 | $ | 24,229 | ||||||||
Loans: | ||||||||||||||||||||||
Ending balance | $ | 107,548 | $ | 579,297 | $ | 32,016 | $ | 375,781 | $ | 2,837 | $ | 13,758 | $ | 1,111,237 | ||||||||
Ending balance: Individually evaluated for impairment | $ | 24 | $ | 22,790 | $ | 4,679 | $ | 16,705 | $ | - | $ | - | $ | 44,198 | ||||||||
Ending balance: Collectively evaluated for impairment | $ | 107,524 | $ | 556,507 | $ | 27,337 | $ | 359,076 | $ | 2,837 | $ | 13,758 | $ | 1,067,039 | ||||||||
1 As of March 31, 2014, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $5.6 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $412,000 at March 31, 2014. | ||||||||||||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Real Estate Owned | |||||||||
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Other real estate owned | 2015 | 2014 | |||||||
Balance at beginning of period | $ | 31,982 | $ | 41,537 | |||||
Property additions | 6,108 | 4,688 | |||||||
Property improvements | - | - | |||||||
Less: | |||||||||
Property disposals, net of gains/losses | 2,020 | 5,569 | |||||||
Period valuation adjustments | 609 | 436 | |||||||
Balance at end of period | $ | 35,461 | $ | 40,220 | |||||
Schedule of activity in valuation allowance | |||||||||
2015 | 2014 | ||||||||
Balance at beginning of period | $ | 19,229 | $ | 22,284 | |||||
Provision for unrealized losses | 609 | 436 | |||||||
Reductions taken on sales | -382 | -2,647 | |||||||
Other adjustments | - | -589 | |||||||
Balance at end of period | $ | 19,456 | $ | 19,484 | |||||
Schedule of expenses related to foreclosed assets, net of lease revenue | |||||||||
2015 | 2014 | ||||||||
Gain on sales, net | $ | -95 | $ | -386 | |||||
Provision for unrealized losses | 609 | 436 | |||||||
Operating expenses | 1,001 | 1,237 | |||||||
Less: | |||||||||
Lease revenue | 163 | 279 | |||||||
$ | 1,352 | $ | 1,008 | ||||||
Deposits_Tables
Deposits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Deposits | ||||||||
Schedule of major classifications of deposits | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Noninterest bearing demand | $ | 431,843 | $ | 400,447 | ||||
Savings | 252,578 | 239,845 | ||||||
NOW accounts | 344,737 | 328,641 | ||||||
Money market accounts | 299,303 | 296,617 | ||||||
Certificates of deposit of less than $100,000 | 247,132 | 251,108 | ||||||
Certificates of deposit of $100,000 through $250,000 | 113,160 | 112,515 | ||||||
Certificates of deposit of more than $250,000 | 56,025 | 55,882 | ||||||
$ | 1,744,778 | $ | 1,685,055 | |||||
Borrowings_Tables
Borrowings (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Borrowings | ||||||||
Summary of borrowings and junior subordinated debentures | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Securities sold under repurchase agreements | $ | 26,513 | $ | 21,036 | ||||
FHLBC advances | 30,000 | 45,000 | ||||||
Junior subordinated debentures | 58,378 | 58,378 | ||||||
Subordinated debt | 45,000 | 45,000 | ||||||
Notes payable and other borrowings | 500 | 500 | ||||||
$ | 160,391 | $ | 169,914 | |||||
Equity_Compensation_Plans_Tabl
Equity Compensation Plans (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Equity Compensation Plans | |||||||||||
Summary of stock option activity in Incentive Plan | A summary of stock option activity in the Plans for the three months ending March 31, 2015, is as follows: | ||||||||||
Weighted- | |||||||||||
Weighted | Average | ||||||||||
Average | Remaining | ||||||||||
Exercise | Contractual | Aggregate | |||||||||
Shares | Price | Term (years) | Intrinsic Value | ||||||||
Beginning outstanding | 229,000 | $ | 28.28 | ||||||||
Canceled | - | - | |||||||||
Expired | - | - | |||||||||
Ending outstanding | 229,000 | $ | 28.28 | 1.9 | $ | - | |||||
Exercisable at end of period | 229,000 | $ | 28.28 | 1.9 | $ | - | |||||
Summary of changes in nonvested shares of restricted share rights | |||||||||||
March 31, 2015 | |||||||||||
Weighted | |||||||||||
Restricted | Average | ||||||||||
Stock Shares | Grant Date | ||||||||||
and Units | Fair Value | ||||||||||
Nonvested at January 1 | 325,000 | $ | 4.15 | ||||||||
Granted | 101,500 | 5.38 | |||||||||
Vested | -50,000 | 3.90 | |||||||||
Forfeited | -13,500 | 4.25 | |||||||||
Nonvested at March 31 | 363,000 | $ | 4.53 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share | ||||||||
Schedule of Earnings Per Share | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Basic earnings per share: | ||||||||
Weighted-average common shares outstanding | 29,470,297 | 13,921,023 | ||||||
Weighted-average common shares less stock based awards | 29,470,297 | 13,912,523 | ||||||
Weighted-average common shares stock based awards | - | 169,111 | ||||||
Net income | $ | 3,499 | $ | 2,202 | ||||
Preferred stock dividends and accretion | 824 | 1,572 | ||||||
Net earnings available to common stockholders | 2,675 | 630 | ||||||
Basic earnings per share common undistributed earnings | N/A | 0.04 | ||||||
Basic earnings per share | 0.09 | 0.04 | ||||||
Diluted earnings per share: | ||||||||
Weighted-average common shares outstanding | 29,470,297 | 13,921,023 | ||||||
Dilutive effect of nonvested restricted awards1 | 203,583 | 160,611 | ||||||
Diluted average common shares outstanding | 29,673,880 | 14,081,634 | ||||||
Net earnings available to common stockholders | $ | 2,675 | $ | 630 | ||||
Diluted earnings per share | $ | 0.09 | $ | 0.04 | ||||
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation | 1,044,339 | 1,140,839 | ||||||
1 Includes the common stock equivalents for restricted share rights that are dilutive. | ||||||||
Regulatory_Capital_Matters_Tab
Regulatory & Capital Matters (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Regulatory & Capital Matters | |||||||||||||||||||
Schedule of capital levels and industry defined regulatory minimum required levels | |||||||||||||||||||
Minimum Required | Minimum Required | ||||||||||||||||||
for Capital | to be Well | ||||||||||||||||||
Actual | Adequacy Purposes | Capitalized 1 | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
March 31, 2015 | |||||||||||||||||||
Common equity tier 1 capital to risk weighted assets | |||||||||||||||||||
Consolidated | $ | 136,976 | 9.46 | % | $ | 65,158 | 4.50 | % | N/A | N/A | |||||||||
Old Second Bank | 245,076 | 16.91 | 65,218 | 4.50 | $ | 94,204 | 6.50 | % | |||||||||||
Total capital to risk weighted assets | |||||||||||||||||||
Consolidated | 250,416 | 17.30 | 115,799 | 8.00 | N/A | N/A | |||||||||||||
Old Second Bank | 263,398 | 18.18 | 115,907 | 8.00 | 144,883 | 10.00 | |||||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||
Consolidated | 197,987 | 13.68 | 86,836 | 6.00 | N/A | N/A | |||||||||||||
Old Second Bank | 245,076 | 16.91 | 86,958 | 6.00 | 115,944 | 8.00 | |||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||
Consolidated | 197,987 | 9.82 | 80,646 | 4.00 | N/A | N/A | |||||||||||||
Old Second Bank | 245,076 | 12.15 | 80,683 | 4.00 | 100,854 | 5.00 | |||||||||||||
December 31, 2014 | |||||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||||
Consolidated | $ | 240,566 | 17.68 | % | $ | 108,853 | 8.00 | % | N/A | N/A | |||||||||
Old Second Bank | 254,897 | 18.73 | 108,872 | 8.00 | $ | 136,090 | 10.00 | % | |||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||
Consolidated | 196,499 | 14.44 | 54,432 | 4.00 | N/A | N/A | |||||||||||||
Old Second Bank | 237,828 | 17.47 | 54,454 | 4.00 | 81,681 | 6.00 | |||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||
Consolidated | 196,499 | 9.93 | 79,154 | 4.00 | N/A | N/A | |||||||||||||
Old Second Bank | 237,828 | 12.02 | 79,144 | 4.00 | 98,930 | 5.00 | |||||||||||||
1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”. | |||||||||||||||||||
Fair_Value_Option_and_Fair_Val
Fair Value Option and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Measurements | |||||||||||||
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | |||||||||||||
March 31, 2015 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets: | |||||||||||||
Investment securities available-for-sale | |||||||||||||
U.S. Treasury | $ | 1,525 | $ | - | $ | - | $ | 1,525 | |||||
U.S. government agencies | - | 1,611 | - | 1,611 | |||||||||
States and political subdivisions | - | 33,628 | 118 | 33,746 | |||||||||
Corporate Bonds | - | 33,004 | - | 33,004 | |||||||||
Collateralized mortgage obligations | - | 68,093 | - | 68,093 | |||||||||
Asset-backed securities | - | 168,256 | - | 168,256 | |||||||||
Collateralized loan obligations | - | 93,017 | - | 93,017 | |||||||||
Loans held-for-sale | - | 7,038 | - | 7,038 | |||||||||
Mortgage servicing rights | - | - | 5,254 | 5,254 | |||||||||
Other assets (Interest rate swap agreements) | - | 66 | - | 66 | |||||||||
Other assets (Mortgage banking derivatives) | - | 296 | - | 296 | |||||||||
Total | $ | 1,525 | $ | 405,009 | $ | 5,372 | $ | 411,906 | |||||
Liabilities: | |||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 66 | $ | - | $ | 66 | |||||
Total | $ | - | $ | 66 | $ | - | $ | 66 | |||||
December 31, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Assets: | |||||||||||||
Investment securities available-for-sale | |||||||||||||
U.S. Treasury | $ | 1,527 | $ | - | $ | - | $ | 1,527 | |||||
U.S. government agencies | - | 1,624 | - | 1,624 | |||||||||
States and political subdivisions | - | 21,900 | 118 | 22,018 | |||||||||
Corporate bonds | - | 30,985 | - | 30,985 | |||||||||
Collateralized mortgage obligations | - | 63,627 | - | 63,627 | |||||||||
Asset-backed securities | - | 120,555 | 52,941 | 173,496 | |||||||||
Collateralized loan obligations | - | 92,209 | - | 92,209 | |||||||||
Loans held-for-sale | - | 5,072 | - | 5,072 | |||||||||
Mortgage servicing rights | - | - | 5,462 | 5,462 | |||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 30 | - | 30 | |||||||||
Other assets (Mortgage banking derivatives) | - | 143 | - | 143 | |||||||||
Total | $ | 1,527 | $ | 336,145 | $ | 58,521 | $ | 396,193 | |||||
Liabilities: | |||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 30 | $ | - | $ | 30 | |||||
Total | $ | - | $ | 30 | $ | - | $ | 30 | |||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | |||||||||||||
Three months ended March 31, 2015 | |||||||||||||
Securities available-for-sale | |||||||||||||
States and | Mortgage | ||||||||||||
Asset- | Political | Servicing | |||||||||||
backed | Subdivisions | Rights | |||||||||||
Beginning balance January 1, 2015 | $ | 52,941 | $ | 118 | $ | 5,462 | |||||||
Transfers out of Level 3 | -24,917 | - | - | ||||||||||
Total gains or losses | |||||||||||||
Included in earnings (or changes in net assets) | -28 | - | -454 | ||||||||||
Included in other comprehensive income | -541 | - | - | ||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||
Issuances | - | - | 401 | ||||||||||
Settlements | - | - | -155 | ||||||||||
Sales | -27,455 | - | - | ||||||||||
Ending balance March 31, 2015 | $ | - | $ | 118 | $ | 5,254 | |||||||
Three months ended March 31, 2014 | |||||||||||||
Securities available-for-sale | |||||||||||||
States and | Mortgage | Interest Rate | |||||||||||
Asset- | Political | Servicing | Swap | ||||||||||
backed | Subdivisions | Rights | Valuation | ||||||||||
Beginning balance January 1, 2014 | $ | 154,137 | $ | 125 | $ | 5,807 | $ | -6 | |||||
Total gains or losses | |||||||||||||
