Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 06, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'INDEPENDENT BANK CORP /MI/ | ' | ' |
Entity Central Index Key | '0000039311 | ' | ' |
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 | ' | ' | $56,411,932 |
Entity Common Stock, Shares Outstanding | ' | 22,920,730 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_FIN
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $48,156 | $55,487 |
Interest bearing deposits | 70,925 | 124,295 |
Cash and Cash Equivalents | 119,081 | 179,782 |
Interest bearing deposits - time | 17,999 | 0 |
Trading securities | 498 | 110 |
Securities available for sale | 462,481 | 208,413 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 23,419 | 20,838 |
Loans held for sale, carried at fair value | 20,390 | 47,487 |
Loans held for sale, carried at lower of cost or fair value | 0 | 3,292 |
Loans | ' | ' |
Commercial | 635,234 | 617,258 |
Mortgage | 486,633 | 527,340 |
Installment | 192,065 | 189,849 |
Payment plan receivables | 60,638 | 84,692 |
Total Loans | 1,374,570 | 1,419,139 |
Allowance for loan losses | -32,325 | -44,275 |
Net Loans | 1,342,245 | 1,374,864 |
Other real estate and repossessed assets | 18,282 | 26,133 |
Property and equipment, net | 48,594 | 47,016 |
Bank-owned life insurance | 52,253 | 50,890 |
Deferred tax assets, net | 57,550 | 0 |
Capitalized mortgage loan servicing rights | 13,710 | 11,013 |
Vehicle service contract counterparty receivables, net | 7,716 | 18,449 |
Other intangibles | 3,163 | 3,975 |
Prepaid FDIC deposit insurance assessment | 0 | 9,448 |
Accrued income and other assets | 22,562 | 22,157 |
Total Assets | 2,209,943 | 2,023,867 |
Deposits | ' | ' |
Non-interest bearing | 518,658 | 488,126 |
Savings and interest-bearing checking | 910,352 | 871,238 |
Reciprocal | 83,527 | 33,242 |
Retail time | 358,800 | 372,340 |
Brokered time | 13,469 | 14,591 |
Total Deposits | 1,884,806 | 1,779,537 |
Other borrowings | 17,188 | 17,625 |
Subordinated debentures | 40,723 | 50,175 |
Vehicle service contract counterparty payables | 4,089 | 7,725 |
Accrued expenses and other liabilities | 31,556 | 33,830 |
Total Liabilities | 1,978,362 | 1,888,892 |
Commitments and contingent liabilities | ' | ' |
Shareholders' Equity | ' | ' |
Convertible preferred stock, no par value, 200,000 shares authorized; None issued and outstanding at December 31, 2013 and 74,426 shares issued and outstanding at December 31, 2012; liquidation preference: $85,150 at December 31, 2012 | 0 | 84,204 |
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 22,819,136 shares at December 31, 2013 and 9,093,732 shares at December 31, 2012 | 351,173 | 251,237 |
Accumulated deficit | -110,347 | -192,408 |
Accumulated other comprehensive loss | -9,245 | -8,058 |
Total Shareholders' Equity | 231,581 | 134,975 |
Total Liabilities and Shareholders' Equity | $2,209,943 | $2,023,867 |
CONSOLIDATED_STATEMENTS_OF_FIN1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Shareholders' Equity | ' | ' |
Convertible preferred stock, par value (in dollars per share) | $0 | $0 |
Convertible preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Convertible preferred stock, shares issued (in shares) | 0 | 74,426 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 74,426 |
Convertible preferred stock, liquidation preference | $0 | $81,023 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 22,819,136 | 9,093,732 |
Common stock, shares outstanding (in shares) | 22,819,136 | 9,093,732 |
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 | Dec. 31, 2011 | |||
INTEREST INCOME | ' | ' | ' | |||
Interest and fees on loans | $80,664 | $93,780 | $110,574 | |||
Interest on securities | ' | ' | ' | |||
Taxable | 4,059 | 2,934 | 1,422 | |||
Tax-exempt | 1,101 | 1,044 | 1,219 | |||
Other investments | 1,297 | 1,640 | 1,547 | |||
Total Interest Income | 87,121 | 99,398 | 114,762 | |||
INTEREST EXPENSE | ' | ' | ' | |||
Deposits | 5,706 | 8,913 | 15,257 | |||
Other borrowings | 3,456 | 4,230 | 4,936 | |||
Total Interest Expense | 9,162 | 13,143 | 20,193 | |||
Net Interest Income | 77,959 | 86,255 | 94,569 | |||
Provision for loan losses | -3,988 | 6,887 | 27,946 | |||
Net Interest Income After Provision for Loan Losses | 81,947 | 79,368 | 66,623 | |||
NON-INTEREST INCOME | ' | ' | ' | |||
Service charges on deposit accounts | 14,076 | 17,887 | 18,306 | |||
Interchange income | 7,362 | 9,188 | 9,091 | |||
Net gains (losses) on assets | ' | ' | ' | |||
Mortgage loans | 10,022 | 17,323 | 9,262 | |||
Securities | 395 | 1,226 | 249 | |||
Other than temporary impairment loss on securities | ' | ' | ' | |||
Total impairment loss | -26 | -339 | -760 | |||
Loss recognized in other comprehensive loss | 0 | 0 | 0 | |||
Net impairment loss recognized in earnings | -26 | -339 | -760 | |||
Mortgage loan servicing | 3,806 | 166 | -2,011 | |||
Title insurance fees | 1,682 | 1,963 | 1,465 | |||
(Increase) decrease in fair value of U.S. Treasury warrant | -1,025 | -285 | 1,137 | |||
Net gain on branch sale | 0 | 5,402 | 0 | |||
Other | 8,537 | 11,034 | 10,174 | |||
Total Non-interest Income | 44,829 | 63,565 | 46,913 | |||
NON-INTEREST EXPENSE | ' | ' | ' | |||
Compensation and employee benefits | 47,924 | 53,983 | 50,484 | |||
Occupancy, net | 8,845 | 10,104 | 11,183 | |||
Data processing | 8,019 | 8,009 | 8,208 | |||
Loan and collection | 6,886 | 9,965 | 12,414 | |||
Vehicle service contract counterparty contingencies | 4,837 | 1,629 | 11,048 | |||
Furniture, fixtures and equipment | 4,293 | 4,635 | 5,169 | |||
Communications | 2,919 | 3,677 | 3,918 | |||
Legal and professional | 2,459 | 4,175 | 3,941 | |||
FDIC deposit insurance | 2,435 | 3,306 | 3,507 | |||
Advertising | 2,433 | 2,494 | 2,503 | |||
Provision for loss reimbursement on sold loans | 2,152 | 1,112 | 1,993 | |||
Interchange expense | 1,645 | 1,799 | 1,543 | |||
Credit card and bank service fees | 1,263 | 2,091 | 3,656 | |||
Net losses on other real estate and repossessed assets | 1,237 | 2,854 | 5,824 | |||
Write-down of property and equipment held for sale | 0 | 860 | 0 | |||
Recoveries related to unfunded lending commitments | -90 | -688 | -36 | |||
Other | 6,861 | 6,730 | 8,593 | |||
Total Non-interest Expense | 104,118 | 116,735 | 133,948 | |||
Income (Loss) Before Income Tax | 22,658 | 26,198 | -20,412 | |||
Income tax benefit | -54,851 | 0 | -212 | |||
Net Income (Loss) | 77,509 | 26,198 | -20,200 | |||
Preferred stock dividends and discount accretion | -3,001 | -4,347 | -4,157 | |||
Preferred stock discount | 7,554 | 0 | 0 | |||
Net Income (Loss) Applicable to Common Stock | $82,062 | $21,851 | ($24,357) | |||
Net income (loss) per common share | ' | ' | ' | |||
Basic (in dollars per share) | $5.87 | [1] | $2.51 | [1] | ($2.94) | [1] |
Diluted (in dollars per share) | $3.55 | $0.80 | ($2.94) | |||
Cash dividends declared per common share (in dollars per share) | $0 | $0 | $0 | |||
[1] | Basic net income (loss) per common share includes weighted average common shares outstanding during the period and participating share awards. |
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 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ' | ' |
Net income (loss) | $77,509 | $26,198 | ($20,200) |
Available for sale securities | ' | ' | ' |
Unrealized gain (loss) arising during period | -4,698 | 2,757 | -287 |
Change in unrealized losses for which a portion of other than temporary impairment has been recognized in earnings | 270 | 1,160 | 600 |
Reclassification adjustment for other than temporary impairment included in earnings | 26 | 339 | 760 |
Reclassification adjustments for (gains) included in earnings | -7 | -1,193 | -204 |
Unrealized gains (losses) recognized in other comprehensive income on available for sale securities | -4,409 | 3,063 | 869 |
Income tax expense (benefit) | -1,544 | 0 | 304 |
Unrealized gains (losses) recognized in other comprehensive income on available for sale securities, net of tax | -2,865 | 3,063 | 565 |
Derivative instruments | ' | ' | ' |
Unrealized loss arising during period | -37 | -127 | -482 |
Reclassification adjustment for expense recognized in earnings | 208 | 491 | 799 |
Reclassification adjustment for accretion on settled derivatives | 189 | 436 | 659 |
Unrealized gains recognized in other comprehensive income on derivative instruments | 360 | 800 | 976 |
Income tax expense (benefit) | -1,318 | 0 | 342 |
Unrealized gains recognized in other comprehensive income on derivative instruments, net of tax | 1,678 | 800 | 634 |
Other comprehensive income (loss) | -1,187 | 3,863 | 1,199 |
Comprehensive income (loss) | $76,322 | $30,061 | ($19,001) |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Preferred Stock [Member] | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total |
In Thousands, unless otherwise specified | |||||
Balances at Dec. 31, 2010 | $75,700 | $246,407 | ($189,902) | ($13,120) | $119,085 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income (loss) | 0 | 0 | -20,200 | 0 | -20,200 |
Dividends on Preferred | 3,939 | 0 | -3,939 | 0 | 0 |
Issuance of common stock | 0 | 1,335 | 0 | 0 | 1,335 |
Share based compensation | 0 | 1,208 | 0 | 0 | 1,208 |
Accretion of preferred stock discount | 218 | 0 | -218 | 0 | 0 |
Net current period other comprehensive income | 0 | 0 | 0 | 1,199 | 1,199 |
Balances at Dec. 31, 2011 | 79,857 | 248,950 | -214,259 | -11,921 | 102,627 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income (loss) | 0 | 0 | 26,198 | 0 | 26,198 |
Dividends on Preferred | 4,128 | 0 | -4,128 | 0 | 0 |
Issuance of common stock | 0 | 1,418 | 0 | 0 | 1,418 |
Share based compensation | 0 | 869 | 0 | 0 | 869 |
Accretion of preferred stock discount | 219 | 0 | -219 | 0 | 0 |
Net current period other comprehensive income | 0 | 0 | 0 | 3,863 | 3,863 |
Balances at Dec. 31, 2012 | 84,204 | 251,237 | -192,408 | -8,058 | 134,975 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income (loss) | 0 | 0 | 77,509 | 0 | 77,509 |
Dividends on Preferred | 2,856 | 0 | -2,856 | 0 | 0 |
Issuance of common stock | 0 | 99,075 | 0 | 0 | 99,075 |
Share based compensation | 0 | 1,238 | 0 | 0 | 1,238 |
Share based compensation withholding obligation | 0 | -513 | 0 | 0 | -513 |
Accretion of preferred stock discount | 146 | 0 | -146 | 0 | 0 |
Common stock warrant | 0 | 1,484 | 0 | 0 | 1,484 |
Redemption of convertible preferred stock and common stock warrant | -87,206 | -1,348 | 7,554 | 0 | -81,000 |
Net current period other comprehensive income | 0 | 0 | 0 | -1,187 | -1,187 |
Balances at Dec. 31, 2013 | $0 | $351,173 | ($110,347) | ($9,245) | $231,581 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash dividends | ' | ' | ' |
Preferred stock stated dividend rate (in hundredths) | 5.00% | 5.00% | 5.00% |
Issuance of shares of common stock (in shares) | 13,604,963 | 454,842 | 432,797 |
Share based compensation, common stock (in shares) | 175,789 | 147,364 | 198,246 |
Share based compensation withholding obligation, common stock (in shares) | 55,348 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' |
Net income (loss) | $77,509 | $26,198 | ($20,200) |
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES | ' | ' | ' |
Proceeds from sales of loans held for sale | 415,442 | 527,371 | 391,253 |
Disbursements for loans held for sale | -378,323 | -512,734 | -376,694 |
Provision for loan losses | -3,988 | 6,887 | 27,946 |
Deferred federal income tax expense (benefit) | -57,550 | 0 | 201 |
Deferred loan fees | 17 | -392 | -449 |
Depreciation, amortization of intangible assets and premiums and accretion of discounts on securities and loans | -2,197 | -4,718 | -11,301 |
Write-down of property and equipment held for sale | 0 | 860 | 0 |
Net gains on mortgage loans | -10,022 | -17,323 | -9,262 |
Net gains on securities | -395 | -1,226 | -249 |
Securities impairment recognized in earnings | 26 | 339 | 760 |
Net losses on other real estate and repossessed assets | 1,237 | 2,854 | 5,824 |
Vehicle service contract counterparty contingencies | 4,837 | 1,629 | 11,048 |
Share based compensation | 1,238 | 869 | 1,208 |
Net gain on branch sale | 0 | -5,402 | 0 |
(Increase) decrease in accrued income and other assets | 7,747 | -2,425 | 16,872 |
Increase (decrease) in accrued expenses and other liabilities | -3,508 | 6,606 | -1,551 |
Total Adjustments | -25,439 | 3,195 | 55,606 |
Net Cash From Operating Activities | 52,070 | 29,393 | 35,406 |
CASH FLOW USED IN INVESTING ACTIVITIES | ' | ' | ' |
Proceeds from the sale of securities available for sale | 2,940 | 37,176 | 70,322 |
Proceeds from the maturity of securities available for sale | 29,866 | 83,190 | 3,983 |
Principal payments received on securities available for sale | 43,702 | 23,765 | 9,282 |
Purchases of securities available for sale | -332,060 | -192,726 | -173,186 |
Purchases of interest bearing deposits | -20,260 | 0 | 0 |
Proceeds from the maturity of interest bearing deposits | 2,142 | 0 | 0 |
Redemption of Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 334 | 2,802 |
Purchase of Federal Reserve Bank stock | -2,581 | 0 | 0 |
Net decrease in portfolio loans (loans originated, net of principal payments) | 33,192 | 90,952 | 196,558 |
Net proceeds from the sale of watch, substandard and non-performing loans | 6,721 | 0 | 0 |
Net cash from (paid for) branch sale | 3,292 | -339,995 | 0 |
Proceeds from the collection of vehicle service contract counterparty receivables | 6,751 | 7,413 | 1,613 |
Proceeds from the sale of other real estate and repossessed assets | 13,546 | 19,331 | 18,638 |
Proceeds from the sale of property and equipment | 52 | 1,958 | 224 |
Capital expenditures | -8,371 | -5,293 | -2,779 |
Net Cash From (Used in) Investing Activities | -221,068 | -273,895 | 127,457 |
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES | ' | ' | ' |
Net increase (decrease) in total deposits | 105,269 | 96,428 | -165,713 |
Net increase (decrease) in other borrowings | 4 | 0 | -7 |
Proceeds from Federal Home Loan Bank advances | 100 | 12,000 | 31,000 |
Payments of Federal Home Loan Bank advances | -541 | -27,762 | -68,638 |
Redemption of convertible preferred stock and common stock warrant | -81,000 | 0 | 0 |
Share based compensation withholding obligations | -513 | 0 | 0 |
Net increase (decrease) in vehicle service contract counterparty payables | -3,636 | 1,092 | -5,106 |
Redemption of subordinated debt | -9,452 | 0 | 0 |
Proceeds from issuance of common stock | 98,066 | 1,418 | 1,335 |
Net Cash From (Used in) Financing Activities | 108,297 | 83,176 | -207,129 |
Net Decrease in Cash and Cash Equivalents | -60,701 | -161,326 | -44,266 |
Cash and Cash Equivalents at Beginning of Year | 179,782 | 341,108 | 385,374 |
Cash and Cash Equivalents at End of Year | 119,081 | 179,782 | 341,108 |
Cash paid during the year for | ' | ' | ' |
Interest | 15,914 | 11,052 | 18,729 |
Income taxes | 43 | 292 | 59 |
Transfers to other real estate and repossessed assets | 6,932 | 14,276 | 19,091 |
Transfer of payment plan receivables to vehicle service contract counterparty receivables | 792 | 1,469 | 8,874 |
Purchase of securities available for sale and interest bearing deposits - time not yet settled | 4,146 | 0 | 0 |
Transfers to loans held for sale | 0 | 47,954 | 0 |
Transfers to property and equipment held for sale | 0 | 13,033 | 0 |
Transfers to deposits held for sale | $0 | $403,089 | $0 |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
ACCOUNTING POLICIES [Abstract] | ' |
ACCOUNTING POLICIES | ' |
NOTE 1 – ACCOUNTING POLICIES | |
The accounting and reporting policies and practices of Independent Bank Corporation and subsidiaries conform to accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. Our critical accounting policies include the assessment for other than temporary impairment (“OTTI”) on investment securities, the determination of the allowance for loan losses, the determination of vehicle service contract counterparty contingencies, the valuation of originated mortgage loan servicing rights and the valuation of deferred tax assets. We are required to make material estimates and assumptions that are particularly susceptible to changes in the near term as we prepare the consolidated financial statements and report amounts for each of these items. Actual results may vary from these estimates. | |
Our Bank subsidiary transacts business in the single industry of commercial banking. Our Bank’s activities cover traditional phases of commercial banking, including checking and savings accounts, commercial lending, direct and indirect consumer financing and mortgage lending. Our principal markets are the rural and suburban communities across Lower Michigan that are served by our Bank’s branches and loan production offices. We also purchase payment plans from companies (which we refer to as “counterparties”) that provide vehicle service contracts and similar products to consumers, through our wholly owned subsidiary, Mepco Finance Corporation (“Mepco”). At December 31, 2013, 75.4% of our Bank’s loan portfolio was secured by real estate. | |
PRINCIPLES OF CONSOLIDATION — The consolidated financial statements include the accounts of Independent Bank Corporation and its subsidiaries. The income, expenses, assets and liabilities of the subsidiaries are included in the respective accounts of the consolidated financial statements, after elimination of all material intercompany accounts and transactions. | |
STATEMENTS OF CASH FLOWS — For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits and federal funds sold. Generally, federal funds are sold for one-day periods. We report net cash flows for customer loan and deposit transactions, for short-term borrowings and for vehicle service contract counterparty payables. | |
INTEREST BEARING DEPOSITS — Interest bearing deposits consist of overnight deposits with the Federal Reserve Bank. | |
INTEREST BEARING DEPOSITS - TIME — Interest bearing deposits - time consist of deposits with original maturities of 3 months or more. | |
LOANS HELD FOR SALE — Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Fair value adjustments as well as realized gains and losses, are recorded in current earnings. Certain loans held for sale at December 31, 2012 relating to our branch sale [see note #26] were carried at the lower of cost or market. | |
MORTGAGE LOAN SERVICING RIGHTS — We recognize as separate assets the rights to service mortgage loans for others. The fair value of originated mortgage loan servicing rights has been determined based upon fair value indications for similar servicing. The mortgage loan servicing rights are amortized in proportion to and over the period of estimated net loan servicing income. We assess mortgage loan servicing rights for impairment based on the fair value of those rights. For purposes of measuring impairment, the characteristics used include interest rate, term and type. Amortization of and changes in the impairment reserve on originated mortgage loan servicing rights are included in mortgage loan servicing in the Consolidated Statements of Operations. The fair values of mortgage loan servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding amortization of and changes in the impairment reserve on originated mortgage loan servicing rights, totaled $4.3 million, $4.4 million and $4.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. Late fees and ancillary fees related to loan servicing are not material. | |
TRANSFERS OF FINANCIAL ASSETS — Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from us, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
SECURITIES — We classify our securities as trading, held to maturity or available for sale. Trading securities are bought and held principally for the purpose of selling them in the near term and are reported at fair value with realized and unrealized gains and losses included in earnings. Securities held to maturity represent those securities for which we have the positive intent and ability to hold until maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts computed on the level-yield method. We did not have any securities held to maturity at December 31, 2013 and 2012. Securities available for sale represent those securities not classified as trading or held to maturity and are reported at fair value with unrealized gains and losses, net of applicable income taxes reported in other comprehensive income (loss). | |
We evaluate securities for OTTI at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In performing this evaluation management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income or loss. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. | |
Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. Premiums and discounts are recognized in interest income computed on the level-yield method. | |
FEDERAL HOME LOAN BANK (“FHLB”) STOCK — Our Bank subsidiary is a member of the FHLB system. 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. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
FEDERAL RESERVE BANK (“FRB”) STOCK — Our Bank subsidiary is a member of its regional Federal Reserve Bank. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
LOAN REVENUE RECOGNITION — Interest on loans is accrued based on the principal amounts outstanding. In general the accrual of interest income is discontinued when a loan becomes 90 days past due for commercial loans and installment loans and when a loan misses four consecutive payments for mortgage loans and the borrower’s capacity to repay the loan and collateral values appear insufficient for each loan class. However, loans may be placed on non-accrual status regardless of whether or not such loans are considered past due if, in management’s opinion, the borrower is unable to meet payment obligations as they become due or as required by regulatory provisions. All interest accrued but not received for all loans placed on non-accrual is reversed from interest income. Payments on such loans are generally applied to the principal balance until qualifying to be returned to accrual status. A non-accrual loan may be restored to accrual status when interest and principal payments are current and the loan appears otherwise collectible. Delinquency status for all classes in the commercial and installment loan segments is based on the actual number of days past due as required by the contractual terms of the loan agreement while delinquency status for mortgage loan segment classes is based on the number of payments past due. | |
Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment. | |
PAYMENT PLAN RECEIVABLE REVENUE RECOGNITION — Payment plan receivables are acquired by our Mepco segment at a discount and reported net of this discount in the Consolidated Statements of Financial Condition. This discount is accreted into interest and fees on loans over the life of the receivable computed on a level-yield method. All classes of payment plan receivables that have been canceled and are 90 days or more past due as required by the contractual terms of the payment plan are classified as non-accrual. | |
ALLOWANCE FOR LOAN LOSSES — Portfolios are disaggregated into segments for purposes of determining the allowance for loan losses (“AFLL”) which include commercial, mortgage and installment loans and payment plan receivables. These segments are further disaggregated into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan segment include (i) income producing – real estate, (ii) land, land development and construction – real estate and (iii) commercial and industrial. Classes within the mortgage loan segment include (i) 1-4 family, (ii) resort lending, (iii) home equity – 1st lien and (iv) home equity 2nd lien. Classes within the installment loan segment include (i) home equity – 1st lien, (ii) home equity – 2nd lien, (iii) loans not secured by real estate and (iv) other. Classes within the payment plan receivables segment include (i) full refund, (ii) partial refund and (iii) other. Commercial loans are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or could cause a decline in the value of the collateral that secures the loan. Mortgage and installment loans and payment plan receivables are subject to adverse employment conditions in the local economy which could increase default rates. In addition, mortgage loans and real estate based installment loans are subject to adverse market conditions which could cause a decline in the value of collateral that secures the loan. For an analysis of the AFLL by portfolio segment and credit quality information by class, see note #4. | |
Some loans will not be repaid in full. Therefore, an AFLL is maintained at a level which represents our best estimate of losses incurred. In determining the allowance and the related provision for loan losses, we consider four principal elements: (i) specific allocations based upon probable losses identified during the review of the loan portfolio, (ii) allocations established for other adversely rated commercial loans, (iii) allocations based principally on historical loan loss experience, and (iv) additional allocations based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolios. | |
The first AFLL element (specific allocations) reflects our estimate of probable incurred losses based upon our systematic review of specific loans. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, discounted collateral exposure and discounted cash flow analysis. Impaired commercial, mortgage and installment loans are allocated allowance amounts using this first element. The second AFLL element (other adversely rated commercial loans) reflects the application of our loan rating system. This rating system is similar to those employed by state and federal banking regulators. Commercial loans that are rated below a certain predetermined classification are assigned a loss allocation factor for each loan classification category that is based upon a historical analysis of both the probability of default and the expected loss rate (“loss given default”). The lower the rating assigned to a loan or category, the greater the allocation percentage that is applied. The third AFLL element (historical loss allocations) is determined by assigning allocations to higher rated (“non-watch credit”) commercial loans using a probability of default and loss given default similar to the second AFLL element and to homogenous mortgage and installment loan groups based upon borrower credit score and portfolio segment. For homogenous mortgage and installment loans a probability of default for each homogenous pool is calculated by way of credit score migration. Historical loss data for each homogenous pool coupled with the associated probability of default is utilized to calculate an expected loss allocation rate. The fourth AFLL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to ensure that the overall allowance for loan losses appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We consider a number of subjective factors when determining this fourth element, including local and general economic business factors and trends, portfolio concentrations and changes in the size, mix and the general terms of the overall loan portfolio. | |
Increases in the AFLL are recorded by a provision for loan losses charged to expense. Although we periodically allocate portions of the AFLL to specific loans and loan portfolios, the entire AFLL is available for incurred losses. We generally charge-off commercial, homogenous residential mortgage and installment loans and payment plan receivables when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the AFLL. | |
While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. | |
A loan is impaired when full payment under the loan terms is not expected. Generally, those loans included in each commercial loan class that are rated substandard, classified as non-performing or were classified as non- performing in the preceding quarter are evaluated for impairment. Those loans included in each mortgage loan or installment class whose terms have been modified and considered a troubled debt restructuring are also impaired. Loans which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDR”) and classified as impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class and each payment plan receivable class are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. | |
PROPERTY AND EQUIPMENT — Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using both straight-line and accelerated methods over the estimated useful lives of the related assets. Buildings are generally depreciated over a period not exceeding 39 years and equipment is generally depreciated over periods not exceeding 7 years. Leasehold improvements are depreciated over the shorter of their estimated useful life or lease period. | |
BANK OWNED LIFE INSURANCE — We have purchased a group flexible premium non-participating variable life insurance contract on approximately 270 lives (who were salaried employees at the time we purchased the contract) in order to recover the cost of providing certain employee benefits. Bank owned life insurance is recorded at its cash surrender value or the amount that can be currently realized. | |
OTHER REAL ESTATE AND REPOSSESSED ASSETS — Other real estate at the time of acquisition is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Fair value is typically determined by a third party appraisal of the property. Any write-downs at date of acquisition are charged to the allowance for loan losses. Expense incurred in maintaining assets and subsequent write-downs to reflect declines in value and gains or losses on the sale of other real estate are recorded in the Consolidated Statements of Operations. Non-real estate repossessed assets are treated in a similar manner. | |
OTHER INTANGIBLE ASSETS — Other intangible assets consist of core deposits. They are initially measured at fair value and then are amortized on both straight-line and accelerated methods over their estimated useful lives, which range from 10 to 15 years. | |
VEHICLE SERVICE CONTRACT COUNTERPARTY RECEIVABLES, NET — These amounts represent funds due to Mepco from its counterparties for cancelled service contracts. Upon the cancellation of a service contract and the completion of the billing process to the counterparties for amounts due to Mepco, there is a decrease in the amount of “payment plan receivables” and an increase in the amount of “vehicle service contract counterparty receivables” until such time as the amount due from the counterparty is collected. | |
INCOME TAXES — We employ the asset and liability method of accounting for income taxes. This method establishes deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at tax rates expected to be in effect when such amounts are realized or settled. Under this method, the effect of a change in tax rates is recognized in the period that includes the enactment date. The deferred tax asset is subject to a valuation allowance for that portion of the asset for which it is more likely than not that it will not be realized. | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. | |
We recognize interest and/or penalties related to income tax matters in income tax expense. | |
We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return. | |
VEHICLE SERVICE CONTRACT COUNTERPARTY PAYABLES — Vehicle service contract counterparty payables represent amounts owed to insurance companies or other counterparties for vehicle service contract payment plans purchased by us. The vehicle service contract counterparty payable becomes due in accordance with the terms of the specific contract between Mepco and the counterparty. Typically these terms require payment after Mepco has received one or two payments from the consumer on the payment plan receivable. | |
COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS — Financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and letters of credit is represented by the contractual amounts of those instruments. In general, we use a similar methodology to estimate our liability for these off-balance sheet credit exposures as we do for our allowance for loan losses. For commercial related commitments, we estimate liability using our loan rating system and for mortgage and installment commitments we estimate liability principally upon historical loss experience. Our estimated liability for off balance sheet commitments is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Condition and any charge or recovery is recorded in non-interest expenses in our Consolidated Statements of Operations. | |
DERIVATIVE FINANCIAL INSTRUMENTS — We record derivatives on our Consolidated Statement of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting. | |
At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“Fair Value Hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“Cash Flow Hedge”), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. We currently do not have any Fair Value Hedges. For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. We currently do not have any Cash Flow Hedges as we terminated our last remaining hedge during the second quarter of 2013. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. For instruments with no hedging designation the gain or loss on the derivative is reported currently in earnings. These free standing instruments currently consist of mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans. Fair values of these mortgage derivatives are estimated based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into, in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans. | |
Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. | |
We formally document the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. | |
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded currently in earnings. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | |
COMPREHENSIVE INCOME (LOSS) — Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on securities available for sale and derivative instruments classified as cash flow hedges. | |
INCOME (LOSS) PER COMMON SHARE — Basic income (loss) and diluted (loss) per common share are computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period and participating share awards. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. For diluted income per common share, net income is divided by the weighted average number of common shares outstanding during the period plus the dilutive effects of the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors. For any period in which a loss is recorded, dividends on convertible preferred stock are not added back in the diluted per share calculation and the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors would have an anti-dilutive impact on the loss per share and thus are ignored in the diluted per share calculation. | |
SHARE BASED COMPENSATION — Cost is recognized for stock options and non-vested share awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of our common stock at the date of grant is used for non-vested share awards. Cost is recognized over the required service period, generally defined as the vesting period. Cost is also recognized for salary stock issued to employees and stock issued to non- employee directors. These shares vest immediately and cost is recognized during the period they are issued. | |
COMMON STOCK — At December 31, 2013, 0.1 million shares of common stock were reserved for issuance under the dividend reinvestment plan and 0.5 million shares of common stock were reserved for issuance under our long-term incentive plans. | |
RECLASSIFICATION — Certain amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation. | |
ADOPTION OF NEW ACCOUNTING STANDARDS — In February, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This ASU amended guidance on the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this guidance require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This amended guidance became effective for us at January 1, 2013 and was applied prospectively. The effect of adopting this standard did not have a material impact on our consolidated operating results or financial condition, but the additional disclosures are included in note #24. | |
In July 2013, the FASB amended existing guidance related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. These amendments provide that an unrecognized tax benefit, or a portion thereof, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 with early adoption and retrospective application permitted. This amendment is not expected to have a material impact on our consolidated operating results or financial condition. | |
In January, 2014, the FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”. The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 with early adoption and retrospective or prospective application permitted. This amendment is not expected to have a material impact on our consolidated operating results or financial condition. |
RESTRICTIONS_ON_CASH_AND_DUE_F
RESTRICTIONS ON CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2013 | |
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract] | ' |
RESTRICTIONS ON CASH AND DUE FROM BANKS | ' |
NOTE 2 – RESTRICTIONS ON CASH AND DUE FROM BANKS | |
Our Bank is required to maintain reserve balances in the form of vault cash and non-interest earning balances with the FRB. The average reserve balances to be maintained during 2013 and 2012 were $24.5 million and $26.1 million, respectively. We do not maintain compensating balances with correspondent banks. We are also required to maintain reserve balances related primarily to our merchant payment processing operations and Visa debit card operations. These balances are held at unrelated financial institutions and totaled $2.4 million and $2.5 million at December 31, 2013 and 2012, respectively. |
SECURITIES
SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
SECURITIES [Abstract] | ' | ||||||||||||||||||||||||
SECURITIES | ' | ||||||||||||||||||||||||
NOTE 3 – SECURITIES | |||||||||||||||||||||||||
Securities available for sale consist of the following at December 31: | |||||||||||||||||||||||||
Amortized | Unrealized | ||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
U.S. agency | $ | 32,106 | $ | 44 | $ | 342 | $ | 31,808 | |||||||||||||||||
U.S. agency residential mortgage-backed | 202,649 | 1,343 | 532 | 203,460 | |||||||||||||||||||||
Private label residential mortgage-backed | 7,294 | 112 | 618 | 6,788 | |||||||||||||||||||||
Other asset backed | 45,369 | 10 | 194 | 45,185 | |||||||||||||||||||||
Obligations of states and political subdivisions | 157,966 | 496 | 4,784 | 153,678 | |||||||||||||||||||||
Corporate | 19,120 | 43 | 26 | 19,137 | |||||||||||||||||||||
Trust preferred | 2,902 | - | 477 | 2,425 | |||||||||||||||||||||
Total | $ | 467,406 | $ | 2,048 | $ | 6,973 | $ | 462,481 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
U.S. agency | $ | 30,620 | $ | 70 | $ | 23 | $ | 30,667 | |||||||||||||||||
U.S. agency residential mortgage-backed | 126,151 | 1,264 | 3 | 127,412 | |||||||||||||||||||||
Private label residential mortgage-backed | 9,070 | - | 876 | 8,194 | |||||||||||||||||||||
Obligations of states and political subdivisions | 38,384 | 736 | 69 | 39,051 | |||||||||||||||||||||
Trust preferred | 4,704 | - | 1,615 | 3,089 | |||||||||||||||||||||
Total | $ | 208,929 | $ | 2,070 | $ | 2,586 | $ | 208,413 | |||||||||||||||||
Total OTTI recognized in accumulated other comprehensive loss for securities available for sale was $0.2 million and $0.3 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows: | |||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
U.S. agency | $ | 16,715 | $ | 342 | $ | - | $ | - | $ | 16,715 | $ | 342 | |||||||||||||
U.S. agency residential mortgage-backed | 78,256 | 532 | - | - | 78,256 | 532 | |||||||||||||||||||
Private label residential mortgage-backed | 407 | 6 | 4,602 | 612 | 5,009 | 618 | |||||||||||||||||||
Other asset backed | 33,862 | 194 | - | - | 33,862 | 194 | |||||||||||||||||||
Obligations of states and political subdivisions | 103,942 | 4,645 | 4,805 | 139 | 108,747 | 4,784 | |||||||||||||||||||
Corporate | 7,105 | 26 | - | - | 7,105 | 26 | |||||||||||||||||||
Trust preferred | - | - | 2,425 | 477 | 2,425 | 477 | |||||||||||||||||||
Total | $ | 240,287 | $ | 5,745 | $ | 11,832 | $ | 1,228 | $ | 252,119 | $ | 6,973 | |||||||||||||
2012 | |||||||||||||||||||||||||
U.S. agency | $ | 8,097 | $ | 23 | $ | - | $ | - | $ | 8,097 | $ | 23 | |||||||||||||
U.S. agency residential mortgage-backed | - | - | 457 | 3 | 457 | 3 | |||||||||||||||||||
Private label residential mortgage-backed | - | - | 8,192 | 876 | 8,192 | 876 | |||||||||||||||||||
Obligations of states and political subdivisions | 7,384 | 69 | - | - | 7,384 | 69 | |||||||||||||||||||
Trust preferred | - | - | 3,089 | 1,615 | 3,089 | 1,615 | |||||||||||||||||||
Total | $ | 15,481 | $ | 92 | $ | 11,738 | $ | 2,494 | $ | 27,219 | $ | 2,586 | |||||||||||||
Our portfolio of available-for-sale securities is reviewed quarterly for impairment in value. In performing this review management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income or loss. | |||||||||||||||||||||||||
U.S. agency and U.S. agency residential mortgage-backed securities — at December 31, 2013 we had eight U.S. Agency and 14 U.S. Agency residential mortgage-backed securities whose fair market value is less than amortized cost. The unrealized losses are largely attributed to rises in term interest rates and widening discount margins on variable rate securities. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
Private label residential mortgage backed securities — at December 31, 2013 we had six of this type of securities whose fair value is less than amortized cost. Two of the issues are rated by a major rating agency as investment grade two are below investment grade and two are split rated. Two of these bonds have impairment in excess of 10% and four of these holdings have been impaired for more than 12 months. | |||||||||||||||||||||||||
The unrealized losses are largely attributable to credit spread widening on these securities since their acquisition. The underlying loans within these securities include Jumbo (69%) and Alt A (31%) at December 31, 2013. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Fair | Net | Fair | Net | ||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Private label residential mortgage-backed | |||||||||||||||||||||||||
Jumbo | $ | 4,687 | $ | (441 | ) | $ | 6,041 | $ | (594 | ) | |||||||||||||||
Alt-A | 2,101 | (65 | ) | 2,153 | (282 | ) | |||||||||||||||||||
These securities, except for the senior support security with a zero amortized cost basis, are receiving some principal and interest payments. Most of these transactions are passthrough structures, receiving pro rata principal and interest payments from a dedicated collateral pool for loans that are performing. The nonreceipt of interest cash flows is not expected and thus not presently considered in our discounted cash flow methodology discussed below. | |||||||||||||||||||||||||
All private label residential mortgage-backed securities are reviewed for OTTI utilizing a cash flow projection. The cash flow analysis forecasts cash flow from the underlying loans in each transaction and then applies these cash flows to the bonds in the securitization. The cash flows from the underlying loans consider contractual payment terms (scheduled amortization), prepayments, defaults and severity of loss given default. The analysis uses dynamic assumptions for prepayments, defaults and loss severity. Near term prepayment assumptions are based on recently observed prepayment rates. More weight is given to longer term historic performance (12 months). In some cases, recently observed prepayment rates are lower than historic norms due to a minimal amount of new jumbo loan issuances. This loan market is heavily dependent upon securitization for funding, and new securitization transactions have been minimal. Our model projections anticipate that prepayment rates gradually revert to historical levels. For seasoned ARM transactions, normalized prepayment rates range from 12% to 16% CPR. For fixed rate collateral (one transaction), the prepayment speeds are projected to remain stable. | |||||||||||||||||||||||||
Default assumptions are largely based on the volume of existing real estate owned, pending foreclosures and severe delinquencies. Other considerations include the quality of loan underwriting, recent default experience, realized loss performance and the volume of less severe delinquencies. Default levels generally are projected to remain elevated or increase for a period of time sufficient to address the level of distressed loans in the transaction. Our projections expect defaults to then decline, generally beginning in year three. Current loss severity assumptions are based on recent observations when meaningful data is available. Loss severity is expected to remain elevated for the next 12 months. Severity is expected to decline after this period due to improving overall economic conditions, improving real estate prices and a reduced inventory of foreclosed properties on the market. Except for three securities discussed in further detail below (all three are currently below investment grade), our cash flow analysis forecasts complete recovery of our cost basis for each reviewed security. | |||||||||||||||||||||||||
At December 31, 2013 three below investment grade private label residential mortgage-backed securities had credit related OTTI and are summarized as follows: | |||||||||||||||||||||||||
Senior | Super | Senior | Total | ||||||||||||||||||||||
Security | Senior | Support | |||||||||||||||||||||||
Security | Security | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair value | $ | 2,453 | $ | 1,731 | $ | 47 | $ | 4,231 | |||||||||||||||||
Amortized cost | 2,820 | 1,666 | - | 4,486 | |||||||||||||||||||||
Non-credit unrealized loss | 367 | - | - | 367 | |||||||||||||||||||||
Unrealized gain | - | 65 | 47 | 112 | |||||||||||||||||||||
Cumulative credit related OTTI | 748 | 457 | 380 | 1,585 | |||||||||||||||||||||
Credit related OTTI recognized in our Consolidated | |||||||||||||||||||||||||
Statements of Operations | |||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||
2013 | 26 | - | - | 26 | |||||||||||||||||||||
2012 | 247 | 32 | 60 | 339 | |||||||||||||||||||||
2011 | 213 | 425 | 122 | 760 | |||||||||||||||||||||
These securities, except the senior support security with a zero amortized cost basis, are receiving principal and interest payments similar to principal reductions in the underlying collateral. Two of these securities have unrealized gains and one has an unrealized loss at December 31, 2013. Prior to the second quarter of 2013 all three of these securities had an unrealized loss. The original amortized cost for each of these securities has been permanently adjusted downward for previously recorded credit related OTTI. The unrealized loss (based on original amortized cost) for two of these securities is now less than previously recorded credit related OTTI amounts. The remaining non-credit related unrealized loss in the senior security is attributed to other factors and is reflected in other comprehensive income during those same periods. | |||||||||||||||||||||||||
As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no other declines discussed above are deemed to be other than temporary. | |||||||||||||||||||||||||
Other asset backed — at December 31, 2013 we had 16 other asset backed securities whose fair value is less than amortized cost. The unrealized losses are primarily due widening discount margins. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
Obligations of states and political subdivisions — at December 31, 2013 we had 149 municipal securities whose fair value is less than amortized cost. The increase in unrealized losses during 2013 is primarily due to increases in interest rates. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
Corporate — at December 31, 2013 we had six corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening. As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
Trust preferred securities — at December 31, 2013 we had three trust preferred securities whose fair value is less than amortized cost. All of our trust preferred securities are single issue securities issued by a trust subsidiary of a bank holding company. The pricing of trust preferred securities over the past several years has | |||||||||||||||||||||||||
suffered from credit spread widening fueled by uncertainty regarding potential losses of financial companies and repricing of risk related to these hybrid capital securities. | |||||||||||||||||||||||||
One of the three securities is rated by two major rating agencies as investment grade, while one (a Bank of America issuance) is rated below investment grade by two major rating agencies and the other one is non-rated. The non-rated issue is a relatively small bank and was never rated. The issuer of this non-rated trust preferred security, which had a total amortized cost of $1.0 million and total fair value of $0.8 million as of December 31, 2013, continues to have satisfactory credit metrics and make interest payments. | |||||||||||||||||||||||||
The following table breaks out our trust preferred securities in further detail as of December 31: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Fair | Net | Fair | Net | ||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Trust preferred securities | |||||||||||||||||||||||||
Rated issues | $ | 1,600 | $ | (302 | ) | $ | 1,581 | $ | (316 | ) | |||||||||||||||
Unrated issues | 825 | (175 | ) | 1,508 | (1,299 | ) | |||||||||||||||||||
As management does not intend to liquidate these securities and it is more likely than not that we will not be required to sell these securities prior to recovery of these unrealized losses, no declines are deemed to be other than temporary. | |||||||||||||||||||||||||
During 2013, 2012 and 2011 we recorded in earnings OTTI charges on securities available for sale of $0.03 million, $0.3 million and $0.8 million respectively. | |||||||||||||||||||||||||
A rollforward of credit losses recognized in earnings on securities available for sale for the years ending December 31 follow: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 1,809 | $ | 1,470 | $ | 710 | |||||||||||||||||||
Additions to credit losses on securities for which no previous OTTI was recognized | - | - | 425 | ||||||||||||||||||||||
Increases to credit losses on securities for which OTTI was previously recognized | 26 | 339 | 335 | ||||||||||||||||||||||
Balance at end of year | $ | 1,835 | $ | 1,809 | $ | 1,470 | |||||||||||||||||||
The amortized cost and fair value of securities available for sale at December 31, 2013, by contractual maturity, follow. The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Maturing within one year | $ | 14,942 | $ | 14,952 | |||||||||||||||||||||
Maturing after one year but within five years | 84,253 | 84,306 | |||||||||||||||||||||||
Maturing after five years but within ten years | 32,864 | 32,478 | |||||||||||||||||||||||
Maturing after ten years | 80,035 | 75,312 | |||||||||||||||||||||||
212,094 | 207,048 | ||||||||||||||||||||||||
U.S. agency residential mortgage-backed | 202,649 | 203,460 | |||||||||||||||||||||||
Private label residential mortgage-backed | 7,294 | 6,788 | |||||||||||||||||||||||
Other asset backed | 45,369 | 45,185 | |||||||||||||||||||||||
Total | $ | 467,406 | $ | 462,481 | |||||||||||||||||||||
A summary of proceeds from the sale of securities available for sale and gains and losses follows: | |||||||||||||||||||||||||
Proceeds | Realized | Losses(1) | |||||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | $ | 2,940 | $ | 15 | $ | 8 | |||||||||||||||||||
2012 | 37,176 | 1,193 | - | ||||||||||||||||||||||
2011 | 70,322 | 279 | 75 | ||||||||||||||||||||||
(1) Losses in 2013, 2012 and 2011 exclude $0.03 million, $0.3 million and $0.8 million, respectively of other than temporary impairment. | |||||||||||||||||||||||||
During 2013, 2012 and 2011 our trading securities consisted of various preferred stocks. During each of those years we recognized gains on trading securities of $0.39 million, $0.03 million and $0.04 million, respectively that are included in net gains (losses) on securities in the Consolidated Statements of Operations. Of these amounts, $0.39 million and $0.03 million relates to gains (losses) recognized on trading securities still held at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Securities with a book value of $10.7 million and $23.1 million at December 31, 2013 and 2012, respectively, were pledged to secure borrowings, public deposits and for other purposes as required by law. There were no investment obligations of state and political subdivisions that were payable from or secured by the same source of revenue or taxing authority that exceeded 10% of consolidated shareholders’ equity at December 31, 2013 or 2012. |
LOANS_AND_PAYMENT_PLAN_RECEIVA
LOANS AND PAYMENT PLAN RECEIVABLES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
LOANS AND PAYMENT PLAN RECEIVABLES [Abstract] | ' | ||||||||||||||||||||||||
LOANS AND PAYMENT PLAN RECEIVABLES | ' | ||||||||||||||||||||||||
NOTE 4 - LOANS AND PAYMENT PLAN RECEIVABLES | |||||||||||||||||||||||||
Our loan portfolios at December 31 follow: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Real estate(1) | |||||||||||||||||||||||||
Residential first mortgages | $ | 431,812 | $ | 468,636 | |||||||||||||||||||||
Residential home equity and other junior mortgages | 113,703 | 121,235 | |||||||||||||||||||||||
Construction and land development | 50,290 | 56,183 | |||||||||||||||||||||||
Other(2) | 440,348 | 434,336 | |||||||||||||||||||||||
Commercial | 146,954 | 132,904 | |||||||||||||||||||||||
Consumer | 126,443 | 117,077 | |||||||||||||||||||||||
Payment plan receivables | 60,638 | 84,692 | |||||||||||||||||||||||
Agricultural | 4,382 | 4,076 | |||||||||||||||||||||||
Total loans | $ | 1,374,570 | $ | 1,419,139 | |||||||||||||||||||||
(1) Includes both residential and non-residential commercial loans secured by real estate. | |||||||||||||||||||||||||
(2) Includes loans secured by multi-family residential and non-farm, non-residential property. | |||||||||||||||||||||||||
Loans include net deferred loan costs of $0.2 million at both December 31, 2013 and 2012. Payment plan receivables totaling $64.7 million and $90.8 million at December 31, 2013 and 2012, respectively, are presented net of unamortized discount of $4.1 million and $6.2 million at December 31, 2013 and 2012, respectively. These payment plan receivables had effective yields of 15% at both December 31, 2013 and 2012, respectively. These receivables have various due dates through December, 2015. | |||||||||||||||||||||||||
An analysis of the allowance for loan losses by portfolio segment for the years ended December 31 follows: | |||||||||||||||||||||||||
Commercial | Mortgage | Installment | Payment | Unallocated | Total | ||||||||||||||||||||
Plan | |||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | |||||||||||||
Additions (deductions) | |||||||||||||||||||||||||
Provision for loan losses | (2,336 | ) | 71 | 314 | (93 | ) | (1,944 | ) | (3,988 | ) | |||||||||||||||
Recoveries credited to allowance | 5,119 | 1,996 | 1,074 | 81 | - | 8,270 | |||||||||||||||||||
Loans charged against the allowance | (7,358 | ) | (6,319 | ) | (2,520 | ) | (35 | ) | - | (16,232 | ) | ||||||||||||||
Balance at end of period | $ | 6,827 | $ | 17,195 | $ | 2,246 | $ | 97 | $ | 5,960 | $ | 32,325 | |||||||||||||
2012 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 18,183 | $ | 22,885 | $ | 6,146 | $ | 197 | $ | 11,473 | $ | 58,884 | |||||||||||||
Additions (deductions) | |||||||||||||||||||||||||
Provision for loan losses | 2,351 | 7,778 | 15 | (3 | ) | (3,254 | ) | 6,887 | |||||||||||||||||
Recoveries credited to allowance | 3,610 | 1,581 | 1,311 | 20 | - | 6,522 | |||||||||||||||||||
Loans charged against the allowance | (12,588 | ) | (10,741 | ) | (4,009 | ) | (70 | ) | - | (27,408 | ) | ||||||||||||||
Reclassification to loans held for sale | (154 | ) | (56 | ) | (85 | ) | - | (315 | ) | (610 | ) | ||||||||||||||
Balance at end of period | $ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | |||||||||||||
2011 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 23,836 | $ | 22,642 | $ | 6,769 | $ | 389 | $ | 14,279 | $ | 67,915 | |||||||||||||
Additions (deductions) | |||||||||||||||||||||||||
Provision for loan losses | 12,988 | 14,410 | 3,365 | (11 | ) | (2,806 | ) | 27,946 | |||||||||||||||||
Recoveries credited to allowance | 1,850 | 1,441 | 1,451 | 5 | - | 4,747 | |||||||||||||||||||
Loans charged against the allowance | (20,491 | ) | (15,608 | ) | (5,439 | ) | (186 | ) | - | (41,724 | ) | ||||||||||||||
Balance at end of period | $ | 18,183 | $ | 22,885 | $ | 6,146 | $ | 197 | $ | 11,473 | $ | 58,884 | |||||||||||||
Allowance for loan losses and recorded investment in loans by portfolio segment at December 31 follows: | |||||||||||||||||||||||||
Commercial | Mortgage | Installment | Payment | Unallocated | Total | ||||||||||||||||||||
Plan | |||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,878 | $ | 10,488 | $ | 792 | $ | - | $ | - | $ | 15,158 | |||||||||||||
Collectively evaluated for impairment | 2,949 | 6,707 | 1,454 | 97 | 5,960 | 17,167 | |||||||||||||||||||
Total ending allowance balance | $ | 6,827 | $ | 17,195 | $ | 2,246 | $ | 97 | $ | 5,960 | $ | 32,325 | |||||||||||||
Loans | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 40,623 | $ | 78,022 | $ | 7,068 | $ | - | $ | 125,713 | |||||||||||||||
Collectively evaluated for impairment | 596,235 | 410,887 | 185,676 | 60,638 | 1,253,436 | ||||||||||||||||||||
Total loans recorded investment | 636,858 | 488,909 | 192,744 | 60,638 | 1,379,149 | ||||||||||||||||||||
Accrued interest included in recorded investment | 1,624 | 2,276 | 679 | - | 4,579 | ||||||||||||||||||||
Total loans | $ | 635,234 | $ | 486,633 | $ | 192,065 | $ | 60,638 | $ | 1,374,570 | |||||||||||||||
2012 | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,558 | $ | 12,869 | $ | 1,582 | $ | - | $ | - | $ | 21,009 | |||||||||||||
Collectively evaluated for impairment | 4,844 | 8,578 | 1,796 | 144 | 7,904 | 23,266 | |||||||||||||||||||
Total ending allowance balance | $ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | |||||||||||||
Loans | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 55,634 | $ | 88,028 | $ | 7,505 | $ | - | $ | 151,167 | |||||||||||||||
Collectively evaluated for impairment | 563,316 | 441,703 | 183,090 | 84,692 | 1,272,801 | ||||||||||||||||||||
Total loans recorded investment | 618,950 | 529,731 | 190,595 | 84,692 | 1,423,968 | ||||||||||||||||||||
Accrued interest included in recorded | 1,692 | 2,391 | 746 | - | 4,829 | ||||||||||||||||||||
investment | |||||||||||||||||||||||||
Total loans | $ | 617,258 | $ | 527,340 | $ | 189,849 | $ | 84,692 | $ | 1,419,139 | |||||||||||||||
Non-performing loans at December 31 follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Non-accrual loans | $ | 17,905 | $ | 32,929 | |||||||||||||||||||||
Loans 90 days or more past due and still accruing interest | - | 7 | |||||||||||||||||||||||
Total non-performing loans | $ | 17,905 | $ | 32,936 | |||||||||||||||||||||
Non performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. If these loans had continued to accrue interest in accordance with their original terms, approximately $1.2 million, $2.3 million, and $3.2 million of interest income would have been recognized in 2013, 2012 and 2011, respectively. Interest income recorded on these loans was approximately $0.1 million in each of the years ended 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Non performing loans by class as of December 31 follows: | |||||||||||||||||||||||||
90+ and | Non- | Total Non- | |||||||||||||||||||||||
Still | Accrual | Performing | |||||||||||||||||||||||
Accruing | Loans | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | 1,899 | $ | 1,899 | |||||||||||||||||||
Land, land development and construction - real estate | - | 1,036 | 1,036 | ||||||||||||||||||||||
Commercial and industrial | - | 2,434 | 2,434 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | - | 6,594 | 6,594 | ||||||||||||||||||||||
