Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 20, 2014 | Jun. 30, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'OLD SECOND BANCORP INC | ' | ' |
Entity Central Index Key | '0000357173 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $70.10 |
Entity Common Stock, Shares Outstanding | ' | 13,923,843 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $33,210 | $44,221 |
Interest bearing deposits with financial institutions | 14,450 | 84,286 |
Cash and cash equivalents | 47,660 | 128,507 |
Securities available-for-sale, at fair value | 372,191 | 579,886 |
Securities held-to-maturity, at amortized cost | 256,571 | ' |
Federal Home Loan Bank and Federal Reserve Bank stock | 10,292 | 11,202 |
Loans held-for-sale | 3,822 | 9,571 |
Loans | 1,101,256 | 1,150,050 |
Less: allowance for loan losses | 27,281 | 38,597 |
Net loans | 1,073,975 | 1,111,453 |
Premises and equipment, net | 46,005 | 47,002 |
Other real estate owned | 41,537 | 72,423 |
Mortgage servicing rights, net | 5,807 | 4,116 |
Core deposit intangible, net | 1,177 | 3,276 |
Bank-owned life insurance (BOLI) | 55,410 | 54,203 |
Deferred tax assets, net | 75,303 | 928 |
Other assets | 14,284 | 23,232 |
Total assets | 2,004,034 | 2,045,799 |
Deposits: | ' | ' |
Noninterest bearing demand | 373,389 | 379,451 |
Interest bearing: | ' | ' |
Savings, NOW, and money market | 836,300 | 826,976 |
Time | 472,439 | 510,792 |
Total deposits | 1,682,128 | 1,717,219 |
Securities sold under repurchase agreements | 22,560 | 17,875 |
Other short-term borrowings | 5,000 | 100,000 |
Junior subordinated debentures | 58,378 | 58,378 |
Subordinated debt | 45,000 | 45,000 |
Notes payable and other borrowings | 500 | 500 |
Other liabilities | 42,776 | 34,275 |
Total liabilities | 1,856,342 | 1,973,247 |
Stockholders' Equity | ' | ' |
Preferred stock | 72,942 | 71,869 |
Common stock | 18,830 | 18,729 |
Additional paid-in capital | 66,212 | 66,189 |
Retained earnings | 92,549 | 12,048 |
Accumulated other comprehensive loss | -7,038 | -1,327 |
Treasury stock | -95,803 | -94,956 |
Total stockholders' equity | 147,692 | 72,552 |
Total liabilities and stockholders' equity | $2,004,034 | $2,045,799 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income | ' | ' |
Loans, including fees | $56,193 | $66,769 |
Loans held-for-sale | 156 | 260 |
Securities: | ' | ' |
Taxable | 11,692 | 7,212 |
Tax-exempt | 587 | 416 |
Dividends from Federal Reserve Bank and Federal Home Loan Bank stock | 304 | 305 |
Interest bearing deposits | 108 | 119 |
Total interest and dividend income | 69,040 | 75,081 |
Interest expense | ' | ' |
Savings, NOW and money market deposits | 859 | 1,062 |
Time deposits | 6,774 | 8,809 |
Securities sold under repurchase agreements | 3 | 2 |
Other short-term borrowings | 25 | 17 |
Junior subordinated debentures | 5,298 | 4,925 |
Subordinated debt | 811 | 903 |
Notes payable and other borrowings | 16 | 17 |
Total interest expense | 13,786 | 15,735 |
Net interest and dividend income | 55,254 | 59,346 |
(Release) provision for loan losses | -8,550 | 6,284 |
Net interest and dividend income after provision for loan losses | 63,804 | 53,062 |
Noninterest income | ' | ' |
Trust income | 6,339 | 6,041 |
Service charges on deposits | 7,256 | 7,682 |
Secondary mortgage fees | 821 | 1,307 |
Mortgage servicing gain (loss), net of changes in fair value | 1,913 | -289 |
Net gain on sales of mortgage loans | 5,627 | 10,688 |
Securities (losses) gains, net | -1,912 | 1,575 |
Increase in cash surrender value of bank-owned life insurance | 1,603 | 1,608 |
Death benefit realized on bank-owned life insurance | 381 | ' |
Debit card interchange income | 3,458 | 3,547 |
Other income | 5,697 | 5,060 |
Total noninterest income | 31,183 | 37,219 |
Noninterest expense | ' | ' |
Salaries and employee benefits | 36,688 | 34,989 |
Occupancy expense, net | 5,032 | 4,841 |
Furniture and equipment expense | 4,264 | 4,614 |
FDIC insurance | 4,027 | 4,031 |
General bank insurance | 2,318 | 3,384 |
Amortization of core deposit | 2,099 | 1,402 |
Advertising expense | 1,225 | 1,309 |
Debit card interchange expense | 1,433 | 1,548 |
Legal fees | 2,066 | 3,176 |
Other real estate expense, net | 10,747 | 18,663 |
Other expense | 13,245 | 12,396 |
Total noninterest expense | 83,144 | 90,353 |
Income (loss) before income taxes | 11,843 | -72 |
(Benefit) provision for income taxes | -70,242 | ' |
Net income (loss) | 82,085 | -72 |
Preferred stock dividends and accretion of discount | 5,258 | 4,987 |
Net income (loss) available to common stockholders | $76,827 | ($5,059) |
Basic earnings (loss) per share (in dollars per share) | $5.45 | ($0.36) |
Diluted earnings (loss) per share (in dollars per share) | $5.45 | ($0.36) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income (Loss) | ' | ' |
Net income (loss) | $82,085 | ($72) |
Total unrealized holding (losses) gains on available-for-sale securities arising during the period | -11,965 | 5,614 |
Related tax benefit (expense) | 4,924 | -2,305 |
Holding (losses) gains after tax | -7,041 | 3,309 |
Less: Reclassification adjustment for the net gains and losses realized during the period | ' | ' |
Net realized (losses) gains | -1,912 | 1,575 |
Income tax benefit (expense) on net realized gains | 784 | -641 |
Net realized (losses) gains after tax | -1,128 | 934 |
Other comprehensive (loss) income on available-for-sale securities | -5,913 | 2,375 |
Accretion of net unrealized holding gains on held-to-maturity transferred from available-for-sale securities | 343 | ' |
Related tax expense | -141 | ' |
Other comprehensive income on held-to-maturity securities | 202 | ' |
Total other comprehensive (loss) income | -5,711 | 2,375 |
Total comprehensive income | $76,374 | $2,303 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | ' | ' |
Net income (loss) | $82,085 | ($72) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of leasehold improvement | 2,794 | 3,074 |
Change in market value of mortgage servicing rights | -260 | 1,575 |
(Release) provision for loan losses | -8,550 | 6,284 |
Gain on recapture of restricted stock | -612 | ' |
Provision for deferred tax benefit | -70,376 | ' |
Originations of loans held-for-sale | -181,497 | -291,559 |
Proceeds from sales of loans held-for-sale | 191,019 | 303,561 |
Net gain on sales of mortgage loans | -5,627 | -10,688 |
Change in current income taxes (payable) receivable | -132 | 815 |
Increase in cash surrender value of bank-owned life insurance | -1,603 | -1,608 |
Death claim on bank owned life insurance | 396 | ' |
Change in accrued interest receivable and other assets | 8,764 | 8,381 |
Change in accrued interest payable and other liabilities | 8,877 | 8,119 |
Net discount (accretion)/premium amortization on securities | -528 | 943 |
Securities losses (gains), net | 1,912 | -1,575 |
Amortization of core deposit, net | 2,099 | 1,402 |
Stock based compensation | 167 | 291 |
Net gain on sale of other real estate owned | -1,956 | -2,198 |
Provision for other real estate owned losses | 8,293 | 16,385 |
Net gain on disposal of fixed assets | -9 | -609 |
Loss on transfer of premises to other real estate owned | ' | 782 |
Net cash provided by operating activities | 35,256 | 43,303 |
Cash flows from investing activities | ' | ' |
Proceeds from maturities and calls including pay down of securities available-for-sale | 40,028 | 79,642 |
Proceeds from sales of securities available-for-sale | 533,302 | 223,860 |
Purchases of securities available-for-sale | -609,033 | -571,153 |
Proceeds from maturities and calls including pay down of securities held-to-maturity | 2,444 | ' |
Purchases of securities held-to-maturity | -21,382 | ' |
Proceeds from sales of Federal Home Loan Bank stock | 910 | 2,848 |
Net change in loans | 21,505 | 167,490 |
Improvements in other real estate owned | -73 | -701 |
Proceeds from sales of other real estate owned | 43,668 | 39,052 |
Proceeds from disposition of fixed assets | 10 | 917 |
Net purchases of premises and equipment | -1,798 | -1,049 |
Net cash provided by (used in) investing activities | 9,581 | -59,094 |
Cash flows from financing activities | ' | ' |
Net change in deposits | -35,091 | -23,562 |
Net change in securities sold under repurchase agreements | 4,685 | 16,974 |
Net change in other short-term borrowings | -95,000 | 100,000 |
Purchase of treasury stock | -278 | -63 |
Net cash (used in) provided by financing activities | -125,684 | 93,349 |
Net change in cash and cash equivalents | -80,847 | 77,558 |
Cash and cash equivalents at beginning of period | 128,507 | 50,949 |
Cash and cash equivalents at end of period | 47,660 | 128,507 |
Supplemental cash flow information | ' | ' |
Income taxes paid (received) | 266 | -815 |
Interest paid for deposits | 7,868 | 10,592 |
Interest paid for borrowings | 864 | 930 |
Non-cash transfer of loans to other real estate owned | 19,194 | 31,761 |
Non-cash transfer of premises to other real estate owned | ' | 360 |
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 accrued not paid | 511 | 3,981 |
Accretion on preferred stock warrants | 1,073 | 1,006 |
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) | -72 | ' | ' | ' | -72 | ' | ' |
Change in net unrealized gain (loss) on securities available-for-sale, net of $3,998 and $1,664 tax effect for the years ended December 31, 2013 and 2012, respectively | 2,375 | ' | ' | ' | ' | 2,375 | ' |
Change in restricted stock | ' | 101 | ' | -101 | ' | ' | ' |
Stock based compensation | 291 | ' | ' | 291 | ' | ' | ' |
Purchase of treasury stock | -63 | ' | ' | ' | ' | ' | -63 |
Preferred stock accretion and declared dividends (5% per preferred share) | -3,981 | ' | 1,006 | ' | -4,987 | ' | ' |
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) | 82,085 | ' | ' | ' | 82,085 | ' | ' |
Change in net unrealized gain (loss) on securities available-for-sale, net of $3,998 and $1,664 tax effect for the years ended December 31, 2013 and 2012, respectively | -5,711 | ' | ' | ' | ' | -5,711 | ' |
Change in restricted stock | ' | 101 | ' | -101 | ' | ' | ' |
Recapture of restricted stock | -612 | ' | ' | -43 | ' | ' | -569 |
Stock based compensation | 167 | ' | ' | 167 | ' | ' | ' |
Purchase of treasury stock | -278 | ' | ' | ' | ' | ' | -278 |
Preferred stock accretion and declared dividends (5% per preferred share) | -511 | ' | 1,073 | ' | -1,584 | ' | ' |
Balance at Dec. 31, 2013 | $147,692 | $18,830 | $72,942 | $66,212 | $92,549 | ($7,038) | ($95,803) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Changes in Stockholders' Equity | ' | ' |
Change in net unrealized gain (loss) on securities available-for-sale, tax effect | $3,998 | $1,664 |
Preferred dividends declared and accrued, per preferred share (as a percent) | ' | 5.00% |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 1: Summary of Significant Accounting Policies | |
The Company uses the accrual basis of accounting for financial reporting purposes. Certain reclassifications were made to prior year amounts to conform to the current year presentation. | |
Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. | |
Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. | |
Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell. | |
Securities – Securities are classified as available-for-sale or held-to-maturity at the time of purchase or transfer. | |
Securities that are classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of related deferred income taxes, are recorded in stockholders’ equity as a separate component of accumulated other comprehensive income. | |
Securities held-to-maturity are carried at amortized cost and the discount or premium created in the transfer from available-for-sale is accreted or amortized to the maturity or expected payoff date but not an earlier call. The Company reclassified certain securities, chosen by management, to held-to-maturity effective September 1, 2013. No new purchases were made in the held-to-maturity classification during the fourth quarter. | |
The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security, using the level yield method. Amortization of premium and accretion of discount are included in interest income from the related security. | |
Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in securities gains, net in the Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company makes an assessment (at the individual security level) to determine whether there have been any events or circumstances indicating that a security with an unrealized loss is other-than-temporarily impaired (“OTTI”). In evaluating OTTI, the Company considers many factors, including the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; its ability and intent to hold the security for a period of time sufficient for a recovery in value; and the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. The amount of the impairment related to other factors is recognized in other comprehensive income (loss) unless management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery. | |
Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“Reserve Bank”). Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership. The FHLBC is a governmental sponsored entity. The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment. FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC. The Company records dividends in income on the ex-dividend date. Reserve Bank stock is redeemable at par, therefore, market value equals cost. | |
Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market. 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 on similar loans. | |
Loans – Loans held-for-investment are carried at the principal amount outstanding, including certain net deferred loan origination fees. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned. | |
Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Kane, Kendall, DeKalb, DuPage, LaSalle, Will and southwestern Cook counties in Illinois. These banking centers surround the Chicago metropolitan area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within its market. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. | |
Commercial and Industrial Loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. | |
Commercial Real Estate Loans – Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These are loans secured by mortgages on real estate collateral. Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. | |
Residential Real Estate Loans – These are loans that are extended to purchase or refinance 1 – 4 family residential dwellings, or to purchase or refinance vacant lots intended for the construction of a 1 – 4 family home. Residential real estate loans are considered homogenous in nature. Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower. | |
Real Estate Construction & Development Loans – The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely. | |
Consumer Loans – Consumer loans include loans extended primarily for consumer and household purposes although they may include very small business loans for the purchase of vehicles and equipment to a single-owner enterprise and could include business purpose lines of credit if made under the terms of a small business product whose features and underwriting criteria are specified in advance by the Loan Committee. These also include overdrafts and other items not captured by the definitions above. | |
Nonaccrual loans– Generally, commercial loans and loans secured by real estate are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. After the loan is placed on nonaccrual, all debt service payments are applied to the principal on the loan. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. | |
Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal and interest outstanding. | |
Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDRs when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. | |
The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDRs to accrue interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDRs is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. | |
Impaired Loans – Impaired loans consist of nonaccrual loans and TDRs (both accruing and on nonaccrual). A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. With the exception of TDRs still accruing interest, loans deemed to be impaired are classified as nonaccrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and consumer loans. When a loan is designated as impaired, any subsequent principal and interest payments received are applied to the principal on the loan. | |
90-Days or Greater Past Due Loans – 90-days or more past due loans are loans with principal or interest payments three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and the process of collection will conclude within a reasonable time period. | |
Allowance for Loan Losses – The allowance for loan losses is comprised of the allowance for loan losses calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for loan losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other credit market factors. | |
Loans deemed to be uncollectible are charged-off against the allowance for loan losses while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Approved releases from previously established loan loss reserves authorized under our allowance methodology also reduce the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company’s assessment of the allowance for loan losses based on the methodology discussed below. The Company had no major methodology changes in 2013 and only minor changes in two management factors included in the methodology calculations. | |
The allowance for loan losses methodology consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the value of the loan, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact as assessed by management in detailed loan review sessions of other internal and external qualitative and credit market factors. | |
The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount. This analysis follows GAAP standards for collateral based loans. | |
An additional component of the allowance for loan losses is based on actual loss experience for a rolling 20-quarter period and the related internal risk rating and category of loans charged-off, including any charge-off on TDRs. The loss migration analysis is performed quarterly, and the loss factors are updated based on actual experience. | |
Management takes into consideration many internal and external qualitative factors when estimating an additional adjustment for management factors, including: | |
· Changes in the composition of the loan portfolio, trends in the volume and terms of loans, and trends in delinquent and nonaccrual loans that could indicate that historical trends do not reflect current conditions. | |
· Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. | |
· Changes in the experience, ability, and depth of credit management and other relevant staff. | |
· Changes in the quality of the Company’s loan review system and board of directors’ oversight. | |
· Changes in the value of the underlying collateral for collateral-dependent loans. | |
· Changes in the national and local economy that affect the collectability of various segments of the portfolio. | |
· Changes in other external factors, such as competition and legal or regulatory requirements are considered when determining the level of estimated loss in various segments of the portfolio. | |
The establishment of the allowance for loan losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for loan losses is dependent upon a variety of factors beyond the Company’s direct control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for loan losses is determined separately, the entire balance is available for the entire loan portfolio. | |
Mortgage Servicing Rights – The Bank is also involved in the business of servicing mortgage loans. Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors. Mortgage servicing rights represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities. | |
Mortgage loans that the Company is servicing for others aggregated to $591.5 million and $552.0 million at December 31, 2013, and 2012, respectively. Mortgage loans that the Company is servicing for others are not included in the consolidated balance sheets. Fees received in connection with servicing loans for others are recognized as earned. Loan servicing costs are charged to expense as incurred. | |
Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. | |
Servicing fee income, which is included on the Consolidated Statements of Operations as mortgage servicing income, net of fair value changes, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. | |
Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes mortgage servicing rights in mortgage servicing income, net of fair value changes, on the Consolidated Statements of Operations. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. | |
Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at fair value when acquired, less estimated costs to sell, establishing a new cost basis. Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the allowance for loan losses. If fair value declines after acquisition, a valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell. Such declines are included in other noninterest expense. A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer to OREO. OREO properties are valued at the lower of cost or estimated market less costs subsequent to acquisition. Operating costs after acquisition are also expensed. | |
Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals. Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years but longer under limited circumstances; and furniture and equipment, 3 to 10 years. Gains and losses on dispositions are included in other noninterest income in the Consolidated Statements of Operations. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. | |
Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary. These policies are recorded as an asset on the Consolidated Statements of Financial Condition at their cash surrender value (“CSV”) or the amount that could be realized. The change in CSV and insurance proceeds received are recorded as BOLI income in the Consolidated Statements of Operations in noninterest income. | |
Core Deposit Intangible Assets – The core deposit intangible (“CDI”) is amortized over its useful life. The CDI was initially measured at fair value and is amortized on an accelerated method over their estimated useful life of twelve years. It is also evaluated for impairment and impairment, if needed, would be recorded to earnings. | |
Impairment testing is performed using a two-step process. The first step of the impairment review uses an undiscounted cash flow approach to determine if the core deposit intangible is recoverable. If the results of the undiscounted cash flow indicate the CDI is recoverable, the second step of the impairment test is not required. If necessary, the second step of the impairment test compares the implied fair value of the deposits with the carrying amount of the deposits. The implied fair value of deposits is determined using a discounted cash flow approach. An impairment loss would be recognized if the carrying amount of the reported CDI exceeded the carrying value less the implied fair value of the deposits. | |
The annual impairment analysis, completed as of November 30, 2012, indicated the core deposit intangible was not impaired as the Company passed the first step of the impairment test. However, during 2012 management determined that the fair value of the intangible asset had declined largely due to a significant reduction in the cost of funds compared to the alternative funds rate used in the impairment analysis. Expecting these circumstances to continue throughout 2012 and beyond, management believed the useful life of the core deposit intangible has decreased. Management increased the amortization expense for the year ended December 31, 2012, by $622,000. The Company’s November 30, 2013 annual impairment analysis indicated the core deposit intangible was not impaired. The carrying value of the intangible asset decreased from $3.3 million at December 31, 2012, to $1.2 million at December 31, 2013. Further, estimated future amortization expense as of December 31, 2013, indicates that the asset will be fully amortized by December 31, 2014. | |
Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. | |
Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is recognized on a cash basis and is included as a component of noninterest income in the Consolidated Statements of Operations. | |
Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred. | |
Long-term Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the income statement. The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award. If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as an increase to additional paid-in capital. | |
Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction and in Illinois. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. A full valuation allowance was previously established for the deferred tax assets excluding an asset associated with a net unrealized gain or loss on available-for-sale investment securities. At September 30, 2013, the Company reversed a significant portion of the valuation allowance after an analysis of both positive and negative evidence concerning the likelihood of deferred tax asset recognition under GAAP. Due to the implicit recovery of the book basis of the underlying securities along with management’s intent and ability to hold the securities to recovery or maturity, no valuation allowance on this specific deferred tax asset has been established. | |
The Company is under examination by the State of Illinois for the tax years 2008 and 2009. The Company conducts a regular assessment of uncertain tax positions and will establish reserves for tax related interest and penalties with those amounts reflected in income tax expense. The Company did not have any material amounts accrued for interest and penalties at either December 31, 2013, or December 31, 2012. | |
Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding for the period. The basic EPS computation excludes the dilutive effect of all common stock equivalents. Diluted EPS is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding plus all potential common shares. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans and under the common stock warrant issued to Treasury through the CPP and subsequently sold to a third party at auction. Such common stock equivalents are computed based on the treasury stock method using the average market price for the period. | |
Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Statements of Financial Condition. Treasury stock issued is valued based on the “last in, first out” inventory method. The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital. | |
Mortgage Banking Derivatives – As part of ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in gain on sale of loans. | |
Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps. Under accounting guidance all derivative instruments are recorded on the balance sheet, in either other assets or other liabilities, at fair value. The accounting for the gain or loss resulting from changes in fair value depends on the intended use of the derivative. For a derivative used to hedge changes in fair value of a recognized asset or liability, or an unrecognized firm commitment, the gain or loss on the derivative will be recognized in earnings, together with the offsetting loss or gain on the hedged item. This results in an earnings impact only to the extent that the hedge is not completely effective in achieving offsetting changes in fair value. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings. For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative are deferred and reported as a component of accumulated other comprehensive income, which is a component of shareholders’ equity, until such time the hedged transaction affects earnings. For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense. Counterparty risk with correspondent banks is considered through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps. The credit valuation reserve recorded on customer interest rate swap positions was determined based upon management’s estimate of the amount of credit risk exposure, including available collateral protection and/or by utilizing an estimate related to a probability of default as indicated in the Bank credit policy. Deferred gains and losses from derivatives that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability. | |
Comprehensive Income (Loss) – Comprehensive income (loss) is the total of reported earnings all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP. The Company includes the following items, net of tax, in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss): (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in unrealized gains or losses on securities held-to-maturity established upon transfer from securities available-for-sale, and (iii) changes in the fair value of derivatives designated under cash flow hedges (when applicable). | |
New 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. |
Cash_and_Due_from_Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2013 | |
Cash and Due from Banks. | ' |
Cash and Due from Banks | ' |
Note 2: Cash and Due from Banks | |
The Bank is required to maintain reserve balances with the Reserve Bank. In accordance with the Reserve Bank requirements, the average reserve balances were $8.5 million and $8.4 million, for the years ending December 31, 2013, and 2012, respectively. | |
The nature of the Company’s business requires that it maintain amounts with other banks and federal funds which, at times, may exceed festatement where net income is presented or in the notes, significant amounts reclassified out of accumulated derally insured limits. Management monitors these correspondent relationships, and the Company has not experienced any losses in such accounts. The Bank also has a $4.4 million pledge requirement, met with cash, to a correspondent bank as it relates to credit card processing services. |
Securities
Securities | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||||
Note 3: Securities | ||||||||||||||||||||||||||
Investment Portfolio Management | ||||||||||||||||||||||||||
Our investment portfolio serves the liquidity and income needs of the Company. While the portfolio serves as an important component of the overall liquidity management at the Bank, portions of the portfolio will also serve as income producing assets. The size of the portfolio reflects liquidity needs, loan demand and interest income objectives. | ||||||||||||||||||||||||||
Portfolio size and composition may be adjusted from time to time. While a significant portion of the portfolio consists of readily marketable securities to address liquidity, other parts of the portfolio may reflect funds invested pending future loan demand or to maximize interest income without undue interest rate risk. | ||||||||||||||||||||||||||
Investments are comprised of debt securities and non-marketable equity investments. Until the third quarter of 2013, all debt securities had been classified as available-for-sale. Securities available-for-sale are carried at fair value. Unrealized gains and losses, net of tax, on securities available-for-sale are reported as a separate component of equity. This balance sheet component changes as interest rates and market conditions change. Unrealized gains and losses are not included in the calculation of regulatory capital. | ||||||||||||||||||||||||||
As of September 1, 2013, securities with a fair value of $237.2 million, 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 2013. 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 FHLBC stock and Reserve Bank stock. FHLBC stock was recorded at a value of $5.5 million at December 31, 2013, a decrease of $910,000 from December 31, 2012. Reserve Bank stock was recorded at $4.8 million at December 31, 2013, which was unchanged from December 31, 2012. Our FHLBC stock is necessary to maintain our continued access to FHLBC advances. In late 2011, management at the Bank evaluated the October 17, 2011, FHLBC Capital Plan and determined the best overall course for the Bank was to accept the stock conversion as of January 1, 2012. Subsequently, during the first half of 2012 management redeemed excess FHLBC stock held by the Bank reducing the value of FHLBC stock held by the Bank to $6.4 million at December 31, 2012. | ||||||||||||||||||||||||||
The following table summarizes the amortized cost and fair value of securities at December 31, 2013, and 2012 and the corresponding amounts of gross unrealized gains and losses: | ||||||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||
U.S. Treasury | $ | 1,549 | $ | - | $ | -5 | $ | 1,544 | ||||||||||||||||||
U.S. government agencies | 1,738 | - | -66 | 1,672 | ||||||||||||||||||||||
States and political subdivisions | 16,382 | 629 | -217 | 16,794 | ||||||||||||||||||||||
Corporate Bonds | 15,733 | 17 | -648 | 15,102 | ||||||||||||||||||||||
Collateralized mortgage obligations | 66,766 | 256 | -3,146 | 63,876 | ||||||||||||||||||||||
Asset-backed securities | 274,118 | 2,168 | -3,083 | 273,203 | ||||||||||||||||||||||
