Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 09, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'OLD SECOND BANCORP INC | ' |
Entity Central Index Key | '0000357173 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 13,917,108 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $47,486 | $44,221 |
Interest bearing deposits with financial institutions | 32,586 | 84,286 |
Cash and cash equivalents | 80,072 | 128,507 |
Securities available-for-sale, at fair value | 373,478 | 579,886 |
Securities held-to-maturity, at amortized cost | 258,101 | ' |
Federal Home Loan Bank and Federal Reserve Bank stock | 10,292 | 11,202 |
Loans held-for-sale | 3,129 | 9,571 |
Loans | 1,077,640 | 1,150,050 |
Less: allowance for loan losses | 29,547 | 38,597 |
Net loans | 1,048,093 | 1,111,453 |
Premises and equipment, net | 46,392 | 47,002 |
Other real estate owned | 49,066 | 72,423 |
Mortgage servicing rights, net | 5,456 | 4,116 |
Core deposit, net | 1,702 | 3,276 |
Bank-owned life insurance (BOLI) | 55,005 | 54,203 |
Deferred tax assets, net | 78,865 | 928 |
Other assets | 23,137 | 23,232 |
Total assets | 2,032,788 | 2,045,799 |
Deposits: | ' | ' |
Noninterest bearing demand | 373,499 | 379,451 |
Interest bearing: | ' | ' |
Savings, NOW, and money market | 809,521 | 826,976 |
Time | 490,103 | 510,792 |
Total deposits | 1,673,123 | 1,717,219 |
Securities sold under repurchase agreements | 20,719 | 17,875 |
Other short-term borrowings | 55,000 | 100,000 |
Junior subordinated debentures | 58,378 | 58,378 |
Subordinated debt | 45,000 | 45,000 |
Notes payable and other borrowings | 500 | 500 |
Other liabilities | 38,029 | 34,275 |
Total liabilities | 1,890,749 | 1,973,247 |
Stockholders' Equity | ' | ' |
Preferred stock | 72,667 | 71,869 |
Common stock | 18,830 | 18,729 |
Additional paid-in capital | 66,168 | 66,189 |
Retained earnings | 92,612 | 12,048 |
Accumulated other comprehensive loss | -12,435 | -1,327 |
Treasury stock | -95,803 | -94,956 |
Total stockholders' equity | 142,039 | 72,552 |
Total liabilities and stockholders' equity | $2,032,788 | $2,045,799 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
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 | 73,000 | 73,000 |
Preferred stock, Shares outstanding | 73,000 | 73,000 |
Common stock, Par value (in dollars per share) | $1 | $1 |
Common Stock, Shares authorized | 60,000,000 | 60,000,000 |
Common stock, Shares issued | 18,829,734 | 18,729,134 |
Common stock, Shares outstanding | 13,917,108 | 14,084,328 |
Treasury stock, Shares | 4,912,626 | 4,644,806 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest and Dividend Income | ' | ' | ' | ' |
Loans, including fees | $14,327 | $16,193 | $43,153 | $51,476 |
Loans held-for-sale | 38 | 68 | 124 | 201 |
Securities: | ' | ' | ' | ' |
Taxable | 3,113 | 1,868 | 8,109 | 5,222 |
Tax exempt | 148 | 98 | 441 | 303 |
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock | 76 | 77 | 228 | 228 |
Interest bearing deposits with financial institutions | 22 | 29 | 91 | 89 |
Total interest and dividend income | 17,724 | 18,333 | 52,146 | 57,519 |
Interest Expense | ' | ' | ' | ' |
Savings, NOW, and money market deposits | 206 | 253 | 655 | 807 |
Time deposits | 1,674 | 1,973 | 5,327 | 6,920 |
Securities sold under repurchase agreements | 1 | 1 | 2 | 2 |
Other short-term borrowings | 5 | ' | 24 | 4 |
Junior subordinated debentures | 1,336 | 1,243 | 3,937 | 3,660 |
Subordinated debt | 209 | 223 | 610 | 684 |
Notes payable and other borrowings | 4 | 5 | 12 | 13 |
Total interest expense | 3,435 | 3,698 | 10,567 | 12,090 |
Net interest and dividend income | 14,289 | 14,635 | 41,579 | 45,429 |
(Release) provision for loan losses | -1,750 | ' | -6,050 | 6,284 |
Net interest and dividend income after provision for loan losses | 16,039 | 14,635 | 47,629 | 39,145 |
Noninterest Income | ' | ' | ' | ' |
Trust income | 1,494 | 1,489 | 4,666 | 4,603 |
Service charges on deposits | 1,904 | 1,982 | 5,379 | 5,706 |
Secondary mortgage fees | 183 | 350 | 680 | 957 |
Mortgage servicing income, net of changes in fair value | 235 | -155 | 1,222 | -365 |
Net gain on sales of mortgage loans | 814 | 2,504 | 4,601 | 7,509 |
Securities (losses) gains, net | -7 | 513 | 2,191 | 1,306 |
Increase in cash surrender value of bank-owned life insurance | 419 | 425 | 1,198 | 1,246 |
Death benefit realized on bank-owned life insurance | 6 | ' | 381 | ' |
Debit card interchange income | 873 | 788 | 2,565 | 2,661 |
Lease revenue from other real estate owned | 309 | 840 | 974 | 2,930 |
Net gain on sale of other real estate owned | 608 | 20 | 1,175 | 398 |
Other income | 1,549 | 1,592 | 4,434 | 4,257 |
Total noninterest income | 8,387 | 10,348 | 29,466 | 31,208 |
Noninterest Expense | ' | ' | ' | ' |
Salaries and employee benefits | 9,299 | 8,963 | 27,508 | 26,835 |
Occupancy expense, net | 1,266 | 1,242 | 3,787 | 3,684 |
Furniture and equipment expense | 1,026 | 1,078 | 3,274 | 3,416 |
FDIC insurance | 987 | 1,029 | 3,046 | 3,058 |
General bank insurance | 489 | 851 | 1,829 | 2,538 |
Amortization of core deposit and other intangible asset | 524 | 420 | 1,574 | 865 |
Advertising expense | 347 | 400 | 841 | 982 |
Debit card interchange expense | 366 | 388 | 1,072 | 1,183 |
Legal fees | 615 | 760 | 1,424 | 2,215 |
Other real estate expense | 3,461 | 6,545 | 11,092 | 17,987 |
Other expense | 3,119 | 3,187 | 9,773 | 9,186 |
Total noninterest expense | 21,499 | 24,863 | 65,220 | 71,949 |
Income (loss) before income taxes | 2,927 | 120 | 11,875 | -1,596 |
Income tax benefit | -69,997 | ' | -69,997 | ' |
Net Income (loss) | 72,924 | 120 | 81,872 | -1,596 |
Preferred stock dividends and accretion | 1,323 | 1,255 | 3,917 | 3,716 |
Net income (loss) available to common stockholders | $71,601 | ($1,135) | $77,955 | ($5,312) |
Basic earnings (loss) per share (in dollars per share) | $5.08 | ($0.08) | $5.52 | ($0.37) |
Diluted earnings (loss) per share (in dollars per share) | $5.08 | ($0.08) | $5.52 | ($0.37) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Comprehensive Income (Loss) | ' | ' | ' | ' |
Net Income (loss) | $72,924 | $120 | $81,872 | ($1,596) |
Unrealized holding (losses) gains on available-for-sale securities arising during the period | -3,411 | 2,908 | -16,780 | 3,255 |
Related tax benefit (expense) | 1,405 | -1,194 | 6,913 | -1,335 |
Holding (losses) income after tax on available-for-sale securities | -2,006 | 1,714 | -9,867 | 1,920 |
Less: Reclassification adjustment for the net gains realized during the period | ' | ' | ' | ' |
Net realized (losses) gains | -7 | 513 | 2,191 | 1,306 |
Income tax benefit (expense) on net realized gains | 3 | -208 | -899 | -532 |
Net realized (losses) gains after tax | -4 | 305 | 1,292 | 774 |
Other comprehensive (loss) income on available-for-sale securities | -2,002 | 1,409 | -11,159 | 1,146 |
Accretion of net unrealized holding losses on held-to-maturity transferred from available-for-sale securities | 87 | ' | 87 | ' |
Related tax expense | -36 | ' | -36 | ' |
Other comprehensive income on held-to-maturity securities | 51 | ' | 51 | ' |
Total other comprehensive (loss) income | -1,951 | 1,409 | -11,108 | 1,146 |
Total comprehensive income (loss) | $70,973 | $1,529 | $70,764 | ($450) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' |
Net income (loss) | $81,872 | ($1,596) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of leasehold improvement | 2,147 | 2,339 |
Change in market value of mortgage servicing rights | -81 | 1,315 |
(Release) provision for loan losses | -6,050 | 6,284 |
Gain on recapture of restricted stock | -612 | ' |
Provision for deferred tax benefit | -70,161 | ' |
Originations of loans held-for-sale | -151,601 | -208,710 |
Proceeds from sales of loans held-for-sale | 160,966 | 222,590 |
Net gain on sales of mortgage loans | -4,601 | -7,509 |
Change in current income taxes (payable) receivable | -101 | 815 |
Increase in cash surrender value of bank-owned life insurance | -1,198 | -1,246 |
Death claim on bank owned life insurance | 396 | ' |
Change in accrued interest receivable and other assets | -334 | -2,437 |
Change in accrued interest payable and other liabilities | 4,341 | 4,689 |
Net discount (accretion)/premium amortization on securities | -131 | 664 |
Securities gains, net | -2,191 | -1,306 |
Amortization of core deposit and other intangible assets | 1,574 | 865 |
Stock based compensation | 123 | 220 |
Net gain on sale of other real estate owned | -1,175 | -398 |
Provision for other real estate owned losses | 6,537 | 12,101 |
Net gain on disposal of fixed assets | -5 | ' |
Net cash provided by operating activities | 19,715 | 28,680 |
Cash flows from investing activities | ' | ' |
Proceeds from maturities and calls including pay down of securities available-for-sale | 38,175 | 65,940 |
Proceeds from sales of securities available-for-sale | 484,112 | 185,861 |
Purchases of securities available-for-sale | -564,372 | -353,992 |
Proceeds from maturities and calls including pay down of securities held-to-maturity | 541 | ' |
Purchases of securities held-to-maturity | -21,382 | ' |
Net sales of Federal Reserve Bank and Federal Home Loan Bank stock | 910 | 2,250 |
Net change in loans | 49,885 | 115,728 |
Investment in other real estate owned | -60 | -646 |
Proceeds from sales of other real estate owned | 32,103 | 20,915 |
Proceeds from disposition of fixed assets | 6 | ' |
Net purchases of premises and equipment | -1,538 | -371 |
Net cash provided by investing activities | 18,380 | 35,685 |
Cash flows from financing activities | ' | ' |
Net change in deposits | -44,096 | -43,847 |
Net change in securities sold under repurchase agreements | 2,844 | 837 |
Net change in other short-term borrowings | -45,000 | ' |
Purchase of treasury stock | -278 | -63 |
Net cash used in financing activities | -86,530 | -43,073 |
Net change in cash and cash equivalents | -48,435 | 21,292 |
Cash and cash equivalents at beginning of period | 128,507 | 50,949 |
Cash and cash equivalents at end of period | 80,072 | 72,241 |
Supplemental cash flow information | ' | ' |
Income taxes paid (received) | 266 | -815 |
Interest paid for deposits | 6,144 | 8,444 |
Interest paid for borrowings | 656 | 702 |
Non-cash transfer of loans to other real estate owned | 14,196 | 26,944 |
Non-cash transfer of loans to securities available-for-sale | 5,329 | ' |
Non-cash transfer of securities available-for-sale to securities held-to-maturity | 237,154 | ' |
Change in dividends declared not paid | 510 | 2,968 |
Accretion on preferred stock warrants | 798 | 748 |
Fair value difference on recapture of restricted stock | $43 | ' |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $74,002 | $18,628 | $70,863 | $65,999 | $17,107 | ($3,702) | ($94,893) |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -1,596 | ' | ' | ' | -1,596 | ' | ' |
Change in net unrealized gain (loss) on securities available-for-sale, net of $803 and $7,776 tax effect for the periods ended September 30, 2013 and 2012, respectively | 1,146 | ' | ' | ' | ' | 1,146 | ' |
Change in restricted stock | ' | 101 | ' | -101 | ' | ' | ' |
Stock based compensation | 220 | ' | ' | 220 | ' | ' | ' |
Purchase of treasury stock | -63 | ' | ' | ' | ' | ' | -63 |
Preferred dividends declared and accrued (5% per preferred share) | -2,968 | ' | 748 | ' | -3,716 | ' | ' |
Balance at Sep. 30, 2012 | 70,741 | 18,729 | 71,611 | 66,118 | 11,795 | -2,556 | -94,956 |
Balance at Dec. 31, 2012 | 72,552 | 18,729 | 71,869 | 66,189 | 12,048 | -1,327 | -94,956 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 81,872 | ' | ' | ' | 81,872 | ' | ' |
Change in net unrealized gain (loss) on securities available-for-sale, net of $803 and $7,776 tax effect for the periods ended September 30, 2013 and 2012, respectively | -11,108 | ' | ' | ' | ' | -11,108 | ' |
Change in restricted stock | ' | 101 | ' | -101 | ' | ' | ' |
Recapture of restricted stock | -612 | ' | ' | -43 | ' | ' | -569 |
Stock based compensation | 123 | ' | ' | 123 | ' | ' | ' |
Purchase of treasury stock | -278 | ' | ' | ' | ' | ' | -278 |
Preferred dividends declared and accrued (5% per preferred share) | -510 | ' | 798 | ' | -1,308 | ' | ' |
Balance at Sep. 30, 2013 | $142,039 | $18,830 | $72,667 | $66,168 | $92,612 | ($12,435) | ($95,803) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Changes in Stockholders' Equity | ' | ' |
Change in net unrealized loss on securities available-for-sale, tax effect | $7,776 | $803 |
Preferred dividends declared and accrued, per preferred share (as a percent) | 5.00% | 5.00% |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
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 financial statements are consistent with those used in the preparation of the annual financial information. The interim 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 September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These interim financial statements 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, 2012. Unless otherwise indicated, amounts in the tables contained in the notes 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 practices (“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 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, 2012. 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 February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2013-02 “Comprehensive Income (Topic 220) — Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. The impact of ASU 2013-02 on the Company’s consolidated financial statements is reflected in the consolidated statement of comprehensive income (loss) and has been reflected in the Company’s financial statements since January 1, 2013. | |
Securities
Securities | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
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 Old Second National Bank (the “Bank”), portions of the portfolio also serve as income producing assets. The size of the portfolio reflects liquidity needs, loan demand and interest income objectives. The Company views the September 30, 2013, securities available-for-sale portfolio ($386.5 million amortized cost and $373.5 million fair value) as a substantial source of liquidity that will allow for loan growth without having to raise deposits. Consistent with the comments above, management views the portion of the portfolio not carried in an unrealized loss position and the Bank’s ability to borrow a substantial amount with securities as collateral providing the Bank a comfortable liquidity position. Portfolio size and composition may be adjusted from time to time. | ||||||||||||||||||||||||||
Investments are comprised of debt securities and non-marketable equity investments. Until the third quarter 2013, all debt securities had been classified as available-for-sale. Past purchases and sales were done under our management and asset/liability strategies. Securities available-for-sale are carried at fair value. Unrealized gains and losses 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. As of September 1, 2013, securities with a fair value of $237.2 million, and a cost basis of $245.4 million, with an August 31, 2013 unrealized loss of $8.2 million, were transferred from available-for-sale to held-to-maturity. In addition new held-to-maturity securities purchases were made during September. Specifically, two purchases were made of securities issued by the Government National Mortgage Association. In accordance with GAAP, the Company has the positive intent and ability to hold the securities to maturity. Securities held-to-maturity are carried at amortized cost and the discount or premium created in the transfer is accreted or amortized to the maturity or expected payoff date but not an earlier call. The Company has followed and will follow GAAP accounting on all securities holdings. | ||||||||||||||||||||||||||
Nonmarketable equity investments include Federal Home Loan Bank of Chicago (“FHLBC”) stock and Federal Reserve Bank of Chicago (“FRB”) stock. FHLBC stock was recorded at a value of $5.5 million at September 30, 2013, and $6.4 million at December 31, 2012. FRB stock was recorded at $4.8 million at September 30, 2013, and December 31, 2012. 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 September 30, 2013 and December 31, 2012 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss (in thousands): | ||||||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||
September 30, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||
U.S. Treasury | $ | 1,554 | $ | - | $ | -6 | $ | 1,548 | ||||||||||||||||||
U.S. government agencies | 1,745 | - | -52 | 1,693 | ||||||||||||||||||||||
States and political subdivisions | 19,275 | 731 | -165 | 19,841 | ||||||||||||||||||||||
Corporate bonds | 22,889 | 75 | -764 | 22,200 | ||||||||||||||||||||||
Collateralized mortgage obligations | 51,619 | 182 | -3,676 | 48,125 | ||||||||||||||||||||||
Asset-backed securities | 272,236 | 1,575 | -4,827 | 268,984 | ||||||||||||||||||||||
Collateralized debt obligations | 17,173 | - | -6,086 | 11,087 | ||||||||||||||||||||||
Total Securities Available-for-Sale | $ | 386,491 | $ | 2,563 | $ | -15,576 | $ | 373,478 | ||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 35,241 | $ | 547 | $ | - | $ | 35,788 | ||||||||||||||||||
Collateralized mortgage obligations | 222,860 | 1,773 | - | 224,633 | ||||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 258,101 | $ | 2,320 | $ | - | $ | 260,421 | ||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||
U.S. Treasury | $ | 1,500 | $ | 7 | $ | - | $ | 1,507 | ||||||||||||||||||
U.S. government agencies | 49,848 | 122 | -120 | 49,850 | ||||||||||||||||||||||
U.S. government agency mortgage-backed | 127,716 | 1,605 | -583 | 128,738 | ||||||||||||||||||||||
States and political subdivisions | 14,639 | 1,216 | - | 15,855 | ||||||||||||||||||||||
Corporate bonds | 36,355 | 586 | -55 | 36,886 | ||||||||||||||||||||||
Collateralized mortgage obligations | 168,795 | 1,895 | -1,090 | 169,600 | ||||||||||||||||||||||
Asset-backed securities | 165,347 | 2,468 | -322 | 167,493 | ||||||||||||||||||||||
Collateralized debt obligations | 17,941 | - | -7,984 | 9,957 | ||||||||||||||||||||||
Total Securities Available-for-Sale | $ | 582,141 | $ | 7,899 | $ | -10,154 | $ | 579,886 | ||||||||||||||||||
The fair value, amortized cost and weighted average yield of debt securities at September 30, 2013, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date, primarily mortgage-backed securities (“MBS”), asset-backed securities, and collateralized debt obligations are shown separately (in thousands): | ||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||
Amortized | Average | Fair | ||||||||||||||||||||||||
Securities Available-for-Sale | Cost | Yield | Value | |||||||||||||||||||||||
Due in one year or less | $ | 772 | 3.58% | $ | 789 | |||||||||||||||||||||
Due after one year through five years | 4,425 | 2.35% | 4,510 | |||||||||||||||||||||||
Due after five years through ten years | 29,271 | 3.04% | 28,885 | |||||||||||||||||||||||
Due after ten years | 10,995 | 4.31% | 11,098 | |||||||||||||||||||||||
45,463 | 3.29% | 45,282 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 51,619 | 2.62% | 48,125 | |||||||||||||||||||||||
Asset-back securites | 272,236 | 1.67% | 268,984 | |||||||||||||||||||||||
Collateralized debt obligations | 17,173 | 1.62% | 11,087 | |||||||||||||||||||||||
$ | 386,491 | 1.99% | $ | 373,478 | ||||||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
Mortgage-backed securities | $ | 258,101 | 3.07% | $ | 260,421 | |||||||||||||||||||||
Securities with unrealized losses at September 30, 2013, and December 31, 2012, 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 | |||||||||||||||||||||||||
September 30, 2013 | 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 | $ | 6 | $ | 1,548 | - | $ | - | $ | - | 1 | $ | 6 | 1,548 | ||||||||||||
U.S. government agencies | 1 | 52 | 1,693 | - | - | - | 1 | 52 | 1,693 | |||||||||||||||||
States and political subdivisions | 7 | 165 | 6,195 | - | - | - | 7 | 165 | 6,195 | |||||||||||||||||
Corporate bonds | 5 | 717 | 13,009 | 2 | 47 | 2,162 | 7 | 764 | 15,171 | |||||||||||||||||
Collateralized mortgage obligations | 3 | 3,676 | 35,471 | - | - | - | 3 | 3,676 | 35,471 | |||||||||||||||||
Asset-backed securities | 18 | 4,784 | 162,705 | 1 | 43 | 3,791 | 19 | 4,827 | 166,496 | |||||||||||||||||
Collateralized debt obligations | - | - | - | 2 | 6,086 | 11,087 | 2 | 6,086 | 11,087 | |||||||||||||||||
35 | $ | 9,400 | $ | 220,621 | 5 | $ | 6,176 | $ | 17,040 | 40 | $ | 15,576 | $ | 237,661 | ||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||
December 31, 2012 | 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 | 4 | $ | 120 | $ | 17,039 | - | $ | - | $ | - | 4 | $ | 120 | $ | 17,039 | |||||||||||
U.S. government agency mortgage-backed | 12 | 583 | 53,184 | - | - | - | 12 | 583 | 53,184 | |||||||||||||||||
Corporate bonds | 4 | 55 | 9,724 | - | - | - | 4 | 55 | 9,724 | |||||||||||||||||
Collateralized mortgage obligations | 6 | 1,060 | 37,778 | 1 | 30 | 2,343 | 7 | 1,090 | 40,121 | |||||||||||||||||
Asset-backed securities | 6 | 322 | 37,488 | - | - | - | 6 | 322 | 37,488 | |||||||||||||||||
Collateralized debt obligations | - | - | - | 2 | 7,984 | 9,957 | 2 | 7,984 | 9,957 | |||||||||||||||||
32 | $ | 2,140 | $ | 155,213 | 3 | $ | 8,014 | $ | 12,300 | 35 | $ | 10,154 | $ | 167,513 | ||||||||||||
Recognition of other-than-temporary impairment was not necessary in the nine months ended September 30, 2013, or the year ended December 31, 2012. The changes in fair values related primarily to interest rate fluctuations and were not related to credit quality deterioration. Further to this point as shown in tables below, the amount of deferrals and defaults in the pooled collateralized debt obligations (“CDOs”) decreased in the period from December 31, 2012, to September 30, 2013. | ||||||||||||||||||||||||||
Uncertainty in the financial markets in the periods presented has resulted in reduced liquidity for certain investments, particularly the CDOs. In the case of the CDOs fair value measurement, management included a risk premium adjustment as of September 30, 2013, to reflect an estimated yield that a market participant would demand because of uncertainty in cash flows, based on incomplete and sporadic levels of market activity. Accordingly, management continues to designate these securities as Level 3 securities as described in Note 12 of this quarterly report as of September 30, 2013. As of September 30, 2013, management did not have the intent to sell the above securities and it is more likely than not the Company will not sell the securities before recovery of its cost basis. | ||||||||||||||||||||||||||
Below is additional information as it relates to the CDOs, Trapeza 2007-13A, which is secured by a pool of trust preferred securities issued by trusts sponsored by multiple financial institutions. | ||||||||||||||||||||||||||
Gross | S&P | Number of | Issuance | Issuance | ||||||||||||||||||||||
Amortized | Fair | Unrealized | Credit | Banks in | Deferrals & Defaults | Excess Subordination | ||||||||||||||||||||
Cost | Value | Loss | Rating 1 | Issuance | Amount | Collateral % | Amount | Collateral % | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||
Class A1 | $ | 8,157 | $ | 5,619 | $ | -2,538 | BB+ | 63 | $ | 207,000 | 27.60% | $ | 227,472 | 30.30% | ||||||||||||
Class A2A | 9,016 | 5,468 | -3,548 | B+ | 63 | 207,000 | 27.60% | 130,472 | 17.40% | |||||||||||||||||
$ | 17,173 | $ | 11,087 | $ | -6,086 | |||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Class A1 | $ | 9,038 | $ | 5,768 | $ | -3,270 | BB+ | 63 | $ | 208,000 | 27.70% | $ | 190,982 | 25.50% | ||||||||||||
Class A2A | 8,903 | 4,189 | -4,714 | B+ | 63 | 208,000 | 27.70% | 93,982 | 12.50% | |||||||||||||||||
$ | 17,941 | $ | 9,957 | $ | -7,984 | |||||||||||||||||||||
1 Moody’s credit rating for class A1 and A2A were upgraded to Baa1 and Baa3, respectively, as of September 30, 2013, compared to Baa2 and Ba2 at December 31, 2012. The Fitch ratings for class A1 and A2A were also upgraded to A and BBB, respectively, as of September 30, 2013, compared to BBB and B at December 31, 2012. | ||||||||||||||||||||||||||
Loans
Loans | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Note 3 – Loans | ||||||||||||||||||||||||||
Major classifications of loans were as follows: | ||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Commercial | $ | 86,822 | $ | 86,941 | ||||||||||||||||||||||
Real estate - commercial | 554,874 | 579,687 | ||||||||||||||||||||||||
Real estate - construction | 30,996 | 42,167 | ||||||||||||||||||||||||
Real estate - residential | 376,859 | 414,543 | ||||||||||||||||||||||||
Consumer | 2,570 | 3,101 | ||||||||||||||||||||||||
Overdraft | 544 | 994 | ||||||||||||||||||||||||
Lease financing receivables | 11,204 | 6,060 | ||||||||||||||||||||||||
Other | 13,236 | 16,451 | ||||||||||||||||||||||||
1,077,105 | 1,149,944 | |||||||||||||||||||||||||
Net deferred loan fees | 535 | 106 | ||||||||||||||||||||||||
$ | 1,077,640 | $ | 1,150,050 | |||||||||||||||||||||||
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 89.3% and 90.1% of the portfolio at September 30, 2013, and December 31, 2012, respectively. The Company has been and remains committed to overseeing and managing its loan portfolio to reduce its real estate credit concentrations. Previously, this was done in accordance with the requirements of the Stipulation and Consent to the Issuance of a Consent Order the Bank entered into with the Office of the Controller of the Currency (the “OCC”) on May 16, 2011 (the “Consent Order”), which was terminated on October 17, 2013. Regulatory and Capital matters affecting the Company, including the Consent Order are discussed in more detail in Note 11 of the consolidated financial statements included in this report. | ||||||||||||||||||||||||||
Aged analysis of past due loans by class of loans were as follows: | ||||||||||||||||||||||||||
September 30, 2013 | 30-59 Days | 60-89 Days | 90 Days or | Total Past | Current | Nonaccrual | Total Loans | Recorded | ||||||||||||||||||
Past Due | Past Due | Greater Past | Due | Investment | ||||||||||||||||||||||
Due | 90 days or | |||||||||||||||||||||||||
Greater Past | ||||||||||||||||||||||||||
Due and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial | $ | 69 | $ | 132 | $ | - | $ | 201 | $ | 97,796 | $ | 29 | $ | 98,026 | $ | - | ||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 165 | - | - | 165 | 109,584 | 3,497 | 113,246 | - | ||||||||||||||||||
Owner occupied special purpose | 650 | 227 | - | 877 | 162,435 | 5,947 | 169,259 | - | ||||||||||||||||||
Non-owner occupied general purpose | - | - | - | - | 128,084 | 7,273 | 135,357 | - | ||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 75,595 | 438 | 76,033 | - | ||||||||||||||||||
Retail properties | - | - | - | - | 39,829 | 5,056 | 44,885 | - | ||||||||||||||||||
Farm | - | - | - | - | 16,094 | - | 16,094 | - | ||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | - | - | - | - | 4,563 | 168 | 4,731 | - | ||||||||||||||||||
Land | - | - | - | - | 4,640 | 209 | 4,849 | - | ||||||||||||||||||
Commercial speculative | - | - | - | - | 8,811 | 3,534 | 12,345 | - | ||||||||||||||||||
All other | - | - | - | - | 8,323 | 748 | 9,071 | - | ||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 213 | - | - | 213 | 122,031 | 8,307 | 130,551 | - | ||||||||||||||||||
Owner occupied | 625 | - | - | 625 | 112,515 | 5,858 | 118,998 | - | ||||||||||||||||||
Revolving and junior liens | 522 | 75 | 45 | 642 | 124,170 | 2,498 | 127,310 | 45 | ||||||||||||||||||
Consumer | - | - | - | - | 2,570 | - | 2,570 | - | ||||||||||||||||||
All other | - | - | - | - | 14,315 | - | 14,315 | - | ||||||||||||||||||
$ | 2,244 | $ | 434 | $ | 45 | $ | 2,723 | $ | 1,031,355 | $ | 43,562 | $ | 1,077,640 | $ | 45 | |||||||||||
December 31, 2012 | 30-59 Days | 60-89 Days | 90 Days or | Total Past | Current | Nonaccrual | Total Loans | Recorded | ||||||||||||||||||
Past Due | Past Due | Greater Past | Due | Investment | ||||||||||||||||||||||
Due | 90 days or | |||||||||||||||||||||||||
Greater Past | ||||||||||||||||||||||||||
Due and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial | $ | 159 | $ | - | $ | - | $ | 159 | $ | 92,080 | $ | 762 | $ | 93,001 | $ | - | ||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 1,580 | 50 | - | 1,630 | 119,994 | 5,487 | 127,111 | - | ||||||||||||||||||
Owner occupied special purpose | 172 | - | - | 172 | 149,439 | 11,433 | 161,044 | - | ||||||||||||||||||
Non-owner occupied general purpose | - | 1,046 | - | 1,046 | 128,817 | 13,436 | 143,299 | - | ||||||||||||||||||
Non-owner occupied special purpose | - | 4,304 | - | 4,304 | 69,299 | 477 | 74,080 | - | ||||||||||||||||||
Retail properties | - | - | - | - | 37,732 | 10,532 | 48,264 | - | ||||||||||||||||||
Farm | - | - | - | - | 23,372 | 2,517 | 25,889 | - | ||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | - | - | - | - | 4,469 | 1,855 | 6,324 | - | ||||||||||||||||||
Land | - | - | - | - | 2,747 | 254 | 3,001 | - | ||||||||||||||||||
Commercial speculative | - | - | - | - | 10,755 | 6,587 | 17,342 | - | ||||||||||||||||||
