Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INDEPENDENT BANK CORP /MI/ | |
Entity Central Index Key | 39,311 | |
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 | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,297,545 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 52,146 | $ 48,326 |
Interest bearing deposits | 53,051 | 25,690 |
Cash and Cash Equivalents | 105,197 | 74,016 |
Interest bearing deposits - time | 13,029 | 13,561 |
Trading securities | 225 | 203 |
Securities available for sale | 604,662 | 533,178 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 15,286 | 19,919 |
Loans held for sale, carried at fair value | 25,462 | 23,662 |
Loans | ||
Commercial | 726,356 | 690,955 |
Mortgage | 468,578 | 472,628 |
Installment | 235,627 | 206,378 |
Payment plan receivables | 37,438 | 40,001 |
Total Loans | 1,467,999 | 1,409,962 |
Allowance for loan losses | (24,604) | (25,990) |
Net Loans | 1,443,395 | 1,383,972 |
Other real estate and repossessed assets | 3,851 | 6,454 |
Property and equipment, net | 43,359 | 45,948 |
Bank-owned life insurance | 54,098 | 53,625 |
Deferred tax assets, net | 41,422 | 48,632 |
Capitalized mortgage loan servicing rights | 11,630 | 12,106 |
Vehicle service contract counterparty receivables, net | 7,324 | 7,237 |
Other intangibles | 2,366 | 2,627 |
Accrued income and other assets | 23,555 | 23,590 |
Total Assets | 2,394,861 | 2,248,730 |
Deposits | ||
Non-interest bearing | 640,208 | 576,882 |
Savings and interest-bearing checking | 987,146 | 943,734 |
Reciprocal | 47,918 | 53,668 |
Time | 385,690 | 350,018 |
Total Deposits | 2,060,962 | 1,924,302 |
Other borrowings | 12,070 | 12,470 |
Subordinated debentures | 35,569 | 35,569 |
Vehicle service contract counterparty payables | 1,950 | 1,977 |
Accrued expenses and other liabilities | 31,330 | 24,041 |
Total Liabilities | 2,141,881 | 1,998,359 |
Shareholders' Equity | ||
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 22,548,562 shares at September 30, 2015 and 22,957,323 shares at December 31, 2014 | 343,601 | 352,462 |
Accumulated deficit | (86,125) | (96,455) |
Accumulated other comprehensive loss | (4,496) | (5,636) |
Total Shareholders' Equity | 252,980 | 250,371 |
Total Liabilities and Shareholders' Equity | $ 2,394,861 | $ 2,248,730 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 0 |
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 22,548,562 | 22,957,323 |
Common stock, shares outstanding (in shares) | 22,548,562 | 22,957,323 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Interest Income | |||||
Interest and fees on loans | $ 17,869 | $ 17,818 | $ 52,859 | $ 54,179 | |
Interest on securities | |||||
Taxable | 1,901 | 1,644 | 5,528 | 4,623 | |
Tax-exempt | 228 | 281 | 667 | 830 | |
Other investments | 295 | 325 | 922 | 1,076 | |
Total Interest Income | 20,293 | 20,068 | 59,976 | 60,708 | |
Interest Expense | |||||
Deposits | 987 | 1,236 | 2,961 | 3,789 | |
Other borrowings | 465 | 649 | 1,382 | 1,720 | |
Total Interest Expense | 1,452 | 1,885 | 4,343 | 5,509 | |
Net Interest Income | 18,841 | 18,183 | 55,633 | 55,199 | |
Provision for loan losses | (244) | (632) | (1,037) | (2,049) | |
Net Interest Income After Provision for Loan Losses | 19,085 | 18,815 | 56,670 | 57,248 | |
Non-interest Income | |||||
Service charges on deposit accounts | 3,294 | 3,579 | 9,261 | 10,166 | |
Interchange income | 2,169 | 1,984 | 6,551 | 5,992 | |
Net gains (losses) on assets | |||||
Mortgage loans | 1,812 | 1,490 | 5,735 | 4,139 | |
Securities | 45 | 168 | 97 | 334 | |
Other than temporary impairment loss on securities | |||||
Total impairment loss | 0 | (9) | 0 | (9) | |
Loss recognized in other comprehensive income | 0 | 0 | 0 | 0 | |
Net impairment loss recognized in earnings | 0 | (9) | 0 | (9) | |
Mortgage loan servicing | (556) | 932 | 476 | 1,389 | |
Title insurance fees | 281 | 243 | 874 | 734 | |
Net gain on branch sale | 1,193 | 0 | 1,193 | 0 | |
Other | 1,881 | 2,156 | 5,881 | 6,829 | |
Total Non-interest Income | 10,119 | 10,543 | 30,068 | 29,574 | |
Non-Interest Expense | |||||
Compensation and employee benefits | 12,029 | 11,718 | 35,605 | 34,774 | |
Occupancy, net | 1,940 | 2,079 | 6,399 | 6,715 | |
Data processing | 2,001 | 1,790 | 5,958 | 5,653 | |
Loan and collection | 816 | 1,391 | 2,938 | 4,283 | |
Furniture, fixtures and equipment | 998 | 1,005 | 2,915 | 3,127 | |
Communications | 754 | 712 | 2,184 | 2,212 | |
Legal and professional | 519 | 559 | 1,352 | 1,380 | |
Advertising | 406 | 427 | 1,338 | 1,547 | |
FDIC deposit insurance | 350 | 396 | 1,044 | 1,235 | |
Interchange expense | 279 | 368 | 859 | 1,112 | |
Credit card and bank service fees | 197 | 226 | 602 | 734 | |
Vehicle service contract counterparty contingencies | 30 | 28 | 89 | 169 | |
Costs related to unfunded lending commitments | 26 | 12 | 46 | 27 | |
Provision for loss reimbursement on sold loans | (35) | 0 | (59) | (466) | |
Net gains on other real estate and repossessed assets | 5 | (285) | (173) | (410) | |
Other | 1,564 | 1,658 | 4,512 | 4,952 | |
Total Non-interest Expense | 21,879 | 22,084 | 65,609 | 67,044 | |
Income Before Income Tax | 7,325 | 7,274 | 21,129 | 19,778 | |
Income tax expense | 2,278 | 2,345 | 6,682 | 5,659 | |
Net Income | $ 5,047 | $ 4,929 | $ 14,447 | $ 14,119 | |
Net Income Per Common Share | |||||
Basic (in dollars per share) | [1] | $ 0.22 | $ 0.21 | $ 0.63 | $ 0.62 |
Diluted (in dollars per share) | 0.22 | 0.21 | 0.62 | 0.60 | |
Dividends Per Common Share | |||||
Declared (in dollars per share) | 0.06 | 0.06 | 0.18 | 0.12 | |
Paid (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.12 | |
[1] | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||||
Net income | $ 5,047 | $ 4,929 | $ 14,447 | $ 14,119 |
Available for sale securities | ||||
Unrealized gains arising during period | 1,366 | 253 | 1,830 | 4,262 |
Change in unrealized gains for which a portion of other than temporary impairment has been recognized in earnings | 10 | 94 | 0 | 432 |
Reclassification adjustment for other than temporary impairment included in earnings | 0 | 9 | 0 | 9 |
Reclassification adjustments for gains included in earnings | 0 | (121) | (75) | (123) |
Unrealized gains recognized in other comprehensive income on available for sale securities | 1,376 | 235 | 1,755 | 4,580 |
Income tax expense | 482 | 82 | 615 | 1,603 |
Unrealized gains recognized in other comprehensive income on available for sale securities, net of tax | 894 | 153 | 1,140 | 2,977 |
Derivative instruments | ||||
Reclassification adjustment for accretion on settled derivatives | 0 | 95 | 0 | 285 |
Unrealized gains recognized in other comprehensive income on derivative instruments | 0 | 95 | 0 | 285 |
Income tax expense | 0 | 33 | 0 | 100 |
Unrealized gains recognized in other comprehensive income on derivative instruments, net of tax | 0 | 62 | 0 | 185 |
Other comprehensive income | 894 | 215 | 1,140 | 3,162 |
Comprehensive income | $ 5,941 | $ 5,144 | $ 15,587 | $ 17,281 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidated Statements of Cash Flows (unaudited) [Abstract] | ||
Net income | $ 14,447 | $ 14,119 |
Adjustments to Reconcile Net Income to Net Cash From Operating Activities | ||
Proceeds from sales of loans held for sale | 227,381 | 160,102 |
Disbursements for loans held for sale | (223,446) | (158,410) |
Provision for loan losses | (1,037) | (2,049) |
Deferred federal income tax expense | 7,210 | 7,218 |
Net deferred loan costs | (1,189) | (846) |
Depreciation, amortization of intangible assets and premiums and accretion of discounts on securities and loans | 3,345 | 1,856 |
Net gains on mortgage loans | (5,735) | (4,139) |
Net gains on securities | (97) | (334) |
Securities impairment recognized in earnings | 0 | 9 |
Net gains on other real estate and repossessed assets | (173) | (410) |
Vehicle service contract counterparty contingencies | 89 | 169 |
Share based compensation | 1,153 | 891 |
Gain on branch sale | (1,193) | 0 |
Net gain on sale of fixed assets | (152) | 0 |
Increase in accrued income and other assets | (359) | (6,034) |
Decrease in accrued expenses and other liabilities | (684) | (5,874) |
Total Adjustments | 5,113 | (7,851) |
Net Cash From Operating Activities | 19,560 | 6,268 |
Cash Flow Used in Investing Activities | ||
Proceeds from the sale of securities available for sale | 11,786 | 7,630 |
Proceeds from the maturity of securities available for sale | 25,458 | 48,624 |
Principal payments received on securities available for sale | 94,333 | 62,400 |
Purchases of securities available for sale | (195,623) | (184,726) |
Purchases of interest bearing deposits | (4,100) | (750) |
Proceeds from the maturity of interest bearing deposits | 4,576 | 4,050 |
Purchase of Federal Reserve Bank stock | (272) | (151) |
Redemption of Federal Reserve Bank stock | 391 | 226 |
Redemption of Federal Home Loan Bank stock | 4,514 | 0 |
Net increase in portfolio loans (loans originated, net of principal payments) | (56,407) | (23,447) |
Net cash paid in branch sale | (7,229) | 0 |
Proceeds from the collection of vehicle service contract counterparty receivables | 255 | 366 |
Proceeds from the sale of other real estate and repossessed assets | 5,619 | 12,435 |
Proceeds from the sale of property and equipment | 490 | 0 |
Capital expenditures | (2,925) | (2,660) |
Net Cash Used in Investing Activities | (119,134) | (76,003) |
Cash Flow From Financing Activities | ||
Net increase in total deposits | 145,313 | 11,089 |
Net increase (decrease) in other borrowings | (1) | 13,649 |
Payments of Federal Home Loan Bank advances | (399) | (4,609) |
Net decrease in vehicle service contract counterparty payables | (27) | (1,301) |
Dividends paid | (4,118) | (2,752) |
Proceeds from issuance of common stock | 103 | 66 |
Repurchase of common stock | (9,025) | 0 |
Share based compensation withholding obligation | (1,091) | 0 |
Net Cash From Financing Activities | 130,755 | 16,142 |
Net Increase (Decrease) in Cash and Cash Equivalents | 31,181 | (53,593) |
Cash and Cash Equivalents at Beginning of Period | 74,016 | 119,081 |
Cash and Cash Equivalents at End of Period | 105,197 | 65,488 |
Cash paid during the period for | ||
Interest | 4,302 | 5,450 |
Income taxes | 229 | 116 |
Transfers to other real estate and repossessed assets | 2,843 | 3,118 |
Transfer of payment plan receivables to vehicle service contract counterparty receivables | 431 | 105 |
Purchase of securities available for sale not yet settled | $ 7,717 | $ 1,827 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (unaudited) $ in Thousands | USD ($) |
Balance at beginning of period at Dec. 31, 2013 | $ 231,581 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 14,119 |
Cash dividends declared | (2,752) |
Issuance of common stock | 66 |
Share based compensation | 891 |
Share based compensation withholding obligation | 0 |
Repurchase of common stock | 0 |
Net change in accumulated other comprehensive loss, net of related tax effect | 3,162 |
Balance at end of period at Sep. 30, 2014 | 247,067 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 4,929 |
Net change in accumulated other comprehensive loss, net of related tax effect | 215 |
Balance at end of period at Sep. 30, 2014 | 247,067 |
Balance at beginning of period at Dec. 31, 2014 | 250,371 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 14,447 |
Cash dividends declared | (4,118) |
Issuance of common stock | 103 |
Share based compensation | 1,153 |
Share based compensation withholding obligation | (1,091) |
Repurchase of common stock | (9,025) |
Net change in accumulated other comprehensive loss, net of related tax effect | 1,140 |
Balance at end of period at Sep. 30, 2015 | 252,980 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 5,047 |
Net change in accumulated other comprehensive loss, net of related tax effect | 894 |
Balance at end of period at Sep. 30, 2015 | $ 252,980 |
Preparation of Financial Statem
Preparation of Financial Statements | 9 Months Ended |
Sep. 30, 2015 | |
Preparation of Financial Statements [Abstract] | |
Preparation of Financial Statements | 1. Preparation of Financial Statements The condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2014 included in our Annual Report on Form 10-K. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all the adjustments necessary to present fairly our consolidated financial condition as of September 30, 2015 and December 31, 2014, and the results of operations for the three and nine-month periods ended September 30, 2015 and 2014. The results of operations for the three and nine-month periods ended September 30, 2015, are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made in the prior period financial statements to conform to the current period presentation. 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. Refer to our 2014 Annual Report on Form 10-K for a disclosure of our accounting policies. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 amended guidance became effective for us on January 1, 2015, and did not have a material impact on our consolidated operating results or financial condition. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) ”. In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) – Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period”. This ASU amends existing guidance related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. These amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This amended guidance is effective for us on January 1, 2016, and is not expected to have a material impact on our consolidated operating results or financial condition. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2015 | |
Securities [Abstract] | |
Securities | 3. Securities Securities available for sale consist of the following: Amortized Cost Unrealized Fair Value Gains Losses (In thousands) September 30, 2015 U.S. agency $ 50,447 $ 344 $ 56 $ 50,735 U.S. agency residential mortgage-backed 206,387 2,116 213 208,290 U.S. agency commercial mortgage-backed 35,109 246 17 35,338 Private label residential mortgage-backed 5,295 176 342 5,129 Other asset backed 131,911 110 249 131,772 Obligations of states and political subdivisions 136,508 1,161 937 136,732 Corporate 34,088 52 34 34,106 Trust preferred 2,914 - 354 2,560 Total $ 602,659 $ 4,205 $ 2,202 $ 604,662 December 31, 2014 U.S. agency $ 34,936 $ 133 $ 63 $ 35,006 U.S. agency residential mortgage-backed 256,387 1,838 667 257,558 U.S. agency commercial mortgage-backed 33,779 68 119 33,728 Private label residential mortgage-backed 6,216 187 390 6,013 Other asset backed 32,314 77 38 32,353 Obligations of states and political subdivisions 143,698 961 1,244 143,415 Corporate 22,690 53 79 22,664 Trust preferred 2,910 - 469 2,441 Total $ 532,930 $ 3,317 $ 3,069 $ 533,178 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 follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (In thousands) September 30, 2015 U.S. agency $ 19,021 $ 50 $ 1,170 $ 6 $ 20,191 $ 56 U.S. agency residential mortgage-backed 26,884 94 16,024 119 42,908 213 U.S. agency commercial mortgage-backed 4,389 16 1,396 1 5,785 17 Private label residential mortgage-backed - - 3,542 342 3,542 342 Other asset backed 57,799 131 5,414 118 63,213 249 Obligations of states and political subdivisions 27,995 422 12,393 515 40,388 937 Corporate 11,098 34 - - 11,098 34 Trust preferred - - 2,560 354 2,560 354 Total $ 147,186 $ 747 $ 42,499 $ 1,455 $ 189,685 $ 2,202 December 31, 2014 U.S. agency $ 12,851 $ 58 $ 606 $ 5 $ 13,457 $ 63 U.S. agency residential mortgage-backed 89,547 531 15,793 136 105,340 667 U.S. agency commercial mortgage-backed 21,325 119 - - 21,325 119 Private label residential mortgage-backed 208 1 4,013 389 4,221 390 Other asset backed 2,960 15 8,729 23 11,689 38 Obligations of states and political subdivisions 28,114 106 37,540 1,138 65,654 1,244 Corporate 8,660 79 - - 8,660 79 Trust preferred - - 2,441 469 2,441 469 Total $ 163,665 $ 909 $ 69,122 $ 2,160 $ 232,787 $ 3,069 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, U.S. agency residential mortgage-backed securities and U.S. agency commercial mortgage backed securities — at September 30, 2015, we had 29 U.S. agency, 49 U.S. agency residential mortgage-backed and 9 U.S. agency commercial mortgage-backed securities whose fair market value is less than amortized cost. The unrealized losses are largely attributed to rises in term interest rates since acquisition and widening spreads to Treasury bonds. 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 September 30, 2015, we had five of this type of security whose fair value is less than amortized cost. Two of the five issues are rated by a major rating agency as investment grade, two are rated below investment grade and one is split rated. Two of these bonds have an impairment in excess of 10% and all five 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. All of these securities are receiving principal and interest payments. Most of these transactions are pass-through structures, receiving pro rata principal and interest payments from a dedicated collateral pool. 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. Our cash flow analysis forecasts complete recovery of our cost basis for four of the five securities whose fair value is less than amortized cost while the fifth security had credit related OTTI and is discussed in further detail below. 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 September 30, 2015, we had 65 other asset backed 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. Obligations of states and political subdivisions — at September 30, 2015, we had 57 municipal securities whose fair value is less than amortized cost. The unrealized losses are primarily due to increases in interest rates since acquisition. 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 September 30, 2015, we had eight 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 September 30, 2015, 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 has suffered from credit spread widening. 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 September 30, 2015, continues to have satisfactory credit metrics and make interest payments. The following table breaks out our trust preferred securities in further detail as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss (In thousands) Trust preferred securities Rated issues $ 1,788 $ (127 ) $ 1,643 $ (267 ) Unrated issues 772 (227 ) 798 (202 ) 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. We recorded no credit related OTTI charges in earnings on securities available for sale during the three or nine month periods ended September 30, 2015. We recorded $0.009 million of credit related OTTI charges in earnings on securities available for sale during the three and nine month periods ended September 30, 2014. At September 30, 2015, three private label residential mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Senior Support Security Total (In thousands) As of September 30, 2015 Fair value $ 1,690 $ 1,394 $ 91 $ 3,175 Amortized cost 1,722 1,309 - 3,031 Non-credit unrealized loss 32 - - 32 Unrealized gain - 85 91 176 Cumulative credit related OTTI 757 457 380 1,594 Credit related OTTI recognized in our Condensed Consolidated Statements of Operations For the three months ended September 30, 2015 $ - $ - $ - $ - 2014 9 - - 9 For the nine months ended September 30, 2015 - - - - 2014 9 - - 9 Each of these securities is 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 September 30, 2015. 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. A roll forward of credit losses recognized in earnings on securities available for sale for the three and nine month periods ending September 30, follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 1,844 $ 1,835 $ 1,844 $ 1,835 Additions to credit losses on securities for which no previous OTTI was recognized - - - - Increases to credit losses on securities for which OTTI was previously recognized - 9 - 9 Balance at end of period $ 1,844 $ 1,844 $ 1,844 $ 1,844 The amortized cost and fair value of securities available for sale at September 30, 2015, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 29,195 $ 29,231 Maturing after one year but within five years 69,021 69,252 Maturing after five years but within ten years 45,618 45,985 Maturing after ten years 80,123 79,665 223,957 224,133 U.S. agency residential mortgage-backed 206,387 208,290 U.S. agency commercial mortgage-backed 35,109 35,338 Private label residential mortgage-backed 5,295 5,129 Other asset backed 131,911 131,772 Total $ 602,659 $ 604,662 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. 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. A summary of proceeds from the sale of securities available for sale and gains and losses for the nine month periods ending September 30, follows: Proceeds Realized Gains (1) Losses (In thousands) 2015 $ 11,786 $ 75 $ - 2014 7,630 123 - (1) Gains in 2014 exclude $0.179 million of unrealized gain related to a U.S. Treasury short position. During 2015 and 2014, our trading securities consisted of various preferred stocks. During the first nine months of 2015 and 2014, we recognized gains on trading securities of $0.022 million and $0.032 million, respectively, that are included in net gains (losses) on securities in the . Both of these amounts relate to gains (losses) recognized on trading securities still held at each respective period end. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2015 | |
Loans [Abstract] | |
Loans | 4. Loans Our assessment of the allowance for loan losses is based on an evaluation of the loan portfolio, recent loss experience, current economic conditions and other pertinent factors. An analysis of the allowance for loan losses by portfolio segment for the three months ended September 30, follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2015 Balance at beginning of period $ 6,707 $ 11,465 $ 1,461 $ 65 $ 4,888 $ 24,586 Additions (deductions) Provision for loan losses (26 ) (47 ) (49 ) (5 ) (117 ) (244 ) Recoveries credited to allowance 637 286 250 - - 1,173 Loans charged against the allowance (190 ) (379 ) (342 ) - - (911 ) Balance at end of period $ 7,128 $ 11,325 $ 1,320 $ 60 $ 4,771 $ 24,604 2014 Balance at beginning of period $ 5,175 $ 15,542 $ 1,988 $ 80 $ 5,412 $ 28,197 Additions (deductions) Provision for loan losses (601 ) (9 ) 32 (8 ) (46 ) (632 ) Recoveries credited to allowance 999 197 283 - - 1,479 Loans charged against the allowance (385 ) (729 ) (422 ) - - (1,536 ) Balance at end of period $ 5,188 $ 15,001 $ 1,881 $ 72 $ 5,366 $ 27,508 An analysis of the allowance for loan losses by portfolio segment for the nine months ended September 30, follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2015 Balance at beginning of period $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Additions (deductions) Provision for loan losses 479 (881 ) (179 ) (4 ) (452 ) (1,037 ) Recoveries credited to allowance 1,722 843 853 - - 3,418 Loans charged against the allowance (518 ) (2,081 ) (1,168 ) - - (3,767 ) Balance at end of period $ 7,128 $ 11,325 $ 1,320 $ 60 $ 4,771 $ 24,604 2014 Balance at beginning of period $ 6,827 $ 17,195 $ 2,246 $ 97 $ 5,960 $ 32,325 Additions (deductions) Provision for loan losses (1,164 ) (395 ) 132 (28 ) (594 ) (2,049 ) Recoveries credited to allowance 3,492 1,055 886 5 - 5,438 Loans charged against the allowance (3,967 ) (2,854 ) (1,383 ) (2 ) - (8,206 ) Balance at end of period $ 5,188 $ 15,001 $ 1,881 $ 72 $ 5,366 $ 27,508 Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) September 30, 2015 Allowance for loan losses Individually evaluated for impairment $ 4,048 $ 8,244 $ 484 $ - $ - $ 12,776 Collectively evaluated for impairment 3,080 3,081 836 60 4,771 11,828 Total ending allowance balance $ 7,128 $ 11,325 $ 1,320 $ 60 $ 4,771 $ 24,604 Loans Individually evaluated for impairment $ 30,328 $ 67,871 $ 6,005 $ - $ 104,204 Collectively evaluated for impairment 697,528 402,934 230,310 37,438 1,368,210 Total loans recorded investment 727,856 470,805 236,315 37,438 1,472,414 Accrued interest included in recorded investment 1,500 2,227 688 - 4,415 Total loans $ 726,356 $ 468,578 $ 235,627 $ 37,438 $ 1,467,999 December 31, 2014 Allowance for loan losses Individually evaluated for impairment $ 3,194 $ 9,311 $ 728 $ - $ - $ 13,233 Collectively evaluated for impairment 2,251 4,133 1,086 64 5,223 12,757 Total ending allowance balance $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Loans Individually evaluated for impairment $ 34,147 $ 72,340 $ 6,679 $ - $ 113,166 Collectively evaluated for impairment 658,423 402,458 200,368 40,001 1,301,250 Total loans recorded investment 692,570 474,798 207,047 40,001 1,414,416 Accrued interest included in recorded investment 1,615 2,170 669 - 4,454 Total loans $ 690,955 $ 472,628 $ 206,378 $ 40,001 $ 1,409,962 Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow: 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) September 30, 2015 Commercial Income producing - real estate $ - $ 5,135 $ 5,135 Land, land development and construction - real estate - 533 533 Commercial and industrial - 2,318 2,318 Mortgage 1-4 family - 5,095 5,095 Resort lending - 1,301 1,301 Home equity - 1st lien - 191 191 Home equity - 2nd lien - 189 189 Installment Home equity - 1st lien - 175 175 Home equity - 2nd lien - 445 445 Loans not secured by real estate - 430 430 Other - 2 2 Payment plan receivables Full refund - 6 6 Partial refund - 10 10 Other - 4 4 Total recorded investment $ - $ 15,834 $ 15,834 Accrued interest included in recorded investment $ - $ - $ - December 31, 2014 Commercial Income producing - real estate $ - $ 1,233 $ 1,233 Land, land development and construction - real estate - 594 594 Commercial and industrial - 2,746 2,746 Mortgage 1-4 family 7 5,945 5,952 Resort lending - 2,168 2,168 Home equity - 1st lien - 331 331 Home equity - 2nd lien - 605 605 Installment Home equity - 1st lien - 576 576 Home equity - 2nd lien - 517 517 Loans not secured by real estate - 454 454 Other - 48 48 Payment plan receivables Full refund - 2 2 Partial refund - 12 12 Other - - - Total recorded investment $ 7 $ 15,231 $ 15,238 Accrued interest included in recorded investment $ - $ - $ - An aging analysis of loans by class follows: Loans Past Due Loans not Past Due Total Loans 30-59 days 60-89 days 90+ days Total (In thousands) September 30, 2015 Commercial Income producing - real estate $ 183 $ - $ 660 $ 843 $ 274,107 $ 274,950 Land, land development and construction - real estate - 119 204 323 41,899 42,222 Commercial and industrial 2,315 320 368 3,003 407,681 410,684 Mortgage 1-4 family 2,513 662 5,095 8,270 271,130 279,400 Resort lending 309 150 1,301 1,760 116,528 118,288 Home equity - 1st lien 39 23 191 253 22,252 22,505 Home equity - 2nd lien 331 - 189 520 50,092 50,612 Installment Home equity - 1st lien 286 65 175 526 17,954 18,480 Home equity - 2nd lien 191 53 445 689 21,616 22,305 Loans not secured by real estate 474 132 430 1,036 192,321 193,357 Other 6 2 2 10 2,163 2,173 Payment plan receivables Full refund 563 115 6 684 22,848 23,532 Partial refund 710 249 10 969 7,459 8,428 Other 112 16 4 132 5,346 5,478 Total recorded investment $ 8,032 $ 1,906 $ 9,080 $ 19,018 $ 1,453,396 $ 1,472,414 Accrued interest included in recorded investment $ 113 $ 18 $ - $ 131 $ 4,284 $ 4,415 December 31, 2014 Commercial Income producing - real estate $ 89 $ - $ 214 $ 303 $ 252,763 $ 253,066 Land, land development and construction - real estate 131 - 223 354 33,984 34,338 Commercial and industrial 2,391 279 209 2,879 402,287 405,166 Mortgage 1-4 family 1,877 1,638 5,952 9,467 269,719 279,186 Resort lending 226 - 2,168 2,394 126,342 128,736 Home equity - 1st lien 39 50 331 420 19,782 20,202 Home equity - 2nd lien 711 89 605 1,405 45,269 46,674 Installment Home equity - 1st lien 466 37 576 1,079 20,995 22,074 Home equity - 2nd lien 369 81 517 967 28,125 29,092 Loans not secured by real estate 589 231 454 1,274 152,115 153,389 Other 15 3 48 66 2,426 2,492 Payment plan receivables Full refund 838 214 2 1,054 26,799 27,853 Partial refund 409 123 12 544 6,550 7,094 Other 96 24 - 120 4,934 5,054 Total recorded investment $ 8,246 $ 2,769 $ 11,311 $ 22,326 $ 1,392,090 $ 1,414,416 Accrued interest included in recorded investment $ 55 $ 29 $ - $ 84 $ 4,370 $ 4,454 Impaired loans are as follows : September 30, 2015 December 31, 2014 Impaired loans with no allocated allowance (In thousands) TDR $ 6,416 $ 9,325 Non - TDR 204 299 Impaired loans with an allocated allowance TDR - allowance based on collateral 3,970 5,879 TDR - allowance based on present value cash flow 86,985 94,970 Non - TDR - allowance based on collateral 6,281 2,296 Non - TDR - allowance based on present value cash flow - - Total impaired loans $ 103,856 $ 112,769 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 1,575 $ 2,025 TDR - allowance based on present value cash flow 8,952 10,188 Non - TDR - allowance based on collateral 2,249 1,020 Non - TDR - allowance based on present value cash flow - - Total amount of allowance for loan losses allocated $ 12,776 $ 13,233 Impaired loans by class are as follows (1): September 30, 2015 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 4,778 $ 4,977 $ - $ 5,868 $ 6,077 $ - Land, land development & construction-real estate 851 1,425 - 1,051 1,606 - Commercial and industrial 985 982 - 2,685 2,667 - Mortgage 1-4 family 23 166 - - 49 - Resort lending - - - 48 397 - Home equity - 1st lien - - - - - - Home equity - 2nd lien - - - - - - Installment Home equity - 1st lien - 36 - - 40 - Home equity - 2nd lien - - - - - - Loans not secured by real estate - - - - - - Other - - - - - - 6,637 7,586 - 9,652 10,836 - With an allowance recorded: Commercial Income producing - real estate 16,414 17,414 1,357 12,836 13,797 689 Land, land development & construction-real estate 2,061 2,140 421 3,456 3,528 499 Commercial and industrial 5,239 5,549 2,270 8,251 8,486 2,006 Mortgage 1-4 family 49,245 51,392 5,437 53,206 56,063 6,195 Resort lending 18,328 18,591 2,786 18,799 18,963 3,075 Home equity - 1st lien 155 172 11 162 177 14 Home equity - 2nd lien 120 201 10 125 205 27 Installment Home equity - 1st lien 2,434 2,610 145 2,744 2,930 219 Home equity - 2nd lien 2,931 2,942 285 3,212 3,215 419 Loans not secured by real estate 631 689 53 711 835 89 Other 9 9 1 12 12 1 97,567 101,709 12,776 103,514 108,211 13,233 Total Commercial Income producing - real estate 21,192 22,391 1,357 18,704 19,874 689 Land, land development & construction-real estate 2,912 3,565 421 4,507 5,134 499 Commercial and industrial 6,224 6,531 2,270 10,936 11,153 2,006 Mortgage 1-4 family 49,268 51,558 5,437 53,206 56,112 6,195 Resort lending 18,328 18,591 2,786 18,847 19,360 3,075 Home equity - 1st lien 155 172 11 162 177 14 Home equity - 2nd lien 120 201 10 125 205 27 Installment Home equity - 1st lien 2,434 2,646 145 2,744 2,970 219 Home equity - 2nd lien 2,931 2,942 285 3,212 3,215 419 Loans not secured by real estate 631 689 53 711 835 89 Other 9 9 1 12 12 1 Total $ 104,204 $ 109,295 $ 12,776 $ 113,166 $ 119,047 $ 13,233 Accrued interest included in recorded investment $ 348 $ 397 (1) There were no impaired payment plan receivables at September 30, 2015 or December 31, 2014. Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending September 30, follows (1): 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 5,133 $ 45 $ 8,255 $ 103 Land, land development & construction-real estate 932 14 859 15 Commercial and industrial 1,922 68 3,397 63 Mortgage 1-4 family 24 3 66 - Resort lending - - 42 1 Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Loans not secured by real estate - - - - Other - - - - 8,011 130 12,619 182 With an allowance recorded: Commercial Income producing - real estate 14,655 154 11,486 136 Land, land development & construction-real estate 1,993 2 4,092 38 Commercial and industrial 6,431 37 7,936 51 Mortgage 1-4 family 49,706 554 55,633 558 Resort lending 18,414 163 19,351 195 Home equity - 1st lien 157 2 165 2 Home equity - 2nd lien 185 - 39 - Installment Home equity - 1st lien 2,474 47 2,801 43 Home equity - 2nd lien 2,999 47 3,375 46 Loans not secured by real estate 645 10 699 9 Other 10 - 14 - 97,669 1,016 105,591 1,078 Total Commercial Income producing - real estate 19,788 199 19,741 239 Land, land development & construction-real estate 2,925 16 4,951 53 Commercial and industrial 8,353 105 11,333 114 Mortgage 1-4 family 49,730 557 55,699 558 Resort lending 18,414 163 19,393 196 Home equity - 1st lien 157 2 165 2 Home equity - 2nd lien 185 - 39 - Installment Home equity - 1st lien 2,474 47 2,801 43 Home equity - 2nd lien 2,999 47 3,375 46 Loans not secured by real estate 645 10 699 9 Other 10 - 14 - Total $ 105,680 $ 1,146 $ 118,210 $ 1,260 (1) There were no impaired payment plan receivables during the three month periods ended September 30, 2015 and 2014, respectively. Average recorded investment in and interest income earned on impaired loans by class for the nine month periods ending September 30, follows (1): 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 5,490 $ 170 $ 8,109 $ 289 Land, land development & construction-real estate 986 57 1,168 43 Commercial and industrial 2,345 195 3,517 129 Mortgage 1-4 family 18 5 37 - Resort lending 15 - 38 1 Home equity line of credit - 1st lien - - - - Home equity line of credit - 2nd lien - - - - Installment Home equity installment - 1st lien - 1 - 1 Home equity installment - 2nd lien - - - - Loans not secured by real estate - - - - Other - - - - 8,854 428 12,869 463 With an allowance recorded: Commercial Income producing - real estate 13,752 452 12,756 417 Land, land development & construction-real estate 2,351 35 4,059 120 Commercial and industrial 7,304 117 8,562 209 Mortgage 1-4 family 51,078 1,644 56,545 1,777 Resort lending 18,523 507 19,623 581 Home equity line of credit - 1st lien 159 6 159 5 Home equity line of credit - 2nd lien 154 6 40 1 Installment Home equity installment - 1st lien 2,582 141 2,860 132 Home equity installment - 2nd lien 3,086 147 3,396 143 Loans not secured by real estate 669 29 721 26 Other 11 1 15 1 99,669 3,085 108,736 3,412 Total Commercial Income producing - real estate 19,242 622 20,865 706 Land, land development & construction-real estate 3,337 92 5,227 163 Commercial and industrial 9,649 312 12,079 338 Mortgage 1-4 family 51,096 1,649 56,582 1,777 Resort lending 18,538 507 19,661 582 Home equity line of credit - 1st lien 159 6 159 5 Home equity line of credit - 2nd lien 154 6 40 1 Installment Home equity installment - 1st lien 2,582 142 2,860 133 Home equity installment - 2nd lien 3,086 147 3,396 143 Loans not secured by real estate 669 29 721 26 Other 11 1 15 1 Total $ 108,523 $ 3,513 $ 121,605 $ 3,875 (1) There were no impaired payment plan receivables during the nine month periods ended September 30, 2015 and 2014, respectively. Our average investment in impaired loans was approximately $105.7 million and $118.2 million for the three-month periods ended September 30, 2015 and 2014, respectively and $108.5 million and $121.6 million for the nine-month periods ended September 30, 2015 and 2014, respectively. Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance. Interest income recognized on impaired loans during the three months ending September 30, 2015 and 2014, was approximately $1.1 million and $1.3 million, respectively, and was approximately $3.5 million and $3.9 million during the nine months ending September 30, 2015 and 2014, respectively. Troubled debt restructurings follow: September 30, 2015 Commercial Retail Total (In thousands) Performing TDRs $ 22,257 $ 69,726 $ 91,983 Non-performing TDRs(1) 1,501 3,887 (2) 5,388 Total $ 23,758 $ 73,613 $ 97,371 December 31, 2014 Commercial Retail Total (In thousands) Performing TDRs $ 29,475 $ 73,496 $ 102,971 Non-performing TDRs(1) 1,978 5,225 (2) 7,203 Total $ 31,453 $ 78,721 $ 110,174 (1) Included in non-performing loans table above. (2) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. We allocated $10.5 million and $12.2 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2015 and December 31, 2014, respectively. During the nine months ended September 30, 2015 and 2014, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans 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 36 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 230 months in certain circumstances. Loans that have been classified as troubled debt restructurings during the three-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 1 48 26 Mortgage 1-4 family 3 343 344 Resort lending - - - Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien - - - Home equity - 2nd lien - - - Loans not secured by real estate 1 19 19 Other - - - Total 5 $ 410 $ 389 2014 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate 1 40 36 Commercial and industrial 5 716 693 Mortgage 1-4 family 1 87 87 Resort lending 1 378 367 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 3 118 96 Home equity - 2nd lien - - - Loans not secured by real estate 1 55 53 Other - - - Total 12 $ 1,394 $ 1,332 Loans that have been classified as troubled debt restructurings during the nine-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate 2 $ 229 $ 234 Land, land development & construction-real estate - - - Commercial and industrial 4 301 273 Mortgage 1-4 family 9 1,373 1,189 Resort lending 1 313 309 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 5 190 164 Home equity - 2nd lien 3 58 58 Loans not secured by real estate 2 19 25 Other - - - Total 26 $ 2,483 $ 2,252 2014 Commercial Income producing - real estate 3 $ 354 $ 326 Land, land development & construction-real estate 2 55 50 Commercial and industrial 11 2,083 1,524 Mortgage 1-4 family 8 1,037 1,049 Resort lending 4 1,011 997 Home equity - 1st lien 1 17 13 Home equity - 2nd lien - - - Installment Home equity - 1st lien 8 538 465 Home equity - 2nd lien 5 294 284 Loans not secured by real estate 3 88 80 Other - - - Total 45 $ 5,477 $ 4,788 The troubled debt restructurings described above for 2015 decreased the allowance for loan losses by $0.05 million and resulted in zero charge offs during the three months ended September 30, 2015, and increased the allowance by $0.05 million and resulted in zero charge offs during the nine months ended September 30, 2015. The troubled debt restructurings described above for 2014 increased the allowance for loan losses by $0.2 million and resulted in zero charge offs during the three months ended September 30, 2014 and increased the allowance by $0.2 million and resulted in $0.01 million of charge offs during the nine months ended September 30, 2014. Loans that have been classified as troubled debt restructurings during the past twelve months and that Number of Contracts Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial - - Mortgage 1-4 family 1 54 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate - - Other - - 1 $ 54 2014 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial 1 66 Mortgage 1-4 family 1 125 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate - - Other - - 2 $ 191 Loans that have been classified as troubled debt restructurings during the past twelve months and that Number of Contracts Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial 2 157 Mortgage 1-4 family 1 54 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate 1 4 Other - - 4 $ 215 2014 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial 2 319 Mortgage 1-4 family 1 125 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate - - Other - - 3 $ 444 A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms. The troubled debt restructurings that subsequently defaulted described above for 2015 decreased the allowance for loan losses by $0.01 million and resulted in zero charge offs during the three months ended September 30, 2015 and had no impact on the allowance for loan losses and resulted in zero charge offs during the nine months ended September 30, 2015. The troubled debt restructurings that subsequently defaulted described above for 2014 had no impact on the allowance for loan losses and resulted in no charge offs during the three months ended September 30, 2014 and increased the allowance for loan losses by $0.01 million and resulted in no charge offs during the nine months ended September 30, 2014. The terms of certain other loans were modified during the nine months ended September 30, 2015 and 2014 in a manner 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 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 Rating 7 and 8 Rating 9 Rating 10 and 11 Rating 12 The following table summarizes loan ratings by loan class for our commercial loan segment: Commercial Non-watch Watch Substandard Non- Total (In thousands) September 30, 2015 Income producing - real estate $ 261,676 $ 7,013 $ 1,126 $ 5,135 $ 274,950 Land, land development and construction - real estate 38,135 3,307 247 533 42,222 Commercial and industrial 371,193 29,285 7,888 2,318 410,684 Total $ 671,004 $ 39,605 $ 9,261 $ 7,986 $ 727,856 Accrued interest included in total $ 1,304 $ 189 $ 7 $ - $ 1,500 December 31, 2014 Income producing - real estate $ 241,266 $ 8,649 $ 1,918 $ 1,233 $ 253,066 Land, land development and construction - real estate 30,869 2,485 390 594 34,338 Commercial and industrial 372,947 23,475 5,998 2,746 405,166 Total $ 645,082 $ 34,609 $ 8,306 $ 4,573 $ 692,570 Accrued interest included in total $ 1,479 $ 111 $ 25 $ - $ 1,615 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 semi-annually. The following tables summarize credit scores by loan class for our mortgage and installment loan segments: Mortgage (1) 1-4 Family Resort Lending Home Equity 1st Lien Home Equity 2nd Lien Total (In thousands) September 30, 2015 800 and above $ 27,538 $ 12,627 $ 4,859 $ 6,717 $ 51,741 750-799 77,238 42,522 6,280 16,387 142,427 700-749 50,309 33,785 4,076 11,985 100,155 650-699 52,898 16,771 3,565 8,022 81,256 600-649 28,698 5,666 1,872 3,639 39,875 550-599 16,809 2,546 647 1,957 21,959 500-549 13,983 1,253 758 1,089 17,083 Under 500 4,098 992 210 404 5,704 Unknown 7,829 2,126 238 412 10,605 Total $ 279,400 $ 118,288 $ 22,505 $ 50,612 $ 470,805 Accrued interest included in total $ 1,427 $ 508 $ 92 $ 200 $ 2,227 December 31, 2014 800 and above $ 27,918 $ 14,484 $ 3,863 $ 6,225 $ 52,490 750-799 72,674 45,950 6,128 14,323 139,075 700-749 52,843 32,660 3,054 9,642 98,199 650-699 51,664 20,250 3,257 8,194 83,365 600-649 27,770 6,538 1,704 3,862 39,874 550-599 21,361 3,639 994 1,721 27,715 500-549 14,575 2,156 699 1,401 18,831 Under 500 6,306 875 261 632 8,074 Unknown 4,075 2,184 242 674 7,175 Total $ 279,186 $ 128,736 $ 20,202 $ 46,674 $ 474,798 Accrued interest included in total $ 1,311 $ 562 $ 88 $ 209 $ 2,170 (1) Credit scores have been updated within the last twelve months. Installment (1) Home Equity 1st Lien Home Equity 2nd Lien Loans not Secured by Real Estate Other Total (In thousands) September 30, 2015 800 and above $ 1,953 $ 1,840 $ 40,348 $ 59 $ 44,200 750-799 4,411 6,624 89,310 568 100,913 700-749 2,685 4,667 38,237 617 46,206 650-699 3,783 4,138 15,224 479 23,624 600-649 2,161 2,254 4,758 260 9,433 550-599 1,919 1,547 2,080 124 5,670 500-549 760 851 976 50 2,637 Under 500 744 280 461 11 1,496 Unknown 64 104 1,963 5 2,136 Total $ 18,480 $ 22,305 $ 193,357 $ 2,173 $ 236,315 Accrued interest included in total $ 70 $ 82 $ 519 $ 17 $ 688 December 31, 2014 800 and above $ 2,272 $ 2,835 $ 31,507 $ 60 $ 36,674 750-799 5,677 8,557 66,558 583 81,375 700-749 3,111 6,358 28,179 689 38,337 650-699 3,963 5,477 16,152 615 26,207 600-649 3,434 2,408 5,128 255 11,225 550-599 2,019 1,913 1,896 134 5,962 500-549 1,128 1,036 1,672 84 3,920 Under 500 393 427 455 28 1,303 Unknown 77 81 1,842 44 2,044 Total $ 22,074 $ 29,092 $ 153,389 $ 2,492 $ 207,047 Accrued interest included in total $ 93 $ 112 $ 445 $ 19 $ 669 (1) Credit scores have been updated within the last twelve months. Mepco Finance Corporation (“Mepco”) is a wholly-owned subsidiary of our Bank that operates a vehicle service contract payment plan business throughout the United States. See Note #14 for more information about Mepco’s business. As of September 30, 2015, approximately 62.9% 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 22.5% of Mepco’s outstanding payment plan receivables as of September 30, 2015, 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 financial information on the counterparties as we evaluate the credit quality of this portfolio. The following table summarizes credit ratings of insurer or risk retention group counterparties by class of payment plan receivable: Payment Plan Receivables Full Refund Partial Refund Other Total (In thousands) September 30, 2015 AM Best rating A+ $ - $ 8 $ - $ 8 A 3,711 7,572 - 11,283 A- 3,226 753 5,470 9,449 Not rated 16,595 95 8 16,698 Total $ 23,532 $ 8,428 $ 5,478 $ 37,438 December 31, 2014 AM Best rating A+ $ - $ 43 $ - $ 43 A 10,007 6,190 - 16,197 A- 1,989 685 5,054 7,728 Not rated 15,857 176 - 16,033 Total $ 27,853 $ 7,094 $ 5,054 $ 40,001 Although Mepco has contractual recourse against various counterparties for refunds owing upon cancellation of vehicle service contracts, see Note #14 below regarding certain risks and difficulties associated with collecting these refunds. Foreclosed residential real estate properties included in other real estate and repossessed assets on our Condensed Consolidated Statements of Financial Condition totaled $2.8 million and $2.9 million at September 30, 2015 and December 31, 2014, respectively. Retail mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements totaled $1.1 million and $2.5 million at September 30, 2015 and December 31, 2014, respectively. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segments [Abstract] | |
Segments | 5. 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) Elimination (2) Total (In thousands) Total assets September 30, 2015 $ 2,323,629 $ 60,018 $ 288,708 $ (277,494 ) $ 2,394,861 December 31, 2014 2,174,536 63,378 286,158 (275,342 ) 2,248,730 For the three months ended September 30, 2015 Interest income $ 18,973 $ 1,320 $ 20 $ (20 ) $ 20,293 Net interest income 17,964 1,115 (238 ) - 18,841 Provision for loan losses (238 ) (6 ) - - (244 ) Income (loss) before income tax 7,961 (254 ) (358 ) (24 ) 7,325 Net income (loss) 5,455 (168 ) (224 ) (16 ) 5,047 2014 Interest income $ 18,444 $ 1,624 $ 25 $ (25 ) $ 20,068 Net interest income 17,254 1,338 (409 ) - 18,183 Provision for loan losses (623 ) (9 ) - - (632 ) Income (loss) before income tax 7,459 247 (408 ) (24 ) 7,274 Net income (loss) 5,048 163 (266 ) (16 ) 4,929 For the nine months ended September 30, 2015 Interest income $ 55,895 $ 4,081 $ 60 $ (60 ) $ 59,976 Net interest income 52,864 3,468 (699 ) - 55,633 Provision for loan losses (1,032 ) (5 ) - - (1,037 ) Income (loss) before income tax 23,063 (766 ) (1,097 ) (71 ) 21,129 Net income (loss) 15,623 (437 ) (693 ) (46 ) 14,447 2014 Interest income $ 55,153 $ 5,555 $ 41 $ (41 ) $ 60,708 Net interest income 51,721 4,500 (1,022 ) - 55,199 Provision for loan losses (2,018 ) (31 ) - - (2,049 ) Income (loss) before income tax 20,151 908 (1,210 ) (71 ) 19,778 Net income (loss) 14,345 607 (665 ) (168 ) 14,119 (1) Includes amounts relating to our parent company and certain insignificant operations. (2) Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary. |
Shareholders' Equity and Earnin
Shareholders' Equity and Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity and Earnings Per Common Share [Abstract] | |
Shareholders' Equity and Earnings Per Common Share | 6. Shareholders’ Equity and Earnings Per Common Share On January 21, 2015, our Board of Directors authorized a share repurchase plan (the “Repurchase Plan”) to buy back up to 5% of our outstanding common stock through December 31, 2015. 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 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 per common share follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Net income $ 5,047 $ 4,929 $ 14,447 $ 14,119 Weighted average shares outstanding (1) 22,673 22,940 22,852 22,919 Restricted stock units 230 306 283 305 Effect of stock options 118 123 120 126 Stock units for deferred compensation plan for non-employee directors 112 109 111 114 Weighted average shares outstanding for calculation of diluted earnings per share 23,133 23,478 23,366 23,464 Net income per common share Basic (1) $ 0.22 $ 0.21 $ 0.63 $ 0.62 Diluted $ 0.22 $ 0.21 $ 0.62 $ 0.60 (1) Weighted average stock options outstanding that were not considered in computing diluted net income per share because they were anti-dilutive totaled 0.03 million for both three-month periods ending September 30, 2015 and 2014, respectively and totaled 0.03 million for both nine-month periods ending September 30, 2015 and 2014, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments We are required to record derivatives on our Condensed 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 follows: September 30, 2015 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 24,746 0.1 $ 823 Mandatory commitments to sell mortgage loans 49,791 0.1 (409 ) Pay-fixed interest rate swap agreements 19,616 7.3 (674 ) Pay-variable interest rate swap agreements 19,616 7.3 674 Purchased options 1,681 5.9 126 Written options 1,681 5.9 (126 ) Total $ 117,131 2.7 $ 414 December 31, 2014 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 16,759 0.1 $ 437 Mandatory commitments to sell mortgage loans 38,600 0.1 (184 ) Pay-fixed interest rate swap agreements 3,300 9.4 (182 ) Pay-variable interest rate swap agreements 3,300 9.4 182 Total $ 61,959 1.1 $ 253 Certain financial derivative instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our Condensed 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 net gains on mortgage loans. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income may be more volatile as a result of these derivative instruments, which are not designated as hedges. During 2014, we began a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our Condensed Consolidated Statements of Operations. All of the interest rate swap agreements in the table above relate to this program. During the third quarter of 2015, we began offering to our deposit customers an equity linked time deposit product (“Altitude CD”). The Altitude CD is a time deposit that provides the customer a guaranteed return of principle at maturity plus a potential equity return (a written option), while we receive a like stream of funds based on the equity return (a purchased option). The written and purchased options will generally move in opposite directions resulting in little or no net impact on our Condensed Consolidated Statements of Operations. All of the written and purchased options in the table above relate to this Altitude CD product. The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the Condensed Consolidated Statements of Financial Condition for the periods presented: Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other assets $ 823 Other assets $ 437 Other liabilities $ - Other liabilities $ - Mandatory commitments to sell mortgage loans Other assets - Other assets - Other liabilities 409 Other liabilities 184 Pay-fixed interest rate swap agreements Other assets - Other assets - Other liabilities 674 Other liabilities 182 Pay-variable interest rate swap agreements Other assets 674 Other assets 182 Other liabilities - Other liabilities - Purchased options Other assets 126 Other assets - Other liabilities - Other liabilities - Written options Other assets - Other assets - Other liabilities 126 Other liabilities - Total derivatives $ 1,623 $ 619 $ 1,209 $ 366 The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows: Three Month Periods Ended September 30, Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain (Loss) Recognized Gain (Loss) Recognized in Income 2015 2014 Portion) 2015 2014 in Income (1) 2015 2014 (In thousands) Cash Flow Hedges Pay-fixed interest rate swap agreements (2) $ - $ - Interest expense $ - $ (95 ) $ - $ - Total $ - $ - $ - $ (95 ) $ - $ - No hedge designation Rate-lock mortgage loan commitments Net mortgage loan gains $ 281 $ (77 ) Mandatory commitments to sell mortgage loans Net mortgage loan gains (745 ) 220 Pay-fixed interest rate swap agreements Interest income (452 ) 7 Pay-variable interest rate swap agreements Interest income 452 (7 ) Purchased options Interest expense 126 - Written options Interest expense (126 ) - U.S. Treasury short position Gain on securities - 127 Total $ (464 ) $ 270 (1) For cash flow hedges, this location and amount refers to the ineffective portion. (2) Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive loss and was being amortized into earnings through December 31, 2014. Nine Month Periods Ended September 30, Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain (Loss) Recognized Gain (Loss) Recognized in Income 2015 2014 Portion) 2015 2014 in Income (1) 2015 2014 (In thousands) Cash Flow Hedges Pay-fixed interest rate swap agreements (2) $ - $ - Interest expense $ - $ (285 ) $ - $ - Total $ - $ - $ - $ (285 ) $ - $ - No hedge designation Rate-lock mortgage loan commitments Net mortgage loan gains $ 386 $ 147 Mandatory commitments to sell mortgage loans Net mortgage loan gains (225 ) (134 ) Pay-fixed interest rate swap agreements Interest income (492 ) (92 ) Pay-variable interest rate swap agreements Interest income 492 92 Purchased options Interest expense 126 - Written options Interest expense (126 ) - U.S. Treasury short position Gain on securities - 179 Total $ 161 $ 192 (1) For cash flow hedges, this location and amount refers to the ineffective portion. (2) Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive loss and was being amortized into earnings through December 31, 2014. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Intangible Assets | 8. Intangible Assets The following table summarizes intangible assets, net of amortization: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 6,118 $ 3,752 $ 6,118 $ 3,491 Amortization of other intangibles has been estimated through 2020 and thereafter in the following table. (In thousands) Three months ending December 31, 2015 $ 86 2016 347 2017 346 2018 346 2019 346 2020 and thereafter 895 Total $ 2,366 |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Share Based Compensation [Abstract] | |