Resort lending | - | 2,668 | 2,668 | ||||||||||||||||||||||
Home equity - 1st lien | - | 415 | 415 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 689 | 689 | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | - | 938 | 938 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 571 | 571 | ||||||||||||||||||||||
Loans not secured by real estate | - | 638 | 638 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | - | 20 | 20 | ||||||||||||||||||||||
Partial refund | - | 3 | 3 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total recorded investment | $ | - | $ | 17,905 | $ | 17,905 | |||||||||||||||||||
Accrued interest included in recorded investment | $ | - | $ | - | $ | - | |||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | 5,611 | $ | 5,611 | |||||||||||||||||||
Land, land development and construction - real estate | - | 4,062 | 4,062 | ||||||||||||||||||||||
Commercial and industrial | - | 5,080 | 5,080 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 7 | 9,654 | 9,661 | ||||||||||||||||||||||
Resort lending | - | 4,861 | 4,861 | ||||||||||||||||||||||
Home equity - 1st lien | - | 529 | 529 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 685 | 685 | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | - | 1,278 | 1,278 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 675 | 675 | ||||||||||||||||||||||
Loans not secured by real estate | - | 390 | 390 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | - | 57 | 57 | ||||||||||||||||||||||
Partial refund | - | 38 | 38 | ||||||||||||||||||||||
Other | - | 9 | 9 | ||||||||||||||||||||||
Total recorded investment | $ | 7 | $ | 32,929 | $ | 32,936 | |||||||||||||||||||
Accrued interest included in recorded investment | $ | - | $ | - | $ | - | |||||||||||||||||||
An aging analysis of loans by class at December 31 follows: | |||||||||||||||||||||||||
Loans Past Due | |||||||||||||||||||||||||
30-59 days | 60-89 days | 90+ days | Total | Loans not | Total | ||||||||||||||||||||
Past Due | Loans | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 1,014 | $ | 428 | $ | 878 | $ | 2,320 | $ | 249,313 | $ | 251,633 | |||||||||||||
Land, land development and construction - real estate | 781 | 129 | 256 | 1,166 | 30,670 | 31,836 | |||||||||||||||||||
Commercial and industrial | 1,155 | 1,665 | 318 | 3,138 | 350,251 | 353,389 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 3,750 | 224 | 6,594 | 10,568 | 270,855 | 281,423 | |||||||||||||||||||
Resort lending | 698 | 234 | 2,668 | 3,600 | 142,356 | 145,956 | |||||||||||||||||||
Home equity - 1st lien | 172 | - | 415 | 587 | 18,214 | 18,801 | |||||||||||||||||||
Home equity - 2nd lien | 663 | 73 | 689 | 1,425 | 41,304 | 42,729 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 557 | 134 | 938 | 1,629 | 25,513 | 27,142 | |||||||||||||||||||
Home equity - 2nd lien | 536 | 136 | 571 | 1,243 | 36,701 | 37,944 | |||||||||||||||||||
Loans not secured by real | 833 | 281 | 638 | 1,752 | 123,295 | 125,047 | |||||||||||||||||||
estate | |||||||||||||||||||||||||
Other | 22 | 12 | - | 34 | 2,577 | 2,611 | |||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | 1,364 | 349 | 20 | 1,733 | 46,344 | 48,077 | |||||||||||||||||||
Partial refund | 190 | 20 | 3 | 213 | 4,840 | 5,053 | |||||||||||||||||||
Other | 122 | 4 | - | 126 | 7,382 | 7,508 | |||||||||||||||||||
Total recorded investment | $ | 11,857 | $ | 3,689 | $ | 13,988 | $ | 29,534 | $ | 1,349,615 | $ | 1,379,149 | |||||||||||||
Accrued interest included in recorded investment | $ | 100 | $ | 26 | $ | - | $ | 126 | $ | 4,453 | $ | 4,579 | |||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 3,734 | $ | 609 | $ | 2,826 | $ | 7,169 | $ | 215,623 | $ | 222,792 | |||||||||||||
Land, land development and construction - real estate | 336 | - | 1,176 | 1,512 | 41,750 | 43,262 | |||||||||||||||||||
Commercial and industrial | 2,522 | 654 | 1,913 | 5,089 | 347,807 | 352,896 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 4,429 | 1,115 | 9,661 | 15,205 | 279,132 | 294,337 | |||||||||||||||||||
Resort lending | 748 | 370 | 4,861 | 5,979 | 164,414 | 170,393 | |||||||||||||||||||
Home equity - 1st lien | 453 | 51 | 529 | 1,033 | 18,003 | 19,036 | |||||||||||||||||||
Home equity - 2nd lien | 442 | 32 | 685 | 1,159 | 44,806 | 45,965 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 599 | 140 | 1,278 | 2,017 | 30,368 | 32,385 | |||||||||||||||||||
Home equity - 2nd lien | 430 | 125 | 675 | 1,230 | 38,956 | 40,186 | |||||||||||||||||||
Loans not secured by real | 899 | 259 | 390 | 1,548 | 113,751 | 115,299 | |||||||||||||||||||
estate | |||||||||||||||||||||||||
Other | 24 | 12 | - | 36 | 2,689 | 2,725 | |||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | 2,249 | 552 | 57 | 2,858 | 77,335 | 80,193 | |||||||||||||||||||
Partial refund | 112 | 46 | 38 | 196 | 4,119 | 4,315 | |||||||||||||||||||
Other | 3 | 6 | 9 | 18 | 166 | 184 | |||||||||||||||||||
Total recorded investment | $ | 16,980 | $ | 3,971 | $ | 24,098 | $ | 45,049 | $ | 1,378,919 | $ | 1,423,968 | |||||||||||||
Accrued interest included in recorded investment | $ | 146 | $ | 43 | $ | - | $ | 189 | $ | 4,640 | $ | 4,829 | |||||||||||||
Impaired loans are as follows : | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans with no allocated allowance | |||||||||||||||||||||||||
TDR | $ | 13,006 | $ | 14,435 | |||||||||||||||||||||
Non - TDR | 334 | 418 | |||||||||||||||||||||||
Impaired loans with an allocated allowance | |||||||||||||||||||||||||
TDR - allowance based on collateral | 10,085 | 16,231 | |||||||||||||||||||||||
TDR - allowance based on present value cash flow | 101,131 | 112,997 | |||||||||||||||||||||||
Non - TDR - allowance based on collateral | 688 | 6,580 | |||||||||||||||||||||||
Non - TDR - allowance based on present value cash flow | - | - | |||||||||||||||||||||||
Total impaired loans | $ | 125,244 | $ | 150,661 | |||||||||||||||||||||
Amount of allowance for loan losses allocated | |||||||||||||||||||||||||
TDR - allowance based on collateral | $ | 3,127 | $ | 5,060 | |||||||||||||||||||||
TDR - allowance based on present value cash flow | 11,777 | 14,462 | |||||||||||||||||||||||
Non - TDR - allowance based on collateral | 254 | 1,487 | |||||||||||||||||||||||
Non - TDR - allowance based on present value cash flow | - | ||||||||||||||||||||||||
Total amount of allowance for loan losses allocated | $ | 15,158 | $ | 21,009 | |||||||||||||||||||||
During the second quarter of 2013 we sold certain commercial watch, substandard and non-performing loans as follows: | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Income producing - real estate | $ | 4,570 | |||||||||||||||||||||||
Land, land development and construction - real estate | 401 | ||||||||||||||||||||||||
Commercial and industrial | 3,630 | ||||||||||||||||||||||||
Total | $ | 8,601 | |||||||||||||||||||||||
Impaired loans by class as of December 31 are as follows (1): | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | ||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
With no related allowance recorded: | (In thousands) | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 7,042 | $ | 7,178 | $ | - | $ | 4,050 | $ | 4,672 | $ | - | |||||||||||||
Land, land development & construction-real estate | 2,185 | 3,217 | - | 3,304 | 3,294 | - | |||||||||||||||||||
Commercial and industrial | 4,110 | 4,087 | - | 2,611 | 2,592 | - | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 8 | 8 | - | - | - | - | |||||||||||||||||||
Resort lending | 35 | 163 | - | - | - | - | |||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | |||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | - | - | - | 2,027 | 2,219 | - | |||||||||||||||||||
Home equity - 2nd lien | - | - | - | 2,278 | 2,278 | - | |||||||||||||||||||
Loans not secured by real estate | - | - | - | 610 | 681 | - | |||||||||||||||||||
Other | - | - | - | 20 | 20 | - | |||||||||||||||||||
13,380 | 14,653 | - | 14,900 | 15,756 | - | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 14,538 | 15,631 | 1,161 | 20,628 | 24,250 | 1,822 | |||||||||||||||||||
Land, land development & construction-real estate | 3,366 | 4,130 | 686 | 8,808 | 11,971 | 1,986 | |||||||||||||||||||
Commercial and industrial | 9,382 | 9,529 | 2,031 | 16,233 | 18,564 | 2,750 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 57,612 | 60,768 | 7,236 | 64,160 | 68,418 | 8,518 | |||||||||||||||||||
Resort lending | 20,171 | 20,608 | 3,221 | 23,763 | 24,160 | 4,321 | |||||||||||||||||||
Home equity - 1st lien | 154 | 164 | 11 | 62 | 77 | 30 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 118 | 20 | 43 | 118 | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2,959 | 3,115 | 254 | 1,215 | 1,240 | 610 | |||||||||||||||||||
Home equity - 2nd lien | 3,352 | 3,347 | 462 | 1,161 | 1,174 | 930 | |||||||||||||||||||
Loans not secured by real estate | 741 | 902 | 75 | 194 | 194 | 42 | |||||||||||||||||||
Other | 16 | 16 | 1 | - | - | - | |||||||||||||||||||
112,333 | 118,328 | 15,158 | 136,267 | 150,166 | 21,009 | ||||||||||||||||||||
Total | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 21,580 | 22,809 | 1,161 | 24,678 | 28,922 | 1,822 | |||||||||||||||||||
Land, land development & construction-real estate | 5,551 | 7,347 | 686 | 12,112 | 15,265 | 1,986 | |||||||||||||||||||
Commercial and industrial | 13,492 | 13,616 | 2,031 | 18,844 | 21,156 | 2,750 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 57,620 | 60,776 | 7,236 | 64,160 | 68,418 | 8,518 | |||||||||||||||||||
Resort lending | 20,206 | 20,771 | 3,221 | 23,763 | 24,160 | 4,321 | |||||||||||||||||||
Home equity - 1st lien | 154 | 164 | 11 | 62 | 77 | 30 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 118 | 20 | 43 | 118 | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2,959 | 3,115 | 254 | 3,242 | 3,459 | 610 | |||||||||||||||||||
Home equity - 2nd lien | 3,352 | 3,347 | 462 | 3,439 | 3,452 | 930 | |||||||||||||||||||
Loans not secured by real estate | 741 | 902 | 75 | 804 | 875 | 42 | |||||||||||||||||||
Other | 16 | 16 | 1 | 20 | 20 | - | |||||||||||||||||||
Total | $ | 125,713 | $ | 132,981 | $ | 15,158 | $ | 151,167 | $ | 165,922 | $ | 21,009 | |||||||||||||
Accrued interest included in recorded investment | $ | 469 | $ | 506 | |||||||||||||||||||||
(1) There were no impaired payment plan receivables at December 31, 2013 or 2012. | |||||||||||||||||||||||||
Average recorded investment in and interest income earned on impaired loans by class for the years ended December 31 follows (1): | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
With no related allowance recorded: | (In thousands) | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 5,765 | $ | 340 | $ | 2,981 | $ | 166 | $ | 3,170 | $ | 170 | |||||||||||||
Land, land development & construction-real estate | 3,092 | 240 | 2,549 | 150 | 613 | 35 | |||||||||||||||||||
Commercial and industrial | 3,980 | 226 | 3,526 | 246 | 2,874 | 70 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 5 | 11 | 290 | - | 35 | - | |||||||||||||||||||
Resort lending | 28 | - | 222 | - | 166 | - | |||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | |||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 1,604 | 83 | 1,961 | 97 | 1,955 | 96 | |||||||||||||||||||
Home equity - 2nd lien | 1,841 | 96 | 2,093 | 111 | 2,014 | 93 | |||||||||||||||||||
Loans not secured by real estate | 470 | 23 | 549 | 30 | 598 | 31 | |||||||||||||||||||
Other | 15 | 1 | 22 | 2 | 15 | 2 | |||||||||||||||||||
16,800 | 1,020 | 14,193 | 802 | 11,440 | 497 | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 18,164 | 587 | 23,508 | 571 | 18,812 | 117 | |||||||||||||||||||
Land, land development & construction-real estate | 6,186 | 149 | 10,305 | 183 | 9,828 | 114 | |||||||||||||||||||
Commercial and industrial | 11,795 | 457 | 17,828 | 467 | 11,501 | 352 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 60,858 | 2,622 | 66,195 | 2,852 | 71,342 | 2,991 | |||||||||||||||||||
Resort lending | 21,708 | 836 | 24,286 | 1,000 | 29,335 | 1,064 | |||||||||||||||||||
Home equity - 1st lien | 136 | 4 | 65 | 2 | 32 | 2 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 2 | 81 | 3 | 127 | 4 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 1,448 | 85 | 1,432 | 50 | 1,408 | 60 | |||||||||||||||||||
Home equity - 2nd lien | 1,546 | 86 | 1,325 | 51 | 1,466 | 66 | |||||||||||||||||||
Loans not secured by real estate | 314 | 17 | 221 | 10 | 168 | 6 | |||||||||||||||||||
Other | 3 | 1 | - | - | - | - | |||||||||||||||||||
122,200 | 4,846 | 145,246 | 5,189 | 144,019 | 4,776 | ||||||||||||||||||||
Total | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 23,929 | 927 | 26,489 | 737 | 21,982 | 287 | |||||||||||||||||||
Land, land development & construction-real estate | 9,278 | 389 | 12,854 | 333 | 10,441 | 149 | |||||||||||||||||||
Commercial and industrial | 15,775 | 683 | 21,354 | 713 | 14,375 | 422 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 60,863 | 2,633 | 66,485 | 2,852 | 71,377 | 2,991 | |||||||||||||||||||
Resort lending | 21,736 | 836 | 24,508 | 1,000 | 29,501 | 1,064 | |||||||||||||||||||
Home equity - 1st lien | 136 | 4 | 65 | 2 | 32 | 2 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 2 | 81 | 3 | 127 | 4 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 3,052 | 168 | 3,393 | 147 | 3,363 | 156 | |||||||||||||||||||
Home equity - 2nd lien | 3,387 | 182 | 3,418 | 162 | 3,480 | 159 | |||||||||||||||||||
Loans not secured by real estate | 784 | 40 | 770 | 40 | 766 | 37 | |||||||||||||||||||
Other | 18 | 2 | 22 | 2 | 15 | 2 | |||||||||||||||||||
Total | $ | 139,000 | $ | 5,866 | $ | 159,439 | $ | 5,991 | $ | 155,459 | $ | 5,273 | |||||||||||||
-1 | There were no impaired payment plan receivables during the years ending December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Our average investment in impaired loans was approximately $139.0 million, $159.4 million and $155.5 million in 2013, 2012 and 2011, respectively. Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance. Interest income recognized on impaired loans was approximately $5.9 million, $6.0 million and $5.3 million in 2013, 2012 and 2011, respectively of which the majority of these amounts were received in cash. | |||||||||||||||||||||||||
Troubled debt restructurings at December 31 follow: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | Retail | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Performing TDR’s | $ | 35,134 | $ | 79,753 | $ | 114,887 | |||||||||||||||||||
Non-performing TDR’s(1) | 4,347 | 4,988 | (2) | 9,335 | |||||||||||||||||||||
Total | $ | 39,481 | $ | 84,741 | $ | 124,222 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | Retail | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Performing TDR’s | $ | 40,753 | $ | 85,977 | $ | 126,730 | |||||||||||||||||||
Non-performing TDR’s(1) | 7,756 | 9,177 | (2) | 16,933 | |||||||||||||||||||||
Total | $ | 48,509 | $ | 95,154 | $ | 143,663 | |||||||||||||||||||
-1 | Included in non-performing loans table. | ||||||||||||||||||||||||
-2 | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. | ||||||||||||||||||||||||
We have allocated $14.9 million and $19.5 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of December 31, 2013 and 2012, respectively. We have committed to lend additional amounts totaling up to $0.17 and $0.02 million as of December 31, 2013 and 2012, respectively, to customers with outstanding loans that are classified as troubled debt restructurings. | |||||||||||||||||||||||||
The terms of certain loans were modified as troubled debt restructurings and generally included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. | |||||||||||||||||||||||||
Modifications involving a reduction of the stated interest rate of the loan have generally been for periods ranging from 9 months to 60 months but have extended to as much as 480 months in certain circumstances. Modifications involving an extension of the maturity date have generally been for periods ranging from 1 month to 60 months but have extended to as much as 193 months in certain circumstances. | |||||||||||||||||||||||||
Loans that have been classified as troubled debt restructurings during the years ended December 31 follows: | |||||||||||||||||||||||||
Number of | Pre-modification | Post-modification | |||||||||||||||||||||||
Contracts | Recorded | Recorded | |||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 6 | $ | 4,798 | $ | 3,869 | ||||||||||||||||||||
Land, land development & construction-real estate | 1 | 16 | - | ||||||||||||||||||||||
Commercial and industrial | 23 | 2,522 | 1,901 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 20 | 1,968 | 1,995 | ||||||||||||||||||||||
Resort lending | 5 | 1,240 | 1,231 | ||||||||||||||||||||||
Home equity - 1st lien | 1 | 95 | 97 | ||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 25 | 659 | 657 | ||||||||||||||||||||||
Home equity - 2nd lien | 16 | 508 | 508 | ||||||||||||||||||||||
Loans not secured by real estate | 5 | 149 | 110 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total | 102 | $ | 11,955 | $ | 10,368 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 20 | $ | 9,464 | $ | 8,568 | ||||||||||||||||||||
Land, land development & construction-real estate | 9 | 4,800 | 4,858 | ||||||||||||||||||||||
Commercial and industrial | 50 | 9,951 | 7,905 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 66 | 8,900 | 8,488 | ||||||||||||||||||||||
Resort lending | 31 | 7,750 | 7,514 | ||||||||||||||||||||||
Home equity - 1st lien | 1 | 15 | - | ||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 18 | 666 | 632 | ||||||||||||||||||||||
Home equity - 2nd lien | 24 | 784 | 768 | ||||||||||||||||||||||
Loans not secured by real estate | 13 | 325 | 304 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total | 232 | $ | 42,655 | $ | 39,037 | ||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 42 | $ | 21,061 | $ | 17,679 | ||||||||||||||||||||
Land, land development & construction-real estate | 20 | 10,801 | 7,464 | ||||||||||||||||||||||
Commercial and industrial | 64 | 11,133 | 10,649 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 73 | 9,933 | 9,423 | ||||||||||||||||||||||
Resort lending | 33 | 8,893 | 8,749 | ||||||||||||||||||||||
Home equity - 1st lien | 2 | 69 | 64 | ||||||||||||||||||||||
Home equity - 2nd lien | 1 | 23 | 18 | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 21 | 678 | 618 | ||||||||||||||||||||||
Home equity - 2nd lien | 16 | 535 | 514 | ||||||||||||||||||||||
Loans not secured by real estate | 26 | 455 | 442 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total | 298 | $ | 63,581 | $ | 55,620 | ||||||||||||||||||||
The troubled debt restructurings described above increased (decreased) the allowance for loan losses by $(0.3) million, $1.6 million and $3.4 million during the years ended December 31, 2013, 2012 and 2011, respectively and resulted in charge offs of $0.5 million, $1.0 million and $4.7 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Loans that have been classified as troubled debt restructured during the past twelve months and that have subsequently defaulted during the years ended December 31 follows: | |||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||
Contracts | Balance | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 1 | $ | 693 | ||||||||||||||||||||||
Land, land development & construction-real estate | 1 | 334 | |||||||||||||||||||||||
Commercial and industrial | 2 | 143 | |||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 1 | 106 | |||||||||||||||||||||||
Resort lending | 1 | 156 | |||||||||||||||||||||||
Home equity - 1st lien | - | - | |||||||||||||||||||||||
Home equity - 2nd lien | - | - | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2 | 32 | |||||||||||||||||||||||
Home equity - 2nd lien | 1 | 22 | |||||||||||||||||||||||
Loans not secured by real estate | - | - | |||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||
Total | 9 | $ | 1,486 | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 2 | $ | 827 | ||||||||||||||||||||||
Land, land development & construction-real estate | - | - | |||||||||||||||||||||||
Commercial and industrial | 5 | 230 | |||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 2 | 148 | |||||||||||||||||||||||
Resort lending | 4 | 887 | |||||||||||||||||||||||
Home equity - 1st lien | - | - | |||||||||||||||||||||||
Home equity - 2nd lien | - | - | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2 | 234 | |||||||||||||||||||||||
Home equity - 2nd lien | 1 | 20 | |||||||||||||||||||||||
Loans not secured by real estate | - | - | |||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||
Total | 16 | $ | 2,346 | ||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 7 | $ | 3,604 | ||||||||||||||||||||||
Land, land development & construction-real estate | 4 | 3,036 | |||||||||||||||||||||||
Commercial and industrial | 2 | 492 | |||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 10 | 1,191 | |||||||||||||||||||||||
Resort lending | 6 | 1,311 | |||||||||||||||||||||||
Home equity - 1st lien | - | - | |||||||||||||||||||||||
Home equity - 2nd lien | - | - | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 1 | 19 | |||||||||||||||||||||||
Home equity - 2nd lien | 5 | 301 | |||||||||||||||||||||||
Loans not secured by real estate | - | - | |||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||
Total | 35 | $ | 9,954 | ||||||||||||||||||||||
A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms for commercial loans and installment loans and when four consecutive payments are missed for mortgage loans. | |||||||||||||||||||||||||
The troubled debt restructurings that subsequently defaulted described above increased the allowance for loan losses by zero, $0.3 million and $1.9 million during the years ended December 31, 2013, 2012 and 2011, respectively and resulted in charge offs of $0.2 million, $0.8 million and $1.8 million during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The terms of certain other loans were modified during the years ending December 31, 2013, 2012 and 2011 that did not meet the definition of a troubled debt restructuring. The modification of these loans could have included modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. | |||||||||||||||||||||||||
In order to determine whether a borrower is experiencing financial difficulty, we perform an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under our internal underwriting policy. | |||||||||||||||||||||||||
Credit Quality Indicators – As part of our on on-going monitoring of the credit quality of our loan portfolios, we track certain credit quality indicators including (a) weighted-average risk grade of commercial loans, (b) the level of classified commercial loans (c) credit scores of mortgage and installment loan borrowers (d) investment grade of certain counterparties for payment plan receivables and (e) delinquency history and non-performing loans. | |||||||||||||||||||||||||
For commercial loans we use a loan rating system that is similar to those employed by state and federal banking regulators. Loans are graded on a scale of 1 to 12. A description of the general characteristics of the ratings follows: | |||||||||||||||||||||||||
Rating 1 through 6: These loans are generally referred to as our “non-watch” commercial credits that include very high or exceptional credit fundamentals through acceptable credit fundamentals. | |||||||||||||||||||||||||
Rating 7 and 8: These loans are generally referred to as our “watch” commercial credits. This rating includes loans to borrowers that exhibit potential credit weakness or downward trends. If not checked or cured these trends could weaken our asset or credit position. While potentially weak, no loss of principal or interest is envisioned with these ratings. | |||||||||||||||||||||||||
Rating 9: These loans are generally referred to as our “substandard accruing” commercial credits. This rating includes loans to borrowers that exhibit a well-defined weakness where payment default is probable and loss is possible if deficiencies are not corrected. Generally, loans with this rating are considered collectible as to both principal and interest primarily due to collateral coverage. | |||||||||||||||||||||||||
Rating 10 and 11: These loans are generally referred to as our “substandard - non-accrual” and “doubtful” commercial credits. This rating includes loans to borrowers with weaknesses that make collection of debt in full, on the basis of current facts, conditions and values at best questionable and at worst improbable. All of these loans are placed in non-accrual. | |||||||||||||||||||||||||
Rating 12: These loans are generally referred to as our “loss” commercial credits. This rating includes loans to borrowers that are deemed incapable of repayment and are charged-off. | |||||||||||||||||||||||||
The following table summarizes loan ratings by loan class for our commercial loan segment at December 31: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Non-watch | Watch | Substandard | Non | Total | |||||||||||||||||||||
6-Jan | 8-Jul | Accrual | Accrual | ||||||||||||||||||||||
9 | 11-Oct | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Income producing - real estate | $ | 227,957 | $ | 17,882 | $ | 3,895 | $ | 1,899 | $ | 251,633 | |||||||||||||||
Land, land development and construction - real estate | 25,654 | 4,829 | 317 | 1,036 | 31,836 | ||||||||||||||||||||
Commercial and industrial | 318,183 | 26,303 | 6,469 | 2,434 | 353,389 | ||||||||||||||||||||
Total | $ | 571,794 | $ | 49,014 | $ | 10,681 | $ | 5,369 | $ | 636,858 | |||||||||||||||
Accrued interest included in total | $ | 1,433 | $ | 147 | $ | 44 | $ | - | $ | 1,624 | |||||||||||||||
2012 | |||||||||||||||||||||||||
Income producing - real estate | $ | 183,530 | $ | 27,096 | $ | 6,555 | $ | 5,611 | $ | 222,792 | |||||||||||||||
Land, land development and construction - real estate | 32,784 | 3,457 | 2,959 | 4,062 | 43,262 | ||||||||||||||||||||
Commercial and industrial | 307,566 | 26,954 | 13,296 | 5,080 | 352,896 | ||||||||||||||||||||
Total | $ | 523,880 | $ | 57,507 | $ | 22,810 | $ | 14,753 | $ | 618,950 | |||||||||||||||
Accrued interest included in total | $ | 1,417 | $ | 163 | $ | 112 | $ | - | $ | 1,692 | |||||||||||||||
For each of our mortgage and installment segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated at least annually. The following tables summarize credit scores by loan class for our mortgage and installment loan segments at December 31: | |||||||||||||||||||||||||
Mortgage (1) | |||||||||||||||||||||||||
1-4 Family | Resort | Home | Home | Total | |||||||||||||||||||||
Lending | Equity | Equity | |||||||||||||||||||||||
1st Lien | 2nd Lien | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
800 and above | $ | 23,924 | $ | 13,487 | $ | 3,650 | $ | 5,354 | $ | 46,415 | |||||||||||||||
750-799 | 60,728 | 56,880 | 4,560 | 11,809 | 133,977 | ||||||||||||||||||||
700-749 | 58,269 | 35,767 | 3,289 | 8,628 | 105,953 | ||||||||||||||||||||
650-699 | 49,771 | 21,696 | 2,316 | 7,145 | 80,928 | ||||||||||||||||||||
600-649 | 34,991 | 8,555 | 2,621 | 5,141 | 51,308 | ||||||||||||||||||||
550-599 | 24,616 | 3,261 | 1,165 | 2,485 | 31,527 | ||||||||||||||||||||
500-549 | 14,823 | 2,271 | 644 | 1,560 | 19,298 | ||||||||||||||||||||
Under 500 | 9,492 | 1,160 | 323 | 360 | 11,335 | ||||||||||||||||||||
Unknown | 4,809 | 2,879 | 233 | 247 | 8,168 | ||||||||||||||||||||
Total | $ | 281,423 | $ | 145,956 | $ | 18,801 | $ | 42,729 | $ | 488,909 | |||||||||||||||
Accrued interest included in total | $ | 1,300 | $ | 650 | $ | 97 | $ | 229 | $ | 2,276 | |||||||||||||||
2012 | |||||||||||||||||||||||||
800 and above | $ | 19,638 | $ | 15,430 | $ | 3,031 | $ | 5,515 | $ | 43,614 | |||||||||||||||
750-799 | 62,419 | 67,094 | 4,758 | 12,783 | 147,054 | ||||||||||||||||||||
700-749 | 59,594 | 41,860 | 3,293 | 9,177 | 113,924 | ||||||||||||||||||||
650-699 | 57,584 | 17,685 | 2,309 | 7,987 | 85,565 | ||||||||||||||||||||
600-649 | 31,465 | 12,317 | 3,311 | 4,775 | 51,868 | ||||||||||||||||||||
550-599 | 27,739 | 7,887 | 964 | 2,754 | 39,344 | ||||||||||||||||||||
500-549 | 20,243 | 1,212 | 656 | 1,997 | 24,108 | ||||||||||||||||||||
Under 500 | 9,470 | 1,637 | 456 | 789 | 12,352 | ||||||||||||||||||||
Unknown | 6,185 | 5,271 | 258 | 188 | 11,902 | ||||||||||||||||||||
Total | $ | 294,337 | $ | 170,393 | $ | 19,036 | $ | 45,965 | $ | 529,731 | |||||||||||||||
Accrued interest included in total | $ | 1,319 | $ | 750 | $ | 91 | $ | 231 | $ | 2,391 | |||||||||||||||
(1) Credit scores have been updated within the last twelve months. | |||||||||||||||||||||||||
Installment(1) | |||||||||||||||||||||||||
Home | Home | Loans not | Other | Total | |||||||||||||||||||||
Equity | Equity | Secured by | |||||||||||||||||||||||
1st Lien | 2nd Lien | Real Estate | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
800 and above | $ | 2,977 | $ | 3,062 | $ | 23,649 | $ | 53 | $ | 29,741 | |||||||||||||||
750-799 | 6,585 | 11,197 | 48,585 | 557 | 66,924 | ||||||||||||||||||||
700-749 | 4,353 | 9,487 | 25,343 | 683 | 39,866 | ||||||||||||||||||||
650-699 | 4,815 | 6,832 | 15,256 | 646 | 27,549 | ||||||||||||||||||||
600-649 | 3,173 | 2,824 | 5,289 | 258 | 11,544 | ||||||||||||||||||||
550-599 | 2,843 | 2,084 | 2,785 | 213 | 7,925 | ||||||||||||||||||||
500-549 | 1,483 | 1,715 | 1,732 | 130 | 5,060 | ||||||||||||||||||||
Under 500 | 751 | 663 | 516 | 29 | 1,959 | ||||||||||||||||||||
Unknown | 162 | 80 | 1,892 | 42 | 2,176 | ||||||||||||||||||||
Total | $ | 27,142 | $ | 37,944 | $ | 125,047 | $ | 2,611 | $ | 192,744 | |||||||||||||||
Accrued interest included in total | $ | 114 | $ | 144 | $ | 399 | $ | 22 | $ | 679 | |||||||||||||||
2012 | |||||||||||||||||||||||||
800 and above | $ | 3,909 | $ | 3,265 | $ | 19,293 | $ | 38 | $ | 26,505 | |||||||||||||||
750-799 | 7,394 | 11,300 | 43,740 | 462 | 62,896 | ||||||||||||||||||||
700-749 | 4,884 | 8,826 | 24,267 | 786 | 38,763 | ||||||||||||||||||||
650-699 | 5,925 | 7,164 | 13,758 | 710 | 27,557 | ||||||||||||||||||||
600-649 | 4,360 | 4,214 | 6,442 | 367 | 15,383 | ||||||||||||||||||||
550-599 | 3,226 | 2,716 | 3,428 | 188 | 9,558 | ||||||||||||||||||||
500-549 | 1,722 | 1,403 | 2,154 | 114 | 5,393 | ||||||||||||||||||||
Under 500 | 760 | 1,195 | 895 | 42 | 2,892 | ||||||||||||||||||||
Unknown | 205 | 103 | 1,322 | 18 | 1,648 | ||||||||||||||||||||
Total | $ | 32,385 | $ | 40,186 | $ | 115,299 | $ | 2,725 | $ | 190,595 | |||||||||||||||
Accrued interest included in total | $ | 137 | $ | 157 | $ | 429 | $ | 23 | $ | 746 | |||||||||||||||
(1) Credit scores have been updated within the last twelve months. | |||||||||||||||||||||||||
Mepco is a wholly-owned subsidiary of our Bank that operates a vehicle service contract payment plan business throughout the United States. See note #11 for more information about Mepco’s business. As of December 31, 2013, approximately 79.3% of Mepco’s outstanding payment plan receivables relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the full refund owing upon cancellation of the related service contract (including with respect to both the portion funded to the service contract seller and the portion funded to the administrator). These receivables are shown as “Full Refund” in the table below. Another approximately 8.3% of Mepco’s outstanding payment plan receivables as of December 31, 2013, relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the refund owing upon cancellation only with respect to the unearned portion previously funded by Mepco to the administrator (but not to the service contract seller). These receivables are shown as “Partial Refund” in the table below. The balance of Mepco’s outstanding payment plan receivables relate to programs in which there is no insurer or risk retention group that has any contractual liability to Mepco for any portion of the refund amount. These receivables are shown as “Other” in the table below. For each class of our payment plan receivables we monitor credit ratings of the counterparties as we evaluate the credit quality of this portfolio. | |||||||||||||||||||||||||
Although Mepco has contractual recourse against various counterparties for refunds owing upon cancellation of vehicle service contracts, please see note #11 regarding certain risks and difficulties associated with collecting these refunds. | |||||||||||||||||||||||||
The following table summarizes credit ratings by class of payment plan receivable at December 31: | |||||||||||||||||||||||||
Payment Plan Receivables | |||||||||||||||||||||||||
Full | Partial | Other | Total | ||||||||||||||||||||||
Refund | Refund | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
AM Best rating | |||||||||||||||||||||||||
A+ | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
A | 20,203 | 4,221 | - | 24,424 | |||||||||||||||||||||
A- | 4,058 | 832 | 7,496 | 12,386 | |||||||||||||||||||||
B+ | - | - | - | - | |||||||||||||||||||||
B | - | - | - | - | |||||||||||||||||||||
Not rated | 23,816 | - | 12 | 23,828 | |||||||||||||||||||||
Total | $ | 48,077 | $ | 5,053 | $ | 7,508 | $ | 60,638 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
AM Best rating | |||||||||||||||||||||||||
A+ | $ | - | $ | - | $ | 110 | $ | 110 | |||||||||||||||||
A | 24,825 | 3,916 | - | 28,741 | |||||||||||||||||||||
A- | 19,310 | 399 | - | 19,709 | |||||||||||||||||||||
B+ | 56 | - | - | 56 | |||||||||||||||||||||
B | - | - | - | - | |||||||||||||||||||||
Not rated | 36,002 | - | 74 | 36,076 | |||||||||||||||||||||
Total | $ | 80,193 | $ | 4,315 | $ | 184 | $ | 84,692 | |||||||||||||||||
Mortgage loans serviced for others are not reported as assets. The principal balances of these loans at year end are as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Mortgage loans serviced for : | |||||||||||||||||||||||||
Fannie Mae | $ | 981,031 | $ | 948,588 | |||||||||||||||||||||
Freddie Mac | 753,143 | 805,447 | |||||||||||||||||||||||
Other | 111 | 123 | |||||||||||||||||||||||
Total | $ | 1,734,285 | $ | 1,754,158 | |||||||||||||||||||||
Custodial escrow balances maintained in connection with mortgage loans serviced for others totaled $20.3 million and $31.2 million, at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
If we do not remain “Well Capitalized” (see note #20), meet certain minimum capital levels or certain profitability requirements or if we incur a rapid decline in net worth we could lose our ability to sell and/or service loans to these investors. This could impact our ability to generate gains on the sale of loans and generate servicing income. A forced liquidation of our servicing portfolio could also impact the value that could be recovered on this asset. Fannie Mae has the most stringent eligibility requirements covering capital levels, profitability and decline in net worth. Fannie Mae requires seller/servicers to be “Well Capitalized.” For the profitability requirement, we cannot record four or more consecutive quarterly losses and experience a 30% decline in net worth over the same period. Finally, our net worth cannot decline by more than 25% in one quarter or more than 40% over two consecutive quarters. The highest level of capital we are required to maintain is at least $2.5 million plus 0.25% of loans serviced for Freddie Mac. | |||||||||||||||||||||||||
An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 11,013 | $ | 11,229 | $ | 14,661 | |||||||||||||||||||
Originated servicing rights capitalized | 3,210 | 4,006 | 2,967 | ||||||||||||||||||||||
Amortization | (3,745 | ) | (4,679 | ) | (3,065 | ) | |||||||||||||||||||
Change in valuation allowance | 3,232 | 457 | (3,334 | ) | |||||||||||||||||||||
Balance at end of year | $ | 13,710 | $ | 11,013 | $ | 11,229 | |||||||||||||||||||
Valuation allowance | $ | 2,855 | $ | 6,087 | $ | 6,544 | |||||||||||||||||||
Loans sold and serviced that have had servicing rights capitalized | $ | 1,732,476 | $ | 1,751,960 | $ | 1,774,952 | |||||||||||||||||||
The fair value of capitalized mortgage loan servicing rights was $15.0 million and $11.4 million at December 31, 2013 and 2012, respectively. Fair value was determined using an average coupon rate of 4.52%, average servicing fee of 0.254%, average discount rate of 10.09% and an average Public Securities Association (“PSA”) prepayment rate of 175 for December 31, 2013; and an average coupon rate of 4.81%, average servicing fee of 0.254%, average discount rate of 11.02% and an average PSA prepayment rate of 250 for December 31, 2012. |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER REAL ESTATE OWNED [Abstract] | ' | ||||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||||
NOTE 5 – OTHER REAL ESTATE OWNED | |||||||||||||
During 2013 and 2012 we foreclosed on certain loans secured by real estate and transferred approximately $6.9 million and $14.3 million to other real estate in each of those years, respectively. At the time of acquisition amounts were charged-off against the allowance for loan losses to bring the carrying amount of these properties to their estimated fair values, less estimated costs to sell. During 2013 and 2012 we sold other real estate with book balances of approximately $12.0 million and $18.2 million, respectively. Gains or losses on the sale of other real estate are included in non-interest expense on the Consolidated Statements of Operations. | |||||||||||||
We periodically review our real estate owned properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate owned follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 5,958 | $ | 14,655 | $ | 10,876 | |||||||
Additions charged to expense | 2,598 | 3,769 | 6,563 | ||||||||||
Direct write-downs upon sale | (4,509 | ) | (12,466 | ) | (2,784 | ) | |||||||
Balance at end of year | $ | 4,047 | $ | 5,958 | $ | 14,655 | |||||||
Other real estate and repossessed assets totaling $18.3 million and $26.1 million at December 31, 2013 and 2012, respectively are presented net of valuation allowance. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | ||||||||
PROPERTY AND EQUIPMENT | ' | ||||||||
NOTE 6 – PROPERTY AND EQUIPMENT | |||||||||
A summary of property and equipment at December 31 follows: | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Land | $ | 14,817 | $ | 14,614 | |||||
Buildings | 58,798 | 56,835 | |||||||
Equipment | 77,452 | 72,378 | |||||||
151,067 | 143,827 | ||||||||
Accumulated depreciation and amortization | (102,473 | ) | (96,811 | ) | |||||
Property and equipment, net | $ | 48,594 | $ | 47,016 | |||||
Depreciation expense was $6.7 million, $7.6 million and $8.4 million in 2013, 2012 and 2011, respectively. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
INTANGIBLE ASSETS [Abstract] | ' | ||||||||||||||||
INTANGIBLE ASSETS | ' | ||||||||||||||||
NOTE 7 – INTANGIBLE ASSETS | |||||||||||||||||
Intangible assets, net of amortization, at December 31 follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
Amortized intangible assets - core deposits | $ | 23,703 | $ | 20,540 | $ | 23,703 | $ | 19,728 | |||||||||
Intangible amortization expense was $0.8 million, $1.1 million and $1.4 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
A summary of estimated core deposit intangible amortization at December 31, 2013, follows: | |||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 536 | |||||||||||||||
2015 | 347 | ||||||||||||||||
2016 | 347 | ||||||||||||||||
2017 | 346 | ||||||||||||||||
2018 | 346 | ||||||||||||||||
2019 and thereafter | 1,241 | ||||||||||||||||
Total | $ | 3,163 | |||||||||||||||
On December 7, 2012 we sold 21 branches to another financial institution (see note #26). The branches sold included six branch locations in the Battle Creek, Michigan market area and 15 branch locations in Northeast Michigan. As a result of this branch sale $7.6 million gross carrying amount and $5.1 million accumulated amortization (net recorded balance of $2.6 million) of intangible assets related to customers and deposits associated with these 21 branches were recorded as a reduction to the net gain on branch sale in our Consolidated Statement of Operations. | |||||||||||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
DEPOSITS [Abstract] | ' | ||||||||||||
DEPOSITS | ' | ||||||||||||
NOTE 8 – DEPOSITS | |||||||||||||
A summary of interest expense on deposits for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Savings and interest bearing checking | $ | 1,131 | $ | 1,830 | $ | 2,263 | |||||||
Time deposits under $100,000 | 2,995 | 4,838 | 10,349 | ||||||||||
Time deposits of $100,000 or more | 1,580 | 2,245 | 2,645 | ||||||||||
Total | $ | 5,706 | $ | 8,913 | $ | 15,257 | |||||||
Aggregate time deposits in denominations of $100,000 or more amounted to $191.7 million and $146.4 million at December 31, 2013 and 2012, respectively. | |||||||||||||
A summary of the maturity of time deposits at December 31, 2013, follows: | |||||||||||||
(In thousands) | |||||||||||||
2014 | $ | 317,074 | |||||||||||
2015 | 65,407 | ||||||||||||
2016 | 24,542 | ||||||||||||
2017 | 14,386 | ||||||||||||
2018 | 22,424 | ||||||||||||
2019 and thereafter | 748 | ||||||||||||
Total | $ | 444,581 | |||||||||||
Time deposits acquired through broker relationships totaled $13.5 million and $14.6 million at December 31, 2013 and 2012, respectively. | |||||||||||||
Reciprocal deposits totaled $83.5 million and $33.2 million at December 31, 2013 and 2012, respectively. These deposits represent demand, money market and time deposits from our customers that have been placed through Promontory Interfinancial Network’s Insured Cash Sweep® service and Certificate of Deposit Account Registry Service®. These services allow our customers to access multi-million dollar FDIC deposit insurance on deposit balances greater than the standard FDIC insurance maximum. | |||||||||||||
A summary of reciprocal deposits at December 31 follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Demand | $ | 7,018 | $ | 545 | |||||||||
Money market | 4,197 | 700 | |||||||||||
Time | 72,312 | 31,997 | |||||||||||
Total | $ | 83,527 | $ | 33,242 |
OTHER_BORROWINGS
OTHER BORROWINGS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
OTHER BORROWINGS [Abstract] | ' | ||||||||||||||||
OTHER BORROWINGS | ' | ||||||||||||||||
NOTE 9 – OTHER BORROWINGS | |||||||||||||||||
A summary of other borrowings at December 31 follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Advances from the Federal Home Loan Bank | $ | 17,181 | $ | 17,622 | |||||||||||||
Other | 7 | 3 | |||||||||||||||
Total | $ | 17,188 | $ | 17,625 | |||||||||||||
Advances from the Federal Home Loan Bank (“FHLB”) are secured by unencumbered qualifying mortgage and home equity loans with a market value equal to at least 133% to 159%, respectively of outstanding advances, as well as certain agency mortgage backed securities. Advances are also secured by FHLB stock that we own. As of December 31, 2013, we had unused borrowing capacity with the FHLB (subject to the FHLB’s credit requirements and policies) of $150.7 million. Interest expense on advances amounted to $1.1 million, $1.2 million and $1.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. During 2012 and 2011 FHLB advances totaling $3.0 million and $33.0 million, respectively were terminated with no realized gain or loss. No FHLB advances were terminated during 2013. | |||||||||||||||||
As a member of the FHLB, we must own FHLB stock equal to the greater of 1.0% of the unpaid principal balance of residential mortgage loans or 5.0% of our outstanding advances. At December 31, 2013, we were in compliance with the FHLB stock ownership requirements. | |||||||||||||||||
The maturity dates and weighted average interest rates of FHLB advances at December 31 follow: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fixed-rate advances | |||||||||||||||||
2014 | $ | 4,240 | 5.73 | % | $ | 4,240 | 5.73 | % | |||||||||
2016 | 2,313 | 6.55 | 2,413 | 6.55 | |||||||||||||
2017 | 1,377 | 7.04 | 1,429 | 7.04 | |||||||||||||
2018 | 5,888 | 5.99 | 6,089 | 5.99 | |||||||||||||
2019 and thereafter | 3,363 | 7.49 | 3,451 | 7.49 | |||||||||||||
Total advances | $ | 17,181 | 6.38 | % | $ | 17,622 | 6.38 | % | |||||||||
A summary of repayments of FHLB Advances at December 31, 2013, follows: | |||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 4,717 | |||||||||||||||
2015 | 515 | ||||||||||||||||
2016 | 2,521 | ||||||||||||||||
2017 | 1,587 | ||||||||||||||||
2018 | 5,042 | ||||||||||||||||
2019 and thereafter | 2,799 | ||||||||||||||||
Total | $ | 17,181 | |||||||||||||||
We had no borrowings outstanding with the FRB during the years ended or at December 31, 2013, 2012 or 2011. We had unused borrowing capacity with the FRB (subject to the FRB’s credit requirements and policies) of $276.7 million at December 31, 2013. Collateral for FRB borrowings are certain securities available for sale and certain commercial loans. | |||||||||||||||||
Assets, including securities available for sale and loans, pledged to secure other borrowings totaled $785.7 million at December 31, 2013. |
SUBORDINATED_DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
SUBORDINATED DEBENTURES [Abstract] | ' | ||||||||||||||
SUBORDINATED DEBENTURES | ' | ||||||||||||||
NOTE 10 – SUBORDINATED DEBENTURES | |||||||||||||||
We have formed various special purpose entities (the “trusts”) for the purpose of issuing trust preferred securities in either public or pooled offerings or in private placements. Independent Bank Corporation owns all of the common stock of each trust and has issued subordinated debentures to each trust in exchange for all of the proceeds from the issuance of the common stock and the trust preferred securities. Trust preferred securities totaling $39.5 million and $47.7 million at December 31, 2013 and 2012, respectively, qualified as Tier 1 regulatory capital and the remaining amount qualified as Tier 2 regulatory capital. | |||||||||||||||
These trusts are not consolidated with Independent Bank Corporation and accordingly, we report the common securities of the trusts held by us in other assets and the subordinated debentures that we have issued to the trusts in the liability section of our Consolidated Statements of Financial Condition. | |||||||||||||||
Summary information regarding subordinated debentures as of December 31 follows: | |||||||||||||||
2013 | |||||||||||||||
Entity Name | Issue | Subordinated | Trust | Common | |||||||||||
Date | Debentures | Preferred | Stock | ||||||||||||
Securities | Issued | ||||||||||||||
Issued | |||||||||||||||
(In thousands) | |||||||||||||||
IBC Capital Finance III | May-07 | $ | 12,372 | $ | 12,000 | $ | 372 | ||||||||
IBC Capital Finance IV | Sep-07 | 20,619 | 20,000 | 619 | |||||||||||
Midwest Guaranty Trust I | Nov-02 | 7,732 | 7,500 | 232 | |||||||||||
$ | 40,723 | $ | 39,500 | $ | 1,223 | ||||||||||
2012 | |||||||||||||||
Entity Name | Issue | Subordinated | Trust | Common | |||||||||||
Date | Debentures | Preferred | Stock | ||||||||||||
Securities | Issued | ||||||||||||||
Issued | |||||||||||||||
(In thousands) | |||||||||||||||
IBC Capital Finance II | Mar-03 | $ | 9,452 | $ | 9,168 | $ | 284 | ||||||||
IBC Capital Finance III | May-07 | 12,372 | 12,000 | 372 | |||||||||||
IBC Capital Finance IV | Sep-07 | 20,619 | 20,000 | 619 | |||||||||||
Midwest Guaranty Trust I | Nov-02 | 7,732 | 7,500 | 232 | |||||||||||
$ | 50,175 | $ | 48,668 | $ | 1,507 | ||||||||||
Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2013 follow: | |||||||||||||||
Entity Name | Maturity | Interest Rate | First Permitted | ||||||||||||
Date | Redemption Date | ||||||||||||||
IBC Capital Finance III | 30-Jul-37 | 3 month LIBOR plus 1.60% | 30-Jul-12 | ||||||||||||
IBC Capital Finance IV | 15-Sep-37 | 3 month LIBOR plus 2.85% | 15-Sep-12 | ||||||||||||
Midwest Guaranty Trust I | 7-Nov-32 | 3 month LIBOR plus 3.45% | 7-Nov-07 | ||||||||||||
In the fourth quarter of 2009 we elected to defer distributions (payment of interest) on each of the subordinated debentures and trust preferred securities. The subordinated debentures and trust preferred securities are cumulative and have a feature that permits us to defer distributions (payment of interest) from time to time for a period not to exceed 20 consecutive quarters. On August 29, 2013 we brought current the interest payments that we had previously been deferring on each of the subordinated debentures which permitted the resumption of interest payments on the trust preferred securities. | |||||||||||||||
We have the right to redeem the subordinated debentures and trust preferred securities (at par) in whole or in part from time to time on or after the first permitted redemption date specified above or upon the occurrence of specific events defined within the trust indenture agreements. During 2013 we redeemed trust preferred securities issued by IBC Capital Finance II with a par value of $9.2 million. | |||||||||||||||
Issuance costs have been capitalized and are being amortized on a straight- line basis over a period not exceeding 30 years and are included in interest expense in the Consolidated Statements of Operations. Distributions (payment of interest) on the trust preferred securities are also included in interest expense in the Consolidated Statements of Operations. | |||||||||||||||
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ||||||||||||
NOTE 11 – COMMITMENTS AND CONTINGENT LIABILITIES | |||||||||||||
In the normal course of business, we enter into financial instruments with off-balance sheet risk to meet the financing needs of customers or to reduce exposure to fluctuations in interest rates. These financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and standby letters of credit is represented by the contractual amounts of those instruments. We do not, however, anticipate material losses as a result of these financial instruments. | |||||||||||||
A summary of financial instruments with off-balance sheet risk at December 31 follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Financial instruments whose risk is represented by contract amounts | |||||||||||||
Commitments to extend credit | $ | 180,829 | $ | 144,890 | |||||||||
Standby letters of credit | 4,262 | 4,568 | |||||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and generally require payment of a fee. Since commitments may expire without being drawn upon, the commitment amounts do not represent future cash requirements. Commitments are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. | |||||||||||||
Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in such transactions is essentially the same as that involved in extending loan facilities and, accordingly, standby letters of credit are issued subject to similar underwriting standards, including collateral requirements, as are generally involved in the extension of credit facilities. The majority of the standby letters of credit are to corporations, have variable rates that range from 2.5% to 6.25% and mature through 2015. | |||||||||||||
We are involved in various litigation matters in the ordinary course of business. At the present time, we do not believe any of these matters will have a significant impact on our consolidated financial position or results of operations. The aggregate amount we have accrued for losses we consider probable as a result of these litigation matters is immaterial. However, because of the inherent uncertainty of outcomes from any litigation matter, we believe it is reasonably possible we may incur losses in addition to the amounts we have accrued. At this time, we estimate the maximum amount of additional losses that are reasonably possible is approximately $0.5 million. However, because of a number of factors, including the fact that certain of these litigation matters are still in their early stages and involve claims for which, at this point, we believe have little to no merit, this maximum amount may change in the future. | |||||||||||||
The litigation matters described in the preceding paragraph primarily include claims that have been brought against us for damages, but do not include litigation matters where we seek to collect amounts owed to us by third parties (such as litigation initiated to collect delinquent loans or vehicle service contract counterparty receivables). These excluded, collection-related matters may involve claims or counterclaims by the opposing party or parties, but we have excluded such matters from the disclosure contained in the preceding paragraph in all cases where we believe the possibility of us paying damages to any opposing party is remote. Risks associated with the likelihood that we will not collect the full amount owed to us, net of reserves, are disclosed elsewhere in this report. | |||||||||||||
Our Mepco segment conducts its payment plan business activities across the United States. Mepco acquires the payment plans from companies (which we refer to as Mepco’s “counterparties”) at a discount from the face amount of the payment plan. Each payment plan (which are classified as payment plan receivables in our Consolidated Statements of Financial Condition) permits a consumer to purchase a vehicle service contract by making installment payments, generally for a term of 12 to 24 months, to the sellers of those contracts (one of the “counterparties”). Mepco thereafter collects the payments from consumers. In acquiring the payment plan, Mepco generally funds a portion of the cost to the seller of the service contract and a portion of the cost to the administrator of the service contract. The administrator, in turn, pays the necessary contractual liability insurance policy (“CLIP”) premium to the insurer or risk retention group. | |||||||||||||
Consumers are allowed to voluntarily cancel the service contract at any time and are generally entitled to receive a refund from the administrator of the unearned portion of the service contract at the time of cancellation. As a result, while Mepco does not owe any refund to the consumer, it also does not have any recourse against the consumer for nonpayment of a payment plan and therefore does not evaluate the creditworthiness of the individual consumer. If a consumer stops making payments on a payment plan or exercises the right to voluntarily cancel the service contract, the service contract seller and administrator are each obligated to refund to Mepco the amount necessary to make Mepco whole as a result of its funding of the service contract. In addition, the insurer or risk retention group that issued the CLIP for the service contract often guarantees all or a portion of the refund to Mepco. See note #4 above for a breakdown of Mepco’s payment plan receivables by the level of recourse Mepco has against various counterparties. | |||||||||||||
Upon the cancellation of a service contract and the completion of the billing process to the counterparties for amounts due to Mepco, there is a decrease in the amount of “payment plan receivables” and an increase in the amount of “vehicle service contract counterparty receivables” until such time as the amount due from the counterparty is collected. These amounts represent funds actually due to Mepco from its counterparties for cancelled service contracts. At December 31, 2013, the aggregate amount of such obligations owing to Mepco by counterparties, net of write-downs and reserves made through the recognition of vehicle service contract counterparty contingencies expense, totaled $7.7 million. This compares to a balance of $18.4 million at December 31, 2012. Mepco is currently in the process of working to recover these receivables, primarily through litigation against counterparties. | |||||||||||||
In some cases, Mepco requires collateral or guaranties by the principals of the counterparties to secure these refund obligations; however, this is generally only the case when no rated insurance company is involved to guarantee the repayment obligation of the seller and administrator counterparties. In most cases, there is no collateral to secure the counterparties’ refund obligations to Mepco, but Mepco has the contractual right to offset unpaid refund obligations against amounts Mepco would otherwise be obligated to fund to the counterparties. In addition, even when collateral is involved, the refund obligations of these counterparties are not fully secured. Mepco incurs losses when it is unable to fully recover funds owing to it by counterparties upon cancellation of the underlying service contracts. The sudden failure of one of Mepco’s major counterparties (an insurance company, administrator, or seller/dealer) could expose us to significant losses. | |||||||||||||
When counterparties do not honor their contractual obligations to Mepco to repay funds, we recognize estimated losses. Mepco pursues collection (including commencing legal action if necessary) of funds due to it under its various contracts with counterparties. Mepco has had to initiate litigation against certain counterparties, including third party insurers, to collect amounts owed to Mepco as a result of those parties’ dispute of their contractual obligations to Mepco. For 2013, 2012 and 2011 non-interest expenses include $4.8 million, $1.6 million, and $11.0 million, respectively, of charges related to estimated losses for vehicle service contract counterparty contingencies. The increase in this expense in 2013 (from 2012) is due to write-downs of vehicle service contract counterparty receivables as we reached settlements in certain litigation to collect these receivables. Given the costs and uncertainty of continued litigation, we determined it was in our best interest to resolve these matters. These charges are being classified in non-interest expense because they are associated with a default or potential default of a contractual obligation under our counterparty contracts as opposed to loss on the administration of the payment plan itself. | |||||||||||||
Our estimate of probable incurred losses from vehicle service contract counterparty contingencies requires a significant amount of judgment because a number of factors can influence the amount of loss that we may ultimately incur. These factors include our estimate of future cancellations of vehicle service contracts, our evaluation of collateral that may be available to recover funds due from our counterparties, and our assessment of the amount that may ultimately be collected from counterparties in connection with their contractual obligations. We apply a rigorous process, based upon historical payment plan activity and past experience, to estimate probable incurred losses and quantify the necessary reserves for our vehicle service contract counterparty contingencies, but there can be no assurance that our modeling process will successfully identify all such losses. | |||||||||||||
We believe our assumptions regarding the collection of vehicle service contract counterparty receivables are reasonable, and we based them on our good faith judgments using data currently available. We also believe the current amount of reserves we have established and the vehicle service contract counterparty contingencies expense that we have recorded are appropriate given our estimate of probable incurred losses at the applicable Consolidated Statement of Financial Condition date. However, because of the uncertainty surrounding the numerous and complex assumptions made, actual losses could exceed the charges we have taken to date. | |||||||||||||
An analysis of our vehicle service contract counterparty receivable, net follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year, net of reserve | $ | 18,449 | $ | 29,298 | $ | 37,270 | |||||||
Transfers in from payment plan receivables | 792 | 1,469 | 8,874 | ||||||||||
Reserves established and charge-offs recorded to expense | (4,837 | ) | (1,629 | ) | (11,048 | ) | |||||||
Transferred to (from) contingency reserves | 63 | (108 | ) | (1,015 | ) | ||||||||
Cash received | (6,751 | ) | (7,413 | ) | (1,613 | ) | |||||||
Collateral received (other real estate and repossessed assets) in partial satisfaction of debt | - | (3,168 | ) | (3,170 | ) | ||||||||
Balance at end of year, net of reserve | $ | 7,716 | $ | 18,449 | $ | 29,298 | |||||||
Reserve at end of year | $ | 1,300 | $ | 2,000 | $ | 32,450 | |||||||
An analysis of our vehicle service contract counterparty reserve follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 2,012 | $ | 32,570 | $ | 25,735 | |||||||