All other | 300 | 215 | 68 | 583 | 14,360 | 557 | 15,500 | 68 | ||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 276 | 164 | - | 440 | 140,141 | 9,910 | 150,491 | - | ||||||||||||||||||
Owner occupied | 3,151 | 375 | 21 | 3,547 | 110,735 | 9,918 | 124,200 | 21 | ||||||||||||||||||
Revolving and junior liens | 888 | 203 | - | 1,091 | 134,990 | 3,771 | 139,852 | - | ||||||||||||||||||
Consumer | 3 | - | - | 3 | 3,075 | 23 | 3,101 | - | ||||||||||||||||||
All other | - | - | - | - | 17,551 | - | 17,551 | - | ||||||||||||||||||
$ | 6,529 | $ | 6,357 | $ | 89 | $ | 12,975 | $ | 1,059,556 | $ | 77,519 | $ | 1,150,050 | $ | 89 | |||||||||||
The Bank had no commitments to any borrower whose loans were classified as impaired at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||
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. Loans listed as not rated have outstanding loans or commitments less than $50,000 or are included in groups of homogeneous loans. | ||||||||||||||||||||||||||
Credit Quality Indicators by class of loans were as follows: | ||||||||||||||||||||||||||
September 30, 2013 | Pass | Special | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Mention | ||||||||||||||||||||||||||
Commercial | $ | 89,051 | $ | 8,711 | $ | 264 | $ | - | $ | 98,026 | ||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 97,309 | 8,560 | 7,377 | - | 113,246 | |||||||||||||||||||||
Owner occupied special purpose | 159,678 | 1,480 | 8,101 | - | 169,259 | |||||||||||||||||||||
Non-owner occupied general purpose | 118,741 | 1,574 | 15,042 | - | 135,357 | |||||||||||||||||||||
Non-owner occupied special purpose | 61,874 | 9,893 | 4,266 | - | 76,033 | |||||||||||||||||||||
Retail Properties | 35,833 | 3,006 | 6,046 | - | 44,885 | |||||||||||||||||||||
Farm | 14,607 | 1,487 | - | - | 16,094 | |||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | 1,216 | 1,770 | 1,745 | - | 4,731 | |||||||||||||||||||||
Land | 4,640 | - | 209 | - | 4,849 | |||||||||||||||||||||
Commercial speculative | 5,232 | 3,579 | 3,534 | - | 12,345 | |||||||||||||||||||||
All other | 8,289 | 34 | 748 | - | 9,071 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 116,627 | 3,282 | 10,642 | - | 130,551 | |||||||||||||||||||||
Owner occupied | 111,323 | 383 | 7,292 | - | 118,998 | |||||||||||||||||||||
Revolving and junior liens | 123,435 | 200 | 3,675 | - | 127,310 | |||||||||||||||||||||
Consumer | 2,569 | - | 1 | - | 2,570 | |||||||||||||||||||||
All other | 14,315 | - | - | - | 14,315 | |||||||||||||||||||||
Total | $ | 964,739 | $ | 43,959 | $ | 68,942 | $ | - | $ | 1,077,640 | ||||||||||||||||
December 31, 2012 | Pass | Special | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Mention | ||||||||||||||||||||||||||
Commercial | $ | 88,071 | $ | 3,867 | $ | 1,063 | $ | - | $ | 93,001 | ||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 113,118 | 2,995 | 10,998 | - | 127,111 | |||||||||||||||||||||
Owner occupied special purpose | 134,152 | 9,036 | 17,856 | - | 161,044 | |||||||||||||||||||||
Non-owner occupied general purpose | 105,192 | 14,273 | 23,834 | - | 143,299 | |||||||||||||||||||||
Non-owner occupied special purpose | 68,682 | 3,911 | 1,487 | - | 74,080 | |||||||||||||||||||||
Retail Properties | 32,715 | 1,873 | 13,676 | - | 48,264 | |||||||||||||||||||||
Farm | 21,262 | 2,110 | 2,517 | - | 25,889 | |||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | 1,318 | 2,196 | 2,810 | - | 6,324 | |||||||||||||||||||||
Land | 2,747 | - | 254 | - | 3,001 | |||||||||||||||||||||
Commercial speculative | 7,122 | - | 10,220 | - | 17,342 | |||||||||||||||||||||
All other | 14,607 | 37 | 856 | - | 15,500 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 123,876 | 14,608 | 12,007 | - | 150,491 | |||||||||||||||||||||
Owner occupied | 110,858 | 396 | 12,946 | - | 124,200 | |||||||||||||||||||||
Revolving and junior liens | 133,992 | 166 | 5,694 | - | 139,852 | |||||||||||||||||||||
Consumer | 3,075 | - | 26 | - | 3,101 | |||||||||||||||||||||
All other | 17,331 | 220 | - | - | 17,551 | |||||||||||||||||||||
Total | $ | 978,118 | $ | 55,688 | $ | 116,244 | $ | - | $ | 1,150,050 | ||||||||||||||||
1 The substandard credit quality indicator includes both potential problem loans that are currently performing and nonperforming loans | ||||||||||||||||||||||||||
Impaired loans by class of loan as of September 30, 2013 were as follows: | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
As of September 30, 2013 | September 30, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 29 | $ | 35 | $ | - | $ | 113 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 2,657 | 3,016 | - | 3,565 | 3 | |||||||||||||||||||||
Owner occupied special purpose | 4,647 | 5,529 | - | 5,913 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 9,633 | 12,131 | - | 11,995 | 113 | |||||||||||||||||||||
Non-owner occupied special purpose | 438 | 623 | - | 457 | - | |||||||||||||||||||||
Retail properties | 5,056 | 6,293 | - | 6,918 | - | |||||||||||||||||||||
Farm | - | - | - | 1,259 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 3,039 | 3,039 | - | 3,597 | 120 | |||||||||||||||||||||
Land | 209 | 308 | - | 231 | - | |||||||||||||||||||||
Commercial speculative | 1,913 | 2,550 | - | 2,089 | - | |||||||||||||||||||||
All other | 297 | 333 | - | 188 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 6,523 | 8,580 | - | 5,845 | - | |||||||||||||||||||||
Owner occupied | 9,823 | 11,629 | - | 9,606 | 151 | |||||||||||||||||||||
Revolving and junior liens | 1,968 | 2,886 | - | 1,668 | 5 | |||||||||||||||||||||
Consumer | - | - | 12 | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 46,232 | 56,952 | - | 53,456 | 392 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | - | - | - | 283 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 935 | 955 | 322 | 974 | - | |||||||||||||||||||||
Owner occupied special purpose | 1,300 | 1,493 | 371 | 2,777 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 183 | 183 | 57 | 1,481 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | - | |||||||||||||||||||||
Retail properties | - | - | - | 876 | - | |||||||||||||||||||||
Farm | - | - | - | - | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 168 | 604 | 71 | 97 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 1,621 | 4,225 | 100 | 2,971 | - | |||||||||||||||||||||
All other | 451 | 477 | 241 | 465 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 1,784 | 2,151 | 584 | 3,263 | - | |||||||||||||||||||||
Owner occupied | 986 | 1,082 | 161 | 3,448 | 12 | |||||||||||||||||||||
Revolving and junior liens | 591 | 623 | 243 | 1,527 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 8,019 | 11,793 | 2,150 | 18,162 | 12 | |||||||||||||||||||||
Total impaired loans | $ | 54,251 | $ | 68,745 | $ | 2,150 | $ | 71,618 | $ | 404 | ||||||||||||||||
Impaired loans by class of loans as of December 31, 2012 were as follows: | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
As of December 31, 2012 | September 30, 2012 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 196 | $ | 229 | $ | - | $ | 516 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 4,473 | 5,021 | - | 4,149 | - | |||||||||||||||||||||
Owner occupied special purpose | 7,180 | 8,486 | - | 10,222 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 14,356 | 17,381 | - | 10,996 | 210 | |||||||||||||||||||||
Non-owner occupied special purpose | 477 | 634 | - | 933 | - | |||||||||||||||||||||
Retail properties | 8,780 | 15,323 | - | 5,851 | - | |||||||||||||||||||||
Farm | 2,517 | 2,517 | - | 1,335 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 4,155 | 4,729 | - | 7,952 | 83 | |||||||||||||||||||||
Land | 254 | 308 | - | 1,021 | - | |||||||||||||||||||||
Commercial speculative | 2,265 | 3,451 | - | 6,297 | - | |||||||||||||||||||||
All other | 78 | 168 | - | 2,204 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 5,168 | 6,979 | - | 4,500 | - | |||||||||||||||||||||
Owner occupied | 9,389 | 11,002 | - | 10,788 | 187 | |||||||||||||||||||||
Revolving and junior liens | 1,368 | 1,689 | - | 1,466 | 2 | |||||||||||||||||||||
Consumer | 23 | 23 | - | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 60,679 | 77,940 | - | 68,230 | 482 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | 566 | 619 | 458 | 646 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 1,014 | 1,057 | 230 | 5,173 | - | |||||||||||||||||||||
Owner occupied special purpose | 4,253 | 6,200 | 712 | 4,505 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 2,779 | 3,906 | 204 | 9,047 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | 217 | - | |||||||||||||||||||||
Retail properties | 1,752 | 1,812 | 1,102 | 7,958 | - | |||||||||||||||||||||
Farm | - | - | - | 347 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 26 | 75 | 3 | 2,411 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 4,322 | 6,613 | 757 | 4,554 | - | |||||||||||||||||||||
All other | 479 | 649 | 353 | 459 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 4,742 | 5,954 | 477 | 9,552 | - | |||||||||||||||||||||
Owner occupied | 5,909 | 6,923 | 1,089 | 6,726 | 34 | |||||||||||||||||||||
Revolving and junior liens | 2,464 | 2,625 | 874 | 1,608 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 28,306 | 36,433 | 6,259 | 53,203 | 34 | |||||||||||||||||||||
Total impaired loans | $ | 88,985 | $ | 114,373 | $ | 6,259 | $ | 121,433 | $ | 516 | ||||||||||||||||
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 periods three and nine months ended September 30, 2013, were as follows: | ||||||||||||||||||||||||||
TDR Modifications | TDR Modifications | |||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | # of | Pre-modification | Post-modification | |||||||||||||||||||||
contracts | recorded investment | recorded investment | contracts | recorded investment | recorded investment | |||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral3 | - | $ | - | $ | - | 1 | $ | 610 | $ | 472 | ||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral3 | - | - | - | 1 | 137 | 137 | ||||||||||||||||||||
Other5 | - | - | - | 1 | 30 | 29 | ||||||||||||||||||||
- | $ | - | $ | - | 3 | $ | 777 | $ | 638 | |||||||||||||||||
TDR Modifications | TDR Modifications | |||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | # of | Pre-modification | Post-modification | |||||||||||||||||||||
contracts | recorded investment | recorded investment | contracts | recorded investment | recorded investment | |||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral1 | 1 | $ | 689 | $ | 433 | 2 | $ | 898 | $ | 640 | ||||||||||||||||
Interest2 | - | - | - | 2 | 3,381 | 3,148 | ||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||
Deferral1 | 1 | 405 | 167 | 2 | 405 | 167 | ||||||||||||||||||||
Bifurcate3 | - | - | - | 1 | 337 | 88 | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral3 | - | - | - | 1 | 108 | 108 | ||||||||||||||||||||
Revolving and junior liens | ||||||||||||||||||||||||||
Hamp4 | - | - | - | 1 | 117 | 61 | ||||||||||||||||||||
2 | $ | 1,094 | $ | 600 | 9 | $ | 5,246 | $ | 4,212 | |||||||||||||||||
1 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. | ||||||||||||||||||||||||||
2 Interest: Interest rate concession below normal market | ||||||||||||||||||||||||||
3 Deferral: Refers to the deferral of principal payments | ||||||||||||||||||||||||||
4 HAMP: Home Affordable Modification Program | ||||||||||||||||||||||||||
5 Other | ||||||||||||||||||||||||||
TDRs are classified as being in default on a case-by-case basis when they fail to be in compliance with the modified terms. The following table presents TDRs that defaulted during the periods shown and were restructured within the 12 month period prior to default: | ||||||||||||||||||||||||||
TDR Default Activity | TDR Default Activity | |||||||||||||||||||||||||
Three Months ending September 30, 2013 | Nine Months ending September 30, 2013 | |||||||||||||||||||||||||
Troubled debt restructurings that | # of | Pre-modification outstanding | # of | Pre-modification outstanding | ||||||||||||||||||||||
Subsequently Defaulted | contracts | recorded investment | contracts | recorded investment | ||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied special purpose | 1 | $ | 610 | 1 | $ | 610 | ||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | - | - | 1 | 155 | ||||||||||||||||||||||
Owner occupied | 1 | 175 | 1 | 175 | ||||||||||||||||||||||
Revolving and junior liens | 1 | 30 | 1 | 30 | ||||||||||||||||||||||
3 | $ | 815 | 4 | $ | 970 | |||||||||||||||||||||
TDR Default Activity | TDR Default Activity | |||||||||||||||||||||||||
Three Months ending September 30, 2012 | Nine Months ending September 30, 2012 | |||||||||||||||||||||||||
Troubled debt restructurings that | # of | Pre-modification outstanding | # of | Pre-modification outstanding | ||||||||||||||||||||||
Subsequently Defaulted | contracts | recorded investment | contracts | recorded investment | ||||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Commercial speculative | 1 | $ | 460 | 1 | $ | 460 | ||||||||||||||||||||
1 | $ | 460 | 1 | $ | 460 | |||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
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 the three and nine months ended September 30, 2013, were as follows: | |||||||||||||||||||||||
Allowance for loan losses: | Commercial | Real Estate | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||
Commercial1 | Construction | Residential | |||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Beginning balance | $ | 3,332 | $ | 18,097 | $ | 2,690 | $ | 5,021 | $ | 1,372 | $ | 4,530 | $35,042 | ||||||||||
Charge-offs | 29 | 851 | 53 | 3,594 | 168 | - | 4,695 | ||||||||||||||||
Recoveries | 60 | 523 | 15 | 209 | 143 | - | 950 | ||||||||||||||||
Provision (release) | -469 | -1,354 | -252 | 1,352 | 162 | -1,189 | -1,750 | ||||||||||||||||
Ending balance | $ | 2,894 | $ | 16,415 | $ | 2,400 | $ | 2,988 | $ | 1,509 | $ | 3,341 | $ | 29,547 | |||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Beginning balance | $ | 4,517 | $ | 20,100 | $ | 3,837 | $ | 4,535 | $ | 1,178 | $ | 4,430 | $38,597 | ||||||||||
Charge-offs | 308 | 2,377 | 951 | 5,193 | 474 | - | 9,303 | ||||||||||||||||
Recoveries | 104 | 3,752 | 1,265 | 792 | 390 | - | 6,303 | ||||||||||||||||
Provision (release) | -1,419 | -5,060 | -1,751 | 2,854 | 415 | -1,089 | -6,050 | ||||||||||||||||
Ending balance | $ | 2,894 | $ | 16,415 | $ | 2,400 | $ | 2,988 | $ | 1,509 | $ | 3,341 | $ | 29,547 | |||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 750 | $ | 412 | $ | 988 | $ | - | $ | - | $ | 2,150 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 2,894 | $ | 15,665 | $ | 1,988 | $ | 2,000 | $ | 1,509 | $ | 3,341 | $ | 27,397 | |||||||||
Loans: | |||||||||||||||||||||||
Ending balance | $ | 98,026 | $ | 554,874 | $ | 30,996 | $ | 376,859 | $ | 2,570 | $ | 14,315 | $ | 1,077,640 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 29 | $ | 24,849 | $ | 7,698 | $ | 21,675 | $ | - | $ | - | $ | 54,251 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 97,997 | $ | 530,025 | $ | 23,298 | $ | 355,184 | $ | 2,570 | $ | 14,315 | $ | 1,023,389 | |||||||||
1 As of September 30, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $14.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.7 million at September 30, 2013. | |||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment for the three and nine months ended September 30, 2012, were as follows: | |||||||||||||||||||||||
Allowance for credit losses: | Commercial | Real Estate | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||
Commercial 1 | Construction | Residential | |||||||||||||||||||||
Three months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Balance at beginning of period | $ | 4,783 | $ | 23,766 | $ | 5,501 | $ | 4,141 | $ | 1,063 | $ | 1,032 | $ | 40,286 | |||||||||
Charge-offs | 2 | 355 | 909 | 1,230 | 186 | - | 2,682 | ||||||||||||||||
Recoveries | 22 | 76 | 2,202 | 219 | 134 | - | 2,653 | ||||||||||||||||
Provision (release) | -251 | -939 | -2,366 | 1,342 | 104 | 2,110 | - | ||||||||||||||||
Ending balance | $ | 4,552 | $ | 22,548 | $ | 4,428 | $ | 4,472 | $ | 1,115 | $ | 3,142 | $ | 40,257 | |||||||||
Nine months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Balance at beginning of year | $ | 5,070 | $ | 30,770 | $ | 7,937 | $ | 6,335 | $ | 884 | $ | 1,001 | $ | 51,997 | |||||||||
Charge-offs | 110 | 12,694 | 4,251 | 6,416 | 463 | - | 23,934 | ||||||||||||||||
Recoveries | 32 | 1,698 | 3,373 | 452 | 355 | - | 5,910 | ||||||||||||||||
Provision (release) | -440 | 2,774 | -2,631 | 4,101 | 339 | 2,141 | 6,284 | ||||||||||||||||
Ending balance | $ | 4,552 | $ | 22,548 | $ | 4,428 | $ | 4,472 | $ | 1,115 | $ | 3,142 | $ | 40,257 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 514 | $ | 3,113 | $ | 1,408 | $ | 2,550 | $ | - | $ | - | $ | 7,585 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 4,038 | $ | 19,435 | $ | 3,020 | $ | 1,922 | $ | 1,115 | $ | 3,142 | $ | 32,672 | |||||||||
Financing receivables: | |||||||||||||||||||||||
Ending balance | $ | 84,667 | $ | 621,715 | $ | 48,606 | $ | 436,837 | $ | 3,167 | $ | 13,297 | $ | 1,208,289 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 1,157 | $ | 56,176 | $ | 15,988 | $ | 30,919 | $ | - | $ | - | $ | 104,240 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 83,510 | $ | 565,539 | $ | 32,618 | $ | 405,918 | $ | 3,167 | $ | 13,297 | $ | 1,104,049 | |||||||||
1 As of September 30, 2012, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $19.7 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.2 million at September 30, 2012. | |||||||||||||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
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 | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Other real estate owned | 2013 | 2012 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 59,465 | $ | 89,671 | $ | 72,423 | $ | 93,290 | ||||||
Property additions | 3,015 | 7,594 | 14,196 | 26,944 | ||||||||||
Development improvements | 10 | 131 | 60 | 646 | ||||||||||
Less: | ||||||||||||||
Property disposals, net of gains/losses | 11,463 | 4,829 | 30,928 | 20,517 | ||||||||||
Period valuation adjustments | 1,961 | 4,474 | 6,685 | 12,270 | ||||||||||
Balance at end of period | $ | 49,066 | $ | 88,093 | $ | 49,066 | $ | 88,093 | ||||||
Activity in the valuation allowance was as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 30,487 | $ | 27,469 | $ | 31,454 | $ | 23,462 | ||||||
Provision for unrealized losses | 1,961 | 4,474 | 6,537 | 12,101 | ||||||||||
Reductions taken on sales | -7,571 | -2,657 | -13,305 | -6,446 | ||||||||||
Other adjustments | -290 | - | -99 | 169 | ||||||||||
Balance at end of period | $ | 24,587 | $ | 29,286 | $ | 24,587 | $ | 29,286 | ||||||
Expenses related to foreclosed assets, net of lease revenue includes: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Gain on sales, net | $ | -608 | $ | -20 | $ | -1,175 | $ | -398 | ||||||
Provision for unrealized losses | 1,961 | 4,474 | 6,537 | 12,101 | ||||||||||
Operating expenses | 1,500 | 2,071 | 4,555 | 5,886 | ||||||||||
Less: | ||||||||||||||
Lease revenue | 309 | 840 | 974 | 2,930 | ||||||||||
$ | 2,544 | $ | 5,685 | $ | 8,943 | $ | 14,659 |
Deposits
Deposits | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deposits | ' | |||||||
Deposits | ' | |||||||
Note 6 – Deposits | ||||||||
Major classifications of deposits were as follows: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Noninterest bearing demand | $ | 373,499 | $ | 379,451 | ||||
Savings | 227,823 | 216,305 | ||||||
NOW accounts | 272,632 | 286,860 | ||||||
Money market accounts | 309,066 | 323,811 | ||||||
Certificates of deposit of less than $100,000 | 299,632 | 318,844 | ||||||
Certificates of deposit of $100,000 or more | 190,471 | 191,948 | ||||||
$ | 1,673,123 | $ | 1,717,219 |
Borrowings
Borrowings | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Borrowings | ' | |||||||
Borrowings | ' | |||||||
Note 7 – Borrowings | ||||||||
The following table is a summary of borrowings as of September 30, 2013, and December 31, 2012. Junior subordinated debentures are discussed in detail in Note 8: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
Securities sold under repurchase agreements | $ | 20,719 | $ | 17,875 | ||||
FHLB advances | 55,000 | 100,000 | ||||||
Junior subordinated debentures | 58,378 | 58,378 | ||||||
Subordinated debt | 45,000 | 45,000 | ||||||
Notes payable and other borrowings | 500 | 500 | ||||||
$ | 179,597 | $ | 221,753 | |||||
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 MBS and had a carrying amount of $32.1 million at September 30, 2013, and $26.0 million at December 31, 2012. At September 30, 2013, there was no customer 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 and 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 September 30, 2013, the Bank took an advance of $55.0 million at 0.13% interest on the FHLBC stock valued at $5.5 million and collateralized by $99.9 million of loans of which $44.9 million is available for additional borrowings. This advance matured on October 1, 2013 and was replaced with short term FHLBC advances that matured in October 2013. Previous borrowing capacity at the FRB that was not used at either September 30, 2013, or December 31, 2012 was dropped by the Company in October 2013 as management determined that it was not needed given current and prospective liquidity projections. | ||||||||
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 when it matured and the senior line of credit has been 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 December 31, 2012, and September 30, 2013. 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 amounts outstanding on a timely basis. Pursuant to the Written Agreement dated July 22, 2011 between the Company and the FRB (the “Written Agreement”), the Company must receive the FRB’s approval prior to making any interest payments on the subordinated debt. | ||||||||
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 and negative covenants. At September 30, 2013, the Company was out of compliance with one of the financial covenants contained within the credit agreement. Previously, the Company had been out of compliance with two of the financial covenants. 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 amount 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 | 9 Months Ended |
Sep. 30, 2013 | |
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 costs associated with the issuance of the cumulative trust preferred securities are being amortized over 30 years. 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. The stated call period commenced on June 30, 2008 and a call can be exercised by the Company from time to time thereafter. When not in deferral, cash 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. Although nominal in amount, the costs associated with that issuance are being amortized over 30 years. 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. | |
Under the terms of the subordinated debentures issued to each of Old Second Capital Trust I and II, the Company is allowed to defer payments of interest for 20 quarterly periods without default or penalty, but such amounts will continue to accrue. Also during the deferral period, the Company generally may not pay cash dividends on or repurchase its common stock or preferred stock, including the Series B Fixed Rate Cumulative Perpetual Preferred Stock (the “Series B Preferred Stock”), as discussed in Note 15. On August 31, 2010, the Company announced that it elected to defer regularly scheduled interest payments on the $58.4 million of junior subordinated debentures. Because of the deferral on the subordinated debentures, the trusts will defer regularly scheduled dividends on the related trust preferred securities. Both of the debentures issued by the Company are recorded on the consolidated balance sheets as junior subordinated debentures and the related interest expense for each issuance is included in the consolidated statements of operations. The total accumulated unpaid interest on the junior subordinated debentures including compounded interest from July 1, 2010 on the deferred payments, totals $15.7 million at September 30, 2013. |
LongTerm_Incentive_Plan
Long-Term Incentive Plan | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Long-Term Incentive Plan | ' | |||||||||||
Long-Term Incentive Plan | ' | |||||||||||
Note 9 –Long-Term Incentive Plan | ||||||||||||
The Long-Term Incentive Plan (the “Incentive Plan”) authorizes the issuance of up to 1,908,332 shares of the Company’s common stock, including the granting of qualified stock options, non-qualified stock options, restricted stock, restricted stock units, and stock appreciation rights. Total shares issuable under the Incentive Plan were 45,368 at September 30, 2013. Stock based awards may be granted to selected directors and officers or employees under the Incentive Plan at the discretion of the board of directors. There were no stock options granted in the first nine months of 2013 or 2012. All outstanding stock options were granted for a term of ten years. | ||||||||||||
Generally, restricted stock and restricted stock units vest three years from the grant date, but the Company’s board of directors has discretionary authority to change some terms including the amount of time until vest date. Awards under the Incentive Plan become fully vested upon a merger or change in control of the Company. | ||||||||||||
Total compensation cost that has been charged against income for the Incentive Plan was $57,000 in the third quarter of 2013 and $123,000 in the first nine months of 2013. Total compensation cost that has been charged against income for those plans was $67,000 in the third quarter of 2012 and $220,000 in the first nine months of 2012. | ||||||||||||
There were no stock options exercised during the third quarter of 2013 or 2012. There is no unrecognized compensation cost related to nonvested stock options as all stock options of the Company’s common stock have vested. | ||||||||||||
A summary of stock option activity in the Incentive Plan for the nine months ending September 30, 2013, is as follows: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | |||||||||||
Exercise | Contractual | Aggregate | ||||||||||
Shares | Price | Term (years) | Intrinsic Value | |||||||||
Beginning outstanding | 409,500 | $ | 28.75 | |||||||||
Canceled | -2,000 | 32.59 | ||||||||||
Ending outstanding | 407,500 | $ | 28.74 | 2.28 | $ | - | ||||||
Exercisable at end of period | 407,500 | $ | 28.74 | 2.28 | $ | - | ||||||
Under the Incentive Plan, restricted stock was granted beginning in 2005 and the grant of restricted stock units began in February 2009. Both of these restricted awards have voting and dividend rights and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Further, in first quarter 2013 after completion on Treasury’s auction of the Old Second Bancorp Series B Preferred Stock at a discount, 45,000 unvested restricted stock shares previously awarded were recaptured in addition to 133,943 restricted stock shares that were fully vested. These recaptures provided an income statement benefit of $612,000 included in other noninterest income during the second quarter of 2013. There were no restricted awards issued during the third quarter of 2013 and 155,500 restricted awards issued for the nine months ending September 30, 2013. There were no restricted awards issued during the third quarter of 2012 and 60,000 restricted awards issued for the nine months ending September 30, 2012. Compensation expense is recognized over the vesting period of the restricted award based on the market value of the award at issue date. | ||||||||||||
A summary of changes in the Company’s nonvested restricted awards for the nine months ending September 30, 2013, is as follows: | ||||||||||||
September 30, 2013 | ||||||||||||
Weighted | ||||||||||||
Restricted | Average | |||||||||||
Stock Shares | Grant Date | |||||||||||
and Units | Fair Value | |||||||||||
Nonvested at January 1 | 327,920 | $ | 2.21 | |||||||||
Granted | 155,500 | 3.28 | ||||||||||
Vested | -241,920 | 2.5 | ||||||||||
Forfeited | -11,000 | 2.47 | ||||||||||
Recaptured after Series B auction | -45,000 | 1.25 | ||||||||||
Nonvested at September 30 | 185,500 | $ | 2.95 | |||||||||
Total unrecognized compensation cost of restricted awards was $411,000 as of September 30, 2013, which is expected to be recognized over a weighted-average period of 2.46 years. Total unrecognized compensation cost of restricted awards was $161,000 as of September 30, 2012, which was expected to be recognized over a weighted-average period of 0.93 years. | ||||||||||||
Earnings_loss_Per_Share
Earnings (loss) Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings (loss) Per Share | ' | |||||||||||||
Earnings (loss) Per Share | ' | |||||||||||||
Note 10 –Earnings (loss) Per Share | ||||||||||||||
The earnings (loss) per share – both basic and diluted – are included below as of September 30 (in thousands except for share data): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Basic earnings (loss) per share: | ||||||||||||||