Total Securities Available-for-Sale | $ | 376,286 | $ | 3,070 | $ | -7,165 | $ | 372,191 | ||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 35,268 | $ | 45 | $ | -73 | $ | 35,240 | ||||||||||||||||||
Collateralized mortgage obligations | 221,303 | 643 | -2,858 | 219,088 | ||||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 256,571 | $ | 688 | $ | -2,931 | $ | 254,328 | ||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||
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 | ||||||||||||||||||
During the twelve months ended December 31, 2013, we added $48.9 million to the total securities portfolio (net of payoffs, maturities, sales, calls, amortization and accretion). This change is largely found in the collateralized mortgage obligations and asset-backed securities components. | ||||||||||||||||||||||||||
Securities valued at $266.7 million as of December 31, 2013, (up from $210.1 million at year-end 2012) were pledged to secure deposits and for other purposes. | ||||||||||||||||||||||||||
The fair value, amortized cost and weighted average yield of debt securities at December 31, 2013, by contractual maturity, were as set forth below. Securities not due at a single maturity date, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities are shown separately. | ||||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||
Amortized | Average | Fair | ||||||||||||||||||||||||
Securities Available-for-Sale | Cost | Yield | Value | |||||||||||||||||||||||
Due in one year or less | $ | 773 | 3.58% | $ | 785 | |||||||||||||||||||||
Due after one year through five years | 4,725 | 3.38% | 5,023 | |||||||||||||||||||||||
Due after five years through ten years | 23,161 | 3.23% | 22,649 | |||||||||||||||||||||||
Due after ten years | 6,743 | 4.38% | 6,655 | |||||||||||||||||||||||
35,402 | 3.48% | 35,112 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 66,766 | 2.53% | 63,876 | |||||||||||||||||||||||
Asset-backed | 274,118 | 1.70% | 273,203 | |||||||||||||||||||||||
$ | 376,286 | 2.01% | $ | 372,191 | ||||||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
Mortgage-backed and collateralized mortgage obligations | $ | 256,571 | 3.06% | $ | 254,328 | |||||||||||||||||||||
At December 31, 2013, the Company’s investments include asset-backed securities that are backed by student loans originated under the Federal Family Education Loan program (“FFEL”). Under the FFEL, private lenders made federally guaranteed student loans to parents and students. While the program was modified several times before elimination in 2010, not less than 97% of the original principal amount of the loans made under FFEL were guaranteed by the U.S. Department of Education. A number of major student loan originators packaged loans and sold them as asset-backed securities. The Company has accumulated the securities of the following three different originators that individually amount to over 10% of the Company’s stockholders equity. Information regarding these three issuers and the value of the securities issued follows: | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||
Issuer | Cost | Value | ||||||||||||||||||||||||
Access Group | $ | 24,220 | $ | 24,962 | ||||||||||||||||||||||
Northstar Education Finance | 95,320 | 96,327 | ||||||||||||||||||||||||
GCO Education Loan Funding Corp | 39,664 | 38,085 | ||||||||||||||||||||||||
The Company has also invested over ten percent of the Company’s stockholders equity in mortgage-backed securities issued by Credit Suisse Mortgage Trust, a trust formed by Credit Suisse Mortgage Corporation. The securities held by the Company are backed by residential mortgage loans that were not eligible for securitization by the U.S. Government or any of its agencies. As of December 31, 2013, the book value of the securities issued by Credit Suisse Mortgage Corporation was $28.9 million and the market value of such securities was $26.3 million and are rated “AAA” by Standard & Poor’s. The “AAA” rating is supported by other bonds in the issuance structure that are subordinate to the securities purchased by the Company, meaning that the subordinate bonds will absorb losses to principal before any loss can impact the Company’s securities. | ||||||||||||||||||||||||||
Securities with unrealized losses at December 31, 2013, and 2012 aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows: | ||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||
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 | $ | 5 | $ | 1,544 | - | $ | - | $ | - | 1 | $ | 5 | $ | 1,544 | |||||||||||
U.S. government agencies | - | - | - | 1 | 66 | 1,672 | 1 | 66 | 1,672 | |||||||||||||||||
States and political subdivisions | 6 | 217 | 4,625 | - | - | - | 6 | 217 | 4,625 | |||||||||||||||||
Corporate bonds | 4 | 429 | 10,493 | 2 | 219 | 2,796 | 6 | 648 | 13,289 | |||||||||||||||||
Collateralized mortgage obligations | 5 | 3,146 | 54,021 | - | - | - | 5 | 3,146 | 54,021 | |||||||||||||||||
Asset-backed securities | 11 | 2,836 | 99,466 | 2 | 247 | 6,368 | 13 | 3,083 | 105,834 | |||||||||||||||||
27 | $ | 6,633 | $ | 170,149 | 5 | $ | 532 | $ | 10,836 | 32 | $ | 7,165 | $ | 180,985 | ||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
Collateralized mortgage obligations | 6 | $ | 73 | $ | 19,134 | - | $ | - | $ | - | 6 | $ | 73 | $ | 19,134 | |||||||||||
Asset-backed securities | 19 | 2,858 | 156,632 | - | - | - | 19 | 2,858 | 156,632 | |||||||||||||||||
25 | $ | 2,931 | $ | 175,766 | - | $ | - | $ | - | 25 | $ | 2,931 | $ | 175,766 | ||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||
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 | ||||||||||||
In determining when OTTI exists for debt securities, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security, or more likely than not will be required to sell the debt security, before its anticipated recovery. The assessment of whether an OTTI decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | ||||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Proceeds from sales of securities | $ | 533,302 | $ | 223,860 | ||||||||||||||||||||||
Gross realized gains on securities | 5,376 | 1,937 | ||||||||||||||||||||||||
Gross realized losses on securities | -7,288 | -362 | ||||||||||||||||||||||||
Securities (losses) gains, net | $ | -1,912 | $ | 1,575 | ||||||||||||||||||||||
Income tax (benefit) expense on net realized (losses) gains | $ | -784 | $ | 641 | ||||||||||||||||||||||
Loans
Loans | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Note 4: Loans | ||||||||||||||||||||||||||
Major classifications of loans at December 31 were as follows: | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Commercial | $ | 94,736 | $ | 86,941 | ||||||||||||||||||||||
Real estate - commercial | 560,233 | 579,687 | ||||||||||||||||||||||||
Real estate - construction | 29,351 | 42,167 | ||||||||||||||||||||||||
Real estate - residential | 390,201 | 414,543 | ||||||||||||||||||||||||
Consumer | 2,760 | 3,101 | ||||||||||||||||||||||||
Overdraft | 628 | 994 | ||||||||||||||||||||||||
Lease financing receivables | 10,069 | 6,060 | ||||||||||||||||||||||||
Other | 12,793 | 16,451 | ||||||||||||||||||||||||
1,100,771 | 1,149,944 | |||||||||||||||||||||||||
Net deferred loan fees and costs | 485 | 106 | ||||||||||||||||||||||||
$ | 1,101,256 | $ | 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 generally protected through adherence to state lending laws, the Company’s lending standards and credit monitoring procedures. The Bank generally makes loans 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 89.0% and 90.1% of the portfolio at December 31, 2013, and December 31, 2012, respectively. | ||||||||||||||||||||||||||
Aged analysis of past due loans by class of loans as of December 31, 2013, and December 31, 2012, were as follows: | ||||||||||||||||||||||||||
December 31, 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 | $ | - | $ | - | $ | - | $ | - | $ | 104,778 | $ | 27 | $ | 104,805 | $ | - | ||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 290 | 526 | - | 816 | 117,938 | 3,180 | 121,934 | - | ||||||||||||||||||
Owner occupied special purpose | 511 | - | - | 511 | 164,277 | 7,671 | 172,459 | - | ||||||||||||||||||
Non-owner occupied general purpose | 218 | - | - | 218 | 132,331 | 5,708 | 138,257 | - | ||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 73,325 | 661 | 73,986 | - | ||||||||||||||||||
Retail properties | - | - | - | - | 34,034 | 3,144 | 37,178 | - | ||||||||||||||||||
Farm | - | - | - | - | 16,419 | - | 16,419 | - | ||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | - | - | - | - | 3,515 | 168 | 3,683 | - | ||||||||||||||||||
Land | - | - | - | - | 4,436 | 209 | 4,645 | - | ||||||||||||||||||
Commercial speculative | - | - | - | - | 11,235 | 1,913 | 13,148 | - | ||||||||||||||||||
All other | 32 | - | - | 32 | 7,404 | 439 | 7,875 | - | ||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 581 | 171 | - | 752 | 140,926 | 6,615 | 148,293 | - | ||||||||||||||||||
Owner occupied | 4,414 | 308 | 87 | 4,809 | 106,184 | 5,967 | 116,960 | 87 | ||||||||||||||||||
Revolving and junior liens | 650 | 76 | - | 726 | 121,013 | 3,209 | 124,948 | - | ||||||||||||||||||
Consumer | 5 | - | - | 5 | 2,755 | - | 2,760 | - | ||||||||||||||||||
All other1 | - | - | - | - | 13,906 | - | 13,906 | - | ||||||||||||||||||
$ | 6,701 | $ | 1,081 | $ | 87 | $ | 7,869 | $ | 1,054,476 | $ | 38,911 | $ | 1,101,256 | $ | 87 | |||||||||||
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 other1 | - | - | - | - | 17,551 | - | 17,551 | - | ||||||||||||||||||
$ | 6,529 | $ | 6,357 | $ | 89 | $ | 12,975 | $ | 1,059,556 | $ | 77,519 | $ | 1,150,050 | $ | 89 | |||||||||||
1. The “All other” class includes overdrafts and net deferred loan fees and costs. | ||||||||||||||||||||||||||
Credit Quality Indicators: | ||||||||||||||||||||||||||
The Company categorizes loans into credit risk categories based on current financial information, overall debt service coverage, comparison against industry averages, historical payment experience, and current economic trends. This analysis includes loans with outstanding loans 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 as of December 31, 2013, and December 31, 2012, were as follows: | ||||||||||||||||||||||||||
December 31, 2013 | Pass | Special | Substandard 1 | Doubtful | Total Loans | |||||||||||||||||||||
Mention | ||||||||||||||||||||||||||
Commercial | $ | 96,371 | $ | 7,953 | $ | 481 | $ | - | $ | 104,805 | ||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 105,683 | 9,048 | 7,203 | - | 121,934 | |||||||||||||||||||||
Owner occupied special purpose | 162,586 | 1,968 | 7,905 | - | 172,459 | |||||||||||||||||||||
Non-owner occupied general purpose | 122,844 | 1,826 | 13,587 | - | 138,257 | |||||||||||||||||||||
Non-owner occupied special purpose | 59,674 | 9,840 | 4,472 | - | 73,986 | |||||||||||||||||||||
Retail Properties | 30,059 | 2,989 | 4,130 | - | 37,178 | |||||||||||||||||||||
Farm | 16,419 | - | - | - | 16,419 | |||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | 1,745 | 1,770 | 168 | - | 3,683 | |||||||||||||||||||||
Land | 4,436 | - | 209 | - | 4,645 | |||||||||||||||||||||
Commercial speculative | 7,674 | 3,561 | 1,913 | - | 13,148 | |||||||||||||||||||||
All other | 7,109 | 32 | 734 | - | 7,875 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 135,136 | 3,407 | 9,750 | - | 148,293 | |||||||||||||||||||||
Owner occupied | 109,261 | - | 7,699 | - | 116,960 | |||||||||||||||||||||
Revolving and junior leins | 120,589 | 388 | 3,971 | - | 124,948 | |||||||||||||||||||||
Consumer | 2,759 | - | 1 | - | 2,760 | |||||||||||||||||||||
All other | 13,906 | - | - | - | 13,906 | |||||||||||||||||||||
Total | $ | 996,251 | $ | 42,782 | $ | 62,223 | $ | - | $ | 1,101,256 | ||||||||||||||||
December 31, 2012 | Pass | Special | Substandard 1 | Doubtful | Total Loans | |||||||||||||||||||||
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 leins | 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 December 31, 2013, were as follows: | ||||||||||||||||||||||||||
Year to date | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 27 | $ | 34 | $ | - | $ | 112 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 2,543 | 3,006 | - | 3,508 | 3 | |||||||||||||||||||||
Owner occupied special purpose | 3,371 | 4,117 | - | 5,275 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 5,428 | 6,709 | - | 9,892 | 75 | |||||||||||||||||||||
Non-owner occupied special purpose | 661 | 919 | - | 569 | - | |||||||||||||||||||||
Retail properties | 3,144 | 3,811 | - | 5,962 | - | |||||||||||||||||||||
Farm | - | - | - | 1,259 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 2,016 | 2,016 | - | 3,085 | 97 | |||||||||||||||||||||
Land | 209 | 308 | - | 232 | - | |||||||||||||||||||||
Commercial speculative | 738 | 742 | - | 1,501 | - | |||||||||||||||||||||
All other | 4 | 35 | - | 41 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 5,984 | 8,338 | - | 5,576 | - | |||||||||||||||||||||
Owner occupied | 9,179 | 10,451 | - | 9,284 | 209 | |||||||||||||||||||||
Revolving and junior liens | 1,771 | 2,313 | - | 1,570 | 6 | |||||||||||||||||||||
Consumer | - | - | 11 | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 35,075 | 42,799 | - | 47,877 | 390 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | - | - | - | 283 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 730 | 792 | 264 | 872 | - | |||||||||||||||||||||
Owner occupied special purpose | 4,300 | 4,702 | 759 | 4,277 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 939 | 1,030 | 129 | 1,859 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | - | |||||||||||||||||||||
Retail properties | - | - | - | 876 | - | |||||||||||||||||||||
Farm | - | - | - | - | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 168 | 604 | 76 | 97 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 1,175 | 1,808 | 17 | 2,748 | - | |||||||||||||||||||||
All other | 436 | 468 | 262 | 458 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 684 | 913 | 160 | 2,713 | - | |||||||||||||||||||||
Owner occupied | 1,565 | 1,831 | 170 | 3,737 | - | |||||||||||||||||||||
Revolving and junior liens | 1,498 | 1,848 | 558 | 1,981 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 11,495 | 13,996 | 2,395 | 19,901 | - | |||||||||||||||||||||
Total impaired loans | $ | 46,570 | $ | 56,795 | $ | 2,395 | $ | 67,778 | $ | 390 | ||||||||||||||||
Impaired loans by class of loan as of December 31, 2012, were as follows: | ||||||||||||||||||||||||||
Year to date | ||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 196 | $ | 229 | $ | - | $ | 354 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 4,473 | 5,021 | - | 4,616 | - | |||||||||||||||||||||
Owner occupied special purpose | 7,180 | 8,486 | - | 9,893 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 14,356 | 17,381 | - | 11,329 | 270 | |||||||||||||||||||||
Non-owner occupied special purpose | 477 | 634 | - | 928 | - | |||||||||||||||||||||
Retail properties | 8,780 | 15,323 | - | 6,683 | - | |||||||||||||||||||||
Farm | 2,517 | 2,517 | - | 1,798 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 4,155 | 4,729 | - | 7,413 | 119 | |||||||||||||||||||||
Land | 254 | 308 | - | 1,140 | - | |||||||||||||||||||||
Commercial speculative | 2,265 | 3,451 | - | 5,907 | - | |||||||||||||||||||||
All other | 78 | 168 | - | 2,193 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 5,168 | 6,979 | - | 4,075 | - | |||||||||||||||||||||
Owner occupied | 9,389 | 11,002 | - | 10,635 | 249 | |||||||||||||||||||||
Revolving and junior liens | 1,368 | 1,689 | - | 1,428 | 4 | |||||||||||||||||||||
Consumer | 23 | 23 | 11 | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 60,679 | 77,940 | - | 68,403 | 642 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | 566 | 619 | 458 | 610 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 1,014 | 1,057 | 230 | 4,499 | - | |||||||||||||||||||||
Owner occupied special purpose | 4,253 | 6,200 | 712 | 4,106 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 2,779 | 3,906 | 204 | 5,588 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | 217 | - | |||||||||||||||||||||
Retail properties | 1,752 | 1,812 | 1,102 | 6,531 | - | |||||||||||||||||||||
Farm | - | - | - | 248 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 26 | 75 | 3 | 1,115 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 4,322 | 6,613 | 757 | 4,495 | - | |||||||||||||||||||||
All other | 479 | 649 | 353 | 430 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 4,742 | 5,954 | 477 | 8,514 | - | |||||||||||||||||||||
Owner occupied | 5,909 | 6,923 | 1,089 | 7,141 | 40 | |||||||||||||||||||||
Revolving and junior liens | 2,464 | 2,625 | 874 | 1,908 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 28,306 | 36,433 | 6,259 | 45,402 | 40 | |||||||||||||||||||||
Total impaired loans | $ | 88,985 | $ | 114,373 | $ | 6,259 | $ | 113,805 | $ | 682 | ||||||||||||||||
TDRs are loans for which the contractual terms have been modified and both of these conditions exist: (1) there is a concession of principal or interest 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 does participate in the Treasury’s 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 TDRs is determined by 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 for loans that are not individually evaluated for specific impairment. All loans charged-off, including TDRs charged-off, are factored into this calculation by portfolio segment. | ||||||||||||||||||||||||||
TDRs that were modified during the period are summarized as follows: | ||||||||||||||||||||||||||
TDR Modifications | ||||||||||||||||||||||||||
Twelve months ended December 31, 2013 | ||||||||||||||||||||||||||
# of | Pre-modification | Post-modification | ||||||||||||||||||||||||
contracts | recorded investment | recorded investment | ||||||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral1 | 1 | $ | 610 | $ | 433 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||
Other2 | 1 | 54 | 54 | |||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral1 | 1 | 137 | 136 | |||||||||||||||||||||||
3 | $ | 801 | $ | 623 | ||||||||||||||||||||||
TDR Modifications | ||||||||||||||||||||||||||
Twelve months ended December 31, 2012 | ||||||||||||||||||||||||||
# of | Pre-modification | Post-modification | ||||||||||||||||||||||||
contracts | recorded investment | recorded investment | ||||||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral1 | 3 | $ | 1,772 | $ | 1,369 | |||||||||||||||||||||
Interest3 | 1 | 2,921 | 2,685 | |||||||||||||||||||||||
Other2 | 1 | 105 | 102 | |||||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Interest3 | 1 | 460 | 412 | |||||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||
Other2 | 1 | 174 | 174 | |||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral1 | 2 | 513 | 145 | |||||||||||||||||||||||
Bifurcate4 | 1 | 337 | 87 | |||||||||||||||||||||||
Other2 | 2 | 214 | 147 | |||||||||||||||||||||||
Revolving and junior liens | ||||||||||||||||||||||||||
HAMP5 | 1 | 117 | 61 | |||||||||||||||||||||||
13 | $ | 6,613 | $ | 5,182 | ||||||||||||||||||||||
1 Deferral: Refers to the deferral of principal | ||||||||||||||||||||||||||
2 Other: Change of terms from bankruptcy court | ||||||||||||||||||||||||||
3 Interest: Refers to change of interest rate | ||||||||||||||||||||||||||
4 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. | ||||||||||||||||||||||||||
5 HAMP: Home Affordable Modification Program | ||||||||||||||||||||||||||
TDRs are classified as being in default on a case-by-case 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 | |||||||||||||||||||||||||
Twelve Months ending December 31, 2013 | Twelve Months ending December 31, 2012 | |||||||||||||||||||||||||
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 | - | $ | - | ||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Commercial speculative | - | - | 1 | 460 | ||||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 1 | 155 | - | - | ||||||||||||||||||||||
Owner occupied | 2 | 312 | - | - | ||||||||||||||||||||||
4 | $ | 1,077 | 1 | $ | 460 | |||||||||||||||||||||
The Bank had no commitments to borrowers whose loans were classified as impaired at December 31, 2013. | ||||||||||||||||||||||||||
Loans to principal officers, directors, and their affiliates, which are made in the ordinary course of business, were as follows at December 31: | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Beginning balance | $ | 3,586 | $ | 4,318 | ||||||||||||||||||||||
New loans | 27,616 | 13,486 | ||||||||||||||||||||||||
Repayments and other reductions | -24,831 | (14,118 | ) | |||||||||||||||||||||||
Change in related party status | 43 | (100 | ) | |||||||||||||||||||||||
Ending balance | $ | 6,414 | $ | 3,586 | ||||||||||||||||||||||
No loans to principal officers, directors, and their affiliates were past due greater than 90 days at either December 31, 2013, or December 31, 2012. |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Allowance for Loan Losses | ' | |||||||||||||||||||||||
Allowance for Loan Losses | ' | |||||||||||||||||||||||
Note 5: Allowance for Loan Losses | ||||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment as of and for the year ending December 31, 2013, were as follows: | ||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | ||||||||||||||||||||||
Commercial | Commercial1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Beginning balance | $ | 4,517 | $ | 20,100 | $ | 3,837 | $ | 4,535 | $ | 1,178 | $ | 4,430 | $ | 38,597 | ||||||||||
Charge-offs | 316 | 2,985 | 1,014 | 6,293 | 597 | - | 11,205 | |||||||||||||||||
Recoveries | 119 | 5,325 | 1,266 | 1,221 | 508 | - | 8,439 | |||||||||||||||||
Provision | (2,070) | (5,677) | (2,109) | 3,374 | 350 | (2,418) | (8,550) | |||||||||||||||||
Ending balance | $ | 2,250 | $ | 16,763 | $ | 1,980 | $ | 2,837 | $ | 1,439 | $ | 2,012 | $ | 27,281 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 1,152 | $ | 355 | $ | 888 | $ | - | $ | - | $ | 2,395 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 2,250 | $ | 15,611 | $ | 1,625 | $ | 1,949 | $ | 1,439 | $ | 2,012 | $ | 24,886 | ||||||||||
Loans: | ||||||||||||||||||||||||
Ending balance | $ | 104,805 | $ | 560,233 | $ | 29,351 | $ | 390,201 | $ | 2,760 | $ | 13,906 | $ | 1,101,256 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | 27 | $ | 21,116 | $ | 4,746 | $ | 20,681 | $ | - | $ | - | $ | 46,570 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 104,778 | $ | 539,117 | $ | 24,605 | $ | 369,520 | $ | 2,760 | $ | 13,906 | $ | 1,054,686 | ||||||||||
1 As of December 31, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $17.2 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.1 million at December 31, 2013. | ||||||||||||||||||||||||
The Company’s allowance for loan loss is calculated in accordance with GAAP and relevant supervisory guidance. All management estimates were made in light of observable trends within loan portfolio segments, market conditions and established credit review administration practices. | ||||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment as of and for the year ending December 31, 2012, were as follows: | ||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | ||||||||||||||||||||||
Commercial | Commercial1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Beginning balance | $ | 5,070 | $ | 30,770 | $ | 7,937 | $ | 6,335 | $ | 884 | $ | 1,001 | $ | 51,997 | ||||||||||
Charge-offs | 344 | 13,508 | 4,969 | 8,406 | 638 | - | 27,865 | |||||||||||||||||
Recoveries | 115 | 3,576 | 3,420 | 583 | 487 | - | 8,181 | |||||||||||||||||
Provision | (324) | (738) | (2,551) | 6,023 | 445 | 3,429 | 6,284 | |||||||||||||||||
Ending balance | $ | 4,517 | $ | 20,100 | $ | 3,837 | $ | 4,535 | $ | 1,178 | $ | 4,430 | $ | 38,597 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | 458 | $ | 2,248 | $ | 1,113 | $ | 2,440 | $ | - | $ | - | $ | 6,259 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 4,059 | $ | 17,852 | $ | 2,724 | $ | 2,095 | $ | 1,178 | $ | 4,430 | $ | 32,338 | ||||||||||
Loans: | ||||||||||||||||||||||||
Ending balance | $ | 93,001 | $ | 579,687 | $ | 42,167 | $ | 414,543 | $ | 3,101 | $ | 17,551 | $ | 1,150,050 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | 762 | $ | 47,581 | $ | 11,579 | $ | 29,040 | $ | 23 | $ | - | $ | 88,985 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 92,239 | $ | 532,106 | $ | 30,588 | $ | 385,503 | $ | 3,078 | $ | 17,551 | $ | 1,061,065 | ||||||||||
1 As of December 31, 2012, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $22.7 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $1.8 million at December 31, 2012. |
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Real Estate Owned | ' | |||||||
Other Real Estate Owned | ' | |||||||
Note 6: Other Real Estate Owned | ||||||||
Details related to the activity in the net OREO portfolio for the periods presented is itemized in the following table: | ||||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
Other real estate owned | 2013 | 2012 | ||||||
Beginning balance | $ | 72,423 | $ | 93,290 | ||||
Property additions | 19,194 | 32,121 | ||||||
Development improvements | 73 | 701 | ||||||
Less: | ||||||||
Property Disposals, net of gains/losses | 41,712 | 36,854 | ||||||
Period valuation adjustments | 8,441 | 16,835 | ||||||
Other real estate owned | $ | 41,537 | $ | 72,423 | ||||
Activity in the valuation allowance was as follows: | ||||||||
2013 | 2012 | |||||||
Balance at beginning of year | $ | 31,454 | $ | 23,462 | ||||
Provision for unrealized losses | 8,293 | 16,385 | ||||||
Reductions taken on sales | (17,389) | (8,843) | ||||||
Other adjustments | (74) | 450 | ||||||
Balance at end of year | $ | 22,284 | $ | 31,454 | ||||
Expenses related to foreclosed assets includes: | ||||||||
2013 | 2012 | |||||||
Gain on sales, net | $ | (1,956) | $ | (2,198) | ||||
Provision for unrealized losses | 8,293 | 16,385 | ||||||
Operating expenses | 5,705 | 7,973 | ||||||
Less: | ||||||||
Lease revenue | 1,295 | 3,497 | ||||||
$ | 10,747 | $ | 18,663 | |||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Premises and Equipment | ' | ||||||||||||||||||
Premises and Equipment | ' | ||||||||||||||||||
Note 7: Premises and Equipment | |||||||||||||||||||
Premises and equipment at December 31 were as follows: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||
Depreciation/ | Net Book | Depreciation/ | Net Book | ||||||||||||||||
Cost | Amortization | Value | Cost | Amortization | Value | ||||||||||||||
Land | $ | 17,474 | $ | - | $ | 17,474 | $ | 17,474 | $ | - | $ | 17,474 | |||||||
Buildings | 45,903 | 20,714 | 25,189 | 45,759 | 19,574 | 26,185 | |||||||||||||
Leasehold improvements | 74 | 72 | 2 | 74 | 72 | 2 | |||||||||||||
Furniture and equipment | 39,919 | 36,579 | 3,340 | 38,681 | 35,340 | 3,341 | |||||||||||||
$ | 103,370 | $ | 57,365 | $ | 46,005 | $ | 101,988 | $ | 54,986 | $ | 47,002 | ||||||||
Deposits
Deposits | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Deposits | ' | ||||||
Deposits | ' | ||||||
Note 8: Deposits | |||||||
Major classifications of deposits at December 31 were as follows: | |||||||
2013 | 2012 | ||||||
Noninterest bearing demand | $ | 373,389 | $ | 379,451 | |||
Savings | 228,589 | 216,305 | |||||
NOW accounts | 297,852 | 286,860 | |||||
Money market accounts | 309,859 | 323,811 | |||||
Certificates of deposit of less than $100,000 | 288,345 | 318,844 | |||||
Certificates of deposit of $100,000 or more | 184,094 | 191,948 | |||||
$ | 1,682,128 | $ | 1,717,219 | ||||
The Company had no brokered certificates of deposit as of December 31, 2013, and 2012. Deposits held by senior officers and directors, including their related interests, totaled $3.4 million and $2.1 million, respectively, as of December 31, 2013, and 2012. | |||||||
At December 31, 2013, scheduled maturities of time deposits were as follows: | |||||||
2014 | $ | 313,231 | |||||
2015 | 87,359 | ||||||
2016 | 24,082 | ||||||
2017 | 15,066 | ||||||
2018 | 32,701 | ||||||
Total | $ | 472,439 | |||||
The following table sets forth the amount and maturities of deposits of $100,000 or more at December 31: | |||||||
2013 | 2012 | ||||||
3 months or less | $ | 24,415 | $ | 20,701 | |||
Over 3 months through 6 months | 21,137 | 15,594 | |||||
Over 6 months through 12 months | 77,718 | 52,609 | |||||
Over 12 months | 60,824 | 103,044 | |||||
$ | 184,094 | $ | 191,948 | ||||
Borrowings
Borrowings | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Borrowings | ' | ||||||||||||
Borrowings | ' | ||||||||||||
Note 9: Borrowings | |||||||||||||
Borrowings at December 31 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Securities sold under repurchase agreements | $ | 22,560 | $ | 17,875 | |||||||||
FHLBC advances1 | 5,000 | 100,000 | |||||||||||
Junior subordinated debentures | 58,378 | 58,378 | |||||||||||
Subordinated debt | 45,000 | 45,000 | |||||||||||
Notes payable and other borrowings | 500 | 500 | |||||||||||
$ | 131,438 | $ | 221,753 | ||||||||||
1Included in other short-term borrowing on the balance sheet. | |||||||||||||
The Company enters into deposit sweep transactions where the transaction amounts are secured by pledged securities. These transactions consistently mature within 1 to 90 days from the transaction date and are governed by sweep repurchase agreements. All sweep repurchase agreements are treated as financings secured by U. S. government agencies and collateralized mortgage-backed securities and had a carrying amount of $22.6 million at December 31, 2013, and $17.9 million at December 31, 2012. The fair value of the pledged collateral was $39.2 million and $26.0 million at December 31, 2013 and December 31, 2012, respectively. At year end 2013, there were no customers with secured balances exceeding 10% of stockholders’ equity. | |||||||||||||
The following table is a summary of additional information related to repurchase agreements: | |||||||||||||
2013 | 2012 | ||||||||||||
Average daily balance during the year | $ | 23,313 | $ | 4,826 | |||||||||
Average interest rate during the year | 0.01% | 0.04% | |||||||||||
Maximum month-end balance during the year | $ | 30,510 | $ | 17,875 | |||||||||
Weighted average interest rate at year-end | 0.01% | 0.05% | |||||||||||
The Company’s borrowings at the FHLBC require the Bank to be a member and invest in the stock of the FHLBC and the Company’s total borrowings from the FHLBC are generally limited to the lower of 35% of the Company’s total assets or 60% of the book value of certain mortgage loans. As of December 31, 2013, the Bank had taken an advance of $5.0 million at 0.13% interest on the FHLBC stock valued at $5.5 million. This advance matured on January 2, 2014 and was replaced with short term FHLBC advances that matured in January 2014. Additional drawdowns and repayments of FHLBC advances have been and will be conducted in the normal course of Company business. Previous borrowing capacity at the Reserve Bank that was not used at either December 31, 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 December 31, 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 on a timely basis. | |||||||||||||
Pursuant to the Written Agreement (the “Written Agreement”) the Company entered into with the Reserve Bank, the Company was required to receive the Reserve Bank’s approval prior to making any interest payments on the subordinated debt. In January 2014 the Reserve Bank notified the Company that the Written Agreement was terminated. | |||||||||||||
The credit facility agreement contains usual and customary provisions regarding acceleration of the senior debt upon the occurrence of an event of default by the Company under the senior debt agreement. The senior debt agreement also contains certain customary representations and warranties and financial covenants. At December 31, 2013, the Company was out of compliance with one of the financial covenants contained within the credit agreement. Prior to 2013, 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. | |||||||||||||
Scheduled maturities and weighted average rates of borrowings for the years ended December 31, were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Weighted | Weighted | ||||||||||||
Average | Average | ||||||||||||
Balance | Rate | Balance | Rate | ||||||||||
2014 | $ | 27,560 | 0.02% | $ | 117,875 | 0.12% | |||||||
2015 | - | - | - | - | |||||||||
2016 | - | - | - | - | |||||||||
2017 | - | - | - | - | |||||||||
2018 | 45,500 | 1.76% | - | - | |||||||||
Thereafter | 58,378 | 7.35% | 103,878 | 4.95% | |||||||||
Total | $ | 131,438 | 3.88% | $ | 221,753 | 2.38% | |||||||
Junior_Subordinated_Debentures
Junior Subordinated Debentures | 12 Months Ended |
Dec. 31, 2013 | |
Junior Subordinated Debentures | ' |
Junior Subordinated Debentures | ' |
Note 10: 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 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 the trust 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 trust 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 20. In August of 2010, the Company 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 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 totaled $17.0 million and $11.7 million at December 31, 2013, and December 31, 2012, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
Note 11: Income Taxes | ||||||||
Income tax expense (benefit) for the year ended December 31 was as follows: | ||||||||