Additions charged to expense | 4,837 | 1,629 | 11,048 | ||||||||||
Charge-offs | (5,474 | ) | (32,187 | ) | (4,213 | ) | |||||||
Balance at end of year | $ | 1,375 | $ | 2,012 | $ | 32,570 | |||||||
Reserves recorded in VSC counterparty receivables, net | $ | 1,300 | $ | 2,000 | $ | 32,450 | |||||||
Reserves recorded in other liabilities | 75 | 12 | 120 | ||||||||||
Total at end of year | $ | 1,375 | $ | 2,012 | $ | 32,570 | |||||||
The provision for loss reimbursement on sold loans represents our estimate of incurred losses related to mortgage loans that we have sold to investors (primarily Fannie Mae and Freddie Mac). Since we sell mortgage loans without recourse, loss reimbursements only occur in those instances where we have breached a representation or warranty or other contractual requirement related to the loan sale. Historically, loss reimbursements on mortgage loans sold without recourse were rare. In 2009, we had only one actual loss reimbursement (for $0.06 million). Prior to 2009, we had years in which we incurred no such loss reimbursements. However, our loss reimbursements increased to $0.2 million in 2010 and to $0.5 million and $1.2 million in 2011 and 2012, respectively, as over the past two years Fannie Mae and Freddie Mac, in particular, have been doing more reviews of mortgage loans where they have incurred or expect to incur a loss and have been more aggressive in pursuing loss reimbursements from the sellers of such mortgage loans. Actual loss reimbursements during 2013 totaled $2.2 million (including the $1.5 million payment made to Fannie Mae described below). | |||||||||||||
Although we are successful in the majority of cases where file reviews are conducted on mortgage loans that we have sold to investors, the levels of such file reviews and loss reimbursement requests have increased. In November 2013, we executed a Resolution Agreement with Fannie Mae to resolve our existing and future repurchase and make whole obligations (collectively “Repurchase Obligations”) related to mortgage loans originated between January 1, 2000 and December 31, 2008 and delivered to them by January 31, 2009. Under the terms of the Resolution Agreement we paid Fannie Mae approximately $1.5 million in November 2013 with respect to the Repurchase Obligations. We believe that it was in our best interest to execute the Resolution Agreement in order to bring finality to the loss reimbursement exposure with Fannie Mae for these years and reduce the resources spent on individual file reviews and defending loss reimbursement requests. In addition, we were notified by Freddie Mac in January 2014 that they had completed their review of mortgage loans that we originated between January 1, 2000 and December 31, 2008 and delivered to them. The provision for loss reimbursement recorded in 2013 reflects the impact of the Resolution Agreement as well as the aforementioned completion of reviews by Freddie Mac. | |||||||||||||
The reserve for loss reimbursements on sold mortgage loans totaled $1.4 million at both December 31, 2013 and 2012. This reserve is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Condition. This reserve is based on an analysis of mortgage loans that we have sold which are further categorized by delinquency status, loan to value, and year of origination. The calculation includes factors such as probability of default, probability of loss reimbursement (breach of representation or warranty) and estimated loss severity. The reserve level at December 31, 2013 also reflects the resolution (and Repurchase Obligation payment to Fannie Mae) of the mortgage loan origination years of 2000 to 2008. We believe that the amounts that we have accrued for incurred losses on sold mortgage loans are appropriate given our analyses and the aforementioned resolutions with Fannie Mae and Freddie Mac. However, future losses could exceed our current estimate. |
SHAREHOLDERS_EQUITY_AND_INCOME
SHAREHOLDERS' EQUITY AND INCOME (LOSS) PER COMMON SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SHAREHOLDERS' EQUITY AND INCOME (LOSS) PER COMMON SHARE [Abstract] | ' | ||||||||||||
SHAREHOLDERS' EQUITY AND LOSS PER COMMON SHARE | ' | ||||||||||||
NOTE 12 – SHAREHOLDERS’ EQUITY AND INCOME (LOSS) PER COMMON SHARE | |||||||||||||
On April 2, 2010, we entered into an Exchange Agreement with the U.S. Department of the Treasury (“UST”) pursuant to which the UST agreed to exchange all 72,000 shares of our Series A Fixed Rate Cumulative Perpetual Preferred Stock, with an original liquidation preference of $1,000 per share (“Series A Preferred Stock”), beneficially owned and held by the UST, plus accrued and unpaid dividends on such Series A Preferred Stock, for shares of our Series B Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, with an original liquidation preference of $1,000 per share (“Series B Preferred Stock”). As part of the terms of the Exchange Agreement, we also agreed to amend and restate the terms of the warrant, dated December 12, 2008, issued to the UST to purchase 346,154 shares of our common stock. | |||||||||||||
On April 16, 2010, we closed the transactions described in the Exchange Agreement and we issued to the UST: (1) 74,426 shares of our Series B Preferred Stock and (2) the Amended and Restated Warrant to purchase 346,154 shares of our common stock at an exercise price of $7.234 per share and expiring on December 12, 2018 (the “Amended Warrant”). These securities were issued in exchange for all of the 72,000 shares of Series A Preferred Stock and the original warrant that had been issued to the UST in December 2008 pursuant to the Troubled Asset Relief Program (“TARP”) Capital Purchase Program, plus approximately $2.4 million in accrued dividends on such Series A Preferred Stock. | |||||||||||||
With the exception of being convertible into shares of our common stock, the terms of the Series B Preferred Stock were substantially similar to the terms of the Series A Preferred Stock that was exchanged. The Series B Preferred Stock qualified as Tier 1 regulatory capital and paid cumulative dividends quarterly at a rate of 5% per annum. | |||||||||||||
On July 26, 2013 we executed a Securities Purchase Agreement (“SPA”) with the UST. Under the terms of the SPA, we agreed to purchase from the UST for $81.0 million in cash consideration: (i) 74,426 shares of our Series B Preferred Stock, including any and all accrued and unpaid dividends; and (ii) the Amended Warrant. On August 30, 2013 we closed the SPA transaction with the UST and we exited TARP. On that date the Series B Preferred Stock and Amended Warrant had book balances of $87.2 million (including accrued dividends) and $1.5 million, respectively. This transaction resulted in a discount of $7.7 million of which $7.6 million was allocated to the Series B Preferred Stock and included in net income applicable to common stock and $0.1 million was allocated to the Amended Warrant and recorded to common stock. | |||||||||||||
On August 28, 2013 we sold 11.5 million shares of our common stock for gross proceeds of $89.1 million in a public offering and on September 10, 2013 we sold an additional 1.725 million shares of our common stock for gross proceeds of $13.4 million pursuant to the underwriters’ overallotment option (collectively, the “Common Stock Offering”). The net proceeds from the Common Stock Offering were approximately $97.1 million. | |||||||||||||
On July 7, 2010 we executed an Investment Agreement and Registration Rights Agreement with Dutchess Opportunity Fund, II, LP (“Dutchess”) for the sale of shares of our common stock. These agreements served to establish an equity line facility as a contingent source of liquidity at the parent company level. Pursuant to the Investment Agreement, Dutchess committed to purchase up to $15.0 million of our common stock over a 36-month period ending November 1, 2013. We had the right, but no obligation, to draw on this equity line facility from time to time during such 36-month period by selling shares of our common stock to Dutchess. The sales price was at a 5% discount to the market price of our common stock at the time of the draw (as such market price was determined pursuant to the terms of the Investment Agreement). Through 2013, we had sold a total of 1.40 million shares (0.17 million shares during 2013, 0.45 million shares during 2012, 0.43 million shares during 2011 and 0.35 million shares during 2010) of our common stock to Dutchess under this equity line for total net proceeds of approximately $4.2 million. Given the existing cash levels and our forecasted future cash needs at the parent company along with our expectation that the Bank will be able to transfer funds to the parent company at a future date, we determined to not renew this equity line facility on November 1, 2013. | |||||||||||||
On November 15, 2011, we entered into a Tax Benefits Preservation Plan (the “Preservation Plan”) with our stock transfer agent, American Stock Transfer & Trust Company. Our Board of Directors adopted the Preservation Plan in an effort to protect the value to our shareholders of our ability to use deferred tax assets such as net operating loss carry forwards to reduce potential future federal income tax obligations. Under federal tax rules, this value could be lost in the event we experienced an “ownership change,” as defined in Section 382 of the federal Internal Revenue Code. The Preservation Plan attempts to protect this value by reducing the likelihood that we will experience such an ownership change by discouraging any person who is not already a 5% shareholder from becoming a 5% shareholder (with certain limited exceptions). | |||||||||||||
On November 15, 2011, our Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of our common stock under the terms of the Preservation Plan. The dividend is payable to the holders of common stock outstanding as of the close of business on November 15, 2011 or outstanding at any time thereafter but before the earlier of a “Distribution Date” and the date the Preservation Plan terminates. Each Right entitles the registered holder to purchase from us 1/1000 of a share of our Series C Junior Participating Preferred Stock, no par value per share (“Series C Preferred Stock”). Each 1/1000 of a share of Series C Preferred Stock has economic and voting terms similar to those of one whole share of common stock. The Rights are not exercisable and generally do not become exercisable until a person or group has acquired, subject to certain exceptions and conditions, beneficial ownership of 4.99% or more of the outstanding shares of common stock. At that time, each Right will generally entitle its holder to purchase securities of the Company at a discount of 50% to the current market price of the common stock. However, the Rights owned by the person acquiring beneficial ownership of 4.99% or more of the outstanding shares of common stock would automatically be void. The significant dilution that would result is expected to deter any person from acquiring beneficial ownership of 4.99% or more and thereby triggering the Rights. | |||||||||||||
To date, none of the Rights have been exercised or have become exercisable because no unpermitted 4.99% or more change in the beneficial ownership of the outstanding common stock has occurred. The Rights will generally expire on the earlier to occur of the close of business on November 15, 2016 and certain other events described in the Preservation Plan, including such date as our Board of Directors determines that the Preservation Plan is no longer necessary for its intended purposes. | |||||||||||||
A reconciliation of basic and diluted net income (loss) per common share for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income (loss) applicable to common stock | $ | 82,062 | $ | 21,851 | $ | (24,357 | ) | ||||||
Convertible preferred stock dividends | 3,001 | 4,347 | - | ||||||||||
Preferred stock discount | (7,554 | ) | - | - | |||||||||
Net income (loss) applicable to common stock for calculation of diluted earnings per share (1) (2) | $ | 77,509 | $ | 26,198 | $ | (24,357 | ) | ||||||
Weighted average shares outstanding | 13,970 | 8,709 | 8,277 | ||||||||||
Effect of convertible preferred stock | 7,314 | 23,892 | 61,281 | ||||||||||
Restricted stock units | 363 | 216 | 122 | ||||||||||
Stock units for deferred compensation plan for non-employee directors | 125 | 66 | 7 | ||||||||||
Effect of stock options | 92 | 2 | - | ||||||||||
Weighted average shares outstanding for calculation of diluted earnings per share (1) | 21,864 | 32,885 | 69,687 | ||||||||||
Net income (loss) per common share | |||||||||||||
Basic (2) | $ | 5.87 | $ | 2.51 | $ | (2.94 | ) | ||||||
Diluted | $ | 3.55 | $ | 0.8 | $ | (2.94 | ) | ||||||
-1 | For any period in which a loss is recorded, dividends on convertible preferred stock are not added back in the diluted per common share calculation. For any period in which a loss is recorded, the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors would have an anti-dilutive impact on the net loss per common share and thus are ignored in the diluted per common share calculation. | ||||||||||||
-2 | Basic net income (loss) per common share includes weighted average common shares outstanding during the period and participating share awards. | ||||||||||||
Weighted average stock options outstanding that were not considered in computing diluted net income (loss) per common share because they were anti-dilutive totaled 0.1 million, 0.1 million and 0.1 million for 2013, 2012 and 2011, respectively. The warrant to purchase 346,154 shares of our common stock was also not considered in computing the diluted income (loss) per common share in 2013, 2012 and 2011 as it was anti-dilutive. |
INCOME_TAX
INCOME TAX | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAX [Abstract] | ' | ||||||||||||
INCOME TAX | ' | ||||||||||||
NOTE 13 – INCOME TAX | |||||||||||||
The composition of income tax expense (benefit) for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current | $ | (277 | ) | $ | - | $ | (413 | ) | |||||
Deferred | - | - | (646 | ) | |||||||||
Disproportionate tax effect | 1,444 | - | - | ||||||||||
Valuation allowance - change in estimate | (56,018 | ) | - | 847 | |||||||||
Income tax benefit | $ | (54,851 | ) | $ | - | $ | (212 | ) | |||||
The deferred income tax benefit of $56.0 million during 2013 is attributed to the reversal of our deferred tax valuation allowance on primarily all of our deferred tax assets and the deferred income tax benefit of $0.6 million during 2011 is primarily attributed to the effects of pretax other comprehensive income. | |||||||||||||
A reconciliation of income tax benefit to the amount computed by applying the statutory federal income tax rate of 35% in each year presented to the income (loss) before income tax for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Statutory rate applied to income (loss) before income tax | $ | 7,930 | $ | 9,169 | $ | (7,144 | ) | ||||||
Net change in valuation allowance | (63,980 | ) | (8,730 | ) | 9,369 | ||||||||
Bank owned life insurance | (477 | ) | (568 | ) | (657 | ) | |||||||
Tax-exempt income | (402 | ) | (453 | ) | (521 | ) | |||||||
Disproportionate tax effect | 1,444 | - | - | ||||||||||
U.S. Treasury warrant | 359 | 100 | (398 | ) | |||||||||
Non-deductible meals, entertainment and memberships | 55 | 55 | 50 | ||||||||||
Share-based compensation | 8 | 258 | - | ||||||||||
Other, net | 212 | 169 | (911 | ) | |||||||||
Income tax benefit | $ | (54,851 | ) | $ | - | $ | (212 | ) | |||||
Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as other comprehensive income (loss). However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current year. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. In 2011 pretax other comprehensive income of $1.8 million reduced our valuation allowance and resulted in a benefit of $0.6 million being allocated to the loss from operations. | |||||||||||||
We assess whether a valuation allowance on our deferred tax assets is necessary each quarter. Reversing or reducing the valuation allowance requires us to conclude that the realization of the deferred tax assets is “more likely than not.” The ultimate realization of this asset is primarily based on generating future income. As of June 30, 2013, we concluded that the realization of substantially all of our deferred tax assets was now more likely than not. This conclusion was primarily based upon the following factors: | |||||||||||||
• | Achieving a sixth consecutive quarter of profitability; | ||||||||||||
• | A forecast of future profitability that supported that the realization of the deferred tax assets is more likely than not; and | ||||||||||||
• | A forecast that future asset quality continued to be stable to improving and that other factors did not exist that could cause a significant adverse impact on future profitability. | ||||||||||||
We have also concluded subsequent to June 30, 2013, that the realization of substantially all of our deferred tax assets continues to be more likely than not for substantially the same reasons as enumerated above, including two additional quarterly profits in the second half of 2013. As a result, during 2013, we recorded an income tax benefit of $54.9 million, which includes a $56.0 million reduction in the valuation allowance on our deferred tax assets. In addition, during the second quarter of 2013, we recorded $1.4 million of income tax expense to clear from accumulated other comprehensive loss (“AOCL”) the disproportionate tax effects from cash flow hedges. These disproportionate tax effects had been charged to other comprehensive income and credited to income tax expense due to our valuation allowance on deferred tax assets as more fully discussed in note #24 to the Consolidated Financial Statements. Because we terminated our last remaining cash flow hedge in the second quarter of 2013, it was appropriate to clear these disproportionate tax effects from AOCL. | |||||||||||||
The valuation allowance against our deferred tax assets totaled $1.1 million and $65.1 million at December 31, 2013 and 2012, respectively. We did not reverse approximately $1.1 million of valuation allowance on our deferred tax assets that primarily relates to state income taxes from our Mepco segment. In this instance, we determined that the future realization of these particular deferred tax assets was not more likely than not. This conclusion was primarily based on the uncertainty of Mepco’s future earnings attributable to particular states (given the various apportionment criteria) and the significant reduction in the size of Mepco’s business over the past three years. | |||||||||||||
Prior to the second quarter of 2013, we had established a deferred tax asset valuation allowance against all of our net deferred tax assets. Accordingly, in these prior periods, the income tax expense related to any income before income tax was largely being offset by changes in the deferred tax valuation allowance. As a result, we recorded no income tax expense or benefit in 2012 and an income tax benefit of $0.2 million in 2011. A change in the deferred tax asset valuation allowance of $(8.7) million and $9.4 million in 2012 and 2011, respectively, completely or largely offset the effect of pre-tax income or losses. The 2011 valuation allowance was also net of $0.6 million of allocations of deferred taxes on AOCL. | |||||||||||||
Because of our net operating loss and tax credit carryforwards, we are still subject to the rules of Section 382 of the Internal Revenue Code of 1986, as amended. An ownership change, as defined by these rules, would negatively affect our ability to utilize our net operating loss carryforwards and other deferred tax assets in the future. If such an ownership change were to occur, we may suffer higher-than-anticipated tax expense, and consequently lower net income and cash flow, in those future years. Although we cannot control our shareholders’ activities in buying and selling our common stock, we do have in place a Tax Benefits Preservation Plan to dissuade any movement in our stock that would trigger an ownership change, and we limited the size of our Common Stock Offering to avoid triggering any Section 382 limitations. | |||||||||||||
Our actual federal income tax expense (benefit) is different than the amount computed by applying our statutory federal income tax rate to our pre-tax income (loss) primarily due to tax-exempt interest income and tax-exempt income from the increase in the cash surrender value on life insurance, as well as the impact of changes in the deferred tax asset valuation allowance. | |||||||||||||
The income tax benefit in the Consolidated Statements of Operations also includes income taxes in a variety of other states due primarily to Mepco’s operations. The amounts of such state income taxes were an expense (benefit) of $(0.2) million, zero, and $0.7 million in 2013, 2012 and 2011, respectively. | |||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow: | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Loss carryforwards | $ | 38,027 | $ | 39,593 | |||||||||
Allowance for loan losses | 11,317 | 15,502 | |||||||||||
Fixed assets | 3,081 | 2,664 | |||||||||||
Alternative minimum tax credit carry forward | 2,672 | 2,577 | |||||||||||
Purchase premiums, net | 2,280 | 2,413 | |||||||||||
Valuation allowance on other real estate owned | 1,431 | 2,085 | |||||||||||
Share based payments | 402 | 817 | |||||||||||
Vehicle service contract counterparty contingency reserve | 523 | 765 | |||||||||||
Unrealized loss on trading securities | 456 | 591 | |||||||||||
Other than temporary impairment charge on securities available for sale | 466 | 507 | |||||||||||
Deferred compensation | 523 | 512 | |||||||||||
Loss reimbursement on sold loans reserve | 492 | 501 | |||||||||||
Non accrual loan interest income | 325 | 325 | |||||||||||
Unrealized loss on derivative financial instruments | 133 | 259 | |||||||||||
Reserve for unfunded lending commitments | 178 | 209 | |||||||||||
Unrealized loss on securities available for sale | 1,723 | 181 | |||||||||||
Other | 40 | 162 | |||||||||||
Gross deferred tax assets | 64,069 | 69,663 | |||||||||||
Valuation allowance | (1,137 | ) | (65,117 | ) | |||||||||
Total net deferred tax assets | 62,932 | 4,546 | |||||||||||
Deferred tax liabilities | |||||||||||||
Mortgage servicing rights | 4,799 | 3,855 | |||||||||||
Deferred loan fees | 265 | 373 | |||||||||||
Federal Home Loan Bank stock | 318 | 318 | |||||||||||
Gross deferred tax liabilities | 5,382 | 4,546 | |||||||||||
Net deferred tax assets | $ | 57,550 | $ | - | |||||||||
At December 31, 2013, we had $0.3 million of federal capital loss carryforwards that expire in 2014 and federal net operating loss (“NOL”) carryforwards of approximately $108.0 million which, if not used against taxable income, will expire as follows: | |||||||||||||
(In thousands) | |||||||||||||
2017 | $ | 663 | |||||||||||
2018 | 189 | ||||||||||||
2022 | 194 | ||||||||||||
2023 | 359 | ||||||||||||
2029 | 25,467 | ||||||||||||
2030 | 26,254 | ||||||||||||
2031 | 17,170 | ||||||||||||
2032 | 37,738 | ||||||||||||
Total | $ | 108,034 | |||||||||||
$0.8 million of NOL carryforwards in the table above relate to unrealized excess benefits on share based compensation for which a benefit will be recorded to additional paid in capital (common stock) when realized. In addition, we had a minor amount of state NOL carryforwards in certain states where Mepco operates. | |||||||||||||
Changes in unrecognized tax benefits for the years ended December 31 follow: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 1,871 | $ | 2,139 | $ | 2,393 | |||||||
Additions based on tax positions related to the current year | 11 | 15 | 23 | ||||||||||
Reductions due to the statute of limitations | (186 | ) | (56 | ) | (277 | ) | |||||||
Reductions due to settlements | (24 | ) | (227 | ) | - | ||||||||
Balance at end of year | $ | 1,672 | $ | 1,871 | $ | 2,139 | |||||||
If recognized, the entire amount of unrecognized tax benefits, net of $0.4 million of federal tax on state benefits, would affect our effective tax rate. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No amounts were expensed for interest and penalties for the years ended December 31, 2013, 2012 and 2011. No amounts were accrued for interest and penalties at December 31, 2013, 2012 or 2011. At December 31, 2013, U.S. Federal tax years 2010 through the present remain open to examination. |
SHARE_BASED_COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SHARE BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
SHARE BASED COMPENSATION | ' | ||||||||||||||||
NOTE 14 – SHARE BASED COMPENSATION | |||||||||||||||||
We maintain share based payment plans that include a non-employee director stock purchase plan and a long-term incentive plan that permits the issuance of share based compensation, including stock options and non-vested share awards. The long-term incentive plan, which is shareholder approved, permits the grant of additional share based awards for up to 0.5 million shares of common stock as of December 31, 2013. The non-employee director stock purchase plan permits the grant of additional share based payments for up to 0.3 million shares of common stock as of December 31, 2013. Share based awards and payments are measured at fair value at the date of grant and are expensed over the requisite service period. Common shares issued upon exercise of stock options come from currently authorized but unissued shares. | |||||||||||||||||
A portion of our president’s annual salary was paid in the form of common stock. The annual amounts paid in common stock (also referred to as “salary stock”) were $0.020 million and $0.015 million during 2013 and 2012, respectively. During the first quarter of 2011, pursuant to a management transition plan, our former chief executive officer’s annual salary was increased by $0.2 million effective January 1, 2011 through December 31, 2012. This increase was paid entirely in the form of salary stock. These shares were issued each pay period and vested immediately. | |||||||||||||||||
During 2013, 2012 and 2011 we issued 0.1 million, 0.2 million and 0.1 million restricted stock units to certain of our executive officers. These restricted stock units do not vest for a minimum of three years (two years for the 2011 grant) and until we repay in full our obligations related to the TARP. Since we repaid in full our obligations related to TARP (see note #12) the 2011 grant fully vested during 2013 and the only vesting provision remaining on the 2013 and 2012 grants is the three year vesting period from the date of grant. We use the market value of the common stock on the date of grant to measure compensation cost for non-vested share awards. | |||||||||||||||||
During 2013, 2012 and 2011, pursuant to our performance-based compensation plans, we granted 0.1 million stock options in each period to certain officers, none of whom is a named executive officer. The stock options have an exercise price equal to the market value on the date of grant, vest ratably over a three year period and expire 10 years from date of grant. We use the Black Scholes option pricing model to measure compensation cost for stock options. We also estimate expected forfeitures over the vesting period. | |||||||||||||||||
Our directors may elect to receive at least a portion of their quarterly cash retainer fees in the form of common stock (either on a current basis or on a deferred basis pursuant to the non-employee director stock purchase plan referenced above). Shares equal in value to that portion of each director’s quarterly cash retainer are issued each quarter and vest immediately. We issued 0.06 million shares, 0.21 million shares and 0.14 million shares to directors during 2013, 2012 and 2011, respectively, and expensed their value during those same periods. | |||||||||||||||||
Total compensation expense recognized for stock option grants, non-vested common stock grants, restricted stock unit grants and salary stock was $0.9 million, $0.4 million and $0.9 million in 2013, 2012 and 2011, respectively. The corresponding tax benefit relating to this expense was zero for each period. Total expense recognized for non-employee director share based payments was $0.3 million, $0.4 million and $0.3 million in 2013, 2012 and 2011, respectively. The corresponding tax benefit relating to this expense was zero for each period. | |||||||||||||||||
At December 31, 2013, the total expected compensation cost related to non vested stock options, restricted stock and restricted stock units not yet recognized was $1.2 million. The weighted-average period over which this amount will be recognized is 2.0 years. | |||||||||||||||||
A summary of outstanding stock option grants and related transactions follows: | |||||||||||||||||
Number of | Average | Weighted- | Aggregated | ||||||||||||||
Shares | Exercise | Average | Intrinsic | ||||||||||||||
Price | Remaining | Value | |||||||||||||||
Contractual | |||||||||||||||||
Term (Years) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Outstanding at January 1, 2013 | 275,933 | $ | 4.46 | ||||||||||||||
Granted | 77,500 | 6.42 | |||||||||||||||
Exercised | (19,277 | ) | 2.02 | ||||||||||||||
Forfeited | (9,164 | ) | 2.85 | ||||||||||||||
Expired | (4,692 | ) | 46.12 | ||||||||||||||
Outstanding at December 31, 2013 | 320,300 | $ | 4.52 | 8.06 | $ | 2,500 | |||||||||||
Vested and expected to vest at December 31, 2013 | 305,753 | $ | 4.52 | 8.01 | $ | 2,391 | |||||||||||
Exercisable at December 31, 2013 | 133,516 | $ | 5.13 | 7.09 | $ | 1,021 | |||||||||||
A summary of outstanding non-vested stock and related transactions follows: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2013 | 375,416 | $ | 6.21 | ||||||||||||||
Granted | 82,833 | 6.42 | |||||||||||||||
Vested | (154,269 | ) | 11.13 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Outstanding at December 31, 2013 | 303,980 | $ | 3.77 | ||||||||||||||
A summary of the weighted-average assumptions used in the Black-Scholes option pricing model for grants of stock options follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividend yield | 0.31 | % | 0.74 | % | 1.04 | % | |||||||||||
Risk-free interest rate | 1.12 | 0.88 | 1.91 | ||||||||||||||
Expected life (in years) | 6 | 6 | 6 | ||||||||||||||
Expected volatility | 101.3 | % | 100.01 | % | 94.72 | % | |||||||||||
Per share weighted-average grant date fair value | $ | 4.98 | $ | 2.04 | $ | 1.37 | |||||||||||
The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life was obtained using a simplified method that, in general, averaged the vesting term and original contractual term of the stock option. This method was used as relevant historical data of actual exercise activity was very limited. The expected volatility was based on historical volatility of our common stock. | |||||||||||||||||
Certain information regarding options exercised during the periods ending December 31 follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Intrinsic value | $ | 117 | $ | 3 | $ | - | |||||||||||
Cash proceeds received | $ | 39 | $ | 4 | $ | - | |||||||||||
Tax benefit realized | $ | - | $ | - | $ | - |
BENEFIT_PLANS
BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
BENEFIT PLANS [Abstract] | ' |
BENEFIT PLANS | ' |
NOTE 15 – BENEFIT PLANS | |
We maintain 401(k) and employee stock ownership plans covering substantially all of our full-time employees. We have historically matched employee contributions to the 401(k) plan up to a maximum of 3% of participating employees’ eligible wages. The match of employee contributions was 1% in 2013 and zero in 2012 and 2011. Contributions to the employee stock ownership plan are determined annually and require approval of our Board of Directors. The maximum contribution is 6% of employees’ eligible wages. Contributions to the employee stock ownership plan were 3% for 2013 and 2012 and zero for 2011. Amounts expensed for these retirement plans were $1.2 million, $1.0 million and zero in 2013, 2012 and 2011, respectively. | |
Our officers participate in various performance-based compensation plans. Amounts expensed for all incentive plans totaled $5.0 million, $4.0 million and $1.1 million, in 2013, 2012 and 2011, respectively. | |
We also provide certain health care and life insurance programs to substantially all full-time employees. Amounts expensed for these programs totaled $3.8 million, $4.9 million and $5.0 million in 2013, 2012 and 2011 respectively. These insurance programs are also available to retired employees at their own expense. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||||||||||||||||||||
NOTE 16 – DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||||||||
We are required to record derivatives on our Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting. | |||||||||||||||||||||||||||||||||||||||
Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow: | |||||||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||||
Notional | Average | Fair | |||||||||||||||||||||||||||||||||||||
Amount | Maturity | Value | |||||||||||||||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
No hedge designation | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | $ | 15,754 | 0.1 | $ | 366 | ||||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | 35,412 | 0.1 | 128 | ||||||||||||||||||||||||||||||||||||
Total | $ | 51,166 | 0.1 | $ | 494 | ||||||||||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||||||
Notional | Average | Fair | |||||||||||||||||||||||||||||||||||||
Amount | Maturity | Value | |||||||||||||||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Cash flow hedge - pay-fixed interest-rate swap agreements | $ | 10,000 | 2 | $ | (739 | ) | |||||||||||||||||||||||||||||||||
No hedge designation | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | $ | 40,221 | 0.1 | $ | 1,368 | ||||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | 88,325 | 0.1 | (122 | ) | |||||||||||||||||||||||||||||||||||
Amended Warrant | 2,504 | 6 | (459 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 131,050 | 0.2 | $ | 787 | ||||||||||||||||||||||||||||||||||
We have established management objectives and strategies that include interest-rate risk parameters for maximum fluctuations in net interest income and market value of portfolio equity. We monitor our interest rate risk position via simulation modeling reports. The goal of our asset/liability management efforts is to maintain profitable financial leverage within established risk parameters. | |||||||||||||||||||||||||||||||||||||||
We use variable-rate and short-term fixed-rate (less than 12 months) debt obligations to fund a portion of our balance sheet, which exposes us to variability in interest rates. To meet our objectives, we may periodically enter into derivative financial instruments to mitigate exposure to fluctuations in cash flows resulting from changes in interest rates (“Cash Flow Hedges”). Cash Flow Hedges during 2013 and 2012 included certain pay-fixed interest-rate swaps which converted the variable-rate cash flows on debt obligations to fixed-rates. During the second quarter of 2013 we terminated our last pay-fixed interest rate swap and paid a termination fee of $0.6 million. The remaining unrealized loss on the terminated pay-fixed interest-rate swap which was equal to this termination fee is included in accumulated other comprehensive income and is being amortized into earnings over the remaining original life of the pay-fixed interest-rate swap. | |||||||||||||||||||||||||||||||||||||||
Through certain special purposes entities (see note #10) we issued trust preferred securities as part of our capital management strategy. Certain of these trust preferred securities are variable rate which exposes us to variability in cash flows. To mitigate our exposure to fluctuations in cash flows resulting from changes in interest rates, on approximately $20.0 million of variable rate trust preferred securities, we entered into a pay-fixed interest-rate swap agreement in September, 2007. During the fourth quarter of 2009 we elected to defer payment of interest on this variable rate trust preferred security. As a result, this pay-fixed interest rate swap was transferred to a no hedge designation and the $1.6 million unrealized loss which was included as a component of accumulated other comprehensive loss at the time of the transfer was reclassified into earnings through September, 2012, which was the remaining life of this pay-fixed swap. | |||||||||||||||||||||||||||||||||||||||
Pay-fixed interest-rate swaps convert the variable-rate cash flows on debt obligations to fixed-rates. Under interest-rate cap agreements, we received cash if interest rates rose above a predetermined level. As a result, we effectively had variable-rate debt with an established maximum rate. We paid an upfront premium on interest rate caps which was recognized in earnings in the same period in which the hedged item affected earnings. Unrecognized premiums from interest rate caps were zero at December 31, 2013 and 2012, respectively. Our last interest rate cap expired in July, 2011. | |||||||||||||||||||||||||||||||||||||||
Certain financial derivative instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in earnings. | |||||||||||||||||||||||||||||||||||||||
In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (“Rate Lock Commitments”). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (“Mandatory Commitments”) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate Lock Commitments and Mandatory Commitments are recognized currently as part of gains on the sale of mortgage loans. We obtain market prices on Mandatory Commitments and Rate Lock Commitments. Net gains on the sale of mortgage loans, as well as net income (loss) may be more volatile as a result of these derivative instruments, which are not designated as hedges. | |||||||||||||||||||||||||||||||||||||||
During 2010, we entered into an amended and restated warrant with the UST that would allow it to purchase our common stock at a fixed price (see note #12). Because of certain anti-dilution features included in the Amended Warrant (as defined in note #12), it was not considered to have been indexed to our common stock and was therefore accounted for as a derivative instrument and recorded as a liability. Any change in value of the Amended Warrant while it was accounted for as a derivative was recorded in other income in our Consolidated Statements of Operations. However, the anti-dilution features in the Amended Warrant which caused it to be accounted for as a derivative and included in accrued expenses and other liabilities expired on April 16, 2013. As a result, the Amended Warrant was reclassified into shareholders’ equity on that date at its then fair value which totaled $1.5 million. During the third quarter of 2013, we repurchased the Amended Warrant from the UST (see note #12). | |||||||||||||||||||||||||||||||||||||||
The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Consolidated Statements of Financial Condition for the periods presented: | |||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||
Sheet | Fair | Sheet | Fair | Sheet | Fair | Sheet | Fair | ||||||||||||||||||||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | $ | - | $ | - | Other liabilities | $ | - | Other liabilities | $ | 739 | |||||||||||||||||||||||||||||
Total | - | - | - | 739 | |||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | Other assets | 366 | Other assets | 1,368 | Other liabilities | - | Other liabilities | - | |||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | Other assets | 128 | Other assets | - | Other liabilities | - | Other liabilities | 122 | |||||||||||||||||||||||||||||||
Amended Warrant | Other assets | - | Other assets | - | Other liabilities | - | Other liabilities | 459 | |||||||||||||||||||||||||||||||
Total | 494 | 1,368 | - | 581 | |||||||||||||||||||||||||||||||||||
Total derivatives | $ | 494 | $ | 1,368 | $ | - | $ | 1,320 | |||||||||||||||||||||||||||||||
The effect of derivative financial instruments on the Consolidated Statements of Operations follows: | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) Reclassified | Location of | Gain (Loss) | |||||||||||||||||||||||||||||||||||
Recognized in Other | Gain (Loss) | from Accumulated Other | Gain (Loss) | Recognized in | |||||||||||||||||||||||||||||||||||
Comprehensive | Reclassified | Comprehensive Loss into | Recognized | Income(1) | |||||||||||||||||||||||||||||||||||
Income (Loss) | from | Income (Effective Portion) | |||||||||||||||||||||||||||||||||||||
(Effective Portion) | Accumulated Other | ||||||||||||||||||||||||||||||||||||||
Comprehensive | |||||||||||||||||||||||||||||||||||||||
Income (Loss) | |||||||||||||||||||||||||||||||||||||||
into Income | |||||||||||||||||||||||||||||||||||||||
(Effective | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | Portion) | 2013 | 2012 | 2011 | in Income (1) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | $ | (37 | ) | $ | (127 | ) | $ | (512 | ) | Interest expense | $ | (397 | ) | $ | (927 | ) | $ | (1,443 | ) | Interest expense | $ | - | $ | - | $ | - | |||||||||||||
Interest-rate cap agreements | - | - | 30 | Interest expense | - | - | (15 | ) | Interest expense | - | - | - | |||||||||||||||||||||||||||
Total | $ | (37 | ) | $ | (127 | ) | $ | (482 | ) | $ | (397 | ) | $ | (927 | ) | $ | (1,458 | ) | $ | - | $ | - | $ | - | |||||||||||||||
No hedge designation | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | Mortgage loan gains | $ | (1,002 | ) | $ | 511 | $ | 457 | |||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | Mortgage loan gains | 250 | 484 | (1,981 | ) | ||||||||||||||||||||||||||||||||||
Amended Warrant | Decrease in fair value of U.S. Treasury warrant | (1,025 | ) | (285 | ) | 1,137 | |||||||||||||||||||||||||||||||||
Total | $ | (1,777 | ) | $ | 710 | $ | (387 | ) | |||||||||||||||||||||||||||||||
(1) For cash flow hedges, this location and amount refers to the ineffective portion. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
RELATED PARTY TRANSACTIONS [Abstract] | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
NOTE 17 – RELATED PARTY TRANSACTIONS | |||||||||
Certain of our directors and executive officers, including companies in which they are officers or have significant ownership, were loan and deposit customers during 2013 and 2012. | |||||||||
A summary of loans to directors and executive officers whose borrowing relationship exceeds $60,000, and to entities in which they own a 10% or more voting interest for the years ended December 31 follows: | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 208 | $ | 214 | |||||
New loans and advances | 240 | - | |||||||
Repayments | (97 | ) | (6 | ) | |||||
Balance at end of year | $ | 351 | $ | 208 | |||||
Deposits held by us for directors and executive officers totaled $0.8 million at both December 31, 2013 and 2012. |
LEASES
LEASES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES [Abstract] | ' | ||||
LEASES | ' | ||||
NOTE 18 – LEASES | |||||
We have non-cancelable operating leases for certain office facilities, some of which include renewal options and escalation clauses. | |||||
A summary of future minimum lease payments under non-cancelable operating leases at December 31, 2013, follows: | |||||
(In thousands) | |||||
2014 | $ | 1,274 | |||
2015 | 1,058 | ||||
2016 | 1,017 | ||||
2017 | 983 | ||||
2018 | 961 | ||||
2019 and thereafter | 1,620 | ||||
Total | $ | 6,913 | |||
Rental expense on operating leases totaled $1.2 million, $1.2 million and $1.4 million in 2013, 2012 and 2011, respectively. |
CONCENTRATIONS_OF_CREDIT_RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2013 | |
CONCENTRATIONS OF CREDIT RISK [Abstract] | ' |
CONCENTRATIONS OF CREDIT RISK | ' |
NOTE 19 – CONCENTRATIONS OF CREDIT RISK | |
Credit risk is the risk to earnings and capital arising from an obligor’s failure to meet the terms of any contract with our organization, or otherwise fail to perform as agreed. Credit risk can occur outside of our traditional lending activities and can exist in any activity where success depends on counterparty, issuer or borrower performance. Concentrations of credit risk (whether on- or off-balance sheet) arising from financial instruments can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries or certain geographic regions. Credit risk associated with these concentrations could arise when a significant amount of loans or other financial instruments, related by similar characteristics, are simultaneously impacted by changes in economic or other conditions that cause their probability of repayment or other type of settlement to be adversely affected. Our major concentrations of credit risk arise by collateral type and by industry. The significant concentrations by collateral type at December 31, 2013 include $545.5 million of loans secured by residential real estate and $50.3 million of construction and development loans. In addition, we have a concentration of credit within the vehicle service contract industry. At December 31, 2013, we had $60.6 million of payment plan receivables. Our recourse for nonpayment of these payment plan receivables is against our counterparties operating within the vehicle service contract industry. | |
Additionally, within our commercial real estate and commercial loan portfolio we had significant standard industry classification concentrations in the following categories as of December 31, 2013: Lessors of Nonresidential Real Estate ($284.4 million); Lessors of Residential Real Estate ($74.9 million); Health Care and Social Assistance ($57.8 million) and Construction General Contractors and Land Development ($51.6 million). A geographic concentration arises because we primarily conduct our lending activities in the State of Michigan. | |
Our concentration of credit within the vehicle service contract industry relates to the business operated by our subsidiary, Mepco. This business and certain risks associated with this business are described in note #11 above. In addition, see note #4 above for a breakdown of Mepco’s payment plan receivables by the level of recourse Mepco has against various counterparties. Mepco monitors counterparty concentrations in order to attempt to manage our exposure for contractual obligations from its counterparties. In addition, even where an insurance company or risk retention group does not have a guarantee obligation to Mepco, the failure of the insurance company or risk retention group could result in a mass cancellation of the vehicle service contracts (and the related payment plans) insured by such entity. Such a mass cancellation would trigger and accelerate the contractual obligations of the counterparties that did have such obligations to Mepco. The counterparty concentration levels are managed based on the AM Best rating and statutory surplus level for an insurance company and on other factors including financial evaluation, collateral, funding holdbacks, guarantees, and distribution of concentrations for vehicle service contract administrators and vehicle service contract sellers/dealers. | |
The five largest concentrations by insurance company, risk retention group or other party backing the service contract represents approximately 33.3%, 22.6%, 18.3%, 16.7% and 6.5%, respectively, of Mepco’s payment plan receivables at December 31, 2013. These companies have provided the insurance coverage for the vehicle service contracts underlying the payment plan receivables; however, these companies are not all obligated to Mepco for the repayment of the payment plan receivables upon cancellation of the underlying vehicle service contracts and payment plans. Mepco has varying levels of recourse against such companies. Still, the failure of any insurer backing service contracts related to Mepco’s payment plan receivables could have an adverse effect on Mepco’s collection of those receivables. | |
The top five vehicle service contract sellers from which Mepco purchases payment plans represent approximately 19.8%, 15.3%, 13.8%, 13.4% and 10.8%, respectively of Mepco’s payment plan receivables at December 31, 2013. See note #11 for additional information on Mepco counterparties. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||||||||
NOTE 20 – REGULATORY MATTERS | |||||||||||||||||||||||||
Capital guidelines adopted by Federal and State regulatory agencies and restrictions imposed by law limit the amount of cash dividends our Bank can pay to us. Under these guidelines, the amount of dividends that may be paid in any calendar year is limited to the Bank’s current year’s net profits, combined with the retained net profits of the preceding two years. Further, the Bank cannot pay a dividend at any time that it has negative undivided profits. As of December 31, 2013, the Bank had negative undivided profits of $50.0 million. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent and in accordance with guidelines of regulatory authorities. | |||||||||||||||||||||||||
On October 25, 2011, the respective Boards of Directors of the Company and the Bank entered into a Memorandum of Understanding (“MOU”) with the Federal Reserve Bank (“FRB”) and the Michigan Department of Insurance and Financial Services (“DIFS”). The MOU largely duplicated certain provisions of board resolutions that were already in place, but also had the following specific requirements: | |||||||||||||||||||||||||
• | Submission of a joint revised capital plan by November 30, 2011 to maintain sufficient capital at the Company on a consolidated basis and at the Bank on a stand-alone basis; | ||||||||||||||||||||||||
• | Submission of quarterly progress reports regarding disposition plans for any assets in excess of $1.0 million that are in ORE, are 90 days or more past due, are on our “watch list,” or were adversely classified in our most recent examination; | ||||||||||||||||||||||||
• | Enhanced reporting and monitoring at Mepco regarding risk management and the internal classification of assets; and | ||||||||||||||||||||||||
• | Enhanced interest rate risk modeling practices. | ||||||||||||||||||||||||
Effective March 26, 2013, the FRB and DIFS terminated the MOU. Also on that date, the respective Boards of Directors of the Company and the Bank passed resolutions that required the following: | |||||||||||||||||||||||||
• | Submission of quarterly progress reports to the FRB and DIFS regarding disposition plans for any assets in excess of $1.0 million that are in ORE, are 90 days or more past due, are on our “watch list,” or are adversely classified; | ||||||||||||||||||||||||
• | Prior approval of the FRB and DIFS for the Bank to pay any dividend to the Company; and | ||||||||||||||||||||||||
• | Prior approval of the FRB and DIFS for the Company to pay any dividend to its shareholders, to make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities, to increase borrowings or guarantee any debt, and/or to purchase or redeem any of its stock. | ||||||||||||||||||||||||
During the third quarter of 2013 the FRB and DIFS informed us that the Board resolutions no longer needed to be in place. Accordingly, on October 22, 2013, the above described resolutions were rescinded by the Board of Directors of the Company and the Bank. | |||||||||||||||||||||||||
Also during the third quarter of 2013 we received regulatory approval for each of the following initiatives: | |||||||||||||||||||||||||
• | A transfer of capital from our Bank to the parent company of $7.5 million to permit the payment of all deferred and unpaid interest on our trust preferred securities. | ||||||||||||||||||||||||
• | The resumption of interest payments on our trust preferred securities. | ||||||||||||||||||||||||
• | The purchase of our Series B Preferred Stock, including any and all accrued and unpaid dividends, and the purchase of the Amended Warrant for total cash consideration of $81.0 million, all as provided for in a securities purchase agreement (see note #12). | ||||||||||||||||||||||||
• | Redemption of the trust preferred securities issued by IBC Capital Finance II. On October 11, 2013 we redeemed all ($9.2 million) of the outstanding trust preferred securities issued by IBC Capital Finance II and liquidated this entity shortly thereafter. | ||||||||||||||||||||||||
We are also subject to various regulatory capital requirements. The prompt corrective action regulations establish quantitative measures to ensure capital adequacy and require minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly discretionary, actions by regulators that could have a material effect on our consolidated financial statements. Under capital adequacy guidelines, we must meet specific capital requirements that involve quantitative measures as well as qualitative judgments by the regulators. The most recent regulatory filings as of December 31, 2013 and 2012 categorized our Bank as well capitalized. Management is not aware of any conditions or events that would have changed the most recent Federal Deposit Insurance Corporation (“FDIC”) categorization. | |||||||||||||||||||||||||
Our actual capital amounts and ratios at December 31 follow: | |||||||||||||||||||||||||
Actual | Minimum for | Minimum for Well- | |||||||||||||||||||||||
Adequately Capitalized | Capitalized Institutions | ||||||||||||||||||||||||
Institutions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 245,284 | 17.35 | % | $ | 113,086 | 8 | % | NA | NA | |||||||||||||||
Independent Bank | 234,078 | 16.57 | 113,013 | 8 | $ | 141,267 | 10 | % | |||||||||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 227,338 | 16.08 | % | $ | 56,543 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 216,146 | 15.3 | 56,507 | 4 | $ | 84,760 | 6 | % | |||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Consolidated | $ | 227,338 | 10.61 | % | $ | 85,729 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 216,146 | 10.09 | 85,681 | 4 | $ | 107,101 | 5 | % | |||||||||||||||||
2012 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 204,663 | 14.71 | % | $ | 111,268 | 8 | % | NA | NA | |||||||||||||||
Independent Bank | 207,553 | 14.95 | 111,063 | 8 | $ | 138,829 | 10 | % | |||||||||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 185,948 | 13.37 | % | $ | 55,634 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 189,777 | 13.67 | 55,531 | 4 | $ | 83,297 | 6 | % | |||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Consolidated | $ | 185,948 | 8.08 | % | $ | 92,026 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 189,777 | 8.26 | 91,919 | 4 | $ | 114,899 | 5 | % | |||||||||||||||||
NA - Not applicable | |||||||||||||||||||||||||
The components of our regulatory capital are as follows: | |||||||||||||||||||||||||
Consolidated | Independent Bank | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Total shareholders’ equity | $ | 231,581 | $ | 134,975 | $ | 250,306 | $ | 186,384 | |||||||||||||||||
Add (deduct) | |||||||||||||||||||||||||
Qualifying trust preferred securities | 39,500 | 47,678 | - | - | |||||||||||||||||||||
Accumulated other comprehensive loss | 9,245 | 8,058 | 9,245 | 8,156 | |||||||||||||||||||||
Intangible assets | (3,163 | ) | (3,975 | ) | (3,163 | ) | (3,975 | ) | |||||||||||||||||
Disallowed deferred tax assets | (49,609 | ) | - | (40,026 | ) | - | |||||||||||||||||||
Disallowed capitalized mortgage loan servicing rights | (216 | ) | (788 | ) | (216 | ) | (788 | ) | |||||||||||||||||
Tier 1 capital | 227,338 | 185,948 | 216,146 | 189,777 | |||||||||||||||||||||
Qualifying trust preferred securities | - | 990 | - | - | |||||||||||||||||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 17,946 | 17,725 | 17,932 | 17,776 | |||||||||||||||||||||
Total risk-based capital | $ | 245,284 | $ | 204,663 | $ | 234,078 | $ | 207,553 |
FAIR_VALUE_DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE DISCLOSURES [Abstract] | ' | ||||||||||||||||
FAIR VALUE DISCLOSURES | ' | ||||||||||||||||
NOTE 21 – FAIR VALUE DISCLOSURES | |||||||||||||||||
FASB ASC topic 820 defines fair value 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. FASB ASC topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||
The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1: | Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. | ||||||||||||||||
Level 2: | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. | ||||||||||||||||
Level 3: | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | ||||||||||||||||
We used the following methods and significant assumptions to estimate fair value: | |||||||||||||||||
Securities: Where quoted market prices are available in an active market, securities (trading or available for sale) are classified as Level 1 of the valuation hierarchy. Level 1 securities include certain preferred stocks included in our trading portfolio for which there are quoted prices in active markets. If quoted market prices are not available for the specific security, then fair values are estimated by (1) using quoted market prices of securities with similar characteristics, (2) matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or (3) a discounted cash flow analysis whose significant fair value inputs can generally be verified and do not typically involve judgment by management. These securities are classified as Level 2 of the valuation hierarchy and include agency and private label residential mortgage-backed securities, municipal securities and trust preferred securities. | |||||||||||||||||
Loans held for sale: The fair value of mortgage loans held for sale is based on mortgage backed security pricing for comparable assets (recurring Level 2). The fair value of loans held for sale relating to branch sale is based on a discount provided for in the branch sale agreement (non-recurring Level 2). | |||||||||||||||||
Impaired loans with specific loss allocations based on collateral value: From time to time, certain loans are considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2013 and 2012, all of our total impaired loans were evaluated based on either the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. When the fair value of the collateral is based on an appraised value or when an appraised value is not available we record the impaired loan as nonrecurring Level 3. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and thus will typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Other real estate: At the time of acquisition, other real estate is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Subsequent write-downs to reflect declines in value since the time of acquisition may occur from time to time and are recorded in loss on other real estate and repossessed assets in the Consolidated Statements of Operations. The fair value of the property used at and subsequent to the time of acquisition is typically determined by a third party appraisal of the property. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments can be significant and typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by us. Once received, an independent third party (for commercial properties over $0.25 million) or a member of our Collateral Evaluation Department (for commercial properties under $0.25 million) or a member of our Special Assets Group (for retail properties) reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. We compare the actual selling price of collateral that has been sold to the most recent appraised value of our properties to determine what additional adjustment, if any, should be made to the appraisal value to arrive at fair value. For commercial and retail properties we typically discount an appraisal to account for various factors that the appraisal excludes in its assumptions. These additional discounts generally do not result in material adjustments to the appraised value. In addition, we will adjust the appraised values for expected liquidation costs including sales commissions and transfer taxes. | |||||||||||||||||