Weighted-average common shares outstanding | 13,885,884 | 14,084,328 | 13,947,606 | 14,070,783 | ||||||||||
Weighted-average common shares less stock based awards | 13,870,884 | 13,883,008 | 13,895,136 | 13,873,819 | ||||||||||
Weighted-average common shares stock based awards | 231,152 | 327,920 | 217,107 | 332,198 | ||||||||||
Net income (loss) | $ | 72,924 | $ | 120 | $ | 81,872 | $ | -1,596 | ||||||
Dividends and accretion of discount on preferred shares | 1,323 | 1,255 | 3,917 | 3,716 | ||||||||||
Net income (loss) available to common shareholders | 71,601 | -1,135 | 77,955 | -5,312 | ||||||||||
Undistributed earnings (loss) | 71,601 | -1,135 | 77,955 | -5,312 | ||||||||||
Basic earnings (loss) per share common undistributed earnings (loss) | 5.08 | -0.08 | 5.52 | -0.37 | ||||||||||
Basic earnings (loss) per share | $ | 5.08 | $ | -0.08 | $ | 5.52 | $ | -0.37 | ||||||
Diluted earnings (loss) per share: | ||||||||||||||
Weighted-average common shares outstanding | 13,885,884 | 14,084,328 | 13,947,606 | 14,070,783 | ||||||||||
Dilutive effect of restricted shares1 | 216,152 | 126,600 | 164,637 | 135,234 | ||||||||||
Diluted average common shares outstanding | 14,102,036 | 14,210,928 | 14,112,243 | 14,206,017 | ||||||||||
Net earnings (loss) available to common stockholders | $ | 71,601 | $ | -1,135 | $ | 77,955 | $ | -5,312 | ||||||
Diluted earnings (loss) per share | $ | 5.08 | $ | -0.08 | $ | 5.52 | $ | -0.37 | ||||||
Number of antidilutive options excluded from the diluted earnings per share calculation | 1,224,839 | 1,286,839 | 1,224,839 | 1,286,839 | ||||||||||
1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory_Capital_Matters
Regulatory & Capital Matters | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Regulatory & Capital Matters | ' | ||||||||||||||||
Regulatory & Capital Matters | ' | ||||||||||||||||
Note 11 – Regulatory & Capital Matters | |||||||||||||||||
On May 16, 2011, the Bank, the wholly-owned banking subsidiary of the Company, entered into a Consent Order with the Office of the Comptroller of the Currency (the “OCC”). Pursuant to the Consent Order, the Bank has agreed to take certain actions and operate in compliance with the Consent Order’s provisions during its terms. On October 17, 2013, the OCC terminated the Consent Order. | |||||||||||||||||
The Bank has exceeded both capital ratio objectives in the now terminated Consent Order since June 30, 2011. At September 30, 2013, the Bank’s Tier 1 capital leverage ratio was 11.08%, up 141 basis points from December 31, 2012, and 233 basis points above the 8.75% objective the Bank had agreed to maintain in the Consent Order. The Bank’s total capital ratio was 17.08%, up 222 basis points from December 31, 2012, and 583 basis points above the objective of 11.25%. | |||||||||||||||||
Even though the Consent Order has been terminated, the Bank is still subject to the risk-based capital regulatory guidelines, which include the methodology for calculating the risk-weighting of the Bank’s assets, developed by 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%). The Bank currently exceeds those thresholds. | |||||||||||||||||
On July 22, 2011, the Company entered into a Written Agreement with the FRB. Pursuant to the Written Agreement, the Company has agreed to take certain actions and operate in compliance with the Written Agreement’s provisions during its term. Although the Consent Order was terminated, the Written Agreement is still in effect until terminated, modified or rescinded by the FRB. | |||||||||||||||||
Under the terms of the Written Agreement, the Company is required to, among other things: (i) serve as a source of strength to the Bank, including ensuring that the Bank complied with the now terminated Consent Order it entered into with the OCC on May 16, 2011; (ii) refrain from declaring or paying any dividend, or taking dividends or other payments representing a reduction in the Bank’s capital, each without the prior written consent of the FRB and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System (the “Director”); (iii) refrain, along with its nonbank subsidiaries, from making any distributions on subordinated debentures or trust preferred securities without the prior written consent of the FRB and the Director; (iv) refrain, along with its nonbank subsidiaries, from incurring, increasing or guaranteeing any debt, and from purchasing or redeeming any shares of its capital stock, each without the prior written consent of the FRB; (v) provide the FRB with a written plan to maintain sufficient capital at the Company on a consolidated basis; (vi) provide the FRB with a projection of the Company’s planned sources and uses of cash; (vii) comply with certain regulatory notice provisions pertaining to the appointment of any new director or senior executive officer, or the changing of responsibilities of any senior executive officer; and (viii) comply with certain regulatory restrictions on indemnification and severance payments. The Company is also required to submit certain reports to the FRB with respect to the foregoing requirements. | |||||||||||||||||
Bank holding companies are required to maintain minimum levels of capital in accordance with FRB capital guidelines. The general bank and holding company capital adequacy guidelines are described in the accompanying table, as are the capital ratios of the Company and the Bank, as of September 30, 2013, and December 31, 2012. These ratios are calculated on a consistent basis with the ratios disclosed in the most recent filings with the regulatory agencies. | |||||||||||||||||
In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”). The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements as well as to bank and savings and loan holding companies. The Basel III Rules not only increase selected minimum regulatory capital ratios, but also introduce a new Common Equity Tier 1 capital ratio and the concept of a capital conservation buffer. The Basel III rules also revise the criteria that certain instruments must meet to qualify as Tier 1 or Tier 2 capital. A number of instruments that now qualify as Tier 1 capital will not qualify under the Basel III rules. The Basel III Rules also permit smaller banking organizations to retain, through a one-time election, the existing treatment of accumulated other comprehensive income. The Basel III Rules have maintained the general structure of the current prompt corrective action framework while incorporating the increased requirements. The Basel III Rules also revise prompt corrective action guidelines to add the Common Equity Tier 1 capital ratio. Generally, the new Basel III Rules become effective on January 1, 2015, although parts of the Basel III Rules will be phased in through 2019. Management is reviewing the new rules to assess their impact on the Company. | |||||||||||||||||
At September 30, 2013, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “adequately capitalized” under current regulatory defined capital ratios. The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Generally, if adequately capitalized, regulatory approval is not required to accept brokered deposits. | |||||||||||||||||
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 | ||||||||||||
Septembr 30, 2013 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Consolidated | $ | 198,822 | 15.15% | $ | 104,989 | 8.00% | N/A | N/A | |||||||||
Old Second Bank | 224,171 | 17.08 | 104,998 | 8 | 131,248 | 10 | |||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||
Consolidated | 132,129 | 10.07 | 52,484 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 207,607 | 15.82 | 52,492 | 4 | 78,738 | 6 | |||||||||||
Tier 1 capital to average assets | |||||||||||||||||
Consolidated | 132,129 | 7.11 | 74,334 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 207,607 | 11.08 | 74,948 | 4 | 93,685 | 5 | |||||||||||
December 31, 2012 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Consolidated | $ | 189,466 | 13.62% | $ | 111,287 | 8.00% | N/A | N/A | |||||||||
Old Second Bank | 206,496 | 14.86 | 111,169 | 8 | 138,961 | 10 | |||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||
Consolidated | 94,817 | 6.81 | 55,693 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 188,873 | 13.59 | 55,592 | 4 | 83,388 | 6 | |||||||||||
Tier 1 capital to average assets | |||||||||||||||||
Consolidated | 94,817 | 4.85 | 78,200 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 188,873 | 9.67 | 78,127 | 4 | 97,659 | 5 | |||||||||||
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 continues to qualify as Tier 2 regulatory capital. 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. As of September 30, 2013, trust preferred security proceeds of $51.5 million qualified as Tier 1 regulatory capital and $5.1 million qualified as Tier 2 regulatory capital. As of December 31, 2012, trust preferred proceeds of $24.6 million qualified as Tier 1 regulatory capital and $32.0 million qualified as Tier 2 regulatory capital. | |||||||||||||||||
Dividend Restrictions and Deferrals | |||||||||||||||||
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. Other dividend payment restrictions on the Bank and the Company as included in the Written Agreement preclude dividend payment without prior regulatory approval. | |||||||||||||||||
As discussed in Note 8, as of September 30, 2013, 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. Therefore, the Company will not be able to pay dividends on its common stock until all deferred interest on these debentures has been paid in full. The total amount of such deferred and unpaid interest as of September 30, 2013, was $15.7 million. | |||||||||||||||||
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 Preferred Stock, which the Company announced that it would begin deferring on August 31, 2010. Therefore, in addition to paying all the accrued and unpaid distributions on the debentures set forth above, the Company must also fully pay all deferred and unpaid dividends on the Series B Preferred Stock before it may reinstate the payment of dividends on the common stock. The total amount of deferred Series B Preferred Stock dividends as of September 30, 2013, was $12.3 million. In addition, the Written Agreement contains restrictions on dividend payments. | |||||||||||||||||
Further detail on the subordinated debentures, the Series B Preferred Stock and the deferral of interest and dividends thereon is described in Notes 8 and 15. |
Fair_Value_Option_and_Fair_Val
Fair Value Option and Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Option and Fair Value Measurements | ' | |||||||||||||||||
Fair Value Option and Fair Value Measurements | ' | |||||||||||||||||
Note 12 – Fair Value Option and 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 quarters ended September 30, 2013, and 2012 there were no significant transfers between levels. | ||||||||||||||||||
Securities (available-for-sale and held-to-maturity) are valued by a third party pricing agent and both the market and income valuation approaches are implemented. 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. | ||||||||||||||||||
· Other inactive government-sponsored agency securities and auction rate asset backed securities are priced using consensus pricing and dealer quotes. | ||||||||||||||||||
· 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 and could be valued with Level 3 measurements. | ||||||||||||||||||
· CDOs are collateralized by trust preferred security issuances of other financial institutions. CDOs are valued utilizing a discounted cash flow analysis. To reflect an appropriate fair value measurement, management included a risk premium adjustment to provide an estimate of the amount that a market participant would demand because of uncertainty in cash flows in the discounted cash flow analysis. Changes in unobservable inputs such as future cash flows, prepayment speeds and market rates which may result in a significantly higher or lower fair value measurement. Due to the significant amount of unobservable inputs for the security and limited market activity, these securities are considered Level 3 valuations. | ||||||||||||||||||
· Asset-backed securities (see above) are also priced using a single expected cash flow stream model using trades, covers, bids, offers and price for similar bonds as well as prepayment and default projections based on historical statistics of the underlying collateral and current market data. As some of asset-backed securities are auction rate securities, there is additional liquidity risk estimated by the Company. Therefore, the valuation of some asset-backed securities are considered Level 3 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 in 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 September 30, 2013, and December 31, 2012, respectively, measured by the Company at fair value on a recurring basis: | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | ||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||
U.S. Treasury | $ | 1,548 | $ | - | $ | - | $ | 1,548 | ||||||||||
U.S. government agencies | - | 1,693 | - | 1,693 | ||||||||||||||
States and political subdivisions | - | 19,709 | 132 | 19,841 | ||||||||||||||
Corporate Bonds | - | 22,200 | - | 22,200 | ||||||||||||||
Collateralized mortgage obligations | - | 48,125 | - | 48,125 | ||||||||||||||
Asset-backed securities | 121,772 | 147,212 | 268,984 | |||||||||||||||
Collateralized debt obligations | - | - | 11,087 | 11,087 | ||||||||||||||
Loans held-for-sale | - | 3,129 | - | 3,129 | ||||||||||||||
Mortgage servicing rights | - | - | 5,456 | 5,456 | ||||||||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 584 | -13 | 571 | ||||||||||||||
Other assets (Forward MBS) | - | 69 | - | 69 | ||||||||||||||
Total | $ | 1,548 | $ | 217,281 | $ | 163,874 | $ | 382,703 | ||||||||||
Liabilities: | ||||||||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 584 | $ | - | $ | 584 | ||||||||||
Other liabilities (Interest rate lock commitments to borrowers) | - | 1 | - | 1 | ||||||||||||||
Total | $ | - | $ | 585 | $ | - | $ | 585 | ||||||||||
December 31, 2012 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | ||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||
U.S. Treasury | $ | 1,507 | $ | - | $ | - | $ | 1,507 | ||||||||||
U.S. government agencies | - | 49,850 | - | 49,850 | ||||||||||||||
U.S. government agency mortgage-backed | - | 128,738 | - | 128,738 | ||||||||||||||
States and political subdivisions | - | 15,723 | 132 | 15,855 | ||||||||||||||
Corporate Bonds | - | 36,886 | - | 36,886 | ||||||||||||||
Collateralized mortgage obligations | - | 169,600 | - | 169,600 | ||||||||||||||
Asset-backed securities | 167,493 | - | 167,493 | |||||||||||||||
Collateralized debt obligations | - | - | 9,957 | 9,957 | ||||||||||||||
Loans held-for-sale | - | 9,571 | - | 9,571 | ||||||||||||||
Mortgage servicing rights | - | - | 4,116 | 4,116 | ||||||||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 1,349 | -47 | 1,302 | ||||||||||||||
Other assets (Forward MBS) | - | 567 | - | 567 | ||||||||||||||
Total | $ | 1,507 | $ | 579,777 | $ | 14,158 | $ | 595,442 | ||||||||||
Liabilities: | ||||||||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 1,349 | $ | - | $ | 1,349 | ||||||||||
Other liabilities (Interest rate lock commitments to borrowers) | - | 5 | - | 5 | ||||||||||||||
Total | $ | - | $ | 1,354 | $ | - | $ | 1,354 | ||||||||||
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are as follows: | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Investment securities available-for- sale | ||||||||||||||||||
Collateralized Debt | Asset-backed | States and | Mortgage | Interest Rate | ||||||||||||||
Obligations | Political | Servicing | Swap | |||||||||||||||
Subdivisons | Rights | Valuation | ||||||||||||||||
Beginning balance January 1, 2013 | $ | 9,957 | $ | - | $ | 132 | $ | 4,116 | $ | -47 | ||||||||
Transfers into Level 3 | - | - | - | - | - | |||||||||||||
Transfers out of Level 3 | - | - | - | - | - | |||||||||||||
Total gains or losses | ||||||||||||||||||
Included in earnings (or changes in net assets) | 178 | 485 | - | 81 | 34 | |||||||||||||
Included in other comprehensive income | 1,898 | -1,487 | - | - | - | |||||||||||||
Purchases, issuances, sales, and settlements | ||||||||||||||||||
Purchases | - | 168,753 | - | - | - | |||||||||||||
Issuances | - | - | - | 1,259 | - | |||||||||||||
Settlements | -946 | - | - | - | - | |||||||||||||
Sales | - | -20,539 | - | - | - | |||||||||||||
Ending balance June 30, 2013 | $ | 11,087 | $ | 147,212 | $ | 132 | $ | 5,456 | $ | -13 | ||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||
Investment securities | ||||||||||||||||||
Collateralized Debt | States and | Mortgage | Interest Rate | |||||||||||||||
Obligations | Political | Servicing | Swap | |||||||||||||||
Subdivisons | Rights | Valuation | ||||||||||||||||
Beginning balance January 1, 2012 | $ | 9,974 | $ | 138 | $ | 3,487 | $ | -80 | ||||||||||
Transfers into Level 3 | - | - | - | - | ||||||||||||||
Transfers out of Level 3 | - | - | - | - | ||||||||||||||
Total gains or losses | ||||||||||||||||||
Included in earnings (or changes in net assets) | 125 | - | -1,315 | 19 | ||||||||||||||
Included in other comprehensive income | -441 | - | - | - | ||||||||||||||
Purchases, issuances, sales, and settlements | ||||||||||||||||||
Purchases | - | - | - | - | ||||||||||||||
Issuances | - | - | 1,431 | - | ||||||||||||||
Settlements | -115 | - | - | - | ||||||||||||||
Expirations | - | - | - | - | ||||||||||||||
Ending balance September 30, 2012 | $ | 9,543 | $ | 138 | $ | 3,603 | $ | -61 | ||||||||||
The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of September 30, 2013: | ||||||||||||||||||
Measured at fair value | Fair Value | Valuation Methodology | Unobservable Inputs | Range of Input | Weighted | |||||||||||||
on a recurring basis: | Average | |||||||||||||||||
of Inputs | ||||||||||||||||||
Collateralized Debt Obligations | $ 11,087 | Discounted Cash Flow | Discount Rate | Libor + | 5.70% | |||||||||||||
5.25-6.25% | ||||||||||||||||||
Prepayment % | 0%-76.0% | 13.50% | ||||||||||||||||
Default range | 3.0%-100.0% | 15.70% | ||||||||||||||||
Mortgage Servicing rights | 5,456 | Discounted Cash Flow | Discount Rate | 10.00% | 10.00% | |||||||||||||
Prepayment Speed | 10.80% | 10.80% | ||||||||||||||||
Interest Rate Swap Valuation | -13 | Management estimate | Probability of Default | 5%-20% | 13.40% | |||||||||||||
of credit risk exposure | ||||||||||||||||||
Asset-backed securities | 147,212 | Discounted Cash Flow | Credit Risk Premium | 1.00%-1.5% | 1.30% | |||||||||||||
Liquidity Risk Premium | 1.00% | 1.00% | ||||||||||||||||
The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2012: | ||||||||||||||||||
Measured at fair value | Fair Value | Valuation Methodology | Unobservable | Range of Input | Weighted | |||||||||||||
on a recurring basis: | Inputs | Average | ||||||||||||||||
of Inputs | ||||||||||||||||||
Collateralized Debt Obligations | $ 9,957 | Discounted Cash Flow | Discount Rate | Libor + 6%-7% | 6.40% | |||||||||||||
Prepayment % | 0%-76% | 16.40% | ||||||||||||||||
Default range | 3.1%-100% | 19.10% | ||||||||||||||||
Mortgage Servicing rights | 4,116 | Discounted Cash Flow | Discount Rate | 10.50% | 10.50% | |||||||||||||
Prepayment Speed | 15.80% | 15.80% | ||||||||||||||||
Interest Rate Swap Valuation | -47 | Management estimate | Probability of | 2%-31% | 17.90% | |||||||||||||
of credit risk exposure | Default | |||||||||||||||||
The $132,000 on the state and political subdivisions line at September 30, 2013, 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. The $147.2 million on the asset – backed securities line at September 30, 2013, under Level 3 represents auction rate securities held at that date. These are categorized as Level 3 based on the Company’s approach of valuing the securities based on pricing from a limited number of brokers and that the pricing 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 September 30, 2013, and December 31, 2012, respectively, the following tables provide the level of valuation assumptions used to determine each valuation and the carrying value of the related assets: | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Impaired loans1 | $ | - | $ | - | $ | 5,653 | $ | 5,653 | ||||||||||
Other real estate owned, net2 | - | - | 49,066 | 49,066 | ||||||||||||||
Total | $ | - | $ | - | $ | 54,719 | $ | 54,719 | ||||||||||
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 $7.8 million, with a valuation allowance of $2.1 million, resulting in a decrease of specific allocations within the allowance for loan losses of $4.1 million for the nine months ending September 30, 2013. | ||||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $49.1 million, which is made up of the outstanding balance of $75.8 million, net of a valuation allowance of $24.6 million and participations of $2.1 million, at September 30, 2013. | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Impaired loans1 | $ | - | $ | - | $ | 21,543 | $ | 21,543 | ||||||||||
Other real estate owned, net2 | - | - | 72,423 | 72,423 | ||||||||||||||
Total | $ | - | $ | - | $ | 93,966 | $ | 93,966 | ||||||||||
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 $27.8 million, with a valuation allowance of $6.3 million, resulting in a decrease of specific allocations within the provision for loan losses of $6.8 million for the year ending December 31, 2012. | ||||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $72.4 million, which is made up of the outstanding balance of $109.7 million, net of a valuation allowance of $31.4 million and participations of $5.9 million, at December 31, 2012, resulting in a charge to expense of $16.4 million for the year ended December 31, 2012. | ||||||||||||||||||
that a market participant would demand because of uncertainty in cash flows in the discounted cash flow analysis. Changes in unobservable inputs such as future cash flows, prepayment speeds and market rates which may result in a significantly higher or lower fair value measurement. Due to the significant amount of unobservable inputs for the security and limited market activity, these securities are considered Level 3 valuations. |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
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 in the event of nonperformance by the other party to the financial instruments for loan commitments and letters of credit are 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 Company 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 $3.2 million in investment securities pledged to support interest rate swap activity with three correspondent financial institutions at September 30, 2013. The Bank had $7.4 million in investment securities pledged to support interest rate swap activity with two correspondent financial institutions at December 31, 2012. 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 effectively 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 September 30, 2013, the notional amount of non-hedging interest rate swaps was $80.3 million with a weighted average maturity of 1.3 years. At December 31, 2012, the notional amount of non-hedging interest rate swaps was $82.1 million with a weighted average maturity of 1.3 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 by entering into contracts for future deliveries of loans as well as selling forward MBS 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 income. Fair values are estimated based on observable changes in mortgage interest rates including MBS prices from the date of the commitment. | ||||||||||||||||||||||||||
The following table presents derivatives not designated as hedging instruments as of September 30, 2013, 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 | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||
Contractual | Location | Location | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||
Interest rate swap contracts net of credit valuation | $ | 80,323 | Other Assets | $ | 571 | Other Liabilities | $ | 584 | ||||||||||||||||||
Commitments1 | 211,635 | Other Assets | 69 | N/A | - | |||||||||||||||||||||
Forward contracts2 | 12,573 | N/A | - | Other Liabilities | 1 | |||||||||||||||||||||
Total | $ | 640 | $ | 585 | ||||||||||||||||||||||
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, 2012. | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
Notional or | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||
Contractual | Location | Location | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||
Interest rate swap contracts net of credit valuation | $ | 82,097 | Other Assets | $ | 1,302 | Other Liabilities | $ | 1,349 | ||||||||||||||||||
Commitments1 | 226,135 | Other Assets | 567 | N/A | - | |||||||||||||||||||||
Forward contracts2 | 28,000 | N/A | - | Other Liabilities | 5 | |||||||||||||||||||||
Total | $ | 1,869 | $ | 1,354 | ||||||||||||||||||||||
1Includes unused loan commitments and interest rate lock commitments. | ||||||||||||||||||||||||||
2Includes forward mortgage backed securities 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 September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
The following table is a summary of financial instrument commitments (in thousands): | ||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Fixed | Variable | Total | Fixed | Variable | Total | |||||||||||||||||||||
Letters of credit: | ||||||||||||||||||||||||||
Borrower: | ||||||||||||||||||||||||||
Financial standby | $ | 5 | $ | 3,846 | $ | 3,851 | $ | 5 | $ | 3,378 | $ | 3,383 | ||||||||||||||
Commercial standby | - | 51 | 51 | - | 51 | 51 | ||||||||||||||||||||
Performance standby | 1,607 | 2,671 | 4,278 | 1,630 | 4,217 | 5,847 | ||||||||||||||||||||
1,612 | 6,568 | 8,180 | 1,635 | 7,646 | 9,281 | |||||||||||||||||||||
Non-borrower: | ||||||||||||||||||||||||||
Performance standby | 240 | 1,089 | 1,329 | 240 | 1,125 | 1,365 | ||||||||||||||||||||
240 | 1,089 | 1,329 | 240 | 1,125 | 1,365 | |||||||||||||||||||||
Total letters of credit | $ | 1,852 | $ | 7,657 | $ | 9,509 | $ | 1,875 | $ | 8,771 | $ | 10,646 |
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
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 fair value of the CDOs included in investment securities includes a risk premium adjustment to provide an estimate of the amount that a market participant would demand because of uncertainty in cash flows and the methods for determining fair value of securities as discussed in detail in Note 12. As the only market for FHLBC stock is through stock redemption with FHLBC at par, it is not practical to determine any other fair value for the FHLBC investment. 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 items is not considered material. | |||||||||||||||||||||
The carrying amount and estimated fair values of financial instruments were as follows: | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Carrying | Fair | ||||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash, due from banks and federal funds sold | $ | 47,486 | $ | 47,486 | $ | 47,486 | $ | - | $ | - | |||||||||||
Interest bearing deposits with financial institutions | 32,586 | 32,586 | 32,586 | - | - | ||||||||||||||||
Securities available-for-sale | 373,478 | 373,478 | 1,548 | 213,499 | 158,431 | ||||||||||||||||
Securities held-to-maturity | 258,101 | 260,421 | - | 260,421 | - | ||||||||||||||||
FHLBC and FRB Stock | 10,292 | 10,292 | - | 10,292 | - | ||||||||||||||||
Bank-owned life insurance | 55,005 | 55,005 | - | 55,005 | - | ||||||||||||||||
Loans held for sale | 3,129 | 3,129 | - | 3,129 | - | ||||||||||||||||
Loans, net | 1,048,093 | 1,047,557 | - | - | 1,047,557 | ||||||||||||||||
Accrued interest receivable | 4,473 | 4,473 | - | 4,473 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Noninterest bearing deposits | $ | 373,499 | $ | 373,499 | $ | 373,499 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 1,299,624 | 1,302,082 | - | 1,302,082 | - | ||||||||||||||||
Securities sold under repurchase agreements | 20,719 | 20,719 | - | 20,719 | - | ||||||||||||||||
Other short-term borrowings | 55,000 | 55,000 | - | 55,000 | - | ||||||||||||||||
Junior subordinated debentures | 58,378 | 63,480 | 37,657 | 25,823 | - | ||||||||||||||||
Subordinated debenture | 45,000 | 39,193 | - | 39,193 | - | ||||||||||||||||
Note payable and other borrowings | 500 | 415 | - | 415 | - | ||||||||||||||||
Borrowing interest payable | 15,676 | 15,676 | 9,305 | 6,371 | - | ||||||||||||||||
Deposit interest payable | 837 | 837 | - | 837 | - | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Carrying | Fair | ||||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash, due from banks and federal funds sold | $ | 44,221 | $ | 44,221 | $ | 44,221 | $ | - | $ | - | |||||||||||
Interest bearing deposits with financial institutions | 84,286 | 84,286 | 84,286 | - | - | ||||||||||||||||
Securities available-for-sale | 579,886 | 579,886 | 1,507 | 568,290 | 10,089 | ||||||||||||||||