2013 | 2012 | |||||||
Current federal | $ | 105 | $ | - | ||||
Current state | 29 | - | ||||||
Deferred federal | 2,780 | -302 | ||||||
Deferred state | 989 | -436 | ||||||
Change in valuation allowance | -74,145 | 738 | ||||||
$ | -70,242 | $ | - | |||||
The following were the components of the deferred tax assets and liabilities as of December 31: | ||||||||
2013 | 2012 | |||||||
Allowance for loan losses | $ | 12,725 | $ | 18,236 | ||||
Deferred compensation | 788 | 679 | ||||||
Amortization of core deposit asset | 1,656 | 965 | ||||||
Goodwill amortization/impairment | 15,252 | 16,796 | ||||||
Stock option expense | 583 | 785 | ||||||
OREO write downs | 10,041 | 16,632 | ||||||
Federal net operating loss (“NOL”) carryforward | 28,023 | 20,736 | ||||||
State net operating loss (“NOL”) carryforward | 11,847 | 10,186 | ||||||
Deferred tax credit | 1,444 | 1,444 | ||||||
Other assets | 1,166 | 585 | ||||||
Total deferred tax assets | 83,525 | 87,044 | ||||||
Accumulated depreciation on premises and equipment | -1,035 | -1,063 | ||||||
Accretion on securities | -8 | -122 | ||||||
Mortgage servicing rights | -2,571 | -1,819 | ||||||
State tax benefits | -6,994 | -7,315 | ||||||
Other liabilities | -178 | -217 | ||||||
Total deferred tax liabilities | -10,786 | -10,536 | ||||||
Net deferred tax asset before valuation allowance | 72,739 | 76,508 | ||||||
Tax benefit on net unrealized losses on securities | 4,927 | 928 | ||||||
Valuation allowance | -2,363 | -76,508 | ||||||
Net deferred tax asset | $ | 75,303 | $ | 928 | ||||
At December 31, 2013, the Company had $80.1 million federal net operation loss (“NOL”) carryforward of which, $25.3 million expires in 2030, $31.4 million expires in 2031, $8.6 million expires in 2032 and $14.8 million expires in 2033. The Company had $124.7 million state NOL carryforward of which, $29.4 million expires in 2021, and $95.3 million expires in 2025. In addition, the Company had $1.4 million in alternative minimum tax credit that can be carried forward indefinitely. | ||||||||
The components of the provision for deferred income tax expense (benefit) were as follows: | ||||||||
2013 | 2012 | |||||||
Provision for loan losses | $ | 5,511 | $ | 6,125 | ||||
Deferred Compensation | -109 | -51 | ||||||
Amortization of core deposit asset | -691 | -382 | ||||||
Stock option expense | 202 | 326 | ||||||
OREO write downs | 6,591 | -6,538 | ||||||
Federal net operating loss carryforward | -7,287 | -926 | ||||||
State net operating loss carryforward | -1,661 | -446 | ||||||
Depreciation | -28 | -202 | ||||||
Net premiums and discounts on securities | -114 | 85 | ||||||
Mortgage servicing rights | 752 | 281 | ||||||
Goodwill amortization/impairment | 1,544 | 1,526 | ||||||
State tax benefits | -321 | 114 | ||||||
Change in valuation allowance | -74,145 | 738 | ||||||
Other, net | -620 | -650 | ||||||
Total deferred tax benefit | $ | -70,376 | $ | - | ||||
Effective tax rates differ from federal statutory rates applied to financial statement loss due to the following: | ||||||||
2013 | 2012 | |||||||
Tax at statutory federal income tax rate | $ | 4,145 | $ | -25 | ||||
Nontaxable interest income, net of disallowed interest deduction | -245 | -192 | ||||||
BOLI income | -694 | -563 | ||||||
State income taxes, net of federal benefit | 662 | -53 | ||||||
Change in valuation allowance | -74,145 | 738 | ||||||
Deficiency from restricted stock | 10 | 299 | ||||||
Other, net | 25 | -204 | ||||||
Tax at effective tax rate | $ | -70,242 | $ | - | ||||
The Company recorded a tax benefit of $70.2 million on $11.8 million pre-tax income for the year 2013. The tax benefit was composed of $134,000 in current income tax expense and $3.8 million in deferred income tax expense offset by a $74.1 million reversal of the deferred tax valuation allowance reserve. The Company evaluated positive and negative evidence in order to determine if it was more likely than not that the deferred tax asset would be recovered through future income. Significant positive evidence evaluated included recent and projected earnings, significantly improved asset quality and an improved capital position. Negative evidence identified included a reduction in net interest margin as a result of the current rate environment, and historic runoff of loans. After evaluating all of the evidence, the Company believes it will more likely than not utilize the net deferred tax assets and reversed a significant portion of the valuation reserve on the net deferred tax asset in the third quarter of 2013. |
LongTerm_Incentive_Plan
Long-Term Incentive Plan | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Long-Term Incentive Plan | ' | |||||||||||
Long-Term Incentive Plan | ' | |||||||||||
Note 12: 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, nonqualified stock options, restricted stock, restricted stock units, and stock appreciation rights. Total shares issuable under the plan were 45,368 at December 31, 2013. Stock based awards may be granted to selected directors, officers or employees at the discretion of the board of directors. | ||||||||||||
The Company’s board of directors has discretionary authority to establish or change some terms, on a grant-by-grant basis, including the amount of time until the awards vest. 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 those plans was $167,000 and $291,000, in 2013 and 2012, respectively. | ||||||||||||
The fair value of each option award is estimated on the date of grant using a closed form option valuation (binomial) model that uses the assumptions noted in the table below. Expected volatilities are based on the previous five-year historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the Treasury yield curve in effect at the time of the grant. | ||||||||||||
There were no stock options exercised during 2013 or 2012. The Company did not grant any options of the Company’s common stock during either of those periods. All stock options, when granted, are for a term of ten years. There was no unrecognized compensation cost related to nonvested stock options granted under the Incentive Plan as of December 31, 2013, or 2012. | ||||||||||||
A summary of stock option activity in the Incentive Plan is as follows for the year ended December 31, 2013: | ||||||||||||
Weighted- | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual | Intrinsic | ||||||||||
Shares | Price | Term (Years) | Value | |||||||||
Beginning outstanding | 409,500 | $ | 28.75 | |||||||||
Canceled | -8,000 | 30.81 | ||||||||||
Expired | -76,000 | 25.08 | ||||||||||
Ending outstanding | 325,500 | $ | 29.56 | 2.5 | $ | - | ||||||
Exercisable at end of year | 325,500 | $ | 29.56 | 2.5 | $ | - | ||||||
Under the incentive plan, restricted stock was granted beginning in 2005 and the grant of restricted units began in February 2009. Restricted stock has voting rights and both of these restricted awards have dividend rights, and are subject to forfeiture until certain restrictions have lapsed including employment for a specific period. Both restricted stock and restricted units are redeemable in common stock when they vest. There were 155,500 of restricted units issued in 2013 and 60,000 of restricted awards issued in 2012. There were no restricted units issued in 2012 and no restricted awards were issued in 2013. 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 are as follows for the year ended December 31, 2013: | ||||||||||||
December 31, 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 December 31 | 185,500 | $ | 2.95 | |||||||||
As of December 31, 2013, there was $342,000 of total unrecognized compensation cost related to nonvested restricted awards granted under the Plan. The cost is expected to be recognized over a weighted-average period of 2.22 years. There were 241,920 and 144,976 shares that vested during the years ended December 31, 2013, and 2012, respectively. |
Earnings_Loss_per_Share
Earnings (Loss) per Share | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings (Loss) per Share | ' | |||||||
Earnings (Loss) per Share | ' | |||||||
Note 13: Earnings (Loss) per Share | ||||||||
2013 | 2012 | |||||||
Basic earnings (loss) per share: | ||||||||
Weighted-average common shares outstanding | 13,939,919 | 14,074,188 | ||||||
Weighted-average common shares less stock based awards | 13,896,893 | 13,876,129 | ||||||
Weighted-average common shares stock based awards | 209,140 | 331,123 | ||||||
Net earnings (loss) from Operations | $ | 82,085 | $ | -72 | ||||
Dividends on preferred shares | 5,258 | 4,987 | ||||||
Net earnings (loss) available to common stockholders | 76,827 | -5,059 | ||||||
Common stock dividends | - | - | ||||||
Un-vested share-based payment awards | - | - | ||||||
Undistributed earnings (loss) | 76,827 | -5,059 | ||||||
Basic earnings (loss) per share common undistributed earnings (loss) | 5.45 | -0.36 | ||||||
Basic earnings (loss) per share of common stock | $ | 5.45 | $ | -0.36 | ||||
Weighted-average common shares outstanding | 13,939,919 | 14,074,188 | ||||||
Dilutive effect of nonvested restricted awards | 166,114 | 133,064 | ||||||
Diluted average common shares outstanding | 14,106,033 | 14,207,252 | ||||||
Net earnings (loss) available to common stockholders | $ | 76,827 | $ | -5,059 | ||||
Diluted earnings (loss) per share | $ | 5.45 | $ | -0.36 | ||||
Number of antidilutive options excluded from the diluted earnings (loss) per share calculation | 1,140,839 | 1,224,839 | ||||||
The above earnings (loss) per share calculation did not include 815,339 in a common stock warrant that was outstanding as of December 31, 2013 and 2012. |
Commitments
Commitments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments | ' | |||||||||||||||||||
Commitments | ' | |||||||||||||||||||
Note 14: Commitments | ||||||||||||||||||||
In the normal course of business, there are outstanding commitments that are not reflected in the financial statements. Commitments include financial instruments that involve, to varying degrees, elements of credit, interest rate, and liquidity risk. In management’s opinion, these do not represent unusual risks and management does not anticipate significant losses as a result of these transactions. The Company uses the same credit policies in making commitments and conditional obligations for borrowers as it does for on-balance sheet instruments. | ||||||||||||||||||||
The following table is a summary of financial instrument commitments (in thousands): | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Fixed | Variable | Total | Fixed | Variable | Total | |||||||||||||||
Letters of credit: | ||||||||||||||||||||
Borrower: | ||||||||||||||||||||
Financial standby | $ | 10 | $ | 3,886 | $ | 3,896 | $ | 5 | $ | 3,378 | $ | 3,383 | ||||||||
Commercial standby | - | 51 | 51 | - | 51 | 51 | ||||||||||||||
Performance standby | 1,580 | 2,723 | 4,303 | 1,630 | 4,217 | 5,847 | ||||||||||||||
1,590 | 6,660 | 8,250 | 1,635 | 7,646 | 9,281 | |||||||||||||||
Nonborrower: | ||||||||||||||||||||
Performance standby | - | 867 | 867 | 240 | 1,125 | 1,365 | ||||||||||||||
- | 867 | 867 | 240 | 1,125 | 1,365 | |||||||||||||||
Total letters of credit | $ | 1,590 | $ | 7,527 | $ | 9,117 | $ | 1,875 | $ | 8,771 | $ | 10,646 | ||||||||
Unused loan commitments: | $ | 60,681 | $ | 185,581 | $ | 246,262 | $ | 58,330 | $ | 195,290 | $ | 253,620 | ||||||||
The Bank occupies facilities under long-term operating leases, some of which include provisions for future rent increases. In addition, the Company leases space at sites that house ATM’s. As of December 31, 2013, the estimated aggregate minimum annual rental commitments under these leases totaled $129,000 in 2014, $112,000 in 2015, $67,000 in 2016, and $9,000 in 2017 and each year thereafter. The Company also receives rental income on certain leased properties. As of December 31, 2013, aggregate future minimum rental income to be received under noncancelable leases totaled $291,000. Total facility net operating lease revenue/expense recorded under all operating leases was $64,000 of revenue in 2013, and $50,000 of revenue in 2012. Total ATM lease expense, including the costs related to servicing those ATM’s, was $830,000 in 2013 and $941,000 in 2012. | ||||||||||||||||||||
Legal proceedings | ||||||||||||||||||||
The Company and its subsidiaries, from time to time, pursue collection suits and other actions that arise in the ordinary course of business against their borrowers and are defendants in legal actions arising from normal business activities. Management, after consultation with legal counsel, believes that the ultimate liabilities, if any, resulting from these actions will not have a material adverse effect on the financial position of the Bank or on the consolidated financial position of the Company based on all known information at this time. |
Regulatory_Capital_Matters
Regulatory & Capital Matters | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Regulatory & Capital Matters | ' | ||||||||||||
Regulatory & Capital Matters | ' | ||||||||||||
Note 15: Regulatory & Capital Matters | |||||||||||||
On May 16, 2011, the Bank, a wholly-owned subsidiary of the Company, entered into a Stipulation and Consent to the Issuance of a Consent Order (the “Consent Order”) with the Office of the Comptroller of the Currency (“OCC”). Pursuant to the Consent Order, the Bank took certain actions and operated in compliance with the Consent Order’s provisions during its terms. On October 17, 2013, the OCC terminated the Consent Order. | |||||||||||||
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. | |||||||||||||
The Bank exceeded both board of directors’ capital ratio objectives. At December 31, 2013, the Bank’s Tier 1 capital leverage ratio was 10.97%, up 130 basis points from December 31, 2012, and 297 basis points above the 8.00% objective. The Bank’s total capital ratio was 18.04%, up 318 basis points from December 31, 2012, and 604 basis points above the objective of 12.00%. | |||||||||||||
On July 22, 2011, the Company entered into a Written Agreement with the Reserve Bank designed to maintain the financial soundness of the Company. Pursuant to the Written Agreement, the Company took certain actions and operated in compliance with the Written Agreement’s provisions during its term. On January 17, 2014, the Reserve Bank terminated the Written Agreement. | |||||||||||||
Under the terms of the now terminated Written Agreement, the Company was required to, among other things: (i) serve as a source of strength to the Bank, including ensuring that the Bank complies with the 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 Federal Reserve and the Director of the Division of Banking Supervision and Regulation of the Federal Reserve (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 Federal Reserve 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 Federal Reserve; (v) provide the Federal Reserve with a written plan to maintain sufficient capital at the Company on a consolidated basis; (vi) provide the Federal Reserve 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 was required to submit and has submitted certain reports to the Federal Reserve with respect to the foregoing requirements. Although the Written Agreement has been terminated, the Company expects that it will continue to seek approval from the Reserve Bank prior to paying any dividends on its capital stock and incurring any additional indebtedness. | |||||||||||||
Bank holding companies are required to maintain minimum levels of capital in accordance with Federal Reserve 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 December 31, 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. | |||||||||||||
At December 31, 2013, the Company, on a consolidated basis, exceeded the minimum thresholds to be considered “adequately capitalized” under regulatory defined capital ratios and exceeded the heightened capital requirements set forth in the now terminated Consent Order. The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. | |||||||||||||
Capital levels and industry defined regulatory minimum required levels: | |||||||||||||
Minimum Required | Minimum Required | ||||||||||||
Actual | for Capital | to be Well | |||||||||||
at year-end | Adequacy Purposes | Capitalized 1 | |||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||
2013 | |||||||||||||
Total capital to risk weighted assets | |||||||||||||
Consolidated | $ 200,139 | 15.88% | $ 100,826 | 8.00% | N/A | N/A | |||||||
Old Second Bank | 227,467 | 18.04 | 100,872 | 8 | $ 126,090 | 10 | |||||||
Tier 1 capital to risk weighted assets | |||||||||||||
Consolidated | 134,199 | 10.65 | 50,403 | 4 | N/A | N/A | |||||||
Old Second Bank | 211,568 | 16.78 | 50,433 | 4 | 75,650 | 6 | |||||||
Tier 1 capital to average assets | |||||||||||||
Consolidated | 134,199 | 6.96 | 77,126 | 4 | N/A | N/A | |||||||
Old Second Bank | 211,568 | 10.97 | 77,144 | 4 | 96,430 | 5 | |||||||
2012 | |||||||||||||
Total capital to risk weighted assets | |||||||||||||
Consolidated | $ 189,465 | 13.62% | $ 111,286 | 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 | 94,816 | 6.81 | 55,692 | 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 | 94,816 | 4.85 | 78,199 | 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 Bank of America 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 December 31, 2013, trust preferred proceeds of $51.6 million qualified as Tier 1 regulatory capital and $5.0 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. All of the Series B Preferred Stock qualified as Tier 1 regulatory capital as of December 31, 2013 and 2012. | |||||||||||||
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. | |||||||||||||
As discussed in Notes 1 and 10, as of December 31, 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, which were approximately $5.3 million in the year ended December 31, 2013, on the debentures for a period of up to 20 consecutive quarters, and elected to begin such a deferral period in August 2010. However, all deferred interest must be paid before the Company may pay dividends on its capital 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 December 31, 2013, was $17.0 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 accrued and unpaid dividends on its Series B Preferred Stock. In August 2010, the Company also announced the deferral of dividends on such preferred stock. Therefore, in addition to paying all the accumulated and unpaid distributions on the debentures set forth above, the Company must also fully pay all accrued 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 such deferred and unpaid Series B Preferred Stock dividends as of December 31, 2013, was $13.3 million. | |||||||||||||
Further detail on the subordinated debentures, the Series B Preferred Stock and the deferral of interest and dividends thereon is described in Notes 10 and 20 of this report. |
Mortgage_Banking_Derivatives
Mortgage Banking Derivatives (Not designated, Mortgage Banking Derivatives) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Not designated | Mortgage Banking Derivatives | ' | |||
Mortgage Banking Derivatives | ' | |||
Mortgage Banking Derivatives | ' | |||
Note 16: Mortgage Banking Derivatives | ||||
Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to sell mortgage-backed securities (“MBS”) contracts for the future delivery to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These contracts are also derivatives and collectively with the forward commitments for the future delivery of mortgage loans are considered forward contracts. These mortgage banking derivatives are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31 (dollars in thousands). | ||||
2013 | 2012 | |||
Forward contracts: | ||||
Notional amount | $ 11,500 | $ 28,000 | ||
Fair value | 178 | 1,393 | ||
Change in fair value | 126 | -85 | ||
Rate lock commitments: | ||||
Notional amount | $ 9,178 | $ 20,855 | ||
Fair value | 504 | 1,488 | ||
Change in fair value | 189 | 652 | ||
Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage banking derivatives are included in net gains on sales of loans. The Company sold $185.4 million in loans to investors receiving proceeds of $191.0 million and resulting in a gain on sale of $5.6 million for the year ended December 31, 2013. Sales to investors included $126.3 million or 68.2% to Federal National Mortgage Association, $29.3 million, or 15.8% to Wells Fargo and $18.9 million or 10.2% to Federal Home Loan Mortgage Corporation for the year ended December 31, 2013. No other individual investor was sold more than 10% of the total loans sold. | ||||
Periodic changes in value of both forward MBS contracts and rate lock commitments are reported in current period earnings as net gain on sale of mortgage loans. Net gain recognized in earnings for the years ended December 31, 2013, and 2012 were $315,000 and $567,000, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 17: 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 years ended December 31, 2013, and 2012 there were no significant transfers between levels. | |||||||||||||||||
Except for certain CDOs sold by the Company in December 2013 and auction rate asset-backed securities, all securities (available-for-sale and held-to-maturity) are valued by external pricing services or dealer market participants and are classified in Level 2 of the fair value hierarchy. Both market and income valuation approaches are utilized. Quarterly, the Company evaluates the methodologies used by the external pricing services or dealer market participants to develop the fair values to determine whether the results of the valuations are representative of an exit price in the Company’s principal markets and an appropriate representation of fair value. The Company uses the following methods and significant assumptions to estimate fair value: | |||||||||||||||||
· Government-sponsored agency debt securities are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing. | |||||||||||||||||
· Other government-sponsored agency securities, MBS, real estate mortgage investment conduits and collateralized mortgage obligations and non auction rate asset-backed securities are priced using available market information including benchmark yields, prepayment speeds, spreads, volatility of similar securities and trade date. | |||||||||||||||||
· State and political subdivisions are largely grouped by characteristics (e.g., geographical data and source of revenue in trade dissemination systems). Because some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities, | |||||||||||||||||
· Prior to their sale in December 2013, certain CDOs held by the Company were collateralized by trust preferred security issuances of other financial institutions. These CDOs were 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 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 were considered Level 3 valuations. | |||||||||||||||||
· During 2013, asset-backed auction rate securities were acquired and priced using data from dealer market participants until December 31, 2013. At December 31, 2013, the Company utilized pricing data from a nationally recognized valuation firm providing specialized securities valuation services. Therefore, the valuation of auction rate 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 December 31, 2013, and December 31, 2012, respectively, which are measured by the Company at fair value on a recurring basis: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||
U.S. Treasury | $ | 1,544 | $ | - | $ | - | $ | 1,544 | |||||||||
U.S. government agencies | - | 1,672 | - | 1,672 | |||||||||||||
States and political subdivisions | - | 16,669 | 125 | 16,794 | |||||||||||||
Corporate bonds | - | 15,102 | - | 15,102 | |||||||||||||
Collateralized mortgage obligations | - | 63,876 | - | 63,876 | |||||||||||||
Asset-backed securities | 119,066 | 154,137 | 273,203 | ||||||||||||||
Loans held-for-sale | - | 3,822 | - | 3,822 | |||||||||||||
Mortgage servicing rights | - | - | 5,807 | 5,807 | |||||||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 229 | -6 | 223 | |||||||||||||
Other assets (Mortgage banking derivatives) | - | 315 | - | 315 | |||||||||||||
Total | $ | 1,544 | $ | 220,751 | $ | 160,063 | $ | 382,358 | |||||||||
Liabilities: | |||||||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 229 | $ | - | $ | 229 | |||||||||
Total | $ | - | $ | 229 | $ | - | $ | 229 | |||||||||
December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment 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 (Mortgage banking derivatives) | - | 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 using significant unobservable inputs are summarized as follows: | |||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Investment securities available-for- sale | |||||||||||||||||
Collateralized | Asset-backed | States and | Mortgage | Rate | |||||||||||||
Debt | Political | Servicing | Swap | ||||||||||||||
Obligations | 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) | -3,903 | 808 | - | 260 | 41 | ||||||||||||
Included in other comprehensive income | 7,984 | 1,414 | - | - | - | ||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||
Purchases | - | 172,454 | - | - | - | ||||||||||||
Issuances | - | - | - | 1,431 | - | ||||||||||||
Settlements | -1,016 | - | -7 | - | - | ||||||||||||
Sales | -13,022 | -20,539 | - | - | - | ||||||||||||
Ending balance December 31, 2013 | $ | - | $ | 154,137 | $ | 125 | $ | 5,807 | $ | (6 | ) | ||||||
Year Ended December 31, 2012 | |||||||||||||||||
Investment securities | |||||||||||||||||
available-for-sale | |||||||||||||||||
Collateralized | States and | Mortgage | Interest Rate | ||||||||||||||
Debt | Political | Servicing | Swap | ||||||||||||||
Obligations | 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) | 172 | - | -1,575 | 33 | |||||||||||||
Included in other comprehensive income | -66 | - | - | - | |||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||
Purchases | - | - | - | - | |||||||||||||
Issuances | - | - | 2,204 | - | |||||||||||||
Settlements | -123 | -6 | - | - | |||||||||||||
Sales | - | - | - | - | |||||||||||||
Ending balance December 31, 2012 | $ | 9,957 | $ | 132 | $ | 4,116 | $ | (47 | ) | ||||||||
The following table and commentary presents quantitative (dollars in thousands) and qualitative information about Level 3 fair value measurements as of December 31, 2013: | |||||||||||||||||
Measured at fair value | Fair Value | Valuation Methodology | Unobservable Inputs | Range of Input | Weighted | ||||||||||||
on a recurring basis: | Average | ||||||||||||||||
of Inputs | |||||||||||||||||
Mortgage Servicing rights | $ | 5,807 | Discounted Cash Flow | Discount Rate | 10.20% | 10.20% | |||||||||||
Prepayment Speed | 9.70% | 9.70% | |||||||||||||||
Interest Rate Swap Valuation | -6 | Management estimate of credit risk exposure | Probability of Default | 5%-20% | 12.50% | ||||||||||||
Asset-backed securities | 154,137 | Discounted Cash Flow with comparable transaction yields | Credit Risk Premium | 1.1%-1.5% | 1.20% | ||||||||||||
Liquidity Discount | 4.5%-5.1% | 4.90% | |||||||||||||||
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 of credit risk exposure | Probability of Default | 2%-31% | 17.90% | ||||||||||||
The $125,000 on the State and political subdivisions line at December 31, 2013, represents a security from a small, local municipality. This is categorized as a Level 3 security based on the payment stream received by the Company from the municipality. That payment stream is otherwise an unobservable input. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis: | |||||||||||||||||
The Company may be required, from time to time, to measure certain other assets at fair value on a nonrecurring basis in accordance with GAAP. These assets consist of, impaired loans and OREO. For assets measured at fair value on a nonrecurring basis on hand at December 31, 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: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Impaired loans1 | $ | - | $ | - | $ | 9,103 | $ | 9,103 | |||||||||
Other real estate owned, net2 | - | - | 41,537 | 41,537 | |||||||||||||
Total | $ | - | $ | - | $ | 50,640 | $ | 50,640 | |||||||||
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 $11.5 million, with a valuation allowance of $2.4 million, resulting in a decrease of specific allocations within the provision for loan losses of $3.9 million for the year ending December 31, 2013. The carrying value of loans fully charged-off is zero. | |||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $41.5 million, which is made up of the outstanding balance of $65.9 million, net of a valuation allowance of $22.3 million and participations of $2.1 million, at December 31, 2013, resulting in a charge to expense of $8.3 million for the year ended December 31, 2013. | |||||||||||||||||
The Company also has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include OREO and impaired loans. The Company has estimated the fair values of these assets based primarily on Level 3 inputs. OREO and impaired loans are generally valued using the fair value of collateral provided by third party appraisals. These valuations include assumptions related to cash flow projections, discount rates, and recent comparable sales. The numerical range of unobservable inputs for these valuation assumptions are not meaningful. | |||||||||||||||||
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. The carrying value of loans fully charged-off is zero. | |||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, 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_Off
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Not designated, Derivative transactions) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Not designated | Derivative transactions | ' | ||||||||||||||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ||||||||||||||
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ||||||||||||||
Note 18: 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 into 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 assets, the Bank had $3.1 million in investment securities pledged to support interest rate swap activity with three correspondent financial institutions at December 31, 2013. The Bank had $7.4 million in investment securities pledged to support interest rate swap activity with a correspondent financial institution 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 also 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 impact 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 17 above. At December 31, 2013, the notional amount of nonhedging interest rate swaps was $51.9 million with a weighted average maturity of 1.5 years. At December 31, 2012, the notional amount of nonhedging 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 mortgage-backed securities contracts. Loan interest rate lock commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments to originate residential mortgage loans held-for-sale and forward commitments to sell residential mortgage loans or forward MBS contracts are considered derivative instruments and changes in the fair value are recorded to mortgage banking income. Fair values are estimated based on observable changes in mortgage interest rates including mortgage-backed securities prices from the date of the commitment. | |||||||||||||||
The following table presents derivatives not designated as hedging instruments as of December 31, 2013, and periodic changes in the values of the interest rate swaps and the risk participation agreement contract 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 | $ | 51,877 | Other Assets | $ | 223 | Other Liabilities | $ | 229 | |||||||
Commitments1 | 206,965 | Other Assets | 315 | N/A | - | ||||||||||
Forward contracts2 | 11,500 | N/A | - | Other Liabilities | - | ||||||||||
Total | $ | 538 | $ | 229 | |||||||||||
1Includes unused loan commitments and interest rate lock commitments. | |||||||||||||||
2Includes forward MBS 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, interest rate lock commitments, and forward rate lock. | |||||||||||||||
2Includes forward mortgage backed securities and forward loan contracts. | |||||||||||||||
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||
Note 19: Fair Values of Financial Instruments | |||||||||||||||||
The estimated fair values of financial instruments 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, as of December 31, 2012, and subsequently sold in December 2013, 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 17. The carrying value of FHLBC stock approximates fair value as the stock is nonmarketable, and can only be sold to the FHLBC or another member institution at par. During the year ended December 31, 2013, and 2012, we participated in multiple redemptions with the FHLBC and using the redemption values as the carrying value, FHLBC stock has been transferred to a Level 2 fair value as of December 31, 2012. 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 fair value of mortgage banking derivatives is discussed above in Note 16. | |||||||||||||||||
The carrying amount and estimated fair values of financial instruments were as follows: | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 33,210 | $ | 33,210 | $ | 33,210 | $ | - | $ | - | |||||||