Share Based Compensation | 9. 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 0.3 million shares of common stock as of September 30, 2015. The non-employee director stock purchase plan permits the issuance of additional share based payments for up to 0.2 million shares of common stock as of September 30, 2015. 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. During each first quarter period of 2015 and 2014, pursuant to our long-term incentive plan, we granted 0.07 million shares of restricted stock and 0.03 million performance stock units (“PSU”) to certain officers. The shares of restricted stock issued during 2015 cliff vest after a period of three years, the shares of restricted stock issued during 2014 vest ratably over three years and the PSUs issued in both periods cliff vest after a period of three years. The performance feature of the PSUs is based on a comparison of our total shareholder return over the three year period starting on the grant date to the total shareholder return over that period for an index of our peers in the banking industry. No long term incentive grants were made during the second or third quarters of 2015 or 2014. Our directors may elect to receive 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 fees that he or she has elected to receive in stock are issued each quarter and vest immediately. We issued 0.004 million shares and 0.011 million shares to directors during the first nine months of 2015 and 2014, respectively and expensed their value during those same periods. Total compensation expense recognized for grants pursuant to our long-term incentive plan was $0.4 million and $1.1 million during the three and nine month periods ended September 30, 2015, respectively, and was $0.3 million and $0.8 million during the same periods in 2014, respectively. The corresponding tax benefit relating to this expense was $0.1 million and $0.4 million for the three and nine month periods ended September 30, 2015, respectively and $0.1 million and $0.3 million for the same periods in 2014. Total expense recognized for non-employee director share based payments was $0.02 million and $0.05 million during the three and nine month periods ended September 30, 2015, respectively, and was $0.05 million and $0.14 million during the same periods in 2014, respectively. The corresponding tax benefit relating to this expense was $0.01 million and $0.02 million for the three and nine month periods ended September 30, 2015, respectively and $0.02 million and $0.05 million during the same periods in 2014. At September 30, 2015, the total expected compensation cost related to non-vested stock options, restricted stock, PSUs and restricted stock unit awards not yet recognized was $1.8 million. The weighted-average period over which this amount will be recognized is 1.8 years. A summary of outstanding stock option grants and related transactions follows: Number of Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1, 2015 281,820 $ 4.69 Granted - Exercised (31,450 ) 3.35 Forfeited (2,096 ) 4.77 Expired (1,924 ) 6.79 Outstanding at September 30, 2015 246,350 $ 4.85 6.35 $ 2,472 Vested and expected to vest at September 30, 2015 245,298 $ 4.84 6.35 $ 2,463 Exercisable at September 30, 2015 222,742 $ 4.70 6.22 $ 2,271 A summary of outstanding non-vested restricted stock, restricted stock units and PSUs and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 407,130 $ 6.31 Granted 108,422 13.06 Vested (249,526 ) 3.92 Forfeited (4,384 ) 12.88 Outstanding at September 30, 2015 261,642 $ 11.28 During the third quarter of 2015, 0.23 million restricted stock units relating to a grant in 2012 vested. In addition, as permitted by our long-term incentive plan, 0.07 million shares were withheld from the shares that would otherwise have been issued to executive officers for these vesting restricted stock units in order to satisfy tax withholding obligations. Certain information regarding options exercised during the periods follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Intrinsic value $ 71 $ 123 $ 314 $ 231 Cash proceeds received $ 23 $ 30 $ 105 $ 66 Tax benefit realized $ 25 $ 44 $ 110 $ 81 |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax [Abstract] | |
Income Tax | 10. Income Tax Income tax expense was $2.3 million during each three month period ended September 30, 2015 and 2014 and $6.7 million and $5.7 million during the nine months ended September 30, 2015 and 2014, respectively. We assess whether a valuation allowance should be established against our deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. The ultimate realization of this asset is primarily based on generating future income. realization of substantially all of our deferred tax assets continues to be more likely than not. We did maintain a valuation allowance against our deferred tax assets of approximately $1.0 million at both September 30, 2015 and December 31, 2014. This valuation allowance on our deferred tax assets primarily relates to state income taxes at 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. At September 30, 2015 and December 31, 2014, we had approximately $1.0 million and $1.1 million, respectively of gross unrecognized tax benefits. We do not expect the total amount of unrecognized tax benefits to significantly increase or decrease during the balance of 2015. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | 11. 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 September 30, 2015, the Bank had negative undivided profits of $15.9 million. We can request regulatory approval for a return of capital from the Bank to the parent company. During the first quarter of 2014, we requested regulatory approval for a $15.0 million return of capital from the Bank to the parent company. This return of capital request was approved by our banking regulators on March 28, 2014 and the Bank returned $15.0 million of capital to the parent company on April 9, 2014. During January of 2015, we requested regulatory approval for an additional $18.5 million return of capital from the Bank to the parent company. This return of capital request was approved by our banking regulators on February 13, 2015, and the Bank returned $18.5 million of capital to the parent company on February 17, 2015 . 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, Tier 1, and common equity Tier 1 (as of January 1, 2015) capital to risk-weighted assets and Tier 1 capital to average assets. Failure to meet minimum capital requirements can result in 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 September 30, 2015 and December 31, 2014, 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. On July 2, 2013, the Federal Reserve approved a final rule that establishes an integrated regulatory capital framework (the “New Capital Rules”). The rule implements in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act. In general, under the New Capital Rules, minimum requirements have increased for both the quantity and quality of capital held by banking organizations. Consistent with the international Basel framework, the New Capital Rules include a new minimum ratio of common equity Tier 1 capital to risk-weighted assets of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets that applies to all supervised financial institutions. The rule also raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations. As to the quality of capital, the New Capital Rules emphasize common equity Tier 1 capital, the most loss-absorbing form of capital, and implement strict eligibility criteria for regulatory capital instruments. The New Capital Rules also change the methodology for calculating risk-weighted assets to enhance risk sensitivity. The New Capital Rules became effective for us on January 1, 2015. Our actual capital amounts and ratios follow: Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) September 30, 2015 Total capital to risk-weighted assets Consolidated $ 276,230 16.98 % $ 130,163 8.00 % NA NA Independent Bank 253,647 15.61 130,004 8.00 $ 162,506 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 255,613 15.71 % $ 97,622 6.00 % NA NA Independent Bank 233,123 14.35 97,503 6.00 $ 130,005 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 238,884 14.68 % $ 73,216 4.50 % NA NA Independent Bank 233,123 14.35 73,128 4.50 $ 105,629 6.50 % Tier 1 capital to average assets Consolidated $ 255,613 11.16 % $ 91,582 4.00 % NA NA Independent Bank 233,123 10.19 91,509 4.00 $ 114,387 5.00 % December 31, 2014 Total capital to risk-weighted assets Consolidated $ 265,163 18.06 % $ 117,427 8.00 % NA NA Independent Bank 247,883 16.90 117,374 8.00 $ 146,718 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 246,628 16.80 % $ 58,714 4.00 % NA NA Independent Bank 229,361 15.63 58,687 4.00 $ 88,031 6.00 % Tier 1 capital to average assets Consolidated $ 246,628 11.18 % $ 88,206 4.00 % NA NA Independent Bank 229,361 10.46 87,687 4.00 $ 109,609 5.00 % The components of our regulatory capital are as follows: Consolidated Independent Bank September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In thousands) Total shareholders' equity $ 252,980 $ 250,371 $ 255,659 $ 257,832 Add (deduct) Accumulated other comprehensive (gain) loss for regulatory purposes (1,302 ) 5,636 (1,302 ) 5,636 Intangible assets (946 ) (2,627 ) (946 ) (2,627 ) Disallowed deferred tax assets (11,848 ) (40,500 ) (20,288 ) (30,728 ) Disallowed capitalized mortgage loan servicing rights - (752 ) - (752 ) Common equity tier 1 capital 238,884 212,128 233,123 229,361 Qualifying trust preferred securities 34,500 34,500 - - Disallowed deferred tax assets (17,771 ) - - - Tier 1 capital 255,613 246,628 233,123 229,361 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 20,617 18,535 20,524 18,522 Total risk-based capital $ 276,230 $ 265,163 $ 253,647 $ 247,883 |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 12. 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 Loans held for sale 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 September 30, 2015 and December 31, 2014, 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 Other real estate 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. Capitalized mortgage loan servicing rights Derivatives Assets and liabilities measured at fair value, including financial assets for which we have elected the fair value option, were as follows: Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2015: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 225 $ 225 $ - $ - Securities available for sale U.S. agency 50,735 - 50,735 - U.S. agency residential mortgage-backed 208,290 - 208,290 - U.S. agency commercial mortgage-backed 35,338 - 35,338 - Private label residential mortgage-backed 5,129 - 5,129 - Other asset backed 131,772 - 131,772 - Obligations of states and political subdivisions 136,732 - 136,732 - Corporate 34,106 - 34,106 - Trust preferred 2,560 - 2,560 - Loans held for sale 25,462 - 25,462 - Derivatives (1) 1,623 - 1,623 - Liabilities Derivatives (2) 1,209 - 1,209 - Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 7,931 - - 7,931 Impaired loans (4) Commercial Income producing - real estate 4,083 - - 4,083 Land, land development & construction-real estate 203 - - 203 Commercial and industrial 1,426 - - 1,426 Mortgage 1-4 Family 577 - - 577 Resort Lending 138 - - 138 Other real estate (5) Commercial Land, land development & construction-real estate 639 - - 639 Commercial and industrial 165 - - 165 Mortgage 1-4 Family 51 - - 51 Resort Lending 107 - - 107 Installment Home equity - 1st lien 36 - - 36 (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 Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2014: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 203 $ 203 $ - $ - Securities available for sale U.S. agency 35,006 - 35,006 - U.S. agency residential mortgage-backed 257,558 - 257,558 - U.S. agency commercial mortgage-backed 33,728 - 33,728 - Private label residential mortgage-backed 6,013 - 6,013 - Other asset backed 32,353 - 32,353 - Obligations of states and political subdivisions 143,415 - 143,415 - Corporate 22,664 - 22,664 - Trust preferred 2,441 - 2,441 - Loans held for sale 23,662 - 23,662 - Derivatives (1) 619 - 619 - Liabilities Derivatives (2) 366 - 366 - Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 9,197 - - 9,197 Impaired loans (4) Commercial Income producing - real estate 869 - - 869 Land, land development & construction-real estate 354 - - 354 Commercial and industrial 2,601 - - 2,601 Mortgage 1-4 Family 1,306 - - 1,306 Other real estate (5) Commercial Income producing - real estate 479 - - 479 Land, land development & construction-real estate 737 - - 737 Mortgage 1-4 Family 102 - - 102 Resort Lending 575 - - 575 Installment Home equity - 1st lien 13 - - 13 (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 nine months ended September 30, 2015 and 2014. Changes in fair values for financial assets which we have elected the fair value option for the periods presented were as follows: Changes in Fair Values for the Nine-Month Periods Ended September 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option 2015 2014 Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Securities Loans Earnings Securities Loans Earnings (In thousands) Trading securities $ 22 $ - $ 22 $ 32 $ - $ 32 Loans held for sale - 311 311 - 127 127 For those items measured at fair value pursuant to our election of the fair value option, interest income is recorded within the Condensed 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. The following represent impairment charges recognized during the three and nine month periods ended September 30, 2015 and 2014 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 $7.9 million which is net of a valuation allowance of $4.1 million at September 30, 2015, and had a carrying amount of $9.2 million which is net of a valuation allowance of $3.8 million at December 31, 2014. A recovery (charge) of $(0.9) million and $(0.3) million was included in our results of operations for the three and nine month periods ending September 30, 2015, respectively and $0.5 million and $0.04 million during the same periods in 2014. · Loans which are measured for impairment using the fair value of collateral for collateral dependent loans had a carrying amount of $10.3 million, with a valuation allowance of $3.8 million at September 30, 2015, and had a carrying amount of $8.2 million, with a valuation allowance of $3.1 million at December 31, 2014. The provision for loan losses included in our results of operations relating to impaired loans was an expense of $1.0 million and $0.5 million for the three month periods ending September 30, 2015 and 2014, respectively, and an expense of $1.9 million and $1.4 million for the nine month periods ending September 30, 2015 and 2014, respectively. · Other real estate, which is measured using the fair value of the property, had a carrying amount of $1.0 million which is net of a valuation allowance of $1.7 million at September 30, 2015, and a carrying amount of $1.9 million which is net of a valuation allowance of $2.5 million at December 31, 2014. An additional charge relating to other real estate measured at fair value of $0.03 million and $0.30 million was included in our results of operations during the three and nine month periods ended September 30, 2015, respectively and $0.3 million and $0.4 million during the same periods in 2014. We had no assets or liabilities measured at fair value on a recurring basis that used significant unobservable inputs (Level 3) during the nine months ended September 30, 2015 and 2014. Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Weighted Average (In thousands) September 30, 2015 Capitalized mortgage loan servicing rights $ 7,931 Present value of net servicing revenue Discount rate 10.03 % Cost to service $ 80 Ancillary income 24 Float rate 1.38 % Impaired loans Commercial (1) 5,309 Sales comparison approach Adjustment for differences between comparable sales (7.2 )% Income approach Capitalization rate 9.3 Mortgage 715 Sales comparison approach Adjustment for differences between comparable sales 4.1 Other real estate Commercial 804 Sales comparison approach Adjustment for differences between comparable sales (3.9 ) Mortgage and installment 194 Sales comparison approach Adjustment for differences between comparable sales 75.6 December 31, 2014 Capitalized mortgage $ 9,197 Present value of net servicing revenue Discount rate 10.07 % Cost to service $ 82 Ancillary income 25 Float rate 1.77 % Impaired loans Commercial (1) 2,751 Sales comparison approach Adjustment for differences between comparable sales (3.8 )% Income approach Capitalization rate 9.3 Mortgage 1,306 Sales comparison approach Adjustment for differences between comparable sales 8.6 Other real estate Commercial 1,216 Sales comparison approach Adjustment for differences between comparable sales (9.0 ) Mortgage and installment 690 Sales comparison approach Adjustment for differences between comparable sales 34.3 (1) In addition to the valuation techniques and unobservable inputs discussed above, at September 30, 2015 and December 31, 2014, we had an impaired collateral dependent commercial relationship that totaled $0.4 million and $1.1 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory at September 30, 2015 and also included accounts receivable at December 31, 2014. Valuation techniques at September 30, 2015, included discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values. Valuation techniques at December 31, 2014, included discounting cost and financial statement value approaches based on estimates of value recovery of each particular asset type. Discount rates used ranged from 35% to 100% of stated values. 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 for the periods presented. Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale September 30, 2015 $ 25,462 $ 935 $ 24,527 December 31, 2014 23,662 624 23,038 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Values of Financial Instruments [Abstract] | |
Fair Values of Financial Instruments | 13. 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 Interest bearing deposits - time Securities Federal Home Loan Bank and Federal Reserve Bank Stock Net loans and loans held for sale Accrued interest receivable and payable Derivative financial instruments Deposits Other borrowings Subordinated debentures The estimated recorded book balances and fair values follow: Fair Value Using Recorded Book Balance Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2015 Assets Cash and due from banks $ 52,146 $ 52,146 $ 52,146 $ - $ - Interest bearing deposits 53,051 53,051 53,051 - - Interest bearing deposits - time 13,029 13,053 - 13,053 - Trading securities 225 225 225 - - Securities available for sale 604,662 604,662 - 604,662 - Federal Home Loan Bank and Federal Reserve Bank Stock 15,286 NA NA NA NA Net loans and loans held for sale 1,468,857 1,435,597 - 25,462 1,410,135 Accrued interest receivable 6,473 6,473 8 2,068 4,397 Derivative financial instruments 1,623 1,623 - 1,623 - Liabilities Deposits with no stated maturity (1) $ 1,639,402 $ 1,639,402 $ 1,639,402 $ - $ - Deposits with stated maturity (1) 421,560 419,803 - 419,803 - Other borrowings 12,070 13,474 - 13,474 - Subordinated debentures 35,569 22,885 - 22,885 - Accrued interest payable 420 420 20 400 - Derivative financial instruments 1,209 1,209 - 1,209 - December 31, 2014 Assets Cash and due from banks $ 48,326 $ 48,326 $ 48,326 $ - $ - Interest bearing deposits 25,690 25,690 25,690 - - Interest bearing deposits - time 13,561 13,585 - 13,585 - Trading securities 203 203 203 - - Securities available for sale 533,178 533,178 - 533,178 - Federal Home Loan Bank and Federal Reserve Bank Stock 19,919 NA NA NA NA Net loans and loans held for sale 1,407,634 1,394,424 - 23,662 1,370,762 Accrued interest receivable 5,995 5,995 2 1,599 4,394 Derivative financial instruments 619 619 - 619 - Liabilities Deposits with no stated maturity (1) $ 1,534,175 $ 1,534,175 $ 1,534,175 $ - $ - Deposits with stated maturity (1) 390,127 389,139 - 389,139 - Other borrowings 12,470 14,560 - 14,560 - Subordinated debentures 35,569 23,328 - 23,328 - Accrued interest payable 380 380 21 359 - Derivative financial instruments 366 366 - 366 - (1) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $12.0 million and $13.6 million at September 30, 2015 and December 31, 2014, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $35.9 million and $40.1 million at September 30, 2015 and December 31, 2014, 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. |
Contingent Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | 14. Contingent Liabilities 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, 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 Condensed 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 September 30, 2015 and December 31, 2014, 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 $7.3 million and $7.2 million, respectively. 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. Charges related to estimated losses for vehicle service contract counterparty contingencies included in non-interest expense totaled $0.03 million for both three month periods ended September 30, 2015 and 2014, respectively and totaled $0.09 million and $0.17 million for the nine month periods ended September 30, 2015 and 2014, respectively. 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 Condensed 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. 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, Freddie Mac and Ginnie Mae). 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. The provision for loss reimbursement on sold loans was a credit of $0.04 million and zero for the three months ended September 30, 2015 and 2014, respectively and a credit of $0.06 million and $0.5 million for the nine months ended September 30, 2015 and 2014, respectively. The credit provision in the first nine months of 2015 is due primarily to the settlement of certain loss reimbursement claims at slightly lower amounts than what had been specifically reserved for previously. The credit provision in the first nine months of 2014 is due primarily to the rescission of certain loss reimbursement requests by Freddie Mac that had been pending and accrued for at the end of 2013. The reserve for loss reimbursements on sold mortgage loans totaled $0.5 million at both September 30, 2015 and December 31, 2014. This reserve is included in accrued expenses and other liabilities in our Condensed 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 levels at September 30, 2015 and December 31, 2014 also reflect the resolution of the mortgage loan origination years of 2000 to 2008 with Fannie Mae and Freddie Mac. We believe that the amounts that we have accrued for incurred losses on sold mortgage loans are appropriate given our analyses. However, future losses could exceed our current estimate. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss ("AOCL") [Abstract] | |
Accumulated Other Comprehensive Loss ("AOCL") | 15. Accumulated Other Comprehensive Loss (“AOCL”) A summary of changes in AOCL follows: Unrealized Gains (Losses) on Available for Sale Securities Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Losses on Settled Derivatives Total For the three months ended September 30, 2015 Balances at beginning of period $ 408 $ (5,798 ) $ - $ (5,390 ) Other comprehensive loss before reclassifications 894 - - 894 Amounts reclassified from AOCL - - - - Net current period other comprehensive income 894 - - 894 Balances at end of period $ 1,302 $ (5,798 ) $ - $ (4,496 ) 2014 Balances at beginning of period $ (376 ) $ (5,798 ) $ (124 ) $ (6,298 ) Other comprehensive income before reclassifications 226 - - 226 Amounts reclassified from AOCL (73 ) - 62 (11 ) Net current period other comprehensive income 153 - 62 215 Balances at end of period $ (223 ) $ (5,798 ) $ (62 ) $ (6,083 ) For the nine months ended September 30, 2015 Balances at beginning of period $ 162 $ (5,798 ) $ - $ (5,636 ) Other comprehensive income before reclassifications 1,189 - - 1,189 Amounts reclassified from AOCL (49 ) - - (49 ) Net current period other comprehensive income 1,140 - - 1,140 Balances at end of period $ 1,302 $ (5,798 ) $ - $ (4,496 ) 2014 Balances at beginning of period $ (3,200 ) $ (5,798 ) $ (247 ) $ (9,245 ) Other comprehensive income before reclassifications 3,051 - - 3,051 Amounts reclassified from AOCL (74 ) - 185 111 Net current period other comprehensive income 2,977 - 185 3,162 Balances at end of period $ (223 ) $ (5,798 ) $ (62 ) $ (6,083 ) The disproportionate tax effects from securities available for sale 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. A summary of reclassifications out of each component of AOCL for the three months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2015 Unrealized gains on available for sale securities $ - Net gains on securities - Net impairment loss recognized in earnings - Total reclassifications before tax - Tax expense $ - Reclassifications, net of tax 2014 Unrealized gains on available for sale securities $ 121 Net gains on securities (9 ) Net impairment loss recognized in earnings 112 Total reclassifications before tax 39 Tax expense $ 73 Reclassifications, net of tax Unrealized gains on settled derivatives $ (95 ) Interest expense (33 ) Tax benefit $ (62 ) Reclassification, net of tax $ 11 Total reclassifications for the period, net of tax A summary of reclassifications out of each component of AOCL for the nine months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2015 Unrealized gains on available for sale securities $ 75 Net gains on securities - Net impairment loss recognized in earnings 75 Total reclassifications before tax 26 Tax expense $ 49 Reclassifications, net of tax 2014 Unrealized gains on available for sale securities $ 123 Net gains on securities (9 ) Net impairment loss recognized in earnings 114 Total reclassifications before tax 40 Tax expense $ 74 Reclassifications, net of tax Unrealized gains on settled derivatives $ (285 ) Interest expense (100 ) Tax benefit $ (185 ) Reclassification, net of tax $ (111 ) Total reclassifications for the period, net of tax |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 amended guidance became effective for us on January 1, 2015, and did not have a material impact on our consolidated operating results or financial condition. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) ”. In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation (Topic 718) – Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period”. This ASU amends existing guidance related to the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. These amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This amended guidance is effective for us on January 1, 2016, and is not expected to have a material impact on our consolidated operating results or financial condition. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Securities [Abstract] | |
Securities available for sale | Securities available for sale consist of the following: Amortized Cost Unrealized Fair Value Gains Losses (In thousands) September 30, 2015 U.S. agency $ 50,447 $ 344 $ 56 $ 50,735 U.S. agency residential mortgage-backed 206,387 2,116 213 208,290 U.S. agency commercial mortgage-backed 35,109 246 17 35,338 Private label residential mortgage-backed 5,295 176 342 5,129 Other asset backed 131,911 110 249 131,772 Obligations of states and political subdivisions 136,508 1,161 937 136,732 Corporate 34,088 52 34 34,106 Trust preferred 2,914 - 354 2,560 Total $ 602,659 $ 4,205 $ 2,202 $ 604,662 December 31, 2014 U.S. agency $ 34,936 $ 133 $ 63 $ 35,006 U.S. agency residential mortgage-backed 256,387 1,838 667 257,558 U.S. agency commercial mortgage-backed 33,779 68 119 33,728 Private label residential mortgage-backed 6,216 187 390 6,013 Other asset backed 32,314 77 38 32,353 Obligations of states and political subdivisions 143,698 961 1,244 143,415 Corporate 22,690 53 79 22,664 Trust preferred 2,910 - 469 2,441 Total $ 532,930 $ 3,317 $ 3,069 $ 533,178 |
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 follows: Less Than Twelve Months Twelve Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (In thousands) September 30, 2015 U.S. agency $ 19,021 $ 50 $ 1,170 $ 6 $ 20,191 $ 56 U.S. agency residential mortgage-backed 26,884 94 16,024 119 42,908 213 U.S. agency commercial mortgage-backed 4,389 16 1,396 1 5,785 17 Private label residential mortgage-backed - - 3,542 342 3,542 342 Other asset backed 57,799 131 5,414 118 63,213 249 Obligations of states and political subdivisions 27,995 422 12,393 515 40,388 937 Corporate 11,098 34 - - 11,098 34 Trust preferred - - 2,560 354 2,560 354 Total $ 147,186 $ 747 $ 42,499 $ 1,455 $ 189,685 $ 2,202 December 31, 2014 U.S. agency $ 12,851 $ 58 $ 606 $ 5 $ 13,457 $ 63 U.S. agency residential mortgage-backed 89,547 531 15,793 136 105,340 667 U.S. agency commercial mortgage-backed 21,325 119 - - 21,325 119 Private label residential mortgage-backed 208 1 4,013 389 4,221 390 Other asset backed 2,960 15 8,729 23 11,689 38 Obligations of states and political subdivisions 28,114 106 37,540 1,138 65,654 1,244 Corporate 8,660 79 - - 8,660 79 Trust preferred - - 2,441 469 2,441 469 Total $ 163,665 $ 909 $ 69,122 $ 2,160 $ 232,787 $ 3,069 |