Included in earnings (or changes in net assets) | 226 | - | 111 | 5 | |||||||||
Included in other comprehensive income | -315 | - | - | - | |||||||||
Purchases, issuances, sales, and settlements | |||||||||||||
Purchases | 4,290 | - | - | - | |||||||||
Issuances | - | - | -304 | - | |||||||||
Ending balance March 31, 2014 | $ | 158,338 | $ | 125 | $ | 5,614 | $ | -1 | |||||
Schedule of quantitative information about level 3 fair value measurements | The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of March 31, 2015: | ||||||||||||
Weighted | |||||||||||||
Measured at fair value | Unobservable | Average | |||||||||||
on a recurring basis: | Fair Value | Valuation Methodology | Inputs | Range of Input | of Inputs | ||||||||
Mortgage Servicing rights | $ | 5,254 | Discounted Cash Flow | Discount Rate | 9.7-15.5% | 11.9 | % | ||||||
Prepayment Speed | 4.8-35.1% | 10.2 | % | ||||||||||
The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2014: | |||||||||||||
Weighted | |||||||||||||
Measured at fair value | Unobservable | Average | |||||||||||
on a recurring basis: | Fair Value | Valuation Methodology | Inputs | Range of Input | of Inputs | ||||||||
Mortgage Servicing rights | $ | 5,462 | Discounted Cash Flow | Discount Rate | 9.7-108.2% | 10.2 | % | ||||||
Prepayment Speed | 5.0-78.4% | 10.9 | % | ||||||||||
Asset-backed securities | 52,941 | Discounted Cash Flow | Credit Risk Premium | 0.9-0.9% | 0.9 | % | |||||||
with comparable transaction yields | Liquidity Discount | 3.5-3.7% | 3.6 | % | |||||||||
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | |||||||||||||
March 31, 2015 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Impaired loans1 | $ | - | $ | - | $ | 4,776 | $ | 4,776 | |||||
Other real estate owned, net2 | - | - | 35,461 | 35,461 | |||||||||
Total | $ | - | $ | - | $ | 40,237 | $ | 40,237 | |||||
1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the fair value of the impaired loan had a carrying amount of $6.6 million, with a valuation allowance of $1.8 million, resulting in an increase of specific allocations within the allowance for loan losses of $1.5 million for the three months ending March 31, 2015. | |||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $35.5 million, which is made up of the outstanding balance of $56.8 million, net of a valuation allowance of $19.5 million and participations of $1.8 million, at March 31, 2015. | |||||||||||||
December 31, 2014 | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||
Impaired loans1 | $ | - | $ | - | $ | 564 | $ | 564 | |||||
Other real estate owned, net2 | - | - | 31,982 | 31,982 | |||||||||
Total | $ | - | $ | - | $ | 32,546 | $ | 32,546 | |||||
1 Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $842,000, with a valuation allowance of $278,000, resulting in a decrease of specific allocations within the provision for loan losses of $2.1 million for the year ending December 31, 2014. | |||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $32.0 million, which is made up of the outstanding balance of $53.0 million, net of a valuation allowance of $19.2 million and participations of $1.8 million, at December 31, 2014. | |||||||||||||
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||||||||||||||||||||
Schedule of derivatives not designated as hedging instruments | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Notional or | ||||||||||||||||||||
Contractual | Balance Sheet | Balance Sheet | ||||||||||||||||||
Amount | Location | Fair Value | Location | Fair Value | ||||||||||||||||
Interest rate swap contracts | $ | 13,123 | Other Assets | $ | 66 | Other Liabilities | $ | 66 | ||||||||||||
Commitments1 | 222,684 | Other Assets | 296 | N/A | - | |||||||||||||||
Forward contracts2 | 28,654 | N/A | - | Other Liabilities | - | |||||||||||||||
Total | $ | 362 | $ | 66 | ||||||||||||||||
1Includes unused loan commitments and interest rate lock commitments. | ||||||||||||||||||||
2Includes forward MBS contracts and forward loan contracts. | ||||||||||||||||||||
The following table presents derivatives not designated as hedging instruments as of December 31, 2014. | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Notional or | ||||||||||||||||||||
Contractual | Balance Sheet | Balance Sheet | ||||||||||||||||||
Amount | Location | Fair Value | Location | Fair Value | ||||||||||||||||
Interest rate swap contracts net of credit valuation | $ | 16,334 | Other Assets | $ | 30 | Other Liabilities | $ | 30 | ||||||||||||
Commitments1 | 201,946 | Other Assets | 143 | N/A | - | |||||||||||||||
Forward contracts2 | 14,000 | N/A | - | Other Liabilities | - | |||||||||||||||
Total | $ | 173 | $ | 30 | ||||||||||||||||
1Includes unused loan commitments and interest rate lock commitments. | ||||||||||||||||||||
2Includes forward MBS contracts. | ||||||||||||||||||||
Schedule of financial instrument commitments | ||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||
Fixed | Variable | Total | Fixed | Variable | Total | |||||||||||||||
Letters of credit: | ||||||||||||||||||||
Borrower: | ||||||||||||||||||||
Financial standby | $ | 55 | $ | 5,227 | $ | 5,282 | $ | 55 | $ | 4,745 | $ | 4,800 | ||||||||
Commercial standby | - | 47 | 47 | - | 49 | 49 | ||||||||||||||
Performance standby | 416 | 5,386 | 5,802 | 416 | 5,690 | 6,106 | ||||||||||||||
471 | 10,660 | 11,131 | 471 | 10,484 | 10,955 | |||||||||||||||
Non-borrower: | ||||||||||||||||||||
Performance standby | - | 576 | 576 | - | 572 | 572 | ||||||||||||||
- | 576 | 576 | - | 572 | 572 | |||||||||||||||
Total letters of credit | $ | 471 | $ | 11,236 | $ | 11,707 | $ | 471 | $ | 11,056 | $ | 11,527 | ||||||||
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Values of Financial Instruments | ||||||||||||||||
Schedule of carrying amount and estimated fair values of financial instruments | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Carrying | Fair | |||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 19,051 | $ | 19,051 | $ | 19,051 | $ | - | $ | - | ||||||
Interest bearing deposits with financial institutions | 55,111 | 55,111 | 55,111 | - | - | |||||||||||
Securities available-for-sale | 399,252 | 399,252 | 1,525 | 397,609 | 118 | |||||||||||
Securities held-to-maturity | 257,332 | 265,095 | - | 265,095 | - | |||||||||||
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | - | 9,058 | - | |||||||||||
Bank-owned life insurance | 57,161 | 57,161 | - | 57,161 | - | |||||||||||
Loans held-for-sale | 7,038 | 7,038 | - | 7,038 | - | |||||||||||
Loans, net | 1,129,888 | 1,142,727 | - | - | 1,142,727 | |||||||||||
Accrued interest receivable | 4,953 | 4,953 | - | 4,953 | - | |||||||||||
Financial liabilities: | ||||||||||||||||
Noninterest bearing deposits | $ | 431,843 | $ | 431,843 | $ | 431,843 | $ | - | $ | - | ||||||
Interest bearing deposits | 1,312,935 | 1,313,710 | - | 1,313,710 | - | |||||||||||
Securities sold under repurchase agreements | 26,513 | 26,513 | - | 26,513 | - | |||||||||||
Other short-term borrowings | 30,000 | 30,000 | - | 30,000 | - | |||||||||||
Junior subordinated debentures | 58,378 | 54,631 | 32,408 | 22,223 | - | |||||||||||
Subordinated debenture | 45,000 | 39,690 | - | 39,690 | - | |||||||||||
Note payable and other borrowings | 500 | 427 | - | 427 | - | |||||||||||
Borrowing interest payable | 68 | 68 | - | 68 | - | |||||||||||
Deposit interest payable | 421 | 421 | - | 421 | - | |||||||||||
December 31, 2014 | ||||||||||||||||
Carrying | Fair | |||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks | $ | 30,101 | $ | 30,101 | $ | 30,101 | $ | - | $ | - | ||||||
Interest bearing deposits with financial institutions | 14,096 | 14,096 | 14,096 | - | - | |||||||||||
Securities available-for-sale | 385,486 | 385,486 | 1,527 | 330,900 | 53,059 | |||||||||||
Securities held-to-maturity | 259,670 | 263,266 | - | 263,266 | - | |||||||||||
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | - | 9,058 | - | |||||||||||
Bank-owned life insurance | 56,807 | 56,807 | - | 56,807 | - | |||||||||||
Loans held-for-sale | 5,072 | 5,072 | - | 5,072 | - | |||||||||||
Loans, net | 1,137,695 | 1,151,223 | - | - | 1,151,223 | |||||||||||
Accrued interest receivable | 4,888 | 4,888 | - | 4,888 | - | |||||||||||
Financial liabilities: | ||||||||||||||||
Noninterest bearing deposits | $ | 400,447 | $ | 400,447 | $ | 400,447 | $ | - | $ | - | ||||||
Interest bearing deposits | 1,284,608 | 1,284,887 | - | 1,284,887 | - | |||||||||||
Securities sold under repurchase agreements | 21,036 | 21,036 | - | 21,036 | - | |||||||||||
Other short-term borrowings | 45,000 | 45,000 | - | 45,000 | - | |||||||||||
Junior subordinated debentures | 58,378 | 54,686 | 32,441 | 22,245 | - | |||||||||||
Subordinated debenture | 45,000 | 39,366 | - | 39,366 | - | |||||||||||
Note payable and other borrowings | 500 | 422 | - | 422 | - | |||||||||||
Borrowing interest payable | 75 | 75 | - | 75 | - | |||||||||||
Deposit interest payable | 467 | 467 | - | 467 | - | |||||||||||
Securities_Investment_Portfoli
Securities - Investment Portfolio (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
FHLB and FRB Stock | ||
FHLBC stock | $4.30 | $4.30 |
FRB stock | $4.80 | $4.80 |
Securities_Amortized_Cost_and_
Securities - Amortized Cost and Fair Value (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Securities Available-for-Sale | ||
Amortized Cost | $404,429 | $391,694 |
Gross Unrealized Gains | 432 | 1,147 |
Gross Unrealized Losses | -5,609 | -7,355 |
Fair Value | 399,252 | 385,486 |
Securities Held-to-Maturity | ||
Amortized Cost | 257,332 | 259,670 |
Gross Unrealized Gains | 8,023 | 5,035 |
Gross Unrealized Losses | -260 | -1,439 |
Fair Value | 265,095 | 263,266 |
U.S. Treasury | ||
Securities Available-for-Sale | ||
Amortized Cost | 1,524 | 1,529 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | -2 | |
Fair Value | 1,525 | 1,527 |
U.S. government agencies | ||
Securities Available-for-Sale | ||
Amortized Cost | 1,704 | 1,711 |
Gross Unrealized Losses | -93 | -87 |
Fair Value | 1,611 | 1,624 |
States and political subdivisions | ||
Securities Available-for-Sale | ||
Amortized Cost | 33,573 | 21,682 |
Gross Unrealized Gains | 327 | 432 |
Gross Unrealized Losses | -154 | -96 |
Fair Value | 33,746 | 22,018 |
Corporate bonds | ||
Securities Available-for-Sale | ||
Amortized Cost | 33,385 | 31,243 |
Gross Unrealized Gains | 23 | 309 |
Gross Unrealized Losses | -404 | -567 |
Fair Value | 33,004 | 30,985 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 69,205 | 65,728 |
Gross Unrealized Gains | 50 | 31 |
Gross Unrealized Losses | -1,162 | -2,132 |
Fair Value | 68,093 | 63,627 |
Securities Held-to-Maturity | ||
Amortized Cost | 220,197 | 222,545 |
Gross Unrealized Gains | 5,482 | 3,005 |
Gross Unrealized Losses | -260 | -1,439 |
Fair Value | 225,419 | 224,111 |
Asset-backed securities | ||
Securities Available-for-Sale | ||
Amortized Cost | 170,817 | 175,565 |
Gross Unrealized Gains | 18 | 199 |
Gross Unrealized Losses | -2,579 | -2,268 |
Fair Value | 168,256 | 173,496 |
Collateralized loan obligations | ||
Securities Available-for-Sale | ||
Amortized Cost | 94,221 | 94,236 |
Gross Unrealized Gains | 13 | 176 |
Gross Unrealized Losses | -1,217 | -2,203 |
Fair Value | 93,017 | 92,209 |
U.S. government agency mortgage-backed | ||
Securities Held-to-Maturity | ||