Interest bearing deposits with financial institutions | 14,450 | 14,450 | 14,450 | - | - | ||||||||||||
Securities available-for-sale | 372,191 | 372,191 | 1,544 | 216,385 | 154,262 | ||||||||||||
Securities held-to-maturity | 256,571 | 254,328 | 254,328 | ||||||||||||||
FHLBC and FRB Stock | 10,292 | 10,292 | - | 10,292 | - | ||||||||||||
Bank-owned life insurance | 55,410 | 55,410 | - | 55,410 | - | ||||||||||||
Loans held for sale | 3,822 | 3,822 | - | 3,822 | - | ||||||||||||
Loans, net | 1,073,975 | 1,072,837 | - | - | 1,072,837 | ||||||||||||
Accrued interest receivable | 4,248 | 4,248 | - | 4,248 | - | ||||||||||||
Financial liabilities: | |||||||||||||||||
Noninterest bearing deposits | $ | 373,389 | $ | 373,389 | $ | 373,389 | $ | - | $ | - | |||||||
Interest bearing deposits | 1,308,739 | 1,312,476 | - | 1,312,476 | - | ||||||||||||
Securities sold under repurchase agreements | 22,560 | 22,560 | - | 22,560 | - | ||||||||||||
Other short-term borrowings | 5,000 | 5,000 | - | 5,000 | |||||||||||||
Junior subordinated debentures | 58,378 | 67,053 | 39,777 | 27,276 | - | ||||||||||||
Subordinated debenture | 45,000 | 39,896 | - | 39,896 | - | ||||||||||||
Note payable and other borrowings | 500 | 423 | - | 423 | - | ||||||||||||
Borrowing interest payable | 17,037 | 17,037 | 10,122 | 6,915 | - | ||||||||||||
Deposit interest payable | 762 | 762 | - | 762 | - | ||||||||||||
December 31, 2012 | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 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 | 12 Months Ended |
Dec. 31, 2013 | |
Preferred Stock | ' |
Preferred Stock | ' |
Note 20: Preferred Stock | |
The Series B Preferred Stock was issued to Treasury as part of the Treasury’s Troubled Asset Relief Program and Capital Purchase Program (the “CPP”). 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 effective in February 2014. 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 warrant that was issued. The warrant was 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 warrant as part of the allocation process in the amounts of $68.2 million and $4.8 million, respectively. | |
As discussed in Note 15, 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 10 and Note 15, the Company has elected to defer interest payments on certain of its subordinated debentures. 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 December 31, 2013, was $13.3 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 warrant was also sold at a subsequent auction to a third party. Upon completion by Treasury of the auction, the Company’s board affirmed the director appointed by Treasury to ongoing board membership, and the Series B director was elected by the holders of the Series B Preferred Stock at the Company’s 2013 annual meeting. At December 31, 2012, the Company carried $71.9 million of Series B Preferred Stock in total stockholders’ equity. At December 31, 2013, the Company carried $72.9 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 the 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 and the accrued and unpaid dividends. Therefore, 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. |
Parent_Company_Condensed_Finan
Parent Company Condensed Financial Information | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Parent Company Condensed Financial Information | ' | |||||||
Parent Company Condensed Financial Information | ' | |||||||
Note 21: Parent Company Condensed Financial Information | ||||||||
Condensed Balance Sheets as of December 31 were as follows: | ||||||||
2013 | 2012 | |||||||
Assets | ||||||||
Noninterest bearing deposit with bank subsidiary | $ | 2,071 | $ | 3,554 | ||||
Investment in subsidiaries | 258,588 | 192,988 | ||||||
Other assets | 18,766 | 1,712 | ||||||
$ | 279,425 | $ | 198,254 | |||||
Liabilities and Stockholders’ Equity | ||||||||
Junior subordinated debentures | $ | 58,378 | $ | 58,378 | ||||
Subordinated debt | 45,000 | 45,000 | ||||||
Other liabilities | 28,355 | 22,324 | ||||||
Stockholders’ equity | 147,692 | 72,552 | ||||||
$ | 279,425 | $ | 198,254 | |||||
Condensed Statements of Operations for the years ended December 31 were as follows: | ||||||||
2013 | 2012 | |||||||
Operating Income | ||||||||
Cash dividends received from subsidiaries | $ | - | $ | - | ||||
Interest income | - | - | ||||||
Other income | 772 | 189 | ||||||
772 | 189 | |||||||
Operating Expenses | ||||||||
Junior subordinated debentures interest expense | 5,298 | 4,925 | ||||||
Subordinated debt interest expense | 811 | 903 | ||||||
Other interest expense | 16 | 17 | ||||||
Other expenses | 1,006 | 971 | ||||||
7,131 | 6,816 | |||||||
Loss before income taxes and equity in | ||||||||
undistributed net income of subsidiaries | -6,359 | (6,627 | ) | |||||
Income tax benefit | -17,133 | - | ||||||
Income (loss) before equity in undistributed | ||||||||
net income of subsidiaries | 10,774 | (6,627 | ) | |||||
Equity in undistributed net income of subsidiaries | 71,311 | 6,555 | ||||||
Net income (loss) | 82,085 | (72 | ) | |||||
Preferred stock dividends and accretion of discount | 5,258 | 4,987 | ||||||
Net income (loss) available to common stockholders | $ | 76,827 | $ | (5,059 | ) | |||
Condensed Statements of Cash Flows for the years ended December 31 were as follows: | ||||||||
2013 | 2012 | |||||||
Cash Flows from Operating Activities | ||||||||
Net Income (loss) | $ | 82,085 | $ | (72 | ) | |||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||
Equity in undistributed net income of subsidiaries | -71,311 | (6,555 | ) | |||||
Deferred income taxes | -16,786 | - | ||||||
Change in taxes payable | 14 | 2,445 | ||||||
Change in other assets | -264 | (100 | ) | |||||
Gain on recapture of restricted stock | -612 | - | ||||||
Stock-based compensation | 167 | 291 | ||||||
Other, net | 5,502 | 3,293 | ||||||
Net cash used in operating activities | -1,205 | (698 | ) | |||||
Cash Flows from Investing Activities | ||||||||
Net cash provided by investing activities | - | - | ||||||
Cash Flows from Financing Activities | ||||||||
Purchases of treasury stock | -278 | (63 | ) | |||||
Net cash used in financing activities | -278 | (63 | ) | |||||
Net change in cash and cash equivalents | -1,483 | (761 | ) | |||||
Cash and cash equivalents at beginning of year | 3,554 | 4,315 | ||||||
Cash and cash equivalents at end of year | $ | 2,071 | $ | 3,554 | ||||
Stockholders_Rights_Plan
Stockholders' Rights Plan | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Rights Plan | ' |
Stockholders' Rights Plan | ' |
Note 22: Stockholders’ Rights Plan | |
On September 12, 2012, the Company and the Bank, as rights agent, entered into the Amended and Restated Rights Plan and Tax Benefits Preservation Plan (the “Rights Plan”). The Rights Plan amended the Rights Agreement, dated September 17, 2002. The purpose of the Rights Plan is to protect the Company’s deferred tax asset against an unsolicited ownership change, which could significantly limit the Company’s ability to utilize its deferred tax assets. The Rights Plan was ratified by the Company’s stockholders at the Company’s 2013 annual meeting. For a description of the Rights Plan, please refer to the Company’s Form 8-A, filed September 13, 2012. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plans | ' |
Employee Benefit Plans | ' |
Note 23: Employee Benefit Plans | |
Old Second Bancorp, Inc. Employees 401(k) Savings Plan and Trust | |
The Company sponsors a qualified, tax-exempt defined contribution plan (the “Plan”) qualifying under section 401(k) of the Internal Revenue Code. Virtually all employees are eligible to participate after meeting certain age and service requirements. Eligible employees are permitted to contribute up to a dollar limit set by law of their compensation to the 401(k) plan. For the years ended December 31, 2013 and 2012, a discretionary match equal to 100% of the first 2% of the participant’s compensation was contributed to participants of the Plan. Participants are 100% vested in the discretionary matching contributions. The profit sharing portion of the 401(k) plan arrangement provides an annual discretionary contribution to the retirement account of each employee based in part on the Company’s profitability in a given year, and on each participant’s annual compensation. Participants can choose between several different investment options under the 401(k) plan, including shares of the Company’s common stock. | |
The total expense relating to the 401(k) plan was approximately $468,000 and $441,000 in 2013 and 2012, respectively. | |
Old Second Bancorp, Inc. Voluntary Deferred Compensation Plan for Executives | |
The Company sponsors an executive deferred compensation plan, which is a means by which certain executives may voluntarily defer a portion of their salary or bonus. This plan is an unfunded, nonqualified deferred compensation arrangement. Company obligations under this arrangement as of December 31, 2013, and 2012 were $1.8 million and $1.5 million, respectively, and are included in other liabilities. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies | ' |
Use of Estimates | ' |
Use of Estimates – The preparation of consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) and following general practices within the banking industry requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates and assumptions are based on the best available information, actual results could differ from those estimates. | |
Principles of Consolidation | ' |
Principles of Consolidation – The accompanying consolidated financial statements include the accounts and results of operations of the Company and its subsidiaries after elimination of all significant intercompany accounts and transactions. Assets held in a fiduciary or agency capacity are not assets of the Company or its subsidiaries and are not included in the consolidated financial statements. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents – For purposes of the Consolidated Statements of Cash Flows, management has defined cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, and other short-term investments, such as federal funds sold and securities purchased under agreements to resell. | |
Securities | ' |
Securities – Securities are classified as available-for-sale or held-to-maturity at the time of purchase or transfer. | |
Securities that are classified as available-for-sale are carried at fair value. Unrealized gains and losses, net of related deferred income taxes, are recorded in stockholders’ equity as a separate component of accumulated other comprehensive income. | |
Securities held-to-maturity are carried at amortized cost and the discount or premium created in the transfer from available-for-sale is accreted or amortized to the maturity or expected payoff date but not an earlier call. The Company reclassified certain securities, chosen by management, to held-to-maturity effective September 1, 2013. No new purchases were made in the held-to-maturity classification during the fourth quarter. | |
The historical cost of debt securities is adjusted for amortization of premiums and accretion of discounts over the estimated life of the security, using the level yield method. Amortization of premium and accretion of discount are included in interest income from the related security. | |
Purchases and sales of securities are recognized on a trade date basis. Realized securities gains or losses are reported in securities gains, net in the Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. On a quarterly basis, the Company makes an assessment (at the individual security level) to determine whether there have been any events or circumstances indicating that a security with an unrealized loss is other-than-temporarily impaired (“OTTI”). In evaluating OTTI, the Company considers many factors, including the severity and duration of the impairment; the financial condition and near-term prospects of the issuer, which for debt securities considers external credit ratings and recent downgrades; its ability and intent to hold the security for a period of time sufficient for a recovery in value; and the likelihood that it will be required to sell the security before a recovery in value, which may be at maturity. The amount of the impairment related to other factors is recognized in other comprehensive income (loss) unless management intends to sell the security or believes it is more likely than not that it will be required to sell the security prior to full recovery. | |
Federal Home Loan Bank and Federal Reserve Bank Stock | ' |
Federal Home Loan Bank and Federal Reserve Bank Stock – The Company owns the stock of the Federal Home Loan Bank of Chicago (“FHLBC”) and the Federal Reserve Bank of Chicago (“Reserve Bank”). Both of these entities require the Bank to invest in their nonmarketable stock as a condition of membership. The FHLBC is a governmental sponsored entity. The Bank continues to utilize the various products and services of the FHLBC and management considers this stock to be a long-term investment. FHLBC members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLBC stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. The Company’s ability to redeem the shares owned is dependent on the redemption practices of the FHLBC. The Company records dividends in income on the ex-dividend date. Reserve Bank stock is redeemable at par, therefore, market value equals cost. | |
Loans Held-for-Sale | ' |
Loans Held-for-Sale – The Bank originates residential mortgage loans, which consist of loan products eligible for sale to the secondary market. 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 on similar loans. | |
Loan portfolio policies | ' |
Loans | ' |
Loans – Loans held-for-investment are carried at the principal amount outstanding, including certain net deferred loan origination fees. Interest income on loans is accrued based on principal amounts outstanding. Loan and lease origination fees, commitment fees, and certain direct loan origination costs are deferred, and the net amount is amortized over the life of the related loans or commitments as a yield adjustment. Fees related to standby letters of credit, whose ultimate exercise is remote, are amortized into fee income over the estimated life of the commitment. Other credit-related fees are recognized as fee income when earned. | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments – The Company occasionally enters into derivative financial instruments as part of its interest rate risk management strategies. These derivative financial instruments consist primarily of interest rate swaps. Under accounting guidance all derivative instruments are recorded on the balance sheet, in either other assets or other liabilities, at fair value. The accounting for the gain or loss resulting from changes in fair value depends on the intended use of the derivative. For a derivative used to hedge changes in fair value of a recognized asset or liability, or an unrecognized firm commitment, the gain or loss on the derivative will be recognized in earnings, together with the offsetting loss or gain on the hedged item. This results in an earnings impact only to the extent that the hedge is not completely effective in achieving offsetting changes in fair value. If it is determined that the derivative instrument is not highly effective as a hedge, hedge accounting is discontinued, and the adjustment to fair value of the derivative instrument is recorded in earnings. For a derivative used to hedge changes in cash flows associated with forecasted transactions, the gain or loss on the effective portion of the derivative are deferred and reported as a component of accumulated other comprehensive income, which is a component of shareholders’ equity, until such time the hedged transaction affects earnings. For derivative instruments not accounted for as hedges, changes in fair value are recognized in noninterest income/expense. Counterparty risk with correspondent banks is considered through loan covenant agreements and, as such, does not have a significant impact on the fair value of the swaps. The credit valuation reserve recorded on customer interest rate swap positions was determined based upon management’s estimate of the amount of credit risk exposure, including available collateral protection and/or by utilizing an estimate related to a probability of default as indicated in the Bank credit policy. Deferred gains and losses from derivatives that are terminated are amortized over the shorter of the original remaining term of the derivative or the remaining life of the underlying asset or liability. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk – Most of the Company’s business activity is with customers located within Kane, Kendall, DeKalb, DuPage, LaSalle, Will and southwestern Cook counties in Illinois. These banking centers surround the Chicago metropolitan area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in that market area since the Bank generally makes loans within its market. There are no significant concentrations of loans where the customers’ ability to honor loan terms is dependent upon a single economic sector. | |
Nonaccrual loans | ' |
Nonaccrual loans– Generally, commercial loans and loans secured by real estate are placed on nonaccrual status (i) when either principal or interest payments become 90 days or more past due based on contractual terms unless the loan is sufficiently collateralized such that full repayment of both principal and interest is expected and is in the process of collection within a reasonable period or (ii) when an individual analysis of a borrower’s creditworthiness indicates a credit should be placed on nonaccrual status whether or not the loan is 90 days or more past due. When a loan is placed on nonaccrual status, unpaid interest credited to income is reversed. After the loan is placed on nonaccrual, all debt service payments are applied to the principal on the loan. Nonaccrual loans are returned to accrual status when the financial position of the borrower and other relevant factors indicate there is no longer doubt that the Company will collect all principal and interest due. | |
Commercial loans and loans secured by real estate are generally charged-off when deemed uncollectible. A loss is recorded at that time if the net realizable value can be quantified and it is less than the associated principal and interest outstanding. | |
Troubled Debt Restructurings (TDRs) | ' |
Troubled Debt Restructurings (“TDRs”) – A restructuring of debt is considered a TDRs when (i) the borrower is experiencing financial difficulties and (ii) the creditor grants a concession, such as forgiveness of principal, reduction of the interest rate, changes in payments, or extension of the maturity, that it would not otherwise consider. Loans are not classified as TDRs when the modification is short-term or results in only an insignificant delay or shortfall in the payments to be received. The Company’s TDRs are determined on a case-by-case basis in connection with ongoing loan collection processes. | |
The Company does not accrue interest on any TDRs unless it believes collection of all principal and interest under the modified terms is reasonably assured. For a TDRs to accrue interest, the borrower must demonstrate both some level of past performance and the capacity to perform under the modified terms. Generally, six months of consecutive payment performance by the borrower under the restructured terms is required before a TDRs is returned to accrual status. However, the period could vary depending on the individual facts and circumstances of the loan. An evaluation of the borrower’s current creditworthiness is used to assess whether the borrower has the capacity to repay the loan under the modified terms. This evaluation includes an estimate of expected cash flows, evidence of strong financial position, and estimates of the value of collateral, if applicable. | |
Impaired Loans | ' |
Impaired Loans – Impaired loans consist of nonaccrual loans and TDRs (both accruing and on nonaccrual). A loan is considered impaired when it is probable that the Company will be unable to collect all contractual principal and interest due according to the terms of the loan agreement based on current information and events. With the exception of TDRs still accruing interest, loans deemed to be impaired are classified as nonaccrual and are exclusive of smaller homogeneous loans, such as home equity, 1-4 family mortgages, and consumer loans. When a loan is designated as impaired, any subsequent principal and interest payments received are applied to the principal on the loan. | |
90-Days or Greater Past Due Loans | ' |
90-Days or Greater Past Due Loans – 90-days or more past due loans are loans with principal or interest payments three months or more past due, but that still accrue interest. The Company continues to accrue interest if it determines these loans are sufficiently collateralized and the process of collection will conclude within a reasonable time period. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses – The allowance for loan losses is comprised of the allowance for loan losses calculated according to GAAP standards and is maintained by management at a level believed adequate to absorb estimated losses inherent in the existing loan portfolio. Determination of the allowance for loan losses is inherently subjective since it requires significant estimates and management judgment, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogeneous loans based on a migration analysis that uses historical loss experience, consideration of current economic trends, and other credit market factors. | |
Loans deemed to be uncollectible are charged-off against the allowance for loan losses while recoveries of amounts previously charged-off are credited to the allowance for loan losses. Approved releases from previously established loan loss reserves authorized under our allowance methodology also reduce the allowance for loan losses. Additions to the allowance for loan losses are established through the provision for loan losses charged to expense. The amount charged to operating expense depends on a number of factors, including historic loan growth, changes in the composition of the loan portfolio, net charge-off levels, and the Company’s assessment of the allowance for loan losses based on the methodology discussed below. The Company had no major methodology changes in 2013 and only minor changes in two management factors included in the methodology calculations. | |
The allowance for loan losses methodology consists of (i) specific reserves established for probable losses on individual loans for which the recorded investment in the loan exceeds the value of the loan, (ii) an allowance based on a loss migration analysis that uses historical credit loss experience for each loan category, and (iii) the impact as assessed by management in detailed loan review sessions of other internal and external qualitative and credit market factors. | |
The specific reserves component of the allowance for loan losses is based on a periodic analysis of impaired loans exceeding a fixed dollar amount. This analysis follows GAAP standards for collateral based loans. | |
An additional component of the allowance for loan losses is based on actual loss experience for a rolling 20-quarter period and the related internal risk rating and category of loans charged-off, including any charge-off on TDRs. The loss migration analysis is performed quarterly, and the loss factors are updated based on actual experience. | |
Management takes into consideration many internal and external qualitative factors when estimating an additional adjustment for management factors, including: | |
· Changes in the composition of the loan portfolio, trends in the volume and terms of loans, and trends in delinquent and nonaccrual loans that could indicate that historical trends do not reflect current conditions. | |
· Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices. | |
· Changes in the experience, ability, and depth of credit management and other relevant staff. | |
· Changes in the quality of the Company’s loan review system and board of directors’ oversight. | |
· Changes in the value of the underlying collateral for collateral-dependent loans. | |
· Changes in the national and local economy that affect the collectability of various segments of the portfolio. | |
· Changes in other external factors, such as competition and legal or regulatory requirements are considered when determining the level of estimated loss in various segments of the portfolio. | |
The establishment of the allowance for loan losses involves a high degree of judgment and includes a level of imprecision given the difficulty of identifying and assessing the factors impacting loan repayment and estimating the timing and amount of losses. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance for loan losses is dependent upon a variety of factors beyond the Company’s direct control, including the performance of its loan portfolio, the economy, changes in interest rates and property values, and the interpretation of loan risk classifications by regulatory authorities. While each component of the allowance for loan losses is determined separately, the entire balance is available for the entire loan portfolio. | |
Mortgage Servicing Rights | ' |
Mortgage Servicing Rights – The Bank is also involved in the business of servicing mortgage loans. Servicing activities include collecting principal, interest, and escrow payments from borrowers, making tax and insurance payments on behalf of the borrowers, monitoring delinquencies, executing foreclosure proceedings, and accounting for and remitting principal and interest payments to the investors. Mortgage servicing rights represent the right to a stream of cash flows and an obligation to perform specified residential mortgage servicing activities. | |
Mortgage loans that the Company is servicing for others aggregated to $591.5 million and $552.0 million at December 31, 2013, and 2012, respectively. Mortgage loans that the Company is servicing for others are not included in the consolidated balance sheets. Fees received in connection with servicing loans for others are recognized as earned. Loan servicing costs are charged to expense as incurred. | |
Servicing rights are recognized separately as assets when they are acquired through sales of loans and servicing rights are retained. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. The Company compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. | |
Servicing fee income, which is included on the Consolidated Statements of Operations as mortgage servicing income, net of fair value changes, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. | |
Under the fair value measurement method, the Company measures servicing rights at fair value at each reporting date, reports changes in fair value of servicing assets in earnings in the period in which the changes occur, and includes mortgage servicing rights in mortgage servicing income, net of fair value changes, on the Consolidated Statements of Operations. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. | |
Other Real Estate Owned ("OREO") | ' |
Other Real Estate Owned (“OREO”) – Real estate assets acquired in settlement of loans are recorded at fair value when acquired, less estimated costs to sell, establishing a new cost basis. Any deficiency between the net book value and fair value at the foreclosure or deed in lieu date is charged to the allowance for loan losses. If fair value declines after acquisition, a valuation allowance is established for the decrease between the recorded value and the updated fair value less costs to sell. Such declines are included in other noninterest expense. A subsequent reversal of an OREO valuation adjustment can occur, but the resultant carrying value cannot exceed the cost basis established at transfer to OREO. OREO properties are valued at the lower of cost or estimated market less costs subsequent to acquisition. Operating costs after acquisition are also expensed. | |
Premises and Equipment | ' |
Premises and Equipment – Premises, furniture, equipment, and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation expense is determined by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the life of the asset or the lease term including anticipated renewals. Rates of depreciation are generally based on the following useful lives: buildings, 25 to 40 years; building improvements, 3 to 15 years but longer under limited circumstances; and furniture and equipment, 3 to 10 years. Gains and losses on dispositions are included in other noninterest income in the Consolidated Statements of Operations. Maintenance and repairs are charged to operating expenses as incurred, while improvements that extend the useful life of assets are capitalized and depreciated over the estimated remaining life. | |
Bank-Owned Life Insurance ("BOLI") | ' |
Bank-Owned Life Insurance (“BOLI”) – BOLI represents life insurance policies on the lives of certain Company employees (both current and former) for which the Company is the sole owner and beneficiary. These policies are recorded as an asset on the Consolidated Statements of Financial Condition at their cash surrender value (“CSV”) or the amount that could be realized. The change in CSV and insurance proceeds received are recorded as BOLI income in the Consolidated Statements of Operations in noninterest income. | |
Core Deposit Intangible Assets | ' |
Core Deposit Intangible Assets – The core deposit intangible (“CDI”) is amortized over its useful life. The CDI was initially measured at fair value and is amortized on an accelerated method over their estimated useful life of twelve years. It is also evaluated for impairment and impairment, if needed, would be recorded to earnings. | |
Impairment testing is performed using a two-step process. The first step of the impairment review uses an undiscounted cash flow approach to determine if the core deposit intangible is recoverable. If the results of the undiscounted cash flow indicate the CDI is recoverable, the second step of the impairment test is not required. If necessary, the second step of the impairment test compares the implied fair value of the deposits with the carrying amount of the deposits. The implied fair value of deposits is determined using a discounted cash flow approach. An impairment loss would be recognized if the carrying amount of the reported CDI exceeded the carrying value less the implied fair value of the deposits. | |
The annual impairment analysis, completed as of November 30, 2012, indicated the core deposit intangible was not impaired as the Company passed the first step of the impairment test. However, during 2012 management determined that the fair value of the intangible asset had declined largely due to a significant reduction in the cost of funds compared to the alternative funds rate used in the impairment analysis. Expecting these circumstances to continue throughout 2012 and beyond, management believed the useful life of the core deposit intangible has decreased. Management increased the amortization expense for the year ended December 31, 2012, by $622,000. The Company’s November 30, 2013 annual impairment analysis indicated the core deposit intangible was not impaired. The carrying value of the intangible asset decreased from $3.3 million at December 31, 2012, to $1.2 million at December 31, 2013. Further, estimated future amortization expense as of December 31, 2013, indicates that the asset will be fully amortized by December 31, 2014. | |
Loss Contingencies | ' |
Loss Contingencies – Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. | |
Wealth Management | ' |
Wealth Management – Assets held in a fiduciary or agency capacity for customers are not included in the consolidated financial statements as they are not assets of the Company or its subsidiaries. Fee income is recognized on a cash basis and is included as a component of noninterest income in the Consolidated Statements of Operations. | |
Advertising Costs | ' |
Advertising Costs – All advertising costs incurred by the Company are expensed in the period in which they are incurred. | |
Long-term Incentive Plan | ' |
Long-term Incentive Plan – Compensation cost is recognized for stock options and restricted stock awards issued to employees based upon the fair value of the awards at the date of grant. A binomial model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. Once the award is settled, the Company would determine whether the cumulative tax deduction exceeded the cumulative compensation cost recognized in the income statement. The cumulative tax deduction would include both the deductions from the dividends and the deduction from the exercise or vesting of the award. If the tax benefit received from the cumulative deductions exceeds the tax effect of the recognized cumulative compensation cost, the excess would be recognized as an increase to additional paid-in capital. | |
Income Taxes | ' |
Income Taxes – The Company files income tax returns in the U.S. federal jurisdiction and in Illinois. The provision for income taxes is based on income in the consolidated financial statements, rather than amounts reported on the Company’s income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. | |