Capitalized mortgage loan servicing rights: The fair value of capitalized mortgage loan servicing rights is based on a valuation model used by an independent third party 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. Since the secondary servicing market has not been active since the later part of 2009, model assumptions are generally unobservable and are based upon the best information available including data relating to our own servicing portfolio, reviews of mortgage servicing assumption and valuation surveys and input from various mortgage servicers and, therefore, are recorded as nonrecurring Level 3. Management evaluates the third party valuation for reasonableness each quarter as part of our financial reporting control processes. | |||||||||||||||||
Derivatives: The fair value of rate-lock mortgage loan commitments and mandatory commitments to sell mortgage loans is based on mortgage backed security pricing for comparable assets (recurring Level 2). The fair value of interest rate swap agreements, in general, was determined using a discounted cash flow model whose significant fair value inputs could generally be verified and did not typically involve judgment by management (recurring Level 2). The fair value of the Amended Warrant was determined using a simulation analysis which considers potential outcomes for a large number of independent scenarios regarding the future prices of our common stock and uses several unobservable variables (recurring Level 3). | |||||||||||||||||
Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, are summarized below: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||
Measure- | in Active | Other | Un- | ||||||||||||||
ments | Markets for | Observable | observable | ||||||||||||||
Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2013: | |||||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
Assets | |||||||||||||||||
Trading securities | $ | 498 | $ | 498 | $ | - | $ | - | |||||||||
Securities available for sale | |||||||||||||||||
U.S. agency | 31,808 | - | 31,808 | - | |||||||||||||
U.S. agency residential mortgage-backed | 203,460 | - | 203,460 | - | |||||||||||||
Private label residential mortgage-backed | 6,788 | - | 6,788 | - | |||||||||||||
Other asset backed | 45,185 | - | 45,185 | - | |||||||||||||
Obligations of states and political subdivisions | 153,678 | - | 153,678 | - | |||||||||||||
Corporate | 19,137 | - | 19,137 | - | |||||||||||||
Trust preferred | 2,425 | - | 2,425 | - | |||||||||||||
Loans held for sale | 20,390 | - | 20,390 | - | |||||||||||||
Derivatives (1) | 494 | - | 494 | - | |||||||||||||
Liabilities | |||||||||||||||||
Derivatives (2) | - | - | - | - | |||||||||||||
Measured at Fair Value on a Non-recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Capitalized mortgage loan servicing rights (3) | 7,773 | - | - | 7,773 | |||||||||||||
Impaired loans (4) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 1,997 | - | - | 1,997 | |||||||||||||
Land, land development & construction-real estate | 673 | - | - | 673 | |||||||||||||
Commercial and industrial | 2,927 | - | - | 2,927 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 1,455 | - | - | 1,455 | |||||||||||||
Resort Lending | 340 | - | - | 340 | |||||||||||||
Other real estate (5) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 559 | - | - | 559 | |||||||||||||
Land, land development & construction-real estate | 1,047 | - | - | 1,047 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 337 | - | - | 337 | |||||||||||||
Resort Lending | 1,257 | - | - | 1,257 | |||||||||||||
Installment | |||||||||||||||||
Home equity - 1st lien | 29 | - | - | 29 | |||||||||||||
Payment plan receivables | |||||||||||||||||
Full refund/partial refund | 2,668 | - | - | 2,668 | |||||||||||||
-1 | Included in accrued income and other assets | ||||||||||||||||
-2 | Included in accrued expenses and other liabilities | ||||||||||||||||
-3 | Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. | ||||||||||||||||
-4 | Only includes impaired loans with specific loss allocations based on collateral value. | ||||||||||||||||
-5 | Only includes other real estate with subsequent write downs to fair value. | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair Value | Quoted | Significant | Significant | ||||||||||||||
Measure- | Prices in | Other | Un- | ||||||||||||||
ments | Active | Observable | observable | ||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2012: | |||||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
Assets | |||||||||||||||||
Trading securities | $ | 110 | $ | 110 | $ | - | $ | - | |||||||||
Securities available for sale | |||||||||||||||||
U.S. agency | 30,667 | - | 30,667 | - | |||||||||||||
U.S. agency residential mortgage-backed | 127,412 | - | 127,412 | - | |||||||||||||
Private label residential mortgage-backed | 8,194 | - | 8,194 | - | |||||||||||||
Obligations of states and political subdivisions | 39,051 | - | 39,051 | - | |||||||||||||
Trust preferred | 3,089 | - | 3,089 | - | |||||||||||||
Loans held for sale | 47,487 | - | 47,487 | - | |||||||||||||
Derivatives (1) | 1,368 | - | 1,368 | - | |||||||||||||
Liabilities | |||||||||||||||||
Derivatives (2) | 1,320 | - | 861 | 459 | |||||||||||||
Measured at Fair Value on a Non-recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Capitalized mortgage loan servicing rights (3) | 8,814 | - | - | 8,814 | |||||||||||||
Impaired loans (4) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 3,727 | - | - | 3,727 | |||||||||||||
Land, land development & construction-real estate | 2,882 | - | - | 2,882 | |||||||||||||
Commercial and industrial | 6,581 | - | - | 6,581 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 2,694 | - | - | 2,694 | |||||||||||||
Resort Lending | 380 | - | - | 380 | |||||||||||||
Other real estate (5) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 86 | - | - | 86 | |||||||||||||
Land, land development & construction-real estate | 3,190 | - | - | 3,190 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 405 | - | - | 405 | |||||||||||||
Resort Lending | 3,535 | - | - | 3,535 | |||||||||||||
Installment | |||||||||||||||||
Home equity - 1st lien | 59 | - | - | 59 | |||||||||||||
Loans held for sale relating to branch sale | 3,292 | - | 3,292 | - | |||||||||||||
-1 | Included in accrued income and other assets | ||||||||||||||||
-2 | Included in accrued expenses and other liabilities | ||||||||||||||||
-3 | Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. | ||||||||||||||||
-4 | Only includes impaired loans with specific loss allocations based on collateral value. | ||||||||||||||||
-5 | Only includes other real estate with subsequent write downs to fair value. | ||||||||||||||||
There were no transfers between Level 1 and Level 2 during the years ended December 31, 2013 and 2012. | |||||||||||||||||
Changes in fair values for financial assets which we have elected the fair value option for the years ended December 31 are as follows: | |||||||||||||||||
Net Gains (Losses) on Assets | Total Change in | ||||||||||||||||
Fair Values | |||||||||||||||||
Included in | |||||||||||||||||
Current Period | |||||||||||||||||
Securities | Loans | Earnings | |||||||||||||||
(In thousands) | |||||||||||||||||
2013 | |||||||||||||||||
Trading securities | $ | 388 | $ | - | $ | 388 | |||||||||||
Loans held for sale | - | (1,477 | ) | (1,477 | ) | ||||||||||||
2012 | |||||||||||||||||
Trading securities | $ | 33 | $ | - | $ | 33 | |||||||||||
Loans held for sale | - | 440 | 440 | ||||||||||||||
2011 | |||||||||||||||||
Trading securities | $ | 45 | $ | - | $ | 45 | |||||||||||
Loans held for sale | - | 1,503 | 1,503 | ||||||||||||||
For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Consolidated Statements of Operations based on the contractual amount of interest income earned on these financial assets and dividend income is recorded based on cash dividends and also recorded in interest income. | |||||||||||||||||
The following represent impairment charges recognized during the years ended December 31, 2013, 2012 and 2011 relating to assets measured at fair value on a non-recurring basis: | |||||||||||||||||
• | Capitalized mortgage loan servicing rights, whose individual strata are measured at fair value had a carrying amount of $7.8 million which is net of a valuation allowance of $2.9 million at December 31, 2013 and had a carrying amount of $8.8 million which is net of a valuation allowance of $6.1 million at December 31, 2012. A recovery (charge) of $3.2 million, $0.5 million and $(3.3) million was included in our results of operations for the years ending December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
• | Loans which are measured for impairment using the fair value of collateral for collateral dependent loans, had a carrying amount of $10.8 million, with a valuation allowance of $3.4 million at December 31, 2013 and had a carrying amount of $22.8 million, with a valuation allowance of $6.5 million at December 31, 2012. An additional provision for loan losses relating to impaired loans of $1.5 million, $2.0 million and $8.9 million was included in our results of operations for the years ending December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
• | Other real estate, which is measured using the fair value of the property, had a carrying amount of $5.9 million which is net of a valuation allowance of $4.0 million at December 31, 2013 and a carrying amount of $7.3 million which is net of a valuation allowance of $6.0 million at December 31, 2012. An additional charge relating to ORE measured at fair value of $1.6 million, $1.5 million and $5.4 million was included in our results of operations during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
A reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31 follows: | |||||||||||||||||
(Liability) | |||||||||||||||||
Amended Warrant | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | (459 | ) | $ | (174 | ) | |||||||||||
Total gains (losses) realized and unrealized: | |||||||||||||||||
Included in results of operations | (1,025 | ) | (285 | ) | |||||||||||||
Included in other comprehensive income | - | - | |||||||||||||||
Purchases, issuances, settlements, maturities and calls | - | - | |||||||||||||||
Reclassification to shareholders’ equity | 1,484 | - | |||||||||||||||
Transfers in and/or out of Level 3 | - | - | |||||||||||||||
Ending balance | $ | - | $ | (459 | ) | ||||||||||||
Amount of total gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31 | $ | - | $ | (285 | ) | ||||||||||||
Because of certain anti-dilution features included in the Amended Warrant, it was not considered to be indexed to our common stock and was therefore accounted for as a derivative instrument (see note #16). Any change in value of this warrant was recorded in other income in our Consolidated Statements of Operations. However, the anti-dilution features in the Amended Warrant which caused it to be accounted for as a derivative and included in accrued expenses and other liabilities expired on April 16, 2013. As a result, the Amended Warrant was reclassified into shareholders’ equity on that date at its then fair value which totaled $1.5 million. During the third quarter of 2013 we repurchased the Amended Warrant from the UST (see note #12). | |||||||||||||||||
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis at December 31 follows: | |||||||||||||||||
Asset | Valuation Technique | Unobservable Inputs | Weighted | ||||||||||||||
(Liability) | Average | ||||||||||||||||
Fair Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
2013 | |||||||||||||||||
Capitalized mortgage loan servicing rights | $ | 7,773 | Present value of net servicing revenue | Discount rate | 10.09 | % | |||||||||||
Cost to service | $ | 81 | |||||||||||||||
Ancillary income | 29 | ||||||||||||||||
Float rate | 1.79 | % | |||||||||||||||
Impaired loans | |||||||||||||||||
Commercial | 5,597 | Sales comparison approach | Adjustment for differences between comparable sales | (1.9 | )% | ||||||||||||
Income approach | Capitalization rate | 9.3 | |||||||||||||||
Mortgage | 1,795 | Sales comparison approach | Adjustment for differences between comparable sales | 3.2 | |||||||||||||
Other real estate | |||||||||||||||||
Commercial | 1,606 | Sales comparison approach | Adjustment for differences between comparable sales | (5.7 | ) | ||||||||||||
Mortgage and Installment | 1,623 | Sales comparison approach | Adjustment for differences between comparable sales | 55.7 | |||||||||||||
Payment plan receivables | 2,668 | Sales comparison approach | Adjustment for differences between comparable sales | 10.4 | |||||||||||||
2012 | |||||||||||||||||
Capitalized mortgage loan servicing rights | $ | 8,814 | Present value of net servicing revenue | Discount rate | 11 | % | |||||||||||
Cost to service | $ | 83 | |||||||||||||||
Ancillary income | 43 | ||||||||||||||||
Float rate | 0.84 | % | |||||||||||||||
Impaired loans | |||||||||||||||||
Commercial | 13,190 | Sales comparison approach | Adjustment for differences between comparable sales | 16.7 | % | ||||||||||||
Income approach | Capitalization rate | 10.8 | |||||||||||||||
Mortgage | 3,074 | Sales comparison approach | Adjustment for differences between comparable sales | 9.5 | |||||||||||||
Other real estate | |||||||||||||||||
Commercial | 3,276 | Sales comparison approach | Adjustment for differences between comparable sales | (12.4 | ) | ||||||||||||
Income approach | Capitalization rate | 12.3 | |||||||||||||||
Mortgage and Installment | 3,999 | Sales comparison approach | Adjustment for differences between comparable sales | (6.3 | ) | ||||||||||||
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31. | |||||||||||||||||
Aggregate | Difference | Contractual | |||||||||||||||
Fair Value | Principal | ||||||||||||||||
(In thousands) | |||||||||||||||||
Loans held for sale | |||||||||||||||||
2013 | $ | 20,390 | $ | 366 | $ | 20,024 | |||||||||||
2012 | 47,487 | 1,843 | 45,644 | ||||||||||||||
2011 | 44,801 | 1,403 | 43,398 |
FAIR_VALUES_OF_FINANCIAL_INSTR
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Values of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
FAIR VALUES OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
NOTE 22 – FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||||||
Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable-interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances. | |||||||||||||||||||||
Cash and due from banks and interest bearing deposits: The recorded book balance of cash and due from banks and interest bearing deposits approximate fair value and are classified as Level 1. | |||||||||||||||||||||
Interest bearing deposits - time: Interest bearing deposits - time have been valued based on a model using a benchmark yield curve plus a base spread and are classified as Level 2. | |||||||||||||||||||||
Securities: Financial instrument assets actively traded in a secondary market have been valued using quoted market prices. Trading securities are classified as Level 1 while securities available for sale are classified as Level 2 as described in note #21. | |||||||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock: It is not practicable to determine the fair value of FHLB and FRB Stock due to restrictions placed on transferability. | |||||||||||||||||||||
Net loans and loans held for sale: The fair value of loans is calculated by discounting estimated future cash flows using estimated market discount rates that reflect credit and interest-rate risk inherent in the loans resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described in note #21. Loans held for sale are classified as Level 2 as described in note #21. | |||||||||||||||||||||
Accrued interest receivable and payable: The recorded book balance of accrued interest receivable and payable approximate fair value and are classified at the same Level as the asset and liability they are associated with. | |||||||||||||||||||||
Derivative financial instruments: Rate-lock mortgage loan commitments and mandatory commitments to sell mortgage loans have been valued based on mortgage backed security pricing for comparable assets. Interest rate swaps (at December 31, 2012) were valued based on the discounted value of contractual cash flows using a discount rate approximating current market rates. Each of these instruments has been classified as Level 2 as described in note #21. The Amended Warrant (at December 31, 2012) was valued based on a simulation analysis which considers potential outcomes for a large number of independent scenarios and is classified as Level 3 as described in note #21. | |||||||||||||||||||||
Deposits: Deposits without a stated maturity, including demand deposits, savings, NOW and money market accounts, have a fair value equal to the amount payable on demand. Each of these instruments is classified as Level 1. Deposits with a stated maturity, such as certificates of deposit have generally been valued based on the discounted value of contractual cash flows using a discount rate approximating current market rates for liabilities with a similar maturity resulting in a Level 2 classification. | |||||||||||||||||||||
Other borrowings: Other borrowings have been valued based on the discounted value of contractual cash flows using a discount rate approximating current market rates for liabilities with a similar maturity resulting in a Level 2 classification. | |||||||||||||||||||||
Subordinated debentures: Subordinated debentures have generally been valued based on a quoted market price of the specific or similar instruments resulting in a Level 1 or Level 2 classification. | |||||||||||||||||||||
The estimated fair values and recorded book balances at December 31 follow: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Recorded | Fair Value | Quoted | Significant | Significant | |||||||||||||||||
Book | Measure- | Prices in | Other | Un- | |||||||||||||||||
Balance | ments | Active | Observable | observable | |||||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 48,156 | $ | 48,156 | $ | 48,156 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 70,925 | 70,925 | 70,925 | - | - | ||||||||||||||||
Interest bearing deposits - time | 17,999 | 18,000 | - | 18,000 | - | ||||||||||||||||
Trading securities | 498 | 498 | 498 | - | - | ||||||||||||||||
Securities available for sale | 462,481 | 462,481 | - | 462,481 | - | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 23,419 | NA | NA | NA | NA | ||||||||||||||||
Net loans and loans held for sale | 1,362,635 | 1,333,229 | - | 20,390 | 1,312,839 | ||||||||||||||||
Accrued interest receivable | 5,948 | 5,948 | 1 | 1,426 | 4,521 | ||||||||||||||||
Derivative financial instruments | 494 | 494 | - | 494 | - | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 1,440,225 | $ | 1,440,225 | $ | 1,440,225 | $ | - | $ | - | |||||||||||
Deposits with stated maturity (1) | 444,581 | 446,366 | - | 446,366 | - | ||||||||||||||||
Other borrowings | 17,188 | 19,726 | - | 19,726 | - | ||||||||||||||||
Subordinated debentures | 40,723 | 27,871 | - | 27,871 | - | ||||||||||||||||
Accrued interest payable | 445 | 445 | 20 | 425 | - | ||||||||||||||||
Derivative financial instruments | - | - | - | - | - | ||||||||||||||||
2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 55,487 | $ | 55,487 | $ | 55,487 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 124,295 | 124,295 | 124,295 | - | - | ||||||||||||||||
Trading securities | 110 | 110 | 110 | - | - | ||||||||||||||||
Securities available for sale | 208,413 | 208,413 | - | 208,413 | - | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 20,838 | NA | NA | NA | NA | ||||||||||||||||
Net loans and loans held for sale | 1,425,643 | 1,400,385 | - | 50,779 | 1,349,606 | ||||||||||||||||
Accrued interest receivable | 5,814 | 5,814 | 102 | 934 | 4,778 | ||||||||||||||||
Derivative financial instruments | 1,368 | 1,368 | - | 1,368 | - | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 1,360,609 | $ | 1,360,609 | $ | 1,360,609 | $ | - | $ | - | |||||||||||
Deposits with stated maturity (1) | 418,928 | 420,374 | - | 420,374 | - | ||||||||||||||||
Other borrowings | 17,625 | 21,463 | - | 21,463 | - | ||||||||||||||||
Subordinated debentures | 50,175 | 42,235 | 7,956 | 34,279 | - | ||||||||||||||||
Accrued interest payable | 7,197 | 7,197 | 2,942 | 4,255 | - | ||||||||||||||||
Derivative financial instruments | 1,320 | 1,320 | - | 861 | 459 | ||||||||||||||||
-1 | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $11.2 million and $1.2 million at December 31, 2013 and 2012, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $72.3 million and $32.0 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal and therefore are not disclosed. | |||||||||||||||||||||
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument. | |||||||||||||||||||||
Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments. | |||||||||||||||||||||
Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. |
OPERATING_SEGMENTS
OPERATING SEGMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
OPERATING SEGMENTS [Abstract] | ' | ||||||||||||||||||||
OPERATING SEGMENTS | ' | ||||||||||||||||||||
NOTE 23 – OPERATING SEGMENTS | |||||||||||||||||||||
Our reportable segments are based upon legal entities. We currently have two reportable segments: Independent Bank (“IB” or “Bank”) and Mepco. These business segments are also differentiated based on the products and services provided. We evaluate performance based principally on net income (loss) of the respective reportable segments. | |||||||||||||||||||||
In the normal course of business, our IB segment provides funding to our Mepco segment through an intercompany line of credit priced at the prime rate of interest as published in the Wall Street Journal. Our IB segment also provides certain administrative services to our Mepco segment which are reimbursed at an agreed upon rate. These intercompany transactions are eliminated upon consolidation. The only other material intersegment balances and transactions are investments in subsidiaries at the parent entities and cash balances on deposit at our IB segment. | |||||||||||||||||||||
A summary of selected financial information for our reportable segments follows: | |||||||||||||||||||||
IB | Mepco | Other(1)(2) | Elimination(3) | Total | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Total assets | $ | 2,104,550 | $ | 94,648 | $ | 272,348 | $ | (261,603 | ) | $ | 2,209,943 | ||||||||||
Interest income | 76,018 | 11,103 | - | - | 87,121 | ||||||||||||||||
Net interest income | 71,496 | 8,780 | (2,317 | ) | - | 77,959 | |||||||||||||||
Provision for loan losses | (3,891 | ) | (97 | ) | - | - | (3,988 | ) | |||||||||||||
Income (loss) before income tax | 29,605 | (2,891 | ) | (3,961 | ) | (95 | ) | 22,658 | |||||||||||||
Net income (loss) | 74,313 | (1,801 | ) | 5,092 | (95 | ) | 77,509 | ||||||||||||||
2012 | |||||||||||||||||||||
Total assets | $ | 1,885,807 | $ | 135,447 | $ | 192,343 | $ | (189,730 | ) | $ | 2,023,867 | ||||||||||
Interest income | 84,760 | 14,638 | - | - | 99,398 | ||||||||||||||||
Net interest income | 77,919 | 11,115 | (2,779 | ) | - | 86,255 | |||||||||||||||
Provision for loan losses | 6,895 | (8 | ) | - | - | 6,887 | |||||||||||||||
Income (loss) before income tax | 27,379 | 2,591 | (3,677 | ) | (95 | ) | 26,198 | ||||||||||||||
Net income (loss) | 28,260 | 1,710 | (3,677 | ) | (95 | ) | 26,198 | ||||||||||||||
2011 | |||||||||||||||||||||
Total assets | $ | 2,132,736 | $ | 172,007 | $ | 157,251 | $ | (154,588 | ) | $ | 2,307,406 | ||||||||||
Interest income | 93,310 | 21,452 | - | - | 114,762 | ||||||||||||||||
Net interest income | 81,224 | 16,074 | (2,729 | ) | - | 94,569 | |||||||||||||||
Provision for loan losses | 27,972 | (26 | ) | - | - | 27,946 | |||||||||||||||
Loss before income tax | (11,137 | ) | (6,694 | ) | (2,486 | ) | (95 | ) | (20,412 | ) | |||||||||||
Net loss | (12,768 | ) | (4,849 | ) | (2,488 | ) | (95 | ) | (20,200 | ) | |||||||||||
-1 | During 2013 IB and Other (parent company) include $47.1 million and $9.0 million, respectively of income tax benefit related to the reversal of the valuation allowance on our net deferred tax assets (see note #13). | ||||||||||||||||||||
-2 | Includes amounts relating to our parent company and certain insignificant operations. | ||||||||||||||||||||
-3 | Includes parent company’s investment in subsidiaries and cash balances maintained at subsidiary. | ||||||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | ' | ||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||||||||||||||||||||||||
NOTE 24 – ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||||||||||||||
A summary of changes in accumulated other comprehensive loss (“AOCL”) during the years ended December 31 follows (1): | |||||||||||||||||||||||||
Unrealized | Dispropor- | Unrealized | Unrealized | Dispropor- | Total | ||||||||||||||||||||
Losses on | tionate Tax | Losses on | Losses on | tionate Tax | |||||||||||||||||||||
Available for | Effects from | Cash Flow | Settled | Effects from | |||||||||||||||||||||
Sale | Securities | Hedges | Derivatives | Cash Flow | |||||||||||||||||||||
Securities | Available for | Hedges | |||||||||||||||||||||||
Sale | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Balances at beginning of period | $ | (516 | ) | $ | (5,617 | ) | $ | (739 | ) | $ | - | $ | (1,186 | ) | $ | (8,058 | ) | ||||||||
Income tax | 181 | (181 | ) | 258 | - | (258 | ) | - | |||||||||||||||||
Balances at beginning of period, net of tax | (335 | ) | (5,798 | ) | (481 | ) | - | (1,444 | ) | (8,058 | ) | ||||||||||||||
Terminated cash flow hedge | - | - | 370 | (370 | ) | - | - | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (2,877 | ) | - | (24 | ) | - | - | (2,901 | ) | ||||||||||||||||
Amounts reclassified from AOCL | 12 | - | 135 | 123 | 1,444 | 1,714 | |||||||||||||||||||
Net current period other comprehensive income (loss) | (2,865 | ) | - | 111 | 123 | 1,444 | (1,187 | ) | |||||||||||||||||
Balances at end of period | $ | (3,200 | ) | $ | (5,798 | ) | $ | - | $ | (247 | ) | $ | - | $ | (9,245 | ) | |||||||||
2012 | |||||||||||||||||||||||||
Balances at beginning of period | $ | (3,579 | ) | $ | (5,617 | ) | $ | (1,103 | ) | $ | (436 | ) | $ | (1,186 | ) | $ | (11,921 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 3,917 | - | (127 | ) | - | - | 3,790 | ||||||||||||||||||
Amounts reclassified from AOCL | (854 | ) | - | 491 | 436 | - | 73 | ||||||||||||||||||
Net current period other comprehensive income (loss) | 3,063 | - | 364 | 436 | - | 3,863 | |||||||||||||||||||
Balances at end of period | $ | (516 | ) | $ | (5,617 | ) | $ | (739 | ) | $ | - | $ | (1,186 | ) | $ | (8,058 | ) | ||||||||
2011 | |||||||||||||||||||||||||
Balances at beginning of period | $ | (4,448 | ) | $ | (5,313 | ) | $ | (1,420 | ) | $ | (1,095 | ) | $ | (844 | ) | $ | (13,120 | ) | |||||||
Disproportionate tax effects | - | (304 | ) | - | - | (342 | ) | (646 | ) | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 313 | - | (482 | ) | - | - | (169 | ) | |||||||||||||||||
Amounts reclassified from AOCL | 556 | - | 799 | 659 | - | 2,014 | |||||||||||||||||||
Net current period other comprehensive income (loss) | 869 | (304 | ) | 317 | 659 | (342 | ) | 1,199 | |||||||||||||||||
Balances at end of period | $ | (3,579 | ) | $ | (5,617 | ) | $ | (1,103 | ) | $ | (436 | ) | $ | (1,186 | ) | $ | (11,921 | ) | |||||||
-1 | 2013 amounts are presented net of tax as we removed substantially all of the valuation allowance on our deferred tax assets during the second quarter of 2013 (see note #13). | ||||||||||||||||||||||||
The disproportionate tax effects from securities available for sale and cash flow hedges arose due to tax effects of other comprehensive income (“OCI”) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. During the second quarter of 2013, we terminated our last remaining cash flow hedge and cleared the disproportionate tax effects relating to cash flow hedges from accumulated other comprehensive income (see note #13). | |||||||||||||||||||||||||
A summary of reclassifications out of each component of AOCL for the years ended December 31 follows: | |||||||||||||||||||||||||
AOCL Component | Reclassified | Affected Line Item in | |||||||||||||||||||||||
From AOCL | Consolidated Statements of Operations | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||
$ | 7 | Net gains on securities | |||||||||||||||||||||||
(26 | ) | Net impairment loss recognized in earnings | |||||||||||||||||||||||
(19 | ) | Total reclassifications before tax | |||||||||||||||||||||||
(7 | ) | Tax expense (benefit) | |||||||||||||||||||||||
$ | (12 | ) | Reclassifications, net of tax | ||||||||||||||||||||||
Unrealized losses on cash flow hedges | |||||||||||||||||||||||||
$ | (208 | ) | Interest expense | ||||||||||||||||||||||
(73 | ) | Tax expense (benefit) | |||||||||||||||||||||||
$ | (135 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Unrealized losses on settled derivatives | |||||||||||||||||||||||||
$ | (189 | ) | Interest expense | ||||||||||||||||||||||
(66 | ) | Tax expense (benefit) | |||||||||||||||||||||||
$ | (123 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Disproportionate tax effects from cash flow | |||||||||||||||||||||||||
hedges | $ | 1,444 | Tax expense (benefit) | ||||||||||||||||||||||
$ | (1,714 | ) | Total reclassifications for the period, net of tax | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||
$ | 1,193 | Net gains on securities | |||||||||||||||||||||||
(339 | ) | Net impairment loss recognized in earnings | |||||||||||||||||||||||
854 | Total reclassifications before tax | ||||||||||||||||||||||||
- | Tax expense (benefit) | ||||||||||||||||||||||||
$ | 854 | Reclassifications, net of tax | |||||||||||||||||||||||
Unrealized losses on cash flow hedges | |||||||||||||||||||||||||
$ | (491 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit) | ||||||||||||||||||||||||
$ | (491 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Unrealized losses on settled derivatives | |||||||||||||||||||||||||
$ | (436 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit) | ||||||||||||||||||||||||
$ | (436 | ) | Reclassification, net of tax | ||||||||||||||||||||||
$ | (73 | ) | Total reclassifications for the period, net of tax | ||||||||||||||||||||||
AOCL Component | Reclassified From AOCL | Affected Line Item in | |||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||
$ | 204 | Net gains on securities | |||||||||||||||||||||||
(760 | ) | Net impairment loss recognized in earnings | |||||||||||||||||||||||
(556 | ) | Total reclassifications before tax | |||||||||||||||||||||||
- | Tax expense (benefit ) | ||||||||||||||||||||||||
$ | (556 | ) | Reclassifications, net of tax | ||||||||||||||||||||||
Disproportionate tax effects from available for sale securities | $ | (304 | ) | Tax expense (benefit ) | |||||||||||||||||||||
Unrealized losses on cash flow hedges | |||||||||||||||||||||||||
$ | (799 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit ) | ||||||||||||||||||||||||
$ | (799 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Unrealized losses on settled derivatives | |||||||||||||||||||||||||
$ | (659 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit ) | ||||||||||||||||||||||||
$ | (659 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Disproportionate tax effects from cash flow hedges | $ | (342 | ) | Tax expense (benefit ) | |||||||||||||||||||||
$ | (1,368 | ) | Total reclassifications for the period, net of tax |
INDEPENDENT_BANK_CORPORATION_P
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract] | ' | ||||||||||||
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | ' | ||||||||||||
NOTE 25 – INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION | |||||||||||||
Presented below are condensed financial statements for our parent company. | |||||||||||||
CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 11,654 | $ | 3,788 | |||||||||
Investment in subsidiaries | 251,529 | 187,890 | |||||||||||
Other assets | 9,165 | 665 | |||||||||||
Total Assets | $ | 272,348 | $ | 192,343 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Subordinated debentures | $ | 40,723 | $ | 50,175 | |||||||||
Other liabilities | 391 | 7,635 | |||||||||||
Shareholders’ equity | 231,234 | 134,533 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 272,348 | $ | 192,343 | |||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
OPERATING INCOME | |||||||||||||
(Increase) decrease in fair value of U.S. Treasury warrant | $ | (1,025 | ) | $ | (285 | ) | $ | 1,137 | |||||
Other income | 63 | 70 | 64 | ||||||||||
Total Operating Income | (962 | ) | (215 | ) | 1,201 | ||||||||
OPERATING EXPENSES | |||||||||||||
Interest expense | 2,317 | 2,779 | 2,729 | ||||||||||
Administrative and other expenses | 682 | 683 | 958 | ||||||||||
Total Operating Expenses | 2,999 | 3,462 | 3,687 | ||||||||||
Loss Before Income Tax and Equity in Undistributed | |||||||||||||
Net Income (Loss) of Subsidiaries | (3,961 | ) | (3,677 | ) | (2,486 | ) | |||||||
Income tax expense (benefit) | (9,053 | ) | - | 2 | |||||||||
Income (Loss) Before Equity in Undistributed Net | |||||||||||||
Income (Loss) of Subsidiaries | 5,092 | (3,677 | ) | (2,488 | ) | ||||||||
Equity in undistributed net income (loss) of subsidiaries | 72,417 | 29,875 | (17,712 | ) | |||||||||
Net Income (Loss) | $ | 77,509 | $ | 26,198 | $ | (20,200 | ) | ||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Net Income (Loss) | $ | 77,509 | $ | 26,198 | $ | (20,200 | ) | ||||||
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET | |||||||||||||
CASH USED IN OPERATING ACTIVITIES | |||||||||||||
Deferred income taxes | (8,955 | ) | - | - | |||||||||
Share based compensation | 84 | 184 | 157 | ||||||||||
Depreciation, amortization of intangible assets and premiums, and accretion of discounts on securities and loans | - | - | 1 | ||||||||||
Increase in other assets | 738 | (46 | ) | (92 | ) | ||||||||
Increase (decrease) in other liabilities | (5,858 | ) | 2,945 | (2,404 | ) | ||||||||
Equity in undistributed net (income) loss of subsidiaries operations | (72,417 | ) | (29,875 | ) | 17,712 | ||||||||
Total Adjustments | (86,408 | ) | (26,792 | ) | 15,374 | ||||||||
Net Cash Used in Operating Activities | (8,899 | ) | (594 | ) | (4,826 | ) | |||||||
CASH FLOW FROM INVESTING ACTIVITIES - return of capital from subsidiary | 7,500 | - | - | ||||||||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from issuance of common stock | 100,230 | 2,244 | 2,245 | ||||||||||
Redemption of convertible preferred stock and common stock warrant | (81,000 | ) | - | - | |||||||||
Redemption of subordinated debt | (9,452 | ) | - | - | |||||||||
Share based compensation withholding obligation | (513 | ) | - | - | |||||||||
Net Cash From Financing Activities | 9,265 | 2,244 | 2,245 | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 7,866 | 1,650 | (2,581 | ) | |||||||||
Cash and Cash Equivalents at Beginning of Year | 3,788 | 2,138 | 4,719 | ||||||||||
Cash and Cash Equivalents at End of Year | $ | 11,654 | $ | 3,788 | $ | 2,138 |
BRANCH_SALE
BRANCH SALE | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
BRANCH SALE [Abstract] | ' | ||||
BRANCH SALE | ' | ||||
NOTE 26 – BRANCH SALE | |||||
On December 7, 2012 we sold 21 branches to another financial institution (the “Branch Sale”). The branches sold included six branch locations in the Battle Creek, Michigan market area and 15 branch locations in Northeast Michigan. | |||||
The Branch Sale resulted in the transfer of approximately $403.1 million of deposits in exchange for our receipt of a deposit premium of approximately $11.5 million. We also sold approximately $48.0 million of loans at a discount of 1.75% and premises and equipment totaling approximately $8.1 million. The Branch Sale also resulted in our transfer of $336.1 million of cash to the purchaser. We recorded a net gain on the Branch Sale of approximately $5.4 million. This gain is net of an allocation of $2.6 million of existing core deposit intangibles, a $2.5 million loss on the sale of premises and equipment, a $0.2 million loss on the sale of loans and $0.8 million in transaction and other related net costs. | |||||
(In thousands) | |||||
Loans: | |||||
Commercial | $ | 27,083 | |||
Mortgage | 8,074 | ||||
Installment | 12,797 | ||||
Total loans | 47,954 | ||||
Allowance for loan losses | (610 | ) | |||
Net loans | $ | 47,344 | |||
Deposits | |||||
Non-interest bearing | $ | 71,718 | |||
Savings and interest bearing-checking | 217,264 | ||||
Retail time | 114,107 | ||||
Total deposits | $ | 403,089 | |||
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
ACCOUNTING POLICIES [Abstract] | ' |
PRINCIPLES OF CONSOLIDATION | ' |
PRINCIPLES OF CONSOLIDATION — The consolidated financial statements include the accounts of Independent Bank Corporation and its subsidiaries. The income, expenses, assets and liabilities of the subsidiaries are included in the respective accounts of the consolidated financial statements, after elimination of all material intercompany accounts and transactions. | |
STATEMENTS OF CASH FLOWS | ' |
STATEMENTS OF CASH FLOWS — For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits and federal funds sold. Generally, federal funds are sold for one-day periods. We report net cash flows for customer loan and deposit transactions, for short-term borrowings and for vehicle service contract counterparty payables. | |
INTEREST BEARING DEPOSITS | ' |
INTEREST BEARING DEPOSITS — Interest bearing deposits consist of overnight deposits with the Federal Reserve Bank. | |
INTEREST BEARING DEPOSITS - TIME — Interest bearing deposits - time consist of deposits with original maturities of 3 months or more. | |
LOANS HELD FOR SALE | ' |
LOANS HELD FOR SALE — Mortgage loans originated and intended for sale in the secondary market are carried at fair value. Fair value adjustments as well as realized gains and losses, are recorded in current earnings. Certain loans held for sale at December 31, 2012 relating to our branch sale [see note #26] were carried at the lower of cost or market. | |
MORTGAGE LOAN SERVICING RIGHTS | ' |
MORTGAGE LOAN SERVICING RIGHTS — We recognize as separate assets the rights to service mortgage loans for others. The fair value of originated mortgage loan servicing rights has been determined based upon fair value indications for similar servicing. The mortgage loan servicing rights are amortized in proportion to and over the period of estimated net loan servicing income. We assess mortgage loan servicing rights for impairment based on the fair value of those rights. For purposes of measuring impairment, the characteristics used include interest rate, term and type. Amortization of and changes in the impairment reserve on originated mortgage loan servicing rights are included in mortgage loan servicing in the Consolidated Statements of Operations. The fair values of mortgage loan servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Mortgage loan servicing income is recorded for fees earned for servicing loans previously sold. The fees are generally based on a contractual percentage of the outstanding principal and are recorded as income when earned. Mortgage loan servicing fees, excluding amortization of and changes in the impairment reserve on originated mortgage loan servicing rights, totaled $4.3 million, $4.4 million and $4.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. Late fees and ancillary fees related to loan servicing are not material. | |
TRANSFERS OF FINANCIAL ASSETS | ' |
TRANSFERS OF FINANCIAL ASSETS — Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from us, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and we do not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
SECURITIES | ' |
SECURITIES — We classify our securities as trading, held to maturity or available for sale. Trading securities are bought and held principally for the purpose of selling them in the near term and are reported at fair value with realized and unrealized gains and losses included in earnings. Securities held to maturity represent those securities for which we have the positive intent and ability to hold until maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts computed on the level-yield method. We did not have any securities held to maturity at December 31, 2013 and 2012. Securities available for sale represent those securities not classified as trading or held to maturity and are reported at fair value with unrealized gains and losses, net of applicable income taxes reported in other comprehensive income (loss). | |
We evaluate securities for OTTI at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. In performing this evaluation management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) the impact of changes in market interest rates on the market value of the security and (4) an assessment of whether we intend to sell, or it is more likely than not that we will be required to sell a security in an unrealized loss position before recovery of its amortized cost basis. For securities that do not meet the aforementioned recovery criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income or loss. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. | |
Gains and losses realized on the sale of securities available for sale are determined using the specific identification method and are recognized on a trade-date basis. Premiums and discounts are recognized in interest income computed on the level-yield method. | |
LOAN REVENUE RECOGNITION | ' |
LOAN REVENUE RECOGNITION — Interest on loans is accrued based on the principal amounts outstanding. In general the accrual of interest income is discontinued when a loan becomes 90 days past due for commercial loans and installment loans and when a loan misses four consecutive payments for mortgage loans and the borrower’s capacity to repay the loan and collateral values appear insufficient for each loan class. However, loans may be placed on non-accrual status regardless of whether or not such loans are considered past due if, in management’s opinion, the borrower is unable to meet payment obligations as they become due or as required by regulatory provisions. All interest accrued but not received for all loans placed on non-accrual is reversed from interest income. Payments on such loans are generally applied to the principal balance until qualifying to be returned to accrual status. A non-accrual loan may be restored to accrual status when interest and principal payments are current and the loan appears otherwise collectible. Delinquency status for all classes in the commercial and installment loan segments is based on the actual number of days past due as required by the contractual terms of the loan agreement while delinquency status for mortgage loan segment classes is based on the number of payments past due. | |
Certain loan fees and direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Fees received in connection with loan commitments are deferred until the loan is advanced and are then recognized generally over the contractual life of the loan as an adjustment of yield. Fees on commitments that expire unused are recognized at expiration. Fees received for letters of credit are recognized as revenue over the life of the commitment. | |
PAYMENT PLAN RECEIVABLE REVENUE RECOGNITION | ' |
PAYMENT PLAN RECEIVABLE REVENUE RECOGNITION — Payment plan receivables are acquired by our Mepco segment at a discount and reported net of this discount in the Consolidated Statements of Financial Condition. This discount is accreted into interest and fees on loans over the life of the receivable computed on a level-yield method. All classes of payment plan receivables that have been canceled and are 90 days or more past due as required by the contractual terms of the payment plan are classified as non-accrual. | |
ALLOWANCE FOR LOAN LOSSES | ' |
ALLOWANCE FOR LOAN LOSSES — Portfolios are disaggregated into segments for purposes of determining the allowance for loan losses (“AFLL”) which include commercial, mortgage and installment loans and payment plan receivables. These segments are further disaggregated into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Classes within the commercial loan segment include (i) income producing – real estate, (ii) land, land development and construction – real estate and (iii) commercial and industrial. Classes within the mortgage loan segment include (i) 1-4 family, (ii) resort lending, (iii) home equity – 1st lien and (iv) home equity 2nd lien. Classes within the installment loan segment include (i) home equity – 1st lien, (ii) home equity – 2nd lien, (iii) loans not secured by real estate and (iv) other. Classes within the payment plan receivables segment include (i) full refund, (ii) partial refund and (iii) other. Commercial loans are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or could cause a decline in the value of the collateral that secures the loan. Mortgage and installment loans and payment plan receivables are subject to adverse employment conditions in the local economy which could increase default rates. In addition, mortgage loans and real estate based installment loans are subject to adverse market conditions which could cause a decline in the value of collateral that secures the loan. For an analysis of the AFLL by portfolio segment and credit quality information by class, see note #4. | |
Some loans will not be repaid in full. Therefore, an AFLL is maintained at a level which represents our best estimate of losses incurred. In determining the allowance and the related provision for loan losses, we consider four principal elements: (i) specific allocations based upon probable losses identified during the review of the loan portfolio, (ii) allocations established for other adversely rated commercial loans, (iii) allocations based principally on historical loan loss experience, and (iv) additional allocations based on subjective factors, including local and general economic business factors and trends, portfolio concentrations and changes in the size and/or the general terms of the loan portfolios. | |
The first AFLL element (specific allocations) reflects our estimate of probable incurred losses based upon our systematic review of specific loans. These estimates are based upon a number of objective factors, such as payment history, financial condition of the borrower, discounted collateral exposure and discounted cash flow analysis. Impaired commercial, mortgage and installment loans are allocated allowance amounts using this first element. The second AFLL element (other adversely rated commercial loans) reflects the application of our loan rating system. This rating system is similar to those employed by state and federal banking regulators. Commercial loans that are rated below a certain predetermined classification are assigned a loss allocation factor for each loan classification category that is based upon a historical analysis of both the probability of default and the expected loss rate (“loss given default”). The lower the rating assigned to a loan or category, the greater the allocation percentage that is applied. The third AFLL element (historical loss allocations) is determined by assigning allocations to higher rated (“non-watch credit”) commercial loans using a probability of default and loss given default similar to the second AFLL element and to homogenous mortgage and installment loan groups based upon borrower credit score and portfolio segment. For homogenous mortgage and installment loans a probability of default for each homogenous pool is calculated by way of credit score migration. Historical loss data for each homogenous pool coupled with the associated probability of default is utilized to calculate an expected loss allocation rate. The fourth AFLL element (additional allocations based on subjective factors) is based on factors that cannot be associated with a specific credit or loan category and reflects our attempt to ensure that the overall allowance for loan losses appropriately reflects a margin for the imprecision necessarily inherent in the estimates of expected credit losses. We consider a number of subjective factors when determining this fourth element, including local and general economic business factors and trends, portfolio concentrations and changes in the size, mix and the general terms of the overall loan portfolio. | |
Increases in the AFLL are recorded by a provision for loan losses charged to expense. Although we periodically allocate portions of the AFLL to specific loans and loan portfolios, the entire AFLL is available for incurred losses. We generally charge-off commercial, homogenous residential mortgage and installment loans and payment plan receivables when they are deemed uncollectible or reach a predetermined number of days past due based on loan product, industry practice and other factors. Collection efforts may continue and recoveries may occur after a loan is charged against the AFLL. | |
While we use relevant information to recognize losses on loans, additional provisions for related losses may be necessary based on changes in economic conditions, customer circumstances and other credit risk factors. | |
A loan is impaired when full payment under the loan terms is not expected. Generally, those loans included in each commercial loan class that are rated substandard, classified as non-performing or were classified as non- performing in the preceding quarter are evaluated for impairment. Those loans included in each mortgage loan or installment class whose terms have been modified and considered a troubled debt restructuring are also impaired. Loans which have been modified resulting in a concession, and which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDR”) and classified as impaired. We measure our investment in an impaired loan based on one of three methods: the loan’s observable market price, the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s effective interest rate. Large groups of smaller balance homogeneous loans, such as those loans included in each installment and mortgage loan class and each payment plan receivable class are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. TDR loans are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception of the loan. If a TDR is considered to be a collateral dependent loan, the loan is reported net, at the fair value of collateral. | |
PROPERTY AND EQUIPMENT | ' |
PROPERTY AND EQUIPMENT — Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is computed using both straight-line and accelerated methods over the estimated useful lives of the related assets. Buildings are generally depreciated over a period not exceeding 39 years and equipment is generally depreciated over periods not exceeding 7 years. Leasehold improvements are depreciated over the shorter of their estimated useful life or lease period. | |
BANK OWNED LIFE INSURANCE | ' |
BANK OWNED LIFE INSURANCE — We have purchased a group flexible premium non-participating variable life insurance contract on approximately 270 lives (who were salaried employees at the time we purchased the contract) in order to recover the cost of providing certain employee benefits. Bank owned life insurance is recorded at its cash surrender value or the amount that can be currently realized. | |
OTHER REAL ESTATE AND REPOSSESSED ASSETS | ' |
OTHER REAL ESTATE AND REPOSSESSED ASSETS — Other real estate at the time of acquisition is recorded at fair value, less estimated costs to sell, which becomes the property’s new basis. Fair value is typically determined by a third party appraisal of the property. Any write-downs at date of acquisition are charged to the allowance for loan losses. Expense incurred in maintaining assets and subsequent write-downs to reflect declines in value and gains or losses on the sale of other real estate are recorded in the Consolidated Statements of Operations. Non-real estate repossessed assets are treated in a similar manner. | |
OTHER INTANGIBLE ASSETS | ' |
OTHER INTANGIBLE ASSETS — Other intangible assets consist of core deposits. They are initially measured at fair value and then are amortized on both straight-line and accelerated methods over their estimated useful lives, which range from 10 to 15 years. | |
VEHICLE SERVICE CONTRACT COUNTERPARTY RECEIVABLES, NET | ' |
VEHICLE SERVICE CONTRACT COUNTERPARTY RECEIVABLES, NET — These amounts represent funds due to Mepco from its counterparties for cancelled service contracts. Upon the cancellation of a service contract and the completion of the billing process to the counterparties for amounts due to Mepco, there is a decrease in the amount of “payment plan receivables” and an increase in the amount of “vehicle service contract counterparty receivables” until such time as the amount due from the counterparty is collected. | |
INCOME TAXES | ' |
INCOME TAXES — We employ the asset and liability method of accounting for income taxes. This method establishes deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at tax rates expected to be in effect when such amounts are realized or settled. Under this method, the effect of a change in tax rates is recognized in the period that includes the enactment date. The deferred tax asset is subject to a valuation allowance for that portion of the asset for which it is more likely than not that it will not be realized. | |
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. | |
We recognize interest and/or penalties related to income tax matters in income tax expense. | |
We file a consolidated federal income tax return. Intercompany tax liabilities are settled as if each subsidiary filed a separate return. | |
VEHICLE SERVICE CONTRACT COUNTERPARTY PAYABLES | ' |
VEHICLE SERVICE CONTRACT COUNTERPARTY PAYABLES — Vehicle service contract counterparty payables represent amounts owed to insurance companies or other counterparties for vehicle service contract payment plans purchased by us. The vehicle service contract counterparty payable becomes due in accordance with the terms of the specific contract between Mepco and the counterparty. Typically these terms require payment after Mepco has received one or two payments from the consumer on the payment plan receivable. | |
COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS | ' |
COMMITMENTS TO EXTEND CREDIT AND RELATED FINANCIAL INSTRUMENTS — Financial instruments may include commitments to extend credit and standby letters of credit. Financial instruments involve varying degrees of credit and interest-rate risk in excess of amounts reflected in the Consolidated Statements of Financial Condition. Exposure to credit risk in the event of non-performance by the counterparties to the financial instruments for loan commitments to extend credit and letters of credit is represented by the contractual amounts of those instruments. In general, we use a similar methodology to estimate our liability for these off-balance sheet credit exposures as we do for our allowance for loan losses. For commercial related commitments, we estimate liability using our loan rating system and for mortgage and installment commitments we estimate liability principally upon historical loss experience. Our estimated liability for off balance sheet commitments is included in accrued expenses and other liabilities in our Consolidated Statements of Financial Condition and any charge or recovery is recorded in non-interest expenses in our Consolidated Statements of Operations. | |
DERIVATIVE FINANCIAL INSTRUMENTS | ' |
DERIVATIVE FINANCIAL INSTRUMENTS — We record derivatives on our Consolidated Statement of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting. | |
At the inception of the derivative we designate the derivative as one of three types based on our intention and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“Fair Value Hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“Cash Flow Hedge”), or (3) an instrument with no hedging designation. For a Fair Value Hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item, are recognized in current earnings as fair values change. We currently do not have any Fair Value Hedges. For a Cash Flow Hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. We currently do not have any Cash Flow Hedges as we terminated our last remaining hedge during the second quarter of 2013. For both types of hedges, changes in the fair value of derivatives that are not highly effective in hedging the changes in fair value or expected cash flows of the hedged item are recognized immediately in current earnings. For instruments with no hedging designation the gain or loss on the derivative is reported currently in earnings. These free standing instruments currently consist of mortgage banking related derivatives and include rate-lock loan commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and mandatory forward commitments for the future delivery of these mortgage loans. Fair values of these mortgage derivatives are estimated based on mortgage backed security pricing for comparable assets. We enter into mandatory forward commitments for the future delivery of mortgage loans generally when interest rate locks are entered into, in order to hedge the change in interest rates resulting from our commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on mortgage loans. | |
Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest expense. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. | |
We formally document the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking Fair Value or Cash Flow Hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. We discontinue hedge accounting when it is determined that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. | |
When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded currently in earnings. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. | |
COMPREHENSIVE INCOME (LOSS) | ' |
COMPREHENSIVE INCOME (LOSS) — Comprehensive income (loss) consists of net income (loss), unrealized gains and losses on securities available for sale and derivative instruments classified as cash flow hedges. | |
INCOME (LOSS) PER COMMON SHARE | ' |
INCOME (LOSS) PER COMMON SHARE — Basic income (loss) and diluted (loss) per common share are computed by dividing net income applicable to common stock by the weighted average number of common shares outstanding during the period and participating share awards. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. For diluted income per common share, net income is divided by the weighted average number of common shares outstanding during the period plus the dilutive effects of the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors. For any period in which a loss is recorded, dividends on convertible preferred stock are not added back in the diluted per share calculation and the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors would have an anti-dilutive impact on the loss per share and thus are ignored in the diluted per share calculation. | |
SHARE BASED COMPENSATION | ' |
SHARE BASED COMPENSATION — Cost is recognized for stock options and non-vested share awards issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of our common stock at the date of grant is used for non-vested share awards. Cost is recognized over the required service period, generally defined as the vesting period. Cost is also recognized for salary stock issued to employees and stock issued to non- employee directors. These shares vest immediately and cost is recognized during the period they are issued. | |
COMMON STOCK | ' |
COMMON STOCK — At December 31, 2013, 0.1 million shares of common stock were reserved for issuance under the dividend reinvestment plan and 0.5 million shares of common stock were reserved for issuance under our long-term incentive plans. | |
RECLASSIFICATION | ' |
RECLASSIFICATION — Certain amounts in the 2012 and 2011 consolidated financial statements have been reclassified to conform to the 2013 presentation. | |
ADOPTION OF NEW ACCOUNTING STANDARDS | ' |
ADOPTION OF NEW ACCOUNTING STANDARDS — In February, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This ASU amended guidance on the reporting of reclassifications out of accumulated other comprehensive income. The amendments in this guidance require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This amended guidance became effective for us at January 1, 2013 and was applied prospectively. The effect of adopting this standard did not have a material impact on our consolidated operating results or financial condition, but the additional disclosures are included in note #24. | |