Trust preferred securities | The following table breaks out our trust preferred securities in further detail as of September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss (In thousands) Trust preferred securities Rated issues $ 1,788 $ (127 ) $ 1,643 $ (267 ) Unrated issues 772 (227 ) 798 (202 ) |
Private label residential mortgage backed securities below investment grade | At September 30, 2015, three private label residential mortgage-backed securities had credit related OTTI and are summarized as follows: Senior Security Super Senior Security Senior Support Security Total (In thousands) As of September 30, 2015 Fair value $ 1,690 $ 1,394 $ 91 $ 3,175 Amortized cost 1,722 1,309 - 3,031 Non-credit unrealized loss 32 - - 32 Unrealized gain - 85 91 176 Cumulative credit related OTTI 757 457 380 1,594 Credit related OTTI recognized in our Condensed Consolidated Statements of Operations For the three months ended September 30, 2015 $ - $ - $ - $ - 2014 9 - - 9 For the nine months ended September 30, 2015 - - - - 2014 9 - - 9 |
Credit losses recognized in earnings on securities available for sale | A roll forward of credit losses recognized in earnings on securities available for sale for the three and nine month periods ending September 30, follows: Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In thousands) Balance at beginning of period $ 1,844 $ 1,835 $ 1,844 $ 1,835 Additions to credit losses on securities for which no previous OTTI was recognized - - - - Increases to credit losses on securities for which OTTI was previously recognized - 9 - 9 Balance at end of period $ 1,844 $ 1,844 $ 1,844 $ 1,844 |
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 September 30, 2015, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 29,195 $ 29,231 Maturing after one year but within five years 69,021 69,252 Maturing after five years but within ten years 45,618 45,985 Maturing after ten years 80,123 79,665 223,957 224,133 U.S. agency residential mortgage-backed 206,387 208,290 U.S. agency commercial mortgage-backed 35,109 35,338 Private label residential mortgage-backed 5,295 5,129 Other asset backed 131,911 131,772 Total $ 602,659 $ 604,662 |
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 for the nine month periods ending September 30, follows: Proceeds Realized Gains (1) Losses (In thousands) 2015 $ 11,786 $ 75 $ - 2014 7,630 123 - (1) Gains in 2014 exclude $0.179 million of unrealized gain related to a U.S. Treasury short position. |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans [Abstract] | |
Analysis of allowance for loan losses by portfolio segment | An analysis of the allowance for loan losses by portfolio segment for the three months ended September 30, follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2015 Balance at beginning of period $ 6,707 $ 11,465 $ 1,461 $ 65 $ 4,888 $ 24,586 Additions (deductions) Provision for loan losses (26 ) (47 ) (49 ) (5 ) (117 ) (244 ) Recoveries credited to allowance 637 286 250 - - 1,173 Loans charged against the allowance (190 ) (379 ) (342 ) - - (911 ) Balance at end of period $ 7,128 $ 11,325 $ 1,320 $ 60 $ 4,771 $ 24,604 2014 Balance at beginning of period $ 5,175 $ 15,542 $ 1,988 $ 80 $ 5,412 $ 28,197 Additions (deductions) Provision for loan losses (601 ) (9 ) 32 (8 ) (46 ) (632 ) Recoveries credited to allowance 999 197 283 - - 1,479 Loans charged against the allowance (385 ) (729 ) (422 ) - - (1,536 ) Balance at end of period $ 5,188 $ 15,001 $ 1,881 $ 72 $ 5,366 $ 27,508 An analysis of the allowance for loan losses by portfolio segment for the nine months ended September 30, follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) 2015 Balance at beginning of period $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Additions (deductions) Provision for loan losses 479 (881 ) (179 ) (4 ) (452 ) (1,037 ) Recoveries credited to allowance 1,722 843 853 - - 3,418 Loans charged against the allowance (518 ) (2,081 ) (1,168 ) - - (3,767 ) Balance at end of period $ 7,128 $ 11,325 $ 1,320 $ 60 $ 4,771 $ 24,604 2014 Balance at beginning of period $ 6,827 $ 17,195 $ 2,246 $ 97 $ 5,960 $ 32,325 Additions (deductions) Provision for loan losses (1,164 ) (395 ) 132 (28 ) (594 ) (2,049 ) Recoveries credited to allowance 3,492 1,055 886 5 - 5,438 Loans charged against the allowance (3,967 ) (2,854 ) (1,383 ) (2 ) - (8,206 ) Balance at end of period $ 5,188 $ 15,001 $ 1,881 $ 72 $ 5,366 $ 27,508 |
Allowance for loan losses and recorded investment in loans by portfolio segment | Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Payment Plan Receivables Subjective Allocation Total (In thousands) September 30, 2015 Allowance for loan losses Individually evaluated for impairment $ 4,048 $ 8,244 $ 484 $ - $ - $ 12,776 Collectively evaluated for impairment 3,080 3,081 836 60 4,771 11,828 Total ending allowance balance $ 7,128 $ 11,325 $ 1,320 $ 60 $ 4,771 $ 24,604 Loans Individually evaluated for impairment $ 30,328 $ 67,871 $ 6,005 $ - $ 104,204 Collectively evaluated for impairment 697,528 402,934 230,310 37,438 1,368,210 Total loans recorded investment 727,856 470,805 236,315 37,438 1,472,414 Accrued interest included in recorded investment 1,500 2,227 688 - 4,415 Total loans $ 726,356 $ 468,578 $ 235,627 $ 37,438 $ 1,467,999 December 31, 2014 Allowance for loan losses Individually evaluated for impairment $ 3,194 $ 9,311 $ 728 $ - $ - $ 13,233 Collectively evaluated for impairment 2,251 4,133 1,086 64 5,223 12,757 Total ending allowance balance $ 5,445 $ 13,444 $ 1,814 $ 64 $ 5,223 $ 25,990 Loans Individually evaluated for impairment $ 34,147 $ 72,340 $ 6,679 $ - $ 113,166 Collectively evaluated for impairment 658,423 402,458 200,368 40,001 1,301,250 Total loans recorded investment 692,570 474,798 207,047 40,001 1,414,416 Accrued interest included in recorded investment 1,615 2,170 669 - 4,454 Total loans $ 690,955 $ 472,628 $ 206,378 $ 40,001 $ 1,409,962 |
Loans on non-accrual status and past due more than 90 days | Loans on non-accrual status and past due more than 90 days (“Non-performing Loans”) follow: 90+ and Still Accruing Non- Accrual Total Non- Performing Loans (In thousands) September 30, 2015 Commercial Income producing - real estate $ - $ 5,135 $ 5,135 Land, land development and construction - real estate - 533 533 Commercial and industrial - 2,318 2,318 Mortgage 1-4 family - 5,095 5,095 Resort lending - 1,301 1,301 Home equity - 1st lien - 191 191 Home equity - 2nd lien - 189 189 Installment Home equity - 1st lien - 175 175 Home equity - 2nd lien - 445 445 Loans not secured by real estate - 430 430 Other - 2 2 Payment plan receivables Full refund - 6 6 Partial refund - 10 10 Other - 4 4 Total recorded investment $ - $ 15,834 $ 15,834 Accrued interest included in recorded investment $ - $ - $ - December 31, 2014 Commercial Income producing - real estate $ - $ 1,233 $ 1,233 Land, land development and construction - real estate - 594 594 Commercial and industrial - 2,746 2,746 Mortgage 1-4 family 7 5,945 5,952 Resort lending - 2,168 2,168 Home equity - 1st lien - 331 331 Home equity - 2nd lien - 605 605 Installment Home equity - 1st lien - 576 576 Home equity - 2nd lien - 517 517 Loans not secured by real estate - 454 454 Other - 48 48 Payment plan receivables Full refund - 2 2 Partial refund - 12 12 Other - - - Total recorded investment $ 7 $ 15,231 $ 15,238 Accrued interest included in recorded investment $ - $ - $ - |
Aging analysis of loans by class | An aging analysis of loans by class follows: Loans Past Due Loans not Past Due Total Loans 30-59 days 60-89 days 90+ days Total (In thousands) September 30, 2015 Commercial Income producing - real estate $ 183 $ - $ 660 $ 843 $ 274,107 $ 274,950 Land, land development and construction - real estate - 119 204 323 41,899 42,222 Commercial and industrial 2,315 320 368 3,003 407,681 410,684 Mortgage 1-4 family 2,513 662 5,095 8,270 271,130 279,400 Resort lending 309 150 1,301 1,760 116,528 118,288 Home equity - 1st lien 39 23 191 253 22,252 22,505 Home equity - 2nd lien 331 - 189 520 50,092 50,612 Installment Home equity - 1st lien 286 65 175 526 17,954 18,480 Home equity - 2nd lien 191 53 445 689 21,616 22,305 Loans not secured by real estate 474 132 430 1,036 192,321 193,357 Other 6 2 2 10 2,163 2,173 Payment plan receivables Full refund 563 115 6 684 22,848 23,532 Partial refund 710 249 10 969 7,459 8,428 Other 112 16 4 132 5,346 5,478 Total recorded investment $ 8,032 $ 1,906 $ 9,080 $ 19,018 $ 1,453,396 $ 1,472,414 Accrued interest included in recorded investment $ 113 $ 18 $ - $ 131 $ 4,284 $ 4,415 December 31, 2014 Commercial Income producing - real estate $ 89 $ - $ 214 $ 303 $ 252,763 $ 253,066 Land, land development and construction - real estate 131 - 223 354 33,984 34,338 Commercial and industrial 2,391 279 209 2,879 402,287 405,166 Mortgage 1-4 family 1,877 1,638 5,952 9,467 269,719 279,186 Resort lending 226 - 2,168 2,394 126,342 128,736 Home equity - 1st lien 39 50 331 420 19,782 20,202 Home equity - 2nd lien 711 89 605 1,405 45,269 46,674 Installment Home equity - 1st lien 466 37 576 1,079 20,995 22,074 Home equity - 2nd lien 369 81 517 967 28,125 29,092 Loans not secured by real estate 589 231 454 1,274 152,115 153,389 Other 15 3 48 66 2,426 2,492 Payment plan receivables Full refund 838 214 2 1,054 26,799 27,853 Partial refund 409 123 12 544 6,550 7,094 Other 96 24 - 120 4,934 5,054 Total recorded investment $ 8,246 $ 2,769 $ 11,311 $ 22,326 $ 1,392,090 $ 1,414,416 Accrued interest included in recorded investment $ 55 $ 29 $ - $ 84 $ 4,370 $ 4,454 |
Impaired loans | Impaired loans are as follows : September 30, 2015 December 31, 2014 Impaired loans with no allocated allowance (In thousands) TDR $ 6,416 $ 9,325 Non - TDR 204 299 Impaired loans with an allocated allowance TDR - allowance based on collateral 3,970 5,879 TDR - allowance based on present value cash flow 86,985 94,970 Non - TDR - allowance based on collateral 6,281 2,296 Non - TDR - allowance based on present value cash flow - - Total impaired loans $ 103,856 $ 112,769 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 1,575 $ 2,025 TDR - allowance based on present value cash flow 8,952 10,188 Non - TDR - allowance based on collateral 2,249 1,020 Non - TDR - allowance based on present value cash flow - - Total amount of allowance for loan losses allocated $ 12,776 $ 13,233 Impaired loans by class are as follows (1): September 30, 2015 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 4,778 $ 4,977 $ - $ 5,868 $ 6,077 $ - Land, land development & construction-real estate 851 1,425 - 1,051 1,606 - Commercial and industrial 985 982 - 2,685 2,667 - Mortgage 1-4 family 23 166 - - 49 - Resort lending - - - 48 397 - Home equity - 1st lien - - - - - - Home equity - 2nd lien - - - - - - Installment Home equity - 1st lien - 36 - - 40 - Home equity - 2nd lien - - - - - - Loans not secured by real estate - - - - - - Other - - - - - - 6,637 7,586 - 9,652 10,836 - With an allowance recorded: Commercial Income producing - real estate 16,414 17,414 1,357 12,836 13,797 689 Land, land development & construction-real estate 2,061 2,140 421 3,456 3,528 499 Commercial and industrial 5,239 5,549 2,270 8,251 8,486 2,006 Mortgage 1-4 family 49,245 51,392 5,437 53,206 56,063 6,195 Resort lending 18,328 18,591 2,786 18,799 18,963 3,075 Home equity - 1st lien 155 172 11 162 177 14 Home equity - 2nd lien 120 201 10 125 205 27 Installment Home equity - 1st lien 2,434 2,610 145 2,744 2,930 219 Home equity - 2nd lien 2,931 2,942 285 3,212 3,215 419 Loans not secured by real estate 631 689 53 711 835 89 Other 9 9 1 12 12 1 97,567 101,709 12,776 103,514 108,211 13,233 Total Commercial Income producing - real estate 21,192 22,391 1,357 18,704 19,874 689 Land, land development & construction-real estate 2,912 3,565 421 4,507 5,134 499 Commercial and industrial 6,224 6,531 2,270 10,936 11,153 2,006 Mortgage 1-4 family 49,268 51,558 5,437 53,206 56,112 6,195 Resort lending 18,328 18,591 2,786 18,847 19,360 3,075 Home equity - 1st lien 155 172 11 162 177 14 Home equity - 2nd lien 120 201 10 125 205 27 Installment Home equity - 1st lien 2,434 2,646 145 2,744 2,970 219 Home equity - 2nd lien 2,931 2,942 285 3,212 3,215 419 Loans not secured by real estate 631 689 53 711 835 89 Other 9 9 1 12 12 1 Total $ 104,204 $ 109,295 $ 12,776 $ 113,166 $ 119,047 $ 13,233 Accrued interest included in recorded investment $ 348 $ 397 (1) There were no impaired payment plan receivables at September 30, 2015 or December 31, 2014. |
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 three month periods ending September 30, follows (1): 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 5,133 $ 45 $ 8,255 $ 103 Land, land development & construction-real estate 932 14 859 15 Commercial and industrial 1,922 68 3,397 63 Mortgage 1-4 family 24 3 66 - Resort lending - - 42 1 Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Loans not secured by real estate - - - - Other - - - - 8,011 130 12,619 182 With an allowance recorded: Commercial Income producing - real estate 14,655 154 11,486 136 Land, land development & construction-real estate 1,993 2 4,092 38 Commercial and industrial 6,431 37 7,936 51 Mortgage 1-4 family 49,706 554 55,633 558 Resort lending 18,414 163 19,351 195 Home equity - 1st lien 157 2 165 2 Home equity - 2nd lien 185 - 39 - Installment Home equity - 1st lien 2,474 47 2,801 43 Home equity - 2nd lien 2,999 47 3,375 46 Loans not secured by real estate 645 10 699 9 Other 10 - 14 - 97,669 1,016 105,591 1,078 Total Commercial Income producing - real estate 19,788 199 19,741 239 Land, land development & construction-real estate 2,925 16 4,951 53 Commercial and industrial 8,353 105 11,333 114 Mortgage 1-4 family 49,730 557 55,699 558 Resort lending 18,414 163 19,393 196 Home equity - 1st lien 157 2 165 2 Home equity - 2nd lien 185 - 39 - Installment Home equity - 1st lien 2,474 47 2,801 43 Home equity - 2nd lien 2,999 47 3,375 46 Loans not secured by real estate 645 10 699 9 Other 10 - 14 - Total $ 105,680 $ 1,146 $ 118,210 $ 1,260 (1) There were no impaired payment plan receivables during the three month periods ended September 30, 2015 and 2014, respectively. Average recorded investment in and interest income earned on impaired loans by class for the nine month periods ending September 30, follows (1): 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 5,490 $ 170 $ 8,109 $ 289 Land, land development & construction-real estate 986 57 1,168 43 Commercial and industrial 2,345 195 3,517 129 Mortgage 1-4 family 18 5 37 - Resort lending 15 - 38 1 Home equity line of credit - 1st lien - - - - Home equity line of credit - 2nd lien - - - - Installment Home equity installment - 1st lien - 1 - 1 Home equity installment - 2nd lien - - - - Loans not secured by real estate - - - - Other - - - - 8,854 428 12,869 463 With an allowance recorded: Commercial Income producing - real estate 13,752 452 12,756 417 Land, land development & construction-real estate 2,351 35 4,059 120 Commercial and industrial 7,304 117 8,562 209 Mortgage 1-4 family 51,078 1,644 56,545 1,777 Resort lending 18,523 507 19,623 581 Home equity line of credit - 1st lien 159 6 159 5 Home equity line of credit - 2nd lien 154 6 40 1 Installment Home equity installment - 1st lien 2,582 141 2,860 132 Home equity installment - 2nd lien 3,086 147 3,396 143 Loans not secured by real estate 669 29 721 26 Other 11 1 15 1 99,669 3,085 108,736 3,412 Total Commercial Income producing - real estate 19,242 622 20,865 706 Land, land development & construction-real estate 3,337 92 5,227 163 Commercial and industrial 9,649 312 12,079 338 Mortgage 1-4 family 51,096 1,649 56,582 1,777 Resort lending 18,538 507 19,661 582 Home equity line of credit - 1st lien 159 6 159 5 Home equity line of credit - 2nd lien 154 6 40 1 Installment Home equity installment - 1st lien 2,582 142 2,860 133 Home equity installment - 2nd lien 3,086 147 3,396 143 Loans not secured by real estate 669 29 721 26 Other 11 1 15 1 Total $ 108,523 $ 3,513 $ 121,605 $ 3,875 (1) There were no impaired payment plan receivables during the nine month periods ended September 30, 2015 and 2014, respectively. |
Troubled debt restructurings | Troubled debt restructurings follow: September 30, 2015 Commercial Retail Total (In thousands) Performing TDRs $ 22,257 $ 69,726 $ 91,983 Non-performing TDRs(1) 1,501 3,887 (2) 5,388 Total $ 23,758 $ 73,613 $ 97,371 December 31, 2014 Commercial Retail Total (In thousands) Performing TDRs $ 29,475 $ 73,496 $ 102,971 Non-performing TDRs(1) 1,978 5,225 (2) 7,203 Total $ 31,453 $ 78,721 $ 110,174 (1) Included in non-performing loans table above. (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 three-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 1 48 26 Mortgage 1-4 family 3 343 344 Resort lending - - - Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien - - - Home equity - 2nd lien - - - Loans not secured by real estate 1 19 19 Other - - - Total 5 $ 410 $ 389 2014 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate 1 40 36 Commercial and industrial 5 716 693 Mortgage 1-4 family 1 87 87 Resort lending 1 378 367 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 3 118 96 Home equity - 2nd lien - - - Loans not secured by real estate 1 55 53 Other - - - Total 12 $ 1,394 $ 1,332 Loans that have been classified as troubled debt restructurings during the nine-month periods ended Number of Contracts Pre-modification Recorded Balance Post-modification Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate 2 $ 229 $ 234 Land, land development & construction-real estate - - - Commercial and industrial 4 301 273 Mortgage 1-4 family 9 1,373 1,189 Resort lending 1 313 309 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 5 190 164 Home equity - 2nd lien 3 58 58 Loans not secured by real estate 2 19 25 Other - - - Total 26 $ 2,483 $ 2,252 2014 Commercial Income producing - real estate 3 $ 354 $ 326 Land, land development & construction-real estate 2 55 50 Commercial and industrial 11 2,083 1,524 Mortgage 1-4 family 8 1,037 1,049 Resort lending 4 1,011 997 Home equity - 1st lien 1 17 13 Home equity - 2nd lien - - - Installment Home equity - 1st lien 8 538 465 Home equity - 2nd lien 5 294 284 Loans not secured by real estate 3 88 80 Other - - - Total 45 $ 5,477 $ 4,788 |
Troubled debt restructuring during the past twelve months that subsequently defaulted | Loans that have been classified as troubled debt restructurings during the past twelve months and that Number of Contracts Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial - - Mortgage 1-4 family 1 54 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate - - Other - - 1 $ 54 2014 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial 1 66 Mortgage 1-4 family 1 125 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate - - Other - - 2 $ 191 Loans that have been classified as troubled debt restructurings during the past twelve months and that Number of Contracts Recorded Balance (Dollars in thousands) 2015 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial 2 157 Mortgage 1-4 family 1 54 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate 1 4 Other - - 4 $ 215 2014 Commercial Income producing - real estate - $ - Land, land development & construction-real estate - - Commercial and industrial 2 319 Mortgage 1-4 family 1 125 Resort lending - - Home equity - 1st lien - - Home equity - 2nd lien - - Installment Home equity - 1st lien - - Home equity - 2nd lien - - Loans not secured by real estate - - Other - - 3 $ 444 |
Summary of loan ratings by loan class | The following table summarizes loan ratings by loan class for our commercial loan segment: Commercial Non-watch Watch Substandard Non- Total (In thousands) September 30, 2015 Income producing - real estate $ 261,676 $ 7,013 $ 1,126 $ 5,135 $ 274,950 Land, land development and construction - real estate 38,135 3,307 247 533 42,222 Commercial and industrial 371,193 29,285 7,888 2,318 410,684 Total $ 671,004 $ 39,605 $ 9,261 $ 7,986 $ 727,856 Accrued interest included in total $ 1,304 $ 189 $ 7 $ - $ 1,500 December 31, 2014 Income producing - real estate $ 241,266 $ 8,649 $ 1,918 $ 1,233 $ 253,066 Land, land development and construction - real estate 30,869 2,485 390 594 34,338 Commercial and industrial 372,947 23,475 5,998 2,746 405,166 Total $ 645,082 $ 34,609 $ 8,306 $ 4,573 $ 692,570 Accrued interest included in total $ 1,479 $ 111 $ 25 $ - $ 1,615 The following tables summarize credit scores by loan class for our mortgage and installment loan segments: Mortgage (1) 1-4 Family Resort Lending Home Equity 1st Lien Home Equity 2nd Lien Total (In thousands) September 30, 2015 800 and above $ 27,538 $ 12,627 $ 4,859 $ 6,717 $ 51,741 750-799 77,238 42,522 6,280 16,387 142,427 700-749 50,309 33,785 4,076 11,985 100,155 650-699 52,898 16,771 3,565 8,022 81,256 600-649 28,698 5,666 1,872 3,639 39,875 550-599 16,809 2,546 647 1,957 21,959 500-549 13,983 1,253 758 1,089 17,083 Under 500 4,098 992 210 404 5,704 Unknown 7,829 2,126 238 412 10,605 Total $ 279,400 $ 118,288 $ 22,505 $ 50,612 $ 470,805 Accrued interest included in total $ 1,427 $ 508 $ 92 $ 200 $ 2,227 December 31, 2014 800 and above $ 27,918 $ 14,484 $ 3,863 $ 6,225 $ 52,490 750-799 72,674 45,950 6,128 14,323 139,075 700-749 52,843 32,660 3,054 9,642 98,199 650-699 51,664 20,250 3,257 8,194 83,365 600-649 27,770 6,538 1,704 3,862 39,874 550-599 21,361 3,639 994 1,721 27,715 500-549 14,575 2,156 699 1,401 18,831 Under 500 6,306 875 261 632 8,074 Unknown 4,075 2,184 242 674 7,175 Total $ 279,186 $ 128,736 $ 20,202 $ 46,674 $ 474,798 Accrued interest included in total $ 1,311 $ 562 $ 88 $ 209 $ 2,170 (1) Credit scores have been updated within the last twelve months. Installment (1) Home Equity 1st Lien Home Equity 2nd Lien Loans not Secured by Real Estate Other Total (In thousands) September 30, 2015 800 and above $ 1,953 $ 1,840 $ 40,348 $ 59 $ 44,200 750-799 4,411 6,624 89,310 568 100,913 700-749 2,685 4,667 38,237 617 46,206 650-699 3,783 4,138 15,224 479 23,624 600-649 2,161 2,254 4,758 260 9,433 550-599 1,919 1,547 2,080 124 5,670 500-549 760 851 976 50 2,637 Under 500 744 280 461 11 1,496 Unknown 64 104 1,963 5 2,136 Total $ 18,480 $ 22,305 $ 193,357 $ 2,173 $ 236,315 Accrued interest included in total $ 70 $ 82 $ 519 $ 17 $ 688 December 31, 2014 800 and above $ 2,272 $ 2,835 $ 31,507 $ 60 $ 36,674 750-799 5,677 8,557 66,558 583 81,375 700-749 3,111 6,358 28,179 689 38,337 650-699 3,963 5,477 16,152 615 26,207 600-649 3,434 2,408 5,128 255 11,225 550-599 2,019 1,913 1,896 134 5,962 500-549 1,128 1,036 1,672 84 3,920 Under 500 393 427 455 28 1,303 Unknown 77 81 1,842 44 2,044 Total $ 22,074 $ 29,092 $ 153,389 $ 2,492 $ 207,047 Accrued interest included in total $ 93 $ 112 $ 445 $ 19 $ 669 (1) Credit scores have been updated within the last twelve months. The following table summarizes credit ratings of insurer or risk retention group counterparties by class of payment plan receivable: Payment Plan Receivables Full Refund Partial Refund Other Total (In thousands) September 30, 2015 AM Best rating A+ $ - $ 8 $ - $ 8 A 3,711 7,572 - 11,283 A- 3,226 753 5,470 9,449 Not rated 16,595 95 8 16,698 Total $ 23,532 $ 8,428 $ 5,478 $ 37,438 December 31, 2014 AM Best rating A+ $ - $ 43 $ - $ 43 A 10,007 6,190 - 16,197 A- 1,989 685 5,054 7,728 Not rated 15,857 176 - 16,033 Total $ 27,853 $ 7,094 $ 5,054 $ 40,001 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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) Elimination (2) Total (In thousands) Total assets September 30, 2015 $ 2,323,629 $ 60,018 $ 288,708 $ (277,494 ) $ 2,394,861 December 31, 2014 2,174,536 63,378 286,158 (275,342 ) 2,248,730 For the three months ended September 30, 2015 Interest income $ 18,973 $ 1,320 $ 20 $ (20 ) $ 20,293 Net interest income 17,964 1,115 (238 ) - 18,841 Provision for loan losses (238 ) (6 ) - - (244 ) Income (loss) before income tax 7,961 (254 ) (358 ) (24 ) 7,325 Net income (loss) 5,455 (168 ) (224 ) (16 ) 5,047 2014 Interest income $ 18,444 $ 1,624 $ 25 $ (25 ) $ 20,068 Net interest income 17,254 1,338 (409 ) - 18,183 Provision for loan losses (623 ) (9 ) - - (632 ) Income (loss) before income tax 7,459 247 (408 ) (24 ) 7,274 Net income (loss) 5,048 163 (266 ) (16 ) 4,929 For the nine months ended September 30, 2015 Interest income $ 55,895 $ 4,081 $ 60 $ (60 ) $ 59,976 Net interest income 52,864 3,468 (699 ) - 55,633 Provision for loan losses (1,032 ) (5 ) - - (1,037 ) Income (loss) before income tax 23,063 (766 ) (1,097 ) (71 ) 21,129 Net income (loss) 15,623 (437 ) (693 ) (46 ) 14,447 2014 Interest income $ 55,153 $ 5,555 $ 41 $ (41 ) $ 60,708 Net interest income 51,721 4,500 (1,022 ) - 55,199 Provision for loan losses (2,018 ) (31 ) - - (2,049 ) Income (loss) before income tax 20,151 908 (1,210 ) (71 ) 19,778 Net income (loss) 14,345 607 (665 ) (168 ) 14,119 (1) Includes amounts relating to our parent company and certain insignificant operations. (2) Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary. |
Shareholders' Equity and Earn27
Shareholders' Equity and Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Shareholders' Equity and Earnings Per Common Share [Abstract] | |
Reconciliation of basic and diluted net income per share | A reconciliation of basic and diluted net income per common share follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands, except per share amounts) Net income $ 5,047 $ 4,929 $ 14,447 $ 14,119 Weighted average shares outstanding (1) 22,673 22,940 22,852 22,919 Restricted stock units 230 306 283 305 Effect of stock options 118 123 120 126 Stock units for deferred compensation plan for non-employee directors 112 109 111 114 Weighted average shares outstanding for calculation of diluted earnings per share 23,133 23,478 23,366 23,464 Net income per common share Basic (1) $ 0.22 $ 0.21 $ 0.63 $ 0.62 Diluted $ 0.22 $ 0.21 $ 0.62 $ 0.60 (1) |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 follows: September 30, 2015 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 24,746 0.1 $ 823 Mandatory commitments to sell mortgage loans 49,791 0.1 (409 ) Pay-fixed interest rate swap agreements 19,616 7.3 (674 ) Pay-variable interest rate swap agreements 19,616 7.3 674 Purchased options 1,681 5.9 126 Written options 1,681 5.9 (126 ) Total $ 117,131 2.7 $ 414 December 31, 2014 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 16,759 0.1 $ 437 Mandatory commitments to sell mortgage loans 38,600 0.1 (184 ) Pay-fixed interest rate swap agreements 3,300 9.4 (182 ) Pay-variable interest rate swap agreements 3,300 9.4 182 Total $ 61,959 1.1 $ 253 |
Fair value of derivative instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Derivatives not designated as hedging instruments Rate-lock mortgage loan commitments Other assets $ 823 Other assets $ 437 Other liabilities $ - Other liabilities $ - Mandatory commitments to sell mortgage loans Other assets - Other assets - Other liabilities 409 Other liabilities 184 Pay-fixed interest rate swap agreements Other assets - Other assets - Other liabilities 674 Other liabilities 182 Pay-variable interest rate swap agreements Other assets 674 Other assets 182 Other liabilities - Other liabilities - Purchased options Other assets 126 Other assets - Other liabilities - Other liabilities - Written options Other assets - Other assets - Other liabilities 126 Other liabilities - Total derivatives $ 1,623 $ 619 $ 1,209 $ 366 |