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. A full valuation allowance was previously established for the deferred tax assets excluding an asset associated with a net unrealized gain or loss on available-for-sale investment securities. At September 30, 2013, the Company reversed a significant portion of the valuation allowance after an analysis of both positive and negative evidence concerning the likelihood of deferred tax asset recognition under GAAP. Due to the implicit recovery of the book basis of the underlying securities along with management’s intent and ability to hold the securities to recovery or maturity, no valuation allowance on this specific deferred tax asset has been established. | |
The Company is under examination by the State of Illinois for the tax years 2008 and 2009. The Company conducts a regular assessment of uncertain tax positions and will establish reserves for tax related interest and penalties with those amounts reflected in income tax expense. The Company did not have any material amounts accrued for interest and penalties at either December 31, 2013, or December 31, 2012. | |
Earnings Per Common Share ("EPS") | ' |
Earnings Per Common Share (“EPS”) – Basic EPS is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding for the period. The basic EPS computation excludes the dilutive effect of all common stock equivalents. Diluted EPS is computed by dividing net income applicable to common shares by the weighted-average number of common shares outstanding plus all potential common shares. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company’s potential common shares represent shares issuable under its long-term incentive compensation plans and under the common stock warrant issued to Treasury through the CPP and subsequently sold to a third party at auction. Such common stock equivalents are computed based on the treasury stock method using the average market price for the period. | |
Treasury Stock | ' |
Treasury Stock – Treasury stock acquired is recorded at cost and is carried as a reduction of stockholders’ equity in the Consolidated Statements of Financial Condition. Treasury stock issued is valued based on the “last in, first out” inventory method. The difference between the consideration received upon issuance and the carrying value is charged or credited to additional paid-in capital. | |
Comprehensive Income (Loss) | ' |
Comprehensive Income (Loss) – Comprehensive income (loss) is the total of reported earnings all other revenues, expenses, gains, and losses that are not reported in earnings under GAAP. The Company includes the following items, net of tax, in other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss): (i) changes in unrealized gains or losses on securities available-for-sale, (ii) changes in unrealized gains or losses on securities held-to-maturity established upon transfer from securities available-for-sale, and (iii) changes in the fair value of derivatives designated under cash flow hedges (when applicable). | |
New Accounting Pronouncements | ' |
New 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 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. | |
Mortgage Banking Derivatives | ' |
Loan portfolio policies | ' |
Derivative Financial Instruments | ' |
Mortgage Banking Derivatives – As part of ongoing residential mortgage business, the Company enters into mortgage banking derivatives such as forward contracts and interest rate lock commitments. The derivatives and loans held-for-sale are carried at fair value with the changes in fair value recorded in current earnings. The net gain or loss on mortgage banking derivatives is included in gain on sale of loans. | |
Commercial and Industrial Loans | ' |
Loan portfolio policies | ' |
Loans | ' |
Commercial and Industrial Loans – Such credits typically comprise working capital loans, loans for physical asset expansion, asset acquisition loans and other business loans. Loans to closely held businesses will generally be guaranteed in full or for a meaningful amount by the businesses’ major owners. Commercial loans are made based primarily on the historical and projected cash flow of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not behave as forecasted and collateral securing loans may fluctuate in value due to economic or individual performance factors. Minimum standards and underwriting guidelines have been established for all commercial loan types. | |
Commercial Real Estate Loans | ' |
Loan portfolio policies | ' |
Loans | ' |
Commercial Real Estate Loans – Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These are loans secured by mortgages on real estate collateral. Commercial real estate loans are viewed primarily as cash flow loans and the repayment of these loans is largely dependent on the successful operation of the property. Loan performance may be adversely affected by factors impacting the general economy or conditions specific to the real estate market such as geographic location and/or property type. | |
Residential Real Estate Loans | ' |
Loan portfolio policies | ' |
Loans | ' |
Residential Real Estate Loans – These are loans that are extended to purchase or refinance 1 – 4 family residential dwellings, or to purchase or refinance vacant lots intended for the construction of a 1 – 4 family home. Residential real estate loans are considered homogenous in nature. Homes may be the primary or secondary residence of the borrower or may be investment properties of the borrower. | |
Real Estate Construction & Development Loans | ' |
Loan portfolio policies | ' |
Loans | ' |
Real Estate Construction & Development Loans – The Company defines construction loans as loans where the loan proceeds are controlled by the Company and used exclusively for the improvement of real estate in which the Company holds a mortgage. Due to the inherent risk in this type of loan, they are subject to other industry specific policy guidelines outlined in the Company’s Credit Risk Policy and are monitored closely. | |
Consumer Loans | ' |
Loan portfolio policies | ' |
Loans | ' |
Consumer Loans – Consumer loans include loans extended primarily for consumer and household purposes although they may include very small business loans for the purchase of vehicles and equipment to a single-owner enterprise and could include business purpose lines of credit if made under the terms of a small business product whose features and underwriting criteria are specified in advance by the Loan Committee. These also include overdrafts and other items not captured by the definitions above. |
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Securities | ' | |||||||||||||||||||||||||
Schedule of amortized cost and fair value of the securities and corresponding amounts of gross unrealized gains and losses | ' | |||||||||||||||||||||||||
Gross | Gross | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||
December 31, 2013: | Cost | Gains | Losses | Value | ||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||
U.S. Treasury | $ | 1,549 | $ | - | $ | -5 | $ | 1,544 | ||||||||||||||||||
U.S. government agencies | 1,738 | - | -66 | 1,672 | ||||||||||||||||||||||
States and political subdivisions | 16,382 | 629 | -217 | 16,794 | ||||||||||||||||||||||
Corporate Bonds | 15,733 | 17 | -648 | 15,102 | ||||||||||||||||||||||
Collateralized mortgage obligations | 66,766 | 256 | -3,146 | 63,876 | ||||||||||||||||||||||
Asset-backed securities | 274,118 | 2,168 | -3,083 | 273,203 | ||||||||||||||||||||||
Total Securities Available-for-Sale | $ | 376,286 | $ | 3,070 | $ | -7,165 | $ | 372,191 | ||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
U.S. government agency mortgage-backed | $ | 35,268 | $ | 45 | $ | -73 | $ | 35,240 | ||||||||||||||||||
Collateralized mortgage obligations | 221,303 | 643 | -2,858 | 219,088 | ||||||||||||||||||||||
Total Securities Held-to-Maturity | $ | 256,571 | $ | 688 | $ | -2,931 | $ | 254,328 | ||||||||||||||||||
December 31, 2012: | ||||||||||||||||||||||||||
Securities Available-for-Sale | ||||||||||||||||||||||||||
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, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities | ' | |||||||||||||||||||||||||
Weighted | ||||||||||||||||||||||||||
Amortized | Average | Fair | ||||||||||||||||||||||||
Securities Available-for-Sale | Cost | Yield | Value | |||||||||||||||||||||||
Due in one year or less | $ | 773 | 3.58% | $ | 785 | |||||||||||||||||||||
Due after one year through five years | 4,725 | 3.38% | 5,023 | |||||||||||||||||||||||
Due after five years through ten years | 23,161 | 3.23% | 22,649 | |||||||||||||||||||||||
Due after ten years | 6,743 | 4.38% | 6,655 | |||||||||||||||||||||||
35,402 | 3.48% | 35,112 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 66,766 | 2.53% | 63,876 | |||||||||||||||||||||||
Asset-backed | 274,118 | 1.70% | 273,203 | |||||||||||||||||||||||
$ | 376,286 | 2.01% | $ | 372,191 | ||||||||||||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
Mortgage-backed and collateralized mortgage obligations | $ | 256,571 | 3.06% | $ | 254,328 | |||||||||||||||||||||
Schedule of information regarding issuers and the value of the securities issued | ' | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||||
Issuer | Cost | Value | ||||||||||||||||||||||||
Access Group | $ | 24,220 | $ | 24,962 | ||||||||||||||||||||||
Northstar Education Finance | 95,320 | 96,327 | ||||||||||||||||||||||||
GCO Education Loan Funding Corp | 39,664 | 38,085 | ||||||||||||||||||||||||
Schedule of securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | ' | |||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||
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 | $ | 5 | $ | 1,544 | - | $ | - | $ | - | 1 | $ | 5 | $ | 1,544 | |||||||||||
U.S. government agencies | - | - | - | 1 | 66 | 1,672 | 1 | 66 | 1,672 | |||||||||||||||||
States and political subdivisions | 6 | 217 | 4,625 | - | - | - | 6 | 217 | 4,625 | |||||||||||||||||
Corporate bonds | 4 | 429 | 10,493 | 2 | 219 | 2,796 | 6 | 648 | 13,289 | |||||||||||||||||
Collateralized mortgage obligations | 5 | 3,146 | 54,021 | - | - | - | 5 | 3,146 | 54,021 | |||||||||||||||||
Asset-backed securities | 11 | 2,836 | 99,466 | 2 | 247 | 6,368 | 13 | 3,083 | 105,834 | |||||||||||||||||
27 | $ | 6,633 | $ | 170,149 | 5 | $ | 532 | $ | 10,836 | 32 | $ | 7,165 | $ | 180,985 | ||||||||||||
Securities Held-to-Maturity | ||||||||||||||||||||||||||
Collateralized mortgage obligations | 6 | $ | 73 | $ | 19,134 | - | $ | - | $ | - | 6 | $ | 73 | $ | 19,134 | |||||||||||
Asset-backed securities | 19 | 2,858 | 156,632 | - | - | - | 19 | 2,858 | 156,632 | |||||||||||||||||
25 | $ | 2,931 | $ | 175,766 | - | $ | - | $ | - | 25 | $ | 2,931 | $ | 175,766 | ||||||||||||
Less than 12 months | Greater than 12 months | |||||||||||||||||||||||||
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 proceeds from sale and gross realized gains and losses on sale of securities | ' | |||||||||||||||||||||||||
Years ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Proceeds from sales of securities | $ | 533,302 | $ | 223,860 | ||||||||||||||||||||||
Gross realized gains on securities | 5,376 | 1,937 | ||||||||||||||||||||||||
Gross realized losses on securities | -7,288 | -362 | ||||||||||||||||||||||||
Securities (losses) gains, net | $ | -1,912 | $ | 1,575 | ||||||||||||||||||||||
Income tax (benefit) expense on net realized (losses) gains | $ | -784 | $ | 641 |
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||
Schedule of major classifications of loans | ' | |||||||||||||||||||||||||
Major classifications of loans at December 31 were as follows: | ||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Commercial | $ | 94,736 | $ | 86,941 | ||||||||||||||||||||||
Real estate - commercial | 560,233 | 579,687 | ||||||||||||||||||||||||
Real estate - construction | 29,351 | 42,167 | ||||||||||||||||||||||||
Real estate - residential | 390,201 | 414,543 | ||||||||||||||||||||||||
Consumer | 2,760 | 3,101 | ||||||||||||||||||||||||
Overdraft | 628 | 994 | ||||||||||||||||||||||||
Lease financing receivables | 10,069 | 6,060 | ||||||||||||||||||||||||
Other | 12,793 | 16,451 | ||||||||||||||||||||||||
1,100,771 | 1,149,944 | |||||||||||||||||||||||||
Net deferred loan fees and costs | 485 | 106 | ||||||||||||||||||||||||
$ | 1,101,256 | $ | 1,150,050 | |||||||||||||||||||||||
Schedule of aged analysis of past due loans by class of loans | ' | |||||||||||||||||||||||||
December 31, 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 | $ | - | $ | - | $ | - | $ | - | $ | 104,778 | $ | 27 | $ | 104,805 | $ | - | ||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 290 | 526 | - | 816 | 117,938 | 3,180 | 121,934 | - | ||||||||||||||||||
Owner occupied special purpose | 511 | - | - | 511 | 164,277 | 7,671 | 172,459 | - | ||||||||||||||||||
Non-owner occupied general purpose | 218 | - | - | 218 | 132,331 | 5,708 | 138,257 | - | ||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | 73,325 | 661 | 73,986 | - | ||||||||||||||||||
Retail properties | - | - | - | - | 34,034 | 3,144 | 37,178 | - | ||||||||||||||||||
Farm | - | - | - | - | 16,419 | - | 16,419 | - | ||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | - | - | - | - | 3,515 | 168 | 3,683 | - | ||||||||||||||||||
Land | - | - | - | - | 4,436 | 209 | 4,645 | - | ||||||||||||||||||
Commercial speculative | - | - | - | - | 11,235 | 1,913 | 13,148 | - | ||||||||||||||||||
All other | 32 | - | - | 32 | 7,404 | 439 | 7,875 | - | ||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 581 | 171 | - | 752 | 140,926 | 6,615 | 148,293 | - | ||||||||||||||||||
Owner occupied | 4,414 | 308 | 87 | 4,809 | 106,184 | 5,967 | 116,960 | 87 | ||||||||||||||||||
Revolving and junior liens | 650 | 76 | - | 726 | 121,013 | 3,209 | 124,948 | - | ||||||||||||||||||
Consumer | 5 | - | - | 5 | 2,755 | - | 2,760 | - | ||||||||||||||||||
All other1 | - | - | - | - | 13,906 | - | 13,906 | - | ||||||||||||||||||
$ | 6,701 | $ | 1,081 | $ | 87 | $ | 7,869 | $ | 1,054,476 | $ | 38,911 | $ | 1,101,256 | $ | 87 | |||||||||||
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 other1 | - | - | - | - | 17,551 | - | 17,551 | - | ||||||||||||||||||
$ | 6,529 | $ | 6,357 | $ | 89 | $ | 12,975 | $ | 1,059,556 | $ | 77,519 | $ | 1,150,050 | $ | 89 | |||||||||||
1. The “All other” class includes overdrafts and net deferred loan fees and costs. | ||||||||||||||||||||||||||
Schedule of credit quality indicators by class of loans | ' | |||||||||||||||||||||||||
December 31, 2013 | Pass | Special | Substandard 1 | Doubtful | Total Loans | |||||||||||||||||||||
Mention | ||||||||||||||||||||||||||
Commercial | $ | 96,371 | $ | 7,953 | $ | 481 | $ | - | $ | 104,805 | ||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Owner occupied general purpose | 105,683 | 9,048 | 7,203 | - | 121,934 | |||||||||||||||||||||
Owner occupied special purpose | 162,586 | 1,968 | 7,905 | - | 172,459 | |||||||||||||||||||||
Non-owner occupied general purpose | 122,844 | 1,826 | 13,587 | - | 138,257 | |||||||||||||||||||||
Non-owner occupied special purpose | 59,674 | 9,840 | 4,472 | - | 73,986 | |||||||||||||||||||||
Retail Properties | 30,059 | 2,989 | 4,130 | - | 37,178 | |||||||||||||||||||||
Farm | 16,419 | - | - | - | 16,419 | |||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Homebuilder | 1,745 | 1,770 | 168 | - | 3,683 | |||||||||||||||||||||
Land | 4,436 | - | 209 | - | 4,645 | |||||||||||||||||||||
Commercial speculative | 7,674 | 3,561 | 1,913 | - | 13,148 | |||||||||||||||||||||
All other | 7,109 | 32 | 734 | - | 7,875 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 135,136 | 3,407 | 9,750 | - | 148,293 | |||||||||||||||||||||
Owner occupied | 109,261 | - | 7,699 | - | 116,960 | |||||||||||||||||||||
Revolving and junior leins | 120,589 | 388 | 3,971 | - | 124,948 | |||||||||||||||||||||
Consumer | 2,759 | - | 1 | - | 2,760 | |||||||||||||||||||||
All other | 13,906 | - | - | - | 13,906 | |||||||||||||||||||||
Total | $ | 996,251 | $ | 42,782 | $ | 62,223 | $ | - | $ | 1,101,256 | ||||||||||||||||
December 31, 2012 | Pass | Special | Substandard 1 | Doubtful | Total Loans | |||||||||||||||||||||
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 leins | 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 | ' | |||||||||||||||||||||||||
Year to date | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 27 | $ | 34 | $ | - | $ | 112 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 2,543 | 3,006 | - | 3,508 | 3 | |||||||||||||||||||||
Owner occupied special purpose | 3,371 | 4,117 | - | 5,275 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 5,428 | 6,709 | - | 9,892 | 75 | |||||||||||||||||||||
Non-owner occupied special purpose | 661 | 919 | - | 569 | - | |||||||||||||||||||||
Retail properties | 3,144 | 3,811 | - | 5,962 | - | |||||||||||||||||||||
Farm | - | - | - | 1,259 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 2,016 | 2,016 | - | 3,085 | 97 | |||||||||||||||||||||
Land | 209 | 308 | - | 232 | - | |||||||||||||||||||||
Commercial speculative | 738 | 742 | - | 1,501 | - | |||||||||||||||||||||
All other | 4 | 35 | - | 41 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 5,984 | 8,338 | - | 5,576 | - | |||||||||||||||||||||
Owner occupied | 9,179 | 10,451 | - | 9,284 | 209 | |||||||||||||||||||||
Revolving and junior liens | 1,771 | 2,313 | - | 1,570 | 6 | |||||||||||||||||||||
Consumer | - | - | 11 | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 35,075 | 42,799 | - | 47,877 | 390 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | - | - | - | 283 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 730 | 792 | 264 | 872 | - | |||||||||||||||||||||
Owner occupied special purpose | 4,300 | 4,702 | 759 | 4,277 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 939 | 1,030 | 129 | 1,859 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | - | - | |||||||||||||||||||||
Retail properties | - | - | - | 876 | - | |||||||||||||||||||||
Farm | - | - | - | - | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 168 | 604 | 76 | 97 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 1,175 | 1,808 | 17 | 2,748 | - | |||||||||||||||||||||
All other | 436 | 468 | 262 | 458 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 684 | 913 | 160 | 2,713 | - | |||||||||||||||||||||
Owner occupied | 1,565 | 1,831 | 170 | 3,737 | - | |||||||||||||||||||||
Revolving and junior liens | 1,498 | 1,848 | 558 | 1,981 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 11,495 | 13,996 | 2,395 | 19,901 | - | |||||||||||||||||||||
Total impaired loans | $ | 46,570 | $ | 56,795 | $ | 2,395 | $ | 67,778 | $ | 390 | ||||||||||||||||
Year to date | ||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||
With no related allowance recorded | ||||||||||||||||||||||||||
Commercial | $ | 196 | $ | 229 | $ | - | $ | 354 | $ | - | ||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 4,473 | 5,021 | - | 4,616 | - | |||||||||||||||||||||
Owner occupied special purpose | 7,180 | 8,486 | - | 9,893 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 14,356 | 17,381 | - | 11,329 | 270 | |||||||||||||||||||||
Non-owner occupied special purpose | 477 | 634 | - | 928 | - | |||||||||||||||||||||
Retail properties | 8,780 | 15,323 | - | 6,683 | - | |||||||||||||||||||||
Farm | 2,517 | 2,517 | - | 1,798 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 4,155 | 4,729 | - | 7,413 | 119 | |||||||||||||||||||||
Land | 254 | 308 | - | 1,140 | - | |||||||||||||||||||||
Commercial speculative | 2,265 | 3,451 | - | 5,907 | - | |||||||||||||||||||||
All other | 78 | 168 | - | 2,193 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 5,168 | 6,979 | - | 4,075 | - | |||||||||||||||||||||
Owner occupied | 9,389 | 11,002 | - | 10,635 | 249 | |||||||||||||||||||||
Revolving and junior liens | 1,368 | 1,689 | - | 1,428 | 4 | |||||||||||||||||||||
Consumer | 23 | 23 | 11 | - | ||||||||||||||||||||||
Total impaired loans with no recorded allowance | 60,679 | 77,940 | - | 68,403 | 642 | |||||||||||||||||||||
With an allowance recorded | ||||||||||||||||||||||||||
Commercial | 566 | 619 | 458 | 610 | - | |||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||
Owner occupied general purpose | 1,014 | 1,057 | 230 | 4,499 | - | |||||||||||||||||||||
Owner occupied special purpose | 4,253 | 6,200 | 712 | 4,106 | - | |||||||||||||||||||||
Non-owner occupied general purpose | 2,779 | 3,906 | 204 | 5,588 | - | |||||||||||||||||||||
Non-owner occupied special purpose | - | - | - | 217 | - | |||||||||||||||||||||
Retail properties | 1,752 | 1,812 | 1,102 | 6,531 | - | |||||||||||||||||||||
Farm | - | - | - | 248 | - | |||||||||||||||||||||
Construction | ||||||||||||||||||||||||||
Homebuilder | 26 | 75 | 3 | 1,115 | - | |||||||||||||||||||||
Land | - | - | - | - | - | |||||||||||||||||||||
Commercial speculative | 4,322 | 6,613 | 757 | 4,495 | - | |||||||||||||||||||||
All other | 479 | 649 | 353 | 430 | - | |||||||||||||||||||||
Residential | ||||||||||||||||||||||||||
Investor | 4,742 | 5,954 | 477 | 8,514 | - | |||||||||||||||||||||
Owner occupied | 5,909 | 6,923 | 1,089 | 7,141 | 40 | |||||||||||||||||||||
Revolving and junior liens | 2,464 | 2,625 | 874 | 1,908 | - | |||||||||||||||||||||
Consumer | - | - | - | - | - | |||||||||||||||||||||
Total impaired loans with a recorded allowance | 28,306 | 36,433 | 6,259 | 45,402 | 40 | |||||||||||||||||||||
Total impaired loans | $ | 88,985 | $ | 114,373 | $ | 6,259 | $ | 113,805 | $ | 682 | ||||||||||||||||
Schedule of TDR modified during the period by type of modification | ' | |||||||||||||||||||||||||
TDR Modifications | ||||||||||||||||||||||||||
Twelve months ended December 31, 2013 | ||||||||||||||||||||||||||
# of | Pre-modification | Post-modification | ||||||||||||||||||||||||
contracts | recorded investment | recorded investment | ||||||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral1 | 1 | $ | 610 | $ | 433 | |||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||
Other2 | 1 | 54 | 54 | |||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral1 | 1 | 137 | 136 | |||||||||||||||||||||||
3 | $ | 801 | $ | 623 | ||||||||||||||||||||||
TDR Modifications | ||||||||||||||||||||||||||
Twelve months ended December 31, 2012 | ||||||||||||||||||||||||||
# of | Pre-modification | Post-modification | ||||||||||||||||||||||||
contracts | recorded investment | recorded investment | ||||||||||||||||||||||||
Troubled debt restructurings | ||||||||||||||||||||||||||
Real estate - commercial | ||||||||||||||||||||||||||
Deferral1 | 3 | $ | 1,772 | $ | 1,369 | |||||||||||||||||||||
Interest3 | 1 | 2,921 | 2,685 | |||||||||||||||||||||||
Other2 | 1 | 105 | 102 | |||||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Interest3 | 1 | 460 | 412 | |||||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | ||||||||||||||||||||||||||
Other2 | 1 | 174 | 174 | |||||||||||||||||||||||
Owner occupied | ||||||||||||||||||||||||||
Deferral1 | 2 | 513 | 145 | |||||||||||||||||||||||
Bifurcate4 | 1 | 337 | 87 | |||||||||||||||||||||||
Other2 | 2 | 214 | 147 | |||||||||||||||||||||||
Revolving and junior liens | ||||||||||||||||||||||||||
HAMP5 | 1 | 117 | 61 | |||||||||||||||||||||||
13 | $ | 6,613 | $ | 5,182 | ||||||||||||||||||||||
1 Deferral: Refers to the deferral of principal | ||||||||||||||||||||||||||
2 Other: Change of terms from bankruptcy court | ||||||||||||||||||||||||||
3 Interest: Refers to change of interest rate | ||||||||||||||||||||||||||
4 Bifurcate: Refers to an “A/B” restructure separated into two notes, charging off the entire B portion of the note. | ||||||||||||||||||||||||||
5 HAMP: Home Affordable Modification Program | ||||||||||||||||||||||||||
Schedule of TDR that subsequently defaulted | ' | |||||||||||||||||||||||||
TDR Default Activity | TDR Default Activity | |||||||||||||||||||||||||
Twelve Months ending December 31, 2013 | Twelve Months ending December 31, 2012 | |||||||||||||||||||||||||
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 | - | $ | - | ||||||||||||||||||||
Real estate - construction | ||||||||||||||||||||||||||
Commercial speculative | - | - | 1 | 460 | ||||||||||||||||||||||
Real estate - residential | ||||||||||||||||||||||||||
Investor | 1 | 155 | - | - | ||||||||||||||||||||||
Owner occupied | 2 | 312 | - | - | ||||||||||||||||||||||
4 | $ | 1,077 | 1 | $ | 460 | |||||||||||||||||||||
Schedule of loans to principal officers, directors, and their affiliates, made in the ordinary course of business | ' | |||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||
Beginning balance | $ | 3,586 | $ | 4,318 | ||||||||||||||||||||||
New loans | 27,616 | 13,486 | ||||||||||||||||||||||||
Repayments and other reductions | -24,831 | (14,118 | ) | |||||||||||||||||||||||
Change in related party status | 43 | (100 | ) | |||||||||||||||||||||||
Ending balance | $ | 6,414 | $ | 3,586 | ||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Allowance for Loan Losses | ' | |||||||||||||||||||||||
Schedule of changes in the allowance for loan losses by segment of loans based on method of impairment | ' | |||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment as of and for the year ending December 31, 2013, were as follows: | ||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | ||||||||||||||||||||||
Commercial | Commercial1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Beginning balance | $ | 4,517 | $ | 20,100 | $ | 3,837 | $ | 4,535 | $ | 1,178 | $ | 4,430 | $ | 38,597 | ||||||||||
Charge-offs | 316 | 2,985 | 1,014 | 6,293 | 597 | - | 11,205 | |||||||||||||||||
Recoveries | 119 | 5,325 | 1,266 | 1,221 | 508 | - | 8,439 | |||||||||||||||||
Provision | (2,070) | (5,677) | (2,109) | 3,374 | 350 | (2,418) | (8,550) | |||||||||||||||||
Ending balance | $ | 2,250 | $ | 16,763 | $ | 1,980 | $ | 2,837 | $ | 1,439 | $ | 2,012 | $ | 27,281 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | - | $ | 1,152 | $ | 355 | $ | 888 | $ | - | $ | - | $ | 2,395 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 2,250 | $ | 15,611 | $ | 1,625 | $ | 1,949 | $ | 1,439 | $ | 2,012 | $ | 24,886 | ||||||||||
Loans: | ||||||||||||||||||||||||
Ending balance | $ | 104,805 | $ | 560,233 | $ | 29,351 | $ | 390,201 | $ | 2,760 | $ | 13,906 | $ | 1,101,256 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | 27 | $ | 21,116 | $ | 4,746 | $ | 20,681 | $ | - | $ | - | $ | 46,570 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 104,778 | $ | 539,117 | $ | 24,605 | $ | 369,520 | $ | 2,760 | $ | 13,906 | $ | 1,054,686 | ||||||||||
1 As of December 31, 2013, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $17.2 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $2.1 million at December 31, 2013. | ||||||||||||||||||||||||
Changes in the allowance for loan losses by segment of loans based on method of impairment as of and for the year ending December 31, 2012, were as follows: | ||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | ||||||||||||||||||||||
Commercial | Commercial1 | Construction | Residential | Consumer | Unallocated | Total | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Beginning balance | $ | 5,070 | $ | 30,770 | $ | 7,937 | $ | 6,335 | $ | 884 | $ | 1,001 | $ | 51,997 | ||||||||||
Charge-offs | 344 | 13,508 | 4,969 | 8,406 | 638 | - | 27,865 | |||||||||||||||||
Recoveries | 115 | 3,576 | 3,420 | 583 | 487 | - | 8,181 | |||||||||||||||||
Provision | (324) | (738) | (2,551) | 6,023 | 445 | 3,429 | 6,284 | |||||||||||||||||
Ending balance | $ | 4,517 | $ | 20,100 | $ | 3,837 | $ | 4,535 | $ | 1,178 | $ | 4,430 | $ | 38,597 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | 458 | $ | 2,248 | $ | 1,113 | $ | 2,440 | $ | - | $ | - | $ | 6,259 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 4,059 | $ | 17,852 | $ | 2,724 | $ | 2,095 | $ | 1,178 | $ | 4,430 | $ | 32,338 | ||||||||||
Loans: | ||||||||||||||||||||||||
Ending balance | $ | 93,001 | $ | 579,687 | $ | 42,167 | $ | 414,543 | $ | 3,101 | $ | 17,551 | $ | 1,150,050 | ||||||||||
Ending balance: Individually evaluated for impairment | $ | 762 | $ | 47,581 | $ | 11,579 | $ | 29,040 | $ | 23 | $ | - | $ | 88,985 | ||||||||||
Ending balance: Collectively evaluated for impairment | $ | 92,239 | $ | 532,106 | $ | 30,588 | $ | 385,503 | $ | 3,078 | $ | 17,551 | $ | 1,061,065 | ||||||||||
1 As of December 31, 2012, this segment consisted of performing loans that included a higher risk pool of loans rated as substandard that totaled $22.7 million. The amount of general allocation that was estimated for that portion of these performing substandard rated loans was $1.8 million at December 31, 2012. |
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Real Estate Owned | ' | |||||||
Schedule of activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ' | |||||||
Twelve Months Ended | ||||||||
December 31, | ||||||||
Other real estate owned | 2013 | 2012 | ||||||
Beginning balance | $ | 72,423 | $ | 93,290 | ||||
Property additions | 19,194 | 32,121 | ||||||
Development improvements | 73 | 701 | ||||||
Less: | ||||||||
Property Disposals, net of gains/losses | 41,712 | 36,854 | ||||||
Period valuation adjustments | 8,441 | 16,835 | ||||||
Other real estate owned | $ | 41,537 | $ | 72,423 | ||||
Schedule of activity in valuation allowance | ' | |||||||
2013 | 2012 | |||||||
Balance at beginning of year | $ | 31,454 | $ | 23,462 | ||||
Provision for unrealized losses | 8,293 | 16,385 | ||||||
Reductions taken on sales | (17,389) | (8,843) | ||||||
Other adjustments | (74) | 450 | ||||||
Balance at end of year | $ | 22,284 | $ | 31,454 | ||||
Schedule of expenses related to foreclosed assets, net of lease revenue | ' | |||||||
2013 | 2012 | |||||||
Gain on sales, net | $ | (1,956) | $ | (2,198) | ||||
Provision for unrealized losses | 8,293 | 16,385 | ||||||
Operating expenses | 5,705 | 7,973 | ||||||
Less: | ||||||||
Lease revenue | 1,295 | 3,497 | ||||||
$ | 10,747 | $ | 18,663 |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Premises and Equipment | ' | ||||||||||||||||||
Schedule of components of premises and equipment | ' | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Accumulated | Accumulated | ||||||||||||||||||
Depreciation/ | Net Book | Depreciation/ | Net Book | ||||||||||||||||
Cost | Amortization | Value | Cost | Amortization | Value | ||||||||||||||
Land | $ | 17,474 | $ | - | $ | 17,474 | $ | 17,474 | $ | - | $ | 17,474 | |||||||
Buildings | 45,903 | 20,714 | 25,189 | 45,759 | 19,574 | 26,185 | |||||||||||||
Leasehold improvements | 74 | 72 | 2 | 74 | 72 | 2 | |||||||||||||
Furniture and equipment | 39,919 | 36,579 | 3,340 | 38,681 | 35,340 | 3,341 | |||||||||||||
$ | 103,370 | $ | 57,365 | $ | 46,005 | $ | 101,988 | $ | 54,986 | $ | 47,002 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Deposits | ' | ||||||
Schedule of major classifications of deposits | ' | ||||||
2013 | 2012 | ||||||
Noninterest bearing demand | $ | 373,389 | $ | 379,451 | |||
Savings | 228,589 | 216,305 | |||||
NOW accounts | 297,852 | 286,860 | |||||
Money market accounts | 309,859 | 323,811 | |||||
Certificates of deposit of less than $100,000 | 288,345 | 318,844 | |||||
Certificates of deposit of $100,000 or more | 184,094 | 191,948 | |||||
$ | 1,682,128 | $ | 1,717,219 | ||||
Summary of scheduled maturities of time deposits | ' | ||||||
2014 | $ | 313,231 | |||||
2015 | 87,359 | ||||||
2016 | 24,082 | ||||||
2017 | 15,066 | ||||||
2018 | 32,701 | ||||||
Total | $ | 472,439 | |||||
Schedule of amount and maturities of deposits of $100,000 or more | ' | ||||||
2013 | 2012 | ||||||
3 months or less | $ | 24,415 | $ | 20,701 | |||
Over 3 months through 6 months | 21,137 | 15,594 | |||||
Over 6 months through 12 months | 77,718 | 52,609 | |||||
Over 12 months | 60,824 | 103,044 | |||||
$ | 184,094 | $ | 191,948 |
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Borrowings | ' | ||||||||||||
Summary of borrowings | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Securities sold under repurchase agreements | $ | 22,560 | $ | 17,875 | |||||||||
FHLBC advances1 | 5,000 | 100,000 | |||||||||||
Junior subordinated debentures | 58,378 | 58,378 | |||||||||||
Subordinated debt | 45,000 | 45,000 | |||||||||||
Notes payable and other borrowings | 500 | 500 | |||||||||||
$ | 131,438 | $ | 221,753 | ||||||||||
Summary of additional information related to repurchase agreements | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Average daily balance during the year | $ | 23,313 | $ | 4,826 | |||||||||
Average interest rate during the year | 0.01% | 0.04% | |||||||||||
Maximum month-end balance during the year | $ | 30,510 | $ | 17,875 | |||||||||
Weighted average interest rate at year-end | 0.01% | 0.05% | |||||||||||
Summary of scheduled maturities and weighted average rates of borrowings | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Weighted | Weighted | ||||||||||||
Average | Average | ||||||||||||
Balance | Rate | Balance | Rate | ||||||||||
2014 | $ | 27,560 | 0.02% | $ | 117,875 | 0.12% | |||||||
2015 | - | - | - | - | |||||||||
2016 | - | - | - | - | |||||||||
2017 | - | - | - | - | |||||||||
2018 | 45,500 | 1.76% | - | - | |||||||||
Thereafter | 58,378 | 7.35% | 103,878 | 4.95% | |||||||||
Total | $ | 131,438 | 3.88% | $ | 221,753 | 2.38% | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes | ' | |||||||