In July 2013, the FASB amended existing guidance related to the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. These amendments provide that an unrecognized tax benefit, or a portion thereof, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except to the extent that a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date to settle any additional income taxes that would result from disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, then the unrecognized tax benefit should be presented as a liability. These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 with early adoption and retrospective application permitted. This amendment is not expected to have a material impact on our consolidated operating results or financial condition. | |
In January, 2014, the FASB issued ASU 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure”. The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This amendment is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 with early adoption and retrospective or prospective application permitted. This amendment is not expected to have a material impact on our consolidated operating results or financial condition. |
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
SECURITIES [Abstract] | ' | ||||||||||||||||||||||||
Securities available for sale | ' | ||||||||||||||||||||||||
Securities available for sale consist of the following at December 31: | |||||||||||||||||||||||||
Amortized | Unrealized | ||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
U.S. agency | $ | 32,106 | $ | 44 | $ | 342 | $ | 31,808 | |||||||||||||||||
U.S. agency residential mortgage-backed | 202,649 | 1,343 | 532 | 203,460 | |||||||||||||||||||||
Private label residential mortgage-backed | 7,294 | 112 | 618 | 6,788 | |||||||||||||||||||||
Other asset backed | 45,369 | 10 | 194 | 45,185 | |||||||||||||||||||||
Obligations of states and political subdivisions | 157,966 | 496 | 4,784 | 153,678 | |||||||||||||||||||||
Corporate | 19,120 | 43 | 26 | 19,137 | |||||||||||||||||||||
Trust preferred | 2,902 | - | 477 | 2,425 | |||||||||||||||||||||
Total | $ | 467,406 | $ | 2,048 | $ | 6,973 | $ | 462,481 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
U.S. agency | $ | 30,620 | $ | 70 | $ | 23 | $ | 30,667 | |||||||||||||||||
U.S. agency residential mortgage-backed | 126,151 | 1,264 | 3 | 127,412 | |||||||||||||||||||||
Private label residential mortgage-backed | 9,070 | - | 876 | 8,194 | |||||||||||||||||||||
Obligations of states and political subdivisions | 38,384 | 736 | 69 | 39,051 | |||||||||||||||||||||
Trust preferred | 4,704 | - | 1,615 | 3,089 | |||||||||||||||||||||
Total | $ | 208,929 | $ | 2,070 | $ | 2,586 | $ | 208,413 | |||||||||||||||||
Investments in a continuous unrealized loss position | ' | ||||||||||||||||||||||||
Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position, at December 31 follows: | |||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
U.S. agency | $ | 16,715 | $ | 342 | $ | - | $ | - | $ | 16,715 | $ | 342 | |||||||||||||
U.S. agency residential mortgage-backed | 78,256 | 532 | - | - | 78,256 | 532 | |||||||||||||||||||
Private label residential mortgage-backed | 407 | 6 | 4,602 | 612 | 5,009 | 618 | |||||||||||||||||||
Other asset backed | 33,862 | 194 | - | - | 33,862 | 194 | |||||||||||||||||||
Obligations of states and political subdivisions | 103,942 | 4,645 | 4,805 | 139 | 108,747 | 4,784 | |||||||||||||||||||
Corporate | 7,105 | 26 | - | - | 7,105 | 26 | |||||||||||||||||||
Trust preferred | - | - | 2,425 | 477 | 2,425 | 477 | |||||||||||||||||||
Total | $ | 240,287 | $ | 5,745 | $ | 11,832 | $ | 1,228 | $ | 252,119 | $ | 6,973 | |||||||||||||
2012 | |||||||||||||||||||||||||
U.S. agency | $ | 8,097 | $ | 23 | $ | - | $ | - | $ | 8,097 | $ | 23 | |||||||||||||
U.S. agency residential mortgage-backed | - | - | 457 | 3 | 457 | 3 | |||||||||||||||||||
Private label residential mortgage-backed | - | - | 8,192 | 876 | 8,192 | 876 | |||||||||||||||||||
Obligations of states and political subdivisions | 7,384 | 69 | - | - | 7,384 | 69 | |||||||||||||||||||
Trust preferred | - | - | 3,089 | 1,615 | 3,089 | 1,615 | |||||||||||||||||||
Total | $ | 15,481 | $ | 92 | $ | 11,738 | $ | 2,494 | $ | 27,219 | $ | 2,586 | |||||||||||||
Unrealized losses largely attributable to credit spread | ' | ||||||||||||||||||||||||
The unrealized losses are largely attributable to credit spread widening on these securities since their acquisition. The underlying loans within these securities include Jumbo (69%) and Alt A (31%) at December 31, 2013. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Fair | Net | Fair | Net | ||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Private label residential mortgage-backed | |||||||||||||||||||||||||
Jumbo | $ | 4,687 | $ | (441 | ) | $ | 6,041 | $ | (594 | ) | |||||||||||||||
Alt-A | 2,101 | (65 | ) | 2,153 | (282 | ) | |||||||||||||||||||
Private label residential mortgage backed securities below investment grade | ' | ||||||||||||||||||||||||
At December 31, 2013 three below investment grade private label residential mortgage-backed securities had credit related OTTI and are summarized as follows: | |||||||||||||||||||||||||
Senior | Super | Senior | Total | ||||||||||||||||||||||
Security | Senior | Support | |||||||||||||||||||||||
Security | Security | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Fair value | $ | 2,453 | $ | 1,731 | $ | 47 | $ | 4,231 | |||||||||||||||||
Amortized cost | 2,820 | 1,666 | - | 4,486 | |||||||||||||||||||||
Non-credit unrealized loss | 367 | - | - | 367 | |||||||||||||||||||||
Unrealized gain | - | 65 | 47 | 112 | |||||||||||||||||||||
Cumulative credit related OTTI | 748 | 457 | 380 | 1,585 | |||||||||||||||||||||
Credit related OTTI recognized in our Consolidated | |||||||||||||||||||||||||
Statements of Operations | |||||||||||||||||||||||||
For the years ended December 31, | |||||||||||||||||||||||||
2013 | 26 | - | - | 26 | |||||||||||||||||||||
2012 | 247 | 32 | 60 | 339 | |||||||||||||||||||||
2011 | 213 | 425 | 122 | 760 | |||||||||||||||||||||
Trust preferred securities | ' | ||||||||||||||||||||||||
The following table breaks out our trust preferred securities in further detail as of December 31: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Fair | Net | Fair | Net | ||||||||||||||||||||||
Value | Unrealized | Value | Unrealized | ||||||||||||||||||||||
Gain (Loss) | Gain (Loss) | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Trust preferred securities | |||||||||||||||||||||||||
Rated issues | $ | 1,600 | $ | (302 | ) | $ | 1,581 | $ | (316 | ) | |||||||||||||||
Unrated issues | 825 | (175 | ) | 1,508 | (1,299 | ) | |||||||||||||||||||
Credit losses recognized in earnings on securities available for sale | ' | ||||||||||||||||||||||||
A rollforward of credit losses recognized in earnings on securities available for sale for the years ending December 31 follow: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 1,809 | $ | 1,470 | $ | 710 | |||||||||||||||||||
Additions to credit losses on securities for which no previous OTTI was recognized | - | - | 425 | ||||||||||||||||||||||
Increases to credit losses on securities for which OTTI was previously recognized | 26 | 339 | 335 | ||||||||||||||||||||||
Balance at end of year | $ | 1,835 | $ | 1,809 | $ | 1,470 | |||||||||||||||||||
Amortized cost and fair value of securities available for sale by contractual maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale at December 31, 2013, by contractual maturity, follow. The actual maturity may differ from the contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Maturing within one year | $ | 14,942 | $ | 14,952 | |||||||||||||||||||||
Maturing after one year but within five years | 84,253 | 84,306 | |||||||||||||||||||||||
Maturing after five years but within ten years | 32,864 | 32,478 | |||||||||||||||||||||||
Maturing after ten years | 80,035 | 75,312 | |||||||||||||||||||||||
212,094 | 207,048 | ||||||||||||||||||||||||
U.S. agency residential mortgage-backed | 202,649 | 203,460 | |||||||||||||||||||||||
Private label residential mortgage-backed | 7,294 | 6,788 | |||||||||||||||||||||||
Other asset backed | 45,369 | 45,185 | |||||||||||||||||||||||
Total | $ | 467,406 | $ | 462,481 | |||||||||||||||||||||
Gains and losses realized on sale of securities available for sale | ' | ||||||||||||||||||||||||
A summary of proceeds from the sale of securities available for sale and gains and losses follows: | |||||||||||||||||||||||||
Proceeds | Realized | Losses(1) | |||||||||||||||||||||||
Gains | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | $ | 2,940 | $ | 15 | $ | 8 | |||||||||||||||||||
2012 | 37,176 | 1,193 | - | ||||||||||||||||||||||
2011 | 70,322 | 279 | 75 | ||||||||||||||||||||||
(1) Losses in 2013, 2012 and 2011 exclude $0.03 million, $0.3 million and $0.8 million, respectively of other than temporary impairment. |
LOANS_AND_PAYMENT_PLAN_RECEIVA1
LOANS AND PAYMENT PLAN RECEIVABLES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
LOANS AND PAYMENT PLAN RECEIVABLES [Abstract] | ' | ||||||||||||||||||||||||
Loan portfolios | ' | ||||||||||||||||||||||||
Our loan portfolios at December 31 follow: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Real estate(1) | |||||||||||||||||||||||||
Residential first mortgages | $ | 431,812 | $ | 468,636 | |||||||||||||||||||||
Residential home equity and other junior mortgages | 113,703 | 121,235 | |||||||||||||||||||||||
Construction and land development | 50,290 | 56,183 | |||||||||||||||||||||||
Other(2) | 440,348 | 434,336 | |||||||||||||||||||||||
Commercial | 146,954 | 132,904 | |||||||||||||||||||||||
Consumer | 126,443 | 117,077 | |||||||||||||||||||||||
Payment plan receivables | 60,638 | 84,692 | |||||||||||||||||||||||
Agricultural | 4,382 | 4,076 | |||||||||||||||||||||||
Total loans | $ | 1,374,570 | $ | 1,419,139 | |||||||||||||||||||||
(1) Includes both residential and non-residential commercial loans secured by real estate. | |||||||||||||||||||||||||
(2) Includes loans secured by multi-family residential and non-farm, non-residential property. | |||||||||||||||||||||||||
Analysis of allowance for loan losses by portfolio segment | ' | ||||||||||||||||||||||||
An analysis of the allowance for loan losses by portfolio segment for the years ended December 31 follows: | |||||||||||||||||||||||||
Commercial | Mortgage | Installment | Payment | Unallocated | Total | ||||||||||||||||||||
Plan | |||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | |||||||||||||
Additions (deductions) | |||||||||||||||||||||||||
Provision for loan losses | (2,336 | ) | 71 | 314 | (93 | ) | (1,944 | ) | (3,988 | ) | |||||||||||||||
Recoveries credited to allowance | 5,119 | 1,996 | 1,074 | 81 | - | 8,270 | |||||||||||||||||||
Loans charged against the allowance | (7,358 | ) | (6,319 | ) | (2,520 | ) | (35 | ) | - | (16,232 | ) | ||||||||||||||
Balance at end of period | $ | 6,827 | $ | 17,195 | $ | 2,246 | $ | 97 | $ | 5,960 | $ | 32,325 | |||||||||||||
2012 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 18,183 | $ | 22,885 | $ | 6,146 | $ | 197 | $ | 11,473 | $ | 58,884 | |||||||||||||
Additions (deductions) | |||||||||||||||||||||||||
Provision for loan losses | 2,351 | 7,778 | 15 | (3 | ) | (3,254 | ) | 6,887 | |||||||||||||||||
Recoveries credited to allowance | 3,610 | 1,581 | 1,311 | 20 | - | 6,522 | |||||||||||||||||||
Loans charged against the allowance | (12,588 | ) | (10,741 | ) | (4,009 | ) | (70 | ) | - | (27,408 | ) | ||||||||||||||
Reclassification to loans held for sale | (154 | ) | (56 | ) | (85 | ) | - | (315 | ) | (610 | ) | ||||||||||||||
Balance at end of period | $ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | |||||||||||||
2011 | |||||||||||||||||||||||||
Balance at beginning of period | $ | 23,836 | $ | 22,642 | $ | 6,769 | $ | 389 | $ | 14,279 | $ | 67,915 | |||||||||||||
Additions (deductions) | |||||||||||||||||||||||||
Provision for loan losses | 12,988 | 14,410 | 3,365 | (11 | ) | (2,806 | ) | 27,946 | |||||||||||||||||
Recoveries credited to allowance | 1,850 | 1,441 | 1,451 | 5 | - | 4,747 | |||||||||||||||||||
Loans charged against the allowance | (20,491 | ) | (15,608 | ) | (5,439 | ) | (186 | ) | - | (41,724 | ) | ||||||||||||||
Balance at end of period | $ | 18,183 | $ | 22,885 | $ | 6,146 | $ | 197 | $ | 11,473 | $ | 58,884 | |||||||||||||
Allowance for loan losses and recorded investment in loans by portfolio segment | ' | ||||||||||||||||||||||||
Allowance for loan losses and recorded investment in loans by portfolio segment at December 31 follows: | |||||||||||||||||||||||||
Commercial | Mortgage | Installment | Payment | Unallocated | Total | ||||||||||||||||||||
Plan | |||||||||||||||||||||||||
Receivables | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,878 | $ | 10,488 | $ | 792 | $ | - | $ | - | $ | 15,158 | |||||||||||||
Collectively evaluated for impairment | 2,949 | 6,707 | 1,454 | 97 | 5,960 | 17,167 | |||||||||||||||||||
Total ending allowance balance | $ | 6,827 | $ | 17,195 | $ | 2,246 | $ | 97 | $ | 5,960 | $ | 32,325 | |||||||||||||
Loans | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 40,623 | $ | 78,022 | $ | 7,068 | $ | - | $ | 125,713 | |||||||||||||||
Collectively evaluated for impairment | 596,235 | 410,887 | 185,676 | 60,638 | 1,253,436 | ||||||||||||||||||||
Total loans recorded investment | 636,858 | 488,909 | 192,744 | 60,638 | 1,379,149 | ||||||||||||||||||||
Accrued interest included in recorded investment | 1,624 | 2,276 | 679 | - | 4,579 | ||||||||||||||||||||
Total loans | $ | 635,234 | $ | 486,633 | $ | 192,065 | $ | 60,638 | $ | 1,374,570 | |||||||||||||||
2012 | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,558 | $ | 12,869 | $ | 1,582 | $ | - | $ | - | $ | 21,009 | |||||||||||||
Collectively evaluated for impairment | 4,844 | 8,578 | 1,796 | 144 | 7,904 | 23,266 | |||||||||||||||||||
Total ending allowance balance | $ | 11,402 | $ | 21,447 | $ | 3,378 | $ | 144 | $ | 7,904 | $ | 44,275 | |||||||||||||
Loans | |||||||||||||||||||||||||
Individually evaluated for impairment | $ | 55,634 | $ | 88,028 | $ | 7,505 | $ | - | $ | 151,167 | |||||||||||||||
Collectively evaluated for impairment | 563,316 | 441,703 | 183,090 | 84,692 | 1,272,801 | ||||||||||||||||||||
Total loans recorded investment | 618,950 | 529,731 | 190,595 | 84,692 | 1,423,968 | ||||||||||||||||||||
Accrued interest included in recorded | 1,692 | 2,391 | 746 | - | 4,829 | ||||||||||||||||||||
investment | |||||||||||||||||||||||||
Total loans | $ | 617,258 | $ | 527,340 | $ | 189,849 | $ | 84,692 | $ | 1,419,139 | |||||||||||||||
Non-performing loans | ' | ||||||||||||||||||||||||
Non-performing loans at December 31 follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Non-accrual loans | $ | 17,905 | $ | 32,929 | |||||||||||||||||||||
Loans 90 days or more past due and still accruing interest | - | 7 | |||||||||||||||||||||||
Total non-performing loans | $ | 17,905 | $ | 32,936 | |||||||||||||||||||||
Loans on non-accrual status and past due more than 90 days | ' | ||||||||||||||||||||||||
Non performing loans by class as of December 31 follows: | |||||||||||||||||||||||||
90+ and | Non- | Total Non- | |||||||||||||||||||||||
Still | Accrual | Performing | |||||||||||||||||||||||
Accruing | Loans | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | 1,899 | $ | 1,899 | |||||||||||||||||||
Land, land development and construction - real estate | - | 1,036 | 1,036 | ||||||||||||||||||||||
Commercial and industrial | - | 2,434 | 2,434 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | - | 6,594 | 6,594 | ||||||||||||||||||||||
Resort lending | - | 2,668 | 2,668 | ||||||||||||||||||||||
Home equity - 1st lien | - | 415 | 415 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 689 | 689 | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | - | 938 | 938 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 571 | 571 | ||||||||||||||||||||||
Loans not secured by real estate | - | 638 | 638 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | - | 20 | 20 | ||||||||||||||||||||||
Partial refund | - | 3 | 3 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total recorded investment | $ | - | $ | 17,905 | $ | 17,905 | |||||||||||||||||||
Accrued interest included in recorded investment | $ | - | $ | - | $ | - | |||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | - | $ | 5,611 | $ | 5,611 | |||||||||||||||||||
Land, land development and construction - real estate | - | 4,062 | 4,062 | ||||||||||||||||||||||
Commercial and industrial | - | 5,080 | 5,080 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 7 | 9,654 | 9,661 | ||||||||||||||||||||||
Resort lending | - | 4,861 | 4,861 | ||||||||||||||||||||||
Home equity - 1st lien | - | 529 | 529 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 685 | 685 | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | - | 1,278 | 1,278 | ||||||||||||||||||||||
Home equity - 2nd lien | - | 675 | 675 | ||||||||||||||||||||||
Loans not secured by real estate | - | 390 | 390 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | - | 57 | 57 | ||||||||||||||||||||||
Partial refund | - | 38 | 38 | ||||||||||||||||||||||
Other | - | 9 | 9 | ||||||||||||||||||||||
Total recorded investment | $ | 7 | $ | 32,929 | $ | 32,936 | |||||||||||||||||||
Accrued interest included in recorded investment | $ | - | $ | - | $ | - | |||||||||||||||||||
Aging analysis of loans by class | ' | ||||||||||||||||||||||||
An aging analysis of loans by class at December 31 follows: | |||||||||||||||||||||||||
Loans Past Due | |||||||||||||||||||||||||
30-59 days | 60-89 days | 90+ days | Total | Loans not | Total | ||||||||||||||||||||
Past Due | Loans | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 1,014 | $ | 428 | $ | 878 | $ | 2,320 | $ | 249,313 | $ | 251,633 | |||||||||||||
Land, land development and construction - real estate | 781 | 129 | 256 | 1,166 | 30,670 | 31,836 | |||||||||||||||||||
Commercial and industrial | 1,155 | 1,665 | 318 | 3,138 | 350,251 | 353,389 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 3,750 | 224 | 6,594 | 10,568 | 270,855 | 281,423 | |||||||||||||||||||
Resort lending | 698 | 234 | 2,668 | 3,600 | 142,356 | 145,956 | |||||||||||||||||||
Home equity - 1st lien | 172 | - | 415 | 587 | 18,214 | 18,801 | |||||||||||||||||||
Home equity - 2nd lien | 663 | 73 | 689 | 1,425 | 41,304 | 42,729 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 557 | 134 | 938 | 1,629 | 25,513 | 27,142 | |||||||||||||||||||
Home equity - 2nd lien | 536 | 136 | 571 | 1,243 | 36,701 | 37,944 | |||||||||||||||||||
Loans not secured by real | 833 | 281 | 638 | 1,752 | 123,295 | 125,047 | |||||||||||||||||||
estate | |||||||||||||||||||||||||
Other | 22 | 12 | - | 34 | 2,577 | 2,611 | |||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | 1,364 | 349 | 20 | 1,733 | 46,344 | 48,077 | |||||||||||||||||||
Partial refund | 190 | 20 | 3 | 213 | 4,840 | 5,053 | |||||||||||||||||||
Other | 122 | 4 | - | 126 | 7,382 | 7,508 | |||||||||||||||||||
Total recorded investment | $ | 11,857 | $ | 3,689 | $ | 13,988 | $ | 29,534 | $ | 1,349,615 | $ | 1,379,149 | |||||||||||||
Accrued interest included in recorded investment | $ | 100 | $ | 26 | $ | - | $ | 126 | $ | 4,453 | $ | 4,579 | |||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 3,734 | $ | 609 | $ | 2,826 | $ | 7,169 | $ | 215,623 | $ | 222,792 | |||||||||||||
Land, land development and construction - real estate | 336 | - | 1,176 | 1,512 | 41,750 | 43,262 | |||||||||||||||||||
Commercial and industrial | 2,522 | 654 | 1,913 | 5,089 | 347,807 | 352,896 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 4,429 | 1,115 | 9,661 | 15,205 | 279,132 | 294,337 | |||||||||||||||||||
Resort lending | 748 | 370 | 4,861 | 5,979 | 164,414 | 170,393 | |||||||||||||||||||
Home equity - 1st lien | 453 | 51 | 529 | 1,033 | 18,003 | 19,036 | |||||||||||||||||||
Home equity - 2nd lien | 442 | 32 | 685 | 1,159 | 44,806 | 45,965 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 599 | 140 | 1,278 | 2,017 | 30,368 | 32,385 | |||||||||||||||||||
Home equity - 2nd lien | 430 | 125 | 675 | 1,230 | 38,956 | 40,186 | |||||||||||||||||||
Loans not secured by real | 899 | 259 | 390 | 1,548 | 113,751 | 115,299 | |||||||||||||||||||
estate | |||||||||||||||||||||||||
Other | 24 | 12 | - | 36 | 2,689 | 2,725 | |||||||||||||||||||
Payment plan receivables | |||||||||||||||||||||||||
Full refund | 2,249 | 552 | 57 | 2,858 | 77,335 | 80,193 | |||||||||||||||||||
Partial refund | 112 | 46 | 38 | 196 | 4,119 | 4,315 | |||||||||||||||||||
Other | 3 | 6 | 9 | 18 | 166 | 184 | |||||||||||||||||||
Total recorded investment | $ | 16,980 | $ | 3,971 | $ | 24,098 | $ | 45,049 | $ | 1,378,919 | $ | 1,423,968 | |||||||||||||
Accrued interest included in recorded investment | $ | 146 | $ | 43 | $ | - | $ | 189 | $ | 4,640 | $ | 4,829 | |||||||||||||
Impaired loans | ' | ||||||||||||||||||||||||
Impaired loans are as follows : | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Impaired loans with no allocated allowance | |||||||||||||||||||||||||
TDR | $ | 13,006 | $ | 14,435 | |||||||||||||||||||||
Non - TDR | 334 | 418 | |||||||||||||||||||||||
Impaired loans with an allocated allowance | |||||||||||||||||||||||||
TDR - allowance based on collateral | 10,085 | 16,231 | |||||||||||||||||||||||
TDR - allowance based on present value cash flow | 101,131 | 112,997 | |||||||||||||||||||||||
Non - TDR - allowance based on collateral | 688 | 6,580 | |||||||||||||||||||||||
Non - TDR - allowance based on present value cash flow | - | - | |||||||||||||||||||||||
Total impaired loans | $ | 125,244 | $ | 150,661 | |||||||||||||||||||||
Amount of allowance for loan losses allocated | |||||||||||||||||||||||||
TDR - allowance based on collateral | $ | 3,127 | $ | 5,060 | |||||||||||||||||||||
TDR - allowance based on present value cash flow | 11,777 | 14,462 | |||||||||||||||||||||||
Non - TDR - allowance based on collateral | 254 | 1,487 | |||||||||||||||||||||||
Non - TDR - allowance based on present value cash flow | - | ||||||||||||||||||||||||
Total amount of allowance for loan losses allocated | $ | 15,158 | $ | 21,009 | |||||||||||||||||||||
Impaired loans by class as of December 31 are as follows (1): | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | ||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
With no related allowance recorded: | (In thousands) | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 7,042 | $ | 7,178 | $ | - | $ | 4,050 | $ | 4,672 | $ | - | |||||||||||||
Land, land development & construction-real estate | 2,185 | 3,217 | - | 3,304 | 3,294 | - | |||||||||||||||||||
Commercial and industrial | 4,110 | 4,087 | - | 2,611 | 2,592 | - | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 8 | 8 | - | - | - | - | |||||||||||||||||||
Resort lending | 35 | 163 | - | - | - | - | |||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | |||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | - | - | - | 2,027 | 2,219 | - | |||||||||||||||||||
Home equity - 2nd lien | - | - | - | 2,278 | 2,278 | - | |||||||||||||||||||
Loans not secured by real estate | - | - | - | 610 | 681 | - | |||||||||||||||||||
Other | - | - | - | 20 | 20 | - | |||||||||||||||||||
13,380 | 14,653 | - | 14,900 | 15,756 | - | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 14,538 | 15,631 | 1,161 | 20,628 | 24,250 | 1,822 | |||||||||||||||||||
Land, land development & construction-real estate | 3,366 | 4,130 | 686 | 8,808 | 11,971 | 1,986 | |||||||||||||||||||
Commercial and industrial | 9,382 | 9,529 | 2,031 | 16,233 | 18,564 | 2,750 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 57,612 | 60,768 | 7,236 | 64,160 | 68,418 | 8,518 | |||||||||||||||||||
Resort lending | 20,171 | 20,608 | 3,221 | 23,763 | 24,160 | 4,321 | |||||||||||||||||||
Home equity - 1st lien | 154 | 164 | 11 | 62 | 77 | 30 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 118 | 20 | 43 | 118 | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2,959 | 3,115 | 254 | 1,215 | 1,240 | 610 | |||||||||||||||||||
Home equity - 2nd lien | 3,352 | 3,347 | 462 | 1,161 | 1,174 | 930 | |||||||||||||||||||
Loans not secured by real estate | 741 | 902 | 75 | 194 | 194 | 42 | |||||||||||||||||||
Other | 16 | 16 | 1 | - | - | - | |||||||||||||||||||
112,333 | 118,328 | 15,158 | 136,267 | 150,166 | 21,009 | ||||||||||||||||||||
Total | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 21,580 | 22,809 | 1,161 | 24,678 | 28,922 | 1,822 | |||||||||||||||||||
Land, land development & construction-real estate | 5,551 | 7,347 | 686 | 12,112 | 15,265 | 1,986 | |||||||||||||||||||
Commercial and industrial | 13,492 | 13,616 | 2,031 | 18,844 | 21,156 | 2,750 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 57,620 | 60,776 | 7,236 | 64,160 | 68,418 | 8,518 | |||||||||||||||||||
Resort lending | 20,206 | 20,771 | 3,221 | 23,763 | 24,160 | 4,321 | |||||||||||||||||||
Home equity - 1st lien | 154 | 164 | 11 | 62 | 77 | 30 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 118 | 20 | 43 | 118 | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2,959 | 3,115 | 254 | 3,242 | 3,459 | 610 | |||||||||||||||||||
Home equity - 2nd lien | 3,352 | 3,347 | 462 | 3,439 | 3,452 | 930 | |||||||||||||||||||
Loans not secured by real estate | 741 | 902 | 75 | 804 | 875 | 42 | |||||||||||||||||||
Other | 16 | 16 | 1 | 20 | 20 | - | |||||||||||||||||||
Total | $ | 125,713 | $ | 132,981 | $ | 15,158 | $ | 151,167 | $ | 165,922 | $ | 21,009 | |||||||||||||
Accrued interest included in recorded investment | $ | 469 | $ | 506 | |||||||||||||||||||||
(1) There were no impaired payment plan receivables at December 31, 2013 or 2012. | |||||||||||||||||||||||||
Sales of certain commercial watch, substandard and non-performing loans | ' | ||||||||||||||||||||||||
During the second quarter of 2013 we sold certain commercial watch, substandard and non-performing loans as follows: | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Income producing - real estate | $ | 4,570 | |||||||||||||||||||||||
Land, land development and construction - real estate | 401 | ||||||||||||||||||||||||
Commercial and industrial | 3,630 | ||||||||||||||||||||||||
Total | $ | 8,601 | |||||||||||||||||||||||
Average recorded investment in and interest income earned on impaired loans by class | ' | ||||||||||||||||||||||||
Average recorded investment in and interest income earned on impaired loans by class for the years ended December 31 follows (1): | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||
With no related allowance recorded: | (In thousands) | ||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | $ | 5,765 | $ | 340 | $ | 2,981 | $ | 166 | $ | 3,170 | $ | 170 | |||||||||||||
Land, land development & construction-real estate | 3,092 | 240 | 2,549 | 150 | 613 | 35 | |||||||||||||||||||
Commercial and industrial | 3,980 | 226 | 3,526 | 246 | 2,874 | 70 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 5 | 11 | 290 | - | 35 | - | |||||||||||||||||||
Resort lending | 28 | - | 222 | - | 166 | - | |||||||||||||||||||
Home equity - 1st lien | - | - | - | - | - | - | |||||||||||||||||||
Home equity - 2nd lien | - | - | - | - | - | - | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 1,604 | 83 | 1,961 | 97 | 1,955 | 96 | |||||||||||||||||||
Home equity - 2nd lien | 1,841 | 96 | 2,093 | 111 | 2,014 | 93 | |||||||||||||||||||
Loans not secured by real estate | 470 | 23 | 549 | 30 | 598 | 31 | |||||||||||||||||||
Other | 15 | 1 | 22 | 2 | 15 | 2 | |||||||||||||||||||
16,800 | 1,020 | 14,193 | 802 | 11,440 | 497 | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 18,164 | 587 | 23,508 | 571 | 18,812 | 117 | |||||||||||||||||||
Land, land development & construction-real estate | 6,186 | 149 | 10,305 | 183 | 9,828 | 114 | |||||||||||||||||||
Commercial and industrial | 11,795 | 457 | 17,828 | 467 | 11,501 | 352 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 60,858 | 2,622 | 66,195 | 2,852 | 71,342 | 2,991 | |||||||||||||||||||
Resort lending | 21,708 | 836 | 24,286 | 1,000 | 29,335 | 1,064 | |||||||||||||||||||
Home equity - 1st lien | 136 | 4 | 65 | 2 | 32 | 2 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 2 | 81 | 3 | 127 | 4 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 1,448 | 85 | 1,432 | 50 | 1,408 | 60 | |||||||||||||||||||
Home equity - 2nd lien | 1,546 | 86 | 1,325 | 51 | 1,466 | 66 | |||||||||||||||||||
Loans not secured by real estate | 314 | 17 | 221 | 10 | 168 | 6 | |||||||||||||||||||
Other | 3 | 1 | - | - | - | - | |||||||||||||||||||
122,200 | 4,846 | 145,246 | 5,189 | 144,019 | 4,776 | ||||||||||||||||||||
Total | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 23,929 | 927 | 26,489 | 737 | 21,982 | 287 | |||||||||||||||||||
Land, land development & construction-real estate | 9,278 | 389 | 12,854 | 333 | 10,441 | 149 | |||||||||||||||||||
Commercial and industrial | 15,775 | 683 | 21,354 | 713 | 14,375 | 422 | |||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 60,863 | 2,633 | 66,485 | 2,852 | 71,377 | 2,991 | |||||||||||||||||||
Resort lending | 21,736 | 836 | 24,508 | 1,000 | 29,501 | 1,064 | |||||||||||||||||||
Home equity - 1st lien | 136 | 4 | 65 | 2 | 32 | 2 | |||||||||||||||||||
Home equity - 2nd lien | 42 | 2 | 81 | 3 | 127 | 4 | |||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 3,052 | 168 | 3,393 | 147 | 3,363 | 156 | |||||||||||||||||||
Home equity - 2nd lien | 3,387 | 182 | 3,418 | 162 | 3,480 | 159 | |||||||||||||||||||
Loans not secured by real estate | 784 | 40 | 770 | 40 | 766 | 37 | |||||||||||||||||||
Other | 18 | 2 | 22 | 2 | 15 | 2 | |||||||||||||||||||
Total | $ | 139,000 | $ | 5,866 | $ | 159,439 | $ | 5,991 | $ | 155,459 | $ | 5,273 | |||||||||||||
-1 | There were no impaired payment plan receivables during the years ending December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
Troubled debt restructurings | ' | ||||||||||||||||||||||||
Troubled debt restructurings at December 31 follow: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | Retail | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Performing TDR’s | $ | 35,134 | $ | 79,753 | $ | 114,887 | |||||||||||||||||||
Non-performing TDR’s(1) | 4,347 | 4,988 | (2) | 9,335 | |||||||||||||||||||||
Total | $ | 39,481 | $ | 84,741 | $ | 124,222 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | Retail | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Performing TDR’s | $ | 40,753 | $ | 85,977 | $ | 126,730 | |||||||||||||||||||
Non-performing TDR’s(1) | 7,756 | 9,177 | (2) | 16,933 | |||||||||||||||||||||
Total | $ | 48,509 | $ | 95,154 | $ | 143,663 | |||||||||||||||||||
-1 | Included in non-performing loans table. | ||||||||||||||||||||||||
-2 | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. | ||||||||||||||||||||||||
Troubled debt restructuring during the period | ' | ||||||||||||||||||||||||
Loans that have been classified as troubled debt restructurings during the years ended December 31 follows: | |||||||||||||||||||||||||
Number of | Pre-modification | Post-modification | |||||||||||||||||||||||
Contracts | Recorded | Recorded | |||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 6 | $ | 4,798 | $ | 3,869 | ||||||||||||||||||||
Land, land development & construction-real estate | 1 | 16 | - | ||||||||||||||||||||||
Commercial and industrial | 23 | 2,522 | 1,901 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 20 | 1,968 | 1,995 | ||||||||||||||||||||||
Resort lending | 5 | 1,240 | 1,231 | ||||||||||||||||||||||
Home equity - 1st lien | 1 | 95 | 97 | ||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 25 | 659 | 657 | ||||||||||||||||||||||
Home equity - 2nd lien | 16 | 508 | 508 | ||||||||||||||||||||||
Loans not secured by real estate | 5 | 149 | 110 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total | 102 | $ | 11,955 | $ | 10,368 | ||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 20 | $ | 9,464 | $ | 8,568 | ||||||||||||||||||||
Land, land development & construction-real estate | 9 | 4,800 | 4,858 | ||||||||||||||||||||||
Commercial and industrial | 50 | 9,951 | 7,905 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 66 | 8,900 | 8,488 | ||||||||||||||||||||||
Resort lending | 31 | 7,750 | 7,514 | ||||||||||||||||||||||
Home equity - 1st lien | 1 | 15 | - | ||||||||||||||||||||||
Home equity - 2nd lien | - | - | - | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 18 | 666 | 632 | ||||||||||||||||||||||
Home equity - 2nd lien | 24 | 784 | 768 | ||||||||||||||||||||||
Loans not secured by real estate | 13 | 325 | 304 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total | 232 | $ | 42,655 | $ | 39,037 | ||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 42 | $ | 21,061 | $ | 17,679 | ||||||||||||||||||||
Land, land development & construction-real estate | 20 | 10,801 | 7,464 | ||||||||||||||||||||||
Commercial and industrial | 64 | 11,133 | 10,649 | ||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 73 | 9,933 | 9,423 | ||||||||||||||||||||||
Resort lending | 33 | 8,893 | 8,749 | ||||||||||||||||||||||
Home equity - 1st lien | 2 | 69 | 64 | ||||||||||||||||||||||
Home equity - 2nd lien | 1 | 23 | 18 | ||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 21 | 678 | 618 | ||||||||||||||||||||||
Home equity - 2nd lien | 16 | 535 | 514 | ||||||||||||||||||||||
Loans not secured by real estate | 26 | 455 | 442 | ||||||||||||||||||||||
Other | - | - | - | ||||||||||||||||||||||
Total | 298 | $ | 63,581 | $ | 55,620 | ||||||||||||||||||||
Troubled debt restructuring during the past twelve months that subsequently defaulted | ' | ||||||||||||||||||||||||
Loans that have been classified as troubled debt restructured during the past twelve months and that have subsequently defaulted during the years ended December 31 follows: | |||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||
Contracts | Balance | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 1 | $ | 693 | ||||||||||||||||||||||
Land, land development & construction-real estate | 1 | 334 | |||||||||||||||||||||||
Commercial and industrial | 2 | 143 | |||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 1 | 106 | |||||||||||||||||||||||
Resort lending | 1 | 156 | |||||||||||||||||||||||
Home equity - 1st lien | - | - | |||||||||||||||||||||||
Home equity - 2nd lien | - | - | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2 | 32 | |||||||||||||||||||||||
Home equity - 2nd lien | 1 | 22 | |||||||||||||||||||||||
Loans not secured by real estate | - | - | |||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||
Total | 9 | $ | 1,486 | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 2 | $ | 827 | ||||||||||||||||||||||
Land, land development & construction-real estate | - | - | |||||||||||||||||||||||
Commercial and industrial | 5 | 230 | |||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 2 | 148 | |||||||||||||||||||||||
Resort lending | 4 | 887 | |||||||||||||||||||||||
Home equity - 1st lien | - | - | |||||||||||||||||||||||
Home equity - 2nd lien | - | - | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 2 | 234 | |||||||||||||||||||||||
Home equity - 2nd lien | 1 | 20 | |||||||||||||||||||||||
Loans not secured by real estate | - | - | |||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||
Total | 16 | $ | 2,346 | ||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Income producing - real estate | 7 | $ | 3,604 | ||||||||||||||||||||||
Land, land development & construction-real estate | 4 | 3,036 | |||||||||||||||||||||||
Commercial and industrial | 2 | 492 | |||||||||||||||||||||||
Mortgage | |||||||||||||||||||||||||
1-4 family | 10 | 1,191 | |||||||||||||||||||||||
Resort lending | 6 | 1,311 | |||||||||||||||||||||||
Home equity - 1st lien | - | - | |||||||||||||||||||||||
Home equity - 2nd lien | - | - | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||||
Home equity - 1st lien | 1 | 19 | |||||||||||||||||||||||
Home equity - 2nd lien | 5 | 301 | |||||||||||||||||||||||
Loans not secured by real estate | - | - | |||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||
Total | 35 | $ | 9,954 | ||||||||||||||||||||||
Summary of loan ratings by loan class | ' | ||||||||||||||||||||||||
The following table summarizes loan ratings by loan class for our commercial loan segment at December 31: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Non-watch | Watch | Substandard | Non | Total | |||||||||||||||||||||
6-Jan | 8-Jul | Accrual | Accrual | ||||||||||||||||||||||
9 | 11-Oct | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Income producing - real estate | $ | 227,957 | $ | 17,882 | $ | 3,895 | $ | 1,899 | $ | 251,633 | |||||||||||||||
Land, land development and construction - real estate | 25,654 | 4,829 | 317 | 1,036 | 31,836 | ||||||||||||||||||||
Commercial and industrial | 318,183 | 26,303 | 6,469 | 2,434 | 353,389 | ||||||||||||||||||||
Total | $ | 571,794 | $ | 49,014 | $ | 10,681 | $ | 5,369 | $ | 636,858 | |||||||||||||||
Accrued interest included in total | $ | 1,433 | $ | 147 | $ | 44 | $ | - | $ | 1,624 | |||||||||||||||
2012 | |||||||||||||||||||||||||
Income producing - real estate | $ | 183,530 | $ | 27,096 | $ | 6,555 | $ | 5,611 | $ | 222,792 | |||||||||||||||
Land, land development and construction - real estate | 32,784 | 3,457 | 2,959 | 4,062 | 43,262 | ||||||||||||||||||||
Commercial and industrial | 307,566 | 26,954 | 13,296 | 5,080 | 352,896 | ||||||||||||||||||||
Total | $ | 523,880 | $ | 57,507 | $ | 22,810 | $ | 14,753 | $ | 618,950 | |||||||||||||||
Accrued interest included in total | $ | 1,417 | $ | 163 | $ | 112 | $ | - | $ | 1,692 | |||||||||||||||
For each of our mortgage and installment segment classes we generally monitor credit quality based on the credit scores of the borrowers. These credit scores are generally updated at least annually. The following tables summarize credit scores by loan class for our mortgage and installment loan segments at December 31: | |||||||||||||||||||||||||
Mortgage (1) | |||||||||||||||||||||||||
1-4 Family | Resort | Home | Home | Total | |||||||||||||||||||||
Lending | Equity | Equity | |||||||||||||||||||||||
1st Lien | 2nd Lien | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
800 and above | $ | 23,924 | $ | 13,487 | $ | 3,650 | $ | 5,354 | $ | 46,415 | |||||||||||||||
750-799 | 60,728 | 56,880 | 4,560 | 11,809 | 133,977 | ||||||||||||||||||||
700-749 | 58,269 | 35,767 | 3,289 | 8,628 | 105,953 | ||||||||||||||||||||
650-699 | 49,771 | 21,696 | 2,316 | 7,145 | 80,928 | ||||||||||||||||||||
600-649 | 34,991 | 8,555 | 2,621 | 5,141 | 51,308 | ||||||||||||||||||||
550-599 | 24,616 | 3,261 | 1,165 | 2,485 | 31,527 | ||||||||||||||||||||
500-549 | 14,823 | 2,271 | 644 | 1,560 | 19,298 | ||||||||||||||||||||
Under 500 | 9,492 | 1,160 | 323 | 360 | 11,335 | ||||||||||||||||||||
Unknown | 4,809 | 2,879 | 233 | 247 | 8,168 | ||||||||||||||||||||
Total | $ | 281,423 | $ | 145,956 | $ | 18,801 | $ | 42,729 | $ | 488,909 | |||||||||||||||
Accrued interest included in total | $ | 1,300 | $ | 650 | $ | 97 | $ | 229 | $ | 2,276 | |||||||||||||||
2012 | |||||||||||||||||||||||||
800 and above | $ | 19,638 | $ | 15,430 | $ | 3,031 | $ | 5,515 | $ | 43,614 | |||||||||||||||
750-799 | 62,419 | 67,094 | 4,758 | 12,783 | 147,054 | ||||||||||||||||||||
700-749 | 59,594 | 41,860 | 3,293 | 9,177 | 113,924 | ||||||||||||||||||||
650-699 | 57,584 | 17,685 | 2,309 | 7,987 | 85,565 | ||||||||||||||||||||
600-649 | 31,465 | 12,317 | 3,311 | 4,775 | 51,868 | ||||||||||||||||||||
550-599 | 27,739 | 7,887 | 964 | 2,754 | 39,344 | ||||||||||||||||||||
500-549 | 20,243 | 1,212 | 656 | 1,997 | 24,108 | ||||||||||||||||||||
Under 500 | 9,470 | 1,637 | 456 | 789 | 12,352 | ||||||||||||||||||||
Unknown | 6,185 | 5,271 | 258 | 188 | 11,902 | ||||||||||||||||||||
Total | $ | 294,337 | $ | 170,393 | $ | 19,036 | $ | 45,965 | $ | 529,731 | |||||||||||||||
Accrued interest included in total | $ | 1,319 | $ | 750 | $ | 91 | $ | 231 | $ | 2,391 | |||||||||||||||
(1) Credit scores have been updated within the last twelve months. | |||||||||||||||||||||||||
Installment(1) | |||||||||||||||||||||||||
Home | Home | Loans not | Other | Total | |||||||||||||||||||||
Equity | Equity | Secured by | |||||||||||||||||||||||
1st Lien | 2nd Lien | Real Estate | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
800 and above | $ | 2,977 | $ | 3,062 | $ | 23,649 | $ | 53 | $ | 29,741 | |||||||||||||||
750-799 | 6,585 | 11,197 | 48,585 | 557 | 66,924 | ||||||||||||||||||||
700-749 | 4,353 | 9,487 | 25,343 | 683 | 39,866 | ||||||||||||||||||||
650-699 | 4,815 | 6,832 | 15,256 | 646 | 27,549 | ||||||||||||||||||||
600-649 | 3,173 | 2,824 | 5,289 | 258 | 11,544 | ||||||||||||||||||||
550-599 | 2,843 | 2,084 | 2,785 | 213 | 7,925 | ||||||||||||||||||||
500-549 | 1,483 | 1,715 | 1,732 | 130 | 5,060 | ||||||||||||||||||||
Under 500 | 751 | 663 | 516 | 29 | 1,959 | ||||||||||||||||||||
Unknown | 162 | 80 | 1,892 | 42 | 2,176 | ||||||||||||||||||||
Total | $ | 27,142 | $ | 37,944 | $ | 125,047 | $ | 2,611 | $ | 192,744 | |||||||||||||||
Accrued interest included in total | $ | 114 | $ | 144 | $ | 399 | $ | 22 | $ | 679 | |||||||||||||||
2012 | |||||||||||||||||||||||||
800 and above | $ | 3,909 | $ | 3,265 | $ | 19,293 | $ | 38 | $ | 26,505 | |||||||||||||||
750-799 | 7,394 | 11,300 | 43,740 | 462 | 62,896 | ||||||||||||||||||||
700-749 | 4,884 | 8,826 | 24,267 | 786 | 38,763 | ||||||||||||||||||||
650-699 | 5,925 | 7,164 | 13,758 | 710 | 27,557 | ||||||||||||||||||||
600-649 | 4,360 | 4,214 | 6,442 | 367 | 15,383 | ||||||||||||||||||||
550-599 | 3,226 | 2,716 | 3,428 | 188 | 9,558 | ||||||||||||||||||||
500-549 | 1,722 | 1,403 | 2,154 | 114 | 5,393 | ||||||||||||||||||||
Under 500 | 760 | 1,195 | 895 | 42 | 2,892 | ||||||||||||||||||||
Unknown | 205 | 103 | 1,322 | 18 | 1,648 | ||||||||||||||||||||
Total | $ | 32,385 | $ | 40,186 | $ | 115,299 | $ | 2,725 | $ | 190,595 | |||||||||||||||
Accrued interest included in total | $ | 137 | $ | 157 | $ | 429 | $ | 23 | $ | 746 | |||||||||||||||
(1) Credit scores have been updated within the last twelve months. | |||||||||||||||||||||||||
Mepco is a wholly-owned subsidiary of our Bank that operates a vehicle service contract payment plan business throughout the United States. See note #11 for more information about Mepco’s business. As of December 31, 2013, approximately 79.3% of Mepco’s outstanding payment plan receivables relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the full refund owing upon cancellation of the related service contract (including with respect to both the portion funded to the service contract seller and the portion funded to the administrator). These receivables are shown as “Full Refund” in the table below. Another approximately 8.3% of Mepco’s outstanding payment plan receivables as of December 31, 2013, relate to programs in which a third party insurer or risk retention group is obligated to pay Mepco the refund owing upon cancellation only with respect to the unearned portion previously funded by Mepco to the administrator (but not to the service contract seller). These receivables are shown as “Partial Refund” in the table below. The balance of Mepco’s outstanding payment plan receivables relate to programs in which there is no insurer or risk retention group that has any contractual liability to Mepco for any portion of the refund amount. These receivables are shown as “Other” in the table below. For each class of our payment plan receivables we monitor credit ratings of the counterparties as we evaluate the credit quality of this portfolio. | |||||||||||||||||||||||||
Although Mepco has contractual recourse against various counterparties for refunds owing upon cancellation of vehicle service contracts, please see note #11 regarding certain risks and difficulties associated with collecting these refunds. | |||||||||||||||||||||||||
The following table summarizes credit ratings by class of payment plan receivable at December 31: | |||||||||||||||||||||||||
Payment Plan Receivables | |||||||||||||||||||||||||
Full | Partial | Other | Total | ||||||||||||||||||||||
Refund | Refund | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
AM Best rating | |||||||||||||||||||||||||
A+ | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
A | 20,203 | 4,221 | - | 24,424 | |||||||||||||||||||||
A- | 4,058 | 832 | 7,496 | 12,386 | |||||||||||||||||||||
B+ | - | - | - | - | |||||||||||||||||||||
B | - | - | - | - | |||||||||||||||||||||
Not rated | 23,816 | - | 12 | 23,828 | |||||||||||||||||||||
Total | $ | 48,077 | $ | 5,053 | $ | 7,508 | $ | 60,638 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
AM Best rating | |||||||||||||||||||||||||
A+ | $ | - | $ | - | $ | 110 | $ | 110 | |||||||||||||||||
A | 24,825 | 3,916 | - | 28,741 | |||||||||||||||||||||
A- | 19,310 | 399 | - | 19,709 | |||||||||||||||||||||
B+ | 56 | - | - | 56 | |||||||||||||||||||||
B | - | - | - | - | |||||||||||||||||||||
Not rated | 36,002 | - | 74 | 36,076 | |||||||||||||||||||||
Total | $ | 80,193 | $ | 4,315 | $ | 184 | $ | 84,692 | |||||||||||||||||
Other mortgage loans service's principal balances | ' | ||||||||||||||||||||||||
Mortgage loans serviced for others are not reported as assets. The principal balances of these loans at year end are as follows: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Mortgage loans serviced for : | |||||||||||||||||||||||||
Fannie Mae | $ | 981,031 | $ | 948,588 | |||||||||||||||||||||
Freddie Mac | 753,143 | 805,447 | |||||||||||||||||||||||
Other | 111 | 123 | |||||||||||||||||||||||
Total | $ | 1,734,285 | $ | 1,754,158 | |||||||||||||||||||||
Schedule of capitalized mortgage loan servicing rights | ' | ||||||||||||||||||||||||
An analysis of capitalized mortgage loan servicing rights for the years ended December 31 follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 11,013 | $ | 11,229 | $ | 14,661 | |||||||||||||||||||
Originated servicing rights capitalized | 3,210 | 4,006 | 2,967 | ||||||||||||||||||||||
Amortization | (3,745 | ) | (4,679 | ) | (3,065 | ) | |||||||||||||||||||
Change in valuation allowance | 3,232 | 457 | (3,334 | ) | |||||||||||||||||||||
Balance at end of year | $ | 13,710 | $ | 11,013 | $ | 11,229 | |||||||||||||||||||
Valuation allowance | $ | 2,855 | $ | 6,087 | $ | 6,544 | |||||||||||||||||||
Loans sold and serviced that have had servicing rights capitalized | $ | 1,732,476 | $ | 1,751,960 | $ | 1,774,952 |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER REAL ESTATE OWNED [Abstract] | ' | ||||||||||||
Valuation allowance for other real estate owned | ' | ||||||||||||
We periodically review our real estate owned properties and establish valuation allowances on these properties if values have declined since the date of acquisition. An analysis of our valuation allowance for other real estate owned follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 5,958 | $ | 14,655 | $ | 10,876 | |||||||
Additions charged to expense | 2,598 | 3,769 | 6,563 | ||||||||||
Direct write-downs upon sale | (4,509 | ) | (12,466 | ) | (2,784 | ) | |||||||
Balance at end of year | $ | 4,047 | $ | 5,958 | $ | 14,655 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY AND EQUIPMENT [Abstract] | ' | ||||||||
Summary of property and equipment | ' | ||||||||
A summary of property and equipment at December 31 follows: | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Land | $ | 14,817 | $ | 14,614 | |||||
Buildings | 58,798 | 56,835 | |||||||
Equipment | 77,452 | 72,378 | |||||||
151,067 | 143,827 | ||||||||
Accumulated depreciation and amortization | (102,473 | ) | (96,811 | ) | |||||
Property and equipment, net | $ | 48,594 | $ | 47,016 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
INTANGIBLE ASSETS [Abstract] | ' | ||||||||||||||||
Other intangible assets, net of amortization | ' | ||||||||||||||||
Intangible assets, net of amortization, at December 31 follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
Carrying | Amortization | Carrying | Amortization | ||||||||||||||
Amount | Amount | ||||||||||||||||
(In thousands) | |||||||||||||||||
Amortized intangible assets - core deposits | $ | 23,703 | $ | 20,540 | $ | 23,703 | $ | 19,728 | |||||||||
Estimated amortization of other intangible assets | ' | ||||||||||||||||
A summary of estimated core deposit intangible amortization at December 31, 2013, follows: | |||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 536 | |||||||||||||||
2015 | 347 | ||||||||||||||||
2016 | 347 | ||||||||||||||||
2017 | 346 | ||||||||||||||||
2018 | 346 | ||||||||||||||||
2019 and thereafter | 1,241 | ||||||||||||||||
Total | $ | 3,163 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
DEPOSITS [Abstract] | ' | ||||||||||||
Summary of interest expense on deposits | ' | ||||||||||||
A summary of interest expense on deposits for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Savings and interest bearing checking | $ | 1,131 | $ | 1,830 | $ | 2,263 | |||||||
Time deposits under $100,000 | 2,995 | 4,838 | 10,349 | ||||||||||
Time deposits of $100,000 or more | 1,580 | 2,245 | 2,645 | ||||||||||
Total | $ | 5,706 | $ | 8,913 | $ | 15,257 | |||||||
Summary of maturity of time deposits | ' | ||||||||||||
A summary of the maturity of time deposits at December 31, 2013, follows: | |||||||||||||
(In thousands) | |||||||||||||
2014 | $ | 317,074 | |||||||||||
2015 | 65,407 | ||||||||||||
2016 | 24,542 | ||||||||||||
2017 | 14,386 | ||||||||||||
2018 | 22,424 | ||||||||||||
2019 and thereafter | 748 | ||||||||||||
Total | $ | 444,581 | |||||||||||
Summary of reciprocal deposits | ' | ||||||||||||
A summary of reciprocal deposits at December 31 follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Demand | $ | 7,018 | $ | 545 | |||||||||
Money market | 4,197 | 700 | |||||||||||
Time | 72,312 | 31,997 | |||||||||||
Total | $ | 83,527 | $ | 33,242 |
OTHER_BORROWINGS_Tables
OTHER BORROWINGS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
OTHER BORROWINGS [Abstract] | ' | ||||||||||||||||
Summary of other borrowings | ' | ||||||||||||||||
A summary of other borrowings at December 31 follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Advances from the Federal Home Loan Bank | $ | 17,181 | $ | 17,622 | |||||||||||||
Other | 7 | 3 | |||||||||||||||
Total | $ | 17,188 | $ | 17,625 | |||||||||||||
Schedule of maturity dates and weighted average interest rates FHLB | ' | ||||||||||||||||
The maturity dates and weighted average interest rates of FHLB advances at December 31 follow: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Fixed-rate advances | |||||||||||||||||
2014 | $ | 4,240 | 5.73 | % | $ | 4,240 | 5.73 | % | |||||||||
2016 | 2,313 | 6.55 | 2,413 | 6.55 | |||||||||||||
2017 | 1,377 | 7.04 | 1,429 | 7.04 | |||||||||||||
2018 | 5,888 | 5.99 | 6,089 | 5.99 | |||||||||||||
2019 and thereafter | 3,363 | 7.49 | 3,451 | 7.49 | |||||||||||||
Total advances | $ | 17,181 | 6.38 | % | $ | 17,622 | 6.38 | % | |||||||||
Schedule of repayments of federal home loan bank advances | ' | ||||||||||||||||
A summary of repayments of FHLB Advances at December 31, 2013, follows: | |||||||||||||||||
(In thousands) | |||||||||||||||||
2014 | $ | 4,717 | |||||||||||||||
2015 | 515 | ||||||||||||||||
2016 | 2,521 | ||||||||||||||||
2017 | 1,587 | ||||||||||||||||
2018 | 5,042 | ||||||||||||||||
2019 and thereafter | 2,799 | ||||||||||||||||
Total | $ | 17,181 |
SUBORDINATED_DEBENTURES_Tables
SUBORDINATED DEBENTURES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
SUBORDINATED DEBENTURES [Abstract] | ' | ||||||||||||||
Schedule of information regarding subordinated debentures | ' | ||||||||||||||
Summary information regarding subordinated debentures as of December 31 follows: | |||||||||||||||
2013 | |||||||||||||||
Entity Name | Issue | Subordinated | Trust | Common | |||||||||||
Date | Debentures | Preferred | Stock | ||||||||||||
Securities | Issued | ||||||||||||||
Issued | |||||||||||||||
(In thousands) | |||||||||||||||
IBC Capital Finance III | May-07 | $ | 12,372 | $ | 12,000 | $ | 372 | ||||||||
IBC Capital Finance IV | Sep-07 | 20,619 | 20,000 | 619 | |||||||||||
Midwest Guaranty Trust I | Nov-02 | 7,732 | 7,500 | 232 | |||||||||||
$ | 40,723 | $ | 39,500 | $ | 1,223 | ||||||||||
2012 | |||||||||||||||
Entity Name | Issue | Subordinated | Trust | Common | |||||||||||
Date | Debentures | Preferred | Stock | ||||||||||||
Securities | Issued | ||||||||||||||
Issued | |||||||||||||||
(In thousands) | |||||||||||||||
IBC Capital Finance II | Mar-03 | $ | 9,452 | $ | 9,168 | $ | 284 | ||||||||
IBC Capital Finance III | May-07 | 12,372 | 12,000 | 372 | |||||||||||
IBC Capital Finance IV | Sep-07 | 20,619 | 20,000 | 619 | |||||||||||
Midwest Guaranty Trust I | Nov-02 | 7,732 | 7,500 | 232 | |||||||||||
$ | 50,175 | $ | 48,668 | $ | 1,507 | ||||||||||
Schedule of subordinated debentures and trust preferred securities | ' | ||||||||||||||
Other key terms for the subordinated debentures and trust preferred securities that were outstanding at December 31, 2013 follow: | |||||||||||||||
Entity Name | Maturity | Interest Rate | First Permitted | ||||||||||||
Date | Redemption Date | ||||||||||||||
IBC Capital Finance III | 30-Jul-37 | 3 month LIBOR plus 1.60% | 30-Jul-12 | ||||||||||||
IBC Capital Finance IV | 15-Sep-37 | 3 month LIBOR plus 2.85% | 15-Sep-12 | ||||||||||||
Midwest Guaranty Trust I | 7-Nov-32 | 3 month LIBOR plus 3.45% | 7-Nov-07 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | ' | ||||||||||||
Financial instruments with off-balance sheet risk | ' | ||||||||||||
A summary of financial instruments with off-balance sheet risk at December 31 follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Financial instruments whose risk is represented by contract amounts | |||||||||||||
Commitments to extend credit | $ | 180,829 | $ | 144,890 | |||||||||
Standby letters of credit | 4,262 | 4,568 | |||||||||||
Analysis of vehicle service contract counterparty receivable | ' | ||||||||||||
An analysis of our vehicle service contract counterparty receivable, net follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year, net of reserve | $ | 18,449 | $ | 29,298 | $ | 37,270 | |||||||
Transfers in from payment plan receivables | 792 | 1,469 | 8,874 | ||||||||||
Reserves established and charge-offs recorded to expense | (4,837 | ) | (1,629 | ) | (11,048 | ) | |||||||
Transferred to (from) contingency reserves | 63 | (108 | ) | (1,015 | ) | ||||||||
Cash received | (6,751 | ) | (7,413 | ) | (1,613 | ) | |||||||
Collateral received (other real estate and repossessed assets) in partial satisfaction of debt | - | (3,168 | ) | (3,170 | ) | ||||||||
Balance at end of year, net of reserve | $ | 7,716 | $ | 18,449 | $ | 29,298 | |||||||
Reserve at end of year | $ | 1,300 | $ | 2,000 | $ | 32,450 | |||||||
Analysis of vehicle service contract counterparty reserve | ' | ||||||||||||
An analysis of our vehicle service contract counterparty reserve follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 2,012 | $ | 32,570 | $ | 25,735 | |||||||
Additions charged to expense | 4,837 | 1,629 | 11,048 | ||||||||||
Charge-offs | (5,474 | ) | (32,187 | ) | (4,213 | ) | |||||||
Balance at end of year | $ | 1,375 | $ | 2,012 | $ | 32,570 | |||||||
Reserves recorded in VSC counterparty receivables, net | $ | 1,300 | $ | 2,000 | $ | 32,450 | |||||||
Reserves recorded in other liabilities | 75 | 12 | 120 | ||||||||||
Total at end of year | $ | 1,375 | $ | 2,012 | $ | 32,570 |
SHAREHOLDERS_EQUITY_AND_INCOME1
SHAREHOLDERS' EQUITY AND INCOME (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
SHAREHOLDERS' EQUITY AND INCOME (LOSS) PER COMMON SHARE [Abstract] | ' | ||||||||||||
Reconciliation of basic and diluted loss per share | ' | ||||||||||||
A reconciliation of basic and diluted net income (loss) per common share for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share amounts) | |||||||||||||
Net income (loss) applicable to common stock | $ | 82,062 | $ | 21,851 | $ | (24,357 | ) | ||||||
Convertible preferred stock dividends | 3,001 | 4,347 | - | ||||||||||
Preferred stock discount | (7,554 | ) | - | - | |||||||||
Net income (loss) applicable to common stock for calculation of diluted earnings per share (1) (2) | $ | 77,509 | $ | 26,198 | $ | (24,357 | ) | ||||||
Weighted average shares outstanding | 13,970 | 8,709 | 8,277 | ||||||||||
Effect of convertible preferred stock | 7,314 | 23,892 | 61,281 | ||||||||||
Restricted stock units | 363 | 216 | 122 | ||||||||||
Stock units for deferred compensation plan for non-employee directors | 125 | 66 | 7 | ||||||||||
Effect of stock options | 92 | 2 | - | ||||||||||
Weighted average shares outstanding for calculation of diluted earnings per share (1) | 21,864 | 32,885 | 69,687 | ||||||||||
Net income (loss) per common share | |||||||||||||
Basic (2) | $ | 5.87 | $ | 2.51 | $ | (2.94 | ) | ||||||
Diluted | $ | 3.55 | $ | 0.8 | $ | (2.94 | ) | ||||||
-1 | For any period in which a loss is recorded, dividends on convertible preferred stock are not added back in the diluted per common share calculation. For any period in which a loss is recorded, the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors would have an anti-dilutive impact on the net loss per common share and thus are ignored in the diluted per common share calculation. | ||||||||||||
-2 | Basic net income (loss) per common share includes weighted average common shares outstanding during the period and participating share awards. |
INCOME_TAX_Tables
INCOME TAX (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAX [Abstract] | ' | ||||||||||||
Composition of income tax expense (benefit) | ' | ||||||||||||
The composition of income tax expense (benefit) for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current | $ | (277 | ) | $ | - | $ | (413 | ) | |||||
Deferred | - | - | (646 | ) | |||||||||
Disproportionate tax effect | 1,444 | - | - | ||||||||||
Valuation allowance - change in estimate | (56,018 | ) | - | 847 | |||||||||
Income tax benefit | $ | (54,851 | ) | $ | - | $ | (212 | ) | |||||
Reconciliation of income tax benefit computed by applying the statutory federal income tax rate | ' | ||||||||||||
A reconciliation of income tax benefit to the amount computed by applying the statutory federal income tax rate of 35% in each year presented to the income (loss) before income tax for the years ended December 31 follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Statutory rate applied to income (loss) before income tax | $ | 7,930 | $ | 9,169 | $ | (7,144 | ) | ||||||
Net change in valuation allowance | (63,980 | ) | (8,730 | ) | 9,369 | ||||||||
Bank owned life insurance | (477 | ) | (568 | ) | (657 | ) | |||||||
Tax-exempt income | (402 | ) | (453 | ) | (521 | ) | |||||||
Disproportionate tax effect | 1,444 | - | - | ||||||||||
U.S. Treasury warrant | 359 | 100 | (398 | ) | |||||||||
Non-deductible meals, entertainment and memberships | 55 | 55 | 50 | ||||||||||
Share-based compensation | 8 | 258 | - | ||||||||||
Other, net | 212 | 169 | (911 | ) | |||||||||
Income tax benefit | $ | (54,851 | ) | $ | - | $ | (212 | ) | |||||
Summary of deferred tax assets and deferred tax liabilities | ' | ||||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31 follow: | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets | |||||||||||||
Loss carryforwards | $ | 38,027 | $ | 39,593 | |||||||||
Allowance for loan losses | 11,317 | 15,502 | |||||||||||
Fixed assets | 3,081 | 2,664 | |||||||||||
Alternative minimum tax credit carry forward | 2,672 | 2,577 | |||||||||||
Purchase premiums, net | 2,280 | 2,413 | |||||||||||
Valuation allowance on other real estate owned | 1,431 | 2,085 | |||||||||||
Share based payments | 402 | 817 | |||||||||||
Vehicle service contract counterparty contingency reserve | 523 | 765 | |||||||||||
Unrealized loss on trading securities | 456 | 591 | |||||||||||
Other than temporary impairment charge on securities available for sale | 466 | 507 | |||||||||||
Deferred compensation | 523 | 512 | |||||||||||
Loss reimbursement on sold loans reserve | 492 | 501 | |||||||||||
Non accrual loan interest income | 325 | 325 | |||||||||||
Unrealized loss on derivative financial instruments | 133 | 259 | |||||||||||
Reserve for unfunded lending commitments | 178 | 209 | |||||||||||
Unrealized loss on securities available for sale | 1,723 | 181 | |||||||||||