FHLBC and FRB Stock | 11,202 | 11,202 | - | 11,202 | - | ||||||||||||||||
Bank-owned life insurance | 54,203 | 54,203 | - | 54,203 | - | ||||||||||||||||
Loans held-for-sale | 9,571 | 9,571 | - | 9,571 | - | ||||||||||||||||
Loans, net | 1,111,453 | 1,118,711 | - | - | 1,118,711 | ||||||||||||||||
Accrued interest receivable | 5,252 | 5,252 | - | 5,252 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Noninterest bearing deposits | $ | 379,451 | $ | 379,451 | $ | 379,451 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 1,337,768 | 1,347,603 | - | 1,347,603 | - | ||||||||||||||||
Securities sold under repurchase agreements | 17,875 | 17,875 | - | 17,875 | - | ||||||||||||||||
Other short-term borrowings | 100,000 | 100,000 | - | 100,000 | |||||||||||||||||
Junior subordinated debentures | 58,378 | 38,308 | 22,725 | 15,583 | - | ||||||||||||||||
Subordinated debenture | 45,000 | 28,206 | - | 28,206 | - | ||||||||||||||||
Note payable and other borrowings | 500 | 302 | - | 302 | - | ||||||||||||||||
Borrowing interest payable | 11,740 | 11,740 | 6,946 | 4,794 | - | ||||||||||||||||
Deposit interest payable | 1,006 | 1,006 | - | 1,006 | - |
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock | ' |
Preferred Stock | ' |
Note 15 – Preferred Stock | |
The Series B Preferred Stock was issued as part of the Treasury’s Troubled Asset Relief Program and Capital Purchase Program ( the “CPP”). as implemented by the Treasury. The Series B Preferred 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. Concurrent with issuing the Series B Preferred 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. | |
The Company allocated the $73 million in proceeds received from the Treasury in the first quarter of 2009 between the Series B Preferred Stock and the warrants that were issued. The warrants were classified 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 Preferred Stock and the warrants as part of the allocation process in the amounts of $68.2 million and $4.8 million, respectively. | |
As discussed in Note 11, on August 31, 2010, the Company announced that it would begin deferring quarterly cash dividends on its outstanding Series B Preferred Stock. Further, as discussed in Note 8 and Note 11, the Company has elected to defer interest payments on certain of its subordinated debentures. In quarters prior to first quarter 2013, during the period in which preferred stock dividends were deferred such dividends continued to be declared and accrued. However, if the Company fails to pay dividends for an aggregate of six quarters on the Series B Preferred Stock, whether or not consecutive, the holders 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 Preferred Stock also prevent the Company from paying cash dividends or generally repurchasing its common stock while Series B Preferred Stock dividends are in arrears. The total amount of unpaid and deferred Series B Preferred Stock dividends as of September 30, 2013, was $12.3 million. | |
All of the Series B Preferred Stock held by Treasury was sold to third parties, including certain of our directors, in auctions that were completed in the first quarter of 2013. The warrants were also sold at a subsequent auction. At December 31, 2012, the Company carried $71.9 million of Series B Preferred Stock in total stockholders equity. At September 30, 2013, the Company carried $72.7 million of Series B Preferred Stock in total stockholders equity. | |
As a result of the completed auctions, the Company’s Board elected to stop accruing the dividend on the Series B Preferred Stock in first quarter 2013. Previously, the Company had accrued the dividend on the Series B Preferred Stock quarterly throughout the deferral period. Given the discount reflected in the results of the auction, the board believes that the Company will likely be able to repurchase the Series B Preferred Stock in the future at a price less than the face amount of the Series B Preferred Stock plus accrued and unpaid dividends. Therefore, under GAAP, the Company did not fully accrue the dividend on the Series B Preferred Stock in the first quarter and did not accrue for it in subsequent quarters. The Company will continue to evaluate whether accruing dividends on the Series B Preferred Stock is appropriate in future periods. Pursuant to the terms of the Series B Preferred Stock, the dividends paid on the Series B Preferred Stock will increase from 5% to 9% in 2014. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
Note 16 –Income Taxes | |||||||||||
Income tax expense (benefit) for year to date September 30, 2013 and September 30, 2012 was as follows: | |||||||||||
9/30/13 | 9/30/12 | ||||||||||
Current federal | $ | 129 | $ | - | |||||||
Current state | 35 | - | |||||||||
Deferred federal | 2,935 | (643 | ) | ||||||||
Deferred state | 1,049 | (552 | ) | ||||||||
Change in valuation allowance | (74,145 | ) | 1,195 | ||||||||
$ | (69,997 | ) | $ | - | |||||||
The following were the components of the deferred tax assets and liabilities as of September 30, 2013 and December 31, 2012: | |||||||||||
9/30/13 | 12/31/12 | ||||||||||
Allowance for loan losses | $ | 13,700 | $ | 18,236 | |||||||
Deferred compensation | 719 | 679 | |||||||||
Amortization of core deposit intangible assets | 1,484 | 965 | |||||||||
Goodwill amortization/impairment | 15,645 | 16,796 | |||||||||
Stock option expense | 608 | 785 | |||||||||
OREO write downs | 11,072 | 16,632 | |||||||||
Federal net operating loss (“NOL”) carryforward | 26,370 | 20,736 | |||||||||
State net operating loss (“NOL”) carryforward | 11,434 | 10,186 | |||||||||
Deferred tax credit | 1,444 | 1,444 | |||||||||
Other assets | 598 | 585 | |||||||||
Total deferred tax assets | 83,074 | 87,044 | |||||||||
Accumulated depreciation on premises and equipment | (946 | ) | (1,063 | ) | |||||||
Accretion on securities | (13 | ) | (122 | ) | |||||||
Mortgage servicing rights | (2,415 | ) | (1,819 | ) | |||||||
State tax benefits | (6,982 | ) | (7,315 | ) | |||||||
Other liabilities | (194 | ) | (217 | ) | |||||||
Total deferred tax liabilities | (10,550 | ) | (10,536 | ) | |||||||
Net deferred tax asset before valuation allowance | 72,524 | 76,508 | |||||||||
Tax effect on net unrealized losses on securities | 8,704 | 928 | |||||||||
Valuation allowance | (2,363 | ) | (76,508 | ) | |||||||
Net deferred tax asset | $ | 78,865 | $ | 928 | |||||||
At September 30, 2013, the Company had $75.3 million federal net operating loss carryforward of which, $25.3 million expires in 2030, $31.4 million expires in 2031, $8.6 million expires in 2032, and $10.0 million expires in 2033. The Company had $120.3 million state net operating loss carryforward of which, $90.9 million expires in 2025, and $29.4 million expires in 2021. In addition, the Company had $1.4 million alternative minimum tax credit that can be carried forward indefinitely. | |||||||||||
The components of the provision for deferred income tax expense (benefit) were as follows: | |||||||||||
9/30/13 | 9/30/12 | ||||||||||
Provision for loan losses | $ | 4,536 | $ | 5,731 | |||||||
Deferred Compensation | -40 | 24 | |||||||||
Amortization of core deposit intangible assets | -519 | (204 | ) | ||||||||
Stock option expense | 177 | 358 | |||||||||
OREO write downs | 5,560 | (4,358 | ) | ||||||||
Federal net operating loss carryforward | -5,634 | (2,384 | ) | ||||||||
State net operating loss carryforward | -1,248 | (852 | ) | ||||||||
Depreciation | -117 | (210 | ) | ||||||||
Net premiums and discounts on securities | -109 | 85 | |||||||||
Mortgage servicing rights | 596 | 55 | |||||||||
Goodwill amortization/impairment | 1,151 | 1,134 | |||||||||
State tax benefits | -333 | 154 | |||||||||
Change in valuation allowance | -74,145 | 1,195 | |||||||||
Other, net | -36 | (728 | ) | ||||||||
Total deferred tax benefit | $ | -70,161 | $ | - | |||||||
At December 31, 2012, the Company had a $76.5 million valuation allowance on deferred tax assets. The valuation allowance was established in 2010 due to significant negative evidence that indicated it was not more likely than not that the Company would utilize the deferred tax asset. During the quarter ended September 30, 2013, the Company evaluated all positive and negative evidence The positive evidence considered included the following: (1) the current quarter results reflect the Company’s sixth consecutive quarter of pre-tax earnings (2) reduced nonperforming assets for the eleventh consecutive quarter, (3) the removal of the Consent Order by the OCC effective October 17, 2013. Negative evidence considered included the decrease in the Company’s net interest margin and reduced noninterest income, primarily from decreased mortgage banking income. Additionally as a tax planning strategy, the Company could elect to sell its bank-owned life insurance policies, generating approximately $11.4 million of taxable income. While the Company does not anticipate completing this sale, this strategy would be considered if necessary to avoid expiration of deferred tax assets. After consideration of all evidence, management concluded it was more likely than not that the Company would utilize a significant portion of its deferred tax asset and, therefore, removed a large portion of the valuation allowance. The remaining valuation allowance remains for assets that are possible to be utilized, but not more likely than not. The Company will continue to evaluate whether that valuation allowance needs to be adjusted in future periods based on all available evidence. | |||||||||||
Effective tax rates differ from federal statutory rates applied to financial statement loss due to the following: | |||||||||||
9/30/13 | 9/30/12 | ||||||||||
Tax at statutory federal income tax rate | $ | 4,156 | $ | (558 | ) | ||||||
Nontaxable interest income, net of disallowed interest deduction | (183 | ) | (143 | ) | |||||||
BOLI income | (553 | ) | (436 | ) | |||||||
State income taxes, net of federal benefit | 780 | (128 | ) | ||||||||
Change in valuation allowance | (74,145 | ) | 1,195 | ||||||||
Deficiency from restricted stock | 10 | 299 | |||||||||
Other, net | (62 | ) | (229 | ) | |||||||
Tax at effective tax rate | $ | (69,997 | ) | $ | - |
Securities_Tables
Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
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 | ' | |||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of the securities portfolio at September 30, 2013 and December 31, 2012 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss (in thousands): | ||||||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||
September 30, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||
U.S. Treasury | $ | 1,554 | $ | - | $ | -6 | $ | 1,548 | ||||||||||||||||||
U.S. government agencies | 1,745 | - | -52 | 1,693 | ||||||||||||||||||||||
States and political subdivisions | 19,275 | 731 | -165 | 19,841 | ||||||||||||||||||||||
Corporate bonds | 22,889 | 75 | -764 | 22,200 | ||||||||||||||||||||||
Collateralized mortgage obligations | 51,619 | 182 | -3,676 | 48,125 | ||||||||||||||||||||||
Asset-backed securities | 272,236 | 1,575 | -4,827 | 268,984 | ||||||||||||||||||||||
Collateralized debt obligations | 17,173 | - | -6,086 | 11,087 | ||||||||||||||||||||||
Total Securities Available-for-Sale | $ | 386,491 | $ | 2,563 | $ | -15,576 | $ | 373,478 | ||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 35,241 | $ | 547 | $ | - | $ | 35,788 | ||||||||||||||||||
Collateralized mortgage obligations | 222,860 | 1,773 | - | 224,633 | ||||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 258,101 | $ | 2,320 | $ | - | $ | 260,421 | ||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||
U.S. Treasury | $ | 1,500 | $ | 7 | $ | - | $ | 1,507 | ||||||||||||||||||
U.S. government agencies | 49,848 | 122 | -120 | 49,850 | ||||||||||||||||||||||
U.S. government agency mortgage-backed | 127,716 | 1,605 | -583 | 128,738 | ||||||||||||||||||||||
States and political subdivisions | 14,639 | 1,216 | - | 15,855 | ||||||||||||||||||||||
Corporate bonds | 36,355 | 586 | -55 | 36,886 | ||||||||||||||||||||||
Collateralized mortgage obligations | 168,795 | 1,895 | -1,090 | 169,600 | ||||||||||||||||||||||
Asset-backed securities | 165,347 | 2,468 | -322 | 167,493 | ||||||||||||||||||||||
Collateralized debt obligations | 17,941 | - | -7,984 | 9,957 | ||||||||||||||||||||||
Total Securities Available-for-Sale | $ | 582,141 | $ | 7,899 | $ | -10,154 | $ | 579,886 | ||||||||||||||||||
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 debt obligations | ' | |||||||||||||||||||||||||
The fair value, amortized cost and weighted average yield of debt securities at September 30, 2013, by contractual maturity, were as follows in the table below. Securities not due at a single maturity date, primarily mortgage-backed securities (“MBS”), asset-backed securities, and collateralized debt obligations are shown separately (in thousands): | ||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||
Amortized | Average | Fair | ||||||||||||||||||||||||
Securities Available-for-Sale | Cost | Yield | Value | |||||||||||||||||||||||
Due in one year or less | $ | 772 | 3.58% | $ | 789 | |||||||||||||||||||||
Due after one year through five years | 4,425 | 2.35% | 4,510 | |||||||||||||||||||||||
Due after five years through ten years | 29,271 | 3.04% | 28,885 | |||||||||||||||||||||||
Due after ten years | 10,995 | 4.31% | 11,098 | |||||||||||||||||||||||
45,463 | 3.29% | 45,282 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 51,619 | 2.62% | 48,125 | |||||||||||||||||||||||
Asset-back securites | 272,236 | 1.67% | 268,984 | |||||||||||||||||||||||
Collateralized debt obligations | 17,173 | 1.62% | 11,087 | |||||||||||||||||||||||
$ | 386,491 | 1.99% | $ | 373,478 | ||||||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
Mortgage-backed securities | $ | 258,101 | 3.07% | $ | 260,421 | |||||||||||||||||||||
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 | ' | |||||||||||||||||||||||||
Securities with unrealized losses at September 30, 2013, and December 31, 2012, 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 | |||||||||||||||||||||||||
September 30, 2013 | 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 | $ | 6 | $ | 1,548 | - | $ | - | $ | - | 1 | $ | 6 | 1,548 | ||||||||||||
U.S. government agencies | 1 | 52 | 1,693 | - | - | - | 1 | 52 | 1,693 | |||||||||||||||||
States and political subdivisions | 7 | 165 | 6,195 | - | - | - | 7 | 165 | 6,195 | |||||||||||||||||
Corporate bonds | 5 | 717 | 13,009 | 2 | 47 | 2,162 | 7 | 764 | 15,171 | |||||||||||||||||
Collateralized mortgage obligations | 3 | 3,676 | 35,471 | - | - | - | 3 | 3,676 | 35,471 | |||||||||||||||||
Asset-backed securities | 18 | 4,784 | 162,705 | 1 | 43 | 3,791 | 19 | 4,827 | 166,496 | |||||||||||||||||
Collateralized debt obligations | - | - | - | 2 | 6,086 | 11,087 | 2 | 6,086 | 11,087 | |||||||||||||||||
35 | $ | 9,400 | $ | 220,621 | 5 | $ | 6,176 | $ | 17,040 | 40 | $ | 15,576 | $ | 237,661 | ||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||
December 31, 2012 | 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 | 4 | $ | 120 | $ | 17,039 | - | $ | - | $ | - | 4 | $ | 120 | $ | 17,039 | |||||||||||
U.S. government agency mortgage-backed | 12 | 583 | 53,184 | - | - | - | 12 | 583 | 53,184 | |||||||||||||||||
Corporate bonds | 4 | 55 | 9,724 | - | - | - | 4 | 55 | 9,724 | |||||||||||||||||
Collateralized mortgage obligations | 6 | 1,060 | 37,778 | 1 | 30 | 2,343 | 7 | 1,090 | 40,121 | |||||||||||||||||
Asset-backed securities | 6 | 322 | 37,488 | - | - | - | 6 | 322 | 37,488 | |||||||||||||||||
Collateralized debt obligations | - | - | - | 2 | 7,984 | 9,957 | 2 | 7,984 | 9,957 | |||||||||||||||||
32 | $ | 2,140 | $ | 155,213 | 3 | $ | 8,014 | $ | 12,300 | 35 | $ | 10,154 | $ | 167,513 | ||||||||||||
Schedule of additional information relating to the CDOs | ' | |||||||||||||||||||||||||
Gross | S&P | Number of | Issuance | Issuance | ||||||||||||||||||||||
Amortized | Fair | Unrealized | Credit | Banks in | Deferrals & Defaults | Excess Subordination | ||||||||||||||||||||
Cost | Value | Loss | Rating 1 | Issuance | Amount | Collateral % | Amount | Collateral % | ||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||
Class A1 | $ | 8,157 | $ | 5,619 | $ | -2,538 | BB+ | 63 | $ | 207,000 | 27.60% | $ | 227,472 | 30.30% | ||||||||||||
Class A2A | 9,016 | 5,468 | -3,548 | B+ | 63 | 207,000 | 27.60% | 130,472 | 17.40% | |||||||||||||||||
$ | 17,173 | $ | 11,087 | $ | -6,086 | |||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Class A1 | $ | 9,038 | $ | 5,768 | $ | -3,270 | BB+ | 63 | $ | 208,000 | 27.70% | $ | 190,982 | 25.50% | ||||||||||||
Class A2A | 8,903 | 4,189 | -4,714 | B+ | 63 | 208,000 | 27.70% | 93,982 | 12.50% | |||||||||||||||||
$ | 17,941 | $ | 9,957 | $ | -7,984 | |||||||||||||||||||||
1 Moody’s credit rating for class A1 and A2A were upgraded to Baa1 and Baa3, respectively, as of September 30, 2013, compared to Baa2 and Ba2 at December 31, 2012. The Fitch ratings for class A1 and A2A were also upgraded to A and BBB, respectively, as of September 30, 2013, compared to BBB and B at December 31, 2012. |
Loans_Tables
Loans (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Schedule of major classifications of loans | ' | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Commercial | $ | 86,822 | $ | 86,941 | ||||||||||||||||||||||
Real estate - commercial | 554,874 | 579,687 | ||||||||||||||||||||||||
Real estate - construction | 30,996 | 42,167 | ||||||||||||||||||||||||
Real estate - residential | 376,859 | 414,543 | ||||||||||||||||||||||||
Consumer | 2,570 | 3,101 | ||||||||||||||||||||||||
Overdraft | 544 | 994 | ||||||||||||||||||||||||
Lease financing receivables | 11,204 | 6,060 | ||||||||||||||||||||||||
Other | 13,236 | 16,451 | ||||||||||||||||||||||||
1,077,105 | 1,149,944 | |||||||||||||||||||||||||
Net deferred loan fees | 535 | 106 | ||||||||||||||||||||||||
$ | 1,077,640 | $ | 1,150,050 | |||||||||||||||||||||||
Schedule of aged analysis of past due loans by class of loans | ' | |||||||||||||||||||||||||
September 30, 2013 | 30-59 Days | 60-89 Days | 90 Days or | Total Past | Current | Nonaccrual | Total Loans | Recorded | ||||||||||||||||||
Past Due | Past Due | Greater Past | Due | Investment | ||||||||||||||||||||||
Due | 90 days or | |||||||||||||||||||||||||
Greater Past | ||||||||||||||||||||||||||
Due and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial | $ | 69 | $ | 132 | $ | - | $ | 201 | $ | 97,796 | $ | 29 | $ | 98,026 | $ | - | ||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 165 | - | - | 165 | 109,584 | 3,497 | 113,246 | - | ||||||||||||||||||
Owner occupied special purpose | 650 | 227 | - | 877 | 162,435 | 5,947 | 169,259 | - | ||||||||||||||||||
Non-owner occupied general purpose | - | - | - | - | 128,084 | 7,273 | 135,357 | - | ||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 75,595 | 438 | 76,033 | - | ||||||||||||||||||
Retail properties | - | - | - | - | 39,829 | 5,056 | 44,885 | - | ||||||||||||||||||
Farm | - | - | - | - | 16,094 | - | 16,094 | - | ||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | - | - | - | - | 4,563 | 168 | 4,731 | - | ||||||||||||||||||
Land | - | - | - | - | 4,640 | 209 | 4,849 | - | ||||||||||||||||||
Commercial speculative | - | - | - | - | 8,811 | 3,534 | 12,345 | - | ||||||||||||||||||
All other | - | - | - | - | 8,323 | 748 | 9,071 | - | ||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 213 | - | - | 213 | 122,031 | 8,307 | 130,551 | - | ||||||||||||||||||
Owner occupied | 625 | - | - | 625 | 112,515 | 5,858 | 118,998 | - | ||||||||||||||||||
Revolving and junior liens | 522 | 75 | 45 | 642 | 124,170 | 2,498 | 127,310 | 45 | ||||||||||||||||||
Consumer | - | - | - | - | 2,570 | - | 2,570 | - | ||||||||||||||||||
All other | - | - | - | - | 14,315 | - | 14,315 | - | ||||||||||||||||||
$ | 2,244 | $ | 434 | $ | 45 | $ | 2,723 | $ | 1,031,355 | $ | 43,562 | $ | 1,077,640 | $ | 45 | |||||||||||
December 31, 2012 | 30-59 Days | 60-89 Days | 90 Days or | Total Past | Current | Nonaccrual | Total Loans | Recorded | ||||||||||||||||||
Past Due | Past Due | Greater Past | Due | Investment | ||||||||||||||||||||||
Due | 90 days or | |||||||||||||||||||||||||
Greater Past | ||||||||||||||||||||||||||
Due and | ||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||
Commercial | $ | 159 | $ | - | $ | - | $ | 159 | $ | 92,080 | $ | 762 | $ | 93,001 | $ | - | ||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 1,580 | 50 | - | 1,630 | 119,994 | 5,487 | 127,111 | - | ||||||||||||||||||
Owner occupied special purpose | 172 | - | - | 172 | 149,439 | 11,433 | 161,044 | - | ||||||||||||||||||
Non-owner occupied general purpose | - | 1,046 | - | 1,046 | 128,817 | 13,436 | 143,299 | - | ||||||||||||||||||
Non-owner occupied special purpose | - | 4,304 | - | 4,304 | 69,299 | 477 | 74,080 | - | ||||||||||||||||||
Retail properties | - | - | - | - | 37,732 | 10,532 | 48,264 | - | ||||||||||||||||||
Farm | - | - | - | - | 23,372 | 2,517 | 25,889 | - | ||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | - | - | - | - | 4,469 | 1,855 | 6,324 | - | ||||||||||||||||||
Land | - | - | - | - | 2,747 | 254 | 3,001 | - | ||||||||||||||||||
Commercial speculative | - | - | - | - | 10,755 | 6,587 | 17,342 | - | ||||||||||||||||||
All other | 300 | 215 | 68 | 583 | 14,360 | 557 | 15,500 | 68 | ||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 276 | 164 | - | 440 | 140,141 | 9,910 | 150,491 | - | ||||||||||||||||||
Owner occupied | 3,151 | 375 | 21 | 3,547 | 110,735 | 9,918 | 124,200 | 21 | ||||||||||||||||||
Revolving and junior liens | 888 | 203 | - | 1,091 | 134,990 | 3,771 | 139,852 | - | ||||||||||||||||||
Consumer | 3 | - | - | 3 | 3,075 | 23 | 3,101 | - | ||||||||||||||||||
All other | - | - | - | - | 17,551 | - | 17,551 | - | ||||||||||||||||||
$ | 6,529 | $ | 6,357 | $ | 89 | $ | 12,975 | $ | 1,059,556 | $ | 77,519 | $ | 1,150,050 | $ | 89 | |||||||||||
Schedule of credit quality indicators by class of loans | ' | |||||||||||||||||||||||||
September 30, 2013 | Pass | Special | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Mention | ||||||||||||||||||||||||||
Commercial | $ | 89,051 | $ | 8,711 | $ | 264 | $ | - | $ | 98,026 | ||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 97,309 | 8,560 | 7,377 | - | 113,246 | |||||||||||||||||||||
Owner occupied special purpose | 159,678 | 1,480 | 8,101 | - | 169,259 | |||||||||||||||||||||
Non-owner occupied general purpose | 118,741 | 1,574 | 15,042 | - | 135,357 | |||||||||||||||||||||
Non-owner occupied special purpose | 61,874 | 9,893 | 4,266 | - | 76,033 | |||||||||||||||||||||
Retail Properties | 35,833 | 3,006 | 6,046 | - | 44,885 | |||||||||||||||||||||
Farm | 14,607 | 1,487 | - | - | 16,094 | |||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | 1,216 | 1,770 | 1,745 | - | 4,731 | |||||||||||||||||||||
Land | 4,640 | - | 209 | - | 4,849 | |||||||||||||||||||||
Commercial speculative | 5,232 | 3,579 | 3,534 | - | 12,345 | |||||||||||||||||||||
All other | 8,289 | 34 | 748 | - | 9,071 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 116,627 | 3,282 | 10,642 | - | 130,551 | |||||||||||||||||||||
Owner occupied | 111,323 | 383 | 7,292 | - | 118,998 | |||||||||||||||||||||
Revolving and junior liens | 123,435 | 200 | 3,675 | - | 127,310 | |||||||||||||||||||||
Consumer | 2,569 | - | 1 | - | 2,570 | |||||||||||||||||||||
All other | 14,315 | - | - | - | 14,315 | |||||||||||||||||||||
Total | $ | 964,739 | $ | 43,959 | $ | 68,942 | $ | - | $ | 1,077,640 | ||||||||||||||||
December 31, 2012 | Pass | Special | Substandard 1 | Doubtful | Total | |||||||||||||||||||||
Mention | ||||||||||||||||||||||||||
Commercial | $ | 88,071 | $ | 3,867 | $ | 1,063 | $ | - | $ | 93,001 | ||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 113,118 | 2,995 | 10,998 | - | 127,111 | |||||||||||||||||||||
Owner occupied special purpose | 134,152 | 9,036 | 17,856 | - | 161,044 | |||||||||||||||||||||
Non-owner occupied general purpose | 105,192 | 14,273 | 23,834 | - | 143,299 | |||||||||||||||||||||
Non-owner occupied special purpose | 68,682 | 3,911 | 1,487 | - | 74,080 | |||||||||||||||||||||
Retail Properties | 32,715 | 1,873 | 13,676 | - | 48,264 | |||||||||||||||||||||
Farm | 21,262 | 2,110 | 2,517 | - | 25,889 | |||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | 1,318 | 2,196 | 2,810 | - | 6,324 | |||||||||||||||||||||
Land | 2,747 | - | 254 | - | 3,001 | |||||||||||||||||||||
Commercial speculative | 7,122 | - | 10,220 | - | 17,342 | |||||||||||||||||||||
All other | 14,607 | 37 | 856 | - | 15,500 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 123,876 | 14,608 | 12,007 | - | 150,491 | |||||||||||||||||||||
Owner occupied | 110,858 | 396 | 12,946 | - | 124,200 | |||||||||||||||||||||
Revolving and junior liens | 133,992 | 166 | 5,694 | - | 139,852 | |||||||||||||||||||||
Consumer | 3,075 | - | 26 | - | 3,101 | |||||||||||||||||||||
All other | 17,331 | 220 | - | - | 17,551 | |||||||||||||||||||||
Total | $ | 978,118 | $ | 55,688 | $ | 116,244 | $ | - | $ | 1,150,050 | ||||||||||||||||
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 | ' | |||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
As of September 30, 2013 | September 30, 2013 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 29 | $ | 35 | $ | - | $ | 113 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 2,657 | 3,016 | - | 3,565 | 3 | |||||||||||||||||||||
Owner occupied special purpose | 4,647 | 5,529 | - | 5,913 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 9,633 | 12,131 | - | 11,995 | 113 | |||||||||||||||||||||
Non-owner occupied special purpose | 438 | 623 | - | 457 | - | |||||||||||||||||||||
Retail properties | 5,056 | 6,293 | - | 6,918 | - | |||||||||||||||||||||
Farm | - | - | - | 1,259 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 3,039 | 3,039 | - | 3,597 | 120 | |||||||||||||||||||||
Land | 209 | 308 | - | 231 | - | |||||||||||||||||||||
Commercial speculative | 1,913 | 2,550 | - | 2,089 | - | |||||||||||||||||||||
All other | 297 | 333 | - | 188 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 6,523 | 8,580 | - | 5,845 | - | |||||||||||||||||||||
Owner occupied | 9,823 | 11,629 | - | 9,606 | 151 | |||||||||||||||||||||
Revolving and junior liens | 1,968 | 2,886 | - | 1,668 | 5 | |||||||||||||||||||||
Consumer | - | - | 12 | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 46,232 | 56,952 | - | 53,456 | 392 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | - | - | - | 283 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 935 | 955 | 322 | 974 | - | |||||||||||||||||||||
Owner occupied special purpose | 1,300 | 1,493 | 371 | 2,777 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 183 | 183 | 57 | 1,481 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | - | |||||||||||||||||||||
Retail properties | - | - | - | 876 | - | |||||||||||||||||||||
Farm | - | - | - | - | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 168 | 604 | 71 | 97 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 1,621 | 4,225 | 100 | 2,971 | - | |||||||||||||||||||||
All other | 451 | 477 | 241 | 465 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 1,784 | 2,151 | 584 | 3,263 | - | |||||||||||||||||||||
Owner occupied | 986 | 1,082 | 161 | 3,448 | 12 | |||||||||||||||||||||
Revolving and junior liens | 591 | 623 | 243 | 1,527 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 8,019 | 11,793 | 2,150 | 18,162 | 12 | |||||||||||||||||||||
Total impaired loans | $ | 54,251 | $ | 68,745 | $ | 2,150 | $ | 71,618 | $ | 404 | ||||||||||||||||
Impaired loans by class of loans as of December 31, 2012 were as follows: | ||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
As of December 31, 2012 | September 30, 2012 | |||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 196 | $ | 229 | $ | - | $ | 516 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 4,473 | 5,021 | - | 4,149 | - | |||||||||||||||||||||
Owner occupied special purpose | 7,180 | 8,486 | - | 10,222 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 14,356 | 17,381 | - | 10,996 | 210 | |||||||||||||||||||||
Non-owner occupied special purpose | 477 | 634 | - | 933 | - | |||||||||||||||||||||
Retail properties | 8,780 | 15,323 | - | 5,851 | - | |||||||||||||||||||||
Farm | 2,517 | 2,517 | - | 1,335 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 4,155 | 4,729 | - | 7,952 | 83 | |||||||||||||||||||||
Land | 254 | 308 | - | 1,021 | - | |||||||||||||||||||||
Commercial speculative | 2,265 | 3,451 | - | 6,297 | - | |||||||||||||||||||||
All other | 78 | 168 | - | 2,204 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 5,168 | 6,979 | - | 4,500 | - | |||||||||||||||||||||
Owner occupied | 9,389 | 11,002 | - | 10,788 | 187 | |||||||||||||||||||||
Revolving and junior liens | 1,368 | 1,689 | - | 1,466 | 2 | |||||||||||||||||||||
Consumer | 23 | 23 | - | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 60,679 | 77,940 | - | 68,230 | 482 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | 566 | 619 | 458 | 646 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 1,014 | 1,057 | 230 | 5,173 | - | |||||||||||||||||||||