Schedule of components of income tax expense (benefit) | ' | |||||||
2013 | 2012 | |||||||
Current federal | $ | 105 | $ | - | ||||
Current state | 29 | - | ||||||
Deferred federal | 2,780 | -302 | ||||||
Deferred state | 989 | -436 | ||||||
Change in valuation allowance | -74,145 | 738 | ||||||
$ | -70,242 | $ | - | |||||
Schedule of components of deferred tax assets and liabilities | ' | |||||||
2013 | 2012 | |||||||
Allowance for loan losses | $ | 12,725 | $ | 18,236 | ||||
Deferred compensation | 788 | 679 | ||||||
Amortization of core deposit asset | 1,656 | 965 | ||||||
Goodwill amortization/impairment | 15,252 | 16,796 | ||||||
Stock option expense | 583 | 785 | ||||||
OREO write downs | 10,041 | 16,632 | ||||||
Federal net operating loss (“NOL”) carryforward | 28,023 | 20,736 | ||||||
State net operating loss (“NOL”) carryforward | 11,847 | 10,186 | ||||||
Deferred tax credit | 1,444 | 1,444 | ||||||
Other assets | 1,166 | 585 | ||||||
Total deferred tax assets | 83,525 | 87,044 | ||||||
Accumulated depreciation on premises and equipment | -1,035 | -1,063 | ||||||
Accretion on securities | -8 | -122 | ||||||
Mortgage servicing rights | -2,571 | -1,819 | ||||||
State tax benefits | -6,994 | -7,315 | ||||||
Other liabilities | -178 | -217 | ||||||
Total deferred tax liabilities | -10,786 | -10,536 | ||||||
Net deferred tax asset before valuation allowance | 72,739 | 76,508 | ||||||
Tax benefit on net unrealized losses on securities | 4,927 | 928 | ||||||
Valuation allowance | -2,363 | -76,508 | ||||||
Net deferred tax asset | $ | 75,303 | $ | 928 | ||||
Schedule of components of provision for deferred income taxes | ' | |||||||
2013 | 2012 | |||||||
Provision for loan losses | $ | 5,511 | $ | 6,125 | ||||
Deferred Compensation | -109 | -51 | ||||||
Amortization of core deposit asset | -691 | -382 | ||||||
Stock option expense | 202 | 326 | ||||||
OREO write downs | 6,591 | -6,538 | ||||||
Federal net operating loss carryforward | -7,287 | -926 | ||||||
State net operating loss carryforward | -1,661 | -446 | ||||||
Depreciation | -28 | -202 | ||||||
Net premiums and discounts on securities | -114 | 85 | ||||||
Mortgage servicing rights | 752 | 281 | ||||||
Goodwill amortization/impairment | 1,544 | 1,526 | ||||||
State tax benefits | -321 | 114 | ||||||
Change in valuation allowance | -74,145 | 738 | ||||||
Other, net | -620 | -650 | ||||||
Total deferred tax benefit | $ | -70,376 | $ | - | ||||
Schedule of difference between effective tax rates from federal statutory rates | ' | |||||||
2013 | 2012 | |||||||
Tax at statutory federal income tax rate | $ | 4,145 | $ | -25 | ||||
Nontaxable interest income, net of disallowed interest deduction | -245 | -192 | ||||||
BOLI income | -694 | -563 | ||||||
State income taxes, net of federal benefit | 662 | -53 | ||||||
Change in valuation allowance | -74,145 | 738 | ||||||
Deficiency from restricted stock | 10 | 299 | ||||||
Other, net | 25 | -204 | ||||||
Tax at effective tax rate | $ | -70,242 | $ | - |
LongTerm_Incentive_Plan_Tables
Long-Term Incentive Plan (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Long-Term Incentive Plan | ' | |||||||||||
Summary of stock option activity in Incentive Plan | ' | |||||||||||
Weighted- | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual | Intrinsic | ||||||||||
Shares | Price | Term (Years) | Value | |||||||||
Beginning outstanding | 409,500 | $ | 28.75 | |||||||||
Canceled | -8,000 | 30.81 | ||||||||||
Expired | -76,000 | 25.08 | ||||||||||
Ending outstanding | 325,500 | $ | 29.56 | 2.5 | $ | - | ||||||
Exercisable at end of year | 325,500 | $ | 29.56 | 2.5 | $ | - | ||||||
Summary of changes in nonvested shares of restricted share rights | ' | |||||||||||
December 31, 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 December 31 | 185,500 | $ | 2.95 |
Earnings_Loss_per_Share_Tables
Earnings (Loss) per Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Earnings (Loss) per Share | ' | |||||||
Schedule of earnings (loss) per share | ' | |||||||
2013 | 2012 | |||||||
Basic earnings (loss) per share: | ||||||||
Weighted-average common shares outstanding | 13,939,919 | 14,074,188 | ||||||
Weighted-average common shares less stock based awards | 13,896,893 | 13,876,129 | ||||||
Weighted-average common shares stock based awards | 209,140 | 331,123 | ||||||
Net earnings (loss) from Operations | $ | 82,085 | $ | -72 | ||||
Dividends on preferred shares | 5,258 | 4,987 | ||||||
Net earnings (loss) available to common stockholders | 76,827 | -5,059 | ||||||
Common stock dividends | - | - | ||||||
Un-vested share-based payment awards | - | - | ||||||
Undistributed earnings (loss) | 76,827 | -5,059 | ||||||
Basic earnings (loss) per share common undistributed earnings (loss) | 5.45 | -0.36 | ||||||
Basic earnings (loss) per share of common stock | $ | 5.45 | $ | -0.36 | ||||
Weighted-average common shares outstanding | 13,939,919 | 14,074,188 | ||||||
Dilutive effect of nonvested restricted awards | 166,114 | 133,064 | ||||||
Diluted average common shares outstanding | 14,106,033 | 14,207,252 | ||||||
Net earnings (loss) available to common stockholders | $ | 76,827 | $ | -5,059 | ||||
Diluted earnings (loss) per share | $ | 5.45 | $ | -0.36 | ||||
Number of antidilutive options excluded from the diluted earnings (loss) per share calculation | 1,140,839 | 1,224,839 | ||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments | ' | |||||||||||||||||||
Schedule of contractual commitments due to letters of credit | ' | |||||||||||||||||||
The following table is a summary of financial instrument commitments (in thousands): | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Fixed | Variable | Total | Fixed | Variable | Total | |||||||||||||||
Letters of credit: | ||||||||||||||||||||
Borrower: | ||||||||||||||||||||
Financial standby | $ | 10 | $ | 3,886 | $ | 3,896 | $ | 5 | $ | 3,378 | $ | 3,383 | ||||||||
Commercial standby | - | 51 | 51 | - | 51 | 51 | ||||||||||||||
Performance standby | 1,580 | 2,723 | 4,303 | 1,630 | 4,217 | 5,847 | ||||||||||||||
1,590 | 6,660 | 8,250 | 1,635 | 7,646 | 9,281 | |||||||||||||||
Nonborrower: | ||||||||||||||||||||
Performance standby | - | 867 | 867 | 240 | 1,125 | 1,365 | ||||||||||||||
- | 867 | 867 | 240 | 1,125 | 1,365 | |||||||||||||||
Total letters of credit | $ | 1,590 | $ | 7,527 | $ | 9,117 | $ | 1,875 | $ | 8,771 | $ | 10,646 | ||||||||
Unused loan commitments: | $ | 60,681 | $ | 185,581 | $ | 246,262 | $ | 58,330 | $ | 195,290 | $ | 253,620 | ||||||||
Regulatory_Capital_Matters_Tab
Regulatory & Capital Matters (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Regulatory & Capital Matters | ' | ||||||||||||
Schedule of capital levels and industry defined regulatory minimum required levels | ' | ||||||||||||
Minimum Required | Minimum Required | ||||||||||||
Actual | for Capital | to be Well | |||||||||||
at year-end | Adequacy Purposes | Capitalized 1 | |||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||
2013 | |||||||||||||
Total capital to risk weighted assets | |||||||||||||
Consolidated | $ 200,139 | 15.88% | $ 100,826 | 8.00% | N/A | N/A | |||||||
Old Second Bank | 227,467 | 18.04 | 100,872 | 8 | $ 126,090 | 10 | |||||||
Tier 1 capital to risk weighted assets | |||||||||||||
Consolidated | 134,199 | 10.65 | 50,403 | 4 | N/A | N/A | |||||||
Old Second Bank | 211,568 | 16.78 | 50,433 | 4 | 75,650 | 6 | |||||||
Tier 1 capital to average assets | |||||||||||||
Consolidated | 134,199 | 6.96 | 77,126 | 4 | N/A | N/A | |||||||
Old Second Bank | 211,568 | 10.97 | 77,144 | 4 | 96,430 | 5 | |||||||
2012 | |||||||||||||
Total capital to risk weighted assets | |||||||||||||
Consolidated | $ 189,465 | 13.62% | $ 111,286 | 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 | 94,816 | 6.81 | 55,692 | 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 | 94,816 | 4.85 | 78,199 | 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”. |
Mortgage_Banking_Derivatives_T
Mortgage Banking Derivatives (Tables) (Not designated, Mortgage Banking Derivatives) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Not designated | Mortgage Banking Derivatives | ' | |||
Mortgage Banking Derivatives | ' | |||
Schedule of net gain or loss recorded on derivative activity | ' | |||
These mortgage banking derivatives are not designated in hedge relationships using the accepted accounting for derivative instruments and hedging activities at December 31 (dollars in thousands). | ||||
2013 | 2012 | |||
Forward contracts: | ||||
Notional amount | $ 11,500 | $ 28,000 | ||
Fair value | 178 | 1,393 | ||
Change in fair value | 126 | -85 | ||
Rate lock commitments: | ||||
Notional amount | $ 9,178 | $ 20,855 | ||
Fair value | 504 | 1,488 | ||
Change in fair value | 189 | 652 | ||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis | ' | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||
U.S. Treasury | $ | 1,544 | $ | - | $ | - | $ | 1,544 | |||||||||
U.S. government agencies | - | 1,672 | - | 1,672 | |||||||||||||
States and political subdivisions | - | 16,669 | 125 | 16,794 | |||||||||||||
Corporate bonds | - | 15,102 | - | 15,102 | |||||||||||||
Collateralized mortgage obligations | - | 63,876 | - | 63,876 | |||||||||||||
Asset-backed securities | 119,066 | 154,137 | 273,203 | ||||||||||||||
Loans held-for-sale | - | 3,822 | - | 3,822 | |||||||||||||
Mortgage servicing rights | - | - | 5,807 | 5,807 | |||||||||||||
Other assets (Interest rate swap agreements net of swap credit valuation) | - | 229 | -6 | 223 | |||||||||||||
Other assets (Mortgage banking derivatives) | - | 315 | - | 315 | |||||||||||||
Total | $ | 1,544 | $ | 220,751 | $ | 160,063 | $ | 382,358 | |||||||||
Liabilities: | |||||||||||||||||
Other liabilities (Interest rate swap agreements) | $ | - | $ | 229 | $ | - | $ | 229 | |||||||||
Total | $ | - | $ | 229 | $ | - | $ | 229 | |||||||||
December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Investment 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 (Mortgage banking derivatives) | - | 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 | ' | ||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Investment securities available-for- sale | |||||||||||||||||
Collateralized | Asset-backed | States and | Mortgage | Rate | |||||||||||||
Debt | Political | Servicing | Swap | ||||||||||||||
Obligations | 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) | -3,903 | 808 | - | 260 | 41 | ||||||||||||
Included in other comprehensive income | 7,984 | 1,414 | - | - | - | ||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||
Purchases | - | 172,454 | - | - | - | ||||||||||||
Issuances | - | - | - | 1,431 | - | ||||||||||||
Settlements | -1,016 | - | -7 | - | - | ||||||||||||
Sales | -13,022 | -20,539 | - | - | - | ||||||||||||
Ending balance December 31, 2013 | $ | - | $ | 154,137 | $ | 125 | $ | 5,807 | $ | (6 | ) | ||||||
Year Ended December 31, 2012 | |||||||||||||||||
Investment securities | |||||||||||||||||
available-for-sale | |||||||||||||||||
Collateralized | States and | Mortgage | Interest Rate | ||||||||||||||
Debt | Political | Servicing | Swap | ||||||||||||||
Obligations | 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) | 172 | - | -1,575 | 33 | |||||||||||||
Included in other comprehensive income | -66 | - | - | - | |||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||
Purchases | - | - | - | - | |||||||||||||
Issuances | - | - | 2,204 | - | |||||||||||||
Settlements | -123 | -6 | - | - | |||||||||||||
Sales | - | - | - | - | |||||||||||||
Ending balance December 31, 2012 | $ | 9,957 | $ | 132 | $ | 4,116 | $ | (47 | ) | ||||||||
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 December 31, 2013: | |||||||||||||||||
Measured at fair value | Fair Value | Valuation Methodology | Unobservable Inputs | Range of Input | Weighted | ||||||||||||
on a recurring basis: | Average | ||||||||||||||||
of Inputs | |||||||||||||||||
Mortgage Servicing rights | $ | 5,807 | Discounted Cash Flow | Discount Rate | 10.20% | 10.20% | |||||||||||
Prepayment Speed | 9.70% | 9.70% | |||||||||||||||
Interest Rate Swap Valuation | -6 | Management estimate of credit risk exposure | Probability of Default | 5%-20% | 12.50% | ||||||||||||
Asset-backed securities | 154,137 | Discounted Cash Flow with comparable transaction yields | Credit Risk Premium | 1.1%-1.5% | 1.20% | ||||||||||||
Liquidity Discount | 4.5%-5.1% | 4.90% | |||||||||||||||
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 of credit risk exposure | Probability of Default | 2%-31% | 17.90% | ||||||||||||
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | ' | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Impaired loans1 | $ | - | $ | - | $ | 9,103 | $ | 9,103 | |||||||||
Other real estate owned, net2 | - | - | 41,537 | 41,537 | |||||||||||||
Total | $ | - | $ | - | $ | 50,640 | $ | 50,640 | |||||||||
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 $11.5 million, with a valuation allowance of $2.4 million, resulting in a decrease of specific allocations within the provision for loan losses of $3.9 million for the year ending December 31, 2013. The carrying value of loans fully charged-off is zero. | |||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $41.5 million, which is made up of the outstanding balance of $65.9 million, net of a valuation allowance of $22.3 million and participations of $2.1 million, at December 31, 2013, resulting in a charge to expense of $8.3 million for the year ended December 31, 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. The carrying value of loans fully charged-off is zero. | |||||||||||||||||
2 OREO is measured at the lower of carrying or fair value less costs to sell, 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) | 12 Months Ended | ||||||||||||||
Dec. 31, 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 December 31, 2013 | |||||||||||||||
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 | $ | 51,877 | Other Assets | $ | 223 | Other Liabilities | $ | 229 | |||||||
Commitments1 | 206,965 | Other Assets | 315 | N/A | - | ||||||||||
Forward contracts2 | 11,500 | N/A | - | Other Liabilities | - | ||||||||||
Total | $ | 538 | $ | 229 | |||||||||||
1Includes unused loan commitments and interest rate lock commitments. | |||||||||||||||
2Includes forward MBS 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, interest rate lock commitments, and forward rate lock. | |||||||||||||||
2Includes forward mortgage backed securities and forward loan contracts. | |||||||||||||||
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Values of Financial Instruments | ' | ||||||||||||||||
Schedule of carrying amount and estimated fair values of financial instruments | ' | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 33,210 | $ | 33,210 | $ | 33,210 | $ | - | $ | - | |||||||
Interest bearing deposits with financial institutions | 14,450 | 14,450 | 14,450 | - | - | ||||||||||||
Securities available-for-sale | 372,191 | 372,191 | 1,544 | 216,385 | 154,262 | ||||||||||||
Securities held-to-maturity | 256,571 | 254,328 | 254,328 | ||||||||||||||
FHLBC and FRB Stock | 10,292 | 10,292 | - | 10,292 | - | ||||||||||||
Bank-owned life insurance | 55,410 | 55,410 | - | 55,410 | - | ||||||||||||
Loans held for sale | 3,822 | 3,822 | - | 3,822 | - | ||||||||||||
Loans, net | 1,073,975 | 1,072,837 | - | - | 1,072,837 | ||||||||||||
Accrued interest receivable | 4,248 | 4,248 | - | 4,248 | - | ||||||||||||
Financial liabilities: | |||||||||||||||||
Noninterest bearing deposits | $ | 373,389 | $ | 373,389 | $ | 373,389 | $ | - | $ | - | |||||||
Interest bearing deposits | 1,308,739 | 1,312,476 | - | 1,312,476 | - | ||||||||||||
Securities sold under repurchase agreements | 22,560 | 22,560 | - | 22,560 | - | ||||||||||||
Other short-term borrowings | 5,000 | 5,000 | - | 5,000 | |||||||||||||
Junior subordinated debentures | 58,378 | 67,053 | 39,777 | 27,276 | - | ||||||||||||
Subordinated debenture | 45,000 | 39,896 | - | 39,896 | - | ||||||||||||
Note payable and other borrowings | 500 | 423 | - | 423 | - | ||||||||||||
Borrowing interest payable | 17,037 | 17,037 | 10,122 | 6,915 | - | ||||||||||||
Deposit interest payable | 762 | 762 | - | 762 | - | ||||||||||||
December 31, 2012 | |||||||||||||||||
Carrying | Fair | ||||||||||||||||
Amount | Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 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 | - | ||||||||||||
Parent_Company_Condensed_Finan1
Parent Company Condensed Financial Information (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Parent Company Condensed Financial Information | ' | |||||||
Schedule of condensed balance sheets | ' | |||||||
2013 | 2012 | |||||||
Assets | ||||||||
Noninterest bearing deposit with bank subsidiary | $ | 2,071 | $ | 3,554 | ||||
Investment in subsidiaries | 258,588 | 192,988 | ||||||
Other assets | 18,766 | 1,712 | ||||||
$ | 279,425 | $ | 198,254 | |||||
Liabilities and Stockholders’ Equity | ||||||||
Junior subordinated debentures | $ | 58,378 | $ | 58,378 | ||||
Subordinated debt | 45,000 | 45,000 | ||||||
Other liabilities | 28,355 | 22,324 | ||||||
Stockholders’ equity | 147,692 | 72,552 | ||||||
$ | 279,425 | $ | 198,254 | |||||
Schedule of condensed statements of operations | ' | |||||||
2013 | 2012 | |||||||
Operating Income | ||||||||
Cash dividends received from subsidiaries | $ | - | $ | - | ||||
Interest income | - | - | ||||||
Other income | 772 | 189 | ||||||
772 | 189 | |||||||
Operating Expenses | ||||||||
Junior subordinated debentures interest expense | 5,298 | 4,925 | ||||||
Subordinated debt interest expense | 811 | 903 | ||||||
Other interest expense | 16 | 17 | ||||||
Other expenses | 1,006 | 971 | ||||||
7,131 | 6,816 | |||||||
Loss before income taxes and equity in | ||||||||
undistributed net income of subsidiaries | -6,359 | (6,627 | ) | |||||
Income tax benefit | -17,133 | - | ||||||
Income (loss) before equity in undistributed | ||||||||
net income of subsidiaries | 10,774 | (6,627 | ) | |||||
Equity in undistributed net income of subsidiaries | 71,311 | 6,555 | ||||||
Net income (loss) | 82,085 | (72 | ) | |||||
Preferred stock dividends and accretion of discount | 5,258 | 4,987 | ||||||
Net income (loss) available to common stockholders | $ | 76,827 | $ | (5,059 | ) | |||
Schedule of condensed statements of cash Flows | ' | |||||||
2013 | 2012 | |||||||
Cash Flows from Operating Activities | ||||||||
Net Income (loss) | $ | 82,085 | $ | (72 | ) | |||
Adjustments to reconcile net income (loss) to net cash from operating activities: | ||||||||
Equity in undistributed net income of subsidiaries | -71,311 | (6,555 | ) | |||||
Deferred income taxes | -16,786 | - | ||||||
Change in taxes payable | 14 | 2,445 | ||||||
Change in other assets | -264 | (100 | ) | |||||
Gain on recapture of restricted stock | -612 | - | ||||||
Stock-based compensation | 167 | 291 | ||||||
Other, net | 5,502 | 3,293 | ||||||
Net cash used in operating activities | -1,205 | (698 | ) | |||||
Cash Flows from Investing Activities | ||||||||
Net cash provided by investing activities | - | - | ||||||
Cash Flows from Financing Activities | ||||||||
Purchases of treasury stock | -278 | (63 | ) | |||||
Net cash used in financing activities | -278 | (63 | ) | |||||
Net change in cash and cash equivalents | -1,483 | (761 | ) | |||||
Cash and cash equivalents at beginning of year | 3,554 | 4,315 | ||||||
Cash and cash equivalents at end of year | $ | 2,071 | $ | 3,554 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
item | item | ||
Securities | ' | ' | ' |
Number of Held to maturity securities purchased during the period | 0 | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Period of rolling quarterly adjustment on which actual loss history is based | ' | '5 years | ' |
Number of management factors of methodology calculation subject to minor changes | ' | 2 | ' |
Transfers and Servicing of Financial Assets | ' | ' | ' |
Mortgage loans serviced for others | $591.50 | $591.50 | $552 |
Period from due date after which accrual of interest income is discontinued | ' | '90 days | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings | Minimum | ' |
Premises and equipment | ' |
Useful lives | '25 years |
Buildings | Maximum | ' |
Premises and equipment | ' |
Useful lives | '40 years |
Building improvements | Minimum | ' |
Premises and equipment | ' |
Useful lives | '3 years |
Building improvements | Maximum | ' |
Premises and equipment | ' |
Useful lives | '15 years |
Furniture and equipment | Minimum | ' |
Premises and equipment | ' |
Useful lives | '3 years |
Furniture and equipment | Maximum | ' |
Premises and equipment | ' |
Useful lives | '10 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Core Deposit Intangible Assets | ' | ' |
Carrying value of the intangible asset | $1,177,000 | $3,276,000 |
Income Taxes | ' | ' |
Valuation allowance | 0 | ' |
Core Deposit Intangible | ' | ' |
Core Deposit Intangible Assets | ' | ' |
Estimated useful life | '12 years | ' |
Amount of increase in amortization expenses | ' | 622,000 |
Carrying value of the intangible asset | $1,200,000 | $3,300,000 |
Cash_and_Due_from_Banks_Detail
Cash and Due from Banks (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Reserve Bank regulatory reserve | Average | ' | ' |
Other disclosures | ' | ' |
Balances | $8.50 | $8.40 |
Credit card processing services | ' | ' |
Other disclosures | ' | ' |
Balances | $4.40 | ' |
Securities_Details
Securities (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
Sep. 02, 2013 | Sep. 30, 2013 | Dec. 31, 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 | 6,400,000 |
Decrease in FHLBC stock | ' | ' | 910,000 | ' |
Reserve Bank stock | ' | ' | 4,800,000 | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 376,286,000 | 582,141,000 |
Gross Unrealized Gains | ' | ' | 3,070,000 | 7,899,000 |
Gross Unrealized Losses | ' | ' | -7,165,000 | -10,154,000 |
Fair Value | ' | ' | 372,191,000 | 579,886,000 |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | ' | 256,571,000 | ' |
Gross Unrealized Gains | ' | ' | 688,000 | ' |
Gross Unrealized Losses | ' | ' | -2,931,000 | ' |
Fair Value | ' | ' | 254,328,000 | ' |
Securities pledged to secure deposits and for other purposes | ' | ' | 266,700,000 | 210,100,000 |
Additions to total securities portfolio | ' | ' | 48,900,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Due in one year or less | ' | ' | 773,000 | ' |
Due after one year through five years | ' | ' | 4,725,000 | ' |
Due after five years through ten years | ' | ' | 23,161,000 | ' |
Due after ten years | ' | ' | 6,743,000 | ' |
Debt securities excluding securities not due at a single maturity date | ' | ' | 35,402,000 | ' |
Total | ' | ' | 376,286,000 | 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) | ' | ' | 3.38% | ' |
Due after five years through ten years (as a percent) | ' | ' | 3.23% | ' |
Due after ten years (as a percent) | ' | ' | 4.38% | ' |
Debt securities (as a percent) | ' | ' | 3.48% | ' |
Total (as a percent) | ' | ' | 2.01% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Due in one year or less | ' | ' | 785,000 | ' |
Due after one year through five years | ' | ' | 5,023,000 | ' |
Due after five years through ten years | ' | ' | 22,649,000 | ' |
Due after ten years | ' | ' | 6,655,000 | ' |
Debt securities | ' | ' | 35,112,000 | ' |
Fair Value | ' | ' | 372,191,000 | 579,886,000 |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | ' | 256,571,000 | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 254,328,000 | ' |
Stockholders' Equity | Collateralized Debt Obligations | ' | ' | ' | ' |
Securities Held-to-Maturity | ' | ' | ' | ' |
Number of issuers in portfolio | ' | ' | 4 | ' |
Stockholders' Equity | Collateralized Debt Obligations | Greater than | ' | ' | ' | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Percentage of original principal amount of the loans made under FFEL which is guaranteed by the U.S. Department of Education | ' | ' | 97.00% | ' |
Stockholders' Equity | Collateralized Debt Obligations | Access Group | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 24,220,000 | ' |
Fair Value | ' | ' | 24,962,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 24,220,000 | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 24,962,000 | ' |
Stockholders' Equity | Collateralized Debt Obligations | Northstar Education Finance | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 95,320,000 | ' |
Fair Value | ' | ' | 96,327,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 95,320,000 | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 96,327,000 | ' |
Stockholders' Equity | Collateralized Debt Obligations | GCO Education Loan Funding Corp | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 39,664,000 | ' |
Fair Value | ' | ' | 38,085,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 39,664,000 | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 38,085,000 | ' |
Stockholders' Equity | Collateralized Debt Obligations | Credit Suisse | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 28,900,000 | ' |
Fair Value | ' | ' | 26,300,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 28,900,000 | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 26,300,000 | ' |
U.S. Treasury | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 1,549,000 | 1,500,000 |
Gross Unrealized Gains | ' | ' | ' | 7,000 |
Gross Unrealized Losses | ' | ' | -5,000 | ' |
Fair Value | ' | ' | 1,544,000 | 1,507,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 1,549,000 | 1,500,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 1,544,000 | 1,507,000 |
U.S. government agencies | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 1,738,000 | 49,848,000 |
Gross Unrealized Gains | ' | ' | ' | 122,000 |
Gross Unrealized Losses | ' | ' | -66,000 | -120,000 |
Fair Value | ' | ' | 1,672,000 | 49,850,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 1,738,000 | 49,848,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 1,672,000 | 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 | ' | ' | 35,268,000 | ' |
Gross Unrealized Gains | ' | ' | 45,000 | ' |
Gross Unrealized Losses | ' | ' | -73,000 | ' |
Fair Value | ' | ' | 35,240,000 | ' |
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 | ' | ' | 35,268,000 | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 35,240,000 | ' |
States and political subdivisions | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 16,382,000 | 14,639,000 |
Gross Unrealized Gains | ' | ' | 629,000 | 1,216,000 |
Gross Unrealized Losses | ' | ' | -217,000 | ' |
Fair Value | ' | ' | 16,794,000 | 15,855,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 16,382,000 | 14,639,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 16,794,000 | 15,855,000 |
Corporate bonds | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 15,733,000 | 36,355,000 |
Gross Unrealized Gains | ' | ' | 17,000 | 586,000 |
Gross Unrealized Losses | ' | ' | -648,000 | -55,000 |
Fair Value | ' | ' | 15,102,000 | 36,886,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | 15,733,000 | 36,355,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 15,102,000 | 36,886,000 |
Collateralized mortgage obligations | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 66,766,000 | 168,795,000 |
Gross Unrealized Gains | ' | ' | 256,000 | 1,895,000 |
Gross Unrealized Losses | ' | ' | -3,146,000 | -1,090,000 |
Fair Value | ' | ' | 63,876,000 | 169,600,000 |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | ' | 221,303,000 | ' |
Gross Unrealized Gains | ' | ' | 643,000 | ' |
Gross Unrealized Losses | ' | ' | -2,858,000 | ' |
Fair Value | ' | ' | 219,088,000 | ' |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | ' | 66,766,000 | ' |
Total | ' | ' | 66,766,000 | 168,795,000 |
Securities Available-for-Sale, Weighted Average Yield | ' | ' | ' | ' |
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | ' | ' | 2.53% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | ' | 63,876,000 | ' |
Fair Value | ' | ' | 63,876,000 | 169,600,000 |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | ' | 221,303,000 | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 219,088,000 | ' |
Asset-backed securities | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | 274,118,000 | 165,347,000 |
Gross Unrealized Gains | ' | ' | 2,168,000 | 2,468,000 |
Gross Unrealized Losses | ' | ' | -3,083,000 | -322,000 |
Fair Value | ' | ' | 273,203,000 | 167,493,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | ' | 274,118,000 | ' |
Total | ' | ' | 274,118,000 | 165,347,000 |
Securities Available-for-Sale, Weighted Average Yield | ' | ' | ' | ' |
Securities not due at a single maturity date, Weighted Average Yield (as a percent) | ' | ' | 1.70% | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Securities not due at a single maturity date | ' | ' | 273,203,000 | ' |
Fair Value | ' | ' | 273,203,000 | 167,493,000 |
CDOs | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Amortized Cost | ' | ' | ' | 17,941,000 |
Gross Unrealized Losses | ' | ' | ' | -7,984,000 |
Fair Value | ' | ' | ' | 9,957,000 |
Securities Available-for-Sale, Amortized Cost | ' | ' | ' | ' |
Total | ' | ' | ' | 17,941,000 |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | ' | 9,957,000 |
Mortgage backed securities | ' | ' | ' | ' |
Securities Available-for-Sale | ' | ' | ' | ' |
Fair Value | ' | ' | 298,338,000 | ' |
Securities Held-to-Maturity | ' | ' | ' | ' |
Amortized Cost | ' | ' | 256,571,000 | ' |
Fair Value | ' | ' | 254,328,000 | ' |
Securities Available-for-Sale, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | 298,338,000 | ' |
Securities Held-to-Maturity, Amortized Cost | ' | ' | ' | ' |
Amortized Cost | ' | ' | 256,571,000 | ' |
Securities Held-to-Maturity, Weighted Average Yield | ' | ' | ' | ' |
Weighted Average Yield (as a percent) | ' | ' | 3.06% | ' |
Securities Held-to-Maturity, Fair Value | ' | ' | ' | ' |
Fair Value | ' | ' | $254,328,000 | ' |
Securities_Details_2
Securities (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
security | security | |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 27 | 32 |
Greater than 12 months in an unrealized loss position | 5 | 3 |
Total | 32 | 35 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | $6,633 | $2,140 |
Greater than 12 months in an unrealized loss position | 532 | 8,014 |
Total | 7,165 | 10,154 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 170,149 | 155,213 |
Greater than 12 months in an unrealized loss position | 10,836 | 12,300 |
Total | 180,985 | 167,513 |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 25 | ' |
Total | 25 | ' |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 2,931 | ' |
Total | 2,931 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 175,766 | ' |
Total | 175,766 | ' |
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 | 5 | ' |
Total | 5 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 1,544 | ' |
Total | 1,544 | ' |
U.S. government agencies | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | ' | 4 |
Greater than 12 months in an unrealized loss position | 1 | ' |
Total | 1 | 4 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | ' | 120 |
Greater than 12 months in an unrealized loss position | 66 | ' |
Total | 66 | 120 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | ' | 17,039 |
Greater than 12 months in an unrealized loss position | 1,672 | ' |
Total | 1,672 | 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 | 6 | ' |
Total | 6 | ' |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 217 | ' |
Total | 217 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 4,625 | ' |
Total | 4,625 | ' |
Corporate bonds | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 4 | 4 |
Greater than 12 months in an unrealized loss position | 2 | ' |
Total | 6 | 4 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 429 | 55 |
Greater than 12 months in an unrealized loss position | 219 | ' |
Total | 648 | 55 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 10,493 | 9,724 |
Greater than 12 months in an unrealized loss position | 2,796 | ' |
Total | 13,289 | 9,724 |
Collateralized mortgage obligations | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 5 | 6 |
Greater than 12 months in an unrealized loss position | ' | 1 |
Total | 5 | 7 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 3,146 | 1,060 |
Greater than 12 months in an unrealized loss position | ' | 30 |
Total | 3,146 | 1,090 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 54,021 | 37,778 |
Greater than 12 months in an unrealized loss position | ' | 2,343 |
Total | 54,021 | 40,121 |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 6 | ' |
Total | 6 | ' |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 73 | ' |
Total | 73 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 19,134 | ' |
Total | 19,134 | ' |
Asset-backed securities | ' | ' |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 11 | 6 |
Greater than 12 months in an unrealized loss position | 2 | ' |
Total | 13 | 6 |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 2,836 | 322 |
Greater than 12 months in an unrealized loss position | 247 | ' |
Total | 3,083 | 322 |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 99,466 | 37,488 |
Greater than 12 months in an unrealized loss position | 6,368 | ' |
Total | 105,834 | 37,488 |
Number of Securities | ' | ' |
Less than 12 months in an unrealized loss position | 19 | ' |