Effect of derivative financial instruments on condensed consolidated statement of operation | The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows: Three Month Periods Ended September 30, Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain (Loss) Recognized Gain (Loss) Recognized in Income 2015 2014 Portion) 2015 2014 in Income (1) 2015 2014 (In thousands) Cash Flow Hedges Pay-fixed interest rate swap agreements (2) $ - $ - Interest expense $ - $ (95 ) $ - $ - Total $ - $ - $ - $ (95 ) $ - $ - No hedge designation Rate-lock mortgage loan commitments Net mortgage loan gains $ 281 $ (77 ) Mandatory commitments to sell mortgage loans Net mortgage loan gains (745 ) 220 Pay-fixed interest rate swap agreements Interest income (452 ) 7 Pay-variable interest rate swap agreements Interest income 452 (7 ) Purchased options Interest expense 126 - Written options Interest expense (126 ) - U.S. Treasury short position Gain on securities - 127 Total $ (464 ) $ 270 (1) For cash flow hedges, this location and amount refers to the ineffective portion. (2) Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive loss and was being amortized into earnings through December 31, 2014. Nine Month Periods Ended September 30, Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) Location of Gain (Loss) Recognized Gain (Loss) Recognized in Income 2015 2014 Portion) 2015 2014 in Income (1) 2015 2014 (In thousands) Cash Flow Hedges Pay-fixed interest rate swap agreements (2) $ - $ - Interest expense $ - $ (285 ) $ - $ - Total $ - $ - $ - $ (285 ) $ - $ - No hedge designation Rate-lock mortgage loan commitments Net mortgage loan gains $ 386 $ 147 Mandatory commitments to sell mortgage loans Net mortgage loan gains (225 ) (134 ) Pay-fixed interest rate swap agreements Interest income (492 ) (92 ) Pay-variable interest rate swap agreements Interest income 492 92 Purchased options Interest expense 126 - Written options Interest expense (126 ) - U.S. Treasury short position Gain on securities - 179 Total $ 161 $ 192 (1) For cash flow hedges, this location and amount refers to the ineffective portion. (2) Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive loss and was being amortized into earnings through December 31, 2014. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Intangible Assets [Abstract] | |
Other intangible assets, net of amortization | The following table summarizes intangible assets, net of amortization: September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 6,118 $ 3,752 $ 6,118 $ 3,491 |
Estimated amortization of other intangible assets | Amortization of other intangibles has been estimated through 2020 and thereafter in the following table. (In thousands) Three months ending December 31, 2015 $ 86 2016 347 2017 346 2018 346 2019 346 2020 and thereafter 895 Total $ 2,366 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Shares Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregated Intrinsic Value (In thousands) Outstanding at January 1, 2015 281,820 $ 4.69 Granted - Exercised (31,450 ) 3.35 Forfeited (2,096 ) 4.77 Expired (1,924 ) 6.79 Outstanding at September 30, 2015 246,350 $ 4.85 6.35 $ 2,472 Vested and expected to vest at September 30, 2015 245,298 $ 4.84 6.35 $ 2,463 Exercisable at September 30, 2015 222,742 $ 4.70 6.22 $ 2,271 |
Summary of non-vested restricted stock, restricted stock units and PSU's | A summary of outstanding non-vested restricted stock, restricted stock units and PSUs and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2015 407,130 $ 6.31 Granted 108,422 13.06 Vested (249,526 ) 3.92 Forfeited (4,384 ) 12.88 Outstanding at September 30, 2015 261,642 $ 11.28 |
Information regarding options exercised | Certain information regarding options exercised during the periods follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (In thousands) Intrinsic value $ 71 $ 123 $ 314 $ 231 Cash proceeds received $ 23 $ 30 $ 105 $ 66 Tax benefit realized $ 25 $ 44 $ 110 $ 81 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters [Abstract] | |
Actual capital amounts and ratios | Our actual capital amounts and ratios follow: Actual Minimum for Adequately Capitalized Institutions Minimum for Well-Capitalized Institutions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) September 30, 2015 Total capital to risk-weighted assets Consolidated $ 276,230 16.98 % $ 130,163 8.00 % NA NA Independent Bank 253,647 15.61 130,004 8.00 $ 162,506 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 255,613 15.71 % $ 97,622 6.00 % NA NA Independent Bank 233,123 14.35 97,503 6.00 $ 130,005 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 238,884 14.68 % $ 73,216 4.50 % NA NA Independent Bank 233,123 14.35 73,128 4.50 $ 105,629 6.50 % Tier 1 capital to average assets Consolidated $ 255,613 11.16 % $ 91,582 4.00 % NA NA Independent Bank 233,123 10.19 91,509 4.00 $ 114,387 5.00 % December 31, 2014 Total capital to risk-weighted assets Consolidated $ 265,163 18.06 % $ 117,427 8.00 % NA NA Independent Bank 247,883 16.90 117,374 8.00 $ 146,718 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 246,628 16.80 % $ 58,714 4.00 % NA NA Independent Bank 229,361 15.63 58,687 4.00 $ 88,031 6.00 % Tier 1 capital to average assets Consolidated $ 246,628 11.18 % $ 88,206 4.00 % NA NA Independent Bank 229,361 10.46 87,687 4.00 $ 109,609 5.00 % |
Components of regulatory capital | The components of our regulatory capital are as follows: Consolidated Independent Bank September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In thousands) Total shareholders' equity $ 252,980 $ 250,371 $ 255,659 $ 257,832 Add (deduct) Accumulated other comprehensive (gain) loss for regulatory purposes (1,302 ) 5,636 (1,302 ) 5,636 Intangible assets (946 ) (2,627 ) (946 ) (2,627 ) Disallowed deferred tax assets (11,848 ) (40,500 ) (20,288 ) (30,728 ) Disallowed capitalized mortgage loan servicing rights - (752 ) - (752 ) Common equity tier 1 capital 238,884 212,128 233,123 229,361 Qualifying trust preferred securities 34,500 34,500 - - Disallowed deferred tax assets (17,771 ) - - - Tier 1 capital 255,613 246,628 233,123 229,361 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 20,617 18,535 20,524 18,522 Total risk-based capital $ 276,230 $ 265,163 $ 253,647 $ 247,883 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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, were as follows: Fair Value Measurements Using Fair Value Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2015: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 225 $ 225 $ - $ - Securities available for sale U.S. agency 50,735 - 50,735 - U.S. agency residential mortgage-backed 208,290 - 208,290 - U.S. agency commercial mortgage-backed 35,338 - 35,338 - Private label residential mortgage-backed 5,129 - 5,129 - Other asset backed 131,772 - 131,772 - Obligations of states and political subdivisions 136,732 - 136,732 - Corporate 34,106 - 34,106 - Trust preferred 2,560 - 2,560 - Loans held for sale 25,462 - 25,462 - Derivatives (1) 1,623 - 1,623 - Liabilities Derivatives (2) 1,209 - 1,209 - Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 7,931 - - 7,931 Impaired loans (4) Commercial Income producing - real estate 4,083 - - 4,083 Land, land development & construction-real estate 203 - - 203 Commercial and industrial 1,426 - - 1,426 Mortgage 1-4 Family 577 - - 577 Resort Lending 138 - - 138 Other real estate (5) Commercial Land, land development & construction-real estate 639 - - 639 Commercial and industrial 165 - - 165 Mortgage 1-4 Family 51 - - 51 Resort Lending 107 - - 107 Installment Home equity - 1st lien 36 - - 36 (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 Measure- ments Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) December 31, 2014: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 203 $ 203 $ - $ - Securities available for sale U.S. agency 35,006 - 35,006 - U.S. agency residential mortgage-backed 257,558 - 257,558 - U.S. agency commercial mortgage-backed 33,728 - 33,728 - Private label residential mortgage-backed 6,013 - 6,013 - Other asset backed 32,353 - 32,353 - Obligations of states and political subdivisions 143,415 - 143,415 - Corporate 22,664 - 22,664 - Trust preferred 2,441 - 2,441 - Loans held for sale 23,662 - 23,662 - Derivatives (1) 619 - 619 - Liabilities Derivatives (2) 366 - 366 - Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 9,197 - - 9,197 Impaired loans (4) Commercial Income producing - real estate 869 - - 869 Land, land development & construction-real estate 354 - - 354 Commercial and industrial 2,601 - - 2,601 Mortgage 1-4 Family 1,306 - - 1,306 Other real estate (5) Commercial Income producing - real estate 479 - - 479 Land, land development & construction-real estate 737 - - 737 Mortgage 1-4 Family 102 - - 102 Resort Lending 575 - - 575 Installment Home equity - 1st lien 13 - - 13 (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 periods presented were as follows: Changes in Fair Values for the Nine-Month Periods Ended September 30 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option 2015 2014 Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Securities Loans Earnings Securities Loans Earnings (In thousands) Trading securities $ 22 $ - $ 22 $ 32 $ - $ 32 Loans held for sale - 311 311 - 127 127 |
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 follows: Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Weighted Average (In thousands) September 30, 2015 Capitalized mortgage loan servicing rights $ 7,931 Present value of net servicing revenue Discount rate 10.03 % Cost to service $ 80 Ancillary income 24 Float rate 1.38 % Impaired loans Commercial (1) 5,309 Sales comparison approach Adjustment for differences between comparable sales (7.2 )% Income approach Capitalization rate 9.3 Mortgage 715 Sales comparison approach Adjustment for differences between comparable sales 4.1 Other real estate Commercial 804 Sales comparison approach Adjustment for differences between comparable sales (3.9 ) Mortgage and installment 194 Sales comparison approach Adjustment for differences between comparable sales 75.6 December 31, 2014 Capitalized mortgage $ 9,197 Present value of net servicing revenue Discount rate 10.07 % Cost to service $ 82 Ancillary income 25 Float rate 1.77 % Impaired loans Commercial (1) 2,751 Sales comparison approach Adjustment for differences between comparable sales (3.8 )% Income approach Capitalization rate 9.3 Mortgage 1,306 Sales comparison approach Adjustment for differences between comparable sales 8.6 Other real estate Commercial 1,216 Sales comparison approach Adjustment for differences between comparable sales (9.0 ) Mortgage and installment 690 Sales comparison approach Adjustment for differences between comparable sales 34.3 (1) In addition to the valuation techniques and unobservable inputs discussed above, at September 30, 2015 and December 31, 2014, we had an impaired collateral dependent commercial relationship that totaled $0.4 million and $1.1 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory at September 30, 2015 and also included accounts receivable at December 31, 2014. Valuation techniques at September 30, 2015, included discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values. Valuation techniques at December 31, 2014, included discounting cost and financial statement value approaches based on estimates of value recovery of each particular asset type. Discount rates used ranged from 35% to 100% of stated values. |
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 for the periods presented. Aggregate Fair Value Difference Contractual Principal (In thousands) Loans held for sale September 30, 2015 $ 25,462 $ 935 $ 24,527 December 31, 2014 23,662 624 23,038 |
Fair Values of Financial Inst33
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Values of Financial Instruments [Abstract] | |
Estimated recorded book balances and fair values | The estimated recorded book balances and fair values follow: Fair Value Using Recorded Book Balance Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) September 30, 2015 Assets Cash and due from banks $ 52,146 $ 52,146 $ 52,146 $ - $ - Interest bearing deposits 53,051 53,051 53,051 - - Interest bearing deposits - time 13,029 13,053 - 13,053 - Trading securities 225 225 225 - - Securities available for sale 604,662 604,662 - 604,662 - Federal Home Loan Bank and Federal Reserve Bank Stock 15,286 NA NA NA NA Net loans and loans held for sale 1,468,857 1,435,597 - 25,462 1,410,135 Accrued interest receivable 6,473 6,473 8 2,068 4,397 Derivative financial instruments 1,623 1,623 - 1,623 - Liabilities Deposits with no stated maturity (1) $ 1,639,402 $ 1,639,402 $ 1,639,402 $ - $ - Deposits with stated maturity (1) 421,560 419,803 - 419,803 - Other borrowings 12,070 13,474 - 13,474 - Subordinated debentures 35,569 22,885 - 22,885 - Accrued interest payable 420 420 20 400 - Derivative financial instruments 1,209 1,209 - 1,209 - December 31, 2014 Assets Cash and due from banks $ 48,326 $ 48,326 $ 48,326 $ - $ - Interest bearing deposits 25,690 25,690 25,690 - - Interest bearing deposits - time 13,561 13,585 - 13,585 - Trading securities 203 203 203 - - Securities available for sale 533,178 533,178 - 533,178 - Federal Home Loan Bank and Federal Reserve Bank Stock 19,919 NA NA NA NA Net loans and loans held for sale 1,407,634 1,394,424 - 23,662 1,370,762 Accrued interest receivable 5,995 5,995 2 1,599 4,394 Derivative financial instruments 619 619 - 619 - Liabilities Deposits with no stated maturity (1) $ 1,534,175 $ 1,534,175 $ 1,534,175 $ - $ - Deposits with stated maturity (1) 390,127 389,139 - 389,139 - Other borrowings 12,470 14,560 - 14,560 - Subordinated debentures 35,569 23,328 - 23,328 - Accrued interest payable 380 380 21 359 - Derivative financial instruments 366 366 - 366 - (1) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $12.0 million and $13.6 million at September 30, 2015 and December 31, 2014, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $35.9 million and $40.1 million at September 30, 2015 and December 31, 2014, respectively. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Loss ("AOCL") [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | A summary of changes in AOCL follows: Unrealized Gains (Losses) on Available for Sale Securities Dispropor- tionate Tax Effects from Securities Available for Sale Unrealized Losses on Settled Derivatives Total For the three months ended September 30, 2015 Balances at beginning of period $ 408 $ (5,798 ) $ - $ (5,390 ) Other comprehensive loss before reclassifications 894 - - 894 Amounts reclassified from AOCL - - - - Net current period other comprehensive income 894 - - 894 Balances at end of period $ 1,302 $ (5,798 ) $ - $ (4,496 ) 2014 Balances at beginning of period $ (376 ) $ (5,798 ) $ (124 ) $ (6,298 ) Other comprehensive income before reclassifications 226 - - 226 Amounts reclassified from AOCL (73 ) - 62 (11 ) Net current period other comprehensive income 153 - 62 215 Balances at end of period $ (223 ) $ (5,798 ) $ (62 ) $ (6,083 ) For the nine months ended September 30, 2015 Balances at beginning of period $ 162 $ (5,798 ) $ - $ (5,636 ) Other comprehensive income before reclassifications 1,189 - - 1,189 Amounts reclassified from AOCL (49 ) - - (49 ) Net current period other comprehensive income 1,140 - - 1,140 Balances at end of period $ 1,302 $ (5,798 ) $ - $ (4,496 ) 2014 Balances at beginning of period $ (3,200 ) $ (5,798 ) $ (247 ) $ (9,245 ) Other comprehensive income before reclassifications 3,051 - - 3,051 Amounts reclassified from AOCL (74 ) - 185 111 Net current period other comprehensive income 2,977 - 185 3,162 Balances at end of period $ (223 ) $ (5,798 ) $ (62 ) $ (6,083 ) |
Summary of reclassifications out of each component of AOCL | A summary of reclassifications out of each component of AOCL for the three months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2015 Unrealized gains on available for sale securities $ - Net gains on securities - Net impairment loss recognized in earnings - Total reclassifications before tax - Tax expense $ - Reclassifications, net of tax 2014 Unrealized gains on available for sale securities $ 121 Net gains on securities (9 ) Net impairment loss recognized in earnings 112 Total reclassifications before tax 39 Tax expense $ 73 Reclassifications, net of tax Unrealized gains on settled derivatives $ (95 ) Interest expense (33 ) Tax benefit $ (62 ) Reclassification, net of tax $ 11 Total reclassifications for the period, net of tax A summary of reclassifications out of each component of AOCL for the nine months ended September 30 follows: AOCL Component Amount Reclassified From AOCL Affected Line Item in Condensed Consolidated Statements of Operations (In thousands) 2015 Unrealized gains on available for sale securities $ 75 Net gains on securities - Net impairment loss recognized in earnings 75 Total reclassifications before tax 26 Tax expense $ 49 Reclassifications, net of tax 2014 Unrealized gains on available for sale securities $ 123 Net gains on securities (9 ) Net impairment loss recognized in earnings 114 Total reclassifications before tax 40 Tax expense $ 74 Reclassifications, net of tax Unrealized gains on settled derivatives $ (285 ) Interest expense (100 ) Tax benefit $ (185 ) Reclassification, net of tax $ (111 ) Total reclassifications for the period, net of tax |
Securities (Details)
Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Security | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2013Security | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 602,659 | $ 602,659 | $ 532,930 | ||||
Unrealized Gains | 4,205 | 4,205 | 3,317 | ||||
Unrealized Losses | 2,202 | 2,202 | 3,069 | ||||
Fair Value | 604,662 | 604,662 | 533,178 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 147,186 | 147,186 | 163,665 | ||||
Less Than Twelve Months, Unrealized Losses | 747 | 747 | 909 | ||||
Twelve Months or More, Fair Value | 42,499 | 42,499 | 69,122 | ||||
Twelve Months or More, Unrealized Losses | 1,455 | 1,455 | 2,160 | ||||
Total, Fair Value | 189,685 | 189,685 | 232,787 | ||||
Total, Unrealized Losses | 2,202 | 2,202 | 3,069 | ||||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | |||||||
Fair value | 3,175 | 3,175 | |||||
Amortized cost | 3,031 | 3,031 | |||||
Non-credit unrealized loss | 32 | 32 | |||||
Unrealized gain | 176 | 176 | |||||
Cumulative credit related OTTI | 1,594 | 1,594 | |||||
OTTI changes recorded in earnings | 0 | $ 9 | 0 | $ 9 | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||||
Maturing within one year | 29,195 | 29,195 | |||||
Maturing after one year but within five years | 69,021 | 69,021 | |||||
Maturing after five years but within ten years | 45,618 | 45,618 | |||||
Maturing after ten years | 80,123 | 80,123 | |||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 223,957 | 223,957 | |||||
U.S. agency residential mortgage-backed | 206,387 | 206,387 | |||||
U.S. agency commercial mortgage-backed | 35,109 | 35,109 | |||||
Private label residential mortgage-backed | 5,295 | 5,295 | |||||
Other asset backed | 131,911 | 131,911 | |||||
Total | 602,659 | 602,659 | |||||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||||||
Maturing within one year | 29,231 | 29,231 | |||||
Maturing after one year but within five years | 69,252 | 69,252 | |||||
Maturing after five years but within ten years | 45,985 | 45,985 | |||||
Maturing after ten years | 79,665 | 79,665 | |||||
Available-for-sale Securities fair value total | 224,133 | 224,133 | |||||
U.S. agency residential mortgage-backed | 208,290 | 208,290 | |||||
U.S. agency commercial mortgage-backed | 35,338 | 35,338 | |||||
Private label residential mortgage-backed | 5,129 | 5,129 | |||||
Other asset backed | 131,772 | 131,772 | |||||
Total | 604,662 | 604,662 | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||||||
Balance at beginning of period | 1,844 | 1,835 | 1,844 | 1,835 | 1,835 | ||
Additions to credit losses on securities for which no previous OTTI was recognized | 0 | 0 | 0 | 0 | |||
Increases to credit losses on securities for which OTTI was previously recognized | 0 | 9 | 0 | 9 | |||
Balance at end of period | 1,844 | 1,844 | 1,844 | 1,844 | 1,844 | ||
Gain and losses realized on sale of securities available for sale [Abstract] | |||||||
Proceeds | 11,786 | 7,630 | |||||
Realized Gains | [1] | 75 | 123 | ||||
Realized Losses | 0 | 0 | |||||
Trading securities, realized gains (losses) | 22 | 32 | |||||
Unrealized gain related to U.S. Treasury short position | 179 | ||||||
Credit related OTTI recognized in earnings | $ 0 | 9 | $ 0 | 9 | |||
U.S. Agency [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 29 | 29 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 50,447 | $ 50,447 | 34,936 | ||||
Unrealized Gains | 344 | 344 | 133 | ||||
Unrealized Losses | 56 | 56 | 63 | ||||
Fair Value | 50,735 | 50,735 | 35,006 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 19,021 | 19,021 | 12,851 | ||||
Less Than Twelve Months, Unrealized Losses | 50 | 50 | 58 | ||||
Twelve Months or More, Fair Value | 1,170 | 1,170 | 606 | ||||
Twelve Months or More, Unrealized Losses | 6 | 6 | 5 | ||||
Total, Fair Value | 20,191 | 20,191 | 13,457 | ||||
Total, Unrealized Losses | $ 56 | $ 56 | 63 | ||||
U.S. Agency Residential Mortgage-Backed [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 49 | 49 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 206,387 | $ 206,387 | 256,387 | ||||
Unrealized Gains | 2,116 | 2,116 | 1,838 | ||||
Unrealized Losses | 213 | 213 | 667 | ||||
Fair Value | 208,290 | 208,290 | 257,558 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 26,884 | 26,884 | 89,547 | ||||
Less Than Twelve Months, Unrealized Losses | 94 | 94 | 531 | ||||
Twelve Months or More, Fair Value | 16,024 | 16,024 | 15,793 | ||||
Twelve Months or More, Unrealized Losses | 119 | 119 | 136 | ||||
Total, Fair Value | 42,908 | 42,908 | 105,340 | ||||
Total, Unrealized Losses | $ 213 | $ 213 | 667 | ||||
U.S. Agency Commercial Mortgage-Backed [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 9 | 9 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 35,109 | $ 35,109 | 33,779 | ||||
Unrealized Gains | 246 | 246 | 68 | ||||
Unrealized Losses | 17 | 17 | 119 | ||||
Fair Value | 35,338 | 35,338 | 33,728 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 4,389 | 4,389 | 21,325 | ||||
Less Than Twelve Months, Unrealized Losses | 16 | 16 | 119 | ||||
Twelve Months or More, Fair Value | 1,396 | 1,396 | 0 | ||||
Twelve Months or More, Unrealized Losses | 1 | 1 | 0 | ||||
Total, Fair Value | 5,785 | 5,785 | 21,325 | ||||
Total, Unrealized Losses | $ 17 | $ 17 | 119 | ||||
Private Label Residential Mortgage-Backed [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 5 | 5 | |||||
Number of securities | Security | 5 | 5 | |||||
Number of securities rated as investment grade | Security | 2 | 2 | |||||
Number of securities rated as below investment grade | Security | 2 | 2 | |||||
Number of securities rated as split rated grade | Security | 1 | 1 | |||||
Number of bonds with impairment in excess of ten percent | Security | 2 | 2 | |||||
Percentage of excess impairment on bonds | 10.00% | 10.00% | |||||
Number of bonds with impairment for more than 12 months | Security | 5 | 5 | |||||
Number of private label mortgage backed securities complete recovery of cost basis | Security | 4 | 4 | |||||
Number of private label mortgage backed securities with OTTI unrealized gains | Security | 2 | 2 | |||||
Number of private label mortgage backed securities with OTTI unrealized loss | Security | 1 | 1 | 3 | ||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 5,295 | $ 5,295 | 6,216 | ||||
Unrealized Gains | 176 | 176 | 187 | ||||
Unrealized Losses | 342 | 342 | 390 | ||||
Fair Value | 5,129 | 5,129 | 6,013 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 0 | 0 | 208 | ||||
Less Than Twelve Months, Unrealized Losses | 0 | 0 | 1 | ||||
Twelve Months or More, Fair Value | 3,542 | 3,542 | 4,013 | ||||
Twelve Months or More, Unrealized Losses | 342 | 342 | 389 | ||||
Total, Fair Value | 3,542 | 3,542 | 4,221 | ||||
Total, Unrealized Losses | 342 | 342 | 390 | ||||
Senior Security [Member] | |||||||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | |||||||
Fair value | 1,690 | 1,690 | |||||
Amortized cost | 1,722 | 1,722 | |||||
Non-credit unrealized loss | 32 | 32 | |||||
Unrealized gain | 0 | 0 | |||||
Cumulative credit related OTTI | 757 | 757 | |||||
OTTI changes recorded in earnings | 0 | 9 | 0 | 9 | |||
Super Senior Security [Member] | |||||||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | |||||||
Fair value | 1,394 | 1,394 | |||||
Amortized cost | 1,309 | 1,309 | |||||
Non-credit unrealized loss | 0 | 0 | |||||
Unrealized gain | 85 | 85 | |||||
Cumulative credit related OTTI | 457 | 457 | |||||
OTTI changes recorded in earnings | 0 | 0 | 0 | 0 | |||
Senior Support Security [Member] | |||||||
Private Label Residential Mortgage Backed Securities Below Investment Grade [Abstract] | |||||||
Fair value | 91 | 91 | |||||
Amortized cost | 0 | 0 | |||||
Non-credit unrealized loss | 0 | 0 | |||||
Unrealized gain | 91 | 91 | |||||
Cumulative credit related OTTI | 380 | 380 | |||||
OTTI changes recorded in earnings | $ 0 | $ 0 | $ 0 | $ 0 | |||
Other Asset Backed [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 65 | 65 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 131,911 | $ 131,911 | 32,314 | ||||
Unrealized Gains | 110 | 110 | 77 | ||||
Unrealized Losses | 249 | 249 | 38 | ||||
Fair Value | 131,772 | 131,772 | 32,353 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 57,799 | 57,799 | 2,960 | ||||
Less Than Twelve Months, Unrealized Losses | 131 | 131 | 15 | ||||
Twelve Months or More, Fair Value | 5,414 | 5,414 | 8,729 | ||||
Twelve Months or More, Unrealized Losses | 118 | 118 | 23 | ||||
Total, Fair Value | 63,213 | 63,213 | 11,689 | ||||
Total, Unrealized Losses | $ 249 | $ 249 | 38 | ||||
Obligations of States and Political Subdivisions [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 57 | 57 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 136,508 | $ 136,508 | 143,698 | ||||
Unrealized Gains | 1,161 | 1,161 | 961 | ||||
Unrealized Losses | 937 | 937 | 1,244 | ||||
Fair Value | 136,732 | 136,732 | 143,415 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 27,995 | 27,995 | 28,114 | ||||
Less Than Twelve Months, Unrealized Losses | 422 | 422 | 106 | ||||
Twelve Months or More, Fair Value | 12,393 | 12,393 | 37,540 | ||||
Twelve Months or More, Unrealized Losses | 515 | 515 | 1,138 | ||||
Total, Fair Value | 40,388 | 40,388 | 65,654 | ||||
Total, Unrealized Losses | $ 937 | $ 937 | 1,244 | ||||
Corporate [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 8 | 8 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | $ 34,088 | $ 34,088 | 22,690 | ||||
Unrealized Gains | 52 | 52 | 53 | ||||
Unrealized Losses | 34 | 34 | 79 | ||||
Fair Value | 34,106 | 34,106 | 22,664 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 11,098 | 11,098 | 8,660 | ||||
Less Than Twelve Months, Unrealized Losses | 34 | 34 | 79 | ||||
Twelve Months or More, Fair Value | 0 | 0 | 0 | ||||
Twelve Months or More, Unrealized Losses | 0 | 0 | 0 | ||||
Total, Fair Value | 11,098 | 11,098 | 8,660 | ||||
Total, Unrealized Losses | $ 34 | $ 34 | 79 | ||||
Trust Preferred [Member] | |||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||
Number of securities with market fair value less than amortized cost | Security | 3 | 3 | |||||
Number of securities rated as investment grade | Security | 1 | 1 | |||||
Number of securities rated as below investment grade | Security | 1 | 1 | |||||
Number of major credit rating agencies | Security | 2 | 2 | |||||
Number of securities non-rated | Security | 1 | 1 | |||||
Non-rated trust preferred securities, amortized cost | $ 1,000 | $ 1,000 | |||||
Non-rated trust preferred securities, fair value | 800 | 800 | |||||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||||||
Amortized Cost | 2,914 | 2,914 | 2,910 | ||||
Unrealized Gains | 0 | 0 | 0 | ||||
Unrealized Losses | 354 | 354 | 469 | ||||
Fair Value | 2,560 | 2,560 | 2,441 | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||
Less Than Twelve Months, Fair Value | 0 | 0 | 0 | ||||
Less Than Twelve Months, Unrealized Losses | 0 | 0 | 0 | ||||
Twelve Months or More, Fair Value | 2,560 | 2,560 | 2,441 | ||||
Twelve Months or More, Unrealized Losses | 354 | 354 | 469 | ||||
Total, Fair Value | 2,560 | 2,560 | 2,441 | ||||
Total, Unrealized Losses | 354 | 354 | 469 | ||||
Rated Issues [Member] | |||||||
Trust preferred securities [Abstract] | |||||||