Owner occupied special purpose | 4,253 | 6,200 | 712 | 4,505 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 2,779 | 3,906 | 204 | 9,047 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | 217 | - | |||||||||||||||||||||
Retail properties | 1,752 | 1,812 | 1,102 | 7,958 | - | |||||||||||||||||||||
Farm | - | - | - | 347 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 26 | 75 | 3 | 2,411 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 4,322 | 6,613 | 757 | 4,554 | - | |||||||||||||||||||||
All other | 479 | 649 | 353 | 459 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 4,742 | 5,954 | 477 | 9,552 | - | |||||||||||||||||||||
Owner occupied | 5,909 | 6,923 | 1,089 | 6,726 | 34 | |||||||||||||||||||||
Revolving and junior liens | 2,464 | 2,625 | 874 | 1,608 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 28,306 | 36,433 | 6,259 | 53,203 | 34 | |||||||||||||||||||||
Total impaired loans | $ | 88,985 | $ | 114,373 | $ | 6,259 | $ | 121,433 | $ | 516 | ||||||||||||||||
Schedule of TDRs modified during the period by type of modification | ' | |||||||||||||||||||||||||
TDR Modifications | TDR Modifications | |||||||||||||||||||||||||
Three months ended September 30, 2013 | Nine months ended September 30, 2013 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | # of | Pre-modification | Post-modification | |||||||||||||||||||||
contracts | recorded investment | recorded investment | contracts | recorded investment | recorded investment | |||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral3 | - | $ | - | $ | - | 1 | $ | 610 | $ | 472 | ||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral3 | - | - | - | 1 | 137 | 137 | ||||||||||||||||||||
Other5 | - | - | - | 1 | 30 | 29 | ||||||||||||||||||||
- | $ | - | $ | - | 3 | $ | 777 | $ | 638 | |||||||||||||||||
TDR Modifications | TDR Modifications | |||||||||||||||||||||||||
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | |||||||||||||||||||||||||
# of | Pre-modification | Post-modification | # of | Pre-modification | Post-modification | |||||||||||||||||||||
contracts | recorded investment | recorded investment | contracts | recorded investment | recorded investment | |||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral1 | 1 | $ | 689 | $ | 433 | 2 | $ | 898 | $ | 640 | ||||||||||||||||
Interest2 | - | - | - | 2 | 3,381 | 3,148 | ||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||
Deferral1 | 1 | 405 | 167 | 2 | 405 | 167 | ||||||||||||||||||||
Bifurcate3 | - | - | - | 1 | 337 | 88 | ||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral3 | - | - | - | 1 | 108 | 108 | ||||||||||||||||||||
Revolving and junior liens | ||||||||||||||||||||||||||
Hamp4 | - | - | - | 1 | 117 | 61 | ||||||||||||||||||||
2 | $ | 1,094 | $ | 600 | 9 | $ | 5,246 | $ | 4,212 | |||||||||||||||||
1 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. | ||||||||||||||||||||||||||
2 Interest: Interest rate concession below normal market | ||||||||||||||||||||||||||
3 Deferral: Refers to the deferral of principal payments | ||||||||||||||||||||||||||
4 HAMP: Home Affordable Modification Program | ||||||||||||||||||||||||||
5 Other | ||||||||||||||||||||||||||
Schedule of TDRs that subsequently defaulted | ' | |||||||||||||||||||||||||
TDR Default Activity | TDR Default Activity | |||||||||||||||||||||||||
Three Months ending September 30, 2013 | Nine Months ending September 30, 2013 | |||||||||||||||||||||||||
Troubled debt restructurings that | # of | Pre-modification outstanding | # of | Pre-modification outstanding | ||||||||||||||||||||||
Subsequently Defaulted | contracts | recorded investment | contracts | recorded investment | ||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied special purpose | 1 | $ | 610 | 1 | $ | 610 | ||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | - | - | 1 | 155 | ||||||||||||||||||||||
Owner occupied | 1 | 175 | 1 | 175 | ||||||||||||||||||||||
Revolving and junior liens | 1 | 30 | 1 | 30 | ||||||||||||||||||||||
3 | $ | 815 | 4 | $ | 970 | |||||||||||||||||||||
TDR Default Activity | TDR Default Activity | |||||||||||||||||||||||||
Three Months ending September 30, 2012 | Nine Months ending September 30, 2012 | |||||||||||||||||||||||||
Troubled debt restructurings that | # of | Pre-modification outstanding | # of | Pre-modification outstanding | ||||||||||||||||||||||
Subsequently Defaulted | contracts | recorded investment | contracts | recorded investment | ||||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Commercial speculative | 1 | $ | 460 | 1 | $ | 460 | ||||||||||||||||||||
1 | $ | 460 | 1 | $ | 460 | |||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment | ' | ||||||||||||||||||||||
Allowance for loan losses: | Commercial | Real Estate | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||
Commercial1 | Construction | Residential | |||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||
Beginning balance | $ | 3,332 | $ | 18,097 | $ | 2,690 | $ | 5,021 | $ | 1,372 | $ | 4,530 | $35,042 | ||||||||||
Charge-offs | 29 | 851 | 53 | 3,594 | 168 | - | 4,695 | ||||||||||||||||
Recoveries | 60 | 523 | 15 | 209 | 143 | - | 950 | ||||||||||||||||
Provision (release) | -469 | -1,354 | -252 | 1,352 | 162 | -1,189 | -1,750 | ||||||||||||||||
Ending balance | $ | 2,894 | $ | 16,415 | $ | 2,400 | $ | 2,988 | $ | 1,509 | $ | 3,341 | $ | 29,547 | |||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||
Beginning balance | $ | 4,517 | $ | 20,100 | $ | 3,837 | $ | 4,535 | $ | 1,178 | $ | 4,430 | $38,597 | ||||||||||
Charge-offs | 308 | 2,377 | 951 | 5,193 | 474 | - | 9,303 | ||||||||||||||||
Recoveries | 104 | 3,752 | 1,265 | 792 | 390 | - | 6,303 | ||||||||||||||||
Provision (release) | -1,419 | -5,060 | -1,751 | 2,854 | 415 | -1,089 | -6,050 | ||||||||||||||||
Ending balance | $ | 2,894 | $ | 16,415 | $ | 2,400 | $ | 2,988 | $ | 1,509 | $ | 3,341 | $ | 29,547 | |||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 750 | $ | 412 | $ | 988 | $ | - | $ | - | $ | 2,150 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 2,894 | $ | 15,665 | $ | 1,988 | $ | 2,000 | $ | 1,509 | $ | 3,341 | $ | 27,397 | |||||||||
Loans: | |||||||||||||||||||||||
Ending balance | $ | 98,026 | $ | 554,874 | $ | 30,996 | $ | 376,859 | $ | 2,570 | $ | 14,315 | $ | 1,077,640 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 29 | $ | 24,849 | $ | 7,698 | $ | 21,675 | $ | - | $ | - | $ | 54,251 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 97,997 | $ | 530,025 | $ | 23,298 | $ | 355,184 | $ | 2,570 | $ | 14,315 | $ | 1,023,389 | |||||||||
1 As of September 30, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $14.4 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.7 million at September 30, 2013. | |||||||||||||||||||||||
Allowance for credit losses: | Commercial | Real Estate | Real Estate | Real Estate | Consumer | Unallocated | Total | ||||||||||||||||
Commercial 1 | Construction | Residential | |||||||||||||||||||||
Three months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Balance at beginning of period | $ | 4,783 | $ | 23,766 | $ | 5,501 | $ | 4,141 | $ | 1,063 | $ | 1,032 | $ | 40,286 | |||||||||
Charge-offs | 2 | 355 | 909 | 1,230 | 186 | - | 2,682 | ||||||||||||||||
Recoveries | 22 | 76 | 2,202 | 219 | 134 | - | 2,653 | ||||||||||||||||
Provision (release) | -251 | -939 | -2,366 | 1,342 | 104 | 2,110 | - | ||||||||||||||||
Ending balance | $ | 4,552 | $ | 22,548 | $ | 4,428 | $ | 4,472 | $ | 1,115 | $ | 3,142 | $ | 40,257 | |||||||||
Nine months Ended | |||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Balance at beginning of year | $ | 5,070 | $ | 30,770 | $ | 7,937 | $ | 6,335 | $ | 884 | $ | 1,001 | $ | 51,997 | |||||||||
Charge-offs | 110 | 12,694 | 4,251 | 6,416 | 463 | - | 23,934 | ||||||||||||||||
Recoveries | 32 | 1,698 | 3,373 | 452 | 355 | - | 5,910 | ||||||||||||||||
Provision (release) | -440 | 2,774 | -2,631 | 4,101 | 339 | 2,141 | 6,284 | ||||||||||||||||
Ending balance | $ | 4,552 | $ | 22,548 | $ | 4,428 | $ | 4,472 | $ | 1,115 | $ | 3,142 | $ | 40,257 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 514 | $ | 3,113 | $ | 1,408 | $ | 2,550 | $ | - | $ | - | $ | 7,585 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 4,038 | $ | 19,435 | $ | 3,020 | $ | 1,922 | $ | 1,115 | $ | 3,142 | $ | 32,672 | |||||||||
Financing receivables: | |||||||||||||||||||||||
Ending balance | $ | 84,667 | $ | 621,715 | $ | 48,606 | $ | 436,837 | $ | 3,167 | $ | 13,297 | $ | 1,208,289 | |||||||||
Ending balance: Individually evaluated for impairment | $ | 1,157 | $ | 56,176 | $ | 15,988 | $ | 30,919 | $ | - | $ | - | $ | 104,240 | |||||||||
Ending balance: Collectively evaluated for impairment | $ | 83,510 | $ | 565,539 | $ | 32,618 | $ | 405,918 | $ | 3,167 | $ | 13,297 | $ | 1,104,049 | |||||||||
1 As of September 30, 2012, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $19.7 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.2 million at September 30, 2012. |
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Real Estate Owned | ' | |||||||||||||
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Other real estate owned | 2013 | 2012 | 2013 | 2012 | ||||||||||
Balance at beginning of period | $ | 59,465 | $ | 89,671 | $ | 72,423 | $ | 93,290 | ||||||
Property additions | 3,015 | 7,594 | 14,196 | 26,944 | ||||||||||
Development improvements | 10 | 131 | 60 | 646 | ||||||||||
Less: | ||||||||||||||
Property disposals, net of gains/losses | 11,463 | 4,829 | 30,928 | 20,517 | ||||||||||
Period valuation adjustments | 1,961 | 4,474 | 6,685 | 12,270 | ||||||||||
Balance at end of period | $ | 49,066 | $ | 88,093 | $ | 49,066 | $ | 88,093 | ||||||
Schedule of activity in valuation allowance | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance at beginning of period | $ | 30,487 | $ | 27,469 | $ | 31,454 | $ | 23,462 | ||||||
Provision for unrealized losses | 1,961 | 4,474 | 6,537 | 12,101 | ||||||||||
Reductions taken on sales | -7,571 | -2,657 | -13,305 | -6,446 | ||||||||||
Other adjustments | -290 | - | -99 | 169 | ||||||||||
Balance at end of period | $ | 24,587 | $ | 29,286 | $ | 24,587 | $ | 29,286 | ||||||
Schedule of expenses related to foreclosed assets, net of lease revenue | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Gain on sales, net | $ | -608 | $ | -20 | $ | -1,175 | $ | -398 | ||||||
Provision for unrealized losses | 1,961 | 4,474 | 6,537 | 12,101 | ||||||||||
Operating expenses | 1,500 | 2,071 | 4,555 | 5,886 | ||||||||||
Less: | ||||||||||||||
Lease revenue | 309 | 840 | 974 | 2,930 | ||||||||||
$ | 2,544 | $ | 5,685 | $ | 8,943 | $ | 14,659 |
Deposits_Tables
Deposits (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deposits | ' | |||||||
Schedule of major classifications of deposits | ' | |||||||
September 30, 2013 | December 31, 2012 | |||||||
Noninterest bearing demand | $ | 373,499 | $ | 379,451 | ||||
Savings | 227,823 | 216,305 | ||||||
NOW accounts | 272,632 | 286,860 | ||||||
Money market accounts | 309,066 | 323,811 | ||||||
Certificates of deposit of less than $100,000 | 299,632 | 318,844 | ||||||
Certificates of deposit of $100,000 or more | 190,471 | 191,948 | ||||||
$ | 1,673,123 | $ | 1,717,219 |
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Borrowings | ' | |||||||
Summary of borrowings and junior subordinated debentures | ' | |||||||
September 30, 2013 | December 31, 2012 | |||||||
Securities sold under repurchase agreements | $ | 20,719 | $ | 17,875 | ||||
FHLB advances | 55,000 | 100,000 | ||||||
Junior subordinated debentures | 58,378 | 58,378 | ||||||
Subordinated debt | 45,000 | 45,000 | ||||||
Notes payable and other borrowings | 500 | 500 | ||||||
$ | 179,597 | $ | 221,753 |
LongTerm_Incentive_Plan_Tables
Long-Term Incentive Plan (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Long-Term Incentive Plan | ' | |||||||||||
Summary of stock option activity in Incentive Plan | ' | |||||||||||
A summary of stock option activity in the Incentive Plan for the nine months ending September 30, 2013, is as follows: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | |||||||||||
Exercise | Contractual | Aggregate | ||||||||||
Shares | Price | Term (years) | Intrinsic Value | |||||||||
Beginning outstanding | 409,500 | $ | 28.75 | |||||||||
Canceled | -2,000 | 32.59 | ||||||||||
Ending outstanding | 407,500 | $ | 28.74 | 2.28 | $ | - | ||||||
Exercisable at end of period | 407,500 | $ | 28.74 | 2.28 | $ | - | ||||||
Summary of changes in nonvested shares of restricted share rights | ' | |||||||||||
September 30, 2013 | ||||||||||||
Weighted | ||||||||||||
Restricted | Average | |||||||||||
Stock Shares | Grant Date | |||||||||||
and Units | Fair Value | |||||||||||
Nonvested at January 1 | 327,920 | $ | 2.21 | |||||||||
Granted | 155,500 | 3.28 | ||||||||||
Vested | -241,920 | 2.5 | ||||||||||
Forfeited | -11,000 | 2.47 | ||||||||||
Recaptured after Series B auction | -45,000 | 1.25 | ||||||||||
Nonvested at September 30 | 185,500 | $ | 2.95 |
Earnings_loss_Per_Share_Tables
Earnings (loss) Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings (loss) Per Share | ' | |||||||||||||
Schedule of earnings (loss) per share | ' | |||||||||||||
The earnings (loss) per share – both basic and diluted – are included below as of September 30 (in thousands except for share data): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Basic earnings (loss) per share: | ||||||||||||||
Weighted-average common shares outstanding | 13,885,884 | 14,084,328 | 13,947,606 | 14,070,783 | ||||||||||
Weighted-average common shares less stock based awards | 13,870,884 | 13,883,008 | 13,895,136 | 13,873,819 | ||||||||||
Weighted-average common shares stock based awards | 231,152 | 327,920 | 217,107 | 332,198 | ||||||||||
Net income (loss) | $ | 72,924 | $ | 120 | $ | 81,872 | $ | -1,596 | ||||||
Dividends and accretion of discount on preferred shares | 1,323 | 1,255 | 3,917 | 3,716 | ||||||||||
Net income (loss) available to common shareholders | 71,601 | -1,135 | 77,955 | -5,312 | ||||||||||
Undistributed earnings (loss) | 71,601 | -1,135 | 77,955 | -5,312 | ||||||||||
Basic earnings (loss) per share common undistributed earnings (loss) | 5.08 | -0.08 | 5.52 | -0.37 | ||||||||||
Basic earnings (loss) per share | $ | 5.08 | $ | -0.08 | $ | 5.52 | $ | -0.37 | ||||||
Diluted earnings (loss) per share: | ||||||||||||||
Weighted-average common shares outstanding | 13,885,884 | 14,084,328 | 13,947,606 | 14,070,783 | ||||||||||
Dilutive effect of restricted shares1 | 216,152 | 126,600 | 164,637 | 135,234 | ||||||||||
Diluted average common shares outstanding | 14,102,036 | 14,210,928 | 14,112,243 | 14,206,017 | ||||||||||
Net earnings (loss) available to common stockholders | $ | 71,601 | $ | -1,135 | $ | 77,955 | $ | -5,312 | ||||||
Diluted earnings (loss) per share | $ | 5.08 | $ | -0.08 | $ | 5.52 | $ | -0.37 | ||||||
Number of antidilutive options excluded from the diluted earnings per share calculation | 1,224,839 | 1,286,839 | 1,224,839 | 1,286,839 | ||||||||||
1 Includes the common stock equivalents for restricted share rights that are dilutive. |
Regulatory_Capital_Matters_Tab
Regulatory & Capital Matters (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 | ||||||||||||
Septembr 30, 2013 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Consolidated | $ | 198,822 | 15.15% | $ | 104,989 | 8.00% | N/A | N/A | |||||||||
Old Second Bank | 224,171 | 17.08 | 104,998 | 8 | 131,248 | 10 | |||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||
Consolidated | 132,129 | 10.07 | 52,484 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 207,607 | 15.82 | 52,492 | 4 | 78,738 | 6 | |||||||||||
Tier 1 capital to average assets | |||||||||||||||||
Consolidated | 132,129 | 7.11 | 74,334 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 207,607 | 11.08 | 74,948 | 4 | 93,685 | 5 | |||||||||||
December 31, 2012 | |||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||
Consolidated | $ | 189,466 | 13.62% | $ | 111,287 | 8.00% | N/A | N/A | |||||||||
Old Second Bank | 206,496 | 14.86 | 111,169 | 8 | 138,961 | 10 | |||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||
Consolidated | 94,817 | 6.81 | 55,693 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 188,873 | 13.59 | 55,592 | 4 | 83,388 | 6 | |||||||||||
Tier 1 capital to average assets | |||||||||||||||||
Consolidated | 94,817 | 4.85 | 78,200 | 4 | N/A | N/A | |||||||||||
Old Second Bank | 188,873 | 9.67 | 78,127 | 4 | 97,659 | 5 | |||||||||||
1 The Bank exceeded the general minimum regulatory requirements to be considered “well capitalized”. |
Fair_Value_Option_and_Fair_Val1
Fair Value Option and Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Option and Fair Value Measurements | ' | |||||||||||||||||
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | ' | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | ||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||
U.S. Treasury | $ | 1,548 | $ | - | $ | - | $ | 1,548 | ||||||||||
U.S. government agencies | - | 1,693 | - | 1,693 | ||||||||||||||
States and political subdivisions | - | 19,709 | 132 | 19,841 | ||||||||||||||
Corporate Bonds | - | 22,200 | - | 22,200 | ||||||||||||||
Collateralized mortgage obligations | - | 48,125 | - | 48,125 | ||||||||||||||
Asset-backed securities | 121,772 | 147,212 | 268,984 | |||||||||||||||
Collateralized debt obligations | - | - | 11,087 | 11,087 | ||||||||||||||
Loans held-for-sale | - | 3,129 | - | 3,129 | ||||||||||||||
Mortgage servicing rights | - | - | 5,456 | 5,456 | ||||||||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 584 | -13 | 571 | ||||||||||||||
Other assets (Forward MBS) | - | 69 | - | 69 | ||||||||||||||
Total | $ | 1,548 | $ | 217,281 | $ | 163,874 | $ | 382,703 | ||||||||||
Liabilities: | ||||||||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 584 | $ | - | $ | 584 | ||||||||||
Other liabilities (Interest rate lock commitments to borrowers) | - | 1 | - | 1 | ||||||||||||||
Total | $ | - | $ | 585 | $ | - | $ | 585 | ||||||||||
December 31, 2012 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Assets: | ||||||||||||||||||
Securities available-for-sale | ||||||||||||||||||
U.S. Treasury | $ | 1,507 | $ | - | $ | - | $ | 1,507 | ||||||||||
U.S. government agencies | - | 49,850 | - | 49,850 | ||||||||||||||
U.S. government agency mortgage-backed | - | 128,738 | - | 128,738 | ||||||||||||||
States and political subdivisions | - | 15,723 | 132 | 15,855 | ||||||||||||||
Corporate Bonds | - | 36,886 | - | 36,886 | ||||||||||||||
Collateralized mortgage obligations | - | 169,600 | - | 169,600 | ||||||||||||||
Asset-backed securities | 167,493 | - | 167,493 | |||||||||||||||
Collateralized debt obligations | - | - | 9,957 | 9,957 | ||||||||||||||
Loans held-for-sale | - | 9,571 | - | 9,571 | ||||||||||||||
Mortgage servicing rights | - | - | 4,116 | 4,116 | ||||||||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 1,349 | -47 | 1,302 | ||||||||||||||
Other assets (Forward MBS) | - | 567 | - | 567 | ||||||||||||||
Total | $ | 1,507 | $ | 579,777 | $ | 14,158 | $ | 595,442 | ||||||||||
Liabilities: | ||||||||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 1,349 | $ | - | $ | 1,349 | ||||||||||
Other liabilities (Interest rate lock commitments to borrowers) | - | 5 | - | 5 | ||||||||||||||
Total | $ | - | $ | 1,354 | $ | - | $ | 1,354 | ||||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Investment securities available-for- sale | ||||||||||||||||||
Collateralized Debt | Asset-backed | States and | Mortgage | Interest Rate | ||||||||||||||
Obligations | Political | Servicing | Swap | |||||||||||||||
Subdivisons | Rights | Valuation | ||||||||||||||||
Beginning balance January 1, 2013 | $ | 9,957 | $ | - | $ | 132 | $ | 4,116 | $ | -47 | ||||||||
Transfers into Level 3 | - | - | - | - | - | |||||||||||||
Transfers out of Level 3 | - | - | - | - | - | |||||||||||||
Total gains or losses | ||||||||||||||||||
Included in earnings (or changes in net assets) | 178 | 485 | - | 81 | 34 | |||||||||||||
Included in other comprehensive income | 1,898 | -1,487 | - | - | - | |||||||||||||
Purchases, issuances, sales, and settlements | ||||||||||||||||||
Purchases | - | 168,753 | - | - | - | |||||||||||||
Issuances | - | - | - | 1,259 | - | |||||||||||||
Settlements | -946 | - | - | - | - | |||||||||||||
Sales | - | -20,539 | - | - | - | |||||||||||||
Ending balance June 30, 2013 | $ | 11,087 | $ | 147,212 | $ | 132 | $ | 5,456 | $ | -13 | ||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||
Investment securities | ||||||||||||||||||
Collateralized Debt | States and | Mortgage | Interest Rate | |||||||||||||||
Obligations | Political | Servicing | Swap | |||||||||||||||
Subdivisons | Rights | Valuation | ||||||||||||||||
Beginning balance January 1, 2012 | $ | 9,974 | $ | 138 | $ | 3,487 | $ | -80 | ||||||||||
Transfers into Level 3 | - | - | - | - | ||||||||||||||
Transfers out of Level 3 | - | - | - | - | ||||||||||||||
Total gains or losses | ||||||||||||||||||
Included in earnings (or changes in net assets) | 125 | - | -1,315 | 19 | ||||||||||||||
Included in other comprehensive income | -441 | - | - | - | ||||||||||||||
Purchases, issuances, sales, and settlements | ||||||||||||||||||
Purchases | - | - | - | - | ||||||||||||||
Issuances | - | - | 1,431 | - | ||||||||||||||
Settlements | -115 | - | - | - | ||||||||||||||
Expirations | - | - | - | - | ||||||||||||||
Ending balance September 30, 2012 | $ | 9,543 | $ | 138 | $ | 3,603 | $ | -61 | ||||||||||
Schedule of quantitative information about level 3 fair value measurements | ' | |||||||||||||||||
The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of September 30, 2013: | ||||||||||||||||||
Measured at fair value | Fair Value | Valuation Methodology | Unobservable Inputs | Range of Input | Weighted | |||||||||||||
on a recurring basis: | Average | |||||||||||||||||
of Inputs | ||||||||||||||||||
Collateralized Debt Obligations | $ 11,087 | Discounted Cash Flow | Discount Rate | Libor + | 5.70% | |||||||||||||
5.25-6.25% | ||||||||||||||||||
Prepayment % | 0%-76.0% | 13.50% | ||||||||||||||||
Default range | 3.0%-100.0% | 15.70% | ||||||||||||||||
Mortgage Servicing rights | 5,456 | Discounted Cash Flow | Discount Rate | 10.00% | 10.00% | |||||||||||||
Prepayment Speed | 10.80% | 10.80% | ||||||||||||||||
Interest Rate Swap Valuation | -13 | Management estimate | Probability of Default | 5%-20% | 13.40% | |||||||||||||
of credit risk exposure | ||||||||||||||||||
Asset-backed securities | 147,212 | Discounted Cash Flow | Credit Risk Premium | 1.00%-1.5% | 1.30% | |||||||||||||
Liquidity Risk Premium | 1.00% | 1.00% | ||||||||||||||||
The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2012: | ||||||||||||||||||
Measured at fair value | Fair Value | Valuation Methodology | Unobservable | Range of Input | Weighted | |||||||||||||
on a recurring basis: | Inputs | Average | ||||||||||||||||
of Inputs | ||||||||||||||||||
Collateralized Debt Obligations | $ 9,957 | Discounted Cash Flow | Discount Rate | Libor + 6%-7% | 6.40% | |||||||||||||
Prepayment % | 0%-76% | 16.40% | ||||||||||||||||
Default range | 3.1%-100% | 19.10% | ||||||||||||||||
Mortgage Servicing rights | 4,116 | Discounted Cash Flow | Discount Rate | 10.50% | 10.50% | |||||||||||||
Prepayment Speed | 15.80% | 15.80% | ||||||||||||||||
Interest Rate Swap Valuation | -47 | Management estimate | Probability of | 2%-31% | 17.90% | |||||||||||||
of credit risk exposure | Default | |||||||||||||||||
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | ' | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Impaired loans1 | $ | - | $ | - | $ | 5,653 | $ | 5,653 | ||||||||||
Other real estate owned, net2 | - | - | 49,066 | 49,066 | ||||||||||||||
Total | $ | - | $ | - | $ | 54,719 | $ | 54,719 | ||||||||||
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 $7.8 million, with a valuation allowance of $2.1 million, resulting in a decrease of specific allocations within the allowance for loan losses of $4.1 million for the nine months ending September 30, 2013. | ||||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $49.1 million, which is made up of the outstanding balance of $75.8 million, net of a valuation allowance of $24.6 million and participations of $2.1 million, at September 30, 2013. | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
Impaired loans1 | $ | - | $ | - | $ | 21,543 | $ | 21,543 | ||||||||||
Other real estate owned, net2 | - | - | 72,423 | 72,423 | ||||||||||||||
Total | $ | - | $ | - | $ | 93,966 | $ | 93,966 | ||||||||||
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 $27.8 million, with a valuation allowance of $6.3 million, resulting in a decrease of specific allocations within the provision for loan losses of $6.8 million for the year ending December 31, 2012. | ||||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $72.4 million, which is made up of the outstanding balance of $109.7 million, net of a valuation allowance of $31.4 million and participations of $5.9 million, at December 31, 2012, resulting in a charge to expense of $16.4 million for the year ended December 31, 2012. |
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | |||||||||||||||||||||||||
Schedule of derivatives not designated as hedging instruments | ' | |||||||||||||||||||||||||
The following table presents derivatives not designated as hedging instruments as of September 30, 2013, 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 | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||
Contractual | Location | Location | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||
Interest rate swap contracts net of credit valuation | $ | 80,323 | Other Assets | $ | 571 | Other Liabilities | $ | 584 | ||||||||||||||||||
Commitments1 | 211,635 | Other Assets | 69 | N/A | - | |||||||||||||||||||||
Forward contracts2 | 12,573 | N/A | - | Other Liabilities | 1 | |||||||||||||||||||||
Total | $ | 640 | $ | 585 | ||||||||||||||||||||||
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, 2012. | ||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||
Notional or | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||
Contractual | Location | Location | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||||
Interest rate swap contracts net of credit valuation | $ | 82,097 | Other Assets | $ | 1,302 | Other Liabilities | $ | 1,349 | ||||||||||||||||||
Commitments1 | 226,135 | Other Assets | 567 | N/A | - | |||||||||||||||||||||
Forward contracts2 | 28,000 | N/A | - | Other Liabilities | 5 | |||||||||||||||||||||
Total | $ | 1,869 | $ | 1,354 | ||||||||||||||||||||||
1Includes unused loan commitments and interest rate lock commitments. | ||||||||||||||||||||||||||
2Includes forward mortgage backed securities contracts. | ||||||||||||||||||||||||||
Schedule of financial instrument commitments | ' | |||||||||||||||||||||||||
The following table is a summary of financial instrument commitments (in thousands): | ||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Fixed | Variable | Total | Fixed | Variable | Total | |||||||||||||||||||||
Letters of credit: | ||||||||||||||||||||||||||
Borrower: | ||||||||||||||||||||||||||
Financial standby | $ | 5 | $ | 3,846 | $ | 3,851 | $ | 5 | $ | 3,378 | $ | 3,383 | ||||||||||||||
Commercial standby | - | 51 | 51 | - | 51 | 51 | ||||||||||||||||||||
Performance standby | 1,607 | 2,671 | 4,278 | 1,630 | 4,217 | 5,847 | ||||||||||||||||||||
1,612 | 6,568 | 8,180 | 1,635 | 7,646 | 9,281 | |||||||||||||||||||||
Non-borrower: | ||||||||||||||||||||||||||
Performance standby | 240 | 1,089 | 1,329 | 240 | 1,125 | 1,365 | ||||||||||||||||||||
240 | 1,089 | 1,329 | 240 | 1,125 | 1,365 | |||||||||||||||||||||
Total letters of credit | $ | 1,852 | $ | 7,657 | $ | 9,509 | $ | 1,875 | $ | 8,771 | $ | 10,646 |
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||||||
Schedule of carrying amount and estimated fair values of financial instruments | ' | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Carrying | Fair | ||||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash, due from banks and federal funds sold | $ | 47,486 | $ | 47,486 | $ | 47,486 | $ | - | $ | - | |||||||||||
Interest bearing deposits with financial institutions | 32,586 | 32,586 | 32,586 | - | - | ||||||||||||||||
Securities available-for-sale | 373,478 | 373,478 | 1,548 | 213,499 | 158,431 | ||||||||||||||||
Securities held-to-maturity | 258,101 | 260,421 | - | 260,421 | - | ||||||||||||||||
FHLBC and FRB Stock | 10,292 | 10,292 | - | 10,292 | - | ||||||||||||||||
Bank-owned life insurance | 55,005 | 55,005 | - | 55,005 | - | ||||||||||||||||
Loans held for sale | 3,129 | 3,129 | - | 3,129 | - | ||||||||||||||||
Loans, net | 1,048,093 | 1,047,557 | - | - | 1,047,557 | ||||||||||||||||
Accrued interest receivable | 4,473 | 4,473 | - | 4,473 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Noninterest bearing deposits | $ | 373,499 | $ | 373,499 | $ | 373,499 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 1,299,624 | 1,302,082 | - | 1,302,082 | - | ||||||||||||||||
Securities sold under repurchase agreements | 20,719 | 20,719 | - | 20,719 | - | ||||||||||||||||