Total | 19 | ' |
Unrealized Losses | ' | ' |
Less than 12 months in an unrealized loss position | 2,858 | ' |
Total | 2,858 | ' |
Fair Value | ' | ' |
Less than 12 months in an unrealized loss position | 156,632 | ' |
Total | 156,632 | ' |
CDOs | ' | ' |
Number of Securities | ' | ' |
Greater than 12 months in an unrealized loss position | ' | 2 |
Total | ' | 2 |
Unrealized Losses | ' | ' |
Greater than 12 months in an unrealized loss position | ' | 7,984 |
Total | ' | 7,984 |
Fair Value | ' | ' |
Greater than 12 months in an unrealized loss position | ' | 9,957 |
Total | ' | $9,957 |
Securities_Details_3
Securities (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Proceeds from sale and gross realized gains and losses on sale of securities | ' | ' |
Proceeds from sales of securities available-for-sale | $533,302 | $223,860 |
Gross realized gains on securities | 5,376 | 1,937 |
Gross realized losses on securities | -7,288 | -362 |
Securities (losses) gains, net | -1,912 | 1,575 |
Income tax (benefit) expense on net realized (losses) gains | ($784) | $641 |
Loans_Details
Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loans | ' | ' |
Total loans, gross | 1,100,771 | 1,149,944 |
Net deferred loan fees and costs | 485 | 106 |
Total Loans | 1,101,256 | 1,150,050 |
Investor concentration risk | ' | ' |
Loans | ' | ' |
Significant concentrations of loans (as a percent) | 10.00% | ' |
Overdraft | ' | ' |
Loans | ' | ' |
Total loans, gross | 628 | 994 |
Lease financing receivables | ' | ' |
Loans | ' | ' |
Total loans, gross | 10,069 | 6,060 |
Other | ' | ' |
Loans | ' | ' |
Total loans, gross | 12,793 | 16,451 |
Commercial | ' | ' |
Loans | ' | ' |
Total loans, gross | 94,736 | 86,941 |
Total Loans | 104,805 | 93,001 |
Total real estate | ' | ' |
Loans | ' | ' |
Loans receivable as a percentage of total portfolio | 89.00% | 90.10% |
Real estate - commercial | ' | ' |
Loans | ' | ' |
Total loans, gross | 560,233 | 579,687 |
Total Loans | 560,233 | 579,687 |
Real estate - construction | ' | ' |
Loans | ' | ' |
Total loans, gross | 29,351 | 42,167 |
Total Loans | 29,351 | 42,167 |
Real estate - residential | ' | ' |
Loans | ' | ' |
Total loans, gross | 390,201 | 414,543 |
Total Loans | 390,201 | 414,543 |
Consumer | ' | ' |
Loans | ' | ' |
Total loans, gross | 2,760 | 3,101 |
Total Loans | 2,760 | 3,101 |
Loans_Details_2
Loans (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | $6,701 | $6,529 |
60-89 Days Past Due | 1,081 | 6,357 |
90 Days or Greater Past Due | 87 | 89 |
Total Past Due | 7,869 | 12,975 |
Current | 1,054,476 | 1,059,556 |
Nonaccrual | 38,911 | 77,519 |
Total Loans | 1,101,256 | 1,150,050 |
Recorded Investment 90 days or Greater Past Due and Accruing | 87 | 89 |
Commercial | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | ' | 159 |
Total Past Due | ' | 159 |
Current | 104,778 | 92,080 |
Nonaccrual | 27 | 762 |
Total Loans | 104,805 | 93,001 |
Real estate - commercial | ' | ' |
Aged analysis of past due loans | ' | ' |
Total Loans | 560,233 | 579,687 |
Real estate - commercial | Owner occupied general purpose | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 290 | 1,580 |
60-89 Days Past Due | 526 | 50 |
Total Past Due | 816 | 1,630 |
Current | 117,938 | 119,994 |
Nonaccrual | 3,180 | 5,487 |
Total Loans | 121,934 | 127,111 |
Real estate - commercial | Owner occupied special purpose | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 511 | 172 |
Total Past Due | 511 | 172 |
Current | 164,277 | 149,439 |
Nonaccrual | 7,671 | 11,433 |
Total Loans | 172,459 | 161,044 |
Real estate - commercial | Non-owner occupied general purpose | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 218 | ' |
60-89 Days Past Due | ' | 1,046 |
Total Past Due | 218 | 1,046 |
Current | 132,331 | 128,817 |
Nonaccrual | 5,708 | 13,436 |
Total Loans | 138,257 | 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 | 73,325 | 69,299 |
Nonaccrual | 661 | 477 |
Total Loans | 73,986 | 74,080 |
Real estate - commercial | Retail properties | ' | ' |
Aged analysis of past due loans | ' | ' |
Current | 34,034 | 37,732 |
Nonaccrual | 3,144 | 10,532 |
Total Loans | 37,178 | 48,264 |
Real estate - commercial | Farm | ' | ' |
Aged analysis of past due loans | ' | ' |
Current | 16,419 | 23,372 |
Nonaccrual | ' | 2,517 |
Total Loans | 16,419 | 25,889 |
Real estate - construction | ' | ' |
Aged analysis of past due loans | ' | ' |
Total Loans | 29,351 | 42,167 |
Real estate - construction | Homebuilder | ' | ' |
Aged analysis of past due loans | ' | ' |
Current | 3,515 | 4,469 |
Nonaccrual | 168 | 1,855 |
Total Loans | 3,683 | 6,324 |
Real estate - construction | Land | ' | ' |
Aged analysis of past due loans | ' | ' |
Current | 4,436 | 2,747 |
Nonaccrual | 209 | 254 |
Total Loans | 4,645 | 3,001 |
Real estate - construction | Commercial speculative | ' | ' |
Aged analysis of past due loans | ' | ' |
Current | 11,235 | 10,755 |
Nonaccrual | 1,913 | 6,587 |
Total Loans | 13,148 | 17,342 |
Real estate - construction | All other | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 32 | 300 |
60-89 Days Past Due | ' | 215 |
90 Days or Greater Past Due | ' | 68 |
Total Past Due | 32 | 583 |
Current | 7,404 | 14,360 |
Nonaccrual | 439 | 557 |
Total Loans | 7,875 | 15,500 |
Recorded Investment 90 days or Greater Past Due and Accruing | ' | 68 |
Real estate - residential | ' | ' |
Aged analysis of past due loans | ' | ' |
Total Loans | 390,201 | 414,543 |
Real estate - residential | Investor | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 581 | 276 |
60-89 Days Past Due | 171 | 164 |
Total Past Due | 752 | 440 |
Current | 140,926 | 140,141 |
Nonaccrual | 6,615 | 9,910 |
Total Loans | 148,293 | 150,491 |
Real estate - residential | Owner occupied | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 4,414 | 3,151 |
60-89 Days Past Due | 308 | 375 |
90 Days or Greater Past Due | 87 | 21 |
Total Past Due | 4,809 | 3,547 |
Current | 106,184 | 110,735 |
Nonaccrual | 5,967 | 9,918 |
Total Loans | 116,960 | 124,200 |
Recorded Investment 90 days or Greater Past Due and Accruing | 87 | 21 |
Real estate - residential | Revolving and junior liens | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 650 | 888 |
60-89 Days Past Due | 76 | 203 |
Total Past Due | 726 | 1,091 |
Current | 121,013 | 134,990 |
Nonaccrual | 3,209 | 3,771 |
Total Loans | 124,948 | 139,852 |
Consumer | ' | ' |
Aged analysis of past due loans | ' | ' |
30-59 Days Past Due | 5 | 3 |
Total Past Due | 5 | 3 |
Current | 2,755 | 3,075 |
Nonaccrual | ' | 23 |
Total Loans | 2,760 | 3,101 |
All other | ' | ' |
Aged analysis of past due loans | ' | ' |
Current | 13,906 | 17,551 |
Total Loans | $13,906 | $17,551 |
Loans_Details_3
Loans (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Greater than | 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 | 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 | 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 | 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 - 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 | 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 - 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 | Homebuilder | Homebuilder | Commercial speculative | All other | All other | Investor | Investor | 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 | $1,101,256,000 | $1,150,050,000 | ' | $104,805,000 | $93,001,000 | $560,233,000 | $579,687,000 | $121,934,000 | $127,111,000 | $172,459,000 | $161,044,000 | $138,257,000 | $143,299,000 | $73,986,000 | $74,080,000 | $37,178,000 | $48,264,000 | $16,419,000 | $25,889,000 | $29,351,000 | $42,167,000 | $3,683,000 | $6,324,000 | $4,645,000 | $3,001,000 | $13,148,000 | $17,342,000 | $7,875,000 | $15,500,000 | $390,201,000 | $414,543,000 | $148,293,000 | $150,491,000 | $116,960,000 | $124,200,000 | $124,948,000 | $139,852,000 | $2,760,000 | $3,101,000 | $13,906,000 | $17,551,000 | $996,251,000 | $978,118,000 | $96,371,000 | $88,071,000 | $105,683,000 | $113,118,000 | $162,586,000 | $134,152,000 | $122,844,000 | $105,192,000 | $59,674,000 | $68,682,000 | $30,059,000 | $32,715,000 | $16,419,000 | $21,262,000 | $1,745,000 | $1,318,000 | $4,436,000 | $2,747,000 | $7,674,000 | $7,122,000 | $7,109,000 | $14,607,000 | $135,136,000 | $123,876,000 | $109,261,000 | $110,858,000 | $120,589,000 | $133,992,000 | $2,759,000 | $3,075,000 | $13,906,000 | $17,331,000 | $42,782,000 | $55,688,000 | $7,953,000 | $3,867,000 | $9,048,000 | $2,995,000 | $1,968,000 | $9,036,000 | $1,826,000 | $14,273,000 | $9,840,000 | $3,911,000 | $2,989,000 | $1,873,000 | $2,110,000 | $1,770,000 | $2,196,000 | $3,561,000 | $32,000 | $37,000 | $3,407,000 | $14,608,000 | $396,000 | $388,000 | $166,000 | $220,000 | $62,223,000 | $116,244,000 | $481,000 | $1,063,000 | $22,700,000 | $7,203,000 | $10,998,000 | $7,905,000 | $17,856,000 | $13,587,000 | $23,834,000 | $4,472,000 | $1,487,000 | $4,130,000 | $13,676,000 | $2,517,000 | $168,000 | $2,810,000 | $209,000 | $254,000 | $1,913,000 | $10,220,000 | $734,000 | $856,000 | $9,750,000 | $12,007,000 | $7,699,000 | $12,946,000 | $3,971,000 | $5,694,000 | $1,000 | $26,000 |
Loans_Details_4
Loans (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Recorded Investment | ' | ' |
With no related allowance recorded | $35,075 | $60,679 |
With an allowance recorded | 11,495 | 28,306 |
Total impaired loans | 46,570 | 88,985 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 42,799 | 77,940 |
With an allowance recorded | 13,996 | 36,433 |
Total impaired loans | 56,795 | 114,373 |
Related Allowance | ' | ' |
With an allowance recorded | 2,395 | 6,259 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 47,877 | 68,403 |
With an allowance recorded | 19,901 | 45,402 |
Total impaired loans | 67,778 | 113,805 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 390 | 642 |
With an allowance recorded | ' | 40 |
Total impaired loans | 390 | 682 |
Commercial | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 27 | 196 |
With an allowance recorded | ' | 566 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 34 | 229 |
With an allowance recorded | ' | 619 |
Related Allowance | ' | ' |
With an allowance recorded | ' | 458 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 112 | 354 |
With an allowance recorded | 283 | 610 |
Commercial real estate | Owner occupied general purpose | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 2,543 | 4,473 |
With an allowance recorded | 730 | 1,014 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 3,006 | 5,021 |
With an allowance recorded | 792 | 1,057 |
Related Allowance | ' | ' |
With an allowance recorded | 264 | 230 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 3,508 | 4,616 |
With an allowance recorded | 872 | 4,499 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 3 | ' |
Commercial real estate | Owner occupied special purpose | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 3,371 | 7,180 |
With an allowance recorded | 4,300 | 4,253 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 4,117 | 8,486 |
With an allowance recorded | 4,702 | 6,200 |
Related Allowance | ' | ' |
With an allowance recorded | 759 | 712 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 5,275 | 9,893 |
With an allowance recorded | 4,277 | 4,106 |
Commercial real estate | Non-owner occupied general purpose | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 5,428 | 14,356 |
With an allowance recorded | 939 | 2,779 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 6,709 | 17,381 |
With an allowance recorded | 1,030 | 3,906 |
Related Allowance | ' | ' |
With an allowance recorded | 129 | 204 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 9,892 | 11,329 |
With an allowance recorded | 1,859 | 5,588 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 75 | 270 |
Commercial real estate | Non-owner occupied special purpose | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 661 | 477 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 919 | 634 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 569 | 928 |
With an allowance recorded | ' | 217 |
Commercial real estate | Retail properties | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 3,144 | 8,780 |
With an allowance recorded | ' | 1,752 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 3,811 | 15,323 |
With an allowance recorded | ' | 1,812 |
Related Allowance | ' | ' |
With an allowance recorded | ' | 1,102 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 5,962 | 6,683 |
With an allowance recorded | 876 | 6,531 |
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 | 1,798 |
With an allowance recorded | ' | 248 |
Construction | Homebuilder | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 2,016 | 4,155 |
With an allowance recorded | 168 | 26 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 2,016 | 4,729 |
With an allowance recorded | 604 | 75 |
Related Allowance | ' | ' |
With an allowance recorded | 76 | 3 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 3,085 | 7,413 |
With an allowance recorded | 97 | 1,115 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 97 | 119 |
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 | 232 | 1,140 |
Construction | Commercial speculative | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 738 | 2,265 |
With an allowance recorded | 1,175 | 4,322 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 742 | 3,451 |
With an allowance recorded | 1,808 | 6,613 |
Related Allowance | ' | ' |
With an allowance recorded | 17 | 757 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 1,501 | 5,907 |
With an allowance recorded | 2,748 | 4,495 |
Construction | All other | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 4 | 78 |
With an allowance recorded | 436 | 479 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 35 | 168 |
With an allowance recorded | 468 | 649 |
Related Allowance | ' | ' |
With an allowance recorded | 262 | 353 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 41 | 2,193 |
With an allowance recorded | 458 | 430 |
Residential | Investor | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 5,984 | 5,168 |
With an allowance recorded | 684 | 4,742 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 8,338 | 6,979 |
With an allowance recorded | 913 | 5,954 |
Related Allowance | ' | ' |
With an allowance recorded | 160 | 477 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 5,576 | 4,075 |
With an allowance recorded | 2,713 | 8,514 |
Residential | Owner occupied | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 9,179 | 9,389 |
With an allowance recorded | 1,565 | 5,909 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 10,451 | 11,002 |
With an allowance recorded | 1,831 | 6,923 |
Related Allowance | ' | ' |
With an allowance recorded | 170 | 1,089 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 9,284 | 10,635 |
With an allowance recorded | 3,737 | 7,141 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 209 | 249 |
With an allowance recorded | ' | 40 |
Residential | Revolving and junior liens | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 1,771 | 1,368 |
With an allowance recorded | 1,498 | 2,464 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 2,313 | 1,689 |
With an allowance recorded | 1,848 | 2,625 |
Related Allowance | ' | ' |
With an allowance recorded | 558 | 874 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 1,570 | 1,428 |
With an allowance recorded | 1,981 | 1,908 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 6 | 4 |
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 | $11 | $11 |
Loans_Details_5
Loans (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
contract | contract | |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | 3 | 13 |
Pre-modification recorded investment | $801 | $6,613 |
Post-modification recorded investment | 623 | 5,182 |
TDR's defaulted | ' | ' |
# of contracts | 4 | 1 |
Pre-modification outstanding recorded investment during the period | 1,077 | 460 |
Real estate - commercial | Deferral | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | 1 | 3 |
Pre-modification recorded investment | 610 | 1,772 |
Post-modification recorded investment | 433 | 1,369 |
Real estate - commercial | Interest | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | ' | 1 |
Pre-modification recorded investment | ' | 2,921 |
Post-modification recorded investment | ' | 2,685 |
Real estate - commercial | Other | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | ' | 1 |
Pre-modification recorded investment | ' | 105 |
Post-modification recorded investment | ' | 102 |
Real estate - commercial | Owner occupied special purpose | ' | ' |
TDR's defaulted | ' | ' |
# of contracts | 1 | ' |
Pre-modification outstanding recorded investment during the period | 610 | ' |
Real estate - construction | Interest | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | ' | 1 |
Pre-modification recorded investment | ' | 460 |
Post-modification recorded investment | ' | 412 |
Real estate - construction | Commercial speculative | ' | ' |
TDR's defaulted | ' | ' |
# of contracts | ' | 1 |
Pre-modification outstanding recorded investment during the period | ' | 460 |
Real estate - residential | Investor | ' | ' |
TDR's defaulted | ' | ' |
# of contracts | 1 | ' |
Pre-modification outstanding recorded investment during the period | 155 | ' |
Real estate - residential | Investor | Other | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | 1 | 1 |
Pre-modification recorded investment | 54 | 174 |
Post-modification recorded investment | 54 | 174 |
Real estate - residential | Owner occupied | ' | ' |
TDR's defaulted | ' | ' |
# of contracts | 2 | ' |
Pre-modification outstanding recorded investment during the period | 312 | ' |
Real estate - residential | Owner occupied | Deferral | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | 1 | 2 |
Pre-modification recorded investment | 137 | 513 |
Post-modification recorded investment | 136 | 145 |
Real estate - residential | Owner occupied | Bifurcate | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | ' | 1 |
Pre-modification recorded investment | ' | 337 |
Post-modification recorded investment | ' | 87 |
Real estate - residential | Owner occupied | Other | ' | ' |
Troubled debt restructurings | ' | ' |
# of contracts modified during the period | ' | 2 |
Pre-modification recorded investment | ' | 214 |
Post-modification recorded investment | ' | 147 |
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 |
Loans_Details_6
Loans (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Loans to principal officers, directors, and their affiliates | ' | ' |
Beginning balance | $3,586 | $4,318 |
New loans | 27,616 | 13,486 |
Repayments and other reductions | -24,831 | -14,118 |
Change in related party status | 43 | -100 |
Ending balance | $6,414 | $3,586 |
Number of days past due, maximum | '90 days | ' |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | ' | ' |
Beginning Balance | $38,597 | $51,997 |
Charge-offs | 11,205 | 27,865 |
Recoveries | 8,439 | 8,181 |
Provision | -8,550 | 6,284 |
Ending Balance | 27,281 | 38,597 |
Ending balance: Individually evaluated for impairment | 2,395 | 6,259 |
Ending balance: Collectively evaluated for impairment | 24,886 | 32,338 |
Loans: | ' | ' |
Ending balance | 1,101,256 | 1,150,050 |
Ending balance: Individually evaluated for impairment | 46,570 | 88,985 |
Ending balance: Collectively evaluated for impairment | 1,054,686 | 1,061,065 |
Commercial | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning Balance | 4,517 | 5,070 |
Charge-offs | 316 | 344 |
Recoveries | 119 | 115 |
Provision | -2,070 | -324 |
Ending Balance | 2,250 | 4,517 |
Ending balance: Individually evaluated for impairment | ' | 458 |
Ending balance: Collectively evaluated for impairment | 2,250 | 4,059 |
Loans: | ' | ' |
Ending balance | 104,805 | 93,001 |
Ending balance: Individually evaluated for impairment | 27 | 762 |
Ending balance: Collectively evaluated for impairment | 104,778 | 92,239 |
Real Estate Commercial | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning Balance | 20,100 | 30,770 |
Charge-offs | 2,985 | 13,508 |
Recoveries | 5,325 | 3,576 |
Provision | -5,677 | -738 |
Ending Balance | 16,763 | 20,100 |
Ending balance: Individually evaluated for impairment | 1,152 | 2,248 |
Ending balance: Collectively evaluated for impairment | 15,611 | 17,852 |
Loans: | ' | ' |
Ending balance | 560,233 | 579,687 |
Ending balance: Individually evaluated for impairment | 21,116 | 47,581 |
Ending balance: Collectively evaluated for impairment | 539,117 | 532,106 |
Real Estate Commercial | Substandard high risk pool | ' | ' |
Allowance for loan losses: | ' | ' |
Ending Balance | 2,100 | 1,800 |
Loans: | ' | ' |
Ending balance | 17,200 | 22,700 |
Real Estate Construction | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning Balance | 3,837 | 7,937 |
Charge-offs | 1,014 | 4,969 |
Recoveries | 1,266 | 3,420 |
Provision | -2,109 | -2,551 |
Ending Balance | 1,980 | 3,837 |
Ending balance: Individually evaluated for impairment | 355 | 1,113 |
Ending balance: Collectively evaluated for impairment | 1,625 | 2,724 |
Loans: | ' | ' |
Ending balance | 29,351 | 42,167 |
Ending balance: Individually evaluated for impairment | 4,746 | 11,579 |
Ending balance: Collectively evaluated for impairment | 24,605 | 30,588 |
Real Estate Residential | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning Balance | 4,535 | 6,335 |
Charge-offs | 6,293 | 8,406 |
Recoveries | 1,221 | 583 |
Provision | 3,374 | 6,023 |
Ending Balance | 2,837 | 4,535 |
Ending balance: Individually evaluated for impairment | 888 | 2,440 |
Ending balance: Collectively evaluated for impairment | 1,949 | 2,095 |
Loans: | ' | ' |
Ending balance | 390,201 | 414,543 |
Ending balance: Individually evaluated for impairment | 20,681 | 29,040 |
Ending balance: Collectively evaluated for impairment | 369,520 | 385,503 |
Consumer | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning Balance | 1,178 | 884 |
Charge-offs | 597 | 638 |
Recoveries | 508 | 487 |
Provision | 350 | 445 |
Ending Balance | 1,439 | 1,178 |
Ending balance: Collectively evaluated for impairment | 1,439 | 1,178 |
Loans: | ' | ' |
Ending balance | 2,760 | 3,101 |
Ending balance: Individually evaluated for impairment | ' | 23 |
Ending balance: Collectively evaluated for impairment | 2,760 | 3,078 |
Unallocated | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning Balance | 4,430 | 1,001 |
Provision | -2,418 | 3,429 |
Ending Balance | 2,012 | 4,430 |
Ending balance: Collectively evaluated for impairment | 2,012 | 4,430 |
Loans: | ' | ' |
Ending balance | 13,906 | 17,551 |
Ending balance: Collectively evaluated for impairment | $13,906 | $17,551 |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Activity in the other real estate owned (OREO) portfolio, net of valuation reserve | ' | ' |
Beginning balance | $72,423 | $93,290 |
Property additions | 19,194 | 32,121 |
Development improvements | 73 | 701 |
Less: Property Disposals, net of gains/losses | 41,712 | 36,854 |
Less: Period valuation adjustments | 8,441 | 16,835 |
Other real estate owned | 41,537 | 72,423 |
Activity in the valuation allowance | ' | ' |
Balance at beginning of year | 31,454 | 23,462 |
Provision for unrealized losses | 8,293 | 16,385 |
Reduction taken on sales | -17,389 | -8,843 |
Other adjustments | -74 | 450 |
Balance at end of year | 22,284 | 31,454 |
Expenses related to foreclosed assets, net of lease revenue | ' | ' |
Gain on sales, net | -1,956 | -2,198 |
Provision for unrealized losses | 8,293 | 16,385 |
Operating expenses | 5,705 | 7,973 |
Less: Lease revenue | 1,295 | 3,497 |
Expenses related to foreclosed assets, net of lease revenue | $10,747 | $18,663 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Premises and equipment | ' | ' |
Cost | $103,370 | $101,988 |
Accumulated Depreciation/Amortization | 57,365 | 54,986 |
Net Book Value | 46,005 | 47,002 |
Land | ' | ' |
Premises and equipment | ' | ' |
Cost | 17,474 | 17,474 |
Net Book Value | 17,474 | 17,474 |
Buildings | ' | ' |
Premises and equipment | ' | ' |
Cost | 45,903 | 45,759 |
Accumulated Depreciation/Amortization | 20,714 | 19,574 |
Net Book Value | 25,189 | 26,185 |
Leasehold improvements | ' | ' |
Premises and equipment | ' | ' |
Cost | 74 | 74 |
Accumulated Depreciation/Amortization | 72 | 72 |
Net Book Value | 2 | 2 |
Furniture and equipment | ' | ' |
Premises and equipment | ' | ' |
Cost | 39,919 | 38,681 |
Accumulated Depreciation/Amortization | 36,579 | 35,340 |
Net Book Value | $3,340 | $3,341 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits | ' | ' |
Noninterest bearing demand | $373,389,000 | $379,451,000 |
Savings | 228,589,000 | 216,305,000 |
NOW accounts | 297,852,000 | 286,860,000 |
Money market accounts | 309,859,000 | 323,811,000 |
Certificates of deposit of less than $100,000 | 288,345,000 | 318,844,000 |
Certificates of deposit of $100,000 or more | 184,094,000 | 191,948,000 |
Total deposits | 1,682,128,000 | 1,717,219,000 |
Brokered certificates of deposit | 0 | 0 |
Deposits held by senior officers and directors, including their related interests | 3,400,000 | 2,100,000 |
Scheduled maturities of time deposits | ' | ' |
2014 | 313,231,000 | ' |
2015 | 87,359,000 | ' |
2016 | 24,082,000 | ' |
2017 | 15,066,000 | ' |
2018 | 32,701,000 | ' |
Total | 472,439,000 | 510,792,000 |
Amount and maturities of deposits of $100,000 or more | ' | ' |
3 months or less | 24,415,000 | 20,701,000 |
Over 3 months through 6 months | 21,137,000 | 15,594,000 |
Over 6 months through 12 months | 77,718,000 | 52,609,000 |
Over 12 months | 60,824,000 | 103,044,000 |
Total | $184,094,000 | $191,948,000 |
Borrowings_Details
Borrowings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 |
Securities sold under agreement to repurchase agreement | Securities sold under agreement to repurchase agreement | Securities sold under agreement to repurchase agreement | Securities sold under agreement to repurchase agreement | FHLBC advances | FHLBC advances | Subordinated debt | Subordinated debt | Subordinated debt | Notes payable and other borrowings | Notes payable and other borrowings | Credit facility | Credit facility | Senior debt facility | Senior debt facility | Senior debt facility | Senior debt facility | Term debt | Term debt | Term debt | Term debt | Junior subordinated debentures | Junior subordinated debentures | |||
item | Minimum | Maximum | item | item | LIBOR | Prime rate | |||||||||||||||||||
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total borrowings | $131,438,000 | $221,753,000 | $22,560,000 | $17,875,000 | ' | ' | $5,000,000 | $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 | ' | ' | 22,600,000 | 17,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of the pledged collateral | ' | ' | 39,200,000 | 26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers having secured balances exceeding specified percentage of stockholders equity | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold percentage of stockholders' equity | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional information related to repurchase agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average daily balance during the year | ' | ' | 23,313,000 | 4,826,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate during the year (as a percent) | ' | ' | 0.01% | 0.04% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum month-end balance during the year | ' | ' | 30,510,000 | 17,875,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate at year-end (as a percent) | ' | ' | 0.01% | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings at FHLBC as percentage of total assets | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings at FHLBC as percentage of book value of certain mortgage loans | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances taken on FHLBC stock | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bank owned FHLBC stock | 5,500,000 | 6,400,000 | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,500,000 | ' | ' | 30,500,000 | ' | ' | ' | ' | ' | 500,000 | ' | ' |
Face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' |
Borrowings_Details_2
Borrowings (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Scheduled maturities and weighted average rates of borrowings | ' | ' |
Year one | $27,560 | $117,875 |
Year five | 45,500 | ' |
Thereafter | 58,378 | 103,878 |
Total | $131,438 | $221,753 |
Weighted Average Rate | ' | ' |
Year one (as a percent) | 0.02% | 0.12% |
Year five (as a percent) | 1.76% | ' |
Thereafter (as a percent) | 7.35% | 4.95% |
Total (as a percent) | 3.88% | 2.38% |
Junior_Subordinated_Debentures1
Junior Subordinated Debentures (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2003 | Jun. 30, 2003 | Dec. 31, 2013 | Apr. 30, 2007 | Dec. 31, 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% |
Basis points added to cash distribution floating rate base (as a percent) | ' | ' | ' | ' | 1.50% |
Issue of subordinated debentures to the trust in return for the aggregate net proceeds of the trust preferred offering | ' | ' | $32.60 | ' | ' |
Cash distribution, floating rate base | ' | ' | ' | ' | 'three-month LIBOR |
Junior_Subordinated_Debentures2
Junior Subordinated Debentures (Details 2) (Junior subordinated debentures, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | 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 | 17 | 11.7 | ' |
Old Second Capital Trust II | ' | ' | ' |
Junior subordinated debentures | ' | ' | ' |
Amount issued to trust | $25.80 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Components of income tax expense (benefit) | ' | ' |
Current federal | $105 | ' |
Current state | 29 | ' |
Deferred federal | 2,780 | -302 |
Deferred state | 989 | -436 |
Change in valuation allowance | -74,145 | 738 |
Income tax expense (benefit) | -70,242 | ' |
Deferred tax assets | ' | ' |
Allowance for loan losses | 12,725 | 18,236 |
Deferred compensation | 788 | 679 |
Amortization of core deposit asset | 1,656 | 965 |
Goodwill amortization/impairment | 15,252 | 16,796 |
Stock option expense | 583 | 785 |
OREO write downs | 10,041 | 16,632 |
Federal net operating loss ("NOL") carryforward | 28,023 | 20,736 |
State net operating loss ("NOL") carryforward | 11,847 | 10,186 |
Deferred tax credit | 1,444 | 1,444 |
Other assets | 1,166 | 585 |
Total deferred tax assets | 83,525 | 87,044 |
Deferred tax liabilities | ' | ' |
Accumulated depreciation on premises and equipment | -1,035 | -1,063 |
Accretion on securities | -8 | -122 |
Mortgage servicing rights | -2,571 | -1,819 |
State tax benefits | -6,994 | -7,315 |
Other liabilities | -178 | -217 |
Total deferred tax liabilities | -10,786 | -10,536 |
Net deferred tax asset before valuation allowance | 72,739 | 76,508 |
Tax benefit on net unrealized losses on securities | 4,927 | 928 |
Valuation Allowance | -2,363 | -76,508 |
Net deferred tax asset | $75,303 | $928 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 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 | 80.1 |
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 | 14.8 |
State | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 124.7 |
State | 2021 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | 29.4 |
State | 2025 | ' |
Net operating loss carryforward | ' |
Net operating loss carryforward | $95.30 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Components of the provision for deferred income taxes | ' | ' |
Provision for loan losses | $5,511,000 | $6,125,000 |
Deferred compensation | -109,000 | -51,000 |
Amortization of core deposit asset | -691,000 | -382,000 |
Stock option expense | 202,000 | 326,000 |
OREO write downs | 6,591,000 | -6,538,000 |
Federal net operating loss carryforward | -7,287,000 | -926,000 |
State net operating loss carryforward | -1,661,000 | -446,000 |
Depreciation | -28,000 | -202,000 |
Net premiums and discounts on securities | -114,000 | 85,000 |
Mortgage servicing rights | 752,000 | 281,000 |
Goodwill amortization/impairment | 1,544,000 | 1,526,000 |
State tax benefits | -321,000 | 114,000 |
Change in valuation allowance | -74,145,000 | 738,000 |
Other, net | -620,000 | -650,000 |
Total deferred tax benefit | -70,376,000 | ' |
Difference between effective tax rates and federal statutory rates applied to financial statement income | ' | ' |
Tax at statutory federal income tax rate | 4,145,000 | -25,000 |
Nontaxable interest income, net of disallowed interest deduction | -245,000 | -192,000 |
BOLI income | -694,000 | -563,000 |
State income taxes, net of federal benefit | 662,000 | -53,000 |
Change in valuation allowance | -74,145,000 | 738,000 |
Deficiency from Restricted Stock | 10,000 | 299,000 |
Other, net | 25,000 | -204,000 |
Income tax expense (benefit) | -70,242,000 | ' |
Income (loss) before income taxes | 11,843,000 | -72,000 |
Current income tax expense | 134,000 | ' |
Deferred income tax expense offset by reversal of deferred tax valuation allowance reserve | 3,800,000 | ' |
Reversal of deferred tax valuation allowance reserve | $74,100,000 | ' |
LongTerm_Incentive_Plan_Detail
Long-Term Incentive Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Long-Term Incentive Plan | ' | ' |
Number of shares authorized | 1,908,332 | ' |
Number of shares issuable | 45,368 | ' |
Total compensation cost | $167,000 | $291,000 |
Stock options | ' | ' |
Long-Term Incentive Plan | ' | ' |
Term of stock options granted | '10 years | ' |