Fair Value | 1,788 | 1,788 | 1,643 | ||||
Net Unrealized Loss | (127) | (267) | |||||
Unrated Issues [Member] | |||||||
Trust preferred securities [Abstract] | |||||||
Fair Value | $ 772 | 772 | 798 | ||||
Net Unrealized Loss | $ (227) | $ (202) | |||||
[1] | Gains in 2014 exclude $0.179 million of unrealized gain related to a U.S. Treasury short position. |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | |||||
Balance at beginning of period | $ 24,586 | $ 28,197 | $ 25,990 | $ 32,325 | |
Additions (deductions) [Abstract] | |||||
Provision for loan losses | (244) | (632) | (1,037) | (2,049) | |
Recoveries credited to allowance | 1,173 | 1,479 | 3,418 | 5,438 | |
Loans charged against the allowance | (911) | (1,536) | (3,767) | (8,206) | |
Balance at end of period | 24,604 | 27,508 | 24,604 | 27,508 | |
Allowance for loan losses and recorded investment in loans by portfolio segment [Abstract] | |||||
Allowance for loan losses Individually evaluated for impairment | 12,776 | 12,776 | $ 13,233 | ||
Collectively evaluated for impairment | 11,828 | 11,828 | 12,757 | ||
Total ending allowance balance | 24,604 | 24,604 | 25,990 | ||
Loans [Abstract] | |||||
Individually evaluated for impairment | 104,204 | 104,204 | 113,166 | ||
Collectively evaluated for impairment | 1,368,210 | 1,368,210 | 1,301,250 | ||
Total loans recorded investment | 1,472,414 | 1,472,414 | 1,414,416 | ||
Accrued interest included in recorded investment | 4,415 | 4,415 | 4,454 | ||
Total Loans | 1,467,999 | 1,467,999 | 1,409,962 | ||
Commercial [Member] | |||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | |||||
Balance at beginning of period | 6,707 | 5,175 | 5,445 | 6,827 | |
Additions (deductions) [Abstract] | |||||
Provision for loan losses | (26) | (601) | 479 | (1,164) | |
Recoveries credited to allowance | 637 | 999 | 1,722 | 3,492 | |
Loans charged against the allowance | (190) | (385) | (518) | (3,967) | |
Balance at end of period | 7,128 | 5,188 | 7,128 | 5,188 | |
Allowance for loan losses and recorded investment in loans by portfolio segment [Abstract] | |||||
Allowance for loan losses Individually evaluated for impairment | 4,048 | 4,048 | 3,194 | ||
Collectively evaluated for impairment | 3,080 | 3,080 | 2,251 | ||
Total ending allowance balance | 7,128 | 7,128 | 5,445 | ||
Loans [Abstract] | |||||
Individually evaluated for impairment | 30,328 | 30,328 | 34,147 | ||
Collectively evaluated for impairment | 697,528 | 697,528 | 658,423 | ||
Total loans recorded investment | 727,856 | 727,856 | 692,570 | ||
Accrued interest included in recorded investment | 1,500 | 1,500 | 1,615 | ||
Total Loans | 726,356 | 726,356 | 690,955 | ||
Mortgage [Member] | |||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | |||||
Balance at beginning of period | 11,465 | 15,542 | 13,444 | 17,195 | |
Additions (deductions) [Abstract] | |||||
Provision for loan losses | (47) | (9) | (881) | (395) | |
Recoveries credited to allowance | 286 | 197 | 843 | 1,055 | |
Loans charged against the allowance | (379) | (729) | (2,081) | (2,854) | |
Balance at end of period | 11,325 | 15,001 | 11,325 | 15,001 | |
Allowance for loan losses and recorded investment in loans by portfolio segment [Abstract] | |||||
Allowance for loan losses Individually evaluated for impairment | 8,244 | 8,244 | 9,311 | ||
Collectively evaluated for impairment | 3,081 | 3,081 | 4,133 | ||
Total ending allowance balance | 11,325 | 11,325 | 13,444 | ||
Loans [Abstract] | |||||
Individually evaluated for impairment | 67,871 | 67,871 | 72,340 | ||
Collectively evaluated for impairment | 402,934 | 402,934 | 402,458 | ||
Total loans recorded investment | 470,805 | 470,805 | 474,798 | ||
Accrued interest included in recorded investment | 2,227 | 2,227 | 2,170 | ||
Total Loans | 468,578 | 468,578 | 472,628 | ||
Installment [Member] | |||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | |||||
Balance at beginning of period | 1,461 | 1,988 | 1,814 | 2,246 | |
Additions (deductions) [Abstract] | |||||
Provision for loan losses | (49) | 32 | (179) | 132 | |
Recoveries credited to allowance | 250 | 283 | 853 | 886 | |
Loans charged against the allowance | (342) | (422) | (1,168) | (1,383) | |
Balance at end of period | 1,320 | 1,881 | 1,320 | 1,881 | |
Allowance for loan losses and recorded investment in loans by portfolio segment [Abstract] | |||||
Allowance for loan losses Individually evaluated for impairment | 484 | 484 | 728 | ||
Collectively evaluated for impairment | 836 | 836 | 1,086 | ||
Total ending allowance balance | 1,320 | 1,320 | 1,814 | ||
Loans [Abstract] | |||||
Individually evaluated for impairment | 6,005 | 6,005 | 6,679 | ||
Collectively evaluated for impairment | 230,310 | 230,310 | 200,368 | ||
Total loans recorded investment | 236,315 | 236,315 | 207,047 | ||
Accrued interest included in recorded investment | 688 | 688 | 669 | ||
Total Loans | 235,627 | 235,627 | 206,378 | ||
Payment Plan Receivables [Member] | |||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | |||||
Balance at beginning of period | 65 | 80 | 64 | 97 | |
Additions (deductions) [Abstract] | |||||
Provision for loan losses | (5) | (8) | (4) | (28) | |
Recoveries credited to allowance | 0 | 0 | 0 | 5 | |
Loans charged against the allowance | 0 | 0 | 0 | (2) | |
Balance at end of period | 60 | 72 | 60 | 72 | |
Allowance for loan losses and recorded investment in loans by portfolio segment [Abstract] | |||||
Allowance for loan losses Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 60 | 60 | 64 | ||
Total ending allowance balance | 60 | 60 | 64 | ||
Loans [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 37,438 | 37,438 | 40,001 | ||
Total loans recorded investment | 37,438 | 37,438 | 40,001 | ||
Accrued interest included in recorded investment | 0 | 0 | 0 | ||
Total Loans | 37,438 | 37,438 | 40,001 | ||
Subjective Allocation [Member] | |||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | |||||
Balance at beginning of period | 4,888 | 5,412 | 5,223 | 5,960 | |
Additions (deductions) [Abstract] | |||||
Provision for loan losses | (117) | (46) | (452) | (594) | |
Recoveries credited to allowance | 0 | 0 | 0 | 0 | |
Loans charged against the allowance | 0 | 0 | 0 | 0 | |
Balance at end of period | 4,771 | $ 5,366 | 4,771 | $ 5,366 | |
Allowance for loan losses and recorded investment in loans by portfolio segment [Abstract] | |||||
Allowance for loan losses Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 4,771 | 4,771 | 5,223 | ||
Total ending allowance balance | $ 4,771 | $ 4,771 | $ 5,223 |
Loans, Receivables Past Due (De
Loans, Receivables Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Aging analysis of loans by class [Abstract] | ||
Total Loans | $ 1,467,999 | $ 1,409,962 |
Total Recorded Investment [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 7 |
Non-Accrual | 15,834 | 15,231 |
Total Non-performing Loans | 15,834 | 15,238 |
Aging analysis of loans by class [Abstract] | ||
Total | 19,018 | 22,326 |
Loans not Past Due | 1,453,396 | 1,392,090 |
Total Loans | 1,472,414 | 1,414,416 |
Total Recorded Investment [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 8,032 | 8,246 |
Total Recorded Investment [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 1,906 | 2,769 |
Total Recorded Investment [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 9,080 | 11,311 |
Accrued Interest Included in Recorded Investment [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Total Non-performing Loans | 0 | 0 |
Aging analysis of loans by class [Abstract] | ||
Total | 131 | 84 |
Loans not Past Due | 4,284 | 4,370 |
Total Loans | 4,415 | 4,454 |
Accrued Interest Included in Recorded Investment [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 113 | 55 |
Accrued Interest Included in Recorded Investment [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 18 | 29 |
Accrued Interest Included in Recorded Investment [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 0 | 0 |
Commercial [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total Loans | 726,356 | 690,955 |
Commercial [Member] | Income Producing - Real Estate [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 5,135 | 1,233 |
Total Non-performing Loans | 5,135 | 1,233 |
Aging analysis of loans by class [Abstract] | ||
Total | 843 | 303 |
Loans not Past Due | 274,107 | 252,763 |
Total Loans | 274,950 | 253,066 |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 183 | 89 |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 0 | 0 |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 660 | 214 |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 533 | 594 |
Total Non-performing Loans | 533 | 594 |
Aging analysis of loans by class [Abstract] | ||
Total | 323 | 354 |
Loans not Past Due | 41,899 | 33,984 |
Total Loans | 42,222 | 34,338 |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 0 | 131 |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 119 | 0 |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 204 | 223 |
Commercial [Member] | Commercial and Industrial [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 2,318 | 2,746 |
Total Non-performing Loans | 2,318 | 2,746 |
Aging analysis of loans by class [Abstract] | ||
Total | 3,003 | 2,879 |
Loans not Past Due | 407,681 | 402,287 |
Total Loans | 410,684 | 405,166 |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 2,315 | 2,391 |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 320 | 279 |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 368 | 209 |
Mortgage [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total Loans | 468,578 | 472,628 |
Mortgage [Member] | 1-4 Family [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 7 |
Non-Accrual | 5,095 | 5,945 |
Total Non-performing Loans | 5,095 | 5,952 |
Aging analysis of loans by class [Abstract] | ||
Total | 8,270 | 9,467 |
Loans not Past Due | 271,130 | 269,719 |
Total Loans | 279,400 | 279,186 |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 2,513 | 1,877 |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 662 | 1,638 |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 5,095 | 5,952 |
Mortgage [Member] | Resort Lending [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 1,301 | 2,168 |
Total Non-performing Loans | 1,301 | 2,168 |
Aging analysis of loans by class [Abstract] | ||
Total | 1,760 | 2,394 |
Loans not Past Due | 116,528 | 126,342 |
Total Loans | 118,288 | 128,736 |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 309 | 226 |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 150 | 0 |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 1,301 | 2,168 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 191 | 331 |
Total Non-performing Loans | 191 | 331 |
Aging analysis of loans by class [Abstract] | ||
Total | 253 | 420 |
Loans not Past Due | 22,252 | 19,782 |
Total Loans | 22,505 | 20,202 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 39 | 39 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 23 | 50 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 191 | 331 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 189 | 605 |
Total Non-performing Loans | 189 | 605 |
Aging analysis of loans by class [Abstract] | ||
Total | 520 | 1,405 |
Loans not Past Due | 50,092 | 45,269 |
Total Loans | 50,612 | 46,674 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 331 | 711 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 0 | 89 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 189 | 605 |
Installment [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total Loans | 235,627 | 206,378 |
Installment [Member] | Home Equity - 1st Lien [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 175 | 576 |
Total Non-performing Loans | 175 | 576 |
Aging analysis of loans by class [Abstract] | ||
Total | 526 | 1,079 |
Loans not Past Due | 17,954 | 20,995 |
Total Loans | 18,480 | 22,074 |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 286 | 466 |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 65 | 37 |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 175 | 576 |
Installment [Member] | Home Equity - 2nd Lien [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 445 | 517 |
Total Non-performing Loans | 445 | 517 |
Aging analysis of loans by class [Abstract] | ||
Total | 689 | 967 |
Loans not Past Due | 21,616 | 28,125 |
Total Loans | 22,305 | 29,092 |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 191 | 369 |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 53 | 81 |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 445 | 517 |
Installment [Member] | Loans Not Secured By Real Estate [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 430 | 454 |
Total Non-performing Loans | 430 | 454 |
Aging analysis of loans by class [Abstract] | ||
Total | 1,036 | 1,274 |
Loans not Past Due | 192,321 | 152,115 |
Total Loans | 193,357 | 153,389 |
Installment [Member] | Loans Not Secured By Real Estate [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 474 | 589 |
Installment [Member] | Loans Not Secured By Real Estate [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 132 | 231 |
Installment [Member] | Loans Not Secured By Real Estate [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 430 | 454 |
Installment [Member] | Other [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 2 | 48 |
Total Non-performing Loans | 2 | 48 |
Aging analysis of loans by class [Abstract] | ||
Total | 10 | 66 |
Loans not Past Due | 2,163 | 2,426 |
Total Loans | 2,173 | 2,492 |
Installment [Member] | Other [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 6 | 15 |
Installment [Member] | Other [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 2 | 3 |
Installment [Member] | Other [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 2 | 48 |
Payment Plan Receivables [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total Loans | 37,438 | 40,001 |
Payment Plan Receivables [Member] | Other [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 4 | 0 |
Total Non-performing Loans | 4 | 0 |
Aging analysis of loans by class [Abstract] | ||
Total | 132 | 120 |
Loans not Past Due | 5,346 | 4,934 |
Total Loans | 5,478 | 5,054 |
Payment Plan Receivables [Member] | Other [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 112 | 96 |
Payment Plan Receivables [Member] | Other [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 16 | 24 |
Payment Plan Receivables [Member] | Other [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 4 | 0 |
Payment Plan Receivables [Member] | Full Refund [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 6 | 2 |
Total Non-performing Loans | 6 | 2 |
Aging analysis of loans by class [Abstract] | ||
Total | 684 | 1,054 |
Loans not Past Due | 22,848 | 26,799 |
Total Loans | 23,532 | 27,853 |
Payment Plan Receivables [Member] | Full Refund [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 563 | 838 |
Payment Plan Receivables [Member] | Full Refund [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 115 | 214 |
Payment Plan Receivables [Member] | Full Refund [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 6 | 2 |
Payment Plan Receivables [Member] | Partial Refund [Member] | ||
Non performing loans [Abstract] | ||
90+ and Still Accruing | 0 | 0 |
Non-Accrual | 10 | 12 |
Total Non-performing Loans | 10 | 12 |
Aging analysis of loans by class [Abstract] | ||
Total | 969 | 544 |
Loans not Past Due | 7,459 | 6,550 |
Total Loans | 8,428 | 7,094 |
Payment Plan Receivables [Member] | Partial Refund [Member] | Loans Past Due, 30-59 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 710 | 409 |
Payment Plan Receivables [Member] | Partial Refund [Member] | Loans Past Due, 60-89 days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | 249 | 123 |
Payment Plan Receivables [Member] | Partial Refund [Member] | Loans Past Due, 90+ days [Member] | ||
Aging analysis of loans by class [Abstract] | ||
Total | $ 10 | $ 12 |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2015 | Sep. 30, 2014 | [2] | Sep. 30, 2015 | Sep. 30, 2014 | [3] | Dec. 31, 2014 | ||||
Impaired loans [Abstract] | ||||||||||
TDR | $ 6,416 | $ 6,416 | $ 9,325 | |||||||
Non - TDR | 204 | 204 | 299 | |||||||
TDR allowances based on collateral | 3,970 | 3,970 | 5,879 | |||||||
TDR - allowances based on present value cash flow | 86,985 | 86,985 | 94,970 | |||||||
Non - TDR - allowance based on collateral | 6,281 | 6,281 | 2,296 | |||||||
Non - TDR - allowance based on present value cash flow | 0 | 0 | 0 | |||||||
Total impaired loans | 103,856 | 103,856 | 112,769 | |||||||
Amount of allowance for loan losses allocated [Abstract] | ||||||||||
TDR - allowance based on collateral | 1,575 | 1,575 | 2,025 | |||||||
TDR - allowance based on present value cash flow | 8,952 | 8,952 | 10,188 | |||||||
Non - TDR - allowance based on collateral | 2,249 | 2,249 | 1,020 | |||||||
Non - TDR - allowance based on present value cash flow | 0 | 0 | 0 | |||||||
Allowance for loan losses allocated | 12,776 | 12,776 | 13,233 | |||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 6,637 | 6,637 | 9,652 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 7,586 | 7,586 | 10,836 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 97,567 | 97,567 | 103,514 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 101,709 | 101,709 | 108,211 | ||||||
Recorded Investment | [1] | 104,204 | 104,204 | 113,166 | ||||||
Unpaid Principal Balance | [1] | 109,295 | 109,295 | 119,047 | ||||||
Related Allowance | [1] | 12,776 | 12,776 | 13,233 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 8,011 | [2] | $ 12,619 | 8,854 | [3] | $ 12,869 | ||||
Interest Income Recognized, with No Related Allowance | 130 | [2] | 182 | 428 | [3] | 463 | ||||
Average Recorded Investment, with Related Allowance | 97,669 | [2] | 105,591 | 99,669 | [3] | 108,736 | ||||
Interest Income Recognized, with Related Allowance | 1,016 | [2] | 1,078 | 3,085 | [3] | 3,412 | ||||
Average Recorded Investment | 105,680 | [2] | 118,210 | 108,523 | [3] | 121,605 | ||||
Interest Income Recognized | 1,146 | [2] | 1,260 | 3,513 | [3] | 3,875 | ||||
Accrued Interest Included in Recorded Investment [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment | [1] | 348 | 348 | 397 | ||||||
Commercial [Member] | Income Producing - Real Estate [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 4,778 | 4,778 | 5,868 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 4,977 | 4,977 | 6,077 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 16,414 | 16,414 | 12,836 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 17,414 | 17,414 | 13,797 | ||||||
Recorded Investment | [1] | 21,192 | 21,192 | 18,704 | ||||||
Unpaid Principal Balance | [1] | 22,391 | 22,391 | 19,874 | ||||||
Related Allowance | [1] | 1,357 | 1,357 | 689 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 5,133 | [2] | 8,255 | 5,490 | [3] | 8,109 | ||||
Interest Income Recognized, with No Related Allowance | 45 | [2] | 103 | 170 | [3] | 289 | ||||
Average Recorded Investment, with Related Allowance | 14,655 | [2] | 11,486 | 13,752 | [3] | 12,756 | ||||
Interest Income Recognized, with Related Allowance | 154 | [2] | 136 | 452 | [3] | 417 | ||||
Average Recorded Investment | 19,788 | [2] | 19,741 | 19,242 | [3] | 20,865 | ||||
Interest Income Recognized | 199 | [2] | 239 | 622 | [3] | 706 | ||||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 851 | 851 | 1,051 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 1,425 | 1,425 | 1,606 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 2,061 | 2,061 | 3,456 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 2,140 | 2,140 | 3,528 | ||||||
Recorded Investment | [1] | 2,912 | 2,912 | 4,507 | ||||||
Unpaid Principal Balance | [1] | 3,565 | 3,565 | 5,134 | ||||||
Related Allowance | [1] | 421 | 421 | 499 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 932 | [2] | 859 | 986 | [3] | 1,168 | ||||
Interest Income Recognized, with No Related Allowance | 14 | [2] | 15 | 57 | [3] | 43 | ||||
Average Recorded Investment, with Related Allowance | 1,993 | [2] | 4,092 | 2,351 | [3] | 4,059 | ||||
Interest Income Recognized, with Related Allowance | 2 | [2] | 38 | 35 | [3] | 120 | ||||
Average Recorded Investment | 2,925 | [2] | 4,951 | 3,337 | [3] | 5,227 | ||||
Interest Income Recognized | 16 | [2] | 53 | 92 | [3] | 163 | ||||
Commercial [Member] | Commercial and Industrial [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 985 | 985 | 2,685 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 982 | 982 | 2,667 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 5,239 | 5,239 | 8,251 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 5,549 | 5,549 | 8,486 | ||||||
Recorded Investment | [1] | 6,224 | 6,224 | 10,936 | ||||||
Unpaid Principal Balance | [1] | 6,531 | 6,531 | 11,153 | ||||||
Related Allowance | [1] | 2,270 | 2,270 | 2,006 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 1,922 | [2] | 3,397 | 2,345 | [3] | 3,517 | ||||
Interest Income Recognized, with No Related Allowance | 68 | [2] | 63 | 195 | [3] | 129 | ||||
Average Recorded Investment, with Related Allowance | 6,431 | [2] | 7,936 | 7,304 | [3] | 8,562 | ||||
Interest Income Recognized, with Related Allowance | 37 | [2] | 51 | 117 | [3] | 209 | ||||
Average Recorded Investment | 8,353 | [2] | 11,333 | 9,649 | [3] | 12,079 | ||||
Interest Income Recognized | 105 | [2] | 114 | 312 | [3] | 338 | ||||
Mortgage [Member] | 1-4 Family [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 23 | 23 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 166 | 166 | 49 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 49,245 | 49,245 | 53,206 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 51,392 | 51,392 | 56,063 | ||||||
Recorded Investment | [1] | 49,268 | 49,268 | 53,206 | ||||||
Unpaid Principal Balance | [1] | 51,558 | 51,558 | 56,112 | ||||||
Related Allowance | [1] | 5,437 | 5,437 | 6,195 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 24 | [2] | 66 | 18 | [3] | 37 | ||||
Interest Income Recognized, with No Related Allowance | 3 | [2] | 0 | 5 | [3] | 0 | ||||
Average Recorded Investment, with Related Allowance | 49,706 | [2] | 55,633 | 51,078 | [3] | 56,545 | ||||
Interest Income Recognized, with Related Allowance | 554 | [2] | 558 | 1,644 | [3] | 1,777 | ||||
Average Recorded Investment | 49,730 | [2] | 55,699 | 51,096 | [3] | 56,582 | ||||
Interest Income Recognized | 557 | [2] | 558 | 1,649 | [3] | 1,777 | ||||
Mortgage [Member] | Resort Lending [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 48 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | 397 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 18,328 | 18,328 | 18,799 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 18,591 | 18,591 | 18,963 | ||||||
Recorded Investment | [1] | 18,328 | 18,328 | 18,847 | ||||||
Unpaid Principal Balance | [1] | 18,591 | 18,591 | 19,360 | ||||||
Related Allowance | [1] | 2,786 | 2,786 | 3,075 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 42 | 15 | [3] | 38 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 1 | 0 | [3] | 1 | ||||
Average Recorded Investment, with Related Allowance | 18,414 | [2] | 19,351 | 18,523 | [3] | 19,623 | ||||
Interest Income Recognized, with Related Allowance | 163 | [2] | 195 | 507 | [3] | 581 | ||||
Average Recorded Investment | 18,414 | [2] | 19,393 | 18,538 | [3] | 19,661 | ||||
Interest Income Recognized | 163 | [2] | 196 | 507 | [3] | 582 | ||||
Mortgage [Member] | Home Equity - 1st Lien [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | 0 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 155 | 155 | 162 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 172 | 172 | 177 | ||||||
Recorded Investment | [1] | 155 | 155 | 162 | ||||||
Unpaid Principal Balance | [1] | 172 | 172 | 177 | ||||||
Related Allowance | [1] | 11 | 11 | 14 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Average Recorded Investment, with Related Allowance | 157 | [2] | 165 | 159 | [3] | 159 | ||||
Interest Income Recognized, with Related Allowance | 2 | [2] | 2 | 6 | [3] | 5 | ||||
Average Recorded Investment | 157 | [2] | 165 | 159 | [3] | 159 | ||||
Interest Income Recognized | 2 | [2] | 2 | 6 | [3] | 5 | ||||
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | 0 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 120 | 120 | 125 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 201 | 201 | 205 | ||||||
Recorded Investment | [1] | 120 | 120 | 125 | ||||||
Unpaid Principal Balance | [1] | 201 | 201 | 205 | ||||||
Related Allowance | [1] | 10 | 10 | 27 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Average Recorded Investment, with Related Allowance | 185 | [2] | 39 | 154 | [3] | 40 | ||||
Interest Income Recognized, with Related Allowance | 0 | [2] | 0 | 6 | [3] | 1 | ||||
Average Recorded Investment | 185 | [2] | 39 | 154 | [3] | 40 | ||||
Interest Income Recognized | 0 | [2] | 0 | 6 | [3] | 1 | ||||
Installment [Member] | Home Equity - 1st Lien [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 36 | 36 | 40 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 2,434 | 2,434 | 2,744 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 2,610 | 2,610 | 2,930 | ||||||
Recorded Investment | [1] | 2,434 | 2,434 | 2,744 | ||||||
Unpaid Principal Balance | [1] | 2,646 | 2,646 | 2,970 | ||||||
Related Allowance | [1] | 145 | 145 | 219 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | 1 | [3] | 1 | ||||
Average Recorded Investment, with Related Allowance | 2,474 | [2] | 2,801 | 2,582 | [3] | 2,860 | ||||
Interest Income Recognized, with Related Allowance | 47 | [2] | 43 | 141 | [3] | 132 | ||||
Average Recorded Investment | 2,474 | [2] | 2,801 | 2,582 | [3] | 2,860 | ||||
Interest Income Recognized | 47 | [2] | 43 | 142 | [3] | 133 | ||||
Installment [Member] | Home Equity - 2nd Lien [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | 0 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 2,931 | 2,931 | 3,212 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 2,942 | 2,942 | 3,215 | ||||||
Recorded Investment | [1] | 2,931 | 2,931 | 3,212 | ||||||
Unpaid Principal Balance | [1] | 2,942 | 2,942 | 3,215 | ||||||
Related Allowance | [1] | 285 | 285 | 419 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Average Recorded Investment, with Related Allowance | 2,999 | [2] | 3,375 | 3,086 | [3] | 3,396 | ||||
Interest Income Recognized, with Related Allowance | 47 | [2] | 46 | 147 | [3] | 143 | ||||
Average Recorded Investment | 2,999 | [2] | 3,375 | 3,086 | [3] | 3,396 | ||||
Interest Income Recognized | 47 | [2] | 46 | 147 | [3] | 143 | ||||
Installment [Member] | Loans Not Secured By Real Estate [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | 0 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 631 | 631 | 711 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 689 | 689 | 835 | ||||||
Recorded Investment | [1] | 631 | 631 | 711 | ||||||
Unpaid Principal Balance | [1] | 689 | 689 | 835 | ||||||
Related Allowance | [1] | 53 | 53 | 89 | ||||||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | ||||||||||
Average Recorded Investment, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Average Recorded Investment, with Related Allowance | 645 | [2] | 699 | 669 | [3] | 721 | ||||
Interest Income Recognized, with Related Allowance | 10 | [2] | 9 | 29 | [3] | 26 | ||||
Average Recorded Investment | 645 | [2] | 699 | 669 | [3] | 721 | ||||
Interest Income Recognized | 10 | [2] | 9 | 29 | [3] | 26 | ||||
Installment [Member] | Other [Member] | ||||||||||
Impaired Loans by class [Abstract] | ||||||||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | 0 | ||||||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | 0 | ||||||
No Related Allowance | [1] | 0 | 0 | 0 | ||||||
Recorded Investment, with an allowance recorded | [1] | 9 | 9 | 12 | ||||||
Unpaid Principal Balance, with an allowance recorded | [1] | 9 | 9 | 12 | ||||||
Recorded Investment | [1] | 9 | 9 | 12 | ||||||
Unpaid Principal Balance | [1] | 9 | 9 | 12 | ||||||
