Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2017 | |
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 | 21,333,152 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 29,866 | $ 35,238 |
Interest bearing deposits | 39,957 | 47,956 |
Cash and Cash Equivalents | 69,823 | 83,194 |
Interest bearing deposits - time | 5,340 | 5,591 |
Trading securities | 331 | 410 |
Securities available for sale | 608,964 | 610,616 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 15,543 | 15,543 |
Loans held for sale, carried at fair value | 37,613 | 35,946 |
Payment plan receivables and other assets held for sale | 34,798 | 33,360 |
Loans | ||
Commercial | 815,484 | 804,017 |
Mortgage | 581,030 | 538,615 |
Installment | 274,233 | 265,616 |
Total Loans | 1,670,747 | 1,608,248 |
Allowance for loan losses | (20,038) | (20,234) |
Net Loans | 1,650,709 | 1,588,014 |
Other real estate and repossessed assets | 5,257 | 5,004 |
Property and equipment, net | 39,509 | 40,175 |
Bank-owned life insurance | 53,763 | 54,033 |
Deferred tax assets, net | 28,954 | 32,818 |
Capitalized mortgage loan servicing rights | 14,727 | |
Capitalized mortgage loan servicing rights | 13,671 | |
Vehicle service contract counterparty receivables, net | 2,176 | 2,271 |
Other intangibles | 1,845 | 1,932 |
Accrued income and other assets | 27,130 | 26,372 |
Total Assets | 2,596,482 | 2,548,950 |
Deposits | ||
Non-interest bearing | 710,644 | 717,472 |
Savings and interest-bearing checking | 1,062,582 | 1,015,724 |
Reciprocal | 41,383 | 38,657 |
Time | 448,450 | 453,866 |
Total Deposits | 2,263,059 | 2,225,719 |
Other borrowings | 9,433 | 9,433 |
Subordinated debentures | 35,569 | 35,569 |
Other liabilities held for sale | 1,435 | 718 |
Accrued expenses and other liabilities | 31,511 | 28,531 |
Total Liabilities | 2,341,007 | 2,299,970 |
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: 21,327,796 shares at March 31, 2017 and 21,258,092 shares at December 31, 2016 | 323,775 | 323,745 |
Accumulated deficit | (61,764) | (65,657) |
Accumulated other comprehensive loss | (6,536) | (9,108) |
Total Shareholders' Equity | 255,475 | 248,980 |
Total Liabilities and Shareholders' Equity | $ 2,596,482 | $ 2,548,950 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Shareholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
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) | 21,327,796 | 21,258,092 |
Common stock, shares outstanding (in shares) | 21,327,796 | 21,258,092 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Interest Income | |||
Interest and fees on loans | $ 19,858 | $ 18,556 | |
Interest on securities | |||
Taxable | 2,754 | 2,244 | |
Tax-exempt | 455 | 248 | |
Other investments | 312 | 306 | |
Total Interest Income | 23,379 | 21,354 | |
Interest Expense | |||
Deposits | 1,443 | 1,114 | |
Other borrowings and subordinated debentures | 470 | 477 | |
Total Interest Expense | 1,913 | 1,591 | |
Net Interest Income | 21,466 | 19,763 | |
Provision for loan losses | (359) | (530) | |
Net Interest Income After Provision for Loan Losses | 21,825 | 20,293 | |
Non-interest Income | |||
Service charges on deposit accounts | 3,009 | 2,845 | |
Interchange income | 1,922 | 1,878 | |
Net gains on assets | |||
Mortgage loans | 2,571 | 1,642 | |
Securities | 27 | 162 | |
Mortgage loan servicing, net | 825 | (978) | |
Title insurance fees | 264 | 288 | |
Other | 1,721 | 1,972 | |
Total Non-Interest Income | 10,339 | 7,809 | |
Non-interest Expense | |||
Compensation and employee benefits | 14,147 | 11,881 | |
Occupancy, net | 2,142 | 2,207 | |
Data processing | 1,937 | 2,101 | |
Furniture, fixtures and equipment | 977 | 984 | |
Communications | 683 | 888 | |
Loan and collection | 413 | 825 | |
Advertising | 506 | 477 | |
Legal and professional | 437 | 413 | |
FDIC deposit insurance | 198 | 334 | |
Interchange expense | 283 | 266 | |
Credit card and bank service fees | 191 | 187 | |
Other | 1,655 | 1,482 | |