Period of which historical volatilities of the Company's common stock are used for calculation of expected volatilities | '5 years | ' |
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) | -8,000 | ' |
Expired (in shares) | -76,000 | ' |
Balance outstanding at the end of the period (in shares) | 325,500 | 409,500 |
Exercisable at end of period (in shares) | 325,500 | ' |
Weighted Average Exercise Price | ' | ' |
Balance outstanding at the beginning of the period (in dollars per share) | $28.75 | ' |
Canceled (in dollars per share) | $30.81 | ' |
Expired (in dollars per share) | $25.08 | ' |
Balance outstanding at the end of the period (in dollars per share) | $29.56 | $28.75 |
Exercisable at end of period (in dollars per share) | $29.56 | ' |
Weighted Average Remaining Contractual Term (years) | ' | ' |
Balance outstanding at the end of the period | '2 years 6 months | ' |
Exercisable at end of period | '2 years 6 months | ' |
Restricted stock and restricted stock units | ' | ' |
Long-Term Incentive Plan | ' | ' |
Vesting period | '3 years | ' |
Nonvested shares of restricted shares rights | ' | ' |
Nonvested at the beginning of the period (in shares) | 327,920 | ' |
Granted (in shares) | 155,500 | 60,000 |
Vested (in shares) | -241,920 | -144,976 |
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 | 327,920 |
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 | $2.21 |
Total unrecognized compensation cost of restricted awards | $342,000 | ' |
Expected weighted-average period for recognition of unrecognized compensation | '2 years 2 months 19 days | ' |
Restricted awards | ' | ' |
Nonvested shares of restricted shares rights | ' | ' |
Granted (in shares) | 0 | ' |
Restricted stock units | ' | ' |
Nonvested shares of restricted shares rights | ' | ' |
Granted (in shares) | ' | 0 |
Earnings_Loss_per_Share_Detail
Earnings (Loss) per Share (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings (loss) per share: | ' | ' |
Weighted-average common shares outstanding | 13,939,919 | 14,074,188 |
Weighted-average common shares less stock based awards | 13,896,893 | 13,876,129 |
Weighted-average common shares stock based awards | 209,140 | 331,123 |
Net earnings (loss) from operations | $82,085 | ($72) |
Dividends on preferred shares | 5,258 | 4,987 |
Net earnings (loss) available to common stockholders | 76,827 | -5,059 |
Undistributed earnings (loss) | 76,827 | -5,059 |
Basic earnings (loss) per share common undistributed earnings (loss) (in dollars per share) | $5.45 | ($0.36) |
Basic earnings (loss) per share of common stock (in dollars per share) | $5.45 | ($0.36) |
Diluted earnings (loss) per share: | ' | ' |
Weighted-average common shares outstanding | 13,939,919 | 14,074,188 |
Diluted average common shares outstanding | 14,106,033 | 14,207,252 |
Net earnings (loss) available to common stockholders | $76,827 | ($5,059) |
Diluted earnings (loss) per share (in dollars per share) | $5.45 | ($0.36) |
Restricted awards | ' | ' |
Diluted earnings (loss) per share: | ' | ' |
Dilutive effect of nonvested restricted awards (in shares) | 166,114 | 133,064 |
Stock options | ' | ' |
Diluted earnings (loss) per share: | ' | ' |
Number of antidilutive options excluded from the diluted earnings (loss) per share calculation (in shares) | 1,140,839 | 1,224,839 |
Common stock warrants | ' | ' |
Diluted earnings (loss) per share: | ' | ' |
Number of antidilutive options excluded from the diluted earnings (loss) per share calculation (in shares) | 815,339 | 815,339 |
Commitments_Details
Commitments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fixed | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | $1,590 | $1,875 |
Fixed | Borrower | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 1,590 | 1,635 |
Fixed | Borrower | Financial standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 10 | 5 |
Fixed | Borrower | Performance standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 1,580 | 1,630 |
Fixed | Nonborrower | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | ' | 240 |
Fixed | Nonborrower | Performance standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | ' | 240 |
Fixed | Unused loan commitments | ' | ' |
Financial instrument commitments | ' | ' |
Loan commitments | 60,681 | 58,330 |
Variable | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 7,527 | 8,771 |
Variable | Borrower | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 6,660 | 7,646 |
Variable | Borrower | Financial standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 3,886 | 3,378 |
Variable | Borrower | Commercial standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 51 | 51 |
Variable | Borrower | Performance standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 2,723 | 4,217 |
Variable | Nonborrower | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 867 | 1,125 |
Variable | Nonborrower | Performance standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 867 | 1,125 |
Variable | Unused loan commitments | ' | ' |
Financial instrument commitments | ' | ' |
Loan commitments | 185,581 | 195,290 |
Total | Commitments to extend credit | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 9,117 | 10,646 |
Total | Borrower | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 8,250 | 9,281 |
Total | Borrower | Financial standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 3,896 | 3,383 |
Total | Borrower | Commercial standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 51 | 51 |
Total | Borrower | Performance standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 4,303 | 5,847 |
Total | Nonborrower | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 867 | 1,365 |
Total | Nonborrower | Performance standby | ' | ' |
Financial instrument commitments | ' | ' |
Financial instrument commitments | 867 | 1,365 |
Total | Unused loan commitments | ' | ' |
Financial instrument commitments | ' | ' |
Loan commitments | $246,262 | $253,620 |
Commitments_Details_2
Commitments (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Estimated aggregate minimum annual rental commitments | ' | ' |
2014 | $129,000 | ' |
2015 | 112,000 | ' |
2016 | 67,000 | ' |
2017 and beyond | 9,000 | ' |
Aggregate future minimum rental income receivable under noncancelable leases | 291,000 | ' |
Total facility net operating lease revenue/expense | 64,000 | 50,000 |
Total ATM lease expense | $830,000 | $941,000 |
Regulatory_Capital_Matters_Det
Regulatory & Capital Matters (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Series B Preferred Stock | Minimum | OCC Consent Order Plan | Bank of America credit facility, subordinated debt | Bank of America credit facility, subordinated debt | Junior subordinated debentures | Junior subordinated debentures | Old Second Bank | Old Second Bank | |||
Minimum | businesstrust | Maximum | |||||||||
Q | |||||||||||
Regulatory & Capital Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital leverage ratio (as a percent) | 6.96% | 4.85% | ' | 8.00% | 8.75% | ' | ' | ' | ' | 10.97% | 9.67% |
Risk-based capital ratio (as a percent) | 15.88% | 13.62% | ' | 12.00% | 11.25% | ' | ' | ' | ' | 18.04% | 14.86% |
Tier One leverage ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.30% | ' |
Actual over target Tier One leverage ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.97% | ' |
Risk-based capital ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.18% | ' |
Actual over target risk-based capital ratio, basis point increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.04% | ' |
Total capital to risk weighted assets, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual at period end | $200,139,000 | $189,465,000 | ' | ' | ' | ' | ' | ' | ' | $227,467,000 | $206,496,000 |
Minimum Required for Capital Adequacy Purposes | 100,826,000 | 111,286,000 | ' | ' | ' | ' | ' | ' | ' | 100,872,000 | 111,169,000 |
Minimum Required to Be Well Capitalized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 126,090,000 | 138,961,000 |
Total capital to risk weighted assets, Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-based capital ratio (as a percent) | 15.88% | 13.62% | ' | 12.00% | 11.25% | ' | ' | ' | ' | 18.04% | 14.86% |
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 | 134,199,000 | 94,816,000 | ' | ' | ' | ' | ' | ' | ' | 211,568,000 | 188,873,000 |
Minimum Required for Capital Adequacy Purposes | 50,403,000 | 55,692,000 | ' | ' | ' | ' | ' | ' | ' | 50,433,000 | 55,592,000 |
Minimum Required to Be Well Capitalized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,650,000 | 83,388,000 |
Tier 1 capital to risk weighted assets, Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual (as a percent) | 10.65% | 6.81% | ' | ' | ' | ' | ' | ' | ' | 16.78% | 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 | 134,199,000 | 94,816,000 | ' | ' | ' | ' | ' | ' | ' | 211,568,000 | 188,873,000 |
Minimum Required for Capital Adequacy Purposes | 77,126,000 | 78,199,000 | ' | ' | ' | ' | ' | ' | ' | 77,144,000 | 78,127,000 |
Minimum Required to Be Well Capitalized | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96,430,000 | 97,659,000 |
Tier 1 capital to average assets, Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital leverage ratio (as a percent) | 6.96% | 4.85% | ' | 8.00% | 8.75% | ' | ' | ' | ' | 10.97% | 9.67% |
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 | ' | ' | ' | ' | ' | 51,600,000 | 24,600,000 | ' | ' | ' | ' |
Trust preferred proceeds qualified as Tier 2 regulatory capital | ' | ' | ' | ' | ' | 5,000,000 | 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 | ' | ' | ' |
Interest payment per year, approximate | ' | ' | ' | ' | ' | ' | ' | 5,300,000 | ' | ' | ' |
Number of quarterly periods for deferral of interest | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' |
Total amount of deferred and unpaid interest | ' | ' | ' | ' | ' | ' | ' | 17,000,000 | ' | ' | ' |
Deferred preferred stock dividends | ' | ' | $13,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage_Banking_Derivatives_D
Mortgage Banking Derivatives (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Mortgage banking derivative | ' | ' |
Amount of loans sold to investors | $185,400,000 | ' |
Proceeds from sale of loan to investors | 191,019,000 | 303,561,000 |
Gain on sale of loan | 5,627,000 | 10,688,000 |
Investor concentration risk | ' | ' |
Mortgage banking derivative | ' | ' |
Percentage of concentration risk | 10.00% | ' |
Federal National Mortgage Association | ' | ' |
Mortgage banking derivative | ' | ' |
Amount of loans sold to investors | 126,300,000 | ' |
Federal National Mortgage Association | Investor concentration risk | ' | ' |
Mortgage banking derivative | ' | ' |
Percentage of concentration risk | 68.20% | ' |
Wells Fargo | ' | ' |
Mortgage banking derivative | ' | ' |
Amount of loans sold to investors | 29,300,000 | ' |
Wells Fargo | Investor concentration risk | ' | ' |
Mortgage banking derivative | ' | ' |
Percentage of concentration risk | 15.80% | ' |
Federal Home Loan Mortgage Corp. | ' | ' |
Mortgage banking derivative | ' | ' |
Amount of loans sold to investors | 18,900,000 | ' |
Federal Home Loan Mortgage Corp. | Investor concentration risk | ' | ' |
Mortgage banking derivative | ' | ' |
Percentage of concentration risk | 10.20% | ' |
Not designated as hedging instruments | Forward contracts | ' | ' |
Mortgage banking derivative | ' | ' |
Notional or Contractual Amount | 11,500,000 | 28,000,000 |
Fair value | 178,000 | 1,393,000 |
Change in fair value | 126,000 | -85,000 |
Not designated as hedging instruments | Rate lock commitments | ' | ' |
Mortgage banking derivative | ' | ' |
Notional or Contractual Amount | 9,178,000 | 20,855,000 |
Fair value | 504,000 | 1,488,000 |
Change in fair value | 189,000 | 652,000 |
Designated as hedging instruments | ' | ' |
Mortgage banking derivative | ' | ' |
Change in fair value | $315,000 | $567,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements | ' | ' |
Significant transfers between levels | $0 | $0 |
Assets: | ' | ' |
Investment securities available-for-sale | 372,191 | 579,886 |
Mortgage servicing rights | 5,807 | 4,116 |
U.S. Treasury | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,544 | 1,507 |
U.S. government agencies | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,672 | 49,850 |
U.S. government agency mortgage-backed | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | ' | 128,738 |
States and political subdivisions | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 16,794 | 15,855 |
Corporate bonds | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 15,102 | 36,886 |
Collateralized mortgage obligations | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 63,876 | 169,600 |
Asset-backed securities | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 273,203 | 167,493 |
CDOs | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | ' | 9,957 |
Level 1 | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,544 | 1,507 |
Level 2 | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 216,385 | 568,290 |
Loans held-for-sale | 3,822 | 9,571 |
Level 3 | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 154,262 | 10,089 |
Recurring basis | Level 1 | ' | ' |
Assets: | ' | ' |
Total financial assets | 1,544 | 1,507 |
Recurring basis | Level 1 | U.S. Treasury | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,544 | 1,507 |
Recurring basis | Level 2 | ' | ' |
Assets: | ' | ' |
Loans held-for-sale | 3,822 | 9,571 |
Total financial assets | 220,751 | 579,777 |
Liabilities: | ' | ' |
Liabilities at fair value | 229 | 1,354 |
Recurring basis | Level 2 | Interest rate swap agreements net of swap credit valuation | ' | ' |
Assets: | ' | ' |
Other assets | 229 | 1,349 |
Liabilities: | ' | ' |
Other liabilities | 229 | 1,349 |
Recurring basis | Level 2 | Mortgage banking derivatives | ' | ' |
Assets: | ' | ' |
Other assets | 315 | 567 |
Recurring basis | Level 2 | Interest rate lock commitments to borrowers | ' | ' |
Liabilities: | ' | ' |
Other liabilities | ' | 5 |
Recurring basis | Level 2 | U.S. government agencies | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,672 | 49,850 |
Recurring basis | Level 2 | U.S. government agency mortgage-backed | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | ' | 128,738 |
Recurring basis | Level 2 | States and political subdivisions | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 16,669 | 15,723 |
Recurring basis | Level 2 | Corporate bonds | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 15,102 | 36,886 |
Recurring basis | Level 2 | Collateralized mortgage obligations | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 63,876 | 169,600 |
Recurring basis | Level 2 | Asset-backed securities | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 119,066 | 167,493 |
Recurring basis | Level 3 | ' | ' |
Assets: | ' | ' |
Mortgage servicing rights | 5,807 | 4,116 |
Total financial assets | 160,063 | 14,158 |
Recurring basis | Level 3 | Interest rate swap agreements net of swap credit valuation | ' | ' |
Assets: | ' | ' |
Other assets | -6 | -47 |
Recurring basis | Level 3 | States and political subdivisions | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 125 | 132 |
Recurring basis | Level 3 | Asset-backed securities | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 154,137 | ' |
Recurring basis | Level 3 | CDOs | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | ' | 9,957 |
Recurring basis | Total | ' | ' |
Assets: | ' | ' |
Loans held-for-sale | 3,822 | 9,571 |
Mortgage servicing rights | 5,807 | 4,116 |
Total financial assets | 382,358 | 595,442 |
Liabilities: | ' | ' |
Liabilities at fair value | 229 | 1,354 |
Recurring basis | Total | Interest rate swap agreements net of swap credit valuation | ' | ' |
Assets: | ' | ' |
Other assets | 223 | 1,302 |
Liabilities: | ' | ' |
Other liabilities | 229 | 1,349 |
Recurring basis | Total | Mortgage banking derivatives | ' | ' |
Assets: | ' | ' |
Other assets | 315 | 567 |
Recurring basis | Total | Interest rate lock commitments to borrowers | ' | ' |
Liabilities: | ' | ' |
Other liabilities | ' | 5 |
Recurring basis | Total | U.S. Treasury | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,544 | 1,507 |
Recurring basis | Total | U.S. government agencies | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 1,672 | 49,850 |
Recurring basis | Total | U.S. government agency mortgage-backed | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | ' | 128,738 |
Recurring basis | Total | States and political subdivisions | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 16,794 | 15,855 |
Recurring basis | Total | Corporate bonds | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 15,102 | 36,886 |
Recurring basis | Total | Collateralized mortgage obligations | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 63,876 | 169,600 |
Recurring basis | Total | Asset-backed securities | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | 273,203 | 167,493 |
Recurring basis | Total | CDOs | ' | ' |
Assets: | ' | ' |
Investment securities available-for-sale | ' | $9,957 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest rate swap valuation | ' | ' |
Changes in Level 3 | ' | ' |
Balance at the beginning of the period | ($47) | ($80) |
Total gains or losses | ' | ' |
Included in earnings (or changes in net assets) | 41 | 33 |
Purchases, issuances, sales, and settlements | ' | ' |
Balance at the end of the period | -6 | -47 |
CDOs | ' | ' |
Changes in Level 3 | ' | ' |
Balance at the beginning of the period | 9,957 | 9,974 |
Total gains or losses | ' | ' |
Included in earnings (or changes in net assets) | -3,903 | 172 |
Included in other comprehensive income | 7,984 | -66 |
Purchases, issuances, sales, and settlements | ' | ' |
Settlements | -1,016 | -123 |
Sales | -13,022 | ' |
Balance at the end of the period | ' | 9,957 |
Asset-backed securities | ' | ' |
Total gains or losses | ' | ' |
Included in earnings (or changes in net assets) | 808 | ' |
Included in other comprehensive income | 1,414 | ' |
Purchases, issuances, sales, and settlements | ' | ' |
Purchases | 172,454 | ' |
Sales | -20,539 | ' |
Balance at the end of the period | 154,137 | ' |
States and political subdivisions | ' | ' |
Changes in Level 3 | ' | ' |
Balance at the beginning of the period | 132 | 138 |
Purchases, issuances, sales, and settlements | ' | ' |
Settlements | -7 | -6 |
Balance at the end of the period | 125 | 132 |
Mortgage servicing rights | ' | ' |
Changes in Level 3 | ' | ' |
Balance at the beginning of the period | 4,116 | 3,487 |
Total gains or losses | ' | ' |
Included in earnings (or changes in net assets) | 260 | -1,575 |
Purchases, issuances, sales, and settlements | ' | ' |
Issuances | 1,431 | 2,204 |
Balance at the end of the period | $5,807 | $4,116 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 372,191 | 579,886 |
Mortgage servicing rights, fair value | 5,807 | 4,116 |
Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 154,262 | 10,089 |
Collateralized Debt Obligations | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | ' | 9,957 |
Asset-backed securities | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 273,203 | 167,493 |
States and political subdivisions | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 16,794 | 15,855 |
Recurring basis | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Mortgage servicing rights, fair value | 5,807 | 4,116 |
Recurring basis | Interest Rate Swap Valuation | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Interest rate swap valuation, fair value | -6 | -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) | 12.50% | 17.90% |
Recurring basis | Collateralized Debt Obligations | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | ' | 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 |
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) | ' | 6.00% |
Prepayment speed (as a percent) | ' | 0.00% |
Credit risk rating & probability of default (as a percent) | ' | 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) | ' | 7.00% |
Prepayment speed (as a percent) | ' | 76.00% |
Credit risk rating & probability of default (as a percent) | ' | 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) | ' | 6.40% |
Prepayment speed (as a percent) | ' | 16.40% |
Credit risk rating & probability of default (as a percent) | ' | 19.10% |
Recurring basis | Mortgage Servicing rights | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Mortgage servicing rights, fair value | 5,807 | 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) | 10.20% | 10.50% |
Prepayment speed (as a percent) | 9.70% | 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) | 10.20% | 10.50% |
Prepayment speed (as a percent) | 9.70% | 15.80% |
Recurring basis | Asset-backed securities | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 154,137 | ' |
Asset-backed securities | 154,137 | ' |
Recurring basis | Asset-backed securities | Discounted Cash Flow | Weighted Average of Inputs | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Liquidity Discount (as a percent) | 4.90% | ' |
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) | 1.10% | ' |
Liquidity Discount (as a percent) | 4.50% | ' |
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% | ' |
Liquidity Discount (as a percent) | 5.10% | ' |
Recurring basis | Asset-backed securities | Discounted Cash Flow | Level 3 | Weighted Average of Inputs | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Credit risk premium (as a percent) | 1.20% | ' |
Recurring basis | States and political subdivisions | Level 3 | ' | ' |
Quantitative information about Level 3 fair value measurements | ' | ' |
Securities available-for-sale | 125 | 132 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assets and liabilities measured at fair value | ' | ' | ' |
Valuation allowance | $2,395,000 | $6,259,000 | ' |
Carrying value of loans fully charged-off | 0 | 0 | ' |
Carrying value of other real estate owned | 41,537,000 | 72,423,000 | 93,290,000 |
OREO Valuation allowance | 22,284,000 | 31,454,000 | 23,462,000 |
OREO charge to expense | 8,441,000 | 16,835,000 | ' |
Nonrecurring basis | Impaired loans | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Valuation allowance | 2,400,000 | 6,300,000 | ' |
Decrease of specific allocations within the provision for loan losses | 3,900,000 | 6,800,000 | ' |
Nonrecurring basis | Impaired loans | Carrying Amount | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | 11,500,000 | 27,800,000 | ' |
Nonrecurring basis | Other real estate owned, net | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Carrying value of other real estate owned | 41,500,000 | 72,400,000 | ' |
Outstanding balance | 65,900,000 | 109,700,000 | ' |
OREO Valuation allowance | 22,300,000 | 31,400,000 | ' |
OREO participations | 2,100,000 | 5,900,000 | ' |
OREO charge to expense | 8,300,000 | 16,400,000 | ' |
Nonrecurring basis | Level 3 | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | 50,640,000 | 93,966,000 | ' |
Nonrecurring basis | Level 3 | Impaired loans | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | 9,103,000 | 21,543,000 | ' |
Nonrecurring basis | Level 3 | Other real estate owned, net | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | 41,537,000 | 72,423,000 | ' |
Nonrecurring basis | Total | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | 50,640,000 | 93,966,000 | ' |
Nonrecurring basis | Total | Impaired loans | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | 9,103,000 | 21,543,000 | ' |
Nonrecurring basis | Total | Other real estate owned, net | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
Total | $41,537,000 | $72,423,000 | ' |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Asset Derivatives, Fair Value | $538,000 | $1,869,000 |
Liability Derivatives, Fair Value | 229,000 | 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 | 3,100,000 | 7,400,000 |
Investment securities pledged with financial institutions, number | 3 | ' |
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 6 months | '1 year 3 months 18 days |
Notional or Contractual Amount | 51,877,000 | 82,097,000 |
Asset Derivatives, Fair Value | 223,000 | 1,302,000 |
Liability Derivatives, Fair Value | 229,000 | 1,349,000 |
Commitments | Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Notional or Contractual Amount | 206,965,000 | 226,135,000 |
Asset Derivatives, Fair Value | 315,000 | 567,000 |
Forward contracts | Not designated as hedging instruments | ' | ' |
Financial Instruments with Off-Balance Sheet Risk and Derivative Transactions | ' | ' |
Notional or Contractual Amount | 11,500,000 | 28,000,000 |
Liability Derivatives, Fair Value | ' | $5,000 |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Cash and due from banks | $33,210 | $44,221 |
Interest bearing deposits with financial institutions | 14,450 | 84,286 |
Securities available-for-sale | 372,191 | 579,886 |
Securities held-to-maturity | 256,571 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,410 | 54,203 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,389 | 379,451 |
Other short-term borrowings | 5,000 | 100,000 |
Junior subordinated debentures | 58,378 | 58,378 |
Level 1 | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 33,210 | 44,221 |
Interest bearing deposits with financial institutions | 14,450 | 84,286 |
Securities available-for-sale | 1,544 | 1,507 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,389 | 379,451 |
Junior subordinated debentures | 39,777 | 22,725 |
Borrowing interest payable | 10,122 | 6,946 |
Level 2 | ' | ' |
Financial assets: | ' | ' |
Securities available-for-sale | 216,385 | 568,290 |
Securities held-to-maturity | 254,328 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,410 | 54,203 |
Loans held for sale | 3,822 | 9,571 |
Accrued interest receivable | 4,248 | 5,252 |
Financial liabilities: | ' | ' |
Interest bearing deposits | 1,312,476 | 1,347,603 |
Securities sold under repurchase agreements | 22,560 | 17,875 |
Other short-term borrowings | 5,000 | 100,000 |
Junior subordinated debentures | 27,276 | 15,583 |
Subordinated debenture | 39,896 | 28,206 |
Note payable and other borrowings | 423 | 302 |
Borrowing interest payable | 6,915 | 4,794 |
Deposit interest payable | 762 | 1,006 |
Level 3 | ' | ' |
Financial assets: | ' | ' |
Securities available-for-sale | 154,262 | 10,089 |
Loans, net | 1,072,837 | 1,118,711 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 33,210 | 44,221 |
Interest bearing deposits with financial institutions | 14,450 | 84,286 |
Securities available-for-sale | 372,191 | 579,886 |
Securities held-to-maturity | 256,571 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,410 | 54,203 |
Loans held for sale | 3,822 | 9,571 |
Loans, net | 1,073,975 | 1,111,453 |
Accrued interest receivable | 4,248 | 5,252 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,389 | 379,451 |
Interest bearing deposits | 1,308,739 | 1,337,768 |
Securities sold under repurchase agreements | 22,560 | 17,875 |
Other short-term borrowings | 5,000 | 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 | 17,037 | 11,740 |
Deposit interest payable | 762 | 1,006 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 33,210 | 44,221 |
Interest bearing deposits with financial institutions | 14,450 | 84,286 |
Securities available-for-sale | 372,191 | 579,886 |
Securities held-to-maturity | 254,328 | ' |
FHLBC and FRB stock | 10,292 | 11,202 |
Bank-owned life insurance | 55,410 | 54,203 |
Loans held for sale | 3,822 | 9,571 |
Loans, net | 1,072,837 | 1,118,711 |
Accrued interest receivable | 4,248 | 5,252 |
Financial liabilities: | ' | ' |
Noninterest bearing deposits | 373,389 | 379,451 |
Interest bearing deposits | 1,312,476 | 1,347,603 |
Securities sold under repurchase agreements | 22,560 | 17,875 |
Other short-term borrowings | 5,000 | 100,000 |
Junior subordinated debentures | 67,053 | 38,308 |
Subordinated debenture | 39,896 | 28,206 |
Note payable and other borrowings | 423 | 302 |
Borrowing interest payable | 17,037 | 11,740 |
Deposit interest payable | $762 | $1,006 |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||
Mar. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2009 | Dec. 31, 2013 | Mar. 31, 2009 | |
Series B Preferred Stock | 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, initial rate for the first five years (as a percent) | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Cumulative dividends rate (as a percent) | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | 13,300,000 | ' | ' | ' | ' |
Preferred stock | ' | $72,942,000 | $71,869,000 | ' | $72,900,000 | $71,900,000 | ' | ' | ' |
Parent_Company_Condensed_Finan2
Parent Company Condensed Financial Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Other assets | $14,284 | $23,232 | ' |
Total assets | 2,004,034 | 2,045,799 | ' |
Liabilities and Stockholders' Equity | ' | ' | ' |
Junior subordinated debentures | 58,378 | 58,378 | ' |
Subordinated debt | 45,000 | 45,000 | ' |
Other liabilities | 42,776 | 34,275 | ' |
Stockholders' equity | 147,692 | 72,552 | 74,002 |
Total liabilities and stockholders' equity | 2,004,034 | 2,045,799 | ' |
Old Second Bancorp, Inc | ' | ' | ' |
Assets | ' | ' | ' |
Noninterest bearing deposit with bank subsidiary | 2,071 | 3,554 | ' |
Investment in subsidiaries | 258,588 | 192,988 | ' |
Other assets | 18,766 | 1,712 | ' |
Total assets | 279,425 | 198,254 | ' |
Liabilities and Stockholders' Equity | ' | ' | ' |
Junior subordinated debentures | 58,378 | 58,378 | ' |
Subordinated debt | 45,000 | 45,000 | ' |
Other liabilities | 28,355 | 22,324 | ' |
Stockholders' equity | 147,692 | 72,552 | ' |
Total liabilities and stockholders' equity | $279,425 | $198,254 | ' |
Parent_Company_Condensed_Finan3
Parent Company Condensed Financial Information (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Expenses | ' | ' |
Junior subordinated debentures interest expense | $5,298 | $4,925 |
Subordinated debt interest expense | 811 | 903 |
Income (loss) before income taxes | 11,843 | -72 |
Income tax benefit | -70,242 | ' |
Net income (loss) | 82,085 | -72 |
Preferred stock dividends and accretion of discount | 5,258 | 4,987 |
Net income (loss) available to common stockholders | 76,827 | -5,059 |
Old Second Bancorp, Inc | ' | ' |
Operating Income | ' | ' |
Other income | 772 | 189 |
Total operating income | 772 | 189 |
Operating Expenses | ' | ' |
Junior subordinated debentures interest expense | 5,298 | 4,925 |
Subordinated debt interest expense | 811 | 903 |
Other interest expense | 16 | 17 |
Other expenses | 1,006 | 971 |
Total operating expenses | 7,131 | 6,816 |
Income (loss) before income taxes | -6,359 | -6,627 |
Income tax benefit | -17,133 | ' |
Income (loss) before equity in undistributed net income of subsidiaries | 10,774 | -6,627 |
Equity in undistributed net income of subsidiaries | 71,311 | 6,555 |
Net income (loss) | 82,085 | -72 |
Preferred stock dividends and accretion of discount | 5,258 | 4,987 |
Net income (loss) available to common stockholders | $76,827 | ($5,059) |
Parent_Company_Condensed_Finan4
Parent Company Condensed Financial Information (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) | $82,085 | ($72) |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ' | ' |
Deferred income taxes | -70,376 | ' |
Change in taxes payable | -132 | 815 |
Gain on recapture of restricted stock | -612 | ' |
Stock-based compensation | 167 | 291 |
Net cash provided by operating activities | 35,256 | 43,303 |
Cash Flows from Financing Activities | ' | ' |
Purchases of treasury stock | -278 | -63 |
Net cash (used in) provided by financing activities | -125,684 | 93,349 |
Net change in cash and cash equivalents | -80,847 | 77,558 |
Cash and cash equivalents at beginning of period | 128,507 | 50,949 |
Cash and cash equivalents at end of period | 47,660 | 128,507 |
Old Second Bancorp, Inc | ' | ' |
Cash Flows from Operating Activities | ' | ' |
Net income (loss) | 82,085 | -72 |
Adjustments to reconcile net income (loss) to net cash from operating activities: | ' | ' |
Equity in undistributed net income of subsidiaries | -71,311 | -6,555 |
Deferred income taxes | -16,786 | ' |
Change in taxes payable | 14 | 2,445 |
Change in other assets | -264 | -100 |
Gain on recapture of restricted stock | -612 | ' |
Stock-based compensation | 167 | 291 |
Other, net | 5,502 | 3,293 |
Net cash provided by operating activities | -1,205 | -698 |
Cash Flows from Financing Activities | ' | ' |
Purchases of treasury stock | -278 | -63 |
Net cash (used in) provided by financing activities | -278 | -63 |
Net change in cash and cash equivalents | -1,483 | -761 |
Cash and cash equivalents at beginning of period | 3,554 | 4,315 |
Cash and cash equivalents at end of period | $2,071 | $3,554 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | 34 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Old Second Bancorp, Inc. Employees 401(k) Savings Plan and Trust | ' | ' | ' |
Company's discretionary matching contributions to the Plan (as a percent) | ' | ' | 100.00% |
Participant's contributions to the Plan (as a percent) | ' | ' | 2.00% |
Participants vesting as percentage of discretionary matching contributions | 100.00% | ' | ' |
Expense relating to the 401(k) plan | $468,000 | $441,000 | ' |
Company obligations under Voluntary Deferred Compensation Plan for Executives | $1,800,000 | $1,500,000 | $1,800,000 |