Related Allowance | [1] | 1 | 1 | $ 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 | 0 | [3] | 0 | ||||
Interest Income Recognized, with No Related Allowance | 0 | [2] | 0 | 0 | [3] | 0 | ||||
Average Recorded Investment, with Related Allowance | 10 | [2] | 14 | 11 | [3] | 15 | ||||
Interest Income Recognized, with Related Allowance | 0 | [2] | 0 | 1 | [3] | 1 | ||||
Average Recorded Investment | 10 | [2] | 14 | 11 | [3] | 15 | ||||
Interest Income Recognized | $ 0 | [2] | $ 0 | $ 1 | [3] | $ 1 | ||||
[1] | There were no impaired payment plan receivables at September 30, 2015 or December 31, 2014. | |||||||||
[2] | There were no impaired payment plan receivables during the three month periods ended September 30, 2015 and 2014, respectively. | |||||||||
[3] | There were no impaired payment plan receivables during the nine month periods ended September 30, 2015 and 2014, respectively. |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($)Contract | Sep. 30, 2014USD ($)Contract | Sep. 30, 2015USD ($)Contract | Sep. 30, 2014USD ($)Contract | Dec. 31, 2014USD ($) | ||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | $ 97,371 | $ 97,371 | $ 110,174 | |||
Troubled debt restructuring, specific reserve | $ 10,500 | $ 10,500 | 12,200 | |||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 5 | 12 | 26 | 45 | ||
Pre-modification recorded balance | $ 410 | $ 1,394 | $ 2,483 | $ 5,477 | ||
Post-modification recorded balance | 389 | 1,332 | 2,252 | 4,788 | ||
Increase (decrease) in allowance for loan losses | (50) | 200 | 50 | 200 | ||
Charge offs due to troubled debt restructurings | $ 0 | $ 0 | $ 0 | $ 10 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 1 | 2 | 4 | 3 | ||
Recorded Balance | $ 54 | $ 191 | $ 215 | $ 444 | ||
Past due period for modified loans | 90 days | |||||
Increase (decrease) in allowance for loan loss due to TDRs that subsequently defaulted | $ (10) | 0 | 0 | 10 | ||
Charge-offs on TDRs that subsequently defaulted | 0 | $ 0 | $ 0 | $ 0 | ||
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 | 36 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 | 230 months | |||||
Commercial [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | 23,758 | $ 23,758 | 31,453 | |||
Retail [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | $ 73,613 | $ 73,613 | 78,721 | |||
Income Producing - Real Estate [Member] | Commercial [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 2 | 3 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 229 | $ 354 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 234 | $ 326 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Land, Land Development and Construction - Real Estate [Member] | Commercial [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 1 | 0 | 2 | ||
Pre-modification recorded balance | $ 0 | $ 40 | $ 0 | $ 55 | ||
Post-modification recorded balance | $ 0 | $ 36 | $ 0 | $ 50 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Commercial and Industrial [Member] | Commercial [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 1 | 5 | 4 | 11 | ||
Pre-modification recorded balance | $ 48 | $ 716 | $ 301 | $ 2,083 | ||
Post-modification recorded balance | $ 26 | $ 693 | $ 273 | $ 1,524 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 1 | 2 | 2 | ||
Recorded Balance | $ 0 | $ 66 | $ 157 | $ 319 | ||
1-4 Family [Member] | Mortgage [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 3 | 1 | 9 | 8 | ||
Pre-modification recorded balance | $ 343 | $ 87 | $ 1,373 | $ 1,037 | ||
Post-modification recorded balance | $ 344 | $ 87 | $ 1,189 | $ 1,049 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 1 | 1 | 1 | 1 | ||
Recorded Balance | $ 54 | $ 125 | $ 54 | $ 125 | ||
Resort Lending [Member] | Mortgage [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 1 | 1 | 4 | ||
Pre-modification recorded balance | $ 0 | $ 378 | $ 313 | $ 1,011 | ||
Post-modification recorded balance | $ 0 | $ 367 | $ 309 | $ 997 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Home Equity - 1st Lien [Member] | Mortgage [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 1 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 17 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 13 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Home Equity - 1st Lien [Member] | Installment [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 3 | 5 | 8 | ||
Pre-modification recorded balance | $ 0 | $ 118 | $ 190 | $ 538 | ||
Post-modification recorded balance | $ 0 | $ 96 | $ 164 | $ 465 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Home Equity - 2nd Lien [Member] | Mortgage [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Home Equity - 2nd Lien [Member] | Installment [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 3 | 5 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 58 | $ 294 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 58 | $ 284 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Loans Not Secured By Real Estate [Member] | Installment [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 1 | 1 | 2 | 3 | ||
Pre-modification recorded balance | $ 19 | $ 55 | $ 19 | $ 88 | ||
Post-modification recorded balance | $ 19 | $ 53 | $ 25 | $ 80 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 1 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 4 | $ 0 | ||
Other [Member] | Installment [Member] | ||||||
Loans classified as troubled debt restructurings [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
TDR that subsequently defaulted [Abstract] | ||||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | ||
Recorded Balance | $ 0 | $ 0 | $ 0 | $ 0 | ||
Performing TDRs [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | 91,983 | 91,983 | 102,971 | |||
Performing TDRs [Member] | Commercial [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | 22,257 | 22,257 | 29,475 | |||
Performing TDRs [Member] | Retail [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | 69,726 | 69,726 | 73,496 | |||
Non-performing TDRs [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | [1] | 5,388 | 5,388 | 7,203 | ||
Non-performing TDRs [Member] | Commercial [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | [1] | 1,501 | 1,501 | 1,978 | ||
Non-performing TDRs [Member] | Retail [Member] | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Troubled debt restructuring | [1],[2] | $ 3,887 | $ 3,887 | $ 5,225 | ||
[1] | Included in non-performing loans table above. | |||||
[2] | Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. |
Loans, Loan Ratings by Loan Cla
Loans, Loan Ratings by Loan Class, Commercial Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | $ 726,356 | $ 690,955 | |
Accrued interest included in total | $ 4,415 | 4,454 | |
Credit ratings of insurer or risk retention group counterparties [Abstract] | |||
Subsidiary's outstanding payment plan insured by third party | 62.90% | ||
Subsidiary's outstanding payment plan 2, insured by third party | 22.50% | ||
Payment Plan Receivables, Full Refund | $ 23,532 | 27,853 | |
Payment Plan Receivables, Partial Refund | 8,428 | 7,094 | |
Payment Plan Receivables, Other | 5,478 | 5,054 | |
Total | 37,438 | 40,001 | |
Other Real Estate and Foreclosed Assets [Abstract] | |||
Foreclosed residential real estate properties | 2,800 | 2,900 | |
Retail mortgage loans in process of foreclosure | 1,100 | 2,500 | |
AM Best Rating A+ [Member] | |||
Credit ratings of insurer or risk retention group counterparties [Abstract] | |||
Payment Plan Receivables, Full Refund | 0 | 0 | |
Payment Plan Receivables, Partial Refund | 8 | 43 | |
Payment Plan Receivables, Other | 0 | 0 | |
Total | 8 | 43 | |
AM Best A Rating [Member] | |||
Credit ratings of insurer or risk retention group counterparties [Abstract] | |||
Payment Plan Receivables, Full Refund | 3,711 | 10,007 | |
Payment Plan Receivables, Partial Refund | 7,572 | 6,190 | |
Payment Plan Receivables, Other | 0 | 0 | |
Total | 11,283 | 16,197 | |
AM Best Rating, A- Rating [Member] | |||
Credit ratings of insurer or risk retention group counterparties [Abstract] | |||
Payment Plan Receivables, Full Refund | 3,226 | 1,989 | |
Payment Plan Receivables, Partial Refund | 753 | 685 | |
Payment Plan Receivables, Other | 5,470 | 5,054 | |
Total | 9,449 | 7,728 | |
Not Rated [Member] | |||
Credit ratings of insurer or risk retention group counterparties [Abstract] | |||
Payment Plan Receivables, Full Refund | 16,595 | 15,857 | |
Payment Plan Receivables, Partial Refund | 95 | 176 | |
Payment Plan Receivables, Other | 8 | 0 | |
Total | 16,698 | 16,033 | |
Commercial [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 727,856 | 692,570 | |
Accrued interest included in total | 1,500 | 1,615 | |
Commercial [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 671,004 | 645,082 | |
Commercial [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 39,605 | 34,609 | |
Commercial [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 9,261 | 8,306 | |
Commercial [Member] | Non Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 7,986 | 4,573 | |
Commercial [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 1,500 | 1,615 | |
Commercial [Member] | Accrued Interest Included in Total [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 1,304 | 1,479 | |
Commercial [Member] | Accrued Interest Included in Total [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 189 | 111 | |
Commercial [Member] | Accrued Interest Included in Total [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 7 | 25 | |
Commercial [Member] | Accrued Interest Included in Total [Member] | Non Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 0 | 0 | |
Commercial [Member] | Income Producing - Real Estate [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 274,950 | 253,066 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 261,676 | 241,266 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 7,013 | 8,649 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 1,126 | 1,918 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Non Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 5,135 | 1,233 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 42,222 | 34,338 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 38,135 | 30,869 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 3,307 | 2,485 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 247 | 390 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 533 | 594 | |
Commercial [Member] | Commercial and Industrial [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 410,684 | 405,166 | |
Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 371,193 | 372,947 | |
Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 29,285 | 23,475 | |
Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 7,888 | 5,998 | |
Commercial [Member] | Commercial and Industrial [Member] | Non Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 2,318 | 2,746 | |
Mortgage [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 51,741 | 52,490 |
750-799 | [1] | 142,427 | 139,075 |
700-749 | [1] | 100,155 | 98,199 |
650-699 | [1] | 81,256 | 83,365 |
600-649 | [1] | 39,875 | 39,874 |
550-599 | [1] | 21,959 | 27,715 |
500-549 | [1] | 17,083 | 18,831 |
Under 500 | [1] | 5,704 | 8,074 |
Unknown | [1] | 10,605 | 7,175 |
Total | [1] | 470,805 | 474,798 |
Accrued interest included in total | 2,227 | 2,170 | |
Mortgage [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 2,227 | 2,170 |
Mortgage [Member] | 1-4 Family [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 27,538 | 27,918 |
750-799 | [1] | 77,238 | 72,674 |
700-749 | [1] | 50,309 | 52,843 |
650-699 | [1] | 52,898 | 51,664 |
600-649 | [1] | 28,698 | 27,770 |
550-599 | [1] | 16,809 | 21,361 |
500-549 | [1] | 13,983 | 14,575 |
Under 500 | [1] | 4,098 | 6,306 |
Unknown | [1] | 7,829 | 4,075 |
Total | [1] | 279,400 | 279,186 |
Mortgage [Member] | 1-4 Family [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 1,427 | 1,311 |
Mortgage [Member] | Resort Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 12,627 | 14,484 |
750-799 | [1] | 42,522 | 45,950 |
700-749 | [1] | 33,785 | 32,660 |
650-699 | [1] | 16,771 | 20,250 |
600-649 | [1] | 5,666 | 6,538 |
550-599 | [1] | 2,546 | 3,639 |
500-549 | [1] | 1,253 | 2,156 |
Under 500 | [1] | 992 | 875 |
Unknown | [1] | 2,126 | 2,184 |
Total | [1] | 118,288 | 128,736 |
Mortgage [Member] | Resort Lending [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 508 | 562 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 4,859 | 3,863 |
750-799 | [1] | 6,280 | 6,128 |
700-749 | [1] | 4,076 | 3,054 |
650-699 | [1] | 3,565 | 3,257 |
600-649 | [1] | 1,872 | 1,704 |
550-599 | [1] | 647 | 994 |
500-549 | [1] | 758 | 699 |
Under 500 | [1] | 210 | 261 |
Unknown | [1] | 238 | 242 |
Total | [1] | 22,505 | 20,202 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 92 | 88 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 6,717 | 6,225 |
750-799 | [1] | 16,387 | 14,323 |
700-749 | [1] | 11,985 | 9,642 |
650-699 | [1] | 8,022 | 8,194 |
600-649 | [1] | 3,639 | 3,862 |
550-599 | [1] | 1,957 | 1,721 |
500-549 | [1] | 1,089 | 1,401 |
Under 500 | [1] | 404 | 632 |
Unknown | [1] | 412 | 674 |
Total | [1] | 50,612 | 46,674 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 200 | 209 |
Installment [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 44,200 | 36,674 |
750-799 | [1] | 100,913 | 81,375 |
700-749 | [1] | 46,206 | 38,337 |
650-699 | [1] | 23,624 | 26,207 |
600-649 | [1] | 9,433 | 11,225 |
550-599 | [1] | 5,670 | 5,962 |
500-549 | [1] | 2,637 | 3,920 |
Under 500 | [1] | 1,496 | 1,303 |
Unknown | [1] | 2,136 | 2,044 |
Total | [1] | 236,315 | 207,047 |
Accrued interest included in total | 688 | 669 | |
Installment [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 688 | 669 |
Installment [Member] | Home Equity - 1st Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 1,953 | 2,272 |
750-799 | [1] | 4,411 | 5,677 |
700-749 | [1] | 2,685 | 3,111 |
650-699 | [1] | 3,783 | 3,963 |
600-649 | [1] | 2,161 | 3,434 |
550-599 | [1] | 1,919 | 2,019 |
500-549 | [1] | 760 | 1,128 |
Under 500 | [1] | 744 | 393 |
Unknown | [1] | 64 | 77 |
Total | [1] | 18,480 | 22,074 |
Installment [Member] | Home Equity - 1st Lien [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 70 | 93 |
Installment [Member] | Home Equity - 2nd Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 1,840 | 2,835 |
750-799 | [1] | 6,624 | 8,557 |
700-749 | [1] | 4,667 | 6,358 |
650-699 | [1] | 4,138 | 5,477 |
600-649 | [1] | 2,254 | 2,408 |
550-599 | [1] | 1,547 | 1,913 |
500-549 | [1] | 851 | 1,036 |
Under 500 | [1] | 280 | 427 |
Unknown | [1] | 104 | 81 |
Total | [1] | 22,305 | 29,092 |
Installment [Member] | Home Equity - 2nd Lien [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 82 | 112 |
Installment [Member] | Loans Not Secured By Real Estate [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 40,348 | 31,507 |
750-799 | [1] | 89,310 | 66,558 |
700-749 | [1] | 38,237 | 28,179 |
650-699 | [1] | 15,224 | 16,152 |
600-649 | [1] | 4,758 | 5,128 |
550-599 | [1] | 2,080 | 1,896 |
500-549 | [1] | 976 | 1,672 |
Under 500 | [1] | 461 | 455 |
Unknown | [1] | 1,963 | 1,842 |
Total | [1] | 193,357 | 153,389 |
Installment [Member] | Loans Not Secured By Real Estate [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | 519 | 445 |
Installment [Member] | Other [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 59 | 60 |
750-799 | [1] | 568 | 583 |
700-749 | [1] | 617 | 689 |
650-699 | [1] | 479 | 615 |
600-649 | [1] | 260 | 255 |
550-599 | [1] | 124 | 134 |
500-549 | [1] | 50 | 84 |
Under 500 | [1] | 11 | 28 |
Unknown | [1] | 5 | 44 |
Total | [1] | 2,173 | 2,492 |
Installment [Member] | Other [Member] | Accrued Interest Included in Total [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Accrued interest included in total | [1] | $ 17 | $ 19 |
[1] | Credit scores have been updated within the last twelve months. |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Segments [Abstract] | ||||||
Number of reportable segments | Segment | 2 | |||||
Selected financial information for reportable segments [Abstract] | ||||||
Total assets | $ 2,394,861 | $ 2,394,861 | $ 2,248,730 | |||
Interest income | 20,293 | $ 20,068 | 59,976 | $ 60,708 | ||
Net interest income | 18,841 | 18,183 | 55,633 | 55,199 | ||
Provision for loan losses | (244) | (632) | (1,037) | (2,049) | ||
Income (loss) before income tax | 7,325 | 7,274 | 21,129 | 19,778 | ||
Net income (loss) | 5,047 | 4,929 | 14,447 | 14,119 | ||
Other [Member] | ||||||
Selected financial information for reportable segments [Abstract] | ||||||
Total assets | [1] | 288,708 | 288,708 | 286,158 | ||
Interest income | [1] | 20 | 25 | 60 | 41 | |
Net interest income | [1] | (238) | (409) | (699) | (1,022) | |
Provision for loan losses | [1] | 0 | 0 | 0 | 0 | |
Income (loss) before income tax | [1] | (358) | (408) | (1,097) | (1,210) | |
Net income (loss) | [1] | (224) | (266) | (693) | (665) | |
Operating Segments [Member] | IB [Member] | ||||||
Selected financial information for reportable segments [Abstract] | ||||||
Total assets | 2,323,629 | 2,323,629 | 2,174,536 | |||
Interest income | 18,973 | 18,444 | 55,895 | 55,153 | ||
Net interest income | 17,964 | 17,254 | 52,864 | 51,721 | ||
Provision for loan losses | (238) | (623) | (1,032) | (2,018) | ||
Income (loss) before income tax | 7,961 | 7,459 | 23,063 | 20,151 | ||
Net income (loss) | 5,455 | 5,048 | 15,623 | 14,345 | ||
Operating Segments [Member] | Mepco [Member] | ||||||
Selected financial information for reportable segments [Abstract] | ||||||
Total assets | 60,018 | 60,018 | 63,378 | |||
Interest income | 1,320 | 1,624 | 4,081 | 5,555 | ||
Net interest income | 1,115 | 1,338 | 3,468 | 4,500 | ||
Provision for loan losses | (6) | (9) | (5) | (31) | ||
Income (loss) before income tax | (254) | 247 | (766) | 908 | ||
Net income (loss) | (168) | 163 | (437) | 607 | ||
Elimination [Member] | ||||||
Selected financial information for reportable segments [Abstract] | ||||||
Total assets | [2] | (277,494) | (277,494) | $ (275,342) | ||
Interest income | [2] | (20) | (25) | (60) | (41) | |
Net interest income | [2] | 0 | 0 | 0 | 0 | |
Provision for loan losses | [2] | 0 | 0 | 0 | 0 | |
Income (loss) before income tax | [2] | (24) | (24) | (71) | (71) | |
Net income (loss) | [2] | $ (16) | $ (16) | $ (46) | $ (168) | |
[1] | Includes amounts relating to our parent company and certain insignificant operations. | |||||
[2] | Includes parent company's investment in subsidiaries and cash balances maintained at subsidiary. |
Shareholders' Equity and Earn42
Shareholders' Equity and Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 15, 2011 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jan. 21, 2015 | |
Class of Stock [Line Items] | |||||||
Stock repurchased | $ 9,025 | $ 0 | |||||
Shareholders with certain limited exceptions | 5.00% | ||||||
Number of Series C Junior participating preferred stock purchase by each right | 1/1000 | ||||||
Beneficial ownership level | 4.99% | ||||||
Discount to current market price of the common stock | 50.00% | ||||||
Earnings Per Share Reconciliation [Abstract] | |||||||
Net income | $ 5,047 | $ 4,929 | $ 14,447 | $ 14,119 | |||
Weighted average shares outstanding (in shares) | [1] | 22,673,000 | 22,940,000 | 22,852,000 | 22,919,000 | ||
Restricted stock units (in shares) | 230,000 | 306,000 | 283,000 | 305,000 | |||
Effect of stock options (in shares) | 118,000 | 123,000 | 120,000 | 126,000 | |||
Stock units for deferred compensation plan for non-employee directors (in shares) | 112,000 | 109,000 | 111,000 | 114,000 | |||
Weighted average shares outstanding for calculation of diluted earnings per share (in shares) | 23,133,000 | 23,478,000 | 23,366,000 | 23,464,000 | |||
Net income per common share [Abstract] | |||||||
Basic (in dollars per share) | [1] | $ 0.22 | $ 0.21 | $ 0.63 | $ 0.62 | ||
Diluted (in dollars per share) | $ 0.22 | $ 0.21 | $ 0.62 | $ 0.60 | |||
Common Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Stock repurchase program percentage of shares authorized to be repurchased | 5.00% | ||||||
Stock repurchased (in shares) | 659,162 | ||||||
Stock repurchased | $ 9,000 | ||||||
Stock Options [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Antidilutive shares excluded from computation of diluted loss per share (in shares) | 30,000 | 30,000 | 30,000 | 30,000 | |||
[1] | Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
Derivative Financial Instrume43
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 117,131 | $ 61,959 |
Average Maturity | 2 years 8 months 12 days | 1 year 1 month 6 days |
Fair Value | $ 414 | $ 253 |
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 1,623 | 619 |
Liability Derivatives | 1,209 | 366 |
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 24,746 | $ 16,759 |
Average Maturity | 1 month 6 days | 1 month 6 days |
Fair Value | $ 823 | $ 437 |
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 49,791 | $ 38,600 |
Average Maturity | 1 month 6 days | 1 month 6 days |
Fair Value | $ (409) | $ (184) |
No Hedge Designation [Member] | Purchased Options [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 1,681 | |
Average Maturity | 5 years 10 months 24 days | |
Fair Value | $ 126 | |
No Hedge Designation [Member] | Written Options [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 1,681 | |
Average Maturity | 5 years 10 months 24 days | |
Fair Value | $ (126) | |
Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 19,616 | $ 3,300 |
Average Maturity | 7 years 3 months 18 days | 9 years 4 months 24 days |
Fair Value | $ (674) | $ (182) |
Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 19,616 | $ 3,300 |
Average Maturity | 7 years 3 months 18 days | 9 years 4 months 24 days |
Fair Value | $ 674 | $ 182 |
Other Assets [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 823 | 437 |
Other Assets [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 0 | 0 |
Other Assets [Member] | No Hedge Designation [Member] | Purchased Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 126 | 0 |
Other Assets [Member] | No Hedge Designation [Member] | Written Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 0 | 0 |
Other Assets [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 0 | 0 |
Other Assets [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 674 | 182 |
Other Liabilities [Member] | No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 409 | 184 |
Other Liabilities [Member] | No Hedge Designation [Member] | Purchased Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Other Liabilities [Member] | No Hedge Designation [Member] | Written Options [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 126 | 0 |
Other Liabilities [Member] | Fixed Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 674 | 182 |
Other Liabilities [Member] | Variable Income Interest Rate [Member] | No Hedge Designation [Member] | Interest Rate Swap [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | $ 0 | $ 0 |
Derivative Financial Instrume44
Derivative Financial Instruments, Effect on Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash Flow Hedge [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $ 0 | $ 0 | $ 0 | $ 0 | |
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | 0 | (95) | 0 | (285) | |
Gain (Loss) Recognized in Income | [1] | 0 | 0 | 0 | 0 |
Cash Flow Hedge [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | [2] | 0 | 0 | 0 | 0 |
Gain (Loss) Recognized in Income | [1],[2] | 0 | 0 | 0 | 0 |
Cash Flow Hedge [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | [2] | 0 | (95) | 0 | (285) |
No Hedge Designation [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | (464) | 270 | 161 | 192 |
No Hedge Designation [Member] | Rate-Lock Mortgage Loan Commitments [Member] | Net Mortgage Loan Gains [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | 281 | (77) | 386 | 147 |
No Hedge Designation [Member] | Mandatory Commitments to Sell Mortgage Loans [Member] | Net Mortgage Loan Gains [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | (745) | 220 | (225) | (134) |
No Hedge Designation [Member] | U.S. Treasury Short Position [Member] | Gain on Securities [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | 0 | 127 | 0 | 179 |
No Hedge Designation [Member] | Purchased Options [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | 126 | 0 | 126 | 0 |
No Hedge Designation [Member] | Written Options [Member] | Interest Expense [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | (126) | 0 | (126) | 0 |
No Hedge Designation [Member] | Fixed Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Income [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | (452) | 7 | (492) | (92) |
No Hedge Designation [Member] | Variable Income Interest Rate [Member] | Interest Rate Swap [Member] | Interest Income [Member] | |||||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | |||||
Gain (Loss) Recognized in Income | [1] | $ 452 | $ (7) | $ 492 | $ 92 |
[1] | For cash flow hedges, this location and amount refers to the ineffective portion. | ||||
[2] | Relates to a terminated pay-fixed interest rate swap whose termination fee was included in accumulated other comprehensive loss and was being amortized into earnings through December 31, 2014. |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized intangible assets - core deposits [Abstract] | ||
Gross Carrying Amount | $ 6,118 | $ 6,118 |
Accumulated Amortization | 3,752 | $ 3,491 |
Summary of estimated intangible amortization [Abstract] | ||
Three months ending December 31, 2015 | 86 | |
2,016 | 347 | |
2,017 | 346 | |
2,018 | 346 | |
2,019 | 346 | |
2020 and thereafter | 895 | |
Total | $ 2,366 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share based compensation arrangements [Line Items] | ||||||
Number of additional shares approved for grant (in shares) | 300,000 | |||||
Total compensation cost not yet recognized | $ 1,800 | $ 1,800 | ||||
Total compensation cost not yet recognized, period for recognition | 1 year 9 months 18 days | |||||
Information regarding options exercised [Abstract] | ||||||
Intrinsic value | 71 | $ 123 | $ 314 | $ 231 | ||
Cash proceeds received | 23 | 30 | 105 | 66 | ||
Tax benefit realized | $ 25 | $ 44 | 110 | 81 | ||
Long-term Incentive Plan [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Number of additional shares approved for grant (in shares) | 0 | 0 | ||||
Total compensation expense (recovery) recognized | $ 400 | $ 300 | 1,100 | 800 | ||
Tax benefit relating to compensation expense recognized | $ 100 | 100 | $ 400 | $ 300 | ||
Stock Options [Member] | ||||||
Outstanding stock option grants and transaction [Roll Forward] | ||||||
Outstanding, beginning balance (in shares) | 281,820 | 281,820 | ||||
Granted (in shares) | 0 | |||||
Exercised (in shares) | (31,450) | |||||
Forfeited (in shares) | (2,096) | |||||
Expired (in shares) | (1,924) | |||||
Outstanding, ending balance (in shares) | 246,350 | 246,350 | ||||
Vested and expected to vest, period end (in shares) | 245,298 | 245,298 | ||||
Exercisable, period end (in shares) | 222,742 | 222,742 | ||||
Weighted Average Exercise Price [Roll Forward] | ||||||
Outstanding, beginning balance (in dollars per share) | $ 4.69 | $ 4.69 | ||||
Exercised (in dollars per share) | 3.35 | |||||
Forfeited (in dollars per share) | 4.77 | |||||
Expired (in dollars per share) | 6.79 | |||||
Outstanding, ending balance (in dollars per share) | $ 4.85 | 4.85 | ||||
Vested and expected to vest, period end (in dollars per share) | 4.84 | 4.84 | ||||
Exercisable, period end (in dollars per share) | $ 4.70 | $ 4.70 | ||||
Weighted-Average Remaining Contractual Term [Abstract] | ||||||
Outstanding, Weighted Average Remaining Contractual Term | 6 years 4 months 6 days | |||||
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term | 6 years 4 months 6 days | |||||
Exercisable, Weighted Average Remaining Contractual Term | 6 years 2 months 19 days | |||||