Amortized Cost | 37,135 | 37,125 |
Gross Unrealized Gains | 2,541 | 2,030 |
Fair Value | $39,676 | $39,155 |
Securities_Contractural_Maturi
Securities - Contractural Maturities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Securities Available-for-Sale, Amortized Cost | ||
Due in one year or less | $20,410 | |
Due after one year through five years | 9,048 | |
Due after five years through ten years | 35,588 | |
Due after ten years | 5,140 | |
Debt securities excluding securities not due at a single maturity date | 70,186 | |
Total | 404,429 | 391,694 |
Securities Available-for-Sale, Weighted Average Yield | ||
Due in one year or less (as a percent) | 1.56% | |
Due after one year through five years (as a percent) | 2.64% | |
Due after five years through ten years (as a percent) | 2.16% | |
Due after ten years (as a percent) | 3.27% | |
Debt securities (as a percent) | 2.13% | |
Total (as a percent) | 1.84% | |
Securities Available-for-Sale, Fair Value | ||
Due in one year or less | 20,454 | |
Due after one year through five years | 9,199 | |
Due after five years through ten years | 35,221 | |
Due after ten years | 5,012 | |
Debt securities | 69,886 | |
Fair Value | 399,252 | 385,486 |
Securities Held-to-Maturity, Amortized Cost | ||
Amortized Cost | 257,332 | 259,670 |
Securities Held-to-Maturity, Weighted Average Yield | ||
Weighted Average Yield (as a percent) | 3.03% | |
Securities Held-to-Maturity, Fair Value | ||
Fair Value | 265,095 | 263,266 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 69,205 | |
Total | 69,205 | 65,728 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 1.95% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | 68,093 | |
Fair Value | 68,093 | 63,627 |
Securities Held-to-Maturity, Amortized Cost | ||
Amortized Cost | 220,197 | 222,545 |
Securities Held-to-Maturity, Fair Value | ||
Fair Value | 225,419 | 224,111 |
Asset-backed securities | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 170,817 | |
Total | 170,817 | 175,565 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 1.11% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | 168,256 | |
Fair Value | 168,256 | 173,496 |
Collateralized loan obligations | ||
Securities Available-for-Sale, Amortized Cost | ||
Securities not due at a single maturity date | 94,221 | |
Total | 94,221 | 94,236 |
Securities Available-for-Sale, Weighted Average Yield | ||
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | 2.85% | |
Securities Available-for-Sale, Fair Value | ||
Securities not due at a single maturity date | 93,017 | |
Fair Value | $93,017 | $92,209 |
Securities_Unrealized_Loss_Pos
Securities - Unrealized Loss Positions (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
security | security | |
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 33 | 35 |
Greater than 12 months in an unrealized loss position | 10 | 8 |
Total | 43 | 43 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | $3,302 | $4,764 |
Greater than 12 months in an unrealized loss position | 2,307 | 2,591 |
Total | 5,609 | 7,355 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 244,747 | 241,626 |
Greater than 12 months in an unrealized loss position | 86,207 | 68,811 |
Total | 330,954 | 310,437 |
Securities Held-to-Maturity, Number of Securities | ||
Less than 12 months in an unrealized loss position | 1 | 7 |
Greater than 12 months in an unrealized loss position | 5 | 4 |
Total | 6 | 11 |
Securities Held-to-Maturity, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 42 | 457 |
Greater than 12 months in an unrealized loss position | 218 | 982 |
Total | 260 | 1,439 |
Securities Held-to-Maturity, Fair Value | ||
Less than 12 months in an unrealized loss position | 13,135 | 49,302 |
Greater than 12 months in an unrealized loss position | 51,149 | 46,283 |
Total | 64,284 | 95,585 |
U.S. Treasury | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 1 | |
Total | 1 | |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 2 | |
Total | 2 | |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 1,527 | |
Total | 1,527 | |
U.S. government agencies | ||
Securities Available-for-Sale, Number of Securities | ||
Greater than 12 months in an unrealized loss position | 1 | 1 |
Total | 1 | 1 |
Securities Available-for-Sale, Unrealized Losses | ||
Greater than 12 months in an unrealized loss position | 93 | 87 |
Total | 93 | 87 |
Securities Available-for-Sale, Fair Value | ||
Greater than 12 months in an unrealized loss position | 1,611 | 1,624 |
Total | 1,611 | 1,624 |
States and political subdivisions | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 2 | 4 |
Total | 2 | 4 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 154 | 96 |
Total | 154 | 96 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 3,249 | 4,896 |
Total | 3,249 | 4,896 |
Corporate bonds | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 4 | 4 |
Greater than 12 months in an unrealized loss position | 2 | 1 |
Total | 6 | 5 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 295 | 486 |
Greater than 12 months in an unrealized loss position | 109 | 81 |
Total | 404 | 567 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 16,756 | 15,246 |
Greater than 12 months in an unrealized loss position | 6,893 | 1,921 |
Total | 23,649 | 17,167 |
Collateralized mortgage obligations | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 5 | 5 |
Greater than 12 months in an unrealized loss position | 3 | 3 |
Total | 8 | 8 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 434 | 900 |
Greater than 12 months in an unrealized loss position | 728 | 1,232 |
Total | 1,162 | 2,132 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 38,849 | 38,284 |
Greater than 12 months in an unrealized loss position | 19,754 | 21,604 |
Total | 58,603 | 59,888 |
Securities Held-to-Maturity, Number of Securities | ||
Less than 12 months in an unrealized loss position | 1 | 7 |
Greater than 12 months in an unrealized loss position | 5 | 4 |
Total | 6 | 11 |
Securities Held-to-Maturity, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 42 | 457 |
Greater than 12 months in an unrealized loss position | 218 | 982 |
Total | 260 | 1,439 |
Securities Held-to-Maturity, Fair Value | ||
Less than 12 months in an unrealized loss position | 13,135 | 49,302 |
Greater than 12 months in an unrealized loss position | 51,149 | 46,283 |
Total | 64,284 | 95,585 |
Asset-backed securities | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 9 | 9 |
Greater than 12 months in an unrealized loss position | 4 | 3 |
Total | 13 | 12 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 1,202 | 1,077 |
Greater than 12 months in an unrealized loss position | 1,377 | 1,191 |
Total | 2,579 | 2,268 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 97,873 | 99,286 |
Greater than 12 months in an unrealized loss position | 57,949 | 43,662 |
Total | 155,822 | 142,948 |
Collateralized loan obligations | ||
Securities Available-for-Sale, Number of Securities | ||
Less than 12 months in an unrealized loss position | 13 | 12 |
Total | 13 | 12 |
Securities Available-for-Sale, Unrealized Losses | ||
Less than 12 months in an unrealized loss position | 1,217 | 2,203 |
Total | 1,217 | 2,203 |
Securities Available-for-Sale, Fair Value | ||
Less than 12 months in an unrealized loss position | 88,020 | 82,387 |
Total | $88,020 | $82,387 |
Loans_Major_Classifications_De
Loans - Major Classifications (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Loans | |||
Total loans, gross | $1,150,364 | $1,158,594 | |
Net deferred loan fees | 705 | 738 | |
Total Loans | 1,151,069 | 1,159,332 | 1,111,237 |
Overdraft | |||
Loans | |||
Total loans, gross | 368 | 649 | |
Lease financing receivables | |||
Loans | |||
Total loans, gross | 8,651 | 8,038 | |
Other | |||
Loans | |||
Total loans, gross | 11,945 | 11,630 | |
Commercial | |||
Loans | |||
Total loans, gross | 114,241 | 119,158 | |
Total Loans | 122,892 | 127,196 | 107,548 |
Real estate - commercial | |||
Loans | |||
Total loans, gross | 608,267 | 600,629 | |
Total Loans | 608,267 | 579,297 | |
Real estate - construction | |||
Loans | |||
Total loans, gross | 39,430 | 44,795 | |
Total Loans | 39,430 | 32,016 | |
Real estate - residential | |||
Loans | |||
Total loans, gross | 363,967 | 370,191 | |
Total Loans | 363,967 | 375,781 | |
Consumer | |||
Loans | |||
Total loans, gross | 3,495 | 3,504 | |
Total Loans | $3,495 | $3,504 | $2,837 |
Loans_Major_Classifications_Lo
Loans - Major Classifications - Loan Concentrations (Details) (Total real estate, Loan receivables, Customer concentration risk) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Total real estate | Loan receivables | Customer concentration risk | ||
Loans | ||
Loans receivable as a percentage of total portfolio | 87.90% | 87.60% |
Loans_Aging_Analysis_Details
Loans - Aging Analysis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | $6,311 | $1,978 | |
60-89 Days Past Due | 10 | 987 | |
Total Past Due | 6,321 | 2,965 | |
Current | 1,121,700 | 1,129,441 | |
Nonaccrual | 23,048 | 26,926 | |
Total Loans | 1,151,069 | 1,159,332 | 1,111,237 |
Commercial | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | 684 | 38 | |
Total Past Due | 684 | 38 | |
Current | 120,311 | 125,658 | |
Nonaccrual | 1,897 | 1,500 | |
Total Loans | 122,892 | 127,196 | 107,548 |
Real estate - commercial | |||
Aged analysis of past due loans | |||
Total Loans | 608,267 | 579,297 | |
Real estate - commercial | Owner occupied general purpose | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | 2,921 | 699 | |
Total Past Due | 2,921 | 699 | |
Current | 127,156 | 126,029 | |
Nonaccrual | 5,427 | 5,937 | |
Total Loans | 135,504 | 132,665 | |
Real estate - commercial | Owner occupied special purpose | |||
Aged analysis of past due loans | |||
Current | 170,733 | 167,874 | |
Nonaccrual | 1,409 | 1,441 | |
Total Loans | 172,142 | 169,315 | |
Real estate - commercial | Non-owner occupied general purpose | |||
Aged analysis of past due loans | |||
Current | 151,033 | 153,328 | |
Nonaccrual | 750 | 4,907 | |
Total Loans | 151,783 | 158,235 | |
Real estate - commercial | Non-owner occupied special purpose | |||
Aged analysis of past due loans | |||
Current | 92,702 | 87,054 | |
Nonaccrual | 1,198 | 1,423 | |
Total Loans | 93,900 | 88,477 | |
Real estate - commercial | Retail properties | |||
Aged analysis of past due loans | |||
Current | 41,012 | 37,780 | |
Total Loans | 41,012 | 37,780 | |
Real estate - commercial | Farm | |||
Aged analysis of past due loans | |||
Current | 12,556 | 14,157 | |
Nonaccrual | 1,370 | ||
Total Loans | 13,926 | 14,157 | |
Real estate - construction | |||
Aged analysis of past due loans | |||
Total Loans | 39,430 | 32,016 | |
Real estate - construction | Homebuilder | |||
Aged analysis of past due loans | |||
Current | 2,660 | 3,204 | |
Total Loans | 2,660 | 3,204 | |
Real estate - construction | Land | |||
Aged analysis of past due loans | |||
Current | 2,463 | 1,658 | |
Total Loans | 2,463 | 1,658 | |
Real estate - construction | Commercial speculative | |||
Aged analysis of past due loans | |||
Current | 6,300 | 13,431 | |
Total Loans | 6,300 | 13,431 | |
Real estate - construction | All other | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | 71 | ||
60-89 Days Past Due | 29 | ||
Total Past Due | 100 | ||
Current | 27,506 | 25,841 | |