Other | 40 | 162 | |||||||||||
Gross deferred tax assets | 64,069 | 69,663 | |||||||||||
Valuation allowance | (1,137 | ) | (65,117 | ) | |||||||||
Total net deferred tax assets | 62,932 | 4,546 | |||||||||||
Deferred tax liabilities | |||||||||||||
Mortgage servicing rights | 4,799 | 3,855 | |||||||||||
Deferred loan fees | 265 | 373 | |||||||||||
Federal Home Loan Bank stock | 318 | 318 | |||||||||||
Gross deferred tax liabilities | 5,382 | 4,546 | |||||||||||
Net deferred tax assets | $ | 57,550 | $ | - | |||||||||
Schedule of federal net operating loss forwards | ' | ||||||||||||
At December 31, 2013, we had $0.3 million of federal capital loss carryforwards that expire in 2014 and federal net operating loss (“NOL”) carryforwards of approximately $108.0 million which, if not used against taxable income, will expire as follows: | |||||||||||||
(In thousands) | |||||||||||||
2017 | $ | 663 | |||||||||||
2018 | 189 | ||||||||||||
2022 | 194 | ||||||||||||
2023 | 359 | ||||||||||||
2029 | 25,467 | ||||||||||||
2030 | 26,254 | ||||||||||||
2031 | 17,170 | ||||||||||||
2032 | 37,738 | ||||||||||||
Total | $ | 108,034 | |||||||||||
Schedule of changes in unrecognized tax benefits | ' | ||||||||||||
Changes in unrecognized tax benefits for the years ended December 31 follow: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 1,871 | $ | 2,139 | $ | 2,393 | |||||||
Additions based on tax positions related to the current year | 11 | 15 | 23 | ||||||||||
Reductions due to the statute of limitations | (186 | ) | (56 | ) | (277 | ) | |||||||
Reductions due to settlements | (24 | ) | (227 | ) | - | ||||||||
Balance at end of year | $ | 1,672 | $ | 1,871 | $ | 2,139 |
SHARE_BASED_COMPENSATION_Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SHARE BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
Summary of outstanding stock option grants and transactions | ' | ||||||||||||||||
A summary of outstanding stock option grants and related transactions follows: | |||||||||||||||||
Number of | Average | Weighted- | Aggregated | ||||||||||||||
Shares | Exercise | Average | Intrinsic | ||||||||||||||
Price | Remaining | Value | |||||||||||||||
Contractual | |||||||||||||||||
Term (Years) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Outstanding at January 1, 2013 | 275,933 | $ | 4.46 | ||||||||||||||
Granted | 77,500 | 6.42 | |||||||||||||||
Exercised | (19,277 | ) | 2.02 | ||||||||||||||
Forfeited | (9,164 | ) | 2.85 | ||||||||||||||
Expired | (4,692 | ) | 46.12 | ||||||||||||||
Outstanding at December 31, 2013 | 320,300 | $ | 4.52 | 8.06 | $ | 2,500 | |||||||||||
Vested and expected to vest at December 31, 2013 | 305,753 | $ | 4.52 | 8.01 | $ | 2,391 | |||||||||||
Exercisable at December 31, 2013 | 133,516 | $ | 5.13 | 7.09 | $ | 1,021 | |||||||||||
Summary of non-vested restricted stock and stock units and transactions | ' | ||||||||||||||||
A summary of outstanding non-vested stock and related transactions follows: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
Outstanding at January 1, 2013 | 375,416 | $ | 6.21 | ||||||||||||||
Granted | 82,833 | 6.42 | |||||||||||||||
Vested | (154,269 | ) | 11.13 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Outstanding at December 31, 2013 | 303,980 | $ | 3.77 | ||||||||||||||
Summary of weighted-average assumptions used in Black-Scholes option pricing model for grants of stock options | ' | ||||||||||||||||
A summary of the weighted-average assumptions used in the Black-Scholes option pricing model for grants of stock options follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected dividend yield | 0.31 | % | 0.74 | % | 1.04 | % | |||||||||||
Risk-free interest rate | 1.12 | 0.88 | 1.91 | ||||||||||||||
Expected life (in years) | 6 | 6 | 6 | ||||||||||||||
Expected volatility | 101.3 | % | 100.01 | % | 94.72 | % | |||||||||||
Per share weighted-average grant date fair value | $ | 4.98 | $ | 2.04 | $ | 1.37 | |||||||||||
Information regarding options exercised | ' | ||||||||||||||||
Certain information regarding options exercised during the periods ending December 31 follows: | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(In thousands) | |||||||||||||||||
Intrinsic value | $ | 117 | $ | 3 | $ | - | |||||||||||
Cash proceeds received | $ | 39 | $ | 4 | $ | - | |||||||||||
Tax benefit realized | $ | - | $ | - | $ | - |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||
Derivative financial instruments according to type of hedge designation | ' | ||||||||||||||||||||||||||||||||||||||
Our derivative financial instruments according to the type of hedge in which they are designated at December 31 follow: | |||||||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||||
Notional | Average | Fair | |||||||||||||||||||||||||||||||||||||
Amount | Maturity | Value | |||||||||||||||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
No hedge designation | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | $ | 15,754 | 0.1 | $ | 366 | ||||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | 35,412 | 0.1 | 128 | ||||||||||||||||||||||||||||||||||||
Total | $ | 51,166 | 0.1 | $ | 494 | ||||||||||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||||||
Notional | Average | Fair | |||||||||||||||||||||||||||||||||||||
Amount | Maturity | Value | |||||||||||||||||||||||||||||||||||||
(Years) | |||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Cash flow hedge - pay-fixed interest-rate swap agreements | $ | 10,000 | 2 | $ | (739 | ) | |||||||||||||||||||||||||||||||||
No hedge designation | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | $ | 40,221 | 0.1 | $ | 1,368 | ||||||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | 88,325 | 0.1 | (122 | ) | |||||||||||||||||||||||||||||||||||
Amended Warrant | 2,504 | 6 | (459 | ) | |||||||||||||||||||||||||||||||||||
Total | $ | 131,050 | 0.2 | $ | 787 | ||||||||||||||||||||||||||||||||||
Fair value of derivative instruments | ' | ||||||||||||||||||||||||||||||||||||||
The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Consolidated Statements of Financial Condition for the periods presented: | |||||||||||||||||||||||||||||||||||||||
Fair Values of Derivative Instruments | |||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||
Sheet | Fair | Sheet | Fair | Sheet | Fair | Sheet | Fair | ||||||||||||||||||||||||||||||||
Location | Value | Location | Value | Location | Value | Location | Value | ||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | $ | - | $ | - | Other liabilities | $ | - | Other liabilities | $ | 739 | |||||||||||||||||||||||||||||
Total | - | - | - | 739 | |||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | Other assets | 366 | Other assets | 1,368 | Other liabilities | - | Other liabilities | - | |||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | Other assets | 128 | Other assets | - | Other liabilities | - | Other liabilities | 122 | |||||||||||||||||||||||||||||||
Amended Warrant | Other assets | - | Other assets | - | Other liabilities | - | Other liabilities | 459 | |||||||||||||||||||||||||||||||
Total | 494 | 1,368 | - | 581 | |||||||||||||||||||||||||||||||||||
Total derivatives | $ | 494 | $ | 1,368 | $ | - | $ | 1,320 | |||||||||||||||||||||||||||||||
Effect of derivative financial instruments on consolidated statement of operation | ' | ||||||||||||||||||||||||||||||||||||||
The effect of derivative financial instruments on the Consolidated Statements of Operations follows: | |||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||
Gain (Loss) | Location of | Gain (Loss) Reclassified | Location of | Gain (Loss) | |||||||||||||||||||||||||||||||||||
Recognized in Other | Gain (Loss) | from Accumulated Other | Gain (Loss) | Recognized in | |||||||||||||||||||||||||||||||||||
Comprehensive | Reclassified | Comprehensive Loss into | Recognized | Income(1) | |||||||||||||||||||||||||||||||||||
Income (Loss) | from | Income (Effective Portion) | |||||||||||||||||||||||||||||||||||||
(Effective Portion) | Accumulated Other | ||||||||||||||||||||||||||||||||||||||
Comprehensive | |||||||||||||||||||||||||||||||||||||||
Income (Loss) | |||||||||||||||||||||||||||||||||||||||
into Income | |||||||||||||||||||||||||||||||||||||||
(Effective | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | Portion) | 2013 | 2012 | 2011 | in Income (1) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||||||||
Pay-fixed interest rate swap agreements | $ | (37 | ) | $ | (127 | ) | $ | (512 | ) | Interest expense | $ | (397 | ) | $ | (927 | ) | $ | (1,443 | ) | Interest expense | $ | - | $ | - | $ | - | |||||||||||||
Interest-rate cap agreements | - | - | 30 | Interest expense | - | - | (15 | ) | Interest expense | - | - | - | |||||||||||||||||||||||||||
Total | $ | (37 | ) | $ | (127 | ) | $ | (482 | ) | $ | (397 | ) | $ | (927 | ) | $ | (1,458 | ) | $ | - | $ | - | $ | - | |||||||||||||||
No hedge designation | |||||||||||||||||||||||||||||||||||||||
Rate-lock mortgage loan commitments | Mortgage loan gains | $ | (1,002 | ) | $ | 511 | $ | 457 | |||||||||||||||||||||||||||||||
Mandatory commitments to sell mortgage loans | Mortgage loan gains | 250 | 484 | (1,981 | ) | ||||||||||||||||||||||||||||||||||
Amended Warrant | Decrease in fair value of U.S. Treasury warrant | (1,025 | ) | (285 | ) | 1,137 | |||||||||||||||||||||||||||||||||
Total | $ | (1,777 | ) | $ | 710 | $ | (387 | ) | |||||||||||||||||||||||||||||||
(1) For cash flow hedges, this location and amount refers to the ineffective portion. |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
RELATED PARTY TRANSACTIONS [Abstract] | ' | ||||||||
Summary of loans to directors and executive officers | ' | ||||||||
A summary of loans to directors and executive officers whose borrowing relationship exceeds $60,000, and to entities in which they own a 10% or more voting interest for the years ended December 31 follows: | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 208 | $ | 214 | |||||
New loans and advances | 240 | - | |||||||
Repayments | (97 | ) | (6 | ) | |||||
Balance at end of year | $ | 351 | $ | 208 |
LEASES_Tables
LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
LEASES [Abstract] | ' | ||||
Summary of future minimum lease payments under non-cancelable operating leases | ' | ||||
A summary of future minimum lease payments under non-cancelable operating leases at December 31, 2013, follows: | |||||
(In thousands) | |||||
2014 | $ | 1,274 | |||
2015 | 1,058 | ||||
2016 | 1,017 | ||||
2017 | 983 | ||||
2018 | 961 | ||||
2019 and thereafter | 1,620 | ||||
Total | $ | 6,913 |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
Actual capital amounts and ratios | ' | ||||||||||||||||||||||||
Our actual capital amounts and ratios at December 31 follow: | |||||||||||||||||||||||||
Actual | Minimum for | Minimum for Well- | |||||||||||||||||||||||
Adequately Capitalized | Capitalized Institutions | ||||||||||||||||||||||||
Institutions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 245,284 | 17.35 | % | $ | 113,086 | 8 | % | NA | NA | |||||||||||||||
Independent Bank | 234,078 | 16.57 | 113,013 | 8 | $ | 141,267 | 10 | % | |||||||||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 227,338 | 16.08 | % | $ | 56,543 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 216,146 | 15.3 | 56,507 | 4 | $ | 84,760 | 6 | % | |||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Consolidated | $ | 227,338 | 10.61 | % | $ | 85,729 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 216,146 | 10.09 | 85,681 | 4 | $ | 107,101 | 5 | % | |||||||||||||||||
2012 | |||||||||||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 204,663 | 14.71 | % | $ | 111,268 | 8 | % | NA | NA | |||||||||||||||
Independent Bank | 207,553 | 14.95 | 111,063 | 8 | $ | 138,829 | 10 | % | |||||||||||||||||
Tier 1 capital to risk-weighted assets | |||||||||||||||||||||||||
Consolidated | $ | 185,948 | 13.37 | % | $ | 55,634 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 189,777 | 13.67 | 55,531 | 4 | $ | 83,297 | 6 | % | |||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Consolidated | $ | 185,948 | 8.08 | % | $ | 92,026 | 4 | % | NA | NA | |||||||||||||||
Independent Bank | 189,777 | 8.26 | 91,919 | 4 | $ | 114,899 | 5 | % | |||||||||||||||||
NA - Not applicable | |||||||||||||||||||||||||
Components of regulatory capital | ' | ||||||||||||||||||||||||
The components of our regulatory capital are as follows: | |||||||||||||||||||||||||
Consolidated | Independent Bank | ||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Total shareholders’ equity | $ | 231,581 | $ | 134,975 | $ | 250,306 | $ | 186,384 | |||||||||||||||||
Add (deduct) | |||||||||||||||||||||||||
Qualifying trust preferred securities | 39,500 | 47,678 | - | - | |||||||||||||||||||||
Accumulated other comprehensive loss | 9,245 | 8,058 | 9,245 | 8,156 | |||||||||||||||||||||
Intangible assets | (3,163 | ) | (3,975 | ) | (3,163 | ) | (3,975 | ) | |||||||||||||||||
Disallowed deferred tax assets | (49,609 | ) | - | (40,026 | ) | - | |||||||||||||||||||
Disallowed capitalized mortgage loan servicing rights | (216 | ) | (788 | ) | (216 | ) | (788 | ) | |||||||||||||||||
Tier 1 capital | 227,338 | 185,948 | 216,146 | 189,777 | |||||||||||||||||||||
Qualifying trust preferred securities | - | 990 | - | - | |||||||||||||||||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 17,946 | 17,725 | 17,932 | 17,776 | |||||||||||||||||||||
Total risk-based capital | $ | 245,284 | $ | 204,663 | $ | 234,078 | $ | 207,553 |
FAIR_VALUE_DISCLOSURES_Tables
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE DISCLOSURES [Abstract] | ' | ||||||||||||||||
Assets and liabilities measured at fair value | ' | ||||||||||||||||
Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, are summarized below: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair Value | Quoted Prices | Significant | Significant | ||||||||||||||
Measure- | in Active | Other | Un- | ||||||||||||||
ments | Markets for | Observable | observable | ||||||||||||||
Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2013: | |||||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
Assets | |||||||||||||||||
Trading securities | $ | 498 | $ | 498 | $ | - | $ | - | |||||||||
Securities available for sale | |||||||||||||||||
U.S. agency | 31,808 | - | 31,808 | - | |||||||||||||
U.S. agency residential mortgage-backed | 203,460 | - | 203,460 | - | |||||||||||||
Private label residential mortgage-backed | 6,788 | - | 6,788 | - | |||||||||||||
Other asset backed | 45,185 | - | 45,185 | - | |||||||||||||
Obligations of states and political subdivisions | 153,678 | - | 153,678 | - | |||||||||||||
Corporate | 19,137 | - | 19,137 | - | |||||||||||||
Trust preferred | 2,425 | - | 2,425 | - | |||||||||||||
Loans held for sale | 20,390 | - | 20,390 | - | |||||||||||||
Derivatives (1) | 494 | - | 494 | - | |||||||||||||
Liabilities | |||||||||||||||||
Derivatives (2) | - | - | - | - | |||||||||||||
Measured at Fair Value on a Non-recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Capitalized mortgage loan servicing rights (3) | 7,773 | - | - | 7,773 | |||||||||||||
Impaired loans (4) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 1,997 | - | - | 1,997 | |||||||||||||
Land, land development & construction-real estate | 673 | - | - | 673 | |||||||||||||
Commercial and industrial | 2,927 | - | - | 2,927 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 1,455 | - | - | 1,455 | |||||||||||||
Resort Lending | 340 | - | - | 340 | |||||||||||||
Other real estate (5) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 559 | - | - | 559 | |||||||||||||
Land, land development & construction-real estate | 1,047 | - | - | 1,047 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 337 | - | - | 337 | |||||||||||||
Resort Lending | 1,257 | - | - | 1,257 | |||||||||||||
Installment | |||||||||||||||||
Home equity - 1st lien | 29 | - | - | 29 | |||||||||||||
Payment plan receivables | |||||||||||||||||
Full refund/partial refund | 2,668 | - | - | 2,668 | |||||||||||||
-1 | Included in accrued income and other assets | ||||||||||||||||
-2 | Included in accrued expenses and other liabilities | ||||||||||||||||
-3 | Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. | ||||||||||||||||
-4 | Only includes impaired loans with specific loss allocations based on collateral value. | ||||||||||||||||
-5 | Only includes other real estate with subsequent write downs to fair value. | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair Value | Quoted | Significant | Significant | ||||||||||||||
Measure- | Prices in | Other | Un- | ||||||||||||||
ments | Active | Observable | observable | ||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
(In thousands) | |||||||||||||||||
December 31, 2012: | |||||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||||
Assets | |||||||||||||||||
Trading securities | $ | 110 | $ | 110 | $ | - | $ | - | |||||||||
Securities available for sale | |||||||||||||||||
U.S. agency | 30,667 | - | 30,667 | - | |||||||||||||
U.S. agency residential mortgage-backed | 127,412 | - | 127,412 | - | |||||||||||||
Private label residential mortgage-backed | 8,194 | - | 8,194 | - | |||||||||||||
Obligations of states and political subdivisions | 39,051 | - | 39,051 | - | |||||||||||||
Trust preferred | 3,089 | - | 3,089 | - | |||||||||||||
Loans held for sale | 47,487 | - | 47,487 | - | |||||||||||||
Derivatives (1) | 1,368 | - | 1,368 | - | |||||||||||||
Liabilities | |||||||||||||||||
Derivatives (2) | 1,320 | - | 861 | 459 | |||||||||||||
Measured at Fair Value on a Non-recurring basis: | |||||||||||||||||
Assets | |||||||||||||||||
Capitalized mortgage loan servicing rights (3) | 8,814 | - | - | 8,814 | |||||||||||||
Impaired loans (4) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 3,727 | - | - | 3,727 | |||||||||||||
Land, land development & construction-real estate | 2,882 | - | - | 2,882 | |||||||||||||
Commercial and industrial | 6,581 | - | - | 6,581 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 2,694 | - | - | 2,694 | |||||||||||||
Resort Lending | 380 | - | - | 380 | |||||||||||||
Other real estate (5) | |||||||||||||||||
Commercial | |||||||||||||||||
Income producing - real estate | 86 | - | - | 86 | |||||||||||||
Land, land development & construction-real estate | 3,190 | - | - | 3,190 | |||||||||||||
Mortgage | |||||||||||||||||
1-4 Family | 405 | - | - | 405 | |||||||||||||
Resort Lending | 3,535 | - | - | 3,535 | |||||||||||||
Installment | |||||||||||||||||
Home equity - 1st lien | 59 | - | - | 59 | |||||||||||||
Loans held for sale relating to branch sale | 3,292 | - | 3,292 | - | |||||||||||||
-1 | Included in accrued income and other assets | ||||||||||||||||
-2 | Included in accrued expenses and other liabilities | ||||||||||||||||
-3 | Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. | ||||||||||||||||
-4 | Only includes impaired loans with specific loss allocations based on collateral value. | ||||||||||||||||
-5 | Only includes other real estate with subsequent write downs to fair value. | ||||||||||||||||
Changes in fair value for financial assets | ' | ||||||||||||||||
Changes in fair values for financial assets which we have elected the fair value option for the years ended December 31 are as follows: | |||||||||||||||||
Net Gains (Losses) on Assets | Total Change in | ||||||||||||||||
Fair Values | |||||||||||||||||
Included in | |||||||||||||||||
Current Period | |||||||||||||||||
Securities | Loans | Earnings | |||||||||||||||
(In thousands) | |||||||||||||||||
2013 | |||||||||||||||||
Trading securities | $ | 388 | $ | - | $ | 388 | |||||||||||
Loans held for sale | - | (1,477 | ) | (1,477 | ) | ||||||||||||
2012 | |||||||||||||||||
Trading securities | $ | 33 | $ | - | $ | 33 | |||||||||||
Loans held for sale | - | 440 | 440 | ||||||||||||||
2011 | |||||||||||||||||
Trading securities | $ | 45 | $ | - | $ | 45 | |||||||||||
Loans held for sale | - | 1,503 | 1,503 | ||||||||||||||
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | ||||||||||||||||
A reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31 follows: | |||||||||||||||||
(Liability) | |||||||||||||||||
Amended Warrant | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Beginning balance | $ | (459 | ) | $ | (174 | ) | |||||||||||
Total gains (losses) realized and unrealized: | |||||||||||||||||
Included in results of operations | (1,025 | ) | (285 | ) | |||||||||||||
Included in other comprehensive income | - | - | |||||||||||||||
Purchases, issuances, settlements, maturities and calls | - | - | |||||||||||||||
Reclassification to shareholders’ equity | 1,484 | - | |||||||||||||||
Transfers in and/or out of Level 3 | - | - | |||||||||||||||
Ending balance | $ | - | $ | (459 | ) | ||||||||||||
Amount of total gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31 | $ | - | $ | (285 | ) | ||||||||||||
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis | ' | ||||||||||||||||
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis at December 31 follows: | |||||||||||||||||
Asset | Valuation Technique | Unobservable Inputs | Weighted | ||||||||||||||
(Liability) | Average | ||||||||||||||||
Fair Value | |||||||||||||||||
(In thousands) | |||||||||||||||||
2013 | |||||||||||||||||
Capitalized mortgage loan servicing rights | $ | 7,773 | Present value of net servicing revenue | Discount rate | 10.09 | % | |||||||||||
Cost to service | $ | 81 | |||||||||||||||
Ancillary income | 29 | ||||||||||||||||
Float rate | 1.79 | % | |||||||||||||||
Impaired loans | |||||||||||||||||
Commercial | 5,597 | Sales comparison approach | Adjustment for differences between comparable sales | (1.9 | )% | ||||||||||||
Income approach | Capitalization rate | 9.3 | |||||||||||||||
Mortgage | 1,795 | Sales comparison approach | Adjustment for differences between comparable sales | 3.2 | |||||||||||||
Other real estate | |||||||||||||||||
Commercial | 1,606 | Sales comparison approach | Adjustment for differences between comparable sales | (5.7 | ) | ||||||||||||
Mortgage and Installment | 1,623 | Sales comparison approach | Adjustment for differences between comparable sales | 55.7 | |||||||||||||
Payment plan receivables | 2,668 | Sales comparison approach | Adjustment for differences between comparable sales | 10.4 | |||||||||||||
2012 | |||||||||||||||||
Capitalized mortgage loan servicing rights | $ | 8,814 | Present value of net servicing revenue | Discount rate | 11 | % | |||||||||||
Cost to service | $ | 83 | |||||||||||||||
Ancillary income | 43 | ||||||||||||||||
Float rate | 0.84 | % | |||||||||||||||
Impaired loans | |||||||||||||||||
Commercial | 13,190 | Sales comparison approach | Adjustment for differences between comparable sales | 16.7 | % | ||||||||||||
Income approach | Capitalization rate | 10.8 | |||||||||||||||
Mortgage | 3,074 | Sales comparison approach | Adjustment for differences between comparable sales | 9.5 | |||||||||||||
Other real estate | |||||||||||||||||
Commercial | 3,276 | Sales comparison approach | Adjustment for differences between comparable sales | (12.4 | ) | ||||||||||||
Income approach | Capitalization rate | 12.3 | |||||||||||||||
Mortgage and Installment | 3,999 | Sales comparison approach | Adjustment for differences between comparable sales | (6.3 | ) | ||||||||||||
Aggregate fair value and aggregate remaining contractual principal balance for loans held for sale | ' | ||||||||||||||||
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale for which the fair value option has been elected at December 31. | |||||||||||||||||
Aggregate | Difference | Contractual | |||||||||||||||
Fair Value | Principal | ||||||||||||||||
(In thousands) | |||||||||||||||||
Loans held for sale | |||||||||||||||||
2013 | $ | 20,390 | $ | 366 | $ | 20,024 | |||||||||||
2012 | 47,487 | 1,843 | 45,644 | ||||||||||||||
2011 | 44,801 | 1,403 | 43,398 |
FAIR_VALUES_OF_FINANCIAL_INSTR1
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Values of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Estimated fair values and recorded book balances | ' | ||||||||||||||||||||
The estimated fair values and recorded book balances at December 31 follow: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Recorded | Fair Value | Quoted | Significant | Significant | |||||||||||||||||
Book | Measure- | Prices in | Other | Un- | |||||||||||||||||
Balance | ments | Active | Observable | observable | |||||||||||||||||
Markets for | Inputs | Inputs | |||||||||||||||||||
Identical | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 48,156 | $ | 48,156 | $ | 48,156 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 70,925 | 70,925 | 70,925 | - | - | ||||||||||||||||
Interest bearing deposits - time | 17,999 | 18,000 | - | 18,000 | - | ||||||||||||||||
Trading securities | 498 | 498 | 498 | - | - | ||||||||||||||||
Securities available for sale | 462,481 | 462,481 | - | 462,481 | - | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 23,419 | NA | NA | NA | NA | ||||||||||||||||
Net loans and loans held for sale | 1,362,635 | 1,333,229 | - | 20,390 | 1,312,839 | ||||||||||||||||
Accrued interest receivable | 5,948 | 5,948 | 1 | 1,426 | 4,521 | ||||||||||||||||
Derivative financial instruments | 494 | 494 | - | 494 | - | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 1,440,225 | $ | 1,440,225 | $ | 1,440,225 | $ | - | $ | - | |||||||||||
Deposits with stated maturity (1) | 444,581 | 446,366 | - | 446,366 | - | ||||||||||||||||
Other borrowings | 17,188 | 19,726 | - | 19,726 | - | ||||||||||||||||
Subordinated debentures | 40,723 | 27,871 | - | 27,871 | - | ||||||||||||||||
Accrued interest payable | 445 | 445 | 20 | 425 | - | ||||||||||||||||
Derivative financial instruments | - | - | - | - | - | ||||||||||||||||
2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and due from banks | $ | 55,487 | $ | 55,487 | $ | 55,487 | $ | - | $ | - | |||||||||||
Interest bearing deposits | 124,295 | 124,295 | 124,295 | - | - | ||||||||||||||||
Trading securities | 110 | 110 | 110 | - | - | ||||||||||||||||
Securities available for sale | 208,413 | 208,413 | - | 208,413 | - | ||||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank Stock | 20,838 | NA | NA | NA | NA | ||||||||||||||||
Net loans and loans held for sale | 1,425,643 | 1,400,385 | - | 50,779 | 1,349,606 | ||||||||||||||||
Accrued interest receivable | 5,814 | 5,814 | 102 | 934 | 4,778 | ||||||||||||||||
Derivative financial instruments | 1,368 | 1,368 | - | 1,368 | - | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Deposits with no stated maturity (1) | $ | 1,360,609 | $ | 1,360,609 | $ | 1,360,609 | $ | - | $ | - | |||||||||||
Deposits with stated maturity (1) | 418,928 | 420,374 | - | 420,374 | - | ||||||||||||||||
Other borrowings | 17,625 | 21,463 | - | 21,463 | - | ||||||||||||||||
Subordinated debentures | 50,175 | 42,235 | 7,956 | 34,279 | - | ||||||||||||||||
Accrued interest payable | 7,197 | 7,197 | 2,942 | 4,255 | - | ||||||||||||||||
Derivative financial instruments | 1,320 | 1,320 | - | 861 | 459 | ||||||||||||||||
-1 | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $11.2 million and $1.2 million at December 31, 2013 and 2012, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $72.3 million and $32.0 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
OPERATING_SEGMENTS_Tables
OPERATING SEGMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
OPERATING SEGMENTS [Abstract] | ' | ||||||||||||||||||||
Summary of selected financial information for reportable segments | ' | ||||||||||||||||||||
A summary of selected financial information for our reportable segments follows: | |||||||||||||||||||||
IB | Mepco | Other(1)(2) | Elimination(3) | Total | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
2013 | |||||||||||||||||||||
Total assets | $ | 2,104,550 | $ | 94,648 | $ | 272,348 | $ | (261,603 | ) | $ | 2,209,943 | ||||||||||
Interest income | 76,018 | 11,103 | - | - | 87,121 | ||||||||||||||||
Net interest income | 71,496 | 8,780 | (2,317 | ) | - | 77,959 | |||||||||||||||
Provision for loan losses | (3,891 | ) | (97 | ) | - | - | (3,988 | ) | |||||||||||||
Income (loss) before income tax | 29,605 | (2,891 | ) | (3,961 | ) | (95 | ) | 22,658 | |||||||||||||
Net income (loss) | 74,313 | (1,801 | ) | 5,092 | (95 | ) | 77,509 | ||||||||||||||
2012 | |||||||||||||||||||||
Total assets | $ | 1,885,807 | $ | 135,447 | $ | 192,343 | $ | (189,730 | ) | $ | 2,023,867 | ||||||||||
Interest income | 84,760 | 14,638 | - | - | 99,398 | ||||||||||||||||
Net interest income | 77,919 | 11,115 | (2,779 | ) | - | 86,255 | |||||||||||||||
Provision for loan losses | 6,895 | (8 | ) | - | - | 6,887 | |||||||||||||||
Income (loss) before income tax | 27,379 | 2,591 | (3,677 | ) | (95 | ) | 26,198 | ||||||||||||||
Net income (loss) | 28,260 | 1,710 | (3,677 | ) | (95 | ) | 26,198 | ||||||||||||||
2011 | |||||||||||||||||||||
Total assets | $ | 2,132,736 | $ | 172,007 | $ | 157,251 | $ | (154,588 | ) | $ | 2,307,406 | ||||||||||
Interest income | 93,310 | 21,452 | - | - | 114,762 | ||||||||||||||||
Net interest income | 81,224 | 16,074 | (2,729 | ) | - | 94,569 | |||||||||||||||
Provision for loan losses | 27,972 | (26 | ) | - | - | 27,946 | |||||||||||||||
Loss before income tax | (11,137 | ) | (6,694 | ) | (2,486 | ) | (95 | ) | (20,412 | ) | |||||||||||
Net loss | (12,768 | ) | (4,849 | ) | (2,488 | ) | (95 | ) | (20,200 | ) | |||||||||||
-1 | During 2013 IB and Other (parent company) include $47.1 million and $9.0 million, respectively of income tax benefit related to the reversal of the valuation allowance on our net deferred tax assets (see note #13). | ||||||||||||||||||||
-2 | Includes amounts relating to our parent company and certain insignificant operations. | ||||||||||||||||||||
-3 | Includes parent company’s investment in subsidiaries and cash balances maintained at subsidiary. | ||||||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
A summary of changes in accumulated other comprehensive loss (“AOCL”) during the years ended December 31 follows (1): | |||||||||||||||||||||||||
Unrealized | Dispropor- | Unrealized | Unrealized | Dispropor- | Total | ||||||||||||||||||||
Losses on | tionate Tax | Losses on | Losses on | tionate Tax | |||||||||||||||||||||
Available for | Effects from | Cash Flow | Settled | Effects from | |||||||||||||||||||||
Sale | Securities | Hedges | Derivatives | Cash Flow | |||||||||||||||||||||
Securities | Available for | Hedges | |||||||||||||||||||||||
Sale | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Balances at beginning of period | $ | (516 | ) | $ | (5,617 | ) | $ | (739 | ) | $ | - | $ | (1,186 | ) | $ | (8,058 | ) | ||||||||
Income tax | 181 | (181 | ) | 258 | - | (258 | ) | - | |||||||||||||||||
Balances at beginning of period, net of tax | (335 | ) | (5,798 | ) | (481 | ) | - | (1,444 | ) | (8,058 | ) | ||||||||||||||
Terminated cash flow hedge | - | - | 370 | (370 | ) | - | - | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (2,877 | ) | - | (24 | ) | - | - | (2,901 | ) | ||||||||||||||||
Amounts reclassified from AOCL | 12 | - | 135 | 123 | 1,444 | 1,714 | |||||||||||||||||||
Net current period other comprehensive income (loss) | (2,865 | ) | - | 111 | 123 | 1,444 | (1,187 | ) | |||||||||||||||||
Balances at end of period | $ | (3,200 | ) | $ | (5,798 | ) | $ | - | $ | (247 | ) | $ | - | $ | (9,245 | ) | |||||||||
2012 | |||||||||||||||||||||||||
Balances at beginning of period | $ | (3,579 | ) | $ | (5,617 | ) | $ | (1,103 | ) | $ | (436 | ) | $ | (1,186 | ) | $ | (11,921 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 3,917 | - | (127 | ) | - | - | 3,790 | ||||||||||||||||||
Amounts reclassified from AOCL | (854 | ) | - | 491 | 436 | - | 73 | ||||||||||||||||||
Net current period other comprehensive income (loss) | 3,063 | - | 364 | 436 | - | 3,863 | |||||||||||||||||||
Balances at end of period | $ | (516 | ) | $ | (5,617 | ) | $ | (739 | ) | $ | - | $ | (1,186 | ) | $ | (8,058 | ) | ||||||||
2011 | |||||||||||||||||||||||||
Balances at beginning of period | $ | (4,448 | ) | $ | (5,313 | ) | $ | (1,420 | ) | $ | (1,095 | ) | $ | (844 | ) | $ | (13,120 | ) | |||||||
Disproportionate tax effects | - | (304 | ) | - | - | (342 | ) | (646 | ) | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | 313 | - | (482 | ) | - | - | (169 | ) | |||||||||||||||||
Amounts reclassified from AOCL | 556 | - | 799 | 659 | - | 2,014 | |||||||||||||||||||
Net current period other comprehensive income (loss) | 869 | (304 | ) | 317 | 659 | (342 | ) | 1,199 | |||||||||||||||||
Balances at end of period | $ | (3,579 | ) | $ | (5,617 | ) | $ | (1,103 | ) | $ | (436 | ) | $ | (1,186 | ) | $ | (11,921 | ) | |||||||
-1 | 2013 amounts are presented net of tax as we removed substantially all of the valuation allowance on our deferred tax assets during the second quarter of 2013 (see note #13). | ||||||||||||||||||||||||
Summary of reclassifications out of each component of AOCL | ' | ||||||||||||||||||||||||
A summary of reclassifications out of each component of AOCL for the years ended December 31 follows: | |||||||||||||||||||||||||
AOCL Component | Reclassified | Affected Line Item in | |||||||||||||||||||||||
From AOCL | Consolidated Statements of Operations | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||
$ | 7 | Net gains on securities | |||||||||||||||||||||||
(26 | ) | Net impairment loss recognized in earnings | |||||||||||||||||||||||
(19 | ) | Total reclassifications before tax | |||||||||||||||||||||||
(7 | ) | Tax expense (benefit) | |||||||||||||||||||||||
$ | (12 | ) | Reclassifications, net of tax | ||||||||||||||||||||||
Unrealized losses on cash flow hedges | |||||||||||||||||||||||||
$ | (208 | ) | Interest expense | ||||||||||||||||||||||
(73 | ) | Tax expense (benefit) | |||||||||||||||||||||||
$ | (135 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Unrealized losses on settled derivatives | |||||||||||||||||||||||||
$ | (189 | ) | Interest expense | ||||||||||||||||||||||
(66 | ) | Tax expense (benefit) | |||||||||||||||||||||||
$ | (123 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Disproportionate tax effects from cash flow | |||||||||||||||||||||||||
hedges | $ | 1,444 | Tax expense (benefit) | ||||||||||||||||||||||
$ | (1,714 | ) | Total reclassifications for the period, net of tax | ||||||||||||||||||||||
2012 | |||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||
$ | 1,193 | Net gains on securities | |||||||||||||||||||||||
(339 | ) | Net impairment loss recognized in earnings | |||||||||||||||||||||||
854 | Total reclassifications before tax | ||||||||||||||||||||||||
- | Tax expense (benefit) | ||||||||||||||||||||||||
$ | 854 | Reclassifications, net of tax | |||||||||||||||||||||||
Unrealized losses on cash flow hedges | |||||||||||||||||||||||||
$ | (491 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit) | ||||||||||||||||||||||||
$ | (491 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Unrealized losses on settled derivatives | |||||||||||||||||||||||||
$ | (436 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit) | ||||||||||||||||||||||||
$ | (436 | ) | Reclassification, net of tax | ||||||||||||||||||||||
$ | (73 | ) | Total reclassifications for the period, net of tax | ||||||||||||||||||||||
AOCL Component | Reclassified From AOCL | Affected Line Item in | |||||||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
2011 | |||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||
$ | 204 | Net gains on securities | |||||||||||||||||||||||
(760 | ) | Net impairment loss recognized in earnings | |||||||||||||||||||||||
(556 | ) | Total reclassifications before tax | |||||||||||||||||||||||
- | Tax expense (benefit ) | ||||||||||||||||||||||||
$ | (556 | ) | Reclassifications, net of tax | ||||||||||||||||||||||
Disproportionate tax effects from available for sale securities | $ | (304 | ) | Tax expense (benefit ) | |||||||||||||||||||||
Unrealized losses on cash flow hedges | |||||||||||||||||||||||||
$ | (799 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit ) | ||||||||||||||||||||||||
$ | (799 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Unrealized losses on settled derivatives | |||||||||||||||||||||||||
$ | (659 | ) | Interest expense | ||||||||||||||||||||||
- | Tax expense (benefit ) | ||||||||||||||||||||||||
$ | (659 | ) | Reclassification, net of tax | ||||||||||||||||||||||
Disproportionate tax effects from cash flow hedges | $ | (342 | ) | Tax expense (benefit ) | |||||||||||||||||||||
$ | (1,368 | ) | Total reclassifications for the period, net of tax |
INDEPENDENT_BANK_CORPORATION_P1
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION [Abstract] | ' | ||||||||||||
CONDENSED STATEMENTS OF FINANCIAL CONDITION | ' | ||||||||||||
CONDENSED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 11,654 | $ | 3,788 | |||||||||
Investment in subsidiaries | 251,529 | 187,890 | |||||||||||
Other assets | 9,165 | 665 | |||||||||||
Total Assets | $ | 272,348 | $ | 192,343 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Subordinated debentures | $ | 40,723 | $ | 50,175 | |||||||||
Other liabilities | 391 | 7,635 | |||||||||||
Shareholders’ equity | 231,234 | 134,533 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 272,348 | $ | 192,343 | |||||||||
CONDENSED STATEMENTS OF OPERATIONS | ' | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
OPERATING INCOME | |||||||||||||
(Increase) decrease in fair value of U.S. Treasury warrant | $ | (1,025 | ) | $ | (285 | ) | $ | 1,137 | |||||
Other income | 63 | 70 | 64 | ||||||||||
Total Operating Income | (962 | ) | (215 | ) | 1,201 | ||||||||
OPERATING EXPENSES | |||||||||||||
Interest expense | 2,317 | 2,779 | 2,729 | ||||||||||
Administrative and other expenses | 682 | 683 | 958 | ||||||||||
Total Operating Expenses | 2,999 | 3,462 | 3,687 | ||||||||||
Loss Before Income Tax and Equity in Undistributed | |||||||||||||
Net Income (Loss) of Subsidiaries | (3,961 | ) | (3,677 | ) | (2,486 | ) | |||||||
Income tax expense (benefit) | (9,053 | ) | - | 2 | |||||||||
Income (Loss) Before Equity in Undistributed Net | |||||||||||||
Income (Loss) of Subsidiaries | 5,092 | (3,677 | ) | (2,488 | ) | ||||||||
Equity in undistributed net income (loss) of subsidiaries | 72,417 | 29,875 | (17,712 | ) | |||||||||
Net Income (Loss) | $ | 77,509 | $ | 26,198 | $ | (20,200 | ) | ||||||
CONDENSED STATEMENTS OF CASH FLOWS | ' | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Net Income (Loss) | $ | 77,509 | $ | 26,198 | $ | (20,200 | ) | ||||||
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET | |||||||||||||
CASH USED IN OPERATING ACTIVITIES | |||||||||||||
Deferred income taxes | (8,955 | ) | - | - | |||||||||
Share based compensation | 84 | 184 | 157 | ||||||||||
Depreciation, amortization of intangible assets and premiums, and accretion of discounts on securities and loans | - | - | 1 | ||||||||||
Increase in other assets | 738 | (46 | ) | (92 | ) | ||||||||
Increase (decrease) in other liabilities | (5,858 | ) | 2,945 | (2,404 | ) | ||||||||
Equity in undistributed net (income) loss of subsidiaries operations | (72,417 | ) | (29,875 | ) | 17,712 | ||||||||
Total Adjustments | (86,408 | ) | (26,792 | ) | 15,374 | ||||||||
Net Cash Used in Operating Activities | (8,899 | ) | (594 | ) | (4,826 | ) | |||||||
CASH FLOW FROM INVESTING ACTIVITIES - return of capital from subsidiary | 7,500 | - | - | ||||||||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||||
Proceeds from issuance of common stock | 100,230 | 2,244 | 2,245 | ||||||||||
Redemption of convertible preferred stock and common stock warrant | (81,000 | ) | - | - | |||||||||
Redemption of subordinated debt | (9,452 | ) | - | - | |||||||||
Share based compensation withholding obligation | (513 | ) | - | - | |||||||||
Net Cash From Financing Activities | 9,265 | 2,244 | 2,245 | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 7,866 | 1,650 | (2,581 | ) | |||||||||
Cash and Cash Equivalents at Beginning of Year | 3,788 | 2,138 | 4,719 | ||||||||||
Cash and Cash Equivalents at End of Year | $ | 11,654 | $ | 3,788 | $ | 2,138 | |||||||
BRANCH_SALE_Tables
BRANCH SALE (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
BRANCH SALE [Abstract] | ' | ||||
Schedule of summarizes estimated loans and deposits related branch sale | ' | ||||
The Branch Sale resulted in the transfer of approximately $403.1 million of deposits in exchange for our receipt of a deposit premium of approximately $11.5 million. We also sold approximately $48.0 million of loans at a discount of 1.75% and premises and equipment totaling approximately $8.1 million. The Branch Sale also resulted in our transfer of $336.1 million of cash to the purchaser. We recorded a net gain on the Branch Sale of approximately $5.4 million. This gain is net of an allocation of $2.6 million of existing core deposit intangibles, a $2.5 million loss on the sale of premises and equipment, a $0.2 million loss on the sale of loans and $0.8 million in transaction and other related net costs. | |||||
(In thousands) | |||||
Loans: | |||||
Commercial | $ | 27,083 | |||
Mortgage | 8,074 | ||||
Installment | 12,797 | ||||
Total loans | 47,954 | ||||
Allowance for loan losses | (610 | ) | |||
Net loans | $ | 47,344 | |||
Deposits | |||||
Non-interest bearing | $ | 71,718 | |||
Savings and interest bearing-checking | 217,264 | ||||
Retail time | 114,107 | ||||
Total deposits | $ | 403,089 | |||
ACCOUNTING_POLICIES_Details
ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee | |||
Payments | |||
ACCOUNTING POLICIES [Abstract] | ' | ' | ' |
Percentage of loan portfolio secured by real estate (in hundredths) | 75.40% | ' | ' |
Mortgage Loan Servicing Rights [Abstract] | ' | ' | ' |
Mortgage loan servicing fees | $4.30 | $4.40 | $4.40 |
Loan Revenue Recognition [Abstract] | ' | ' | ' |
Number of past due days for commercial loan, installment loans and payment plan receivables | '90 days | ' | ' |
Number of consecutive payments for mortgage loans misses | 4 | ' | ' |
Bank Owned Life Insurance [Abstract] | ' | ' | ' |
Salaried employees | 270 | ' | ' |
Income Taxes [Abstract] | ' | ' | ' |
Percentage of largest amount of tax benefit (in hundredths) | 50.00% | ' | ' |
Dividend Reinvestment Plan [Member] | ' | ' | ' |
Stock Reserved [Line Items] | ' | ' | ' |
Common stock reserved for issuance (in shares) | 0.1 | ' | ' |
Long-Term Incentive Plans [Member] | ' | ' | ' |
Stock Reserved [Line Items] | ' | ' | ' |
Common stock reserved for issuance (in shares) | 0.5 | ' | ' |
Minimum [Member] | ' | ' | ' |
Other Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful lives | '10 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Other Intangible Assets [Line Items] | ' | ' | ' |
Estimated useful lives | '15 years | ' | ' |
Building [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciated over a period | '39 years | ' | ' |
Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciated over a period | '7 years | ' | ' |
RESTRICTIONS_ON_CASH_AND_DUE_F1
RESTRICTIONS ON CASH AND DUE FROM BANKS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
RESTRICTIONS ON CASH AND DUE FROM BANKS [Abstract] | ' | ' |
Average reserve balances maintained | $24.50 | $26.10 |
Reserve balances related to visa debit card operations and merchant payment processing operations | $2.40 | $2.50 |
SECURITIES_Details
SECURITIES (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Security | ||||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | $467,406,000 | $208,929,000 | ' | |||
Unrealized gains | 2,048,000 | 2,070,000 | ' | |||
Unrealized losses | 6,973,000 | 2,586,000 | ' | |||
Fair Value | 462,481,000 | 208,413,000 | ' | |||
Accumulated other comprehensive loss | 200,000 | 300,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 240,287,000 | 15,481,000 | ' | |||
Less Than Twelve Months, Unrealized Losses | 5,745,000 | 92,000 | ' | |||
Twelve Months or More, Fair Value | 11,832,000 | 11,738,000 | ' | |||
Twelve Months or More, Unrealized Losses | 1,228,000 | 2,494,000 | ' | |||
Total, Fair value | 252,119,000 | 27,219,000 | ' | |||
Total, Unrealized Losses | 6,973,000 | 2,586,000 | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Fair value | 4,231,000 | ' | ' | |||
Amortized cost | 4,486,000 | ' | ' | |||
Non-credit unrealized loss | 367,000 | ' | ' | |||
Unrealized gain | 112,000 | ' | ' | |||
Cumulative credit related OTTI | 1,585,000 | ' | ' | |||
OTTI changes recorded in earnings | 26,000 | 339,000 | 760,000 | |||
Projected period of decline in loan defaults | '3 years | ' | ' | |||
Expected loss severity period | '12 months | ' | ' | |||
The number of private label mortgage backed securities currently below investment grade with OTTI | 3 | ' | ' | |||
Number of municipal securities with fair value less than amortized cost | 149 | ' | ' | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ' | ' | ' | |||
Maturing within one year | 14,942,000 | ' | ' | |||
Maturing after one year but within five years | 84,253,000 | ' | ' | |||
Maturing after five years but within ten years | 32,864,000 | ' | ' | |||
Maturing after ten years | 80,035,000 | ' | ' | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 212,094,000 | ' | ' | |||
U.S. agency residential mortgage-backed | 202,649,000 | ' | ' | |||
Private label residential mortgage-backed | 7,294,000 | ' | ' | |||
Other asset backed | 45,369,000 | ' | ' | |||
Total | 467,406,000 | ' | ' | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ' | ' | ' | |||
Maturing within one year | 14,952,000 | ' | ' | |||
Maturing after one year but within five years | 84,306,000 | ' | ' | |||
Maturing after five years but within ten years | 32,478,000 | ' | ' | |||
Maturing after ten years | 75,312,000 | ' | ' | |||
Available-for-sale Securities fair value total | 207,048,000 | ' | ' | |||
U.S. agency residential mortgage backed | 203,460,000 | ' | ' | |||
Private label residential mortgage-backed | 6,788,000 | ' | ' | |||
Other asset backed | 45,185,000 | ' | ' | |||
Total | 462,481,000 | ' | ' | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' | ' | ' | |||
Balance at beginning of period | 1,809,000 | 1,470,000 | 710,000 | |||
Additions to credit losses on securities for which no previous OTTI was recognized | 0 | 0 | 425,000 | |||
Increases to credit losses on securities for which OTTI was previously recognized | 26,000 | 339,000 | 335,000 | |||
Balance at end of period | 1,835,000 | 1,809,000 | 1,470,000 | |||
Gain and losses realized on sale of securities available for sale [Abstract] | ' | ' | ' | |||
Proceeds | 2,940,000 | 37,176,000 | 70,322,000 | |||
Realized Gains | 15,000 | 1,193,000 | 279,000 | |||
Realized Losses | 8,000 | [1] | 0 | [1] | 75,000 | [1] |
Securities Disclosures [Abstract] | ' | ' | ' | |||
OTTI changes recorded in earnings | 26,000 | 339,000 | 760,000 | |||
Pledged securities with book value | 10,700,000 | 23,100,000 | ' | |||
Shareholder equity threshold not exceeded by revenue or taxing authority amount (in hundredths) | 10.00% | ' | ' | |||
Trading Securities, Realized Gain (Loss) | 390,000 | 30,000 | 40,000 | |||
U.S. Agency [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 32,106,000 | 30,620,000 | ' | |||
Unrealized gains | 44,000 | 70,000 | ' | |||
Unrealized losses | 342,000 | 23,000 | ' | |||
Fair Value | 31,808,000 | 30,667,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 16,715,000 | 8,097,000 | ' | |||
Less Than Twelve Months, Unrealized Losses | 342,000 | 23,000 | ' | |||
Twelve Months or More, Fair Value | 0 | 0 | ' | |||
Twelve Months or More, Unrealized Losses | 0 | 0 | ' | |||
Total, Fair value | 16,715,000 | 8,097,000 | ' | |||
Total, Unrealized Losses | 342,000 | 23,000 | ' | |||
Number of securities with market fair value less than amortized cost | 8 | ' | ' | |||
U.S. Agency Residential Mortgage-Backed [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 202,649,000 | 126,151,000 | ' | |||
Unrealized gains | 1,343,000 | 1,264,000 | ' | |||
Unrealized losses | 532,000 | 3,000 | ' | |||
Fair Value | 203,460,000 | 127,412,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 78,256,000 | 0 | ' | |||
Less Than Twelve Months, Unrealized Losses | 532,000 | 0 | ' | |||
Twelve Months or More, Fair Value | 0 | 457,000 | ' | |||
Twelve Months or More, Unrealized Losses | 0 | 3,000 | ' | |||
Total, Fair value | 78,256,000 | 457,000 | ' | |||
Total, Unrealized Losses | 532,000 | 3,000 | ' | |||
Number of securities with market fair value less than amortized cost | 14 | ' | ' | |||
Private Label Residential Mortgage-Backed [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 7,294,000 | 9,070,000 | ' | |||
Unrealized gains | 112,000 | 0 | ' | |||
Unrealized losses | 618,000 | 876,000 | ' | |||
Fair Value | 6,788,000 | 8,194,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 407,000 | 0 | ' | |||
Less Than Twelve Months, Unrealized Losses | 6,000 | 0 | ' | |||
Twelve Months or More, Fair Value | 4,602,000 | 8,192,000 | ' | |||
Twelve Months or More, Unrealized Losses | 612,000 | 876,000 | ' | |||
Total, Fair value | 5,009,000 | 8,192,000 | ' | |||
Total, Unrealized Losses | 618,000 | 876,000 | ' | |||
Number of securities with market fair value less than amortized cost | 6 | ' | ' | |||
Number of issues rated as investment grade | '2 | ' | ' | |||
Number of securities rated below investment grade | 2 | ' | ' | |||
Number of securities that are split rated | 2 | ' | ' | |||
Number of bonds with impairment in excess of ten percent | 2 | ' | ' | |||
Percentage of excess impairment on bonds (in hundredths) | 10.00% | ' | ' | |||
Number of bonds with impairment for more than 12 months | 4 | ' | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Number of transactions with fixed rate collateral | 1 | ' | ' | |||
Jumbo [Member] | ' | ' | ' | |||
Mortgage Backed Securities Issued By Private Enterprises [Abstract] | ' | ' | ' | |||
Fair Value | 4,687,000 | 6,041,000 | ' | |||
Net Unrealized Gain (Loss) | -441,000 | -594,000 | ' | |||
Percentage of credit widening (in hundredths) | 69.00% | ' | ' | |||
Alt - A [Member] | ' | ' | ' | |||
Mortgage Backed Securities Issued By Private Enterprises [Abstract] | ' | ' | ' | |||
Fair Value | 2,101,000 | 2,153,000 | ' | |||
Net Unrealized Gain (Loss) | -65,000 | -282,000 | ' | |||
Percentage of credit widening (in hundredths) | 31.00% | ' | ' | |||
Seasoned ARM Transactions [Member] | ' | ' | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Normalized prepayment rate, minimum (in hundredths) | 12.00% | ' | ' | |||
Normalized prepayment rate, maximum (in hundredths) | 16.00% | ' | ' | |||
Senior Security [Member] | ' | ' | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Fair value | 2,453,000 | ' | ' | |||
Amortized cost | 2,820,000 | ' | ' | |||
Non-credit unrealized loss | 367,000 | ' | ' | |||
Unrealized gain | 0 | ' | ' | |||
Cumulative credit related OTTI | 748,000 | ' | ' | |||
OTTI changes recorded in earnings | 26,000 | 247,000 | 213,000 | |||
Securities Disclosures [Abstract] | ' | ' | ' | |||
OTTI changes recorded in earnings | 26,000 | 247,000 | 213,000 | |||
Super Senior Security [Member] | ' | ' | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Fair value | 1,731,000 | ' | ' | |||
Amortized cost | 1,666,000 | ' | ' | |||
Non-credit unrealized loss | 0 | ' | ' | |||
Unrealized gain | 65,000 | ' | ' | |||
Cumulative credit related OTTI | 457,000 | ' | ' | |||
OTTI changes recorded in earnings | 0 | 32,000 | 425,000 | |||
Securities Disclosures [Abstract] | ' | ' | ' | |||
OTTI changes recorded in earnings | 0 | 32,000 | 425,000 | |||
Senior Support Security [Member] | ' | ' | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Fair value | 47,000 | ' | ' | |||
Amortized cost | 0 | ' | ' | |||
Non-credit unrealized loss | 0 | ' | ' | |||
Unrealized gain | 47,000 | ' | ' | |||
Cumulative credit related OTTI | 380,000 | ' | ' | |||
OTTI changes recorded in earnings | 0 | 60,000 | 122,000 | |||
Securities Disclosures [Abstract] | ' | ' | ' | |||
OTTI changes recorded in earnings | 0 | 60,000 | 122,000 | |||
Other Asset-backed [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 45,369,000 | ' | ' | |||
Unrealized gains | 10,000 | ' | ' | |||
Unrealized losses | 194,000 | ' | ' | |||
Fair Value | 45,185,000 | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 33,862,000 | ' | ' | |||
Less Than Twelve Months, Unrealized Losses | 194,000 | ' | ' | |||
Twelve Months or More, Fair Value | 0 | ' | ' | |||
Twelve Months or More, Unrealized Losses | 0 | ' | ' | |||
Total, Fair value | 33,862,000 | ' | ' | |||
Total, Unrealized Losses | 194,000 | ' | ' | |||
Number of securities with market fair value less than amortized cost | 16 | ' | ' | |||
Obligations of States and Political Subdivisions [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 157,966,000 | 38,384,000 | ' | |||
Unrealized gains | 496,000 | 736,000 | ' | |||
Unrealized losses | 4,784,000 | 69,000 | ' | |||
Fair Value | 153,678,000 | 39,051,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 103,942,000 | 7,384,000 | ' | |||
Less Than Twelve Months, Unrealized Losses | 4,645,000 | 69,000 | ' | |||
Twelve Months or More, Fair Value | 4,805,000 | 0 | ' | |||
Twelve Months or More, Unrealized Losses | 139,000 | 0 | ' | |||
Total, Fair value | 108,747,000 | 7,384,000 | ' | |||
Total, Unrealized Losses | 4,784,000 | 69,000 | ' | |||
Trust Preferred [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 2,902,000 | 4,704,000 | ' | |||
Unrealized gains | 0 | 0 | ' | |||
Unrealized losses | 477,000 | 1,615,000 | ' | |||
Fair Value | 2,425,000 | 3,089,000 | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 0 | 0 | ' | |||
Less Than Twelve Months, Unrealized Losses | 0 | 0 | ' | |||
Twelve Months or More, Fair Value | 2,425,000 | 3,089,000 | ' | |||
Twelve Months or More, Unrealized Losses | 477,000 | 1,615,000 | ' | |||
Total, Fair value | 2,425,000 | 3,089,000 | ' | |||
Total, Unrealized Losses | 477,000 | 1,615,000 | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Number of impaired municipal securities rated by major agency | 3 | ' | ' | |||
Non-rated securities, amortized cost | 1,000,000 | ' | ' | |||
Fair value of non-rated trust preferred securities | 800,000 | ' | ' | |||
Trust preferred securities [Abstract] | ' | ' | ' | |||
Number of securities with fair values less than amortized cost | 3 | ' | ' | |||
Rated Issues [Member] | ' | ' | ' | |||
Trust preferred securities [Abstract] | ' | ' | ' | |||
Fair Value | 1,600,000 | 1,581,000 | ' | |||
Net Unrealized Gain (Loss) | -302,000 | -316,000 | ' | |||
Unrated Issues - No OTTI [Member] | ' | ' | ' | |||
Trust preferred securities [Abstract] | ' | ' | ' | |||
Fair Value | 825,000 | 1,508,000 | ' | |||
Net Unrealized Gain (Loss) | -175,000 | -1,299,000 | ' | |||
Corporate [Member] | ' | ' | ' | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | |||
Amortized cost | 19,120,000 | ' | ' | |||
Unrealized gains | 43,000 | ' | ' | |||
Unrealized losses | 26,000 | ' | ' | |||
Fair Value | 19,137,000 | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ' | ' | ' | |||
Less Than Twelve Months, Fair Value | 7,105,000 | ' | ' | |||
Less Than Twelve Months, Unrealized Losses | 26,000 | ' | ' | |||
Twelve Months or More, Fair Value | 0 | ' | ' | |||
Twelve Months or More, Unrealized Losses | 0 | ' | ' | |||
Total, Fair value | 7,105,000 | ' | ' | |||
Total, Unrealized Losses | $26,000 | ' | ' | |||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | ' | ' | ' | |||
Number of corporate securities with fair value less than amortized cost | 6 | ' | ' | |||
[1] | Losses in 2013, 2012 and 2011 exclude $0.03 million, $0.3 million and $0.8 million, respectively of other than temporary impairment. |
LOANS_AND_PAYMENT_PLAN_RECEIVA2
LOANS AND PAYMENT PLAN RECEIVABLES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Loans [Abstract] | ' | ' | ||
Total Loans | $1,374,570,000 | $1,419,139,000 | ||
Net of deferred loan fees | 200,000 | 200,000 | ||
Payment plan receivables | 64,700,000 | 90,800,000 | ||
Unamortized discount | 4,100,000 | 6,200,000 | ||
Effective yields of payment plan receivables (in hundredths) | 15.00% | 15.00% | ||
Residential First Mortgages [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 431,812,000 | [1] | 468,636,000 | [1] |
Residential Home Equity and Other Junior Mortgages [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 113,703,000 | [1] | 121,235,000 | [1] |
Construction and Land Development [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 50,290,000 | [1] | 56,183,000 | [1] |
Other [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 440,348,000 | [1],[2] | 434,336,000 | [1],[2] |
Commercial Loan Portfolio Segment [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 146,954,000 | 132,904,000 | ||
Consumer [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 126,443,000 | 117,077,000 | ||
Payment Plan Receivables [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | 60,638,000 | 84,692,000 | ||
Agricultural [Member] | ' | ' | ||
Loans [Abstract] | ' | ' | ||
Total Loans | $4,382,000 | $4,076,000 | ||
[1] | Includes both residential and non-residential commercial loans secured by real estate. | |||
[2] | Includes loans secured by multi-family residential and non-farm, non-residential property. |
LOANS_AND_PAYMENT_PLAN_RECEIVA3
LOANS AND PAYMENT PLAN RECEIVABLES , Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ' | ' | ' |
Balance at beginning of period | $44,275 | $58,884 | $67,915 |
Additions (deductions) [Abstract] | ' | ' | ' |
Provision for loan losses | -3,988 | 6,887 | 27,946 |
Recoveries credited to allowance | 8,270 | 6,522 | 4,747 |
Loans charged against the allowance | -16,232 | -27,408 | -41,724 |
Reclassification to loans held for sale | ' | -610 | ' |
Balance at end of period | 32,325 | 44,275 | 58,884 |
Allowance for loan losses [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 15,158 | 21,009 | ' |
Collectively evaluated for impairment | 17,167 | 23,266 | ' |
Total ending allowance balance | 32,325 | 44,275 | ' |
Loans [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 125,713 | 151,167 | ' |
Collectively evaluated for impairment | 1,253,436 | 1,272,801 | ' |
Total loans recorded investment | 1,379,149 | 1,423,968 | ' |
Accrued interest included in recorded investment | 4,579 | 4,829 | ' |
Total loans | 1,374,570 | 1,419,139 | ' |
Commercial [Member] | ' | ' | ' |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 11,402 | 18,183 | 23,836 |
Additions (deductions) [Abstract] | ' | ' | ' |
Provision for loan losses | -2,336 | 2,351 | 12,988 |
Recoveries credited to allowance | 5,119 | 3,610 | 1,850 |
Loans charged against the allowance | -7,358 | -12,588 | -20,491 |
Reclassification to loans held for sale | ' | -154 | ' |
Balance at end of period | 6,827 | 11,402 | 18,183 |
Allowance for loan losses [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 3,878 | 6,558 | ' |
Collectively evaluated for impairment | 2,949 | 4,844 | ' |
Total ending allowance balance | 6,827 | 11,402 | ' |
Loans [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 40,623 | 55,634 | ' |
Collectively evaluated for impairment | 596,235 | 563,316 | ' |
Total loans recorded investment | 636,858 | 618,950 | ' |
Accrued interest included in recorded investment | 1,624 | 1,692 | ' |
Total loans | 635,234 | 617,258 | ' |
Mortgage [Member] | ' | ' | ' |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 21,447 | 22,885 | 22,642 |
Additions (deductions) [Abstract] | ' | ' | ' |
Provision for loan losses | 71 | 7,778 | 14,410 |
Recoveries credited to allowance | 1,996 | 1,581 | 1,441 |
Loans charged against the allowance | -6,319 | -10,741 | -15,608 |
Reclassification to loans held for sale | ' | -56 | ' |
Balance at end of period | 17,195 | 21,447 | 22,885 |
Allowance for loan losses [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 10,488 | 12,869 | ' |
Collectively evaluated for impairment | 6,707 | 8,578 | ' |
Total ending allowance balance | 17,195 | 21,447 | ' |
Loans [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 78,022 | 88,028 | ' |
Collectively evaluated for impairment | 410,887 | 441,703 | ' |
Total loans recorded investment | 488,909 | 529,731 | ' |
Accrued interest included in recorded investment | 2,276 | 2,391 | ' |
Total loans | 486,633 | 527,340 | ' |
Installment [Member] | ' | ' | ' |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 3,378 | 6,146 | 6,769 |
Additions (deductions) [Abstract] | ' | ' | ' |
Provision for loan losses | 314 | 15 | 3,365 |
Recoveries credited to allowance | 1,074 | 1,311 | 1,451 |