Aggregate intrinsic value [Abstract] | ||||||
Outstanding, Aggregate Intrinsic Value | $ 2,472 | $ 2,472 | ||||
Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 2,463 | 2,463 | ||||
Exercisable, Aggregate Intrinsic Value | $ 2,271 | $ 2,271 | ||||
Restricted Stock [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Stock options vested (in shares) | 230,000 | |||||
Number of Shares [Roll Forward] | ||||||
Vested (in shares) | (230,000) | |||||
Restricted Stock [Member] | Long-term Incentive Plan [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Number of shares withheld for tax withholding obligations (in shares) | 70,000 | |||||
Non-Vested Restricted Stock, Restricted Stock Units and PSU's [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Stock options vested (in shares) | 249,526 | |||||
Number of Shares [Roll Forward] | ||||||
Outstanding, beginning balance (in shares) | 407,130 | 407,130 | ||||
Granted (in shares) | 108,422 | |||||
Vested (in shares) | (249,526) | |||||
Forfeited (in shares) | (4,384) | |||||
Outstanding, ending balance (in shares) | 261,642 | 261,642 | ||||
Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Outstanding, beginning balance (in dollars per share) | $ 6.31 | $ 6.31 | ||||
Granted (in dollars per share) | 13.06 | |||||
Vested (in dollars per share) | 3.92 | |||||
Forfeited (in dollars per share) | 12.88 | |||||
Outstanding, ending balance (in dollars per share) | $ 11.28 | $ 11.28 | ||||
Director [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Shares issues as retainer fees (in shares) | 4,000 | 11,000 | ||||
Non-Employee Directors [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Number of additional shares approved for grant (in shares) | 200,000 | |||||
Total compensation expense (recovery) recognized | $ 20 | 50 | $ 50 | $ 140 | ||
Tax benefit relating to compensation expense recognized | $ 10 | $ 20 | $ 20 | $ 50 | ||
Officers [Member] | Restricted Stock [Member] | Long-term Incentive Plan [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Number of stock units or restricted shares issued in period (in shares) | 70,000 | 70,000 | ||||
Vesting period | 3 years | 3 years | ||||
Officers [Member] | Performance stock units [Member] | Long-term Incentive Plan [Member] | ||||||
Share based compensation arrangements [Line Items] | ||||||
Number of stock units or restricted shares issued in period (in shares) | 30,000 | 30,000 | ||||
Vesting period | 3 years | 3 years |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Tax [Abstract] | |||||
Income tax expense | $ 2,278 | $ 2,345 | $ 6,682 | $ 5,659 | |
Gross unrecognized tax benefits | 1,000 | 1,000 | $ 1,100 | ||
Valuation Allowance [Line Items] | |||||
Valuation allowance | 1,000 | 1,000 | 1,000 | ||
Mepco [Member] | |||||
Valuation Allowance [Line Items] | |||||
Valuation allowance against deferred tax assets attributable to Mepco | $ 1,000 | $ 1,000 | $ 1,000 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jan. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2015 | Feb. 17, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Apr. 09, 2014 | Dec. 31, 2013 |
Regulatory Matters [Abstract] | ||||||||
Undivided profits | $ (15,900) | |||||||
Request for approval to transfer capital from bank to parent entity | $ 18,500 | $ 15,000 | ||||||
Transfer of capital from bank to the parent company | $ 18,500 | $ 15,000 | ||||||
Components of regulatory capital [Abstract] | ||||||||
Total shareholders' equity | 252,980 | $ 250,371 | $ 247,067 | $ 231,581 | ||||
Add (deduct) [Abstract] | ||||||||
Accumulated other comprehensive loss | (4,496) | (5,636) | ||||||
Intangible assets | (2,366) | (2,627) | ||||||
Consolidated [Member] | ||||||||
Total capital to risk-weighted assets [Abstract] | ||||||||
Total risk-based capital | 276,230 | 265,163 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | $ 130,163 | $ 117,427 | ||||||
Actual, Ratio | 16.98% | 18.06% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio | 8.00% | 8.00% | ||||||
Tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | $ 255,613 | $ 246,628 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | $ 97,622 | $ 58,714 | ||||||
Actual, Ratio | 15.71% | 16.80% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio | 6.00% | 4.00% | ||||||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | $ 238,884 | $ 212,128 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | $ 73,216 | |||||||
Actual, Ratio | 14.68% | |||||||
Minimum for Adequately Capitalized Institutions, Ratio | 4.50% | |||||||
Tier 1 capital to average assets [Abstract] | ||||||||
Tier 1 capital | $ 255,613 | 246,628 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | $ 91,582 | $ 88,206 | ||||||
Actual, Ratio | 11.16% | 11.18% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio | 4.00% | 4.00% | ||||||
Components of regulatory capital [Abstract] | ||||||||
Total shareholders' equity | $ 252,980 | $ 250,371 | ||||||
Add (deduct) [Abstract] | ||||||||
Accumulated other comprehensive loss | (1,302) | 5,636 | ||||||
Intangible assets | (946) | (2,627) | ||||||
Disallowed deferred tax assets | (11,848) | (40,500) | ||||||
Disallowed capitalized mortgage loan servicing rights | 0 | (752) | ||||||
Common equity tier 1 capital | 238,884 | 212,128 | ||||||
Qualifying trust preferred securities | 34,500 | 34,500 | ||||||
Disallowed deferred tax assets | (17,771) | 0 | ||||||
Tier 1 capital | 255,613 | 246,628 | ||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 20,617 | 18,535 | ||||||
Total risk-based capital | 276,230 | 265,163 | ||||||
Independent Bank [Member] | ||||||||
Total capital to risk-weighted assets [Abstract] | ||||||||
Total risk-based capital | 253,647 | 247,883 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 130,004 | 117,374 | ||||||
Minimum for Well Capitalized Institutions, Amount | $ 162,506 | $ 146,718 | ||||||
Actual, Ratio | 15.61% | 16.90% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio | 8.00% | 8.00% | ||||||
Minimum for Well-Capitalized Institutions, Ratio | 10.00% | 10.00% | ||||||
Tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | $ 233,123 | $ 229,361 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 97,503 | 58,687 | ||||||
Minimum for Well-Capitalized Institutions, Amount | $ 130,005 | $ 88,031 | ||||||
Actual, Ratio | 14.35% | 15.63% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio | 6.00% | 4.00% | ||||||
Minimum for Well Capitalized Institutions, Ratio | 8.00% | 6.00% | ||||||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||||||
Actual, Amount | $ 233,123 | $ 229,361 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 73,128 | |||||||
Minimum for Well-Capitalized Institutions, Amount | $ 105,629 | |||||||
Actual, Ratio | 14.35% | |||||||
Minimum for Adequately Capitalized Institutions, Ratio | 4.50% | |||||||
Minimum for Well Capitalized Institutions, Ratio | 6.50% | |||||||
Tier 1 capital to average assets [Abstract] | ||||||||
Tier 1 capital | $ 233,123 | 229,361 | ||||||
Minimum for Adequately Capitalized Institutions, Amount | 91,509 | 87,687 | ||||||
Minimum for Well-Capitalized Institutions, Amount | $ 114,387 | $ 109,609 | ||||||
Actual, Ratio | 10.19% | 10.46% | ||||||
Minimum for Adequately Capitalized Institutions, Ratio | 4.00% | 4.00% | ||||||
Minimum for Well-Capitalized Institutions, Ratio | 5.00% | 5.00% | ||||||
Components of regulatory capital [Abstract] | ||||||||
Total shareholders' equity | $ 255,659 | $ 257,832 | ||||||
Add (deduct) [Abstract] | ||||||||
Accumulated other comprehensive loss | (1,302) | 5,636 | ||||||
Intangible assets | (946) | (2,627) | ||||||
Disallowed deferred tax assets | (20,288) | (30,728) | ||||||
Disallowed capitalized mortgage loan servicing rights | 0 | (752) | ||||||
Common equity tier 1 capital | 233,123 | 229,361 | ||||||
Qualifying trust preferred securities | 0 | 0 | ||||||
Disallowed deferred tax assets | 0 | 0 | ||||||
Tier 1 capital | 233,123 | 229,361 | ||||||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 20,524 | 18,522 | ||||||
Total risk-based capital | $ 253,647 | $ 247,883 |
Fair Value Disclosures Part 1 (
Fair Value Disclosures Part 1 (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |||
Value of collateral-dependent impaired loans that will be reviewed by independent third party, minimum | $ 250 | ||
Value of collateral-dependent impaired loans that will be reviewed by special assets group, maximum | 250 | ||
Assets [Abstract] | |||
Trading securities | 225 | $ 203 | |
Securities available for sale | 604,662 | 533,178 | |
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | 7,931 | 9,197 | |
U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 50,735 | 35,006 | |
U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 208,290 | 257,558 | |
U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 35,338 | 33,728 | |
Private Label Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 5,129 | 6,013 | |
Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 131,772 | 32,353 | |
Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 136,732 | 143,415 | |
Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 34,106 | 22,664 | |
Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,560 | 2,441 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Trading securities | 225 | 203 | |
Loans held for sale | 25,462 | 23,662 | |
Derivatives | [1] | 1,623 | 619 |
Liabilities [Abstract] | |||
Derivatives | [2] | 1,209 | 366 |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 50,735 | 35,006 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 208,290 | 257,558 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 35,338 | 33,728 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 5,129 | 6,013 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 131,772 | 32,353 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 136,732 | 143,415 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 34,106 | 22,664 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,560 | 2,441 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | [3] | 7,931 | 9,197 |
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [4] | 4,083 | 869 |
Land, land development & construction - real estate | [4] | 203 | 354 |
Commercial and industrial | [4] | 1,426 | 2,601 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 577 | 1,306 |
Resort Lending | [4] | 138 | |
Commercial [Abstract] | |||
Income producing - real estate | [4] | 4,083 | 869 |
Land, land development & construction - real estate | [4] | 203 | 354 |
Commercial and industrial | [4] | 1,426 | 2,601 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 577 | 1,306 |
Resort Lending | [4] | 138 | |
Fair Value Measurements [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [5] | 479 | |
Land, land development & construction - real estate | [5] | 639 | 737 |
Commercial and industrial | [5] | 165 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 51 | 102 |
Resort Lending | [5] | 107 | 575 |
Commercial [Abstract] | |||
Income producing - real estate | [5] | 479 | |
Land, land development & construction - real estate | [5] | 639 | 737 |
Commercial and industrial | [5] | 165 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 51 | 102 |
Resort Lending | [5] | 107 | 575 |
Installment [Abstract] | |||
Home equity - 1st lien | [5] | 36 | 13 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Trading securities | 225 | 203 | |
Securities available for sale | 0 | 0 | |
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 | 225 | 203 | |
Loans held for sale | 0 | 0 | |
Derivatives | [1] | 0 | 0 |
Liabilities [Abstract] | |||
Derivatives | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | [3] | 0 | 0 |
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 | [4] | 0 | 0 |
Land, land development & construction - real estate | [4] | 0 | 0 |
Commercial and industrial | [4] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 0 | 0 |
Resort Lending | [4] | 0 | |
Commercial [Abstract] | |||
Income producing - real estate | [4] | 0 | 0 |
Land, land development & construction - real estate | [4] | 0 | 0 |
Commercial and industrial | [4] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 0 | 0 |
Resort Lending | [4] | 0 | |
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 | [5] | 0 | |
Land, land development & construction - real estate | [5] | 0 | 0 |
Commercial and industrial | [5] | 0 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 0 | 0 |
Resort Lending | [5] | 0 | 0 |
Commercial [Abstract] | |||
Income producing - real estate | [5] | 0 | |
Land, land development & construction - real estate | [5] | 0 | 0 |
Commercial and industrial | [5] | 0 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 0 | 0 |
Resort Lending | [5] | 0 | 0 |
Installment [Abstract] | |||
Home equity - 1st lien | [5] | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Securities available for sale | 604,662 | 533,178 | |
Derivatives | 1,623 | 619 | |
Liabilities [Abstract] | |||
Derivatives | 1,209 | 366 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Loans held for sale | 25,462 | 23,662 | |
Derivatives | [1] | 1,623 | 619 |
Liabilities [Abstract] | |||
Derivatives | [2] | 1,209 | 366 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 50,735 | 35,006 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 208,290 | 257,558 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 35,338 | 33,728 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 5,129 | 6,013 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 131,772 | 32,353 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 136,732 | 143,415 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 34,106 | 22,664 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,560 | 2,441 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | [3] | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [4] | 0 | 0 |
Land, land development & construction - real estate | [4] | 0 | 0 |
Commercial and industrial | [4] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 0 | 0 |
Resort Lending | [4] | 0 | |
Commercial [Abstract] | |||
Income producing - real estate | [4] | 0 | 0 |
Land, land development & construction - real estate | [4] | 0 | 0 |
Commercial and industrial | [4] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 0 | 0 |
Resort Lending | [4] | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [5] | 0 | |
Land, land development & construction - real estate | [5] | 0 | 0 |
Commercial and industrial | [5] | 0 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 0 | 0 |
Resort Lending | [5] | 0 | 0 |
Commercial [Abstract] | |||
Income producing - real estate | [5] | 0 | |
Land, land development & construction - real estate | [5] | 0 | 0 |
Commercial and industrial | [5] | 0 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 0 | 0 |
Resort Lending | [5] | 0 | 0 |
Installment [Abstract] | |||
Home equity - 1st lien | [5] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Derivatives | 0 | 0 | |
Liabilities [Abstract] | |||
Derivatives | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Derivatives | [1] | 0 | 0 |
Liabilities [Abstract] | |||
Derivatives | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | [3] | 7,931 | 9,197 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [4] | 4,083 | 869 |
Land, land development & construction - real estate | [4] | 203 | 354 |
Commercial and industrial | [4] | 1,426 | 2,601 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 577 | 1,306 |
Resort Lending | [4] | 138 | |
Commercial [Abstract] | |||
Income producing - real estate | [4] | 4,083 | 869 |
Land, land development & construction - real estate | [4] | 203 | 354 |
Commercial and industrial | [4] | 1,426 | 2,601 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 577 | 1,306 |
Resort Lending | [4] | 138 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [5] | 479 | |
Land, land development & construction - real estate | [5] | 639 | 737 |
Commercial and industrial | [5] | 165 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 51 | 102 |
Resort Lending | [5] | 107 | 575 |
Commercial [Abstract] | |||
Income producing - real estate | [5] | 479 | |
Land, land development & construction - real estate | [5] | 639 | 737 |
Commercial and industrial | [5] | 165 | |
Mortgage [Abstract] | |||
1-4 Family | [5] | 51 | 102 |
Resort Lending | [5] | 107 | 575 |
Installment [Abstract] | |||
Home equity - 1st lien | [5] | $ 36 | $ 13 |
[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 ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Impairment charges recognized [Abstract] | |||||
Capitalized mortgage loan servicing rights, carrying amount | $ 7,900 | $ 7,900 | $ 9,200 | ||
Capitalized mortgage loan servicing rights, valuation allowance | 4,100 | 4,100 | 3,800 | ||
Capitalized mortgage loan servicing rights, recovery (charges) | (900) | $ 500 | (300) | $ 40 | |
Collateral dependent loans, carrying amount | 10,300 | 10,300 | 8,200 | ||
Collateral dependent loans, valuation allowance | 3,800 | 3,800 | 3,100 | ||
Additional provision for loan losses on impaired loans | 1,000 | 500 | 1,900 | 1,400 | |
Other real estate, carrying amount | 1,000 | 1,000 | 1,900 | ||
Other real estate, valuation allowance | 1,700 | 1,700 | $ 2,500 | ||
Other real estate, additional charge | $ 30 | $ 300 | 300 | 400 | |
Trading Securities [Member] | |||||
Changes in fair value for financial assets [Abstract] | |||||
Net Gains (Losses) on Assets | 22 | 32 | |||
Total Change in Fair Values Included in Current Period Earnings | 22 | 32 | |||
Loans Held For Sale [Member] | |||||
Changes in fair value for financial assets [Abstract] | |||||
Net Gains (Losses) on Assets | 311 | 127 | |||
Total Change in Fair Values Included in Current Period Earnings | $ 311 | $ 127 |
Fair Value Disclosures, Part 3
Fair Value Disclosures, Part 3 (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Asset (Liability) Fair Value [Abstract] | |||
Capitalized mortgage loan servicing rights | $ 7,931,000 | $ 9,197,000 | |
Impaired Loans Commercial [Member] | |||
Impaired loan [Abstract] | |||
Commercial | [1] | 5,309,000 | 2,751,000 |
Unobservable Inputs Weighted Average [Abstract] | |||
Total impaired collateral value | $ 400,000 | $ 1,100,000 | |
Impaired Loans Commercial [Member] | Minimum [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Discount rate | 0.00% | 35.00% | |
Impaired Loans Commercial [Member] | Maximum [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Discount rate | 100.00% | 100.00% | |
Mortgage [Member] | |||
Impaired loan [Abstract] | |||
Mortgage | $ 715,000 | $ 1,306,000 | |
Other Real Estate Commercial [Member] | |||
Other real estate [Abstract] | |||
Commercial | 804,000 | 1,216,000 | |
Mortgage and Installment [Member] | |||
Other real estate [Abstract] | |||
Mortgage and installment | $ 194,000 | $ 690,000 | |
Income Approach [Member] | Impaired Loans Commercial [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Capitalization rate | 9.30% | 9.30% | |
Present Value of Net Servicing Revenue [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Discount rate | 10.03% | 10.07% | |
Cost to service | $ 80 | $ 82 | |
Ancillary income | $ 24 | $ 25 | |
Float rate | 1.38% | 1.77% | |
Sales Comparison Approach [Member] | Impaired Loans Commercial [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | (7.20%) | (3.80%) | |
Sales Comparison Approach [Member] | Mortgage [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | 4.10% | 8.60% | |
Sales Comparison Approach [Member] | Other Real Estate Commercial [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | (3.90%) | (9.00%) | |
Sales Comparison Approach [Member] | Mortgage and Installment [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | 75.60% | 34.30% | |
[1] | In addition to the valuation techniques and unobservable inputs discussed above, at September 30, 2015 and December 31, 2014, we had an impaired collateral dependent commercial relationship that totaled $0.4 million and $1.1 million, respectively that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory at September 30, 2015 and also included accounts receivable at December 31, 2014. Valuation techniques at September 30, 2015, included discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values. Valuation techniques at December 31, 2014, included discounting cost and financial statement value approaches based on estimates of value recovery of each particular asset type. Discount rates used ranged from 35% to 100% of stated values. |
Fair Value Disclosures, Part 4
Fair Value Disclosures, Part 4 (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair value option - Loans held for sale [Abstract] | ||
Loans held for sale | $ 25,462 | $ 23,662 |
Difference | 935 | 624 |
Aggregate Fair Value [Member] | ||
Fair value option - Loans held for sale [Abstract] | ||
Loans held for sale | 25,462 | 23,662 |
Contractual Principal [Member] | ||
Fair value option - Loans held for sale [Abstract] | ||
Loans held for sale | $ 24,527 | $ 23,038 |
Fair Values of Financial Inst53
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Assets [Abstract] | |||
Trading securities | $ 225 | $ 203 | |
Securities available for sale | 604,662 | 533,178 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 15,286 | 19,919 | |
Liabilities [Abstract] | |||
Other borrowings | 12,070 | 12,470 | |
Subordinated debentures | 35,569 | 35,569 | |
Reciprocal deposits included in deposits with no stated maturity | 12,000 | 13,600 | |
Reciprocal deposits included in deposits with stated maturity | 35,900 | 40,100 | |
Recorded Book Balance [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 52,146 | 48,326 | |
Interest bearing deposits | 53,051 | 25,690 | |
Interest bearing deposits - time | 13,029 | 13,561 | |
Trading securities | 225 | 203 | |
Securities available for sale | 604,662 | 533,178 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 15,286 | 19,919 | |
Net loans and loans held for sale | 1,468,857 | 1,407,634 | |
Accrued interest receivable | 6,473 | 5,995 | |
Derivative financial instruments | 1,623 | 619 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 1,639,402 | 1,534,175 |
Deposits with stated maturity | [1] | 421,560 | 390,127 |
Other borrowings | 12,070 | 12,470 | |
Subordinated debentures | 35,569 | 35,569 | |
Accrued interest payable | 420 | 380 | |
Derivative financial instruments | 1,209 | 366 | |
Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 52,146 | 48,326 | |
Interest bearing deposits | 53,051 | 25,690 | |
Interest bearing deposits - time | 13,053 | 13,585 | |
Trading securities | 225 | 203 | |
Securities available for sale | 604,662 | 533,178 | |
Net loans and loans held for sale | 1,435,597 | 1,394,424 | |
Accrued interest receivable | 6,473 | 5,995 | |
Derivative financial instruments | 1,623 | 619 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 1,639,402 | 1,534,175 |
Deposits with stated maturity | [1] | 419,803 | 389,139 |
Other borrowings | 13,474 | 14,560 | |
Subordinated debentures | 22,885 | 23,328 | |
Accrued interest payable | 420 | 380 | |
Derivative financial instruments | 1,209 | 366 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 52,146 | 48,326 | |
Interest bearing deposits | 53,051 | 25,690 | |
Interest bearing deposits - time | 0 | 0 | |
Trading securities | 225 | 203 | |
Securities available for sale | 0 | 0 | |
Net loans and loans held for sale | 0 | 0 | |
Accrued interest receivable | 8 | 2 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 1,639,402 | 1,534,175 |
Deposits with stated maturity | [1] | 0 | 0 |
Other borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 20 | 21 | |
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 | 13,053 | 13,585 | |
Trading securities | 0 | 0 | |
Securities available for sale | 604,662 | 533,178 | |
Net loans and loans held for sale | 25,462 | 23,662 | |
Accrued interest receivable | 2,068 | 1,599 | |
Derivative financial instruments | 1,623 | 619 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 0 | 0 |
Deposits with stated maturity | [1] | 419,803 | 389,139 |
Other borrowings | 13,474 | 14,560 | |
Subordinated debentures | 22,885 | 23,328 | |
Accrued interest payable | 400 | 359 | |
Derivative financial instruments | 1,209 | 366 | |
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 | 0 | |
Trading securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Net loans and loans held for sale | 1,410,135 | 1,370,762 | |
Accrued interest receivable | 4,397 | 4,394 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [1] | 0 | 0 |
Deposits with stated maturity | [1] | 0 | 0 |
Other borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Derivative financial instruments | $ 0 | $ 0 | |
[1] | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $12.0 million and $13.6 million at September 30, 2015 and December 31, 2014, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $35.9 million and $40.1 million at September 30, 2015 and December 31, 2014, respectively. |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | |||||
Aggregate amount of counterparty obligations | $ 7,324 | $ 7,324 | $ 7,237 | ||
VSC counterparty contingency expense | 30 | $ 28 | 89 | $ 169 | |
Provision for loss reimbursement on sold loans | (35) | $ 0 | (59) | $ (466) | |
Reserve for loss reimbursement on sold mortgage loans | 500 | 500 | $ 500 | ||
Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Maximum range of reasonably possible loss | $ 500 | $ 500 | |||
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 |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | $ 250,371 | $ 231,581 | ||
Balance at end of period | $ 252,980 | $ 247,067 | 252,980 | 247,067 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net impairment loss recognized in earnings | 0 | (9) | 0 | (9) |
Total reclassifications before tax | 7,325 | 7,274 | 21,129 | 19,778 |
Interest expense | (1,452) | (1,885) | (4,343) | (5,509) |
Tax expense (benefit) | 2,278 | 2,345 | 6,682 | 5,659 |
Reclassifications, net of tax | 5,047 | 4,929 | 14,447 | 14,119 |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassifications, net of tax | 11 | (111) | ||
AOCI Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (5,390) | (6,298) | (5,636) | (9,245) |
Other comprehensive loss before reclassifications | 894 | 226 | 1,189 | 3,051 |
Amounts reclassified from AOCL | 0 | (11) | (49) | 111 |
Other comprehensive income | 894 | 215 | 1,140 | 3,162 |
Balance at end of period | (4,496) | (6,083) | (4,496) | (6,083) |
Unrealized Gains (Losses) on Available For Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 408 | (376) | 162 | (3,200) |
Other comprehensive loss before reclassifications | 894 | 226 | 1,189 | 3,051 |
Amounts reclassified from AOCL | 0 | (73) | (49) | (74) |
Other comprehensive income | 894 | 153 | 1,140 | 2,977 |
Balance at end of period | 1,302 | (223) | 1,302 | (223) |
Unrealized Gains (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 | 0 | 121 | 75 | 123 |
Net impairment loss recognized in earnings | 0 | (9) | 0 | (9) |
Total reclassifications before tax | 0 | 112 | 75 | 114 |
Tax expense (benefit) | 0 | 39 | 26 | 40 |
Reclassifications, net of tax | 0 | 73 | 49 | 74 |
Disproportionate Tax Effects from Securities Available for Sale [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | (5,798) | (5,798) | (5,798) | (5,798) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Balance at end of period | (5,798) | (5,798) | (5,798) | (5,798) |
Unrealized Gains (Losses) on Settled Derivatives [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance at beginning of period | 0 | (124) | 0 | (247) |
Other comprehensive loss before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCL | 0 | 62 | 0 | 185 |
Other comprehensive income | 0 | 62 | 0 | 185 |
Balance at end of period | $ 0 | (62) | $ 0 | (62) |
Unrealized Gains (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 | (95) | (285) | ||
Tax expense (benefit) | (33) | (100) | ||
Reclassifications, net of tax | $ (62) | $ (185) |