Nonaccrual | 501 | 561 | |
Total Loans | 28,007 | 26,502 | |
Real estate - residential | |||
Aged analysis of past due loans | |||
Total Loans | 363,967 | 375,781 | |
Real estate - residential | Investor | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | 359 | ||
Total Past Due | 359 | ||
Current | 134,329 | 135,273 | |
Nonaccrual | 1,160 | 1,942 | |
Total Loans | 135,848 | 137,215 | |
Real estate - residential | Owner occupied | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | 2,092 | 1,076 | |
60-89 Days Past Due | 914 | ||
Total Past Due | 2,092 | 1,990 | |
Current | 107,125 | 107,727 | |
Nonaccrual | 6,745 | 6,711 | |
Total Loans | 115,962 | 116,428 | |
Real estate - residential | Revolving and junior liens | |||
Aged analysis of past due loans | |||
30-59 Days Past Due | 255 | 94 | |
60-89 Days Past Due | 10 | 44 | |
Total Past Due | 265 | 138 | |
Current | 109,301 | 113,906 | |
Nonaccrual | 2,591 | 2,504 | |
Total Loans | 112,157 | 116,548 | |
Consumer | |||
Aged analysis of past due loans | |||
Current | 3,495 | 3,504 | |
Total Loans | 3,495 | 3,504 | 2,837 |
All other | |||
Aged analysis of past due loans | |||
Current | 13,018 | 13,017 | |
Total Loans | $13,018 | $13,017 | $13,758 |
Loans_Inclusion_Details
Loans - Inclusion (Details) (Minimum, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Minimum | |
Loans by risk rating | |
Loan commitment for inclusion in credit quality analysis | $50,000 |
Loans_Credit_Quality_Details
Loans - Credit Quality (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Loans by risk rating | |||
Total Loans | $1,151,069 | $1,159,332 | $1,111,237 |
Commercial | |||
Loans by risk rating | |||
Total Loans | 122,892 | 127,196 | 107,548 |
Real estate - commercial | |||
Loans by risk rating | |||
Total Loans | 608,267 | 579,297 | |
Real estate - commercial | Owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 135,504 | 132,665 | |
Real estate - commercial | Owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 172,142 | 169,315 | |
Real estate - commercial | Non-owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 151,783 | 158,235 | |
Real estate - commercial | Non-owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 93,900 | 88,477 | |
Real estate - commercial | Retail properties | |||
Loans by risk rating | |||
Total Loans | 41,012 | 37,780 | |
Real estate - commercial | Farm | |||
Loans by risk rating | |||
Total Loans | 13,926 | 14,157 | |
Real estate - construction | |||
Loans by risk rating | |||
Total Loans | 39,430 | 32,016 | |
Real estate - construction | Homebuilder | |||
Loans by risk rating | |||
Total Loans | 2,660 | 3,204 | |
Real estate - construction | Land | |||
Loans by risk rating | |||
Total Loans | 2,463 | 1,658 | |
Real estate - construction | Commercial speculative | |||
Loans by risk rating | |||
Total Loans | 6,300 | 13,431 | |
Real estate - construction | All other | |||
Loans by risk rating | |||
Total Loans | 28,007 | 26,502 | |
Real estate - residential | |||
Loans by risk rating | |||
Total Loans | 363,967 | 375,781 | |
Real estate - residential | Investor | |||
Loans by risk rating | |||
Total Loans | 135,848 | 137,215 | |
Real estate - residential | Owner occupied | |||
Loans by risk rating | |||
Total Loans | 115,962 | 116,428 | |
Real estate - residential | Revolving and junior liens | |||
Loans by risk rating | |||
Total Loans | 112,157 | 116,548 | |
Consumer | |||
Loans by risk rating | |||
Total Loans | 3,495 | 3,504 | 2,837 |
All other | |||
Loans by risk rating | |||
Total Loans | 13,018 | 13,017 | 13,758 |
Pass | |||
Loans by risk rating | |||
Total Loans | 1,088,175 | 1,090,065 | |
Pass | Commercial | |||
Loans by risk rating | |||
Total Loans | 111,647 | 118,845 | |
Pass | Real estate - commercial | Owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 125,429 | 124,936 | |
Pass | Real estate - commercial | Owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 161,825 | 154,225 | |
Pass | Real estate - commercial | Non-owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 146,281 | 148,212 | |
Pass | Real estate - commercial | Non-owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 88,655 | 78,957 | |
Pass | Real estate - commercial | Retail properties | |||
Loans by risk rating | |||
Total Loans | 38,501 | 36,779 | |
Pass | Real estate - commercial | Farm | |||
Loans by risk rating | |||
Total Loans | 12,027 | 14,157 | |
Pass | Real estate - construction | Homebuilder | |||
Loans by risk rating | |||
Total Loans | 2,660 | 3,204 | |
Pass | Real estate - construction | Land | |||
Loans by risk rating | |||
Total Loans | 2,463 | 1,658 | |
Pass | Real estate - construction | Commercial speculative | |||
Loans by risk rating | |||
Total Loans | 2,828 | 9,947 | |
Pass | Real estate - construction | All other | |||
Loans by risk rating | |||
Total Loans | 27,506 | 25,941 | |
Pass | Real estate - residential | Investor | |||
Loans by risk rating | |||
Total Loans | 134,673 | 134,952 | |
Pass | Real estate - residential | Owner occupied | |||
Loans by risk rating | |||
Total Loans | 108,433 | 109,085 | |
Pass | Real estate - residential | Revolving and junior liens | |||
Loans by risk rating | |||
Total Loans | 108,735 | 112,647 | |
Pass | Consumer | |||
Loans by risk rating | |||
Total Loans | 3,494 | 3,503 | |
Pass | All other | |||
Loans by risk rating | |||
Total Loans | 13,018 | 13,017 | |
Special Mention | |||
Loans by risk rating | |||
Total Loans | 26,473 | 28,329 | |
Special Mention | Commercial | |||
Loans by risk rating | |||
Total Loans | 6,309 | 3,948 | |
Special Mention | Real estate - commercial | Owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 3,123 | 253 | |
Special Mention | Real estate - commercial | Owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 6,894 | 11,607 | |
Special Mention | Real estate - commercial | Non-owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 2,872 | 3,235 | |
Special Mention | Real estate - commercial | Non-owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 4,047 | 8,097 | |
Special Mention | Real estate - commercial | Retail properties | |||
Loans by risk rating | |||
Total Loans | 2,511 | 1,001 | |
Special Mention | Real estate - commercial | Farm | |||
Loans by risk rating | |||
Total Loans | 529 | ||
Special Mention | Real estate - residential | Revolving and junior liens | |||
Loans by risk rating | |||
Total Loans | 188 | 188 | |
Substandard | |||
Loans by risk rating | |||
Total Loans | 36,421 | 40,938 | |
Substandard | Commercial | |||
Loans by risk rating | |||
Total Loans | 4,936 | 4,403 | |
Substandard | Real estate - commercial | Owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 6,952 | 7,476 | |
Substandard | Real estate - commercial | Owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 3,423 | 3,483 | |
Substandard | Real estate - commercial | Non-owner occupied general purpose | |||
Loans by risk rating | |||
Total Loans | 2,630 | 6,788 | |
Substandard | Real estate - commercial | Non-owner occupied special purpose | |||
Loans by risk rating | |||
Total Loans | 1,198 | 1,423 | |
Substandard | Real estate - commercial | Farm | |||
Loans by risk rating | |||
Total Loans | 1,370 | ||
Substandard | Real estate - construction | Commercial speculative | |||
Loans by risk rating | |||
Total Loans | 3,472 | 3,484 | |
Substandard | Real estate - construction | All other | |||
Loans by risk rating | |||
Total Loans | 501 | 561 | |
Substandard | Real estate - residential | Investor | |||
Loans by risk rating | |||
Total Loans | 1,175 | 2,263 | |
Substandard | Real estate - residential | Owner occupied | |||
Loans by risk rating | |||
Total Loans | 7,529 | 7,343 | |
Substandard | Real estate - residential | Revolving and junior liens | |||
Loans by risk rating | |||
Total Loans | 3,234 | 3,713 | |
Substandard | Consumer | |||
Loans by risk rating | |||
Total Loans | $1 | $1 |
Loans_Repossessed_Assets_Detai
Loans - Repossessed Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Real estate - residential | ||
Repossessed and foreclosed assets | ||
Real estate assets in process of foreclosure | $3,000,000 | $3,500,000 |
Other Assets | ||
Repossessed and foreclosed assets | ||
Repossessed assets | $0 | $0 |
Loans_Impaired_Loans_Recorded_
Loans - Impaired Loans - Recorded Investment, Unpaid Principal Balance and Related Allowance (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Recorded Investment | ||
With no related allowance recorded | $25,016 | $35,011 |
With an allowance recorded | 6,910 | 875 |
Total impaired loans | 31,926 | 35,886 |
Unpaid Principal Balance | ||
With no related allowance recorded | 30,106 | 41,003 |
With an allowance recorded | 8,193 | 997 |
Total impaired loans | 38,299 | 42,000 |
Related Allowance | ||
With an allowance recorded | 1,784 | 278 |
Commercial | ||
Recorded Investment | ||
With no related allowance recorded | 1,897 | 1,500 |
Unpaid Principal Balance | ||
With no related allowance recorded | 2,571 | 2,114 |
Real estate - commercial | Owner occupied general purpose | ||
Recorded Investment | ||
With no related allowance recorded | 2,593 | 7,125 |
With an allowance recorded | 4,011 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 3,279 | 7,870 |
With an allowance recorded | 4,657 | |
Related Allowance | ||
With an allowance recorded | 1,304 | |
Real estate - commercial | Owner occupied special purpose | ||
Recorded Investment | ||
With no related allowance recorded | 1,154 | 1,798 |
With an allowance recorded | 609 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,240 | 1,941 |
With an allowance recorded | 687 | |
Related Allowance | ||
With an allowance recorded | 113 | |
Real estate - commercial | Non-owner occupied general purpose | ||
Recorded Investment | ||
With no related allowance recorded | 750 | 4,831 |
With an allowance recorded | 76 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,160 | 5,653 |
With an allowance recorded | 76 | |
Related Allowance | ||
With an allowance recorded | 21 | |
Real estate - commercial | Non-owner occupied special purpose | ||
Recorded Investment | ||
With no related allowance recorded | 1,423 | |
With an allowance recorded | 1,380 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,930 | |
With an allowance recorded | 1,806 | |
Related Allowance | ||
With an allowance recorded | 163 | |
Real estate - commercial | Farm | ||
Recorded Investment | ||
With no related allowance recorded | 1,370 | |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,370 | |
Real estate - construction | Homebuilder | ||
Recorded Investment | ||
With no related allowance recorded | 1,320 | 1,791 |
Unpaid Principal Balance | ||
With no related allowance recorded | 1,320 | 1,791 |
Real estate - construction | All other | ||
Recorded Investment | ||
With no related allowance recorded | 240 | 291 |
With an allowance recorded | 261 | 270 |
Unpaid Principal Balance | ||
With no related allowance recorded | 324 | 323 |
With an allowance recorded | 300 | 306 |
Related Allowance | ||
With an allowance recorded | 60 | 98 |
Real estate - residential | Investor | ||
Recorded Investment | ||
With no related allowance recorded | 1,760 | 2,595 |
With an allowance recorded | 131 | 135 |
Unpaid Principal Balance | ||
With no related allowance recorded | 2,101 | 3,024 |