Total Non-Interest Expense | 23,569 | 22,045 | |
Income Before Income Tax | 8,595 | 6,057 | |
Income tax expense | 2,621 | 1,957 | |
Net Income | $ 5,974 | $ 4,100 | |
Net Income Per Common Share | |||
Basic (in dollars per share) | [1] | $ 0.28 | $ 0.19 |
Diluted (in dollars per share) | 0.28 | 0.19 | |
Dividends Per Common Share | |||
Declared (in dollars per share) | 0.10 | 0.08 | |
Paid (in dollars per share) | $ 0.10 | $ 0.08 | |
[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 | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||
Net income | $ 5,974 | $ 4,100 |
Securities available for sale | ||
Unrealized gains arising during period | 3,623 | 2,114 |
Change in unrealized gains for which a portion of other than temporary impairment has been recognized in earnings | (22) | (36) |
Reclassification adjustments for gains included in earnings | (106) | (174) |
Unrealized gains recognized in other comprehensive income on securities available for sale | 3,495 | 1,904 |
Income tax expense | 1,223 | 667 |
Unrealized gains recognized in other comprehensive income on available for sale securities, net of tax | 2,272 | 1,237 |
Other comprehensive income | 2,272 | 1,237 |
Comprehensive income | $ 8,246 | $ 5,337 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Consolidated Statements of Cash Flows (unaudited) [Abstract] | ||
Net income | $ 5,974 | $ 4,100 |
Adjustments to Reconcile Net Income to Net Cash From Operating Activities | ||
Proceeds from sales of loans held for sale | 81,681 | 57,181 |
Disbursements for loans held for sale | (80,777) | (55,689) |
Net increase in other liabilities held for sale | 717 | 0 |
Provision for loan losses | (359) | (530) |
Deferred income tax expense | 3,836 | 2,468 |
Deferred loan fees | (931) | (216) |
Net depreciation, amortization of intangible assets and premiums and accretion of discounts on securities, loans and interest bearing deposits - time | 1,279 | 1,306 |
Net gains on mortgage loans | (2,571) | (1,642) |
Net gains on securities | (27) | (162) |
Share based compensation | 432 | 410 |
Increase in accrued income and other assets | (2,848) | (1,130) |
Decrease in accrued expenses and other liabilities | (3,218) | (613) |
Total Adjustments | (2,786) | 1,383 |
Net Cash From Operating Activities | 3,188 | 5,483 |
Cash Flow From (Used in) Investing Activities | ||
Proceeds from the sale of securities available for sale | 6,152 | 42,391 |
Proceeds from the maturity of securities available for sale | 4,770 | 13,385 |
Principal payments received on securities available for sale | 45,305 | 37,246 |
Purchases of securities available for sale | (45,673) | (74,259) |
Proceeds from the maturity of interest bearing deposits - time | 251 | 1,678 |
Purchase of Federal Reserve Bank stock | 0 | (129) |
Net increase in portfolio loans (loans originated, net of principal payments) | (61,003) | (23,280) |
Net increase in payment plan receivables and other assets held for sale | (1,438) | 0 |
Proceeds from bank-owned life insurance | 523 | 0 |
Proceeds from the collection of vehicle service contract counterparty receivables | 191 | 4,217 |
Proceeds from the sale of other real estate and repossessed assets | 238 | 1,357 |
Capital expenditures | (680) | (611) |
Net Cash From (Used in) Investing Activities | (51,364) | 1,995 |
Cash Flow From Financing Activities | ||
Net increase in total deposits | 37,340 | 68,743 |
Net decrease in other borrowings | 0 | (1) |
Dividends paid | (2,133) | (1,750) |
Proceeds from issuance of common stock | 25 | 32 |
Repurchase of common stock | 0 | (15,510) |
Share based compensation withholding obligation | (427) | (66) |
Net Cash From Financing Activities | 34,805 | 51,448 |
Net Increase (Decrease) in Cash and Cash Equivalents | (13,371) | 58,926 |
Cash and Cash Equivalents at Beginning of Period | 83,194 | 85,783 |
Cash and Cash Equivalents at End of Period | 69,823 | 144,709 |
Cash paid during the period for | ||
Interest | 1,622 | 1,495 |