Other short-term borrowings | 55,000 | 55,000 | - | 55,000 | - | ||||||||||||||||
Junior subordinated debentures | 58,378 | 63,480 | 37,657 | 25,823 | - | ||||||||||||||||
Subordinated debenture | 45,000 | 39,193 | - | 39,193 | - | ||||||||||||||||
Note payable and other borrowings | 500 | 415 | - | 415 | - | ||||||||||||||||
Borrowing interest payable | 15,676 | 15,676 | 9,305 | 6,371 | - | ||||||||||||||||
Deposit interest payable | 837 | 837 | - | 837 | - | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Carrying | Fair | ||||||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash, due from banks and federal funds sold | $ | 44,221 | $ | 44,221 | $ | 44,221 | $ | - | $ | - | |||||||||||
Interest bearing deposits with financial institutions | 84,286 | 84,286 | 84,286 | - | - | ||||||||||||||||
Securities available-for-sale | 579,886 | 579,886 | 1,507 | 568,290 | 10,089 | ||||||||||||||||
FHLBC and FRB Stock | 11,202 | 11,202 | - | 11,202 | - | ||||||||||||||||
Bank-owned life insurance | 54,203 | 54,203 | - | 54,203 | - | ||||||||||||||||
Loans held-for-sale | 9,571 | 9,571 | - | 9,571 | - | ||||||||||||||||
Loans, net | 1,111,453 | 1,118,711 | - | - | 1,118,711 | ||||||||||||||||
Accrued interest receivable | 5,252 | 5,252 | - | 5,252 | - | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Noninterest bearing deposits | $ | 379,451 | $ | 379,451 | $ | 379,451 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 1,337,768 | 1,347,603 | - | 1,347,603 | - | ||||||||||||||||
Securities sold under repurchase agreements | 17,875 | 17,875 | - | 17,875 | - | ||||||||||||||||
Other short-term borrowings | 100,000 | 100,000 | - | 100,000 | |||||||||||||||||
Junior subordinated debentures | 58,378 | 38,308 | 22,725 | 15,583 | - | ||||||||||||||||
Subordinated debenture | 45,000 | 28,206 | - | 28,206 | - | ||||||||||||||||
Note payable and other borrowings | 500 | 302 | - | 302 | - | ||||||||||||||||
Borrowing interest payable | 11,740 | 11,740 | 6,946 | 4,794 | - | ||||||||||||||||
Deposit interest payable | 1,006 | 1,006 | - | 1,006 | - |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Schedule of components of income tax expense (benefit) | ' | ||||||||||
9/30/13 | 9/30/12 | ||||||||||
Current federal | $ | 129 | $ | - | |||||||
Current state | 35 | - | |||||||||
Deferred federal | 2,935 | (643 | ) | ||||||||
Deferred state | 1,049 | (552 | ) | ||||||||
Change in valuation allowance | (74,145 | ) | 1,195 | ||||||||
$ | (69,997 | ) | $ | - | |||||||
Schedule of components of deferred tax assets and liabilities | ' | ||||||||||
9/30/13 | 12/31/12 | ||||||||||
Allowance for loan losses | $ | 13,700 | $ | 18,236 | |||||||
Deferred compensation | 719 | 679 | |||||||||
Amortization of core deposit intangible assets | 1,484 | 965 | |||||||||
Goodwill amortization/impairment | 15,645 | 16,796 | |||||||||
Stock option expense | 608 | 785 | |||||||||
OREO write downs | 11,072 | 16,632 | |||||||||
Federal net operating loss (“NOL”) carryforward | 26,370 | 20,736 | |||||||||
State net operating loss (“NOL”) carryforward | 11,434 | 10,186 | |||||||||
Deferred tax credit | 1,444 | 1,444 | |||||||||
Other assets | 598 | 585 | |||||||||
Total deferred tax assets | 83,074 | 87,044 | |||||||||
Accumulated depreciation on premises and equipment | (946 | ) | (1,063 | ) | |||||||
Accretion on securities | (13 | ) | (122 | ) | |||||||
Mortgage servicing rights | (2,415 | ) | (1,819 | ) | |||||||
State tax benefits | (6,982 | ) | (7,315 | ) | |||||||
Other liabilities | (194 | ) | (217 | ) | |||||||
Total deferred tax liabilities | (10,550 | ) | (10,536 | ) | |||||||
Net deferred tax asset before valuation allowance | 72,524 | 76,508 | |||||||||
Tax effect on net unrealized losses on securities | 8,704 | 928 | |||||||||
Valuation allowance | (2,363 | ) | (76,508 | ) | |||||||
Net deferred tax asset | $ | 78,865 | $ | 928 | |||||||
Schedule of components of provision for deferred income taxes | ' | ||||||||||
9/30/13 | 9/30/12 | ||||||||||
Provision for loan losses | $ | 4,536 | $ | 5,731 | |||||||
Deferred Compensation | -40 | 24 | |||||||||
Amortization of core deposit intangible assets | -519 | (204 | ) | ||||||||
Stock option expense | 177 | 358 | |||||||||
OREO write downs | 5,560 | (4,358 | ) | ||||||||
Federal net operating loss carryforward | -5,634 | (2,384 | ) | ||||||||
State net operating loss carryforward | -1,248 | (852 | ) | ||||||||
Depreciation | -117 | (210 | ) | ||||||||
Net premiums and discounts on securities | -109 | 85 | |||||||||
Mortgage servicing rights | 596 | 55 | |||||||||
Goodwill amortization/impairment | 1,151 | 1,134 | |||||||||
State tax benefits | -333 | 154 | |||||||||
Change in valuation allowance | -74,145 | 1,195 | |||||||||
Other, net | -36 | (728 | ) | ||||||||
Total deferred tax benefit | $ | -70,161 | $ | - | |||||||
Schedule of difference between effective tax rates from federal statutory rates | ' | ||||||||||
9/30/13 | 9/30/12 | ||||||||||
Tax at statutory federal income tax rate | $ | 4,156 | $ | (558 | ) | ||||||
Nontaxable interest income, net of disallowed interest deduction | (183 | ) | (143 | ) | |||||||
BOLI income | (553 | ) | (436 | ) | |||||||
State income taxes, net of federal benefit | 780 | (128 | ) | ||||||||
Change in valuation allowance | (74,145 | ) | 1,195 | ||||||||
Deficiency from restricted stock | 10 | 299 | |||||||||
Other, net | (62 | ) | (229 | ) | |||||||
Tax at effective tax rate | $ | (69,997 | ) | $ | - |
Securities_Details
Securities (Details) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | |
Sep. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
item | ||||
Securities | ' | ' | ' | ' |
Securities with a fair value transferred from available-for-sale to held-to-maturity | $237,200,000 | ' | ' | ' |
Securities with a cost basis transferred from available-for-sale to held-to-maturity | 245,400,000 | ' | ' | ' |
Securities with an unrealized loss transferred from available-for-sale to held-to-maturity | 8,200,000 | ' | ' | ' |
Number of purchases made of held-to-maturity securities issued by the Government National Mortgage Association | ' | 2 | ' | ' |
FHLBC stock | ' | 5,500,000 | 5,500,000 | 6,400,000 |
FRB stock | ' | 4,800,000 | 4,800,000 | 4,800,000 |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 386,491,000 | 386,491,000 | 582,141,000 |
Gross Unrealized Gains | ' | 2,563,000 | 2,563,000 | 7,899,000 |
Gross Unrealized Losses | ' | -15,576,000 | -15,576,000 | -10,154,000 |
Fair Value | ' | 373,478,000 | 373,478,000 | 579,886,000 |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | 258,101,000 | 258,101,000 | ' |
Gross Unrealized Gains | ' | ' | 2,320,000 | ' |
Fair Value | ' | 260,421,000 | 260,421,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Due in one year or less | ' | 772,000 | 772,000 | ' |
Due after one year through five years | ' | 4,425,000 | 4,425,000 | ' |
Due after five years through ten years | ' | 29,271,000 | 29,271,000 | ' |
Due after ten years | ' | 10,995,000 | 10,995,000 | ' |
Debt securities excluding securities not due at a single maturity date | ' | 45,463,000 | 45,463,000 | ' |
Total | ' | 386,491,000 | 386,491,000 | 582,141,000 |
Securities Available-for-Sale, Weighted Average Yield | ' | ' | ' | ' |
Due in one year or less (as a percent) | ' | ' | 3.58% | ' |
Due after one year through five years (as a percent) | ' | ' | 2.35% | ' |
Due after five years through ten years (as a percent) | ' | ' | 3.04% | ' |
Due after ten years (as a percent) | ' | ' | 4.31% | ' |
Debt securities (as a percent) | ' | ' | 3.29% | ' |
Total (as a percent) | ' | ' | 1.99% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Due in one year or less | ' | 789,000 | 789,000 | ' |
Due after one year through five years | ' | 4,510,000 | 4,510,000 | ' |
Due after five years through ten years | ' | 28,885,000 | 28,885,000 | ' |
Due after ten years | ' | 11,098,000 | 11,098,000 | ' |
Debt securities | ' | 45,282,000 | 45,282,000 | ' |
Fair Value | ' | 373,478,000 | 373,478,000 | 579,886,000 |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | 258,101,000 | 258,101,000 | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 260,421,000 | 260,421,000 | ' |
U.S. Treasury | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 1,554,000 | 1,554,000 | 1,500,000 |
Gross Unrealized Gains | ' | ' | ' | 7,000 |
Gross Unrealized Losses | ' | -6,000 | -6,000 | ' |
Fair Value | ' | 1,548,000 | 1,548,000 | 1,507,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | 1,554,000 | 1,554,000 | 1,500,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 1,548,000 | 1,548,000 | 1,507,000 |
U.S. government agencies | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 1,745,000 | 1,745,000 | 49,848,000 |
Gross Unrealized Gains | ' | ' | ' | 122,000 |
Gross Unrealized Losses | ' | -52,000 | -52,000 | -120,000 |
Fair Value | ' | 1,693,000 | 1,693,000 | 49,850,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | 1,745,000 | 1,745,000 | 49,848,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 1,693,000 | 1,693,000 | 49,850,000 |
U.S. government agency mortgage-backed | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | ' | 127,716,000 |
Gross Unrealized Gains | ' | ' | ' | 1,605,000 |
Gross Unrealized Losses | ' | ' | ' | -583,000 |
Fair Value | ' | ' | ' | 128,738,000 |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | 35,241,000 | 35,241,000 | ' |
Gross Unrealized Gains | ' | ' | 547,000 | ' |
Fair Value | ' | 35,788,000 | 35,788,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | ' | 127,716,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | ' | 128,738,000 |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | 35,241,000 | 35,241,000 | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 35,788,000 | 35,788,000 | ' |
States and political subdivisions | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 19,275,000 | 19,275,000 | 14,639,000 |
Gross Unrealized Gains | ' | 731,000 | 731,000 | 1,216,000 |
Gross Unrealized Losses | ' | -165,000 | -165,000 | ' |
Fair Value | ' | 19,841,000 | 19,841,000 | 15,855,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | 19,275,000 | 19,275,000 | 14,639,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 19,841,000 | 19,841,000 | 15,855,000 |
Corporate bonds | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 22,889,000 | 22,889,000 | 36,355,000 |
Gross Unrealized Gains | ' | 75,000 | 75,000 | 586,000 |
Gross Unrealized Losses | ' | -764,000 | -764,000 | -55,000 |
Fair Value | ' | 22,200,000 | 22,200,000 | 36,886,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | 22,889,000 | 22,889,000 | 36,355,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 22,200,000 | 22,200,000 | 36,886,000 |
Collateralized mortgage obligations | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 51,619,000 | 51,619,000 | 168,795,000 |
Gross Unrealized Gains | ' | 182,000 | 182,000 | 1,895,000 |
Gross Unrealized Losses | ' | -3,676,000 | -3,676,000 | -1,090,000 |
Fair Value | ' | 48,125,000 | 48,125,000 | 169,600,000 |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | 222,860,000 | 222,860,000 | ' |
Gross Unrealized Gains | ' | ' | 1,773,000 | ' |
Fair Value | ' | 224,633,000 | 224,633,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | 51,619,000 | 51,619,000 | ' |
Total | ' | 51,619,000 | 51,619,000 | 168,795,000 |
Securities Available-for-Sale, Weighted Average Yield | ' | ' | ' | ' |
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | ' | ' | 2.62% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | 48,125,000 | 48,125,000 | ' |
Fair Value | ' | 48,125,000 | 48,125,000 | 169,600,000 |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | 222,860,000 | 222,860,000 | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | 224,633,000 | 224,633,000 | ' |
Asset-backed securities | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 272,236,000 | 272,236,000 | 165,347,000 |
Gross Unrealized Gains | ' | 1,575,000 | 1,575,000 | 2,468,000 |
Gross Unrealized Losses | ' | -4,827,000 | -4,827,000 | -322,000 |
Fair Value | ' | 268,984,000 | 268,984,000 | 167,493,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | 272,236,000 | 272,236,000 | ' |
Total | ' | 272,236,000 | 272,236,000 | 165,347,000 |
Securities Available-for-Sale, Weighted Average Yield | ' | ' | ' | ' |
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | ' | ' | 1.67% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | 268,984,000 | 268,984,000 | ' |
Fair Value | ' | 268,984,000 | 268,984,000 | 167,493,000 |
CDOs | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | 17,173,000 | 17,173,000 | 17,941,000 |
Gross Unrealized Losses | ' | -6,086,000 | -6,086,000 | -7,984,000 |
Fair Value | ' | 11,087,000 | 11,087,000 | 9,957,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | 17,173,000 | 17,173,000 | 17,941,000 |
Total | ' | 17,173,000 | 17,173,000 | 17,941,000 |
Securities Available-for-Sale, Weighted Average Yield | ' | ' | ' | ' |
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | ' | ' | 1.62% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | 11,087,000 | 11,087,000 | 9,957,000 |
Fair Value | ' | 11,087,000 | 11,087,000 | 9,957,000 |
Mortgage backed securities | ' | ' | ' | ' |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | 258,101,000 | 258,101,000 | ' |
Fair Value | ' | 260,421,000 | 260,421,000 | ' |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | 258,101,000 | 258,101,000 | ' |
Securities Held-to-Maturity, Weighted Average Yield | ' | ' | ' | ' |
Weighted Average Yield (as a percent) | ' | ' | 3.07% | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | $260,421,000 | $260,421,000 | ' |
Securities_Details_2
Securities (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | security | security |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 35 | 32 |
Greater than 12 months in an unrealized loss position | 5 | 3 |
Total | 40 | 35 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | $9,400 | $2,140 |
Greater than 12 months in an unrealized loss position | 6,176 | 8,014 |
Total | 15,576 | 10,154 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 220,621 | 155,213 |
Greater than 12 months in an unrealized loss position | 17,040 | 12,300 |
Total | 237,661 | 167,513 |
U.S. Treasury | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 1 | ' |
Total | 1 | ' |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 6 | ' |
Total | 6 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 1,548 | ' |
Total | 1,548 | ' |
U.S. government agencies | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 1 | 4 |
Total | 1 | 4 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 52 | 120 |
Total | 52 | 120 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 1,693 | 17,039 |
Total | 1,693 | 17,039 |
U.S. government agency mortgage-backed | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | ' | 12 |
Total | ' | 12 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | ' | 583 |
Total | ' | 583 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | ' | 53,184 |
Total | ' | 53,184 |
States and political subdivisions | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 7 | ' |
Total | 7 | ' |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 165 | ' |
Total | 165 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 6,195 | ' |
Total | 6,195 | ' |
Corporate bonds | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 5 | 4 |
Greater than 12 months in an unrealized loss position | 2 | ' |
Total | 7 | 4 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 717 | 55 |
Greater than 12 months in an unrealized loss position | 47 | ' |
Total | 764 | 55 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 13,009 | 9,724 |
Greater than 12 months in an unrealized loss position | 2,162 | ' |
Total | 15,171 | 9,724 |
Collateralized mortgage obligations | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 3 | 6 |
Greater than 12 months in an unrealized loss position | ' | 1 |
Total | 3 | 7 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 3,676 | 1,060 |
Greater than 12 months in an unrealized loss position | ' | 30 |
Total | 3,676 | 1,090 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 35,471 | 37,778 |
Greater than 12 months in an unrealized loss position | ' | 2,343 |
Total | 35,471 | 40,121 |
Asset-backed securities | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 18 | 6 |
Greater than 12 months in an unrealized loss position | 1 | ' |
Total | 19 | 6 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 4,784 | 322 |
Greater than 12 months in an unrealized loss position | 43 | ' |
Total | 4,827 | 322 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 162,705 | 37,488 |
Greater than 12 months in an unrealized loss position | 3,791 | ' |
Total | 166,496 | 37,488 |
CDOs | ' | ' |
Number of Securities | ' | ' |
Greater than 12 months in an unrealized loss position | 2 | 2 |
Total | 2 | 2 |
Unrealized Losses | ' | ' |
Greater than 12 months in an unrealized loss position | 6,086 | 7,984 |
Total | 6,086 | 7,984 |
Fair Value | ' | ' |
Greater than 12 months in an unrealized loss position | 11,087 | 9,957 |
Total | $11,087 | $9,957 |
Securities_Details_3
Securities (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale securities | ' | ' |
Gross Unrealized Loss | ($15,576) | ($10,154) |
CDOs | ' | ' |
Available-for-sale securities | ' | ' |
Amortized Cost | 17,173 | 17,941 |
Fair Value | 11,087 | 9,957 |
Gross Unrealized Loss | -6,086 | -7,984 |
Class A1 | ' | ' |
Available-for-sale securities | ' | ' |
Amortized Cost | 8,157 | 9,038 |
Fair Value | 5,619 | 5,768 |
Gross Unrealized Loss | -2,538 | -3,270 |
Number of Banks in Issuance | 63 | 63 |
Issuance Deferrals & Defaults, Amount | 207,000 | 208,000 |
Issuance Deferrals & Defaults, Collateral (as a percent) | 27.60% | 27.70% |
Issuance Excess Subordination, Amount | 227,472 | 190,982 |
Issuance Excess Subordination, Collateral (as a percent) | 30.30% | 25.50% |
Class A2A | ' | ' |
Available-for-sale securities | ' | ' |
Amortized Cost | 9,016 | 8,903 |
Fair Value | 5,468 | 4,189 |
Gross Unrealized Loss | -3,548 | -4,714 |
Number of Banks in Issuance | 63 | 63 |
Issuance Deferrals & Defaults, Amount | 207,000 | 208,000 |
Issuance Deferrals & Defaults, Collateral (as a percent) | 27.60% | 27.70% |
Issuance Excess Subordination, Amount | $130,472 | $93,982 |
Issuance Excess Subordination, Collateral (as a percent) | 17.40% | 12.50% |
Loans_Details
Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Investor concentration risk | Overdraft | Overdraft | Lease financing receivables | Lease financing receivables | Other | Other | Commercial | Commercial | Commercial | Total real estate | Total real estate | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - residential | Real estate - residential | Real estate - residential | Consumer | Consumer | Consumer | |||
Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total loans, gross | $1,077,105 | $1,149,944 | ' | ' | $544 | $994 | $11,204 | $6,060 | $13,236 | $16,451 | $86,822 | $86,941 | ' | ' | ' | $554,874 | $579,687 | ' | $30,996 | $42,167 | ' | $376,859 | $414,543 | ' | $2,570 | $3,101 | ' |
Net deferred loan fees | 535 | 106 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Loans | $1,077,640 | $1,150,050 | $1,208,289 | ' | ' | ' | ' | ' | ' | ' | $98,026 | $93,001 | $84,667 | ' | ' | $554,874 | ' | $621,715 | $30,996 | ' | $48,606 | $376,859 | ' | $436,837 | $2,570 | $3,101 | $3,167 |
Significant concentrations of loans (as a percent) | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans receivable as a percentage of total portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 89.30% | 90.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans_Details_2
Loans (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | $2,244 | $6,529 | ' |
60-89 Days Past Due | 434 | 6,357 | ' |
90 Days or Greater Past Due | 45 | 89 | ' |
Total Past Due | 2,723 | 12,975 | ' |
Current | 1,031,355 | 1,059,556 | ' |
Nonaccrual | 43,562 | 77,519 | ' |
Total Loans | 1,077,640 | 1,150,050 | 1,208,289 |
Recorded Investment 90 days or Greater Past Due and Accruing | 45 | 89 | ' |
Commercial | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | 69 | 159 | ' |
60-89 Days Past Due | 132 | ' | ' |
Total Past Due | 201 | 159 | ' |
Current | 97,796 | 92,080 | ' |
Nonaccrual | 29 | 762 | ' |
Total Loans | 98,026 | 93,001 | 84,667 |
Real estate - commercial | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Total Loans | 554,874 | ' | 621,715 |
Real estate - commercial | Owner occupied general purpose | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | 165 | 1,580 | ' |
60-89 Days Past Due | ' | 50 | ' |
Total Past Due | 165 | 1,630 | ' |
Current | 109,584 | 119,994 | ' |
Nonaccrual | 3,497 | 5,487 | ' |
Total Loans | 113,246 | 127,111 | ' |
Real estate - commercial | Owner occupied special purpose | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | 650 | 172 | ' |
60-89 Days Past Due | 227 | ' | ' |
Total Past Due | 877 | 172 | ' |
Current | 162,435 | 149,439 | ' |
Nonaccrual | 5,947 | 11,433 | ' |
Total Loans | 169,259 | 161,044 | ' |
Real estate - commercial | Non-owner occupied general purpose | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
60-89 Days Past Due | ' | 1,046 | ' |
Total Past Due | ' | 1,046 | ' |
Current | 128,084 | 128,817 | ' |
Nonaccrual | 7,273 | 13,436 | ' |
Total Loans | 135,357 | 143,299 | ' |
Real estate - commercial | Non-owner occupied special purpose | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
60-89 Days Past Due | ' | 4,304 | ' |
Total Past Due | ' | 4,304 | ' |
Current | 75,595 | 69,299 | ' |
Nonaccrual | 438 | 477 | ' |
Total Loans | 76,033 | 74,080 | ' |
Real estate - commercial | Retail properties | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Current | 39,829 | 37,732 | ' |
Nonaccrual | 5,056 | 10,532 | ' |
Total Loans | 44,885 | 48,264 | ' |
Real estate - commercial | Farm | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Current | 16,094 | 23,372 | ' |
Nonaccrual | ' | 2,517 | ' |
Total Loans | 16,094 | 25,889 | ' |
Real estate - construction | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Total Loans | 30,996 | ' | 48,606 |
Real estate - construction | Homebuilder | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Current | 4,563 | 4,469 | ' |
Nonaccrual | 168 | 1,855 | ' |
Total Loans | 4,731 | 6,324 | ' |
Real estate - construction | Land | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Current | 4,640 | 2,747 | ' |
Nonaccrual | 209 | 254 | ' |
Total Loans | 4,849 | 3,001 | ' |
Real estate - construction | Commercial speculative | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Current | 8,811 | 10,755 | ' |
Nonaccrual | 3,534 | 6,587 | ' |
Total Loans | 12,345 | 17,342 | ' |
Real estate - construction | All other | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | ' | 300 | ' |
60-89 Days Past Due | ' | 215 | ' |
90 Days or Greater Past Due | ' | 68 | ' |
Total Past Due | ' | 583 | ' |
Current | 8,323 | 14,360 | ' |
Nonaccrual | 748 | 557 | ' |
Total Loans | 9,071 | 15,500 | ' |
Recorded Investment 90 days or Greater Past Due and Accruing | ' | 68 | ' |
Real estate - residential | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Total Loans | 376,859 | ' | 436,837 |
Real estate - residential | Investor | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | 213 | 276 | ' |
60-89 Days Past Due | ' | 164 | ' |
Total Past Due | 213 | 440 | ' |
Current | 122,031 | 140,141 | ' |
Nonaccrual | 8,307 | 9,910 | ' |
Total Loans | 130,551 | 150,491 | ' |
Real estate - residential | Owner occupied | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | 625 | 3,151 | ' |
60-89 Days Past Due | ' | 375 | ' |
90 Days or Greater Past Due | ' | 21 | ' |
Total Past Due | 625 | 3,547 | ' |
Current | 112,515 | 110,735 | ' |
Nonaccrual | 5,858 | 9,918 | ' |
Total Loans | 118,998 | 124,200 | ' |
Recorded Investment 90 days or Greater Past Due and Accruing | ' | 21 | ' |
Real estate - residential | Revolving and junior liens | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | 522 | 888 | ' |
60-89 Days Past Due | 75 | 203 | ' |
90 Days or Greater Past Due | 45 | ' | ' |
Total Past Due | 642 | 1,091 | ' |
Current | 124,170 | 134,990 | ' |
Nonaccrual | 2,498 | 3,771 | ' |
Total Loans | 127,310 | 139,852 | ' |
Recorded Investment 90 days or Greater Past Due and Accruing | 45 | ' | ' |
Consumer | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
30-59 Days Past Due | ' | 3 | ' |
Total Past Due | ' | 3 | ' |
Current | 2,570 | 3,075 | ' |
Nonaccrual | ' | 23 | ' |
Total Loans | 2,570 | 3,101 | 3,167 |
All other | ' | ' | ' |
Aged analysis of past due loans | ' | ' | ' |
Current | 14,315 | 17,551 | ' |
Total Loans | $14,315 | $17,551 | $13,297 |
Loans_Details_3
Loans (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Greater than | Commercial | Commercial | Commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Consumer | Consumer | Consumer | All other | All other | All other | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Pass | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Special Mention | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | Substandard | ||||
Owner occupied general purpose | Owner occupied general purpose | Owner occupied special purpose | Owner occupied special purpose | Non-owner occupied general purpose | Non-owner occupied general purpose | Non-owner occupied special purpose | Non-owner occupied special purpose | Retail properties | Retail properties | Farm | Farm | Homebuilder | Homebuilder | Land | Land | Commercial speculative | Commercial speculative | All other | All other | Investor | Investor | Owner occupied | Owner occupied | Revolving and junior liens | Revolving and junior liens | Commercial | Commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Consumer | Consumer | All other | All other | Commercial | Commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | All other | Commercial | Commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - commercial | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - construction | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Real estate - residential | Consumer | Consumer | ||||||||||||||||||||||||||
Owner occupied general purpose | Owner occupied general purpose | Owner occupied special purpose | Owner occupied special purpose | Non-owner occupied general purpose | Non-owner occupied general purpose | Non-owner occupied special purpose | Non-owner occupied special purpose | Retail properties | Retail properties | Farm | Farm | Homebuilder | Homebuilder | Land | Land | Commercial speculative | Commercial speculative | All other | All other | Investor | Investor | Owner occupied | Owner occupied | Revolving and junior liens | Revolving and junior liens | Owner occupied general purpose | Owner occupied general purpose | Owner occupied special purpose | Owner occupied special purpose | Non-owner occupied general purpose | Non-owner occupied general purpose | Non-owner occupied special purpose | Non-owner occupied special purpose | Retail properties | Retail properties | Farm | Farm | Homebuilder | Homebuilder | Commercial speculative | All other | All other | Investor | Investor | Owner occupied | Owner occupied | Revolving and junior liens | Revolving and junior liens | Owner occupied general purpose | Owner occupied general purpose | Owner occupied special purpose | Owner occupied special purpose | Non-owner occupied general purpose | Non-owner occupied general purpose | Non-owner occupied special purpose | Non-owner occupied special purpose | Retail properties | Retail properties | Farm | Homebuilder | Homebuilder | Land | Land | Commercial speculative | Commercial speculative | All other | All other | Investor | Investor | Owner occupied | Owner occupied | Revolving and junior liens | Revolving and junior liens | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans by risk rating | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan commitment for inclusion in credit quality analysis | ' | ' | ' | $50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Loans | $1,077,640,000 | $1,150,050,000 | $1,208,289,000 | ' | $98,026,000 | $93,001,000 | $84,667,000 | $554,874,000 | $621,715,000 | $113,246,000 | $127,111,000 | $169,259,000 | $161,044,000 | $135,357,000 | $143,299,000 | $76,033,000 | $74,080,000 | $44,885,000 | $48,264,000 | $16,094,000 | $25,889,000 | $30,996,000 | $48,606,000 | $4,731,000 | $6,324,000 | $4,849,000 | $3,001,000 | $12,345,000 | $17,342,000 | $9,071,000 | $15,500,000 | $376,859,000 | $436,837,000 | $130,551,000 | $150,491,000 | $118,998,000 | $124,200,000 | $127,310,000 | $139,852,000 | $2,570,000 | $3,101,000 | $3,167,000 | $14,315,000 | $17,551,000 | $13,297,000 | $964,739,000 | $978,118,000 | $89,051,000 | $88,071,000 | $97,309,000 | $113,118,000 | $159,678,000 | $134,152,000 | $118,741,000 | $105,192,000 | $61,874,000 | $68,682,000 | $35,833,000 | $32,715,000 | $14,607,000 | $21,262,000 | $1,216,000 | $1,318,000 | $4,640,000 | $2,747,000 | $5,232,000 | $7,122,000 | $8,289,000 | $14,607,000 | $116,627,000 | $123,876,000 | $111,323,000 | $110,858,000 | $123,435,000 | $133,992,000 | $2,569,000 | $3,075,000 | $14,315,000 | $17,331,000 | $43,959,000 | $55,688,000 | $8,711,000 | $3,867,000 | $8,560,000 | $2,995,000 | $1,480,000 | $9,036,000 | $1,574,000 | $14,273,000 | $9,893,000 | $3,911,000 | $3,006,000 | $1,873,000 | $1,487,000 | $2,110,000 | $1,770,000 | $2,196,000 | $3,579,000 | $34,000 | $37,000 | $3,282,000 | $14,608,000 | $383,000 | $396,000 | $200,000 | $166,000 | $220,000 | $68,942,000 | $116,244,000 | $264,000 | $1,063,000 | $7,377,000 | $10,998,000 | $8,101,000 | $17,856,000 | $15,042,000 | $23,834,000 | $4,266,000 | $1,487,000 | $6,046,000 | $13,676,000 | $2,517,000 | $1,745,000 | $2,810,000 | $209,000 | $254,000 | $3,534,000 | $10,220,000 | $748,000 | $856,000 | $10,642,000 | $12,007,000 | $7,292,000 | $12,946,000 | $3,675,000 | $5,694,000 | $1,000 | $26,000 |