With an allowance recorded | 144 | 145 |
Related Allowance | ||
With an allowance recorded | 21 | 24 |
Real estate - residential | Owner occupied | ||
Recorded Investment | ||
With no related allowance recorded | 11,602 | 11,419 |
With an allowance recorded | 152 | 23 |
Unpaid Principal Balance | ||
With no related allowance recorded | 13,113 | 12,816 |
With an allowance recorded | 194 | 65 |
Related Allowance | ||
With an allowance recorded | 30 | 38 |
Real estate - residential | Revolving and junior liens | ||
Recorded Investment | ||
With no related allowance recorded | 2,330 | 2,238 |
With an allowance recorded | 366 | 371 |
Unpaid Principal Balance | ||
With no related allowance recorded | 3,628 | 3,541 |
With an allowance recorded | 405 | 405 |
Related Allowance | ||
With an allowance recorded | $93 | $97 |
Loans_Impaired_Loans_Average_R
Loans - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Average Recorded Investment | ||
With no related allowance recorded | $30,014 | $37,289 |
With an allowance recorded | 3,892 | 8,095 |
Total impaired loans | 33,906 | 45,384 |
Interest Income Recognized | ||
With no related allowance recorded | 97 | 93 |
With an allowance recorded | 6 | 2 |
Total impaired loans | 103 | 95 |
Commercial | ||
Average Recorded Investment | ||
With no related allowance recorded | 1,699 | 26 |
Real estate - commercial | Owner occupied general purpose | ||
Average Recorded Investment | ||
With no related allowance recorded | 4,859 | 2,567 |
With an allowance recorded | 2,006 | 926 |
Interest Income Recognized | ||
With no related allowance recorded | 15 | 1 |
Real estate - commercial | Owner occupied special purpose | ||
Average Recorded Investment | ||
With no related allowance recorded | 1,476 | 4,120 |
With an allowance recorded | 304 | 3,225 |
Interest Income Recognized | ||
With no related allowance recorded | 6 | |
Real estate - commercial | Non-owner occupied general purpose | ||
Average Recorded Investment | ||
With no related allowance recorded | 2,790 | 6,886 |
With an allowance recorded | 38 | 469 |
Interest Income Recognized | ||
With no related allowance recorded | 15 | |
Real estate - commercial | Non-owner occupied special purpose | ||
Average Recorded Investment | ||
With no related allowance recorded | 712 | 652 |
With an allowance recorded | 690 | |
Interest Income Recognized | ||
With an allowance recorded | 4 | |
Real estate - commercial | Retail properties | ||
Average Recorded Investment | ||
With no related allowance recorded | 3,107 | |
Real estate - commercial | Farm | ||
Average Recorded Investment | ||
With no related allowance recorded | 685 | |
Real estate - construction | Homebuilder | ||
Average Recorded Investment | ||
With no related allowance recorded | 1,555 | 1,955 |
With an allowance recorded | 84 | |
Interest Income Recognized | ||
With no related allowance recorded | 21 | 28 |
Real estate - construction | Land | ||
Average Recorded Investment | ||
With no related allowance recorded | 209 | |
Real estate - construction | Commercial speculative | ||
Average Recorded Investment | ||
With no related allowance recorded | 1,325 | |
With an allowance recorded | 588 | |
Real estate - construction | All other | ||
Average Recorded Investment | ||
With no related allowance recorded | 266 | 150 |
With an allowance recorded | 266 | 402 |
Real estate - residential | Investor | ||
Average Recorded Investment | ||
With no related allowance recorded | 2,177 | 4,673 |
With an allowance recorded | 133 | 514 |
Interest Income Recognized | ||
With no related allowance recorded | 10 | 1 |
Real estate - residential | Owner occupied | ||
Average Recorded Investment | ||
With no related allowance recorded | 11,511 | 9,589 |
With an allowance recorded | 87 | 890 |
Interest Income Recognized | ||
With no related allowance recorded | 43 | 47 |
With an allowance recorded | 1 | 2 |
Real estate - residential | Revolving and junior liens | ||
Average Recorded Investment | ||
With no related allowance recorded | 2,284 | 2,030 |
With an allowance recorded | 368 | 997 |
Interest Income Recognized | ||
With no related allowance recorded | 2 | 1 |
With an allowance recorded | $1 |
Loans_TDR_Details
Loans - TDR (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
contract | contract | |
Troubled debt restructurings - modified during the period | ||
# of contracts | 2 | 4 |
Pre-modification recorded investment | $447 | $1,659 |
Post-modification recorded investment | 338 | 1,394 |
TDR's defaulted | ||
# of contracts | 0 | |
Real estate - commercial | Other | ||
Troubled debt restructurings - modified during the period | ||
# of contracts | 2 | |
Pre-modification recorded investment | 1,320 | |
Post-modification recorded investment | 1,191 | |
Real estate - commercial | Bifurcate | ||
Troubled debt restructurings - modified during the period | ||
# of contracts | 1 | |
Pre-modification recorded investment | 300 | |
Post-modification recorded investment | 182 | |
Real estate - residential | Owner occupied | Other | ||
Troubled debt restructurings - modified during the period | ||
# of contracts | 1 | |
Pre-modification recorded investment | 147 | |
Post-modification recorded investment | 156 | |
Real estate - residential | Owner occupied | HAMP | ||
Troubled debt restructurings - modified during the period | ||
# of contracts | 1 | |
Pre-modification recorded investment | 102 | |
Post-modification recorded investment | 76 | |
Real estate - residential | Owner occupied | Deferral | ||
Troubled debt restructurings - modified during the period | ||
# of contracts | 1 | |
Pre-modification recorded investment | 237 | |
Post-modification recorded investment | $127 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Allowance for loan losses: | |||
Beginning Balance | $21,637 | $27,281 | |
Charge-offs | 1,264 | 1,360 | |
Recoveries | 808 | 555 | |
(Release) provision | -1,000 | ||
Ending Balance | 21,181 | 25,476 | |
Ending balance: Individually evaluated for impairment | 1,784 | 1,247 | |
Ending balance: Collectively evaluated for impairment | 19,397 | 24,229 | |
Loans: | |||
Ending balance | 1,151,069 | 1,111,237 | 1,159,332 |
Ending balance: Individually evaluated for impairment | 31,926 | 44,198 | |
Ending balance: Collectively evaluated for impairment | 1,119,143 | 1,067,039 | |
Commercial | |||
Allowance for loan losses: | |||
Beginning Balance | 1,644 | 2,250 | |
Charge-offs | 32 | 4 | |
Recoveries | 141 | 15 | |
(Release) provision | -241 | 65 | |
Ending Balance | 1,512 | 2,326 | |
Ending balance: Collectively evaluated for impairment | 1,512 | 2,326 | |
Loans: | |||
Ending balance | 122,892 | 107,548 | 127,196 |
Ending balance: Individually evaluated for impairment | 1,897 | 24 | |
Ending balance: Collectively evaluated for impairment | 120,995 | 107,524 | |
Real estate - commercial | |||
Allowance for loan losses: | |||
Beginning Balance | 12,577 | 16,763 | |
Charge-offs | 495 | 329 | |
Recoveries | 330 | 141 | |
(Release) provision | 1,621 | -2,509 | |
Ending Balance | 14,033 | 14,066 | |
Ending balance: Individually evaluated for impairment | 1,580 | 673 | |
Ending balance: Collectively evaluated for impairment | 12,453 | 13,393 | |
Loans: | |||
Ending balance | 608,267 | 579,297 | |
Ending balance: Individually evaluated for impairment | 11,867 | 22,790 | |
Ending balance: Collectively evaluated for impairment | 596,400 | 556,507 | |
Real estate - commercial | Substandard | |||
Allowance for loan losses: | |||
Ending Balance | 1,100 | 412 | |
Loans: | |||
Ending balance | 5,400 | 5,600 | |
Real estate - construction | |||
Allowance for loan losses: | |||
Beginning Balance | 1,475 | 1,980 | |
Charge-offs | 1 | 68 | |
Recoveries | 5 | 37 | |
(Release) provision | -207 | 49 | |
Ending Balance | 1,272 | 1,998 | |
Ending balance: Individually evaluated for impairment | 60 | 194 | |
Ending balance: Collectively evaluated for impairment | 1,212 | 1,804 | |
Loans: | |||
Ending balance | 39,430 | 32,016 | |
Ending balance: Individually evaluated for impairment | 1,821 | 4,679 | |
Ending balance: Collectively evaluated for impairment | 37,609 | 27,337 | |
Real estate - residential | |||
Allowance for loan losses: | |||
Beginning Balance | 1,981 | 2,837 | |
Charge-offs | 618 | 849 | |
Recoveries | 224 | 250 | |
(Release) provision | 330 | 30 | |
Ending Balance | 1,917 | 2,268 | |
Ending balance: Individually evaluated for impairment | 144 | 380 | |
Ending balance: Collectively evaluated for impairment | 1,773 | 1,888 | |
Loans: | |||
Ending balance | 363,967 | 375,781 | |
Ending balance: Individually evaluated for impairment | 16,341 | 16,705 | |
Ending balance: Collectively evaluated for impairment | 347,626 | 359,076 | |
Consumer | |||
Allowance for loan losses: | |||
Beginning Balance | 1,454 | 1,439 | |
Charge-offs | 118 | 110 | |
Recoveries | 108 | 112 | |
(Release) provision | -27 | 54 | |
Ending Balance | 1,417 | 1,495 | |
Ending balance: Collectively evaluated for impairment | 1,417 | 1,495 | |
Loans: | |||
Ending balance | 3,495 | 2,837 | 3,504 |
Ending balance: Collectively evaluated for impairment | 3,495 | 2,837 | |
All other | |||
Allowance for loan losses: | |||
Beginning Balance | 2,506 | 2,012 | |
(Release) provision | -1,476 | 1,311 | |
Ending Balance | 1,030 | 3,323 | |
Ending balance: Collectively evaluated for impairment | 1,030 | 3,323 | |
Loans: | |||
Ending balance | 13,018 | 13,758 | 13,017 |
Ending balance: Collectively evaluated for impairment | $13,018 | $13,758 |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ||
Balance at beginning of period | $31,982 | $41,537 |
Property additions | 6,108 | 4,688 |
Less: Property disposals, net of gains/losses | 2,020 | 5,569 |
Less: Period valuation adjustments | 609 | 436 |
Balance at end of period | 35,461 | 40,220 |
Activity in the valuation allowance | ||
Balance at beginning of period | 19,229 | 22,284 |
Provision for unrealized losses | 609 | 436 |
Reductions taken on sales | -382 | -2,647 |
Other adjustments | -589 | |
Balance at end of period | 19,456 | 19,484 |
Expenses related to foreclosed assets, net of lease revenue | ||
Gain on sales, net | -95 | -386 |
Provision for unrealized losses | 609 | 436 |
Operating expenses | 1,001 | 1,237 |
Less: Lease revenue | 163 | 279 |
Expenses related to OREO, net of lease revenue | $1,352 | $1,008 |
Deposits_Components_and_Maturi
Deposits - Components and Maturities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deposits | ||
Noninterest bearing demand | $431,843 | $400,447 |
Savings | 252,578 | 239,845 |
NOW accounts | 344,737 | 328,641 |
Money market accounts | 299,303 | 296,617 |
Certificates of deposit of less than $100,000 | 247,132 | 251,108 |
Certificates of deposit of $100,000 up to $250,000 | 113,160 | 112,515 |
Certificates of deposit of $250,000 or more | 56,025 | 55,882 |
Total deposits | $1,744,778 | $1,685,055 |
Borrowings_Summary_Details
Borrowings - Summary (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Borrowings | ||
Total borrowings | $160,391,000 | $169,914,000 |
Securities sold under repurchase agreements | ||
Borrowings | ||
Total borrowings | 26,513,000 | 21,036,000 |
FHLBC advances | ||
Borrowings | ||
Total borrowings | 30,000,000 | 45,000,000 |
Junior subordinated debentures | ||
Borrowings | ||
Total borrowings | 58,378,000 | 58,378,000 |
Subordinated debt | ||