Income taxes | 140 | 120 |
Transfers to other real estate and repossessed assets | 502 | 873 |
Transfer of payment plan receivables to vehicle service contract counterparty receivables | 0 | 191 |
Purchase of securities available for sale not yet settled | $ 6,046 | $ 21,329 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Shareholders' Equity (unaudited) $ in Thousands | USD ($) |
Balance at beginning of period at Dec. 31, 2015 | $ 251,092 |
Balance at beginning of period, as adjusted at Dec. 31, 2015 | 251,092 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 4,100 |
Cash dividends declared | (1,750) |
Issuance of common stock | 32 |
Share based compensation | 410 |
Share based compensation withholding obligation | (66) |
Repurchase of common stock | (15,510) |
Net change in accumulated other comprehensive loss, net of related tax effect | 1,237 |
Balance at end of period at Mar. 31, 2016 | 239,545 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Cumulative effect of change in accounting | 0 |
Balance at beginning of period at Dec. 31, 2016 | 248,980 |
Balance at beginning of period, as adjusted at Dec. 31, 2016 | 249,332 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 5,974 |
Cash dividends declared | (2,133) |
Issuance of common stock | 25 |
Share based compensation | 432 |
Share based compensation withholding obligation | (427) |
Repurchase of common stock | 0 |
Net change in accumulated other comprehensive loss, net of related tax effect | 2,272 |
Balance at end of period at Mar. 31, 2017 | 255,475 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Cumulative effect of change in accounting | $ 352 |
Preparation of Financial Statem
Preparation of Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 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 March 31, 2017 and December 31, 2016, and the results of operations for the three month periods ended March 31, 2017 and 2016. The results of operations for the three month period ended March 31, 2017, is 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 determination of the allowance for loan losses, the valuation of originated mortgage loan servicing rights and the valuation of deferred tax assets. Refer to our 2016 Annual Report on Form 10-K for a disclosure of our accounting policies. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | 2. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606) ”. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amended guidance is effective for us on January 1, 2018. We have reviewed the types of financial instruments impacted by this amended guidance, including certain equity investments and liabilities measured under the fair value election, and have determined that we do not currently own any such instruments. The balance of this amended guidance is expected to impact certain disclosure items but is not expected to have any impact on our consolidated operating results or financial condition In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, requires lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Condensed Consolidated Statements of Financial Condition this impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of the Bank that meets regularly to discuss the implementation of the ASU. We are in the process of gathering data and reviewing loss methodologies as well as reviewing certain software applications that would assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our AFLL to increase under this ASU. In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This amended guidance is effective for us on January 1, 2019, with early adoption permitted. We adopted this amended guidance during the first quarter of 2017 using a modified retrospective approach. The impact of this adoption was to adjust our January 1, 2017 Condensed Consolidated Statement of Financial Position to reflect cumulative effect adjustments as summarized in the table below. The