Loans_Details_4
Loans (Details 4) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | $46,232 | ' | $60,679 |
With an allowance recorded | 8,019 | ' | 28,306 |
Total impaired loans | 54,251 | ' | 88,985 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 56,952 | ' | 77,940 |
With an allowance recorded | 11,793 | ' | 36,433 |
Total impaired loans | 68,745 | ' | 114,373 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 2,150 | ' | 6,259 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 53,456 | 68,230 | ' |
With an allowance recorded | 18,162 | 53,203 | ' |
Total impaired loans | 71,618 | 121,433 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 392 | 482 | ' |
With an allowance recorded | 12 | 34 | ' |
Total impaired loans | 404 | 516 | ' |
Commercial | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 29 | ' | 196 |
With an allowance recorded | ' | ' | 566 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 35 | ' | 229 |
With an allowance recorded | ' | ' | 619 |
Related Allowance | ' | ' | ' |
With an allowance recorded | ' | ' | 458 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 113 | 516 | ' |
With an allowance recorded | 283 | 646 | ' |
Commercial real estate | Owner occupied general purpose | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 2,657 | ' | 4,473 |
With an allowance recorded | 935 | ' | 1,014 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 3,016 | ' | 5,021 |
With an allowance recorded | 955 | ' | 1,057 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 322 | ' | 230 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 3,565 | 4,149 | ' |
With an allowance recorded | 974 | 5,173 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 3 | ' | ' |
Commercial real estate | Owner occupied special purpose | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 4,647 | ' | 7,180 |
With an allowance recorded | 1,300 | ' | 4,253 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 5,529 | ' | 8,486 |
With an allowance recorded | 1,493 | ' | 6,200 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 371 | ' | 712 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 5,913 | 10,222 | ' |
With an allowance recorded | 2,777 | 4,505 | ' |
Commercial real estate | Non-owner occupied general purpose | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,633 | ' | 14,356 |
With an allowance recorded | 183 | ' | 2,779 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 12,131 | ' | 17,381 |
With an allowance recorded | 183 | ' | 3,906 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 57 | ' | 204 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 11,995 | 10,996 | ' |
With an allowance recorded | 1,481 | 9,047 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 113 | 210 | ' |
Commercial real estate | Non-owner occupied special purpose | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 438 | ' | 477 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 623 | ' | 634 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 457 | 933 | ' |
With an allowance recorded | ' | 217 | ' |
Commercial real estate | Retail properties | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 5,056 | ' | 8,780 |
With an allowance recorded | ' | ' | 1,752 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 6,293 | ' | 15,323 |
With an allowance recorded | ' | ' | 1,812 |
Related Allowance | ' | ' | ' |
With an allowance recorded | ' | ' | 1,102 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 6,918 | 5,851 | ' |
With an allowance recorded | 876 | 7,958 | ' |
Commercial real estate | Farm | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 2,517 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | ' | ' | 2,517 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 1,259 | 1,335 | ' |
With an allowance recorded | ' | 347 | ' |
Construction | Homebuilder | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 3,039 | ' | 4,155 |
With an allowance recorded | 168 | ' | 26 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 3,039 | ' | 4,729 |
With an allowance recorded | 604 | ' | 75 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 71 | ' | 3 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 3,597 | 7,952 | ' |
With an allowance recorded | 97 | 2,411 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 120 | 83 | ' |
Construction | Land | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 209 | ' | 254 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 308 | ' | 308 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 231 | 1,021 | ' |
Construction | Commercial speculative | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 1,913 | ' | 2,265 |
With an allowance recorded | 1,621 | ' | 4,322 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 2,550 | ' | 3,451 |
With an allowance recorded | 4,225 | ' | 6,613 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 100 | ' | 757 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 2,089 | 6,297 | ' |
With an allowance recorded | 2,971 | 4,554 | ' |
Construction | All other | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 297 | ' | 78 |
With an allowance recorded | 451 | ' | 479 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 333 | ' | 168 |
With an allowance recorded | 477 | ' | 649 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 241 | ' | 353 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 188 | 2,204 | ' |
With an allowance recorded | 465 | 459 | ' |
Residential | Investor | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 6,523 | ' | 5,168 |
With an allowance recorded | 1,784 | ' | 4,742 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 8,580 | ' | 6,979 |
With an allowance recorded | 2,151 | ' | 5,954 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 584 | ' | 477 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 5,845 | 4,500 | ' |
With an allowance recorded | 3,263 | 9,552 | ' |
Residential | Owner occupied | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,823 | ' | 9,389 |
With an allowance recorded | 986 | ' | 5,909 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 11,629 | ' | 11,002 |
With an allowance recorded | 1,082 | ' | 6,923 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 161 | ' | 1,089 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 9,606 | 10,788 | ' |
With an allowance recorded | 3,448 | 6,726 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 151 | 187 | ' |
With an allowance recorded | 12 | 34 | ' |
Residential | Revolving and junior liens | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | 1,968 | ' | 1,368 |
With an allowance recorded | 591 | ' | 2,464 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | 2,886 | ' | 1,689 |
With an allowance recorded | 623 | ' | 2,625 |
Related Allowance | ' | ' | ' |
With an allowance recorded | 243 | ' | 874 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | 1,668 | 1,466 | ' |
With an allowance recorded | 1,527 | 1,608 | ' |
Interest Income Recognized | ' | ' | ' |
With no related allowance recorded | 5 | 2 | ' |
Consumer | ' | ' | ' |
Recorded Investment | ' | ' | ' |
With no related allowance recorded | ' | ' | 23 |
Unpaid Principal Balance | ' | ' | ' |
With no related allowance recorded | ' | ' | 23 |
Average Recorded Investment | ' | ' | ' |
With no related allowance recorded | $12 | ' | ' |
Loans_Details_5
Loans (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
contract | contract | contract | contract | |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | 2 | 3 | 9 |
Pre-modification recorded investment | ' | $1,094 | $777 | $5,246 |
Post-modification recorded investment | ' | 600 | 638 | 4,212 |
TDR's defaulted | ' | ' | ' | ' |
# of contracts | 3 | 1 | 4 | 1 |
Pre-modification outstanding recorded investment during the period | 815 | 460 | 970 | 460 |
Real estate - residential | Owner occupied | Deferral | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | ' | 1 | 1 |
Pre-modification recorded investment | ' | ' | 137 | 108 |
Post-modification recorded investment | ' | ' | 137 | 108 |
Real estate - residential | Owner occupied | Other | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | ' | 1 | ' |
Pre-modification recorded investment | ' | ' | 30 | ' |
Post-modification recorded investment | ' | ' | 29 | ' |
Real estate - residential | Owner occupied special purpose | ' | ' | ' | ' |
TDR's defaulted | ' | ' | ' | ' |
# of contracts | 1 | ' | 1 | ' |
Pre-modification outstanding recorded investment during the period | 610 | ' | 610 | ' |
Real estate - residential | Investor | ' | ' | ' | ' |
TDR's defaulted | ' | ' | ' | ' |
# of contracts | ' | ' | 1 | ' |
Pre-modification outstanding recorded investment during the period | ' | ' | 155 | ' |
Real estate - residential | Investor | Deferral | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | 1 | ' | 2 |
Pre-modification recorded investment | ' | 405 | ' | 405 |
Post-modification recorded investment | ' | 167 | ' | 167 |
Real estate - residential | Investor | Bifurcate | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | ' | ' | 1 |
Pre-modification recorded investment | ' | ' | ' | 337 |
Post-modification recorded investment | ' | ' | ' | 88 |
Real estate - residential | Revolving and junior liens | ' | ' | ' | ' |
TDR's defaulted | ' | ' | ' | ' |
# of contracts | 1 | ' | 1 | ' |
Pre-modification outstanding recorded investment during the period | 30 | ' | 30 | ' |
Real estate - residential | Revolving and junior liens | HAMP | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | ' | ' | 1 |
Pre-modification recorded investment | ' | ' | ' | 117 |
Post-modification recorded investment | ' | ' | ' | 61 |
Real estate - commercial | Deferral | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | 1 | 1 | 2 |
Pre-modification recorded investment | ' | 689 | 610 | 898 |
Post-modification recorded investment | ' | 433 | 472 | 640 |
Real estate - commercial | Interest | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' |
# of contracts modified during the period | ' | ' | ' | 2 |
Pre-modification recorded investment | ' | ' | ' | 3,381 |
Post-modification recorded investment | ' | ' | ' | 3,148 |
Real estate - commercial | Owner occupied | ' | ' | ' | ' |
TDR's defaulted | ' | ' | ' | ' |
# of contracts | 1 | ' | 1 | ' |
Pre-modification outstanding recorded investment during the period | 175 | ' | 175 | ' |
Real estate - construction | Commercial speculative | ' | ' | ' | ' |
TDR's defaulted | ' | ' | ' | ' |
# of contracts | ' | 1 | ' | 1 |
Pre-modification outstanding recorded investment during the period | ' | $460 | ' | $460 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | $35,042 | $40,286 | $38,597 | $51,997 | ' |
Charge-offs | 4,695 | 2,682 | 9,303 | 23,934 | ' |
Recoveries | 950 | 2,653 | 6,303 | 5,910 | ' |
Provision (release) | -1,750 | ' | -6,050 | 6,284 | ' |
Ending Balance | 29,547 | 40,257 | 29,547 | 40,257 | ' |
Ending balance: Individually evaluated for impairment | 2,150 | 7,585 | 2,150 | 7,585 | ' |
Ending balance: Collectively evaluated for impairment | 27,397 | 32,672 | 27,397 | 32,672 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 1,077,640 | 1,208,289 | 1,077,640 | 1,208,289 | 1,150,050 |
Ending balance: Individually evaluated for impairment | 54,251 | 104,240 | 54,251 | 104,240 | ' |
Ending balance: Collectively evaluated for impairment | 1,023,389 | 1,104,049 | 1,023,389 | 1,104,049 | ' |
Substandard | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 68,942 | ' | 68,942 | ' | 116,244 |
Commercial | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 3,332 | 4,783 | 4,517 | 5,070 | ' |
Charge-offs | 29 | 2 | 308 | 110 | ' |
Recoveries | 60 | 22 | 104 | 32 | ' |
Provision (release) | -469 | -251 | -1,419 | -440 | ' |
Ending Balance | 2,894 | 4,552 | 2,894 | 4,552 | ' |
Ending balance: Individually evaluated for impairment | ' | 514 | ' | 514 | ' |
Ending balance: Collectively evaluated for impairment | 2,894 | 4,038 | 2,894 | 4,038 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 98,026 | 84,667 | 98,026 | 84,667 | 93,001 |
Ending balance: Individually evaluated for impairment | 29 | 1,157 | 29 | 1,157 | ' |
Ending balance: Collectively evaluated for impairment | 97,997 | 83,510 | 97,997 | 83,510 | ' |
Commercial | Substandard | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 264 | ' | 264 | ' | 1,063 |
Real Estate Commercial | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 18,097 | 23,766 | 20,100 | 30,770 | ' |
Charge-offs | 851 | 355 | 2,377 | 12,694 | ' |
Recoveries | 523 | 76 | 3,752 | 1,698 | ' |
Provision (release) | -1,354 | -939 | -5,060 | 2,774 | ' |
Ending Balance | 16,415 | 22,548 | 16,415 | 22,548 | ' |
Ending balance: Individually evaluated for impairment | 750 | 3,113 | 750 | 3,113 | ' |
Ending balance: Collectively evaluated for impairment | 15,665 | 19,435 | 15,665 | 19,435 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 554,874 | 621,715 | 554,874 | 621,715 | ' |
Ending balance: Individually evaluated for impairment | 24,849 | 56,176 | 24,849 | 56,176 | ' |
Ending balance: Collectively evaluated for impairment | 530,025 | 565,539 | 530,025 | 565,539 | ' |
Real Estate Commercial | Substandard high risk pool | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Ending Balance | 2,700 | 2,200 | 2,700 | 2,200 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 14,400 | 19,700 | 14,400 | 19,700 | ' |
Real Estate Construction | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 2,690 | 5,501 | 3,837 | 7,937 | ' |
Charge-offs | 53 | 909 | 951 | 4,251 | ' |
Recoveries | 15 | 2,202 | 1,265 | 3,373 | ' |
Provision (release) | -252 | -2,366 | -1,751 | -2,631 | ' |
Ending Balance | 2,400 | 4,428 | 2,400 | 4,428 | ' |
Ending balance: Individually evaluated for impairment | 412 | 1,408 | 412 | 1,408 | ' |
Ending balance: Collectively evaluated for impairment | 1,988 | 3,020 | 1,988 | 3,020 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 30,996 | 48,606 | 30,996 | 48,606 | ' |
Ending balance: Individually evaluated for impairment | 7,698 | 15,988 | 7,698 | 15,988 | ' |
Ending balance: Collectively evaluated for impairment | 23,298 | 32,618 | 23,298 | 32,618 | ' |
Real Estate Residential | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 5,021 | 4,141 | 4,535 | 6,335 | ' |
Charge-offs | 3,594 | 1,230 | 5,193 | 6,416 | ' |
Recoveries | 209 | 219 | 792 | 452 | ' |
Provision (release) | 1,352 | 1,342 | 2,854 | 4,101 | ' |
Ending Balance | 2,988 | 4,472 | 2,988 | 4,472 | ' |
Ending balance: Individually evaluated for impairment | 988 | 2,550 | 988 | 2,550 | ' |
Ending balance: Collectively evaluated for impairment | 2,000 | 1,922 | 2,000 | 1,922 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 376,859 | 436,837 | 376,859 | 436,837 | ' |
Ending balance: Individually evaluated for impairment | 21,675 | 30,919 | 21,675 | 30,919 | ' |
Ending balance: Collectively evaluated for impairment | 355,184 | 405,918 | 355,184 | 405,918 | ' |
Consumer | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 1,372 | 1,063 | 1,178 | 884 | ' |
Charge-offs | 168 | 186 | 474 | 463 | ' |
Recoveries | 143 | 134 | 390 | 355 | ' |
Provision (release) | 162 | 104 | 415 | 339 | ' |
Ending Balance | 1,509 | 1,115 | 1,509 | 1,115 | ' |
Ending balance: Collectively evaluated for impairment | 1,509 | 1,115 | 1,509 | 1,115 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 2,570 | 3,167 | 2,570 | 3,167 | 3,101 |
Ending balance: Collectively evaluated for impairment | 2,570 | 3,167 | 2,570 | 3,167 | ' |
Consumer | Substandard | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 1 | ' | 1 | ' | 26 |
Unallocated | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | 4,530 | 1,032 | 4,430 | 1,001 | ' |
Provision (release) | -1,189 | 2,110 | -1,089 | 2,141 | ' |
Ending Balance | 3,341 | 3,142 | 3,341 | 3,142 | ' |
Ending balance: Collectively evaluated for impairment | 3,341 | 3,142 | 3,341 | 3,142 | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 14,315 | 13,297 | 14,315 | 13,297 | 17,551 |
Ending balance: Collectively evaluated for impairment | $14,315 | $13,297 | $14,315 | $13,297 | ' |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ' | ' | ' | ' |
Balance at beginning of period | $59,465 | $89,671 | $72,423 | $93,290 |
Property additions | 3,015 | 7,594 | 14,196 | 26,944 |
Development improvements | 10 | 131 | 60 | 646 |
Less: Property Disposals, net of gains/losses | 11,463 | 4,829 | 30,928 | 20,517 |
Less: Period valuation adjustments | 1,961 | 4,474 | 6,685 | 12,270 |
Balance at end of period | 49,066 | 88,093 | 49,066 | 88,093 |
Activity in the valuation allowance | ' | ' | ' | ' |
Balance at beginning of period | 30,487 | 27,469 | 31,454 | 23,462 |
Provision for unrealized losses | 1,961 | 4,474 | 6,537 | 12,101 |
Reduction taken on sales | -7,571 | -2,657 | -13,305 | -6,446 |
Other adjustments | -290 | ' | -99 | 169 |
Balance at end of period | 24,587 | 29,286 | 24,587 | 29,286 |
Expenses related to foreclosed assets, net of lease revenue | ' | ' | ' | ' |
Gain on sales, net | -608 | -20 | -1,175 | -398 |
Provision for unrealized losses | 1,961 | 4,474 | 6,537 | 12,101 |
Operating expenses | 1,500 | 2,071 | 4,555 | 5,886 |
Less: Lease revenue | 309 | 840 | 974 | 2,930 |
Expenses related to foreclosed assets, net of lease revenue | $2,544 | $5,685 | $8,943 | $14,659 |
Deposits_Details
Deposits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits | ' | ' |
Noninterest bearing demand | $373,499 | $379,451 |
Savings | 227,823 | 216,305 |
NOW accounts | 272,632 | 286,860 |
Money market accounts | 309,066 | 323,811 |
Certificates of deposit of less than $100,000 | 299,632 | 318,844 |
Certificates of deposit of $100,000 or more | 190,471 | 191,948 |
Total deposits | $1,673,123 | $1,717,219 |
Borrowings_Details
Borrowings (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2008 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Securities sold under repurchase agreements | Securities sold under repurchase agreements | Securities sold under repurchase agreements | Securities sold under repurchase agreements | FHLB advances | FHLB advances | Subordinated debt | Subordinated debt | Notes payable and other borrowings | Notes payable and other borrowings | Credit facility with LaSalle Bank National Association (now Bank of America) | Credit facility with LaSalle Bank National Association (now Bank of America) | Senior debt facility | Senior debt facility | Senior debt facility | Term debt | Term debt | Junior subordinated debentures | Junior subordinated debentures | Line of credit | Line of credit | |||
item | Minimum | Maximum | item | item | LIBOR | Prime rate | |||||||||||||||||
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total borrowings | $179,597,000 | $221,753,000 | $20,719,000 | $17,875,000 | ' | ' | $55,000,000 | $100,000,000 | $45,000,000 | $45,000,000 | $500,000 | $500,000 | ' | ' | ' | ' | ' | $500,000 | $500,000 | $58,378,000 | $58,378,000 | ' | ' |
Maturity | ' | ' | ' | ' | '1 day | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of securities secured | ' | ' | 32,100,000 | 26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers having secured balances exceeding specified percentage of stockholders equity | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold percentage of stockholders' equity | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of interest on FHLBC stock (as a percent) | ' | ' | ' | ' | ' | ' | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank owned FHLBC stock | 5,500,000 | 6,400,000 | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total funding availability | ' | ' | ' | ' | ' | ' | 99,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount available for additional borrowings | ' | ' | ' | ' | ' | ' | 44,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,500,000 | ' | 30,500,000 | ' | ' | 500,000 | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate base | ' | ' | ' | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | ' | ' | ' | ' | ' | 'three-month LIBOR | 'Prime rate | ' | ' | ' | ' | ' | ' |
Basis points added to reference rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | 0.90% | ' | ' | ' | ' | ' | ' | ' |
Principal outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 |
Number of financial covenants for which the entity continued to be out of compliance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in basis points on non compliance of covenant (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' |
Junior_Subordinated_Debentures1
Junior Subordinated Debentures (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2003 | Jun. 30, 2003 | Sep. 30, 2013 | Apr. 30, 2007 | Sep. 30, 2013 |
Old Second Capital Trust I | Old Second Capital Trust I | Old Second Capital Trust I | Old Second Capital Trust II | Old Second Capital Trust II | |
Junior subordinated debentures | ' | ' | ' | ' | ' |
Proceeds from sale of cumulative trust preferred securities | $4.10 | $27.50 | ' | $25 | ' |
Amortization period | ' | ' | '30 years | ' | '30 years |
Maturity Period | ' | ' | '30 years | ' | '30 years |
Cash distribution rate of trust preferred securities (as a percent) | ' | ' | 7.80% | ' | ' |
Cash distribution fixed rate of trust preferred securities (as a percent) | ' | ' | ' | ' | 6.77% |
Cash distribution, floating rate base | ' | ' | ' | ' | 'three-month LIBOR |
Basis points added to cash distribution floating rate base (as a percent) | ' | ' | ' | ' | 1.50% |
Junior_Subordinated_Debentures2
Junior Subordinated Debentures (Details 2) (Junior subordinated debentures, USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Aug. 31, 2010 |
Q | ||
Junior subordinated debentures | ' | ' |
Period of interest payments that may be deferred (in quarters) | 20 | ' |
Face amount | ' | $58.40 |
Total accumulated unpaid interest including compounded interest | 15.7 | ' |
Old Second Capital Trust I | ' | ' |
Junior subordinated debentures | ' | ' |
Amount issued to trust | 32.6 | ' |
Old Second Capital Trust II | ' | ' |
Junior subordinated debentures | ' | ' |
Amount issued to trust | $25.80 | ' |
LongTerm_Incentive_Plan_Detail
Long-Term Incentive Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | |
Stock options | Stock options | Stock options | Stock options | Restricted stock and restricted stock units | Restricted stock and restricted stock units | Restricted stock and restricted stock units | Restricted stock and restricted stock units | Restricted awards | Restricted awards | |||||
Long-Term Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | 1,908,332 | ' | 1,908,332 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares issuable | 45,368 | ' | 45,368 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Term of stock options granted | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Total compensation cost | $57,000 | $67,000 | $123,000 | $220,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost | ' | ' | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance outstanding at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | 409,500 | ' | ' | ' | ' | ' | ' | ' |
Canceled (in shares) | ' | ' | ' | ' | ' | ' | -2,000 | ' | ' | ' | ' | ' | ' | ' |
Balance outstanding at the end of the period (in shares) | ' | ' | ' | ' | 407,500 | ' | 407,500 | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of period (in shares) | ' | ' | ' | ' | 407,500 | ' | 407,500 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | $28.75 | ' | ' | ' | ' | ' | ' | ' |
Canceled (in dollars per share) | ' | ' | ' | ' | ' | ' | $32.59 | ' | ' | ' | ' | ' | ' | ' |
Balance outstanding at the end of the period (in dollars per share) | ' | ' | ' | ' | $28.74 | ' | $28.74 | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of period (in dollars per share) | ' | ' | ' | ' | $28.74 | ' | $28.74 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance outstanding at the end of the period | ' | ' | ' | ' | ' | ' | '2 years 3 months 11 days | ' | ' | ' | ' | ' | ' | ' |
Exercisable at end of period | ' | ' | ' | ' | ' | ' | '2 years 3 months 11 days | ' | ' | ' | ' | ' | ' | ' |
Nonvested shares of restricted shares rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested at the beginning of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 327,920 | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 155,500 | 60,000 | ' | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -241,920 | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,000 | ' | ' | ' |
Recaptured after Series B auction (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -45,000 | ' | ' | ' |
Nonvested at the end of the period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 185,500 | ' | 185,500 | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.21 | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.28 | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.50 | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.47 | ' | ' | ' |
Recaptured after Series B auction (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.25 | ' | ' | ' |
Nonvested at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $2.95 | ' | $2.95 | ' | ' | ' |
Restricted stock vested and recaptured (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,943 |
Benefit on recapture of restricted stock | ' | ' | 612,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 612,000 | ' |
Total unrecognized compensation cost of restricted awards | ' | ' | ' | ' | ' | ' | ' | ' | $411,000 | $161,000 | $411,000 | $161,000 | ' | ' |
Expected weighted-average period for recognition of unrecognized compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 5 months 16 days | '11 months 5 days | ' | ' |
Earnings_loss_Per_Share_Detail
Earnings (loss) Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic earnings (loss) per share: | ' | ' | ' | ' |
Weighted-average common shares outstanding | 13,885,884 | 14,084,328 | 13,947,606 | 14,070,783 |
Weighted-average common shares less stock based awards | 13,870,884 | 13,883,008 | 13,895,136 | 13,873,819 |
Weighted-average common shares stock based awards | 231,152 | 327,920 | 217,107 | 332,198 |
Net income (loss) | $72,924 | $120 | $81,872 | ($1,596) |
Dividends and accretion of discount on preferred shares | 1,323 | 1,255 | 3,917 | 3,716 |
Net income (loss) available to common stockholders | 71,601 | -1,135 | 77,955 | -5,312 |
Undistributed earnings (loss) | 71,601 | -1,135 | 77,955 | -5,312 |
Basic earnings (loss) per share common undistributed earnings (loss) (in dollars per share) | $5.08 | ($0.08) | $5.52 | ($0.37) |
Basic earnings (loss) per share (in dollars per share) | $5.08 | ($0.08) | $5.52 | ($0.37) |
Diluted earnings (loss) per share: | ' | ' | ' | ' |
Weighted-average common shares outstanding | 13,885,884 | 14,084,328 | 13,947,606 | 14,070,783 |
Diluted average common shares outstanding | 14,102,036 | 14,210,928 | 14,112,243 | 14,206,017 |
Net earnings (loss) available to common stockholders | $71,601 | ($1,135) | $77,955 | ($5,312) |
Diluted earnings (loss) per share (in dollars per share) | $5.08 | ($0.08) | $5.52 | ($0.37) |
Restricted awards | ' | ' | ' | ' |
Diluted earnings (loss) per share: | ' | ' | ' | ' |
Dilutive effect of restricted awards (in shares) | 216,152 | 126,600 | 164,637 | 135,234 |
Stock options | ' | ' | ' | ' |
Diluted earnings (loss) per share: | ' | ' | ' | ' |
Number of antidilutive options excluded from the diluted earnings per share calculation (in shares) | 1,224,839 | 1,286,839 | 1,224,839 | 1,286,839 |
Regulatory_Capital_Matters_Det
Regulatory & Capital Matters (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2011 | |
Series B Preferred Stock | Bank of America credit facility, subordinated debt | Bank of America credit facility, subordinated debt | Junior subordinated debentures | Junior subordinated debentures | Old Second National Bank | Old Second National Bank | Old Second National Bank | Old Second National Bank | |||
businesstrust | Maximum | Minimum | OCC Consent Order Plan | ||||||||
Q | |||||||||||
Regulatory & Capital Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier One leverage ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.41% | ' | ' | ' |
Actual over target Tier One leverage ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | 2.33% | ' | ' | ' |
Risk-based capital ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | 2.22% | ' | ' | ' |