Loans charged against the allowance | -2,520 | -4,009 | -5,439 |
Reclassification to loans held for sale | ' | -85 | ' |
Balance at end of period | 2,246 | 3,378 | 6,146 |
Allowance for loan losses [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 792 | 1,582 | ' |
Collectively evaluated for impairment | 1,454 | 1,796 | ' |
Total ending allowance balance | 2,246 | 3,378 | ' |
Loans [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 7,068 | 7,505 | ' |
Collectively evaluated for impairment | 185,676 | 183,090 | ' |
Total loans recorded investment | 192,744 | 190,595 | ' |
Accrued interest included in recorded investment | 679 | 746 | ' |
Total loans | 192,065 | 189,849 | ' |
Payment Plan Receivables [Member] | ' | ' | ' |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 144 | 197 | 389 |
Additions (deductions) [Abstract] | ' | ' | ' |
Provision for loan losses | -93 | -3 | -11 |
Recoveries credited to allowance | 81 | 20 | 5 |
Loans charged against the allowance | -35 | -70 | -186 |
Reclassification to loans held for sale | ' | 0 | ' |
Balance at end of period | 97 | 144 | 197 |
Allowance for loan losses [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 0 | 0 | ' |
Collectively evaluated for impairment | 97 | 144 | ' |
Total ending allowance balance | 97 | 144 | ' |
Loans [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 0 | 0 | ' |
Collectively evaluated for impairment | 60,638 | 84,692 | ' |
Total loans recorded investment | 60,638 | 84,692 | ' |
Accrued interest included in recorded investment | 0 | 0 | ' |
Total loans | 60,638 | 84,692 | ' |
Unallocated [Member] | ' | ' | ' |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ' | ' | ' |
Balance at beginning of period | 7,904 | 11,473 | 14,279 |
Additions (deductions) [Abstract] | ' | ' | ' |
Provision for loan losses | -1,944 | -3,254 | -2,806 |
Recoveries credited to allowance | 0 | 0 | 0 |
Loans charged against the allowance | 0 | 0 | 0 |
Reclassification to loans held for sale | ' | -315 | ' |
Balance at end of period | 5,960 | 7,904 | 11,473 |
Allowance for loan losses [Abstract] | ' | ' | ' |
Individually evaluated for impairment | 0 | 0 | ' |
Collectively evaluated for impairment | 5,960 | 7,904 | ' |
Total ending allowance balance | $5,960 | $7,904 | ' |
LOANS_AND_PAYMENT_PLAN_RECEIVA4
LOANS AND PAYMENT PLAN RECEIVABLES, Receivables Past Due (Details) (USD $) | 12 Months Ended | 3 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 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 | |
Total Recorded Investment [Member] | Total Recorded Investment [Member] | Accrued Interest Included in Recorded Investment [Member] | Accrued Interest Included in Recorded Investment [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Commercial [Member] | Mortgage [Member] | Mortgage [Member] | Mortgage [Member] | Mortgage [Member] | Mortgage [Member] | Mortgage [Member] | Mortgage [Member] | Mortgage [Member] | Installment [Member] | Installment [Member] | Installment [Member] | Installment [Member] | Installment [Member] | Installment [Member] | Installment [Member] | Installment [Member] | Payment Plan Receivables [Member] | Payment Plan Receivables [Member] | Payment Plan Receivables [Member] | Payment Plan Receivables [Member] | Payment Plan Receivables [Member] | Payment Plan Receivables [Member] | ||||
Income Producing - Real Estate [Member] | Income Producing - Real Estate [Member] | Income Producing - Real Estate [Member] | Land, Land Development and Construction Real Estate [Member] | Land, Land Development and Construction Real Estate [Member] | Land, Land Development and Construction Real Estate [Member] | Commercial and Industrial [Member] | Commercial and Industrial [Member] | Commercial and Industrial [Member] | 1-4 Family [Member] | 1-4 Family [Member] | Resort Lending [Member] | Resort Lending [Member] | Home Equity - 1st Lien [Member] | Home Equity - 1st Lien [Member] | Home Equity - 2nd Lien [Member] | Home Equity - 2nd Lien [Member] | Home Equity - 1st Lien [Member] | Home Equity - 1st Lien [Member] | Home Equity - 2nd Lien [Member] | Home Equity - 2nd Lien [Member] | Loans Not Secured By Real Estate [Member] | Loans Not Secured By Real Estate [Member] | Others 2 [Member] | Others 2 [Member] | Full Refund [Member] | Full Refund [Member] | Partial Refund [Member] | Partial Refund [Member] | Others [Member] | Others [Member] | |||||||||
Non performing loans [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-accrual loans | $17,905,000 | $32,929,000 | ' | $17,905,000 | $32,929,000 | $0 | $0 | ' | ' | $1,899,000 | $5,611,000 | ' | $1,036,000 | $4,062,000 | ' | $2,434,000 | $5,080,000 | $6,594,000 | $9,654,000 | $2,668,000 | $4,861,000 | $415,000 | $529,000 | $689,000 | $685,000 | $938,000 | $1,278,000 | $571,000 | $675,000 | $638,000 | $390,000 | $0 | $0 | $20,000 | $57,000 | $3,000 | $38,000 | $0 | $9,000 |
Loans 90 days or more past due and still accruing interest | 0 | 7,000 | ' | 0 | 7,000 | 0 | 0 | ' | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | 0 | 7,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Non-performing Loans | 17,905,000 | 32,936,000 | ' | 17,905,000 | 32,936,000 | 0 | 0 | ' | ' | 1,899,000 | 5,611,000 | ' | 1,036,000 | 4,062,000 | ' | 2,434,000 | 5,080,000 | 6,594,000 | 9,661,000 | 2,668,000 | 4,861,000 | 415,000 | 529,000 | 689,000 | 685,000 | 938,000 | 1,278,000 | 571,000 | 675,000 | 638,000 | 390,000 | 0 | 0 | 20,000 | 57,000 | 3,000 | 38,000 | 0 | 9,000 |
Accrued Interest | 1,200,000 | 2,300,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Income | 100,000 | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non performing loans by class [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
90+ and Still Accruing | 0 | 7,000 | ' | 0 | 7,000 | 0 | 0 | ' | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | 0 | 7,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Non-Accrual | 17,905,000 | 32,929,000 | ' | 17,905,000 | 32,929,000 | 0 | 0 | ' | ' | 1,899,000 | 5,611,000 | ' | 1,036,000 | 4,062,000 | ' | 2,434,000 | 5,080,000 | 6,594,000 | 9,654,000 | 2,668,000 | 4,861,000 | 415,000 | 529,000 | 689,000 | 685,000 | 938,000 | 1,278,000 | 571,000 | 675,000 | 638,000 | 390,000 | 0 | 0 | 20,000 | 57,000 | 3,000 | 38,000 | 0 | 9,000 |
Total Non-performing Loans | 17,905,000 | 32,936,000 | ' | 17,905,000 | 32,936,000 | 0 | 0 | ' | ' | 1,899,000 | 5,611,000 | ' | 1,036,000 | 4,062,000 | ' | 2,434,000 | 5,080,000 | 6,594,000 | 9,661,000 | 2,668,000 | 4,861,000 | 415,000 | 529,000 | 689,000 | 685,000 | 938,000 | 1,278,000 | 571,000 | 675,000 | 638,000 | 390,000 | 0 | 0 | 20,000 | 57,000 | 3,000 | 38,000 | 0 | 9,000 |
Aging analysis of loans by class [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Past Due 30-59 days | ' | ' | ' | 11,857,000 | 16,980,000 | 100,000 | 146,000 | ' | ' | 1,014,000 | 3,734,000 | ' | 781,000 | 336,000 | ' | 1,155,000 | 2,522,000 | 3,750,000 | 4,429,000 | 698,000 | 748,000 | 172,000 | 453,000 | 663,000 | 442,000 | 557,000 | 599,000 | 536,000 | 430,000 | 833,000 | 899,000 | 22,000 | 24,000 | 1,364,000 | 2,249,000 | 190,000 | 112,000 | 122,000 | 3,000 |
Loans Past Due 60 to 89 days | ' | ' | ' | 3,689,000 | 3,971,000 | 26,000 | 43,000 | ' | ' | 428,000 | 609,000 | ' | 129,000 | 0 | ' | 1,665,000 | 654,000 | 224,000 | 1,115,000 | 234,000 | 370,000 | 0 | 51,000 | 73,000 | 32,000 | 134,000 | 140,000 | 136,000 | 125,000 | 281,000 | 259,000 | 12,000 | 12,000 | 349,000 | 552,000 | 20,000 | 46,000 | 4,000 | 6,000 |
Loans Past Due 90+ days | ' | ' | ' | 13,988,000 | 24,098,000 | 0 | 0 | ' | ' | 878,000 | 2,826,000 | ' | 256,000 | 1,176,000 | ' | 318,000 | 1,913,000 | 6,594,000 | 9,661,000 | 2,668,000 | 4,861,000 | 415,000 | 529,000 | 689,000 | 685,000 | 938,000 | 1,278,000 | 571,000 | 675,000 | 638,000 | 390,000 | 0 | 0 | 20,000 | 57,000 | 3,000 | 38,000 | 0 | 9,000 |
Total | ' | ' | ' | 29,534,000 | 45,049,000 | 126,000 | 189,000 | ' | ' | 2,320,000 | 7,169,000 | ' | 1,166,000 | 1,512,000 | ' | 3,138,000 | 5,089,000 | 10,568,000 | 15,205,000 | 3,600,000 | 5,979,000 | 587,000 | 1,033,000 | 1,425,000 | 1,159,000 | 1,629,000 | 2,017,000 | 1,243,000 | 1,230,000 | 1,752,000 | 1,548,000 | 34,000 | 36,000 | 1,733,000 | 2,858,000 | 213,000 | 196,000 | 126,000 | 18,000 |
Loans not Past Due | ' | ' | ' | 1,349,615,000 | 1,378,919,000 | 4,453,000 | 4,640,000 | ' | ' | 249,313,000 | 215,623,000 | ' | 30,670,000 | 41,750,000 | ' | 350,251,000 | 347,807,000 | 270,855,000 | 279,132,000 | 142,356,000 | 164,414,000 | 18,214,000 | 18,003,000 | 41,304,000 | 44,806,000 | 25,513,000 | 30,368,000 | 36,701,000 | 38,956,000 | 123,295,000 | 113,751,000 | 2,577,000 | 2,689,000 | 46,344,000 | 77,335,000 | 4,840,000 | 4,119,000 | 7,382,000 | 166,000 |
Total Loans | 1,374,570,000 | 1,419,139,000 | ' | 1,379,149,000 | 1,423,968,000 | 4,579,000 | 4,829,000 | ' | ' | 251,633,000 | 222,792,000 | ' | 31,836,000 | 43,262,000 | ' | 353,389,000 | 352,896,000 | 281,423,000 | 294,337,000 | 145,956,000 | 170,393,000 | 18,801,000 | 19,036,000 | 42,729,000 | 45,965,000 | 27,142,000 | 32,385,000 | 37,944,000 | 40,186,000 | 125,047,000 | 115,299,000 | 2,611,000 | 2,725,000 | 48,077,000 | 80,193,000 | 5,053,000 | 4,315,000 | 7,508,000 | 184,000 |
Sale of certain commercial watch, substandard and Non-performing loans [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Watch, substandard and non-performing loans sold, book balance | ' | ' | ' | ' | ' | ' | ' | $8,601,000 | $4,570,000 | ' | ' | $401,000 | ' | ' | $3,630,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_AND_PAYMENT_PLAN_RECEIVA5
LOANS AND PAYMENT PLAN RECEIVABLES, Impaired Financing Receivables (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Impaired loans [Abstract] | ' | ' | ' | |||
TDR | $13,006 | $14,435 | ' | |||
Non - TDR | 334 | 418 | ' | |||
TDR - allowance based on collateral | 10,085 | 16,231 | ' | |||
TDR's allowance based on present value cash flow | 101,131 | 112,997 | ' | |||
Non - TDR - allowance based on collateral | 688 | 6,580 | ' | |||
Non - TDR - allowance based on present value cash flow | 0 | 0 | ' | |||
Total impaired loans | 125,244 | 150,661 | ' | |||
Amount of allowance for loan losses allocated [Abstract] | ' | ' | ' | |||
TDR - allowance based on collateral | 3,127 | 5,060 | ' | |||
TDR - allowance based on present value cash flow | 11,777 | 14,462 | ' | |||
Non - TDR - allowance based on collateral | 254 | 1,487 | ' | |||
Non - TDR - allowance based on present value cash flow | 0 | 0 | ' | |||
Total amount of allowance for loan losses allocated | 15,158 | 21,009 | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 13,380 | [1] | 14,900 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 14,653 | [1] | 15,756 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 112,333 | [1] | 136,267 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 118,328 | [1] | 150,166 | [1] | ' | |
Related Allowance | 15,158 | [1] | 21,009 | [1] | ' | |
Recorded Investment | 125,713 | [1] | 151,167 | [1] | ' | |
Unpaid Principal Balance | 132,981 | [1] | 165,922 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 16,800 | [2] | 14,193 | [2] | 11,440 | [2] |
Interest Income Recognized, with No Related Allowance | 1,020 | [2] | 802 | [2] | 497 | [2] |
Average Recorded Investment, with Related Allowance | 122,200 | [2] | 145,246 | [2] | 144,019 | [2] |
Interest Income Recognized, with Related Allowance | 4,846 | [2] | 5,189 | [2] | 4,776 | [2] |
Average Recorded Investment | 139,000 | [2] | 159,439 | [2] | 155,459 | [2] |
Interest Income Recognized | 5,866 | [2] | 5,991 | [2] | 5,273 | [2] |
Accrued Interest Included in Recorded Investment [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment | 469 | [1] | 506 | [1] | ' | |
Commercial [Member] | Income Producing - Real Estate [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 7,042 | [1] | 4,050 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 7,178 | [1] | 4,672 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 14,538 | [1] | 20,628 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 15,631 | [1] | 24,250 | [1] | ' | |
Related Allowance | 1,161 | [1] | 1,822 | [1] | ' | |
Recorded Investment | 21,580 | [1] | 24,678 | [1] | ' | |
Unpaid Principal Balance | 22,809 | [1] | 28,922 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 5,765 | [2] | 2,981 | [2] | 3,170 | [2] |
Interest Income Recognized, with No Related Allowance | 340 | [2] | 166 | [2] | 170 | [2] |
Average Recorded Investment, with Related Allowance | 18,164 | [2] | 23,508 | [2] | 18,812 | [2] |
Interest Income Recognized, with Related Allowance | 587 | [2] | 571 | [2] | 117 | [2] |
Average Recorded Investment | 23,929 | [2] | 26,489 | [2] | 21,982 | [2] |
Interest Income Recognized | 927 | [2] | 737 | [2] | 287 | [2] |
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 2,185 | [1] | 3,304 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 3,217 | [1] | 3,294 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 3,366 | [1] | 8,808 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 4,130 | [1] | 11,971 | [1] | ' | |
Related Allowance | 686 | [1] | 1,986 | [1] | ' | |
Recorded Investment | 5,551 | [1] | 12,112 | [1] | ' | |
Unpaid Principal Balance | 7,347 | [1] | 15,265 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 3,092 | [2] | 2,549 | [2] | 613 | [2] |
Interest Income Recognized, with No Related Allowance | 240 | [2] | 150 | [2] | 35 | [2] |
Average Recorded Investment, with Related Allowance | 6,186 | [2] | 10,305 | [2] | 9,828 | [2] |
Interest Income Recognized, with Related Allowance | 149 | [2] | 183 | [2] | 114 | [2] |
Average Recorded Investment | 9,278 | [2] | 12,854 | [2] | 10,441 | [2] |
Interest Income Recognized | 389 | [2] | 333 | [2] | 149 | [2] |
Commercial [Member] | Commercial and Industrial [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 4,110 | [1] | 2,611 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 4,087 | [1] | 2,592 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 9,382 | [1] | 16,233 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 9,529 | [1] | 18,564 | [1] | ' | |
Related Allowance | 2,031 | [1] | 2,750 | [1] | ' | |
Recorded Investment | 13,492 | [1] | 18,844 | [1] | ' | |
Unpaid Principal Balance | 13,616 | [1] | 21,156 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 3,980 | [2] | 3,526 | [2] | 2,874 | [2] |
Interest Income Recognized, with No Related Allowance | 226 | [2] | 246 | [2] | 70 | [2] |
Average Recorded Investment, with Related Allowance | 11,795 | [2] | 17,828 | [2] | 11,501 | [2] |
Interest Income Recognized, with Related Allowance | 457 | [2] | 467 | [2] | 352 | [2] |
Average Recorded Investment | 15,775 | [2] | 21,354 | [2] | 14,375 | [2] |
Interest Income Recognized | 683 | [2] | 713 | [2] | 422 | [2] |
Mortgage [Member] | 1-4 Family [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 8 | [1] | 0 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 8 | [1] | 0 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 57,612 | [1] | 64,160 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 60,768 | [1] | 68,418 | [1] | ' | |
Related Allowance | 7,236 | [1] | 8,518 | [1] | ' | |
Recorded Investment | 57,620 | [1] | 64,160 | [1] | ' | |
Unpaid Principal Balance | 60,776 | [1] | 68,418 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 5 | [2] | 290 | [2] | 35 | [2] |
Interest Income Recognized, with No Related Allowance | 11 | [2] | 0 | [2] | 0 | [2] |
Average Recorded Investment, with Related Allowance | 60,858 | [2] | 66,195 | [2] | 71,342 | [2] |
Interest Income Recognized, with Related Allowance | 2,622 | [2] | 2,852 | [2] | 2,991 | [2] |
Average Recorded Investment | 60,863 | [2] | 66,485 | [2] | 71,377 | [2] |
Interest Income Recognized | 2,633 | [2] | 2,852 | [2] | 2,991 | [2] |
Mortgage [Member] | Resort Lending [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 35 | [1] | 0 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 163 | [1] | 0 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 20,171 | [1] | 23,763 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 20,608 | [1] | 24,160 | [1] | ' | |
Related Allowance | 3,221 | [1] | 4,321 | [1] | ' | |
Recorded Investment | 20,206 | [1] | 23,763 | [1] | ' | |
Unpaid Principal Balance | 20,771 | [1] | 24,160 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 28 | [2] | 222 | [2] | 166 | [2] |
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | [2] | 0 | [2] |
Average Recorded Investment, with Related Allowance | 21,708 | [2] | 24,286 | [2] | 29,335 | [2] |
Interest Income Recognized, with Related Allowance | 836 | [2] | 1,000 | [2] | 1,064 | [2] |
Average Recorded Investment | 21,736 | [2] | 24,508 | [2] | 29,501 | [2] |
Interest Income Recognized | 836 | [2] | 1,000 | [2] | 1,064 | [2] |
Mortgage [Member] | Home Equity - 1st Lien [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 0 | [1] | 0 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 154 | [1] | 62 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 164 | [1] | 77 | [1] | ' | |
Related Allowance | 11 | [1] | 30 | [1] | ' | |
Recorded Investment | 154 | [1] | 62 | [1] | ' | |
Unpaid Principal Balance | 164 | [1] | 77 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | [2] | 0 | [2] |
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | [2] | 0 | [2] |
Average Recorded Investment, with Related Allowance | 136 | [2] | 65 | [2] | 32 | [2] |
Interest Income Recognized, with Related Allowance | 4 | [2] | 2 | [2] | 2 | [2] |
Average Recorded Investment | 136 | [2] | 65 | [2] | 32 | [2] |
Interest Income Recognized | 4 | [2] | 2 | [2] | 2 | [2] |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 0 | [1] | 0 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 42 | [1] | 43 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 118 | [1] | 118 | [1] | ' | |
Related Allowance | 20 | [1] | 0 | [1] | ' | |
Recorded Investment | 42 | [1] | 43 | [1] | ' | |
Unpaid Principal Balance | 118 | [1] | 118 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | [2] | 0 | [2] |
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | [2] | 0 | [2] |
Average Recorded Investment, with Related Allowance | 42 | [2] | 81 | [2] | 127 | [2] |
Interest Income Recognized, with Related Allowance | 2 | [2] | 3 | [2] | 4 | [2] |
Average Recorded Investment | 42 | [2] | 81 | [2] | 127 | [2] |
Interest Income Recognized | 2 | [2] | 3 | [2] | 4 | [2] |
Installment [Member] | Home Equity - 1st Lien [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 0 | [1] | 2,027 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 0 | [1] | 2,219 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 2,959 | [1] | 1,215 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 3,115 | [1] | 1,240 | [1] | ' | |
Related Allowance | 254 | [1] | 610 | [1] | ' | |
Recorded Investment | 2,959 | [1] | 3,242 | [1] | ' | |
Unpaid Principal Balance | 3,115 | [1] | 3,459 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 1,604 | [2] | 1,961 | [2] | 1,955 | [2] |
Interest Income Recognized, with No Related Allowance | 83 | [2] | 97 | [2] | 96 | [2] |
Average Recorded Investment, with Related Allowance | 1,448 | [2] | 1,432 | [2] | 1,408 | [2] |
Interest Income Recognized, with Related Allowance | 85 | [2] | 50 | [2] | 60 | [2] |
Average Recorded Investment | 3,052 | [2] | 3,393 | [2] | 3,363 | [2] |
Interest Income Recognized | 168 | [2] | 147 | [2] | 156 | [2] |
Installment [Member] | Home Equity - 2nd Lien [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 0 | [1] | 2,278 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 0 | [1] | 2,278 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 3,352 | [1] | 1,161 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 3,347 | [1] | 1,174 | [1] | ' | |
Related Allowance | 462 | [1] | 930 | [1] | ' | |
Recorded Investment | 3,352 | [1] | 3,439 | [1] | ' | |
Unpaid Principal Balance | 3,347 | [1] | 3,452 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 1,841 | [2] | 2,093 | [2] | 2,014 | [2] |
Interest Income Recognized, with No Related Allowance | 96 | [2] | 111 | [2] | 93 | [2] |
Average Recorded Investment, with Related Allowance | 1,546 | [2] | 1,325 | [2] | 1,466 | [2] |
Interest Income Recognized, with Related Allowance | 86 | [2] | 51 | [2] | 66 | [2] |
Average Recorded Investment | 3,387 | [2] | 3,418 | [2] | 3,480 | [2] |
Interest Income Recognized | 182 | [2] | 162 | [2] | 159 | [2] |
Installment [Member] | Loans Not Secured By Real Estate [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 0 | [1] | 610 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 0 | [1] | 681 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 741 | [1] | 194 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 902 | [1] | 194 | [1] | ' | |
Related Allowance | 75 | [1] | 42 | [1] | ' | |
Recorded Investment | 741 | [1] | 804 | [1] | ' | |
Unpaid Principal Balance | 902 | [1] | 875 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 470 | [2] | 549 | [2] | 598 | [2] |
Interest Income Recognized, with No Related Allowance | 23 | [2] | 30 | [2] | 31 | [2] |
Average Recorded Investment, with Related Allowance | 314 | [2] | 221 | [2] | 168 | [2] |
Interest Income Recognized, with Related Allowance | 17 | [2] | 10 | [2] | 6 | [2] |
Average Recorded Investment | 784 | [2] | 770 | [2] | 766 | [2] |
Interest Income Recognized | 40 | [2] | 40 | [2] | 37 | [2] |
Installment [Member] | Others 2 [Member] | ' | ' | ' | |||
Impaired Loans by class [Abstract] | ' | ' | ' | |||
Recorded Investment, with No Related Allowance | 0 | [1] | 20 | [1] | ' | |
Unpaid Principal Balance, with No Related Allowance | 0 | [1] | 20 | [1] | ' | |
No Related Allowance | 0 | [1] | 0 | [1] | ' | |
Recorded Investment, with Related Allowance | 16 | [1] | 0 | [1] | ' | |
Unpaid Principal Balance, with Related Allowance | 16 | [1] | 0 | [1] | ' | |
Related Allowance | 1 | [1] | 0 | [1] | ' | |
Recorded Investment | 16 | [1] | 20 | [1] | ' | |
Unpaid Principal Balance | 16 | [1] | 20 | [1] | ' | |
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ' | ' | ' | |||
Average Recorded Investment, with No Related Allowance | 15 | [2] | 22 | [2] | 15 | [2] |
Interest Income Recognized, with No Related Allowance | 1 | [2] | 2 | [2] | 2 | [2] |
Average Recorded Investment, with Related Allowance | 3 | [2] | 0 | [2] | 0 | [2] |
Interest Income Recognized, with Related Allowance | 1 | [2] | 0 | [2] | 0 | [2] |
Average Recorded Investment | 18 | [2] | 22 | [2] | 15 | [2] |
Interest Income Recognized | $2 | [2] | $2 | [2] | $2 | [2] |
[1] | There were no impaired payment plan receivables at December 31, 2013 or 2012. | |||||
[2] | There were no impaired payment plan receivables during the years ending December 31, 2013, 2012 and 2011. |
LOANS_AND_PAYMENT_PLAN_RECEIVA6
LOANS AND PAYMENT PLAN RECEIVABLES, Troubled Debt Restructurings (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Contract | Contract | Contract | |||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | $124,222,000 | $143,663,000 | ' | ||
Troubled debt restructuring, specific reserve | 14,900,000 | 19,500,000 | ' | ||
Additional amounts committed to lend as troubled debt restructurings | 170,000 | 20,000 | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 102 | 232 | 298 | ||
Pre-modification recorded balance | 11,955,000 | 42,655,000 | 63,581,000 | ||
Post-modification recorded balance | 10,368,000 | 39,037,000 | 55,620,000 | ||
Increase in allowance for loan losses | -300,000 | 1,600,000 | 3,400,000 | ||
Charge offs due to troubled debt restructurings | 500,000 | 1,000,000 | 4,700,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 9 | 16 | 35 | ||
Recorded Balance | 1,486,000 | 2,346,000 | 9,954,000 | ||
Past due period for modified loans | '90 days | ' | ' | ||
Increase (decrease) in allowance for loan loss due to TDRs that subsequently defaulted | 0 | 300,000 | 1,900,000 | ||
Charge-offs on TDRs that subsequently defaulted | 200,000 | 800,000 | 1,800,000 | ||
Minimum [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Modification of stated interest rate of loans, range of period | '9 months | ' | ' | ||
Modifications involving extension of maturity date, period range | '1 month | ' | ' | ||
Maximum [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Modification of stated interest rate of loans, range of period | '60 months | ' | ' | ||
Modifications involving extension of maturity date, period range | '60 months | ' | ' | ||
Maximum in Certain Circumstances [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Modification of stated interest rate of loans, range of period | '480 months | ' | ' | ||
Modifications involving extension of maturity date, period range | '193 months | ' | ' | ||
Commercial [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 39,481,000 | 48,509,000 | ' | ||
Commercial [Member] | Income Producing - Real Estate [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 6 | 20 | 42 | ||
Pre-modification recorded balance | 4,798,000 | 9,464,000 | 21,061,000 | ||
Post-modification recorded balance | 3,869,000 | 8,568,000 | 17,679,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 2 | 7 | ||
Recorded Balance | 693,000 | 827,000 | 3,604,000 | ||
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 9 | 20 | ||
Pre-modification recorded balance | 16,000 | 4,800,000 | 10,801,000 | ||
Post-modification recorded balance | 0 | 4,858,000 | 7,464,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 0 | 4 | ||
Recorded Balance | 334,000 | 0 | 3,036,000 | ||
Commercial [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 23 | 50 | 64 | ||
Pre-modification recorded balance | 2,522,000 | 9,951,000 | 11,133,000 | ||
Post-modification recorded balance | 1,901,000 | 7,905,000 | 10,649,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 2 | 5 | 2 | ||
Recorded Balance | 143,000 | 230,000 | 492,000 | ||
Mortgage [Member] | Family 1 4 [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 20 | 66 | 73 | ||
Pre-modification recorded balance | 1,968,000 | 8,900,000 | 9,933,000 | ||
Post-modification recorded balance | 1,995,000 | 8,488,000 | 9,423,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 2 | 10 | ||
Recorded Balance | 106,000 | 148,000 | 1,191,000 | ||
Mortgage [Member] | Resort Lending [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 5 | 31 | 33 | ||
Pre-modification recorded balance | 1,240,000 | 7,750,000 | 8,893,000 | ||
Post-modification recorded balance | 1,231,000 | 7,514,000 | 8,749,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 4 | 6 | ||
Recorded Balance | 156,000 | 887,000 | 1,311,000 | ||
Mortgage [Member] | Home Equity - 1st Lien [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 1 | 2 | ||
Pre-modification recorded balance | 95,000 | 15,000 | 69,000 | ||
Post-modification recorded balance | 97,000 | 0 | 64,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 0 | 0 | 0 | ||
Recorded Balance | 0 | 0 | 0 | ||
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 0 | 0 | 1 | ||
Pre-modification recorded balance | 0 | 0 | 23,000 | ||
Post-modification recorded balance | 0 | 0 | 18,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 0 | 0 | 0 | ||
Recorded Balance | 0 | 0 | 0 | ||
Installment [Member] | Home Equity - 1st Lien [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 25 | 18 | 21 | ||
Pre-modification recorded balance | 659,000 | 666,000 | 678,000 | ||
Post-modification recorded balance | 657,000 | 632,000 | 618,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 2 | 2 | 1 | ||
Recorded Balance | 32,000 | 234,000 | 19,000 | ||
Installment [Member] | Home Equity - 2nd Lien [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 16 | 24 | 16 | ||
Pre-modification recorded balance | 508,000 | 784,000 | 535,000 | ||
Post-modification recorded balance | 508,000 | 768,000 | 514,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 1 | 1 | 5 | ||
Recorded Balance | 22,000 | 20,000 | 301,000 | ||
Installment [Member] | Loans Not Secured By Real Estate [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 5 | 13 | 26 | ||
Pre-modification recorded balance | 149,000 | 325,000 | 455,000 | ||
Post-modification recorded balance | 110,000 | 304,000 | 442,000 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 0 | 0 | 0 | ||
Recorded Balance | 0 | 0 | 0 | ||
Installment [Member] | Others 2 [Member] | ' | ' | ' | ||
Loans classified as troubled debt restructurings [Abstract] | ' | ' | ' | ||
Number of contracts | 0 | 0 | 0 | ||
Pre-modification recorded balance | 0 | 0 | 0 | ||
Post-modification recorded balance | 0 | 0 | 0 | ||
TDR that subsequently defaulted [Abstract] | ' | ' | ' | ||
Number of contracts | 0 | 0 | 0 | ||
Recorded Balance | 0 | 0 | 0 | ||
Retail [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 84,741,000 | 95,154,000 | ' | ||
Performing TDR's [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 114,887,000 | 126,730,000 | ' | ||
Performing TDR's [Member] | Commercial [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 35,134,000 | 40,753,000 | ' | ||
Performing TDR's [Member] | Retail [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 79,753,000 | 85,977,000 | ' | ||
Non-performing TDR's [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 9,335,000 | [1],[2] | 16,933,000 | [1],[2] | ' |
Non-performing TDR's [Member] | Commercial [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | 4,347,000 | [2] | 7,756,000 | [2] | ' |
Non-performing TDR's [Member] | Retail [Member] | ' | ' | ' | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ||
Troubled debt restructuring | $4,988,000 | [1],[2] | $9,177,000 | [1],[2] | ' |
[1] | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. | ||||
[2] | Included in non-performing loans table. |
LOANS_AND_PAYMENT_PLAN_RECEIVA7
LOANS AND PAYMENT PLAN RECEIVABLES, Loan Ratings by Loan Class, Commercial Segment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Subsidiary's outstanding payment plan insured by third party (in hundredths) | 79.30% | ' | ||
Subsidiary's payment outstanding payment plan 2, insured by third party (in hundredths) | 8.30% | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
Accrued interest included in total | $4,579 | $4,829 | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 48,077 | 80,193 | ||
Payment Plan Receivable, Partial Refund | 5,053 | 4,315 | ||
Payment Plan Receivable, Other | 7,508 | 184 | ||
Total | 60,638 | 84,692 | ||
Commercial [Member] | ' | ' | ||
Loan ratings by loan class, commercial segment [Abstract] | ' | ' | ||
Non-watch 1-6 | 571,794 | 523,880 | ||
Watch 7-8 | 49,014 | 57,507 | ||
Substandard Accrual 9 | 10,681 | 22,810 | ||
Non Accrual 10-11 | 5,369 | 14,753 | ||
Total | 636,858 | 618,950 | ||
Commercial [Member] | Income Producing - Real Estate [Member] | ' | ' | ||
Loan ratings by loan class, commercial segment [Abstract] | ' | ' | ||
Non-watch 1-6 | 227,957 | 183,530 | ||
Watch 7-8 | 17,882 | 27,096 | ||
Substandard Accrual 9 | 3,895 | 6,555 | ||
Non Accrual 10-11 | 1,899 | 5,611 | ||
Total | 251,633 | 222,792 | ||
Commercial [Member] | Land, Land Development and Construction Real Estate [Member] | ' | ' | ||
Loan ratings by loan class, commercial segment [Abstract] | ' | ' | ||
Non-watch 1-6 | 25,654 | 32,784 | ||
Watch 7-8 | 4,829 | 3,457 | ||
Substandard Accrual 9 | 317 | 2,959 | ||
Non Accrual 10-11 | 1,036 | 4,062 | ||
Total | 31,836 | 43,262 | ||
Commercial [Member] | Commercial and Industrial [Member] | ' | ' | ||
Loan ratings by loan class, commercial segment [Abstract] | ' | ' | ||
Non-watch 1-6 | 318,183 | 307,566 | ||
Watch 7-8 | 26,303 | 26,954 | ||
Substandard Accrual 9 | 6,469 | 13,296 | ||
Non Accrual 10-11 | 2,434 | 5,080 | ||
Total | 353,389 | 352,896 | ||
Commercial [Member] | Accrued interest included in total [Member] | ' | ' | ||
Loan ratings by loan class, commercial segment [Abstract] | ' | ' | ||
Non-watch 1-6 | 1,433 | 1,417 | ||
Watch 7-8 | 147 | 163 | ||
Substandard Accrual 9 | 44 | 112 | ||
Non Accrual 10-11 | 0 | 0 | ||
Total | 1,624 | 1,692 | ||
Mortgage [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 46,415 | [1] | 43,614 | [1] |
750-799 | 133,977 | [1] | 147,054 | [1] |
700-749 | 105,953 | [1] | 113,924 | [1] |
650-699 | 80,928 | [1] | 85,565 | [1] |
600-649 | 51,308 | [1] | 51,868 | [1] |
550-599 | 31,527 | [1] | 39,344 | [1] |
500-549 | 19,298 | [1] | 24,108 | [1] |
Under 500 | 11,335 | [1] | 12,352 | [1] |
Unknown | 8,168 | [1] | 11,902 | [1] |
Total | 488,909 | [1] | 529,731 | [1] |
Accrued interest included in total | 2,276 | [1] | 2,391 | [1] |
Mortgage [Member] | 1-4 Family [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 23,924 | [1] | 19,638 | [1] |
750-799 | 60,728 | [1] | 62,419 | [1] |
700-749 | 58,269 | [1] | 59,594 | [1] |
650-699 | 49,771 | [1] | 57,584 | [1] |
600-649 | 34,991 | [1] | 31,465 | [1] |
550-599 | 24,616 | [1] | 27,739 | [1] |
500-549 | 14,823 | [1] | 20,243 | [1] |
Under 500 | 9,492 | [1] | 9,470 | [1] |
Unknown | 4,809 | [1] | 6,185 | [1] |
Total | 281,423 | [1] | 294,337 | [1] |
Accrued interest included in total | 1,300 | [1] | 1,319 | [1] |
Mortgage [Member] | Resort Lending [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 13,487 | [1] | 15,430 | [1] |
750-799 | 56,880 | [1] | 67,094 | [1] |
700-749 | 35,767 | [1] | 41,860 | [1] |
650-699 | 21,696 | [1] | 17,685 | [1] |
600-649 | 8,555 | [1] | 12,317 | [1] |
550-599 | 3,261 | [1] | 7,887 | [1] |
500-549 | 2,271 | [1] | 1,212 | [1] |
Under 500 | 1,160 | [1] | 1,637 | [1] |
Unknown | 2,879 | [1] | 5,271 | [1] |
Total | 145,956 | [1] | 170,393 | [1] |
Accrued interest included in total | 650 | [1] | 750 | [1] |
Mortgage [Member] | Home Equity - 1st Lien [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 3,650 | [1] | 3,031 | [1] |
750-799 | 4,560 | [1] | 4,758 | [1] |
700-749 | 3,289 | [1] | 3,293 | [1] |
650-699 | 2,316 | [1] | 2,309 | [1] |
600-649 | 2,621 | [1] | 3,311 | [1] |
550-599 | 1,165 | [1] | 964 | [1] |
500-549 | 644 | [1] | 656 | [1] |
Under 500 | 323 | [1] | 456 | [1] |
Unknown | 233 | [1] | 258 | [1] |
Total | 18,801 | [1] | 19,036 | [1] |
Accrued interest included in total | 97 | [1] | 91 | [1] |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 5,354 | [1] | 5,515 | [1] |
750-799 | 11,809 | [1] | 12,783 | [1] |
700-749 | 8,628 | [1] | 9,177 | [1] |
650-699 | 7,145 | [1] | 7,987 | [1] |
600-649 | 5,141 | [1] | 4,775 | [1] |
550-599 | 2,485 | [1] | 2,754 | [1] |
500-549 | 1,560 | [1] | 1,997 | [1] |
Under 500 | 360 | [1] | 789 | [1] |
Unknown | 247 | [1] | 188 | [1] |
Total | 42,729 | [1] | 45,965 | [1] |
Accrued interest included in total | 229 | [1] | 231 | [1] |
Installment [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 29,741 | [1] | 26,505 | [1] |
750-799 | 66,924 | [1] | 62,896 | [1] |
700-749 | 39,866 | [1] | 38,763 | [1] |
650-699 | 27,549 | [1] | 27,557 | [1] |
600-649 | 11,544 | [1] | 15,383 | [1] |
550-599 | 7,925 | [1] | 9,558 | [1] |
500-549 | 5,060 | [1] | 5,393 | [1] |
Under 500 | 1,959 | [1] | 2,892 | [1] |
Unknown | 2,176 | [1] | 1,648 | [1] |
Total | 192,744 | [1] | 190,595 | [1] |
Accrued interest included in total | 679 | [1] | 746 | [1] |
Installment [Member] | Home Equity - 1st Lien [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 2,977 | [1] | 3,909 | [1] |
750-799 | 6,585 | [1] | 7,394 | [1] |
700-749 | 4,353 | [1] | 4,884 | [1] |
650-699 | 4,815 | [1] | 5,925 | [1] |
600-649 | 3,173 | [1] | 4,360 | [1] |
550-599 | 2,843 | [1] | 3,226 | [1] |
500-549 | 1,483 | [1] | 1,722 | [1] |
Under 500 | 751 | [1] | 760 | [1] |
Unknown | 162 | [1] | 205 | [1] |
Total | 27,142 | [1] | 32,385 | [1] |
Accrued interest included in total | 114 | [1] | 137 | [1] |
Installment [Member] | Home Equity - 2nd Lien [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 3,062 | [1] | 3,265 | [1] |
750-799 | 11,197 | [1] | 11,300 | [1] |
700-749 | 9,487 | [1] | 8,826 | [1] |
650-699 | 6,832 | [1] | 7,164 | [1] |
600-649 | 2,824 | [1] | 4,214 | [1] |
550-599 | 2,084 | [1] | 2,716 | [1] |
500-549 | 1,715 | [1] | 1,403 | [1] |
Under 500 | 663 | [1] | 1,195 | [1] |
Unknown | 80 | [1] | 103 | [1] |
Total | 37,944 | [1] | 40,186 | [1] |
Accrued interest included in total | 144 | [1] | 157 | [1] |
Installment [Member] | Loans Not Secured By Real Estate [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 23,649 | [1] | 19,293 | [1] |
750-799 | 48,585 | [1] | 43,740 | [1] |
700-749 | 25,343 | [1] | 24,267 | [1] |
650-699 | 15,256 | [1] | 13,758 | [1] |
600-649 | 5,289 | [1] | 6,442 | [1] |
550-599 | 2,785 | [1] | 3,428 | [1] |
500-549 | 1,732 | [1] | 2,154 | [1] |
Under 500 | 516 | [1] | 895 | [1] |
Unknown | 1,892 | [1] | 1,322 | [1] |
Total | 125,047 | [1] | 115,299 | [1] |
Accrued interest included in total | 399 | [1] | 429 | [1] |
Installment [Member] | Others 2 [Member] | ' | ' | ||
Credit scores by loan class for mortgage and installment segments [Abstract] | ' | ' | ||
800 and above | 53 | [1] | 38 | [1] |
750-799 | 557 | [1] | 462 | [1] |
700-749 | 683 | [1] | 786 | [1] |
650-699 | 646 | [1] | 710 | [1] |
600-649 | 258 | [1] | 367 | [1] |
550-599 | 213 | [1] | 188 | [1] |
500-549 | 130 | [1] | 114 | [1] |
Under 500 | 29 | [1] | 42 | [1] |
Unknown | 42 | [1] | 18 | [1] |
Total | 2,611 | [1] | 2,725 | [1] |
Accrued interest included in total | 22 | [1] | 23 | [1] |
AM Best Rating A+ [Member] | ' | ' | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 0 | 0 | ||
Payment Plan Receivable, Partial Refund | 0 | 0 | ||
Payment Plan Receivable, Other | 0 | 110 | ||
Total | 0 | 110 | ||
AM Best Rating, A Ratings [Member] | ' | ' | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 20,203 | 24,825 | ||
Payment Plan Receivable, Partial Refund | 4,221 | 3,916 | ||
Payment Plan Receivable, Other | 0 | 0 | ||
Total | 24,424 | 28,741 | ||
AM Best Rating, A Minus Rating [Member] | ' | ' | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 4,058 | 19,310 | ||
Payment Plan Receivable, Partial Refund | 832 | 399 | ||
Payment Plan Receivable, Other | 7,496 | 0 | ||
Total | 12,386 | 19,709 | ||
AM Best Rating, B+ Rating [Member] | ' | ' | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 0 | 56 | ||
Payment Plan Receivable, Partial Refund | 0 | 0 | ||
Payment Plan Receivable, Other | 0 | 0 | ||
Total | 0 | 56 | ||
AM Best Rating, B Rating [Member] | ' | ' | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 0 | 0 | ||
Payment Plan Receivable, Partial Refund | 0 | 0 | ||
Payment Plan Receivable, Other | 0 | 0 | ||
Total | 0 | 0 | ||
Not Rated [Member] | ' | ' | ||
Credit ratings of insurer or risk retention group counterparties [Abstract] | ' | ' | ||
Payment Plan Receivables, Full Refund | 23,816 | 36,002 | ||
Payment Plan Receivable, Partial Refund | 0 | 0 | ||
Payment Plan Receivable, Other | 12 | 74 | ||
Total | $23,828 | $36,076 | ||
[1] | Credit scores have been updated within the last twelve months. |
LOANS_AND_PAYMENT_PLAN_RECEIVA8
LOANS AND PAYMENT PLAN RECEIVABLES, Loans Serviced for Others (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
PSARate | PSARate | ||
Quater | |||
Mortgage loans serviced for others [Abstract] | ' | ' | ' |
Mortgage loans serviced | $1,734,285,000 | $1,754,158,000 | ' |
Custodial Escrow Balances | 20,300,000 | 31,200,000 | ' |
Maximum number of consecutive quarterly losses recorded for profitability requirement | 4 | ' | ' |
Percentage of decline in net worth during the period (in hundredths) | 30.00% | ' | ' |
Maximum percentage of decline in net worth for one consecutive quarter (in hundredths) | 25.00% | ' | ' |
Maximum percentage of decline in net worth for two consecutive quarters (in hundredths) | 40.00% | ' | ' |
Highest level of capital, Amount | 2,500,000 | ' | ' |
Highest level of capital (in hundredths) | 0.25% | ' | ' |
Analysis of capitalized mortgage loan servicing rights [Abstract] | ' | ' | ' |
Balance at beginning of year | 11,013,000 | 11,229,000 | 14,661,000 |
Originated servicing rights capitalized | 3,210,000 | 4,006,000 | 2,967,000 |
Amortization | -3,745,000 | -4,679,000 | -3,065,000 |
Change in valuation allowance | 3,232,000 | 457,000 | -3,334,000 |
Balance at end of year | 13,710,000 | 11,013,000 | 11,229,000 |
Valuation allowance | 2,855,000 | 6,087,000 | 6,544,000 |
Loans sold and serviced that have had servicing rights capitalized | 1,732,476,000 | 1,751,960,000 | 1,774,952,000 |
Fair value of capitalized mortgage loan servicing rights | 15,000,000 | 11,400,000 | ' |
Average coupon rate (in hundredths) | 4.52% | 4.81% | ' |
Average servicing fee (in hundredths) | 0.25% | 0.25% | ' |
Average discount rate (in hundredths) | 10.09% | 11.02% | ' |
Average PSA Rate | 175 | 250 | ' |
Fannie Mae [Member] | ' | ' | ' |
Mortgage loans serviced for others [Abstract] | ' | ' | ' |
Mortgage loans serviced | 981,031,000 | 948,588,000 | ' |
Freddie Mac [Member] | ' | ' | ' |
Mortgage loans serviced for others [Abstract] | ' | ' | ' |
Mortgage loans serviced | 753,143,000 | 805,447,000 | ' |
Other [Member] | ' | ' | ' |
Mortgage loans serviced for others [Abstract] | ' | ' | ' |
Mortgage loans serviced | $111,000 | $123,000 | ' |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
OTHER REAL ESTATE OWNED [Abstract] | ' | ' | ' |
Foreclosed on certain loans secured by real estate and transferred to other real estate | $6,900,000 | $14,300,000 | ' |
Other real estate with book balances | 12,000,000 | 18,200,000 | ' |
Real Estate Owned Valuation Allowance [Roll Forward] | ' | ' | ' |
Balance at beginning of year | 5,958,000 | 14,655,000 | 10,876,000 |
Additions charged to expense | 2,598,000 | 3,769,000 | 6,563,000 |
Direct write-downs upon sale | -4,509,000 | -12,466,000 | -2,784,000 |
Balance at end of year | 4,047,000 | 5,958,000 | 14,655,000 |
Other real estate and repossessed assets | $18,282,000 | $26,133,000 | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, Gross | $151,067,000 | $143,827,000 | ' |
Accumulated depreciation and amortization | -102,473,000 | -96,811,000 | ' |
Property and equipment, Net | 48,594,000 | 47,016,000 | ' |
Depreciation expense | 6,700,000 | 7,600,000 | 8,400,000 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, Gross | 14,817,000 | 14,614,000 | ' |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, Gross | 58,798,000 | 56,835,000 | ' |
Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, Gross | $77,452,000 | $72,378,000 | ' |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible assets, net of amortization [Abstract] | ' | ' | ' |
Intangible amortization expense | $800 | $1,100 | $1,400 |
Core Deposits [Member] | ' | ' | ' |
Intangible assets, net of amortization [Abstract] | ' | ' | ' |
Gross Carrying Amount | 23,703,000 | 23,703,000 | ' |
Accumulated Amortization | 20,540,000 | 19,728,000 | ' |
Summary of estimated core deposit intangible amortization [Abstract] | ' | ' | ' |
2014 | 536,000 | ' | ' |
2015 | 347,000 | ' | ' |
2016 | 347,000 | ' | ' |
2017 | 346,000 | ' | ' |
2018 | 346,000 | ' | ' |
2019 and thereafter | 1,241,000 | ' | ' |
Total | 3,163,000 | ' | ' |
Customers and Deposits [Member] | Branches Sold [Member] | ' | ' | ' |
Intangible assets, net of amortization [Abstract] | ' | ' | ' |
Gross Carrying Amount | 7,600,000 | ' | ' |
Accumulated Amortization | 5,100,000 | ' | ' |
Intangible assets, net recorded balance | $2,600,000 | ' | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of interest expense on deposits [Abstract] | ' | ' | ' |
Savings and interest bearing checking | $1,131,000 | $1,830,000 | $2,263,000 |
Time deposits under $100,000 | 2,995,000 | 4,838,000 | 10,349,000 |
Time deposits of $100,000 or more | 1,580,000 | 2,245,000 | 2,645,000 |
Total Deposits | 5,706,000 | 8,913,000 | 15,257,000 |
Time Deposits in denominations of 100,00 or more amounted | 191,700,000 | 146,400,000 | ' |
Summary of the maturity of time deposits [Abstract] | ' | ' | ' |
2014 | 317,074,000 | ' | ' |
2015 | 65,407,000 | ' | ' |
2016 | 24,542,000 | ' | ' |
2017 | 14,386,000 | ' | ' |
2018 | 22,424,000 | ' | ' |
2019 and thereafter | 748,000 | ' | ' |
Total | 444,581,000 | ' | ' |
Time deposits acquired through broker relationships | 13,500,000 | 146,400,000 | ' |
Summary of reciprocal deposits [Abstract] | ' | ' | ' |
Demand | 7,018,000 | 545,000 | ' |
Money market | 4,197,000 | 700,000 | ' |
Time | 72,312,000 | 31,997,000 | ' |
Total | $83,527,000 | $33,242,000 | ' |
OTHER_BORROWINGS_Details
OTHER BORROWINGS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of other borrowings [Abstract] | ' | ' | ' |
Advances from the Federal Home Loan Bank | $17,181,000 | $17,622,000 | ' |
Other | 7,000 | 3,000 | ' |
Total | 17,188,000 | 17,625,000 | ' |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' | ' |
Federal home loan bank, advances, interest rate, minimum (in hundredths) | 133.00% | ' | ' |
Federal home loan bank, advances, interest rate, maximum (in hundredths) | 159.00% | ' | ' |
Unused borrowing capacity with FHLB | 150,700,000 | ' | ' |
Interest expense on FHLB advances | 1,100,000 | 1,200,000 | 1,400,000 |
FHLB advances terminated with no gain or loss | 0 | 3,000,000 | 33,000,000 |
FHLB stock as percentages of unpaid principal balance (in hundredths) | 1.00% | ' | ' |
FHLB stock as percentages of outstanding advances (in hundredths) | 5.00% | ' | ' |
Summary of repayments of FHLB Advances [Abstract] | ' | ' | ' |
Available for sale and loans, pledged to secure other borrowings | 785,700,000 | ' | ' |
Federal Reserve Bank Advances [Member] | ' | ' | ' |
Federal Reserve Bank - Short-term borrowings [Line Items] | ' | ' | ' |
Unused borrowing capacity with the FRB | 276,700,000 | ' | ' |
Fixed-Rate Advances [Member] | ' | ' | ' |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ' | ' | ' |
2014, Amount | 4,240,000 | 4,240,000 | ' |
2016, Amount | 2,313,000 | 2,413,000 | ' |
2017, Amount | 1,377,000 | 1,429,000 | ' |
2018, Amount | 5,888,000 | 6,089,000 | ' |
2019 and thereafter, Amount | 3,363,000 | 3,451,000 | ' |
Total FHLB advances, Amount | 17,181,000 | 17,622,000 | ' |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ' | ' | ' |
2014, Rate (in hundredths) | 5.73% | 5.73% | ' |
2016, Rate (in hundredths) | 6.55% | 6.55% | ' |
2017, Rate (in hundredths) | 7.04% | 7.04% | ' |
2018, Rate (in hundredths) | 5.99% | 5.99% | ' |
2019 and thereafter, Rate (in hundredths) | 7.49% | 7.49% | ' |
Total FHLB advances, Rate (in hundredths) | 6.38% | 6.38% | ' |
Advances from Federal Home Loan Bank ("FHLB") [Member] | ' | ' | ' |
Summary of repayments of FHLB Advances [Abstract] | ' | ' | ' |
2014 | 4,717,000 | ' | ' |
2015 | 515,000 | ' | ' |
2016 | 2,521,000 | ' | ' |
2017 | 1,587,000 | ' | ' |
2018 | 5,042,000 | ' | ' |
2019 and thereafter | 2,799,000 | ' | ' |
Total | $17,181,000 | ' | ' |
SUBORDINATED_DEBENTURES_Detail
SUBORDINATED DEBENTURES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
SUBORDINATED DEBENTURES [Abstract] | ' | ' |
Trust preferred securities | $39,500,000 | 47,700,000 |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Subordinated Debentures | 40,723,000 | 50,175,000 |
Summary of subordinated debentures and trust preferred securities [Abstract] | ' | ' |
Distribution deferral period, maximum months | '60 months | ' |
Maximum period within which issuance costs have been capitalized and amortized on straight line basis | '30 years | ' |
IBC Capital Finance II [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Issue Date | ' | 31-Mar-03 |
Summary of subordinated debentures and trust preferred securities [Abstract] | ' | ' |
Redemptions of trust preferred securities at par value | 9,200,000 | ' |
IBC Capital Finance III [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Issue Date | 30-May-07 | 30-May-07 |
Summary of subordinated debentures and trust preferred securities [Abstract] | ' | ' |
Maturity Date | 30-Jul-37 | ' |
Interest Rate | '3 month LIBOR plus 1.60% | ' |
Interest Rate Spread (in hundredths) | 1.60% | ' |
First Permitted Redemption Date | 30-Jul-12 | ' |
IBC Capital Finance IV [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Issue Date | 30-Sep-07 | 30-Sep-07 |
Summary of subordinated debentures and trust preferred securities [Abstract] | ' | ' |
Maturity Date | 15-Sep-37 | ' |
Interest Rate | '3 month LIBOR plus 2.85% | ' |
Interest Rate Spread (in hundredths) | 2.85% | ' |
First Permitted Redemption Date | 15-Sep-12 | ' |
Midwest Guaranty Trust I [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Issue Date | 30-Nov-02 | 30-Nov-02 |
Summary of subordinated debentures and trust preferred securities [Abstract] | ' | ' |
Maturity Date | 7-Nov-32 | ' |
Interest Rate | '3 month LIBOR plus 3.45% | ' |
Interest Rate Spread (in hundredths) | 3.45% | ' |
First Permitted Redemption Date | 7-Nov-07 | ' |
Subordinated Debentures Subject to Mandatory Redemption [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Subordinated Debentures | 40,723,000 | 50,175,000 |
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance II [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Subordinated Debentures | ' | 9,452,000 |
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Subordinated Debentures | 12,372,000 | 12,372,000 |
Subordinated Debentures Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Subordinated Debentures | 20,619,000 | 20,619,000 |
Subordinated Debentures Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Subordinated Debentures | 7,732,000 | 7,732,000 |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Trust Preferred Securities Issued | 39,500,000 | 48,668,000 |
Summary of subordinated debentures and trust preferred securities [Abstract] | ' | ' |
Redemptions of trust preferred securities at par value | 9,200,000 | ' |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance II [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Trust Preferred Securities Issued | ' | 9,168,000 |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Trust Preferred Securities Issued | 12,000,000 | 12,000,000 |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Trust Preferred Securities Issued | 20,000,000 | 20,000,000 |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Trust Preferred Securities Issued | 7,500,000 | 7,500,000 |
Common Stock Subject to Mandatory Redemption [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Common Stock Issued | 1,223,000 | 1,507,000 |
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance II [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Common Stock Issued | ' | 284,000 |
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance III [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Common Stock Issued | 372,000 | 372,000 |
Common Stock Subject to Mandatory Redemption [Member] | IBC Capital Finance IV [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Common Stock Issued | 619,000 | 619,000 |
Common Stock Subject to Mandatory Redemption [Member] | Midwest Guaranty Trust I [Member] | ' | ' |
Summary of information regarding subordinated debentures [Abstract] | ' | ' |
Common Stock Issued | $232,000 | 232,000 |
COMMITMENTS_AND_CONTINGENT_LIA2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Loss reimbursement on sold loans | $2,200,000 | $1,200,000 | $500,000 | $200,000 | $60,000 |
Reserve for loss reimbursements on sold mortgage loans | 1,400,000 | 1,400,000 | ' | ' | ' |
Vehicle service contract counterparty receivable [Roll Forward] | ' | ' | ' | ' | ' |
Balance at beginning of year, net of reserve | 18,449,000 | 29,298,000 | 37,270,000 | ' | ' |
Transfers in from payment plan receivables | 792,000 | 1,469,000 | 8,874,000 | ' | ' |
Reserves established and charge-offs recorded to expense | -4,837,000 | -1,629,000 | -11,048,000 | ' | ' |
Transferred to (from) contingency reserves | 63,000 | -108,000 | -1,015,000 | ' | ' |
Cash received | -6,751,000 | -7,413,000 | -1,613,000 | ' | ' |
Collateral received (other real estate and repossessed assets) in partial satisfaction of debt | 0 | -3,168,000 | -3,170,000 | ' | ' |
Balance at end of year, net of reserve | 7,716,000 | 18,449,000 | 29,298,000 | 37,270,000 | ' |
Reserve at end of year | 1,300,000 | 2,000,000 | 32,450,000 | ' | ' |
Vehicle service contract counterparty reserve [Roll Forward] | ' | ' | ' | ' | ' |
Balance at beginning of year | 2,012,000 | 32,570,000 | 25,735,000 | ' | ' |
Additions charged to expense | 4,837,000 | 1,629,000 | 11,048,000 | ' | ' |
Charge-offs | -5,474,000 | -32,187,000 | -4,213,000 | ' | ' |
Balance at end of year | 1,375,000 | 2,012,000 | 32,570,000 | 25,735,000 | ' |
Reserves recorded in VSC counterparty receivables, net | 1,300,000 | 2,000,000 | 32,450,000 | ' | ' |
Reserves recorded in other liabilities | 75,000 | 12,000 | 120,000 | ' | ' |
Total at end of year | 1,375,000 | 2,012,000 | 32,570,000 | ' | ' |
Fannie Mae [Member] | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Loss reimbursement on sold loans | 1,500,000 | ' | ' | ' | ' |
Pending Litigation [Member] | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Maximum range of reasonably possible loss | 500,000 | ' | ' | ' | ' |
Accounts Receivables Due to Mepco [Member] | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Installment payments period for service contract, minimum | '12 months | ' | ' | ' | ' |
Installment payments period for service contract, maximum | '24 months | ' | ' | ' | ' |
Aggregate amount of counterparty obligations | 7,700,000 | 18,400,000 | ' | ' | ' |
VSC counterparty contingency expense | 4,800,000 | 1,600,000 | 11,000,000 | ' | ' |
Commitments to Extend Credit [Member] | ' | ' | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' | ' | ' |
Financial instruments risk represented by contract amounts | 180,829,000 | 144,890,000 | ' | ' | ' |
Standby Letters of Credit [Member] | ' | ' | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' | ' | ' |
Financial instruments risk represented by contract amounts | $4,262,000 | $4,568,000 | ' | ' | ' |
Standby Letters of Credit [Member] | Minimum [Member] | ' | ' | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' | ' | ' |
Variable interest rate (in hundredths) | 2.50% | ' | ' | ' | ' |
Standby Letters of Credit [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | ' | ' | ' |
Variable interest rate (in hundredths) | 6.25% | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_AND_INCOME2
SHAREHOLDERS' EQUITY AND INCOME (LOSS) PER COMMON SHARE (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 15, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 16, 2010 | Apr. 16, 2010 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2010 | Aug. 31, 2013 | Apr. 02, 2010 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Apr. 16, 2010 | Dec. 12, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Jul. 07, 2010 | ||||
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Warrant [Member] | Warrant [Member] | Warrant [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | UST [Member] | UST [Member] | UST [Member] | UST [Member] | UST [Member] | UST [Member] | UST [Member] | UST [Member] | Dutchess [Member] | Dutchess [Member] | Dutchess [Member] | Dutchess [Member] | Dutchess [Member] | Dutchess [Member] | ||||||||
Amended and Restated Warrants [Member] | Amended and Restated Warrants [Member] | Amended and Restated Warrants [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | ||||||||||||||||||||
Amended and Restated Warrants [Member] | Amended and Restated Warrants [Member] | Amended and Restated Warrants [Member] | Amended and Restated Warrants [Member] | |||||||||||||||||||||||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Series A Fixed Rate Cumulative Perpetual Preferred Stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Liquidation preference (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Warrants issued to purchase common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 346,154 | 346,154 | ' | ' | ' | ' | ' | ' | |||
Series B Preferred Stock issued (in shares) | 0 | 74,426 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74,426 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Warrants, exercise price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.23 | ' | ' | ' | ' | ' | ' | ' | |||
Amended warrants expiration date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12-Dec-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Accrued dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Annual dividend rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Book balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | 87,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | 7,600,000 | ' | 7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued during period (in shares) | 13,604,963 | 454,842 | 432,797 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,725,000 | 11,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued value during period | 99,075,000 | 1,418,000 | 1,335,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,400,000 | 89,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net proceeds from the issuance of common stock | 98,066,000 | 1,418,000 | 1,335,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 97,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amount agreed under securities purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Commitment to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | |||
Period committed to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '36 months | ' | ' | ' | ' | |||
Discount on sales price of common stock (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | |||
Number of shares sold (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 170,000 | 450,000 | 430,000 | 350,000 | ' | |||
Aggregate purchase price of common stock sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shareholders with certain limited exceptions (in hundredths) | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of Series C Junior Participating Preferred Stock purchase by each right | '1/1000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Discount to current market price of the common stock (in hundredths) | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Beneficial Ownership Level (in hundredths) | ' | ' | ' | 4.99% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earnings Per Share Reconciliation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Income (Loss) Applicable to Common Stock | 82,062,000 | 21,851,000 | -24,357,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Convertible preferred stock dividends | 3,001,000 | 4,347,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Preferred stock discount | -7,554,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income (loss) applicable to common stock for calculation of diluted earnings per share (1) (2) | $77,509,000 | [1],[2] | $26,198,000 | [1],[2] | ($24,357,000) | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares outstanding (in shares) | 13,970 | 8,709 | 8,277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Effect of convertible preferred stock (in shares) | 7,314 | 23,892 | 61,281 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Restricted stock units (in shares) | 363 | 216 | 122 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Stock units for deferred compensation plan for non-employee directors (in shares) | 125 | 66 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Effect of stock options (in shares) | 92 | 2 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Weighted average shares outstanding for calculation of diluted earnings per share (in shares) | 21,864 | [1] | 32,885 | [1] | 69,687 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) per common share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic (in dollars per share) | $5.87 | [2] | $2.51 | [2] | ($2.94) | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | $3.55 | $0.80 | ($2.94) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Antidilutive shares excluded from computation of diluted loss per share (in shares) | ' | ' | ' | ' | 100,000 | 100,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Antidilutive securities excluded from computation of earnings per share (in shares) | ' | ' | ' | ' | ' | ' | ' | 346,154 | 346,154 | 346,154 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | For any period in which a loss is recorded, dividends on convertible preferred stock are not added back in the diluted per common share calculation. For any period in which a loss is recorded, the assumed conversion of convertible preferred stock, assumed exercise of common stock warrants, assumed exercise of stock options, restricted stock units and stock units for a deferred compensation plan for non-employee directors would have an anti-dilutive impact on the net loss per common share and thus are ignored in the diluted per common share calculation. | |||||||||||||||||||||||||||||||||