Borrowings | ||
Total borrowings | 45,000,000 | 45,000,000 |
Notes payable and other borrowings | ||
Borrowings | ||
Total borrowings | $500,000 | $500,000 |
Borrowings_Additional_informat
Borrowings - Additional information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2008 | |
Borrowings | |||
Bank owned FHLBC stock | 4,300,000 | $4,300,000 | |
Total borrowings | 160,391,000 | 169,914,000 | |
Securities sold under repurchase agreements | |||
Borrowings | |||
Carrying amount of securities secured | 26,500,000 | 21,000,000 | |
Fair value of the pledged collateral | 43,400,000 | 43,400,000 | |
Number of customers having secured balances exceeding specified percentage of stockholders equity | 0 | ||
Total borrowings | 26,513,000 | 21,036,000 | |
Securities sold under repurchase agreements | Minimum | |||
Borrowings | |||
Maturity | 1 day | ||
Threshold percentage of stockholders' equity | 10.00% | ||
Securities sold under repurchase agreements | Maximum | |||
Borrowings | |||
Maturity | 90 days | ||
FHLBC advances | |||
Borrowings | |||
Borrowings at FHLBC as percentage of total assets | 35.00% | ||
Borrowings at FHLBC as percentage of book value of certain mortgage loans | 60.00% | ||
FHLBC advance amount | 30,000,000 | 45,000,000 | |
Bank owned FHLBC stock | 4,300,000 | 4,300,000 | |
Fair value of securities collateralized | 74,100,000 | ||
Principal balance of loans collateralized | 46,800,000 | ||
Combined collateral value | 143,400,000 | ||
Amount available for additional borrowings | 112,100,000 | ||
Total borrowings | 30,000,000 | 45,000,000 | |
Subordinated debt | |||
Borrowings | |||
Face amount | 45,000,000 | ||
Total borrowings | 45,000,000 | 45,000,000 | |
Subordinated debt | LIBOR | |||
Borrowings | |||
Variable interest rate base | three-month LIBOR | ||
Basis points added to reference rate (as a percent) | 1.50% | ||
Notes payable and other borrowings | |||
Borrowings | |||
Total borrowings | 500,000 | 500,000 | |
Bank of America credit facility | |||
Borrowings | |||
Maximum borrowing capacity | 45,500,000 | ||
Senior debt facility | |||
Borrowings | |||
Maximum borrowing capacity | 30,500,000 | ||
Senior debt facility | LIBOR | |||
Borrowings | |||
Variable interest rate base | three-month LIBOR | ||
Basis points added to reference rate (as a percent) | 0.90% | ||
Senior debt facility | Prime rate | |||
Borrowings | |||
Variable interest rate base | prime | ||
Term debt | |||
Borrowings | |||
Maximum borrowing capacity | 500,000 | ||
Total borrowings | 500,000 | ||
Increase in basis points on non compliance of covenant (as a percent) | 2.00% | ||
Junior subordinated debentures | |||
Borrowings | |||
Total borrowings | 58,378,000 | $58,378,000 |
Junior_Subordinated_Debentures1
Junior Subordinated Debentures - Issuance (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | ||
Jul. 31, 2003 | Jun. 30, 2003 | Mar. 31, 2015 | Apr. 30, 2007 | Dec. 31, 2014 | |
Junior subordinated debentures | |||||
Junior subordinated debentures | 58,378,000 | $58,378,000 | |||
Old Second Capital Trust I | |||||
Junior subordinated debentures | |||||
Proceeds from sale of cumulative trust preferred securities | 4,100,000 | 27,500,000 | |||
Maturity Period | 30 years | ||||
Cash distribution rate of trust preferred securities (as a percent) | 7.80% | ||||
Old Second Capital Trust II | |||||
Junior subordinated debentures | |||||
Proceeds from sale of cumulative trust preferred securities | 25,000,000 | ||||
Maturity Period | 30 years | ||||
Cash distribution fixed rate of trust preferred securities (as a percent) | 6.77% | ||||
Basis points added to cash distribution floating rate base (as a percent) | 1.50% | ||||
Cash distribution, floating rate base | three-month LIBOR | ||||
Junior subordinated debentures | Old Second Capital Trust I | |||||
Junior subordinated debentures | |||||
Junior subordinated debentures | 32,600,000 | ||||
Junior subordinated debentures | Old Second Capital Trust II | |||||
Junior subordinated debentures | |||||
Junior subordinated debentures | 25,800,000 |
Equity_Compensation_Plans_Opti
Equity Compensation Plans - Options (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity Compensation Plans | ||
Total compensation cost | $177,000 | |
2014 Plan | ||
Equity Compensation Plans | ||
Number of shares authorized | 375,000 | |
Number of shares issuable | 122,500 | |
Stock options | ||
Equity Compensation Plans | ||
Granted (in shares) | 0 | 0 |
Term of stock options granted | 10 years | |
Exercised (in shares) | 0 | 0 |
Total unrecognized compensation cost | $0 | |
Shares | ||
Beginning outstanding (in shares) | 229,000 | |
Ending outstanding (in shares) | 229,000 | |
Exercisable at end of period (in shares) | 229,000 | |
Weighted Average Exercise Price | ||
Beginning outstanding (in dollars per share) | $28.28 | |
Ending outstanding (in dollars per share) | $28.28 | |
Exercisable at end of period (in dollars per share) | $28.28 | |
Weighted Average Remaining Contractual Term (years) | ||
Ending outstanding (in years) | 1 year 10 months 24 days | |
Exercisable at end of period | 1 year 10 months 24 days |
Equity_Compensation_Plans_Rest
Equity Compensation Plans - Restricted Stock and RSUs (Details) (Restricted stock and restricted stock units, USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Restricted stock and restricted stock units | ||
Equity Compensation Plans | ||
Vesting period | 3 years | |
Changes in unvested awards | ||
Nonvested at the beginning of the period (in shares) | 325,000 | |
Granted (in shares) | 101,500 | 0 |
Vested (in shares) | -50,000 | |
Forfeited (in shares) | -13,500 | |
Nonvested at the end of the period (in shares) | 363,000 | |
Weighted Average Grant Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $4.15 | |
Granted (in dollars per share) | $5.38 | |
Vested (in dollars per share) | $3.90 | |
Forfeited (in dollars per share) | $4.25 | |
Nonvested at the end of the period (in dollars per share) | $4.53 | |
Additional information | ||
Total unrecognized compensation cost of restricted awards | $648,000 | $303,000 |
Expected weighted-average period for recognition of unrecognized compensation | 2 years 3 months 11 days | 1 year 11 months 27 days |
Earnings_Per_Share_Reconciliat
Earnings Per Share - Reconciliation (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic earnings per share: | ||
Weighted-average common shares outstanding | 29,470,297 | 13,921,023 |
Weighted-average common shares less stock based awards | 29,470,297 | 13,912,523 |
Weighted-average common shares stock based awards | 169,111 | |
Net income | $3,499 | $2,202 |
Preferred stock dividends and accretion | 824 | 1,572 |
Net income available to common stockholders | 2,675 | 630 |
Basic earnings per share common undistributed earnings (loss) (in dollars per share) | $0.04 | |
Basic earnings per share (in dollars per share) | $0.09 | $0.04 |
Diluted earnings per share: | ||
Weighted-average common shares outstanding | 29,470,297 | 13,921,023 |
Diluted average common shares outstanding | 29,673,880 | 14,081,634 |
Net earnings available to common stockholders | $2,675 | $630 |
Diluted earnings per share (in dollars per share) | $0.09 | $0.04 |
Antidilutive options and warrants | ||
Diluted earnings per share: | ||
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation (in shares) | 1,044,339 | 1,140,839 |
Warrants | ||
Diluted earnings per share: | ||
Number of antidilutive options and warrants excluded from the diluted earnings per share calculation (in shares) | 815,339 | 815,339 |
Restricted stock and restricted stock units | ||
Diluted earnings per share: | ||
Dilutive effect of nonvested restricted awards (in shares) | 203,583 | 160,611 |
Earnings_Per_Share_Preferred_S
Earnings Per Share - Preferred Stock (Details) (USD $) | 1 Months Ended | 0 Months Ended | 3 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Apr. 30, 2014 | Dec. 30, 2014 | Apr. 28, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Redemption of stock | ||||||
Net proceeds from sale of common stock | $64 | |||||
Preferred stock, Shares outstanding | 31,553 | 47,331 | ||||
Series B Stock | ||||||
Redemption of stock | ||||||
Shares redeemed (in shares) | 25,669 | 15,778 | 25,669 | |||
Repurchase price percentage of liquidation value (as a percent) | 94.75% | 94.75% | ||||
Shares to be redeemed, percent of issued and outstanding | 33.33% | 33.33% | ||||
Preferred Stock, Redemption Price Per Share | $1,000 | |||||
Preferred stock, Shares outstanding | 47,331 | 31,553 | 47,331 | |||
Common | ||||||
Redemption of stock | ||||||
Shares issued | 15,525,000 | |||||
Net proceeds from sale of common stock | $64 |
Regulatory_Capital_Matters_Det
Regulatory & Capital Matters (Details) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 9.82% | 9.93% | |
Total capital ratio (as a percent) | 17.30% | 17.68% | |
Proceeds from issuance of common stock | $64 | ||
Old Second National Bank | |||
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio (as a percent) | 12.15% | 12.02% | |
Tier One leverage ratio, basis point increase (as a percent) | 0.13% | ||
Total capital ratio (as a percent) | 18.18% | 18.73% | |
Risk-based capital ratio, basis point increase (as a percent) | 0.55% | ||
Old Second National Bank | Minimum | |||
Regulatory & Capital Matters | |||
Tier 1 capital leverage ratio, board-designated threshold | 8.00% | ||
Total Capital Ratio, board-designated threshold (as a percent) | 12.00% |
Regulatory_Capital_Matters_Cap
Regulatory & Capital Matters - Capital Levels and Industry Defined Regulatory Minimums (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Common equity tier 1 capital to risk weighted assets | ||
Actual | $136,976 | |
Minimum Required for Capital Adequacy Purposes | 65,158 | |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 9.46% | |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.50% | |
Total capital to risk weighted assets, Amount | ||
Actual at period end | 250,416 | 240,566 |
Minimum Required for Capital Adequacy Purposes | 115,799 | 108,853 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 17.30% | 17.68% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 8.00% | 8.00% |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | 197,987 | 196,499 |
Minimum Required for Capital Adequacy Purposes | 86,836 | 54,432 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 13.68% | 14.44% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 6.00% | 4.00% |
Tier 1 capital to average assets, Amount | ||
Actual | 197,987 | 196,499 |
Minimum Required for Capital Adequacy Purposes | 80,646 | 79,154 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 9.82% | 9.93% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.00% | 4.00% |
Old Second National Bank | ||
Common equity tier 1 capital to risk weighted assets | ||
Actual | 245,076 | |
Minimum Required for Capital Adequacy Purposes | 65,218 | |
Minimum Required to Be Well Capitalized | 94,204 | |
Common equity tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 16.91% | |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.50% | |
Minimum Required to Be Well Capitalized (as a percent) | 6.50% | |
Total capital to risk weighted assets, Amount | ||
Actual at period end | 263,398 | 254,897 |
Minimum Required for Capital Adequacy Purposes | 115,907 | 108,872 |