Actual over target risk-based capital ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.83% | ' | ' | ' |
Total capital to risk weighted assets, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual at period end | $198,822,000 | $189,466,000 | ' | ' | ' | ' | ' | $224,171,000 | $206,496,000 | ' | ' |
Minimum Required for Capital Adequacy Purposes | 104,989,000 | 111,287,000 | ' | ' | ' | ' | ' | 104,998,000 | 111,169,000 | ' | ' |
Minimum Required to Be Well Capitalized | ' | ' | ' | ' | ' | ' | ' | 131,248,000 | 138,961,000 | ' | ' |
Total capital to risk weighted assets, Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-based capital ratio (as a percent) | 15.15% | 13.62% | ' | ' | ' | ' | ' | 17.08% | 14.86% | 12.00% | 11.25% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 8.00% | 8.00% | ' | ' | ' | ' | ' | 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 | 132,129,000 | 94,817,000 | ' | ' | ' | ' | ' | 207,607,000 | 188,873,000 | ' | ' |
Minimum Required for Capital Adequacy Purposes | 52,484,000 | 55,693,000 | ' | ' | ' | ' | ' | 52,492,000 | 55,592,000 | ' | ' |
Minimum Required to Be Well Capitalized | ' | ' | ' | ' | ' | ' | ' | 78,738,000 | 83,388,000 | ' | ' |
Tier 1 capital to risk weighted assets, Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual (as a percent) | 10.07% | 6.81% | ' | ' | ' | ' | ' | 15.82% | 13.59% | ' | ' |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.00% | 4.00% | ' | ' | ' | ' | ' | 4.00% | 4.00% | ' | ' |
Minimum Required to Be Well Capitalized (as a percent) | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' |
Tier 1 capital to average assets, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual | 132,129,000 | 94,817,000 | ' | ' | ' | ' | ' | 207,607,000 | 188,873,000 | ' | ' |
Minimum Required for Capital Adequacy Purposes | 74,334,000 | 78,200,000 | ' | ' | ' | ' | ' | 74,948,000 | 78,127,000 | ' | ' |
Minimum Required to Be Well Capitalized | ' | ' | ' | ' | ' | ' | ' | 93,685,000 | 97,659,000 | ' | ' |
Tier 1 capital to average assets, Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital leverage ratio (as a percent) | 7.11% | 4.85% | ' | ' | ' | ' | ' | 11.08% | 9.67% | 8.00% | 8.75% |
Minimum Required for Capital Adequacy Purposes (as a percent) | 4.00% | 4.00% | ' | ' | ' | ' | ' | 4.00% | 4.00% | ' | ' |
Minimum Required to Be Well Capitalized (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' |
Other regulatory capital information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated debt | 45,000,000 | 45,000,000 | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' |
Trust preferred proceeds qualified as Tier 1 regulatory capital | ' | ' | ' | 51,500,000 | 24,600,000 | ' | ' | ' | ' | ' | ' |
Trust preferred proceeds qualified as Tier 2 regulatory capital | ' | ' | ' | 5,100,000 | 32,000,000 | ' | ' | ' | ' | ' | ' |
Dividend Restrictions and Deferrals | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of previous years retained profit considered for dividend payment | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Junior subordinated debenture | 58,378,000 | 58,378,000 | ' | ' | ' | 58,400,000 | ' | ' | ' | ' | ' |
Number of statutory business trusts that hold junior subordinated debentures | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of quarterly periods for deferral of interest | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' |
Total amount of deferred and unpaid interest | ' | ' | ' | ' | ' | 15,700,000 | ' | ' | ' | ' | ' |
Deferred preferred stock dividends | ' | ' | $12,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Option_and_Fair_Val2
Fair Value Option and Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair Value Option and Fair Value Measurements | ' | ' | ' |
Significant transfers between levels | $0 | $0 | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 373,478 | ' | 579,886 |
Mortgage servicing rights | 5,456 | ' | 4,116 |
U.S. Treasury | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,548 | ' | 1,507 |
U.S. government agencies | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,693 | ' | 49,850 |
U.S. government agency mortgage-backed | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | ' | ' | 128,738 |
States and political subdivisions | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 19,841 | ' | 15,855 |
Corporate bonds | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 22,200 | ' | 36,886 |
Collateralized mortgage obligations | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 48,125 | ' | 169,600 |
Asset-backed securities | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 268,984 | ' | 167,493 |
CDOs | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 11,087 | ' | 9,957 |
Level 1 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,548 | ' | 1,507 |
Level 2 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 213,499 | ' | 568,290 |
Loans held-for-sale | 3,129 | ' | 9,571 |
Level 3 | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 158,431 | ' | 10,089 |
Recurring basis | Level 1 | ' | ' | ' |
Assets: | ' | ' | ' |
Total financial assets | 1,548 | ' | 1,507 |
Recurring basis | Level 1 | U.S. Treasury | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,548 | ' | 1,507 |
Recurring basis | Level 2 | ' | ' | ' |
Assets: | ' | ' | ' |
Loans held-for-sale | 3,129 | ' | 9,571 |
Total financial assets | 217,281 | ' | 579,777 |
Liabilities: | ' | ' | ' |
Liabilities at fair value | 585 | ' | 1,354 |
Recurring basis | Level 2 | Interest rate swap agreements net of swap credit valuation | ' | ' | ' |
Assets: | ' | ' | ' |
Other assets | 584 | ' | 1,349 |
Liabilities: | ' | ' | ' |
Other liabilities | 584 | ' | 1,349 |
Recurring basis | Level 2 | Forward MBS | ' | ' | ' |
Assets: | ' | ' | ' |
Other assets | 69 | ' | 567 |
Recurring basis | Level 2 | Interest rate lock commitments to borrowers | ' | ' | ' |
Liabilities: | ' | ' | ' |
Other liabilities | 1 | ' | 5 |
Recurring basis | Level 2 | U.S. government agencies | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,693 | ' | 49,850 |
Recurring basis | Level 2 | U.S. government agency mortgage-backed | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | ' | ' | 128,738 |
Recurring basis | Level 2 | States and political subdivisions | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 19,709 | ' | 15,723 |
Recurring basis | Level 2 | Corporate bonds | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 22,200 | ' | 36,886 |
Recurring basis | Level 2 | Collateralized mortgage obligations | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 48,125 | ' | 169,600 |
Recurring basis | Level 2 | Asset-backed securities | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 121,772 | ' | 167,493 |
Recurring basis | Level 3 | ' | ' | ' |
Assets: | ' | ' | ' |
Mortgage servicing rights | 5,456 | ' | 4,116 |
Total financial assets | 163,874 | ' | 14,158 |
Recurring basis | Level 3 | Interest rate swap agreements net of swap credit valuation | ' | ' | ' |
Assets: | ' | ' | ' |
Other assets | -13 | ' | -47 |
Recurring basis | Level 3 | States and political subdivisions | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 132 | ' | 132 |
Recurring basis | Level 3 | Asset-backed securities | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 147,212 | ' | ' |
Recurring basis | Level 3 | CDOs | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 11,087 | ' | 9,957 |
Recurring basis | Total | ' | ' | ' |
Assets: | ' | ' | ' |
Loans held-for-sale | 3,129 | ' | 9,571 |
Mortgage servicing rights | 5,456 | ' | 4,116 |
Total financial assets | 382,703 | ' | 595,442 |
Liabilities: | ' | ' | ' |
Liabilities at fair value | 585 | ' | 1,354 |
Recurring basis | Total | Interest rate swap agreements net of swap credit valuation | ' | ' | ' |
Assets: | ' | ' | ' |
Other assets | 571 | ' | 1,302 |
Liabilities: | ' | ' | ' |
Other liabilities | 584 | ' | 1,349 |
Recurring basis | Total | Forward MBS | ' | ' | ' |
Assets: | ' | ' | ' |
Other assets | 69 | ' | 567 |
Recurring basis | Total | Interest rate lock commitments to borrowers | ' | ' | ' |
Liabilities: | ' | ' | ' |
Other liabilities | 1 | ' | 5 |
Recurring basis | Total | U.S. Treasury | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,548 | ' | 1,507 |
Recurring basis | Total | U.S. government agencies | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 1,693 | ' | 49,850 |
Recurring basis | Total | U.S. government agency mortgage-backed | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | ' | ' | 128,738 |
Recurring basis | Total | States and political subdivisions | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 19,841 | ' | 15,855 |
Recurring basis | Total | Corporate bonds | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 22,200 | ' | 36,886 |
Recurring basis | Total | Collateralized mortgage obligations | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 48,125 | ' | 169,600 |
Recurring basis | Total | Asset-backed securities | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | 268,984 | ' | 167,493 |
Recurring basis | Total | CDOs | ' | ' | ' |
Assets: | ' | ' | ' |
Securities available-for-sale | $11,087 | ' | $9,957 |
Fair_Value_Option_and_Fair_Val3
Fair Value Option and Fair Value Measurements (Details 2) (USD $) | 9 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest rate swap valuation | Interest rate swap valuation | CDOs | CDOs | Asset-backed securities | States and political subdivisions | States and political subdivisions | States and political subdivisions | States and political subdivisions | Mortgage servicing rights | Mortgage servicing rights | |
Changes in Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ($47) | ($80) | $9,957 | $9,974 | ' | $132 | $132 | $138 | $138 | $4,116 | $3,487 |
Total gains or losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Included in earnings (or changes in net assets) | 34 | 19 | 178 | 125 | 485 | ' | ' | ' | ' | 81 | -1,315 |
Included in other comprehensive income | ' | ' | 1,898 | -441 | -1,487 | ' | ' | ' | ' | ' | ' |
Purchases, issuances, sales, and settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases | ' | ' | ' | ' | 168,753 | ' | ' | ' | ' | ' | ' |
Issuances | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,259 | 1,431 |
Settlements | ' | ' | -946 | -115 | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | -20,539 | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ($13) | ($61) | $11,087 | $9,543 | $147,212 | $132 | $132 | $138 | $138 | $5,456 | $3,603 |
Fair_Value_Option_and_Fair_Val4
Fair Value Option and Fair Value Measurements (Details 3) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 373,478 | 579,886 |
Mortgage servicing rights, fair value | 5,456 | 4,116 |
Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 158,431 | 10,089 |
Collateralized Debt Obligations | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 11,087 | 9,957 |
Asset-backed securities | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 268,984 | 167,493 |
Recurring basis | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Mortgage servicing rights, fair value | 5,456 | 4,116 |
Recurring basis | Interest Rate Swap Valuation | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Interest rate swap valuation, fair value | -13 | -47 |
Recurring basis | Interest Rate Swap Valuation | Management estimate of credit risk exposure | Level 3 | Minimum, Range of Input | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk rating & probability of default (as a percent) | 5.00% | 2.00% |
Recurring basis | Interest Rate Swap Valuation | Management estimate of credit risk exposure | Level 3 | Maximum, Range of Input | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk rating & probability of default (as a percent) | 20.00% | 31.00% |
Recurring basis | Interest Rate Swap Valuation | Management estimate of credit risk exposure | Level 3 | Weighted Average of Inputs | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk rating & probability of default (as a percent) | 13.40% | 17.90% |
Recurring basis | Collateralized Debt Obligations | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 11,087 | 9,957 |
Recurring basis | Collateralized Debt Obligations | Discounted Cash Flow | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Discount rate, description of variable rate basis | 'LIBOR | 'LIBOR |
Recurring basis | Collateralized Debt Obligations | Discounted Cash Flow | Level 3 | Minimum, Range of Input | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Discount rate, spread on variable rate (as a percent) | 5.25% | 6.00% |
Prepayment speed (as a percent) | 0.00% | 0.00% |
Credit risk rating & probability of default (as a percent) | 3.00% | 3.10% |
Recurring basis | Collateralized Debt Obligations | Discounted Cash Flow | Level 3 | Maximum, Range of Input | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Discount rate, spread on variable rate (as a percent) | 6.25% | 7.00% |
Prepayment speed (as a percent) | 76.00% | 76.00% |
Credit risk rating & probability of default (as a percent) | 100.00% | 100.00% |
Recurring basis | Collateralized Debt Obligations | Discounted Cash Flow | Level 3 | Weighted Average of Inputs | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Discount rate (as a percent) | 5.70% | 6.40% |
Prepayment speed (as a percent) | 13.50% | 16.40% |
Credit risk rating & probability of default (as a percent) | 15.70% | 19.10% |
Recurring basis | Mortgage Servicing rights | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Mortgage servicing rights, fair value | 5,456 | 4,116 |
Recurring basis | Mortgage Servicing rights | Discounted Cash Flow | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Discount rate (as a percent) | 10.00% | 10.50% |
Prepayment speed (as a percent) | 10.80% | 15.80% |
Recurring basis | 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) | 10.00% | 10.50% |
Prepayment speed (as a percent) | 10.80% | 15.80% |
Recurring basis | Asset-backed securities | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 147,212 | ' |
Asset-backed securities | 147,212 | ' |
Liquidity risk premium (as a percent) | 1.00% | ' |
Recurring basis | Asset-backed securities | Level 3 | Weighted Average of Inputs | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk rating & probability of default (as a percent) | 1.00% | ' |
Recurring basis | Asset-backed securities | Discounted Cash Flow | Level 3 | Minimum, Range of Input | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk premium (as a percent) | 1.00% | ' |
Recurring basis | Asset-backed securities | Discounted Cash Flow | Level 3 | Maximum, Range of Input | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk premium (as a percent) | 1.50% | ' |
Recurring basis | Asset-backed securities | Discounted Cash Flow | Level 3 | Weighted Average of Inputs | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk rating & probability of default (as a percent) | 1.30% | ' |
Fair_Value_Option_and_Fair_Val5
Fair Value Option and Fair Value Measurements (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | Nonrecurring basis | |||||||||
Impaired loans | Impaired loans | Impaired loans | Impaired loans | Other real estate owned, net | Other real estate owned, net | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Total | Total | Total | Total | Total | Total | |||||||||
Carrying Amount | Carrying Amount | Impaired loans | Impaired loans | Other real estate owned, net | Other real estate owned, net | Impaired loans | Impaired loans | Other real estate owned, net | Other real estate owned, net | |||||||||||||||||
Assets and liabilities measured at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,800,000 | $27,800,000 | ' | ' | $54,719,000 | $93,966,000 | $5,653,000 | $21,543,000 | $49,066,000 | $72,423,000 | $54,719,000 | $93,966,000 | $5,653,000 | $21,543,000 | $49,066,000 | $72,423,000 |
Valuation allowance | 2,150,000 | ' | 2,150,000 | ' | ' | 6,259,000 | ' | ' | 2,100,000 | 6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease of specific allocations within the allowance for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | 6,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of other real estate owned | 49,066,000 | 88,093,000 | 49,066,000 | 88,093,000 | 59,465,000 | 72,423,000 | 89,671,000 | 93,290,000 | ' | ' | ' | ' | 72,400,000 | 49,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,700,000 | 75,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OREO Valuation allowance | 24,587,000 | 29,286,000 | 24,587,000 | 29,286,000 | 30,487,000 | 31,454,000 | 27,469,000 | 23,462,000 | ' | ' | ' | ' | 31,400,000 | 24,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OREO participations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,900,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
OREO charge to expense | $1,961,000 | $4,474,000 | $6,685,000 | $12,270,000 | ' | ' | ' | ' | ' | ' | ' | ' | $16,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
institution | institution | |
Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Asset Derivatives, Fair Value | $640,000 | $1,869,000 |
Liability Derivatives, Fair Value | 585,000 | 1,354,000 |
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 | 3,200,000 | 7,400,000 |
Investment securities pledged with financial institutions, number | 3 | 2 |
Interest rate swap agreements net of swap credit valuation | Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Weighted average maturity | '1 year 3 months 18 days | '1 year 3 months 18 days |
Notional or Contractual Amount | 80,323,000 | 82,097,000 |
Asset Derivatives, Fair Value | 571,000 | 1,302,000 |
Liability Derivatives, Fair Value | 584,000 | 1,349,000 |
Commitments | Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Notional or Contractual Amount | 211,635,000 | 226,135,000 |
Asset Derivatives, Fair Value | 69,000 | 567,000 |
Forward contracts | Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Notional or Contractual Amount | 12,573,000 | 28,000,000 |
Liability Derivatives, Fair Value | $1,000 | $5,000 |
Financial_Instruments_with_Off3
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | $9,509 | $10,646 |
Fixed | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 1,852 | 1,875 |
Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 7,657 | 8,771 |
Letters of credit: Borrower | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 8,180 | 9,281 |
Letters of credit: Borrower | Fixed | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 1,612 | 1,635 |
Letters of credit: Borrower | Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 6,568 | 7,646 |
Letters of credit: Borrower | Financial standby | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 3,851 | 3,383 |
Letters of credit: Borrower | Financial standby | Fixed | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 5 | 5 |
Letters of credit: Borrower | Financial standby | Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 3,846 | 3,378 |
Letters of credit: Borrower | Commercial standby | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 51 | 51 |
Letters of credit: Borrower | Commercial standby | Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 51 | 51 |
Letters of credit: Borrower | Performance standby | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 4,278 | 5,847 |
Letters of credit: Borrower | Performance standby | Fixed | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 1,607 | 1,630 |
Letters of credit: Borrower | Performance standby | Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 2,671 | 4,217 |
Letters of credit: Non-borrower | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 1,329 | 1,365 |
Letters of credit: Non-borrower | Fixed | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 240 | 240 |
Letters of credit: Non-borrower | Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 1,089 | 1,125 |
Letters of credit: Non-borrower | Performance standby | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 1,329 | 1,365 |
Letters of credit: Non-borrower | Performance standby | Fixed | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | 240 | 240 |
Letters of credit: Non-borrower | Performance standby | Variable | ' | ' |
Company's contractual commitments due to letters of credit | ' | ' |
Total letters of credit | $1,089 | $1,125 |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash, due from banks and federal funds sold | $47,486 | $44,221 |
Interest bearing deposits with financial institutions | 32,586 | 84,286 |
Securities available-for-sale | 373,478 | 579,886 |
Securities held-to-maturity | 258,101 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,005 | 54,203 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,499 | 379,451 |
Other short-term borrowings | 55,000 | 100,000 |
Junior subordinated debentures | 58,378 | 58,378 |
Level 1 | ' | ' |
Financial assets: | ' | ' |
Cash, due from banks and federal funds sold | 47,486 | 44,221 |
Interest bearing deposits with financial institutions | 32,586 | 84,286 |
Securities available-for-sale | 1,548 | 1,507 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,499 | 379,451 |
Junior subordinated debentures | 37,657 | 22,725 |
Borrowing interest payable | 9,305 | 6,946 |
Level 2 | ' | ' |
Financial assets: | ' | ' |
Securities available-for-sale | 213,499 | 568,290 |
Securities held-to-maturity | 260,421 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,005 | 54,203 |
Loans held for sale | 3,129 | 9,571 |
Accrued interest receivable | 4,473 | 5,252 |
Financial liabilities: | ' | ' |
Interest bearing deposits | 1,302,082 | 1,347,603 |
Securities sold under repurchase agreements | 20,719 | 17,875 |
Other short-term borrowings | 55,000 | 100,000 |
Junior subordinated debentures | 25,823 | 15,583 |
Subordinated debenture | 39,193 | 28,206 |
Note payable and other borrowings | 415 | 302 |
Borrowing interest payable | 6,371 | 4,794 |
Deposit interest payable | 837 | 1,006 |
Level 3 | ' | ' |
Financial assets: | ' | ' |
Securities available-for-sale | 158,431 | 10,089 |
Loans, net | 1,047,557 | 1,118,711 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Cash, due from banks and federal funds sold | 47,486 | 44,221 |
Interest bearing deposits with financial institutions | 32,586 | 84,286 |
Securities available-for-sale | 373,478 | 579,886 |
Securities held-to-maturity | 258,101 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,005 | 54,203 |
Loans held for sale | 3,129 | 9,571 |
Loans, net | 1,048,093 | 1,111,453 |
Accrued interest receivable | 4,473 | 5,252 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,499 | 379,451 |
Interest bearing deposits | 1,299,624 | 1,337,768 |
Securities sold under repurchase agreements | 20,719 | 17,875 |
Other short-term borrowings | 55,000 | 100,000 |
Junior subordinated debentures | 58,378 | 58,378 |
Subordinated debenture | 45,000 | 45,000 |
Note payable and other borrowings | 500 | 500 |
Borrowing interest payable | 15,676 | 11,740 |
Deposit interest payable | 837 | 1,006 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash, due from banks and federal funds sold | 47,486 | 44,221 |
Interest bearing deposits with financial institutions | 32,586 | 84,286 |
Securities available-for-sale | 373,478 | 579,886 |
Securities held-to-maturity | 260,421 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,005 | 54,203 |
Loans held for sale | 3,129 | 9,571 |
Loans, net | 1,047,557 | 1,118,711 |
Accrued interest receivable | 4,473 | 5,252 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,499 | 379,451 |
Interest bearing deposits | 1,302,082 | 1,347,603 |
Securities sold under repurchase agreements | 20,719 | 17,875 |
Other short-term borrowings | 55,000 | 100,000 |
Junior subordinated debentures | 63,480 | 38,308 |
Subordinated debenture | 39,193 | 28,206 |
Note payable and other borrowings | 415 | 302 |
Borrowing interest payable | 15,676 | 11,740 |
Deposit interest payable | $837 | $1,006 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||
Mar. 31, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2009 | Sep. 30, 2013 | Mar. 31, 2009 | |
Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Warrants | Warrants | ||||
Q | ||||||||
Common and preferred stock | ' | ' | ' | ' | ' | ' | ' | ' |
Period for payment of cumulative dividends using the initial cumulative dividend rate | ' | ' | ' | '5 years | ' | ' | ' | ' |
Cumulative dividends rate, thereafter (as a percent) | ' | ' | ' | 9.00% | ' | ' | ' | ' |
Cumulative dividends, initial rate for the first five years (as a percent) | ' | ' | ' | 5.00% | ' | ' | ' | ' |
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 | ' |
Proceeds from the Treasury | $73,000,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' | 68,200,000 | ' | 4,800,000 |
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 | ' | ' | ' | ' |
Unpaid and deferred dividends | ' | ' | ' | 12,300,000 | ' | ' | ' | ' |
Preferred stock | ' | $72,667,000 | $71,869,000 | $72,700,000 | $71,900,000 | ' | ' | ' |
Increased dividend rate in 2014 (as a percent) | ' | ' | ' | 9.00% | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Components of income tax expense (benefit) | ' | ' | ' | ' |
Current federal | ' | $129 | ' | ' |
Current state | ' | 35 | ' | ' |
Deferred federal | ' | 2,935 | -643 | ' |
Deferred state | ' | 1,049 | -552 | ' |
Change in valuation allowance | ' | -74,145 | 1,195 | ' |
Income tax expense (benefit) | -69,997 | -69,997 | ' | ' |
Deferred tax assets | ' | ' | ' | ' |
Allowance for loan losses | 13,700 | 13,700 | ' | 18,236 |
Deferred compensation | 719 | 719 | ' | 679 |
Amortization of core deposit intangible assets | 1,484 | 1,484 | ' | 965 |
Goodwill amortization/impairment | 15,645 | 15,645 | ' | 16,796 |
Stock option expense | 608 | 608 | ' | 785 |
OREO write downs | 11,072 | 11,072 | ' | 16,632 |
Federal net operating loss ("NOL") carryforward | 26,370 | 26,370 | ' | 20,736 |
State net operating loss ("NOL") carryforward | 11,434 | 11,434 | ' | 10,186 |
Deferred tax credit | 1,444 | 1,444 | ' | 1,444 |
Other assets | 598 | 598 | ' | 585 |
Total deferred tax assets | 83,074 | 83,074 | ' | 87,044 |
Deferred tax liabilities | ' | ' | ' | ' |
Accumulated depreciation on premises and equipment | -946 | -946 | ' | -1,063 |
Accretion on securities | -13 | -13 | ' | -122 |
Mortgage servicing rights | -2,415 | -2,415 | ' | -1,819 |
State tax benefits | -6,982 | -6,982 | ' | -7,315 |
Other liabilities | -194 | -194 | ' | -217 |
Total deferred tax liabilities | -10,550 | -10,550 | ' | -10,536 |
Net deferred tax asset before valuation allowance | 72,524 | 72,524 | ' | 76,508 |
Tax effect of net unrealized loss on investments | 8,704 | 8,704 | ' | 928 |
Valuation Allowance | -2,363 | -2,363 | ' | -76,508 |
Net deferred tax asset | $78,865 | $78,865 | ' | $928 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Alternative minimum tax credit | ' |
Net operating loss carryforward | ' |
Alternative minimum tax credit that can be carried forward | $1.40 |
Federal | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 75.3 |
Federal | 2030 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 25.3 |
Federal | 2031 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 31.4 |
Federal | 2032 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 8.6 |
Federal | 2033 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 10 |
State | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 120.3 |
State | 2021 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 29.4 |
State | 2025 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | $90.90 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Components of the provision for deferred income taxes | ' | ' | ' |
Provision for loan losses | ' | $4,536,000 | $5,731,000 |
Deferred compensation | ' | -40,000 | 24,000 |
Amortization of core deposit intangible assets | ' | -519,000 | -204,000 |
Stock option expense | ' | 177,000 | 358,000 |
OREO write downs | ' | 5,560,000 | -4,358,000 |
Federal net operating loss carryforward | ' | -5,634,000 | -2,384,000 |
State net operating loss carryforward | ' | -1,248,000 | -852,000 |
Depreciation | ' | -117,000 | -210,000 |
Net premiums and discounts on securities | ' | -109,000 | 85,000 |
Mortgage servicing rights | ' | 596,000 | 55,000 |
Goodwill amortization/impairment | ' | 1,151,000 | 1,134,000 |
State tax benefits | ' | -333,000 | 154,000 |
Change in valuation allowance | ' | -74,145,000 | 1,195,000 |
Other, net | ' | -36,000 | -728,000 |
Total deferred tax benefit | ' | -70,161,000 | ' |
Taxable income from sale of bank-owned life insurance policies | ' | 11,400,000 | ' |
Difference between effective tax rates and federal statutory rates applied to financial statement income | ' | ' | ' |
Tax at statutory federal income tax rate | ' | 4,156,000 | -558,000 |
Nontaxable interest income, net of disallowed interest deduction | ' | -183,000 | -143,000 |
BOLI income | ' | -553,000 | -436,000 |
State income taxes, net of federal benefit | ' | 780,000 | -128,000 |
Change in valuation allowance | ' | -74,145,000 | 1,195,000 |
Deficiency from Restricted Stock | ' | 10,000 | 299,000 |
Other, net | ' | -62,000 | -229,000 |
Income tax expense (benefit) | ($69,997,000) | ($69,997,000) | ' |