[2] | Basic net income (loss) per common share includes weighted average common shares outstanding during the period and participating share awards. |
INCOME_TAX_Details
INCOME TAX (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income tax expense (benefit) [Abstract] | ' | ' | ' |
Current | ($277,000) | $0 | ($413,000) |
Deferred | 0 | 0 | -646,000 |
Disproportionate tax effect | 1,444,000 | 0 | 0 |
Valuation allowance - change in estimate | -56,018,000 | 0 | 847,000 |
Income tax benefit | -54,851,000 | 0 | -212,000 |
Statutory federal income tax rate (in hundredths) | 35.00% | ' | ' |
Reconciliation of income tax benefit [Abstract] | ' | ' | ' |
Statutory rate applied to income (loss) before income tax | 7,930,000 | 9,169,000 | -7,144,000 |
Net change in valuation allowance | -63,980,000 | -8,730,000 | 9,369,000 |
Bank owned life insurance | -477,000 | -568,000 | -657,000 |
Tax-exempt income | -402,000 | -453,000 | -521,000 |
Disproportionate tax effect | 1,444,000 | 0 | 0 |
U.S. Treasury warrant | 359,000 | 100,000 | -398,000 |
Non-deductible meals, entertainment and memberships | 55,000 | 55,000 | 50,000 |
Share-based compensation | 8,000 | 258,000 | 0 |
Other, net | 212,000 | 169,000 | -911,000 |
Income tax benefit | -54,851,000 | 0 | -212,000 |
Pretax other comprehensive income | ' | ' | 1,800,000 |
Deferred tax assets [Abstract] | ' | ' | ' |
Loss carryforwards | 38,027,000 | 39,593,000 | ' |
Allowance for loan losses | 11,317,000 | 15,502,000 | ' |
Fixed assets | 3,081,000 | 2,664,000 | ' |
Alternative minimum tax credit carry forward | 2,672,000 | 2,577,000 | ' |
Purchase premiums, net | 2,280,000 | 2,413,000 | ' |
Valuation allowance on other real estate owned | 1,431,000 | 2,085,000 | ' |
Share based payments | 402,000 | 817,000 | ' |
Vehicle service contract counterparty contingency reserve | 523,000 | 765,000 | ' |
Unrealized loss on trading securities | 456,000 | 591,000 | ' |
Other than temporary impairment charge on securities available for sale | 466,000 | 507,000 | ' |
Deferred compensation | 523,000 | 512,000 | ' |
Loss reimbursement on sold loans reserve | 492,000 | 501,000 | ' |
Non accrual loan interest income | 325,000 | 325,000 | ' |
Unrealized loss on derivative financial instruments | 133,000 | 259,000 | ' |
Reserve for unfunded lending commitments | 178,000 | 209,000 | ' |
Unrealized loss on securities available for sale | 1,723,000 | 181,000 | ' |
Other | 40,000 | 162,000 | ' |
Gross deferred tax assets | 64,069,000 | 69,663,000 | ' |
Valuation allowance | -1,137,000 | -65,117,000 | ' |
Total net deferred tax assets | 62,932,000 | 4,546,000 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Mortgage servicing rights | 4,799,000 | 3,855,000 | ' |
Deferred loan fees | 265,000 | 373,000 | ' |
Federal Home Loan Bank stock | 318,000 | 318,000 | ' |
Gross deferred tax liabilities | 5,382,000 | 4,546,000 | ' |
Net deferred tax assets | 57,550,000 | 0 | ' |
Operating loss carryforwards [Abstract] | ' | ' | ' |
2017 | 663,000 | ' | ' |
2018 | 189,000 | ' | ' |
2022 | 194,000 | ' | ' |
2023 | 359,000 | ' | ' |
2029 | 25,467,000 | ' | ' |
2030 | 26,254,000 | ' | ' |
2031 | 17,170,000 | ' | ' |
2032 | 37,738,000 | ' | ' |
Total | 108,034,000 | ' | ' |
Net operating loss carryforwards | 108,034,000 | ' | ' |
Changes in unrecognized tax benefits [Roll Forward] | ' | ' | ' |
Balance at beginning of year | 1,871,000 | 2,139,000 | 2,393,000 |
Additions based on tax positions related to the current year | 11,000 | 15,000 | 23,000 |
Reductions due to the statute of limitations | -186,000 | -56,000 | -277,000 |
Reductions due to settlements | -24,000 | -227,000 | 0 |
Balance at end of year | 1,672,000 | 1,871,000 | 2,139,000 |
Deferred income tax benefit attributed to OCI | ' | ' | 600,000 |
State income tax expense (benefit) | -200,000 | 0 | 700,000 |
Unrecognized tax benefits of effective tax rate | 400,000 | ' | ' |
Penalties and interest expense | 0 | 0 | 0 |
Penalties and interest accrued | 0 | 0 | 0 |
NOL Unrealized excess benefits on share-based compensation | 800,000 | ' | ' |
Open tax year | '2010 | ' | ' |
Capital Loss Carryforward [Member] | ' | ' | ' |
Other Tax Carryforward [Line Items] | ' | ' | ' |
Federal capital loss carryfowards | 300,000 | ' | ' |
Expiration dates | '2014 | ' | ' |
Mepco [Member] | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' |
Valuation allowance against deferred tax assets attributable to Mepco | $1,100,000 | ' | ' |
SHARE_BASED_COMPENSATION_Detai
SHARE BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share based compensation arrangements [Line Items] | ' | ' | ' |
Number of additional shares approved for grant (in shares) | 500,000 | ' | ' |
Total compensation expense (recovery) recognized | $900,000 | $400,000 | $900,000 |
Tax benefit relating to compensation expense recognized | 0 | 0 | 0 |
Non-employee directors share-based compensation expenses | 300,000 | 400,000 | 300,000 |
Total compensation cost not yet recognized | 1,200,000 | ' | ' |
Total compensation cost not yet recognized, period for recognition | '2 years | ' | ' |
Number of Shares [Roll Forward] | ' | ' | ' |
Outstanding, beginning balance (in shares) | 375,416 | ' | ' |
Granted (in shares) | 82,833 | ' | ' |
Vested (in shares) | -154,269 | ' | ' |
Forfeited (in shares) | 0 | ' | ' |
Outstanding, ending balance (in shares) | 303,980 | 375,416 | ' |
Weighted-Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Outstanding, beginning balance (in dollars per share) | $6.21 | ' | ' |
Granted (in dollars per share) | $6.42 | ' | ' |
Vested (in dollars per share) | $11.13 | ' | ' |
Forfeited (in dollars per share) | $0 | ' | ' |
Outstanding, ending balance (in dollars per share) | $3.77 | $6.21 | ' |
Summary of weighted-average assumptions used in Black-Scholes option pricing model for grants of stock options [Abstract] | ' | ' | ' |
Expected dividend yield (in hundredths) | 0.31% | 0.74% | 1.04% |
Risk-free interest rate (in hundredths) | 1.12% | 0.88% | 1.91% |
Expected life | '6 years | '6 years | '6 years |
Expected volatility (in hundredths) | 101.30% | 100.01% | 94.72% |
Per share weighted-average fair value (in dollars per share) | $4.98 | $2.04 | $1.37 |
Information regarding options exercised [Abstract] | ' | ' | ' |
Intrinsic value | 117,000 | 3,000 | 0 |
Cash proceeds received | 39,000 | 4,000 | 0 |
Tax benefit realized | 0 | 0 | 0 |
Stock Options [Member] | ' | ' | ' |
Number of Shares [Roll Forward] | ' | ' | ' |
Outstanding, beginning balance (in shares) | 275,933 | ' | ' |
Granted (in shares) | 77,500 | ' | ' |
Exercised (in shares) | -19,277 | ' | ' |
Forfeited (in shares) | -9,164 | ' | ' |
Expired (in shares) | -4,692 | ' | ' |
Outstanding, ending balance (in shares) | 320,300 | ' | ' |
Vested and expected to vest, period end (in shares) | 305,753 | ' | ' |
Exercisable, period end (in shares) | 133,516 | ' | ' |
Average Exercise Price [Roll Forward] | ' | ' | ' |
Outstanding, beginning balance (in dollars per share) | $4.46 | ' | ' |
Granted (in dollars per share) | $6.42 | ' | ' |
Exercised (in dollars per share) | $2.02 | ' | ' |
Forfeited (in dollars per share) | $2.85 | ' | ' |
Expired (in dollars per share) | $46.12 | ' | ' |
Outstanding, ending balance (in dollars per share) | $4.52 | ' | ' |
Vested and expected to vest, period end (in dollars per share) | $4.52 | ' | ' |
Exercisable, period end (in dollars per share) | $5.13 | ' | ' |
Weighted-Average Remaining Contractual Term (Years) [Abstract] | ' | ' | ' |
Outstanding, Weighted-Average Remaining Contractual Term | '8 years 0 months 22 days | ' | ' |
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term | '8 years 0 months 4 days | ' | ' |
Exercisable, Weighted-Average Remaining Contractual Term | '7 years 1 month 2 days | ' | ' |
Aggregate Intrinsic Value [Abstract] | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value | 2,500 | ' | ' |
Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 2,391 | ' | ' |
Exercisable, Aggregate Intrinsic Value | 1,021 | ' | ' |
Director [Member] | ' | ' | ' |
Share based compensation arrangements [Line Items] | ' | ' | ' |
Shares issues as retainer fees (in shares) | 60,000 | 210,000 | 140,000 |
Chief Executive Officer [Member] | ' | ' | ' |
Share based compensation arrangements [Line Items] | ' | ' | ' |
Annual salary increase | $20,000 | $15,000 | $200,000 |
Executive Officers [Member] | Restricted Stock [Member] | Performance-based compensation plan [Member] | ' | ' | ' |
Share based compensation arrangements [Line Items] | ' | ' | ' |
Number of restricted stock units issued to executive officers (in shares) | 100,000 | 200,000 | 100,000 |
Vesting period | '3 years | '3 years | '2 years |
Senior Officers [Member] | Stock Options [Member] | Performance-based compensation plan [Member] | ' | ' | ' |
Share based compensation arrangements [Line Items] | ' | ' | ' |
Number of stock options issued to officers (in shares) | 100,000 | 100,000 | 100,000 |
Vesting period | '3 years | '3 years | '3 years |
Expire period from date of grant of stock option | '10 years | '10 years | '10 years |
Non-Employee Directors [Member] | ' | ' | ' |
Share based compensation arrangements [Line Items] | ' | ' | ' |
Number of additional shares approved for grant (in shares) | 300,000 | ' | ' |
BENEFIT_PLANS_Details
BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
BENEFIT PLANS [Abstract] | ' | ' | ' |
Maximum matching contribution, percent (in hundredths) | 3.00% | ' | ' |
Employee matching contribution, percentage (in hundredths) | 1.00% | 0.00% | 0.00% |
Maximum contribution of employees' eligible wages (in hundredths) | 6.00% | ' | ' |
Employee stock ownership plan (ESOP), contributions (in hundredths) | 3.00% | 3.00% | 0.00% |
401(k) and employee stock ownership plans amount expensed | $1.20 | $1 | $0 |
Performance-based compensation expense | 5 | 4 | 1.1 |
Health care and life insurance expense | $3.80 | $4.90 | $5 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Jun. 30, 2013 | Dec. 31, 2009 | Dec. 31, 2013 | Apr. 16, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 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, 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 | |
Interest-Rate Cap Agreement [Member] | Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Assets [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | ||||||
Pay Fixed Interest-Rate Swap Agreement [Member] | Pay Fixed Interest-Rate Swap Agreement [Member] | Interest-Rate Cap Agreement [Member] | Interest-Rate Cap Agreement [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Amended Warrant [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | Cash Flow Hedge [Member] | Cash Flow Hedge [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | No Hedge Designation [Member] | |||||||||||
Rate-Lock Mortgage Loan Commitments [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Amended Warrant [Member] | Amended Warrant [Member] | Pay Fixed Interest-Rate Swap Agreement [Member] | Pay Fixed Interest-Rate Swap Agreement [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Amended Warrant [Member] | Amended Warrant [Member] | ||||||||||||||||||||
Derivative financial instrument according to type of hedge[ Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | ' | ' | ' | ' | ' | $20,000,000 | ' | ' | $10,000,000 | ' | ' | ' | $51,166,000 | $131,050,000 | $15,754,000 | $40,221,000 | $35,412,000 | $88,325,000 | $2,504,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Maturity | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | '0 years 1 month 6 days | '0 years 2 months 12 days | '0 years 1 month 6 days | '0 years 1 month 6 days | '0 years 1 month 6 days | '0 years 1 month 6 days | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | -739,000 | ' | ' | ' | 494,000 | 787,000 | 366,000 | 1,368,000 | 128,000 | -122,000 | -459,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination fee | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized loss to be reclassified into earnings over remaining life | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized premiums | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of amended warrant was reclassified into shareholders' equity | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative instruments, balance sheet location [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Derivatives | ' | ' | 494,000 | ' | 1,368,000 | ' | 0 | 0 | 0 | 0 | ' | ' | 494,000 | 1,368,000 | ' | ' | ' | ' | ' | 366,000 | 1,368,000 | 128,000 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Liability Derivatives | ' | ' | $0 | ' | $1,320,000 | ' | $0 | $739,000 | ' | ' | ' | ' | $0 | $581,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $739,000 | $0 | $0 | $0 | $122,000 | $0 | $459,000 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS, Effect on Statement of Operations (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Cash Flow Hedge [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | ($37) | ($127) | ($482) | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | -397 | -927 | -1,458 | |||
Gain (Loss) Recognized in Income | 0 | [1] | 0 | [1] | 0 | [1] |
Cash Flow Hedge [Member] | Pay Fixed Interest-Rate Swap Agreement [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | -37 | -127 | -512 | |||
Cash Flow Hedge [Member] | Pay Fixed Interest-Rate Swap Agreement [Member] | Interest Expense [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | -397 | -927 | -1,443 | |||
Gain (Loss) Recognized in Income | 0 | [1] | 0 | [1] | 0 | [1] |
Cash Flow Hedge [Member] | Interest-Rate Cap Agreement [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | 0 | 0 | 30 | |||
Cash Flow Hedge [Member] | Interest-Rate Cap Agreement [Member] | Interest Expense [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | 0 | 0 | -15 | |||
Gain (Loss) Recognized in Income | 0 | [1] | 0 | [1] | 0 | [1] |
No Hedge Designation [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Income | -1,777 | [1] | 710 | [1] | -387 | [1] |
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Net Mortgage Loan Gains [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Income | -1,002 | [1] | 511 | [1] | 457 | [1] |
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Net Mortgage Loan Gains [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Income | 250 | [1] | 484 | [1] | -1,981 | [1] |
No Hedge Designation [Member] | Amended Warrant [Member] | Decrease in Fair Value of U.S. Treasury Warrants [Member] | ' | ' | ' | |||
Effect of derivative financial instruments on the consolidated financial statements of operations [Abstract] | ' | ' | ' | |||
Gain (Loss) Recognized in Income | ($1,025) | [1] | ($285) | [1] | $1,137 | [1] |
[1] | For cash flow hedges, this location and amount refers to the ineffective portion. |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
RELATED PARTY TRANSACTIONS [Abstract] | ' | ' |
Borrowing relationship exceeds level | $60,000 | ' |
Related party entity ownership percentage (in hundredths) | 10.00% | ' |
Summary of loans and leases receivable [Roll Forward] | ' | ' |
Balance at beginning of year | 208,000 | 214,000 |
New loans and advances | 240,000 | 0 |
Repayments | -97,000 | -6,000 |
Balance at end of year | 351,000 | 208,000 |
Directors and executive officers deposit | $800,000 | $800,000 |
LEASES_Details
LEASES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of future minimum lease payments under non-cancelable operating leases [Abstract] | ' | ' | ' |
2014 | $1,274,000 | ' | ' |
2015 | 1,058,000 | ' | ' |
2016 | 1,017,000 | ' | ' |
2017 | 983,000 | ' | ' |
2018 | 961,000 | ' | ' |
2019 and thereafter | 1,620,000 | ' | ' |
Total | 6,913,000 | ' | ' |
Rental expense on operating leases | $1,200,000 | $1,200,000 | $1,400,000 |
CONCENTRATIONS_OF_CREDIT_RISK_
CONCENTRATIONS OF CREDIT RISK (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Residential Real Estate [Member] | Construction and Development Loans [Member] | Lessors of Nonresidential Real Estate [Member] | Lessors of Residential Real Estate [Member] | Construction General Contractors and Land Development [Member] | Health Care and Social Assistance [Member] | Service Contract 1 [Member] | Service Contract 2 [Member] | Service Contract 3 [Member] | Service Contract 4 [Member] | Service Contract 5 [Member] | |||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk loans receivable | ' | ' | $545,500,000 | $50,300,000 | $284,400,000 | $74,900,000 | $51,600,000 | $57,800,000 | ' | ' | ' | ' | ' |
Payment plan receivables | $60,638,000 | $84,692,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentrations by insurance company (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 33.30% | 22.60% | 18.30% | 16.70% | 6.50% |
Concentration risk vehicle service (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 19.80% | 15.30% | 13.80% | 13.40% | 10.80% |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cumulative Preferred Stock Subject to Mandatory Redemption And Warrants [Member] | Trust Preferred [Member] | Consolidated [Member] | Consolidated [Member] | Independent Bank [Member] | Independent Bank [Member] | ||||||
REGULATORY MATTERS [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Undivided profits | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Past due assets disposition plan amount to be reported, as per previous MOU | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Past due assets disposition plan amount to be reported | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital to risk-weighted assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual, Amount | ' | ' | ' | ' | ' | ' | ' | 245,284,000 | 204,663,000 | 234,078,000 | 207,553,000 |
Minimum for Adequately Capitalized Institutions, Amount | ' | ' | ' | ' | ' | ' | ' | 113,086,000 | 111,268,000 | 113,013,000 | 111,063,000 |
Minimum for Well Capitalized Institutions, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 141,267,000 | 138,829,000 |
Actual, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 17.35% | 14.71% | 16.57% | 14.95% |
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | 8.00% | 8.00% |
Minimum for Well-Capitalized Institutions, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | 10.00% |
Tier 1 capital to risk-weighted assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual, Amount | ' | ' | ' | ' | ' | ' | ' | 227,338,000 | 185,948,000 | 216,146,000 | 189,777,000 |
Minimum for Adequately Capitalized Institutions, Amount | ' | ' | ' | ' | ' | ' | ' | 56,543,000 | 55,634,000 | 56,507,000 | 55,531,000 |
Minimum for Well-Capitalized Institutions, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 84,760,000 | 83,297,000 |
Actual, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 16.08% | 13.37% | 15.30% | 13.67% |
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | 4.00% | 4.00% |
Minimum for Well Capitalized Institutions, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% |
Tier 1 capital to average assets [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier 1 capital | ' | ' | ' | ' | ' | ' | ' | 227,338,000 | 185,948,000 | 216,146,000 | 189,777,000 |
Minimum for Adequately Capitalized Institutions, Amount | ' | ' | ' | ' | ' | ' | ' | 85,729,000 | 92,026,000 | 85,681,000 | 91,919,000 |
Minimum for Well-Capitalized Institutions, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 107,101,000 | 114,899,000 |
Actual, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 10.61% | 8.08% | 10.09% | 8.26% |
Minimum for Adequately Capitalized Institutions, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 4.00% | 4.00% | 4.00% | 4.00% |
Minimum for Well-Capitalized Institutions, Ratio (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% |
Components of regulatory capital [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shareholders' equity | 231,581,000 | 134,975,000 | 102,627,000 | ' | 119,085,000 | ' | ' | 231,581,000 | 134,975,000 | 250,306,000 | 186,384,000 |
Add (deduct) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Qualifying trust preferred securities | ' | ' | ' | ' | ' | ' | ' | 39,500,000 | 47,678,000 | 0 | 0 |
Accumulated other comprehensive loss | -9,245,000 | -8,058,000 | ' | ' | ' | ' | ' | 9,245,000 | 8,058,000 | 9,245,000 | 8,156,000 |
Intangible assets | -3,163,000 | -3,975,000 | ' | ' | ' | ' | ' | -3,163,000 | -3,975,000 | -3,163,000 | -3,975,000 |
Disallowed deferred tax assets | ' | ' | ' | ' | ' | ' | ' | -49,609,000 | 0 | -40,026,000 | 0 |
Disallowed capitalized mortgage loan servicing rights | ' | ' | ' | ' | ' | ' | ' | -216,000 | -788,000 | -216,000 | -788,000 |
Tier 1 capital | ' | ' | ' | ' | ' | ' | ' | 227,338,000 | 185,948,000 | 216,146,000 | 189,777,000 |
Qualifying trust preferred securities II | ' | ' | ' | ' | ' | ' | ' | 0 | 990,000 | 0 | 0 |
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | ' | ' | ' | ' | ' | ' | ' | 17,946,000 | 17,725,000 | 17,932,000 | 17,776,000 |
Total risk-based capital | ' | ' | ' | ' | ' | ' | ' | 245,284,000 | 204,663,000 | 234,078,000 | 207,553,000 |
Maximum percentage of allowance for loan losses and allowance for unfunded lending commitments (in hundredths) | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer of capital from bank to the parent company | ' | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase of Convertible Preferred Stock and Restated Warrant | 81,000,000 | 0 | 0 | ' | ' | 81,000,000 | ' | ' | ' | ' | ' |
Redemption of trust preferred securities | ' | ' | ' | ' | ' | ' | $9,200,000 | ' | ' | ' | ' |
Redemption Date | ' | ' | ' | ' | ' | ' | 11-Oct-13 | ' | ' | ' | ' |
FAIR_VALUE_DISCLOSURES_Part_1_
FAIR VALUE DISCLOSURES, Part 1 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
FAIR VALUE DISCLOSURES [Abstract] | ' | ' | ||
Value of collateral-dependent impaired loans that will be reviewed by independent third party, minimum | $250,000 | ' | ||
Value of collateral-dependent impaired loans that will be reviewed by special assets group, maximum | 250,000 | ' | ||
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 498,000 | 110,000 | ||
Securities available for sale [Abstract] | ' | ' | ||
U.S. agency | 31,808,000 | 30,667,000 | ||
US agency residential mortgage backed | 203,460,000 | 127,412,000 | ||
Private label residential mortgage-backed | 6,788,000 | 8,194,000 | ||
Other asset backed | 45,185,000 | ' | ||
Obligations of states and political subdivisions | 153,678,000 | 39,051,000 | ||
Corporate | 19,137,000 | ' | ||
Trust preferred | 2,425,000 | 3,089,000 | ||
Loans held for sale | 20,390,000 | 47,487,000 | ||
Derivatives | 494,000 | [1] | 1,368,000 | [1] |
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | [2] | 1,320,000 | [2] |
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
ASSETS [Abstract] | ' | ' | ||
Capitalized mortgage loan servicing rights | 7,773,000 | [3] | 8,814,000 | [3] |
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 1,997,000 | [4] | 3,727,000 | [4] |
Land, land development & construction - real estate | 673,000 | [4] | 2,882,000 | [4] |
Commercial and industrial | 2,927,000 | [4] | 6,581,000 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 1,455,000 | [4] | 2,694,000 | [4] |
Resort Lending | 340,000 | [4] | 380,000 | [4] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 1,997,000 | [4] | 3,727,000 | [4] |
Land, land development & construction - real estate | 673,000 | [4] | 2,882,000 | [4] |
Commercial and industrial | 2,927,000 | [4] | 6,581,000 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 1,455,000 | [4] | 2,694,000 | [4] |
Resort Lending | 340,000 | [4] | 380,000 | [4] |
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 559,000 | [5] | 86,000 | [5] |
Land, land development & construction - real estate | 1,047,000 | [5] | 3,190,000 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 337,000 | [5] | 405,000 | [5] |
Resort Lending | 1,257,000 | [5] | 3,535,000 | [5] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 559,000 | [5] | 86,000 | [5] |
Land, land development & construction - real estate | 1,047,000 | [5] | 3,190,000 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 337,000 | [5] | 405,000 | [5] |
Resort Lending | 1,257,000 | [5] | 3,535,000 | [5] |
Installment [Abstract] | ' | ' | ||
Home equity installment - 1st lien | 29,000 | [5] | 59,000 | [5] |
Payment plan receivables [Abstract] | ' | ' | ||
Full refund/partial refund | 2,668,000 | [5] | ' | |
Loans held for sale relating to branch sale | ' | 3,292,000 | [5] | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 498,000 | 110,000 | ||
Securities available for sale [Abstract] | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 498,000 | 110,000 | ||
Securities available for sale [Abstract] | ' | ' | ||
U.S. agency | 0 | 0 | ||
US agency residential mortgage backed | 0 | 0 | ||
Private label residential mortgage-backed | 0 | 0 | ||
Other asset backed | 0 | ' | ||
Obligations of states and political subdivisions | 0 | 0 | ||
Corporate | 0 | ' | ||
Trust preferred | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Derivatives | 0 | [1] | 0 | [1] |
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | [2] | 0 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
ASSETS [Abstract] | ' | ' | ||
Capitalized mortgage loan servicing rights | 0 | [3] | 0 | [3] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [4] | 0 | [4] |
Land, land development & construction - real estate | 0 | [4] | 0 | [4] |
Commercial and industrial | 0 | [4] | 0 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [4] | 0 | [4] |
Resort Lending | 0 | [4] | 0 | [4] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [4] | 0 | [4] |
Land, land development & construction - real estate | 0 | [4] | 0 | [4] |
Commercial and industrial | 0 | [4] | 0 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [4] | 0 | [4] |
Resort Lending | 0 | [4] | 0 | [4] |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [5] | 0 | [5] |
Land, land development & construction - real estate | 0 | [5] | 0 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [5] | 0 | [5] |
Resort Lending | 0 | [5] | 0 | [5] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [5] | 0 | [5] |
Land, land development & construction - real estate | 0 | [5] | 0 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [5] | 0 | [5] |
Resort Lending | 0 | [5] | 0 | [5] |
Installment [Abstract] | ' | ' | ||
Home equity installment - 1st lien | 0 | [5] | 0 | [5] |
Payment plan receivables [Abstract] | ' | ' | ||
Full refund/partial refund | 0 | [5] | ' | |
Loans held for sale relating to branch sale | ' | 0 | [5] | |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 0 | 0 | ||
Securities available for sale [Abstract] | ' | ' | ||
Derivatives | 494,000 | 1,368,000 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | 861,000 | ||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 0 | 0 | ||
Securities available for sale [Abstract] | ' | ' | ||
U.S. agency | 31,808,000 | 30,667,000 | ||
US agency residential mortgage backed | 203,460,000 | 127,412,000 | ||
Private label residential mortgage-backed | 6,788,000 | 8,194,000 | ||
Other asset backed | 45,185,000 | ' | ||
Obligations of states and political subdivisions | 153,678,000 | 39,051,000 | ||
Corporate | 19,137,000 | ' | ||
Trust preferred | 2,425,000 | 3,089,000 | ||
Loans held for sale | 20,390,000 | 47,487,000 | ||
Derivatives | 494,000 | [1] | 1,368,000 | [1] |
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | [2] | 861,000 | [2] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
ASSETS [Abstract] | ' | ' | ||
Capitalized mortgage loan servicing rights | 0 | [3] | 0 | [3] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [4] | 0 | [4] |
Land, land development & construction - real estate | 0 | [4] | 0 | [4] |
Commercial and industrial | 0 | [4] | 0 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [4] | 0 | [4] |
Resort Lending | 0 | [4] | 0 | [4] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [4] | 0 | [4] |
Land, land development & construction - real estate | 0 | [4] | 0 | [4] |
Commercial and industrial | 0 | [4] | 0 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [4] | 0 | [4] |
Resort Lending | 0 | [4] | 0 | [4] |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [5] | 0 | [5] |
Land, land development & construction - real estate | 0 | [5] | 0 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [5] | 0 | [5] |
Resort Lending | 0 | [5] | 0 | [5] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 0 | [5] | 0 | [5] |
Land, land development & construction - real estate | 0 | [5] | 0 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 0 | [5] | 0 | [5] |
Resort Lending | 0 | [5] | 0 | [5] |
Installment [Abstract] | ' | ' | ||
Home equity installment - 1st lien | 0 | [5] | 0 | [5] |
Payment plan receivables [Abstract] | ' | ' | ||
Full refund/partial refund | 0 | [5] | ' | |
Loans held for sale relating to branch sale | ' | 3,292,000 | [5] | |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 0 | 0 | ||
Securities available for sale [Abstract] | ' | ' | ||
Derivatives | 0 | 0 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | 459,000 | ||
ASSETS [Abstract] | ' | ' | ||
Capitalized mortgage loan servicing rights | 7,773,000 | 8,814,000 | ||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Trading securities | 0 | 0 | ||
Securities available for sale [Abstract] | ' | ' | ||
U.S. agency | 0 | 0 | ||
US agency residential mortgage backed | 0 | 0 | ||
Private label residential mortgage-backed | 0 | 0 | ||
Other asset backed | 0 | ' | ||
Obligations of states and political subdivisions | 0 | 0 | ||
Corporate | 0 | ' | ||
Trust preferred | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Derivatives | 0 | [1] | 0 | [1] |
Liabilities [Abstract] | ' | ' | ||
Derivatives | 0 | [2] | 459,000 | [2] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ||
ASSETS [Abstract] | ' | ' | ||
Capitalized mortgage loan servicing rights | 7,773,000 | [3] | 8,814,000 | [3] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 1,997,000 | [4] | 3,727,000 | [4] |
Land, land development & construction - real estate | 673,000 | [4] | 2,882,000 | [4] |
Commercial and industrial | 2,927,000 | [4] | 6,581,000 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 1,455,000 | [4] | 2,694,000 | [4] |
Resort Lending | 340,000 | [4] | 380,000 | [4] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 1,997,000 | [4] | 3,727,000 | [4] |
Land, land development & construction - real estate | 673,000 | [4] | 2,882,000 | [4] |
Commercial and industrial | 2,927,000 | [4] | 6,581,000 | [4] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 1,455,000 | [4] | 2,694,000 | [4] |
Resort Lending | 340,000 | [4] | 380,000 | [4] |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | ' | ' | ||
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 559,000 | [5] | 86,000 | [5] |
Land, land development & construction - real estate | 1,047,000 | [5] | 3,190,000 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 337,000 | [5] | 405,000 | [5] |
Resort Lending | 1,257,000 | [5] | 3,535,000 | [5] |
Commercial [Abstract] | ' | ' | ||
Income producing - real estate | 559,000 | [5] | 86,000 | [5] |
Land, land development & construction - real estate | 1,047,000 | [5] | 3,190,000 | [5] |
Mortgage [Abstract] | ' | ' | ||
1-4 Family | 337,000 | [5] | 405,000 | [5] |
Resort Lending | 1,257,000 | [5] | 3,535,000 | [5] |
Installment [Abstract] | ' | ' | ||
Home equity installment - 1st lien | 29,000 | [5] | 59,000 | [5] |
Payment plan receivables [Abstract] | ' | ' | ||
Full refund/partial refund | 2,668,000 | [5] | ' | |
Loans held for sale relating to branch sale | ' | $0 | [5] | |
[1] | Included in accrued income and other assets | |||
[2] | Included in accrued expenses and other liabilities | |||
[3] | Only includes servicing rights that are carried at fair value due to recognition of a valuation allowance. | |||
[4] | Only includes impaired loans with specific loss allocations based on collateral value. | |||
[5] | Only includes other real estate with subsequent write downs to fair value. |
FAIR_VALUE_DISCLOSURES_Part_2_
FAIR VALUE DISCLOSURES, Part 2 (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Impairment charges recognized [Abstract] | ' | ' | ' |
Capitalized mortgage loan servicing rights, carrying amount | $7,800,000 | $8,800,000 | ' |
Capitalized mortgage loan servicing rights, valuation allowance | 2,900,000 | 6,100,000 | ' |
Capitalized mortgage loan servicing rights recoveries | 3,200,000 | 500,000 | -3,300,000 |
Collateral dependent loans, carrying amount | 10,800,000 | 22,800,000 | ' |
Collateral dependent loans, valuation allowance | 3,400,000 | 6,500,000 | ' |
Additional provision for loan losses on impaired loans | 1,500,000 | 2,000,000 | 8,900,000 |
Other real estate, carrying amount | 5,900,000 | 7,300,000 | ' |
Other real estate, valuation allowance | 4,000,000 | 6,000,000 | ' |
Other real estate, additional charge | 1,600,000 | 1,500,000 | 5,400,000 |
Warrant reclassified into shareholders' equity, fair value | 1,500,000 | ' | ' |
Amended Warrant [Member] | ' | ' | ' |
Liability [Roll Forward] | ' | ' | ' |
Beginning balance | -459,000 | -174,000 | ' |
Total gains (losses) realized and unrealized [Abstract] | ' | ' | ' |
Included in results of operations | -1,025,000 | -285,000 | ' |
Included in other comprehensive income | 0 | 0 | ' |
Purchases, issuances, settlements, maturities and calls | 0 | 0 | ' |
Reclassification to shareholders' equity | 1,484,000 | 0 | ' |
Transfers in and/or out of Level 3 | 0 | 0 | ' |
Ending balance | 0 | -459,000 | ' |
Amount of total gains (losses) for the year included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at December 31 | 0 | -285,000 | ' |
Trading Securities [Member] | ' | ' | ' |
Changes in fair value for financial assets [Abstract] | ' | ' | ' |
Net Gains (Losses) on Assets, Securities | 388,000 | 33,000 | 45,000 |
Net Gains (Losses) on Assets, Loans | 0 | 0 | 0 |
Total Change in Fair Values Included in Current Period Earnings | 388,000 | 33,000 | 45,000 |
Loans Held For Sale [Member] | ' | ' | ' |
Changes in fair value for financial assets [Abstract] | ' | ' | ' |
Net Gains (Losses) on Assets, Securities | 0 | 0 | 0 |
Net Gains (Losses) on Assets, Loans | -1,477,000 | 440,000 | 1,503,000 |
Total Change in Fair Values Included in Current Period Earnings | ($1,477,000) | $440,000 | $1,503,000 |
FAIR_VALUE_DISCLOSURES_Part_3_
FAIR VALUE DISCLOSURES, Part 3 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Fair value option - Loans held for sale [Abstract] | ' | ' | ' |
Loans held for sale | $20,390 | $47,487 | ' |
Difference | 366 | 1,843 | 1,403 |
Aggregate Fair Value [Member] | ' | ' | ' |
Fair value option - Loans held for sale [Abstract] | ' | ' | ' |
Loans held for sale | 20,390 | 47,487 | 44,801 |
Contractual Principal [Member] | ' | ' | ' |
Fair value option - Loans held for sale [Abstract] | ' | ' | ' |
Loans held for sale | $20,024 | $45,644 | $43,398 |
FAIR_VALUE_DISCLOSURES_Part_4_
FAIR VALUE DISCLOSURES, Part 4 (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 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, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
Amended Warrant [Member] | Amended Warrant [Member] | Amended Warrant [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Income Approach [Member] | Income Approach [Member] | Income Approach [Member] | Present Value of Net Servicing Revenue [Member] | Present Value of Net Servicing Revenue [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | Sales Comparison Approach [Member] | |||
Impaired Loans Commercial [Member] | Impaired Loans Commercial [Member] | Other Real Estate Commercial [Member] | Payment Plan Receivable [Member] | Impaired Loans Commercial [Member] | Impaired Loans Commercial [Member] | Impaired Loans Mortgage [Member] | Impaired Loans Mortgage [Member] | Other Real Estate Commercial [Member] | Other Real Estate Commercial [Member] | Other Real Estate Mortgage and Installment [Member] | ||||||||||
Quantitative information of fair value of liability under unobservable inputs [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Liability) Fair Value | ' | ' | $0 | ($459,000) | ($174,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset (Liability) Fair Value [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized mortgage loan servicing rights | ' | ' | ' | ' | ' | 7,773,000 | 8,814,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired loan [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | 5,597,000 | 13,190,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage | ' | ' | ' | ' | ' | 1,795,000 | 3,074,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other real estate [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | 1,606,000 | 3,276,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage and Installment | ' | ' | ' | ' | ' | 1,623,000 | 3,999,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment Plan Receivables | 60,638,000 | 84,692,000 | ' | ' | ' | 2,668,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unobservable Inputs Weighted Average [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.09% | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Cost to service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 81 | 83 | ' | ' | ' | ' | ' | ' | ' | ' |
Ancillary income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $29 | $43 | ' | ' | ' | ' | ' | ' | ' | ' |
Float rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.79% | 0.84% | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment for differences between comparable sales (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.40% | -1.90% | 16.70% | 3.20% | 9.50% | -5.70% | -12.40% | -6.30% |
Capitalization rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 9.30% | 10.80% | 12.30% | ' | ' | ' | ' | ' | ' | ' | 55.70% | ' | ' |
FAIR_VALUES_OF_FINANCIAL_INSTR2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Assets [Abstract] | ' | ' | ||
Cash and due from banks | $48,156,000 | $55,487,000 | ||
Interest bearing deposits - time | 17,999,000 | 0 | ||
Securities available for sale | 462,481,000 | 208,413,000 | ||
Liabilities [Abstract] | ' | ' | ||
Deposits with stated maturity | 444,581,000 | ' | ||
Subordinated debentures | 40,723,000 | 50,175,000 | ||
Reciprocal deposits included in deposits with no stated maturity | 11,200,000 | 1,200,000 | ||
Reciprocal deposits included in deposits with stated maturity | 72,300,000 | 32,000,000 | ||
Recorded Book Balance [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and due from banks | 48,156,000 | 55,487,000 | ||
Interest bearing deposits | 70,925,000 | 124,295,000 | ||
Interest bearing deposits - time | 17,999,000 | ' | ||
Trading securities | 498,000 | 110,000 | ||
Securities available for sale | 462,481,000 | 208,413,000 | ||
Federal Home Loan Bank and Federal Reserve Bank Stock | 23,419,000 | 20,838,000 | ||
Net loans and loans held for sale | 1,362,635,000 | 1,425,643,000 | ||
Accrued interest receivable | 5,948,000 | 5,814,000 | ||
Derivative financial instruments | 494,000 | 1,368,000 | ||
Liabilities [Abstract] | ' | ' | ||
Deposits with no stated maturity | 1,440,225,000 | [1] | 1,360,609,000 | [1] |
Deposits with stated maturity | 444,581,000 | [1] | 418,928,000 | [1] |
Other borrowings | 17,188,000 | 17,625,000 | ||
Subordinated debentures | 40,723,000 | 50,175,000 | ||
Accrued interest payable | 445,000 | 7,197,000 | ||
Derivative financial instruments | 0 | 1,320,000 | ||
Fair Value Measurements [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and due from banks | 48,156,000 | 55,487,000 | ||
Interest bearing deposits | 70,925,000 | 124,295,000 | ||
Interest bearing deposits - time | 18,000,000 | ' | ||
Trading securities | 498,000 | 110,000 | ||
Securities available for sale | 462,481,000 | 208,413,000 | ||
Net loans and loans held for sale | 1,333,229,000 | 1,400,385,000 | ||
Accrued interest receivable | 5,948,000 | 5,814,000 | ||
Derivative financial instruments | 494,000 | 1,368,000 | ||
Liabilities [Abstract] | ' | ' | ||
Deposits with no stated maturity | 1,440,225,000 | [1] | 1,360,609,000 | [1] |
Deposits with stated maturity | 446,366,000 | [1] | 420,374,000 | [1] |
Other borrowings | 19,726,000 | 21,463,000 | ||
Subordinated debentures | 27,871,000 | 42,235,000 | ||
Accrued interest payable | 445,000 | 7,197,000 | ||
Derivative financial instruments | 0 | 1,320,000 | ||
Quoted Prices in Active Markets for Identical Assets, (Level 1) [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and due from banks | 48,156,000 | 55,487,000 | ||
Interest bearing deposits | 70,925,000 | 124,295,000 | ||
Interest bearing deposits - time | 0 | ' | ||
Trading securities | 498,000 | 110,000 | ||
Securities available for sale | 0 | 0 | ||
Net loans and loans held for sale | 0 | 0 | ||
Accrued interest receivable | 1,000 | 102,000 | ||
Derivative financial instruments | 0 | 0 | ||
Liabilities [Abstract] | ' | ' | ||
Deposits with no stated maturity | 1,440,225,000 | [1] | 1,360,609,000 | [1] |
Deposits with stated maturity | 0 | [1] | 0 | [1] |
Other borrowings | 0 | 0 | ||
Subordinated debentures | 0 | 7,956,000 | ||
Accrued interest payable | 20,000 | 2,942,000 | ||
Derivative financial instruments | 0 | 0 | ||
Significant Other Observable Inputs, (Level 2) [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and due from banks | 0 | 0 | ||
Interest bearing deposits | 0 | 0 | ||
Interest bearing deposits - time | 18,000,000 | ' | ||
Trading securities | 0 | 0 | ||
Securities available for sale | 462,481,000 | 208,413,000 | ||
Net loans and loans held for sale | 20,390,000 | 50,779,000 | ||
Accrued interest receivable | 1,426,000 | 934,000 | ||
Derivative financial instruments | 494,000 | 1,368,000 | ||
Liabilities [Abstract] | ' | ' | ||
Deposits with no stated maturity | 0 | [1] | 0 | [1] |
Deposits with stated maturity | 446,366,000 | [1] | 420,374,000 | [1] |
Other borrowings | 19,726,000 | 21,463,000 | ||
Subordinated debentures | 27,871,000 | 34,279,000 | ||
Accrued interest payable | 425,000 | 4,255,000 | ||
Derivative financial instruments | 0 | 861,000 | ||
Significant Unobservable Inputs, (Level 3) [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Cash and due from banks | 0 | 0 | ||
Interest bearing deposits | 0 | 0 | ||
Interest bearing deposits - time | 0 | ' | ||
Trading securities | 0 | 0 | ||
Securities available for sale | 0 | 0 | ||
Net loans and loans held for sale | 1,312,839,000 | 1,349,606,000 | ||
Accrued interest receivable | 4,521,000 | 4,778,000 | ||
Derivative financial instruments | 0 | 0 | ||
Liabilities [Abstract] | ' | ' | ||
Deposits with no stated maturity | 0 | [1] | 0 | [1] |
Deposits with stated maturity | 0 | [1] | 0 | [1] |
Other borrowings | 0 | 0 | ||
Subordinated debentures | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Derivative financial instruments | $0 | $459,000 | ||
[1] | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $11.2 million and $1.2 million at December 31, 2013 and 2012, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $72.3 million and $32.0 million at December 31, 2013 and 2012, respectively. |
OPERATING_SEGMENTS_Details
OPERATING SEGMENTS (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Segment | ||||||
OPERATING SEGMENTS [Abstract] | ' | ' | ' | |||
Number of reportable segments | 2 | ' | ' | |||
Selected financial information for reportable segments [Abstract] | ' | ' | ' | |||
Total assets | $2,209,943,000 | $2,023,867,000 | $2,307,406,000 | |||
Interest income | 87,121,000 | 99,398,000 | 114,762,000 | |||
Net interest income | 77,959,000 | 86,255,000 | 94,569,000 | |||
Provision for loan losses | -3,988,000 | 6,887,000 | 27,946,000 | |||
Income (loss) before income tax | 22,658,000 | 26,198,000 | -20,412,000 | |||
Net income (loss) | 77,509,000 | 26,198,000 | -20,200,000 | |||
IB [Member] | ' | ' | ' | |||
Selected financial information for reportable segments [Abstract] | ' | ' | ' | |||
Total assets | 2,104,550,000 | 1,885,807,000 | 2,132,736,000 | |||
Interest income | 76,018,000 | 84,760,000 | 93,310,000 | |||
Net interest income | 71,496,000 | 77,919,000 | 81,224,000 | |||
Provision for loan losses | -3,891,000 | 6,895,000 | 27,972,000 | |||
Income (loss) before income tax | 29,605,000 | 27,379,000 | -11,137,000 | |||
Net income (loss) | 74,313,000 | 28,260,000 | -12,768,000 | |||
Reversal of valuation allowance on net deferred tax assets | 47,100,000 | ' | ' | |||
Mepco [Member] | ' | ' | ' | |||
Selected financial information for reportable segments [Abstract] | ' | ' | ' | |||
Total assets | 94,648,000 | 135,447,000 | 172,007,000 | |||
Interest income | 11,103,000 | 14,638,000 | 21,452,000 | |||
Net interest income | 8,780,000 | 11,115,000 | 16,074,000 | |||
Provision for loan losses | -97,000 | -8,000 | -26,000 | |||
Income (loss) before income tax | -2,891,000 | 2,591,000 | -6,694,000 | |||
Net income (loss) | -1,801,000 | 1,710,000 | -4,849,000 | |||
Other [Member] | ' | ' | ' | |||
Selected financial information for reportable segments [Abstract] | ' | ' | ' | |||
Total assets | 272,348,000 | [1],[2] | 192,343,000 | [1],[2] | 157,251,000 | [1],[2] |
Interest income | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Net interest income | -2,317,000 | [1],[2] | -2,779,000 | [1],[2] | -2,729,000 | [1],[2] |
Provision for loan losses | 0 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Income (loss) before income tax | -3,961,000 | [1],[2] | -3,677,000 | [1],[2] | -2,486,000 | [1],[2] |
Net income (loss) | 5,092,000 | [1],[2] | -3,677,000 | [1],[2] | -2,488,000 | [1],[2] |
Reversal of valuation allowance on net deferred tax assets | 9,000,000 | ' | ' | |||
Elimination [Member] | ' | ' | ' | |||
Selected financial information for reportable segments [Abstract] | ' | ' | ' | |||
Total assets | -261,603,000 | [3] | -189,730,000 | [3] | -154,588,000 | [3] |
Interest income | 0 | [3] | 0 | [3] | 0 | [3] |
Net interest income | 0 | [3] | 0 | [3] | 0 | [3] |
Provision for loan losses | 0 | [3] | 0 | [3] | 0 | [3] |
Income (loss) before income tax | -95,000 | [3] | -95,000 | [3] | -95,000 | [3] |
Net income (loss) | ($95,000) | [3] | ($95,000) | [3] | ($95,000) | [3] |
[1] | During 2013 IB and Other (parent company) include $47.1 million and $9.0 million, respectively of income tax benefit related to the reversal of the valuation allowance on our net deferred tax assets (see note #13). | |||||
[2] | Includes amounts relating to our parent company and certain insignificant operations. | |||||
[3] | Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) before tax at beginning of period | ($8,058) | ($11,921) | ($13,120) |
Accumulated other comprehensive income (loss), tax effect at beginning of period | 0 | ' | ' |
Accumulated other comprehensive income (loss) at beginning period | -8,058 | ' | ' |
Terminated cash flow hedge | 0 | ' | ' |
Disproportionate tax effects | ' | ' | -646 |
Other comprehensive income (loss) before reclassifications | -2,901 | 3,790 | -169 |
Amounts reclassified from AOCL | 1,714 | 73 | 2,014 |
Net current period other comprehensive income | -1,187 | 3,863 | 1,199 |
Accumulated other comprehensive income (loss) before tax at end of period | ' | -8,058 | -11,921 |
Accumulated other comprehensive income at end of period | -9,245 | -8,058 | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Net impairment loss recognized in earnings | 26 | 339 | 760 |
Interest expense | -9,162 | -13,143 | -20,193 |
Total reclassifications before tax | 22,658 | 26,198 | -20,412 |
Tax expense (benefit) | -54,851 | 0 | -212 |
Total reclassifications for the period, net of tax | 77,509 | 26,198 | -20,200 |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Total reclassifications for the period, net of tax | -1,714 | -73 | -1,368 |
Unrealized Losses on Available For Sale Securities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) before tax at beginning of period | -516 | -3,579 | -4,448 |
Accumulated other comprehensive income (loss), tax effect at beginning of period | 181 | ' | ' |
Accumulated other comprehensive income (loss) at beginning period | -335 | ' | ' |
Terminated cash flow hedge | 0 | ' | ' |
Disproportionate tax effects | ' | ' | 0 |
Other comprehensive income (loss) before reclassifications | -2,877 | 3,917 | 313 |
Amounts reclassified from AOCL | 12 | -854 | 556 |
Net current period other comprehensive income | -2,865 | 3,063 | 869 |
Accumulated other comprehensive income (loss) before tax at end of period | ' | -516 | -3,579 |
Accumulated other comprehensive income at end of period | -3,200 | -335 | ' |
Unrealized Losses on Available For Sale Securities [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Net gains on securities | 7 | 1,193 | 204 |
Net impairment loss recognized in earnings | -26 | -339 | -760 |
Total reclassifications before tax | -19 | 854 | -556 |
Tax expense (benefit) | -7 | 0 | 0 |
Total reclassifications for the period, net of tax | -12 | 854 | -556 |
Disproportionate Tax Effects from Securities Available for Sale [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) before tax at beginning of period | -5,617 | -5,617 | -5,313 |
Accumulated other comprehensive income (loss), tax effect at beginning of period | -181 | ' | ' |
Accumulated other comprehensive income (loss) at beginning period | -5,798 | ' | ' |
Terminated cash flow hedge | 0 | ' | ' |
Disproportionate tax effects | ' | ' | -304 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCL | 0 | 0 | 0 |
Net current period other comprehensive income | 0 | 0 | -304 |
Accumulated other comprehensive income (loss) before tax at end of period | ' | -5,617 | -5,617 |
Accumulated other comprehensive income at end of period | -5,798 | -5,798 | ' |
Disproportionate Tax Effects from Securities Available for Sale [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Tax expense (benefit) | ' | ' | -304 |
Unrealized Losses on Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) before tax at beginning of period | -739 | -1,103 | -1,420 |
Accumulated other comprehensive income (loss), tax effect at beginning of period | 258 | ' | ' |
Accumulated other comprehensive income (loss) at beginning period | -481 | ' | ' |
Terminated cash flow hedge | 370 | ' | ' |
Disproportionate tax effects | ' | ' | 0 |
Other comprehensive income (loss) before reclassifications | -24 | -127 | -482 |
Amounts reclassified from AOCL | 135 | 491 | 799 |
Net current period other comprehensive income | 111 | 364 | 317 |
Accumulated other comprehensive income (loss) before tax at end of period | ' | -739 | -1,103 |
Accumulated other comprehensive income at end of period | 0 | -481 | ' |
Unrealized Losses on Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Interest expense | -208 | -491 | -799 |
Tax expense (benefit) | -73 | 0 | 0 |
Total reclassifications for the period, net of tax | -135 | -491 | -799 |
Unrealized Losses on Settled Derivatives [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) before tax at beginning of period | 0 | -436 | -1,095 |
Accumulated other comprehensive income (loss), tax effect at beginning of period | 0 | ' | ' |
Accumulated other comprehensive income (loss) at beginning period | 0 | ' | ' |
Terminated cash flow hedge | -370 | ' | ' |
Disproportionate tax effects | ' | ' | 0 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCL | 123 | 436 | 659 |
Net current period other comprehensive income | 123 | 436 | 659 |
Accumulated other comprehensive income (loss) before tax at end of period | ' | 0 | -436 |
Accumulated other comprehensive income at end of period | -247 | 0 | ' |
Unrealized Losses on Settled Derivatives [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Interest expense | -189 | -436 | -659 |
Tax expense (benefit) | -66 | 0 | 0 |
Total reclassifications for the period, net of tax | -123 | -436 | -659 |
Disproportionate Tax Effects from Cash Flow Hedges [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' |
Accumulated other comprehensive income (loss) before tax at beginning of period | -1,186 | -1,186 | -844 |
Accumulated other comprehensive income (loss), tax effect at beginning of period | -258 | ' | ' |
Accumulated other comprehensive income (loss) at beginning period | -1,444 | ' | ' |
Terminated cash flow hedge | 0 | ' | ' |
Disproportionate tax effects | ' | ' | -342 |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCL | 1,444 | 0 | 0 |
Net current period other comprehensive income | 1,444 | 0 | -342 |
Accumulated other comprehensive income (loss) before tax at end of period | ' | -1,186 | -1,186 |
Accumulated other comprehensive income at end of period | 0 | -1,444 | ' |
Disproportionate Tax Effects from Cash Flow Hedges [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Tax expense (benefit) | $1,444 | ' | ($342) |
INDEPENDENT_BANK_CORPORATION_P2
INDEPENDENT BANK CORPORATION (PARENT COMPANY ONLY) FINANCIAL INFORMATION (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
ASSETS | ' | ' | ' | ' |
Cash and due from banks | $48,156 | $55,487 | ' | ' |
Other assets | 22,562 | 22,157 | ' | ' |
Total Assets | 2,209,943 | 2,023,867 | 2,307,406 | ' |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' | ' | ' |
Subordinated debentures | 40,723 | 50,175 | ' | ' |
Other liabilities | 31,556 | 33,830 | ' | ' |
Stockholders' equity | 231,581 | 134,975 | 102,627 | 119,085 |
Total Liabilities and Shareholders' Equity | 2,209,943 | 2,023,867 | ' | ' |
OPERATING INCOME | ' | ' | ' | ' |
(Increase) decrease in fair value of U.S. Treasury warrant | -1,025 | -285 | 1,137 | ' |
OPERATING EXPENSES | ' | ' | ' | ' |
Interest expense | 9,162 | 13,143 | 20,193 | ' |
Loss Before Income Tax and Equity in Undistributed Net Income (Loss) of Subsidiaries | 22,658 | 26,198 | -20,412 | ' |
Income tax expense (benefit) | -54,851 | 0 | -212 | ' |
Net Income (Loss) | 77,509 | 26,198 | -20,200 | ' |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' | ' |
Net income (loss) | 77,509 | 26,198 | -20,200 | ' |
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH USED IN OPERATING ACTIVITIES | ' | ' | ' | ' |
Deferred income taxes | -57,550 | 0 | 201 | ' |
Share based compensation | 1,238 | 869 | 1,208 | ' |
Depreciation, amortization of intangible assets and premiums, and accretion of discounts on securities and loans | -2,197 | -4,718 | -11,301 | ' |
Increase in other assets | 7,747 | -2,425 | 16,872 | ' |
Increase (decrease) in other liabilities | -3,508 | 6,606 | -1,551 | ' |
Total Adjustments | -25,439 | 3,195 | 55,606 | ' |
Net Cash From Operating Activities | 52,070 | 29,393 | 35,406 | ' |
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES | ' | ' | ' | ' |
Proceeds from issuance of common stock | 98,066 | 1,418 | 1,335 | ' |
Redemption of convertible preferred stock and common stock warrant | -81,000 | 0 | 0 | ' |
Redemption of subordinated debt | -9,452 | 0 | 0 | ' |
Share based compensation withholding obligations | -513 | 0 | 0 | ' |
Net Cash From (Used in) Financing Activities | 108,297 | 83,176 | -207,129 | ' |
Net Decrease in Cash and Cash Equivalents | -60,701 | -161,326 | -44,266 | ' |
Cash and Cash Equivalents at Beginning of Year | 179,782 | 341,108 | 385,374 | ' |
Cash and Cash Equivalents at End of Year | 119,081 | 179,782 | 341,108 | ' |
Parent Company [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash and due from banks | 11,654 | 3,788 | ' | ' |
Investment in subsidiaries | 251,529 | 187,890 | ' | ' |
Other assets | 9,165 | 665 | ' | ' |
Total Assets | 272,348 | 192,343 | ' | ' |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' | ' | ' |
Subordinated debentures | 40,723 | 50,175 | ' | ' |
Other liabilities | 391 | 7,635 | ' | ' |
Stockholders' equity | 231,234 | 134,533 | ' | ' |
Total Liabilities and Shareholders' Equity | 272,348 | 192,343 | ' | ' |
OPERATING INCOME | ' | ' | ' | ' |
(Increase) decrease in fair value of U.S. Treasury warrant | -1,025 | -285 | 1,137 | ' |
Other income | 63 | 70 | 64 | ' |
Total Operating Income | -962 | -215 | 1,201 | ' |
OPERATING EXPENSES | ' | ' | ' | ' |
Interest expense | 2,317 | 2,779 | 2,729 | ' |
Administrative and other expenses | 682 | 683 | 958 | ' |
Total Operating Expenses | 2,999 | 3,462 | 3,687 | ' |
Loss Before Income Tax and Equity in Undistributed Net Income (Loss) of Subsidiaries | -3,961 | -3,677 | -2,486 | ' |
Income tax expense (benefit) | -9,053 | 0 | 2 | ' |
Income (Loss) Before Equity in Undistributed Net Income (Loss) of Subsidiaries | 5,092 | -3,677 | -2,488 | ' |
Equity in undistributed net income (loss) of subsidiaries | 72,417 | 29,875 | -17,712 | ' |
Net Income (Loss) | 77,509 | 26,198 | -20,200 | ' |
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' | ' |
Net income (loss) | 77,509 | 26,198 | -20,200 | ' |
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET CASH USED IN OPERATING ACTIVITIES | ' | ' | ' | ' |
Deferred income taxes | -8,955 | 0 | 0 | ' |
Share based compensation | 84 | 184 | 157 | ' |
Depreciation, amortization of intangible assets and premiums, and accretion of discounts on securities and loans | 0 | 0 | 1 | ' |
Increase in other assets | 738 | -46 | -92 | ' |
Increase (decrease) in other liabilities | -5,858 | 2,945 | -2,404 | ' |
Equity in undistributed net (income) loss of subsidiaries' operations | -72,417 | -29,875 | 17,712 | ' |
Total Adjustments | -86,408 | -26,792 | 15,374 | ' |
Net Cash From Operating Activities | -8,899 | -594 | -4,826 | ' |
CASH FLOW FROM INVESTING ACTIVITIES - return of capital from subsidiary | 7,500 | 0 | 0 | ' |
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES | ' | ' | ' | ' |
Proceeds from issuance of common stock | 100,230 | 2,244 | 2,245 | ' |
Redemption of convertible preferred stock and common stock warrant | -81,000 | 0 | 0 | ' |
Redemption of subordinated debt | -9,452 | 0 | 0 | ' |
Share based compensation withholding obligations | -513 | 0 | 0 | ' |
Net Cash From (Used in) Financing Activities | 9,265 | 2,244 | 2,245 | ' |
Net Decrease in Cash and Cash Equivalents | 7,866 | 1,650 | -2,581 | ' |
Cash and Cash Equivalents at Beginning of Year | 3,788 | 2,138 | 4,719 | ' |
Cash and Cash Equivalents at End of Year | $11,654 | $3,788 | $2,138 | ' |
BRANCH_SALE_Details
BRANCH SALE (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Loans [Abstract] | ' | ' | ' |
Commercial | $635,234,000 | $617,258,000 | ' |
Mortgage | 486,633,000 | 527,340,000 | ' |
Installment | 192,065,000 | 189,849,000 | ' |
Total Loans | 1,374,570,000 | 1,419,139,000 | ' |
Allowance for loan losses | -32,325,000 | -44,275,000 | ' |
Net Loans | 1,342,245,000 | 1,374,864,000 | ' |
Deposits [Abstract] | ' | ' | ' |
Non-interest bearing | 518,658,000 | 488,126,000 | ' |
Savings and interest-bearing checking | 910,352,000 | 871,238,000 | ' |
Retail time | 358,800,000 | 372,340,000 | ' |
Deposit premium payment | ' | 11,500,000 | ' |
Discount percentage of branches being sold (in hundredths) | ' | 1.75% | ' |
Fair value of fixed assets expected to be sold | ' | 48,000,000 | ' |
Cost of fixed assets expected to be sold, net of accumulated depreciation | ' | 8,100,000 | ' |
Amount of remaining unamortized intangible assets | ' | 336,100,000 | ' |
Net gain on branch sale | 0 | 5,402,000 | 0 |
Existing core deposit intangibles allocation related to Branch sale | ' | 2,600,000 | ' |
Loss on sale of fixed assets allocation related to Branch sale | ' | 2,500,000 | ' |
Loss on the sale of loans allocation related to Branch sale | ' | 200,000 | ' |
Transaction related costs allocation related to Branch sale | ' | 800,000 | ' |
Midland, Michigan [Member] | ' | ' | ' |
Branch Location [Line Items] | ' | ' | ' |
Number of branches to be sold | ' | 21 | ' |
Loans [Abstract] | ' | ' | ' |
Commercial | ' | 27,083,000 | ' |
Mortgage | ' | 8,074,000 | ' |
Installment | ' | 12,797,000 | ' |
Total Loans | ' | 47,954,000 | ' |
Allowance for loan losses | ' | -610,000 | ' |
Net Loans | ' | 47,344,000 | ' |
Deposits [Abstract] | ' | ' | ' |
Non-interest bearing | ' | 71,718,000 | ' |
Savings and interest-bearing checking | ' | 217,264,000 | ' |
Retail time | ' | 114,107,000 | ' |
Total deposits | ' | $403,089,000 | ' |
Battle Creek, Michigan market area [Member] | ' | ' | ' |
Branch Location [Line Items] | ' | ' | ' |
Number of branches to be sold | ' | 6 | ' |
Northeast Michigan [Member] | ' | ' | ' |
Branch Location [Line Items] | ' | ' | ' |
Number of branches to be sold | ' | 15 | ' |