Minimum Required to Be Well Capitalized | 144,883 | 136,090 |
Total capital to risk weighted assets, Ratio | ||
Risk-based capital ratio (as a percent) | 18.18% | 18.73% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 8.00% | 8.00% |
Minimum Required to Be Well Capitalized (as a percent) | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets, Amount | ||
Actual | 245,076 | 237,828 |
Minimum Required for Capital Adequacy Purposes | 86,958 | 54,454 |
Minimum Required to Be Well Capitalized | 115,944 | 81,681 |
Tier 1 capital to risk weighted assets, Ratio | ||
Actual (as a percent) | 16.91% | 17.47% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 6.00% | 4.00% |
Minimum Required to Be Well Capitalized (as a percent) | 8.00% | 6.00% |
Tier 1 capital to average assets, Amount | ||
Actual | 245,076 | 237,828 |
Minimum Required for Capital Adequacy Purposes | 80,683 | 79,144 |
Minimum Required to Be Well Capitalized | $100,854 | $98,930 |
Tier 1 capital to average assets, Ratio | ||
Tier 1 capital leverage ratio (as a percent) | 12.15% | 12.02% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.00% | 4.00% |
Minimum Required to Be Well Capitalized (as a percent) | 5.00% | 5.00% |
Regulatory_Capital_Matters_Deb
Regulatory & Capital Matters - Debt and Regulatory Capital (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Other regulatory capital information | ||
Subordinated debt | $45,000,000 | $45,000,000 |
Bank of America credit facility | ||
Other regulatory capital information | ||
Subordinated debt | 45,000,000 | |
Debt obligation as a percent of Tier 2 regulatory capital | 60.00% | |
Junior subordinated debentures | ||
Other regulatory capital information | ||
Trust preferred proceeds qualified as Tier 1 regulatory capital | 49,500,000 | 56,600,000 |
Trust preferred proceeds qualified as Tier 2 regulatory capital | $7,100,000 |
Regulatory_Capital_Matters_Div
Regulatory & Capital Matters - Dividend Restrictions and Deferrals (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||
Feb. 15, 2015 | Dec. 30, 2014 | 15-May-14 | Apr. 28, 2014 | Apr. 15, 2014 | 31-May-14 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 30, 2014 | Apr. 28, 2014 | |
Dividend Restrictions and Deferrals | |||||||||||
Number of previous years retained profit considered for dividend payment | 2 years | ||||||||||
Tier 1 Common Equity, minimum percentage required, 2016 | 0.63% | ||||||||||
Tier 1 Common Equity, minimum percentage required, 2017 | 1.25% | ||||||||||
Tier 1 Common Equity, minimum percentage required, 2018 | 1.88% | ||||||||||
Tier 1 Common Equity, minimum percentage required, 2019 and thereafter | 2.50% | ||||||||||
Junior subordinated debenture | 58,378,000 | 58,378,000 | |||||||||
Payments to indentured trustees | 19,700,000 | ||||||||||
Dividends paid | 1,006,000 | ||||||||||
Preferred stock, Liquidation value (in dollars per share) | 1,000 | 1,000 | |||||||||
Preferred Stock, Liquidation Preference Per Share | 1,000 | 1,000 | |||||||||
Preferred stock, Shares outstanding | 31,553 | 47,331 | |||||||||
Series B Stock | |||||||||||
Dividend Restrictions and Deferrals | |||||||||||
Preferred stock dividend amount | 15,800,000 | ||||||||||
Dividends paid | 710,000 | 10,300,000 | 10,300,000 | ||||||||
Shares redeemed (in shares) | 25,669 | 15,778 | 25,669 | ||||||||
Repurchase price percentage of liquidation value (as a percent) | 94.75% | 94.75% | |||||||||
Preferred stock, Liquidation value (in dollars per share) | $947.50 | $947.50 | |||||||||
Preferred Stock, Liquidation Preference Per Share | $947.50 | $947.50 | |||||||||
Payments for repurchase of preferred stock | 24,300,000 | 24,300,000 | |||||||||
Benefit from reversal of dividends previously accrued or accumulated and waived by holders upon redemption | 5,400,000 | ||||||||||
Preferred stock, Shares outstanding | 47,331 | 31,553 | 47,331 | 47,331 | |||||||
Shares to be redeemed, percent of issued and outstanding | 33.33% | 33.33% | |||||||||
Series B Stock | Large private investor | |||||||||||
Dividend Restrictions and Deferrals | |||||||||||
Payments for repurchase of preferred stock | 22,900,000 | ||||||||||
Series B Stock | Directors | |||||||||||
Dividend Restrictions and Deferrals | |||||||||||
Payments for repurchase of preferred stock | 1,400,000 | ||||||||||
Junior subordinated debentures | |||||||||||
Dividend Restrictions and Deferrals | |||||||||||
Junior subordinated debenture | 58,400,000 | ||||||||||
Number of statutory business trusts that hold junior subordinated debentures | 2 | ||||||||||
Junior subordinated debentures | Maximum | |||||||||||
Dividend Restrictions and Deferrals | |||||||||||
Number of quarterly periods for deferral of interest | 20 |
Fair_Value_Measurements_Recurr
Fair Value Measurements - Recurring (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Securities available-for-sale | $399,252 | $385,486 |
Mortgage servicing rights | 5,254 | 5,462 |
U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 1,525 | 1,527 |
U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 1,611 | 1,624 |
States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 33,746 | 22,018 |
Corporate bonds | ||
Assets: | ||
Securities available-for-sale | 33,004 | 30,985 |
Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 68,093 | 63,627 |
Asset-backed securities | ||
Assets: | ||
Securities available-for-sale | 168,256 | 173,496 |
Collateralized loan obligations | ||
Assets: | ||
Securities available-for-sale | 93,017 | 92,209 |
Level 1 | ||
Assets: | ||
Securities available-for-sale | 1,525 | 1,527 |
Level 2 | ||
Assets: | ||
Securities available-for-sale | 397,609 | 330,900 |
Loans held-for-sale | 7,038 | 5,072 |
Level 3 | ||
Assets: | ||
Securities available-for-sale | 118 | 53,059 |
Recurring | Level 1 | ||
Assets: | ||
Total financial assets | 1,525 | 1,527 |
Recurring | Level 1 | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 1,525 | 1,527 |
Recurring | Level 2 | ||
Assets: | ||
Loans held-for-sale | 7,038 | 5,072 |
Total financial assets | 405,009 | 336,145 |
Liabilities: | ||
Total | 66 | 30 |
Recurring | Level 2 | Interest rate swap agreements net of swap credit valuation | ||
Assets: | ||
Other assets | 66 | 30 |
Liabilities: | ||
Other liabilities | 66 | 30 |
Recurring | Level 2 | Forward MBS contracts and forward loan contracts | ||
Assets: | ||
Other assets | 296 | 143 |
Recurring | Level 2 | U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 1,611 | 1,624 |
Recurring | Level 2 | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 33,628 | 21,900 |
Recurring | Level 2 | Corporate bonds | ||
Assets: | ||
Securities available-for-sale | 33,004 | 30,985 |
Recurring | Level 2 | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 68,093 | 63,627 |
Recurring | Level 2 | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale | 168,256 | 120,555 |
Recurring | Level 2 | Collateralized loan obligations | ||
Assets: | ||
Securities available-for-sale | 93,017 | 92,209 |
Recurring | Level 3 | ||
Assets: | ||
Mortgage servicing rights | 5,254 | 5,462 |
Total financial assets | 5,372 | 58,521 |
Recurring | Level 3 | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 118 | 118 |
Recurring | Level 3 | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale | 52,941 | |
Recurring | Total | ||
Assets: | ||
Loans held-for-sale | 7,038 | 5,072 |
Mortgage servicing rights | 5,254 | 5,462 |
Total financial assets | 411,906 | 396,193 |
Liabilities: | ||
Total | 66 | 30 |
Recurring | Total | Interest rate swap agreements net of swap credit valuation | ||
Assets: | ||
Other assets | 66 | 30 |
Liabilities: | ||
Other liabilities | 66 | 30 |
Recurring | Total | Forward MBS contracts and forward loan contracts | ||
Assets: | ||
Other assets | 296 | 143 |
Recurring | Total | U.S. Treasury | ||
Assets: | ||
Securities available-for-sale | 1,525 | 1,527 |
Recurring | Total | U.S. government agencies | ||
Assets: | ||
Securities available-for-sale | 1,611 | 1,624 |
Recurring | Total | States and political subdivisions | ||
Assets: | ||
Securities available-for-sale | 33,746 | 22,018 |
Recurring | Total | Corporate bonds | ||
Assets: | ||
Securities available-for-sale | 33,004 | 30,985 |
Recurring | Total | Collateralized mortgage obligations | ||
Assets: | ||
Securities available-for-sale | 68,093 | 63,627 |
Recurring | Total | Asset-backed securities | ||
Assets: | ||
Securities available-for-sale | 168,256 | 173,496 |
Recurring | Total | Collateralized loan obligations | ||
Assets: | ||
Securities available-for-sale | $93,017 | $92,209 |
Fair_Value_Measurements_Change
Fair Value Measurements - Changes in Level 3 (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Interest rate swap agreements net of swap credit valuation | ||||
Changes in Level 3 (liabilities) | ||||
Beginning balance | ($6) | |||
Included in earnings (or changes in net assets) | 5 | |||
Ending balance | -1 | |||
Asset-backed securities | ||||
Changes in Level 3 | ||||
Beginning balance | 154,137 | 52,941 | ||
Total gains or losses | ||||
Included in earnings (or changes in net assets) | 226 | -28 | ||
Included in other comprehensive income | -315 | -541 | ||
Purchases, issuances, sales, and settlements | ||||
Purchases | 4,290 | |||
Sales | -27,455 | |||
Ending balance | 158,338 | |||
Transfers out of Level 3 | -24,917 | |||
States and political subdivisions | ||||
Changes in Level 3 | ||||
Beginning balance | 118 | 125 | ||
Purchases, issuances, sales, and settlements | ||||
Ending balance | 125 | 118 | 118 | 125 |
Mortgage servicing rights | ||||
Changes in Level 3 | ||||
Beginning balance | 5,807 | 5,462 | ||
Total gains or losses | ||||
Included in earnings (or changes in net assets) | 111 | -454 | ||
Purchases, issuances, sales, and settlements | ||||
Issuances | -304 | 401 | ||
Settlements | -155 | |||
Ending balance | $5,614 | $5,254 |
Fair_Value_Measurements_Quanti
Fair Value Measurements - Quantitative and Qualitative Information (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 5,254 | 5,462 |
Recurring | Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 5,254 | 5,462 |
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Mortgage servicing rights, fair value | 5,254 | 5,462 |
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Discount rate (as a percent) | 9.70% | 9.70% |
Prepayment speed (as a percent) | 4.80% | 5.00% |
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Discount rate (as a percent) | 15.50% | 108.20% |
Prepayment speed (as a percent) | 35.10% | 78.40% |
Recurring | Mortgage servicing rights | Discounted Cash Flow | Level 3 | Weighted Average of Inputs | ||
Quantitative information about Level 3 fair value measurements | ||
Discount rate (as a percent) | 11.90% | 10.20% |
Prepayment speed (as a percent) | 10.20% | 10.90% |
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | ||
Quantitative information about Level 3 fair value measurements | ||
Asset-backed securities | 52,941 | |
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | Minimum | ||
Quantitative information about Level 3 fair value measurements | ||
Credit risk premium (as a percent) | 0.90% | |
Liquidity Discount (as a percent) | 3.50% | |
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | Maximum | ||
Quantitative information about Level 3 fair value measurements | ||
Credit risk premium (as a percent) | 0.90% | |
Liquidity Discount (as a percent) | 3.70% | |
Recurring | Asset-backed securities | Discounted Cash Flow | Level 3 | Weighted Average of Inputs | ||
Quantitative information about Level 3 fair value measurements | ||
Credit risk premium (as a percent) | 0.90% | |
Liquidity Discount (as a percent) | 3.60% |
Fair_Value_Measurements_Nonrec
Fair Value Measurements - Nonrecurring (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Assets and liabilities measured at fair value | ||||
Valuation allowance | $1,784,000 | $278,000 | ||
Carrying value of other real estate owned | 35,461,000 | 31,982,000 | 40,220,000 | 41,537,000 |
OREO Valuation allowance | 19,456,000 | 19,229,000 | 19,484,000 | 22,284,000 |
Nonrecurring | Impaired loans | ||||
Assets and liabilities measured at fair value | ||||
Valuation allowance | 1,800,000 | 278,000 | ||
Decrease of specific allocations within the provision for loan losses | 1,500,000 | 2,100,000 | ||
Nonrecurring | Impaired loans | Carrying Amount | ||||
Assets and liabilities measured at fair value | ||||
Total | 6,600,000 | 842,000 | ||
Nonrecurring | Other real estate owned | ||||
Assets and liabilities measured at fair value | ||||
Carrying value of other real estate owned | 35,500,000 | 32,000,000 | ||
Outstanding balance | 56,800,000 | 53,000,000 | ||
OREO Valuation allowance | 19,500,000 | 19,200,000 | ||
OREO participations | 1,800,000 | 1,800,000 | ||
Nonrecurring | Level 3 | ||||
Assets and liabilities measured at fair value | ||||
Total | 40,237,000 | 32,546,000 | ||
Nonrecurring | Level 3 | Impaired loans | ||||
Assets and liabilities measured at fair value | ||||
Total | 4,776,000 | 564,000 | ||
Nonrecurring | Level 3 | Other real estate owned | ||||
Assets and liabilities measured at fair value | ||||
Total | 35,461,000 | 31,982,000 | ||
Nonrecurring | Total | ||||
Assets and liabilities measured at fair value | ||||
Total | 40,237,000 | 32,546,000 | ||
Nonrecurring | Total | Impaired loans | ||||
Assets and liabilities measured at fair value | ||||
Total | 4,776,000 | 564,000 | ||
Nonrecurring | Total | Other real estate owned | ||||
Assets and liabilities measured at fair value | ||||
Total | $35,461,000 | $31,982,000 |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Interest Rate Derivatives (Details) (Not designated, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
item | item | |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Asset Derivatives, Fair Value | $362,000 | $173,000 |
Liability Derivatives, Fair Value | 66,000 | 30,000 |
Interest rate swap agreements net of swap credit valuation | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Investment securities pledged with financial institutions, dollars | 1,300,000 | 3,000,000 |
Number of correspondent financial institutions where investment securities are pledged | 2 | 3 |
Weighted average maturity | 2 years 10 months 24 days | 2 years 8 months 12 days |
Notional or Contractual Amount | 13,123,000 | 16,334,000 |
Asset Derivatives, Fair Value | 66,000 | 30,000 |
Liability Derivatives, Fair Value | 66,000 | 30,000 |
Commitments | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Notional or Contractual Amount | 222,684,000 | 201,946,000 |
Asset Derivatives, Fair Value | 296,000 | 143,000 |
Forward MBS contracts and forward loan contracts | ||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ||
Notional or Contractual Amount | $28,654,000 | $14,000,000 |
Financial_Instruments_with_Off3
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions - Commitments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | $11,707 | $11,527 |
Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 471 | 471 |
Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 11,236 | 11,056 |
Borrower | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 11,131 | 10,955 |
Borrower | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 471 | 471 |
Borrower | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 10,660 | 10,484 |
Borrower | Financial standby | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 5,282 | 4,800 |
Borrower | Financial standby | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 55 | 55 |
Borrower | Financial standby | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 5,227 | 4,745 |
Borrower | Commercial standby | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 47 | 49 |
Borrower | Commercial standby | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 47 | 49 |
Borrower | Performance standby | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 5,802 | 6,106 |
Borrower | Performance standby | Fixed | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 416 | 416 |
Borrower | Performance standby | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 5,386 | 5,690 |
Nonborrower | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 576 | 572 |
Nonborrower | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 576 | 572 |
Nonborrower | Performance standby | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | 576 | 572 |
Nonborrower | Performance standby | Variable | ||
Company's contractual commitments due to letters of credit | ||
Total letters of credit | $576 | $572 |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments (Details) (USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Dec. 31, 2014 | Mar. 31, 2015 |
Fair Values of Financial Instruments | |||
FHLBC Redemptions | $788 | $1,200 | |
Financial assets: | |||
Cash and due from banks | 30,101 | 19,051 | |
Interest bearing deposits with financial institutions | 14,096 | 55,111 | |
Securities available-for-sale | 385,486 | 399,252 | |
Securities held-to-maturity | 259,670 | 257,332 | |
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | |
Bank-owned life insurance | 56,807 | 57,161 | |
Financial liabilities: | |||
Noninterest bearing deposits | 400,447 | 431,843 | |
Other short-term borrowings | 45,000 | 30,000 | |
Junior subordinated debentures | 58,378 | 58,378 | |
Level 1 | |||
Financial assets: | |||
Cash and due from banks | 30,101 | 19,051 | |
Interest bearing deposits with financial institutions | 14,096 | 55,111 | |
Securities available-for-sale | 1,527 | 1,525 | |
Financial liabilities: | |||
Noninterest bearing deposits | 400,447 | 431,843 | |
Junior subordinated debentures | 32,441 | 32,408 | |
Level 2 | |||
Financial assets: | |||
Securities available-for-sale | 330,900 | 397,609 | |
Securities held-to-maturity | 263,266 | 265,095 | |
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | |
Bank-owned life insurance | 56,807 | 57,161 | |
Loans held for sale | 5,072 | 7,038 | |
Accrued interest receivable | 4,888 | 4,953 | |
Financial liabilities: | |||
Interest bearing deposits | 1,284,887 | 1,313,710 | |
Securities sold under repurchase agreements | 21,036 | 26,513 | |
Other short-term borrowings | 45,000 | 30,000 | |
Junior subordinated debentures | 22,245 | 22,223 | |
Subordinated debenture | 39,366 | 39,690 | |
Note payable and other borrowings | 422 | 427 | |
Borrowing interest payable | 75 | 68 | |
Deposit interest payable | 467 | 421 | |
Level 3 | |||
Financial assets: | |||
Securities available-for-sale | 53,059 | 118 | |
Loans, net | 1,151,223 | 1,142,727 | |
Carrying Amount | |||
Financial assets: | |||
Cash and due from banks | 30,101 | 19,051 | |
Interest bearing deposits with financial institutions | 14,096 | 55,111 | |
Securities available-for-sale | 385,486 | 399,252 | |
Securities held-to-maturity | 259,670 | 257,332 | |
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | |
Bank-owned life insurance | 56,807 | 57,161 | |
Loans held for sale | 5,072 | 7,038 | |
Loans, net | 1,137,695 | 1,129,888 | |
Accrued interest receivable | 4,888 | 4,953 | |
Financial liabilities: | |||
Noninterest bearing deposits | 400,447 | 431,843 | |
Interest bearing deposits | 1,284,608 | 1,312,935 | |
Securities sold under repurchase agreements | 21,036 | 26,513 | |
Other short-term borrowings | 45,000 | 30,000 | |
Junior subordinated debentures | 58,378 | 58,378 | |
Subordinated debenture | 45,000 | 45,000 | |
Note payable and other borrowings | 500 | 500 | |
Borrowing interest payable | 75 | 68 | |
Deposit interest payable | 467 | 421 | |
Total | |||
Financial assets: | |||
Cash and due from banks | 30,101 | 19,051 | |
Interest bearing deposits with financial institutions | 14,096 | 55,111 | |
Securities available-for-sale | 385,486 | 399,252 | |
Securities held-to-maturity | 263,266 | 265,095 | |
FHLBC and Reserve Bank Stock | 9,058 | 9,058 | |
Bank-owned life insurance | 56,807 | 57,161 | |
Loans held for sale | 5,072 | 7,038 | |
Loans, net | 1,151,223 | 1,142,727 | |
Accrued interest receivable | 4,888 | 4,953 | |
Financial liabilities: | |||
Noninterest bearing deposits | 400,447 | 431,843 | |
Interest bearing deposits | 1,284,887 | 1,313,710 | |
Securities sold under repurchase agreements | 21,036 | 26,513 | |
Other short-term borrowings | 45,000 | 30,000 | |
Junior subordinated debentures | 54,686 | 54,631 | |
Subordinated debenture | 39,366 | 39,690 | |
Note payable and other borrowings | 422 | 427 | |
Borrowing interest payable | 75 | 68 | |
Deposit interest payable | $467 | $421 |
Series_B_Preferred_Stock_Detai
Series B Preferred Stock (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2009 | Mar. 31, 2015 |
Preferred Stock | ||
Proceeds from the Treasury | $73 | |
Series B Stock | ||
Preferred Stock | ||
Period for payment of cumulative dividends using the initial cumulative dividend rate | 5 years | |
Cumulative dividends, initial rate for the first five years (as a percent) | 5.00% | |
Cumulative dividends rate (as a percent) | 9.00% | |
Fair value | 68.2 | |
Warrants | ||
Preferred Stock | ||
Warrants, term | 10 years | |
Warrants to purchase the Company's common stock, initially authorized (in shares) | 815,339 | |
Warrants, exercise price (in dollars per share) | 13.43 | |
Fair value | $4.80 |
Series_B_Preferred_Stock_Divid
Series B Preferred Stock - Dividends and Redemptions (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||||||
Feb. 15, 2015 | Dec. 30, 2014 | 15-May-14 | Apr. 28, 2014 | 31-May-14 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 30, 2014 | Dec. 31, 2013 | |
item | ||||||||||
Preferred Stock | ||||||||||
Payments of Dividends | $1,006,000 | |||||||||
Preferred stock | 31,553,000 | 47,331,000 | ||||||||
Preferred Stock, Shares Outstanding | 31,553 | 47,331 | ||||||||
Series B Stock | ||||||||||
Preferred Stock | ||||||||||
Number of quarters in which if the Company did not pay dividends, will allow the holder the right to appoint representatives to the Company's board of directors | 6 | |||||||||
Repurchase price percentage of liquidation value (as a percent) | 94.75% | 94.75% | ||||||||
Payments of Dividends | 710,000 | 10,300,000 | 10,300,000 | |||||||
Payments for repurchase of preferred stock | 24,300,000 | 24,300,000 | ||||||||
Shares redeemed (in shares) | 25,669 | 15,778 | 25,669 | |||||||
Preferred stock | $31,600,000 | $47,300,000 | $72,900,000 | |||||||
Shares to be redeemed, percent of issued and outstanding | 33.33% | 33.33% | ||||||||
Preferred Stock, Shares Outstanding | 47,331 | 31,553 | 47,331 | 47,331 | ||||||
Preferred Stock, Redemption Price Per Share | $1,000 | $1,000 |