adjustments below reflect the recording of $0.46 million ($0.30 million, net of tax) of additional premium amortization on securities available for sale and a $0.30 million decrease in accumulated other comprehensive During the first quarter of 2017, we adopted the fair value method of accounting for our capitalized mortgage loan servicing rights pursuant to FASB Accounting Standards Codification topic 860 – “Transfers and Servicing”. Prior to January 1, 2017, we were accounting for our capitalized mortgage loan servicing rights under the amortization method. We adopted the fair value method using a modified retrospective adjustment to beginning accumulated deficit. The impact of the adoption of the fair value method is summarized in the table below. The adjustments below reflect the recording of a $0.54 million increase in the fair value of our capitalized mortgage loan servicing rights with a $0.19 million reduction in deferred tax assets, net for a net impact on accumulated deficit and total equity of $0.35 million. January 1, 2017 Originally Presented Cumulative Retrospective Adjustments January 1, 2017 Adjusted (Dollars in thousands) Deferred tax assets, net $ 32,818 $ (190 ) (1) $ 32,628 Capitalized mortgage loan servicing rights $ 13,671 $ 542 (1) $ 14,213 Total assets $ 2,548,950 $ 352 $ 2,549,302 Accumulated deficit $ (65,657 ) $ 352 (1) $ (300 ) (2) $ (65,605 ) Accumulated other comprehensive loss $ (9,108 ) $ 300 (2) $ (8,808 ) Total Shareholders’ Equity $ 248,980 $ 352 $ 249,332 Total Liabilities and Shareholders’ Equity $ 2,548,950 $ 352 $ 2,549,302 (1) Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights. (2) Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2017 | |
Securities [Abstract] | |
Securities | 3. Securities Securities available for sale consist of the following: Amortized Cost Unrealized Fair Value Gains Losses (In thousands) March 31, 2017 U.S. agency $ 28,636 $ 211 $ 63 $ 28,784 U.S. agency residential mortgage-backed 147,432 1,165 723 147,874 U.S. agency commercial mortgage-backed 12,298 52 155 12,195 Private label mortgage-backed 29,018 218 396 28,840 Other asset backed 145,659 346 210 145,795 Obligations of states and political subdivisions 181,727 716 2,193 180,250 Corporate 60,790 380 203 60,967 Trust preferred 2,924 - 271 2,653 Foreign government 1,616 - 10 1,606 Total $ 610,100 $ 3,088 $ 4,224 $ 608,964 December 31, 2016 U.S. agency $ 28,909 $ 159 $ 80 $ 28,988 U.S. agency residential mortgage-backed 156,053 1,173 937 156,289 U.S. agency commercial mortgage-backed 12,799 28 195 12,632 Private label mortgage-backed 35,035 216 524 34,727 Other asset backed 146,829 271 391 146,709 Obligations of states and political subdivisions 175,180 478 4,759 170,899 Corporate 56,356 223 399 56,180 Trust preferred 2,922 - 343 2,579 Foreign government 1,626 - 13 1,613 Total $ 615,709 $ 2,548 $ 7,641 $ 610,616 We adopted ASU 2017-08 during the first quarter of 2017 using a modified retrospective approach. As a result, the amortized cost of securities as of January 1, 2017 was adjusted lower by $0.46 million (see note #2). 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 Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) March 31, 2017 U.S. agency $ 3,721 $ 24 $ 7,707 $ 39 $ 11,428 $ 63 U.S. agency residential mortgage-backed 46,206 537 20,682 186 66,888 723 U.S. agency commercial mortgage-backed 6,672 154 140 1 6,812 155 Private label mortgage-backed 17,038 173 1,321 223 18,359 396 Other asset backed 39,168 95 11,949 115 51,117 210 Obligations of states and political subdivisions 103,301 2,030 10,090 163 113,391 2,193 Corporate 15,461 155 1,955 48 17,416 203 Trust preferred - - 2,653 271 2,653 271 Foreign government 1,606 10 - - 1,606 10 Total $ 233,173 $ 3,178 $ 56,497 $ 1,046 $ 289,670 $ 4,224 December 31, 2016 U.S. agency $ 4,179 $ 41 $ 8,217 $ 39 $ 12,396 $ 80 U.S. agency residential mortgage-backed 62,524 732 20,857 205 83,381 937 U.S. agency commercial mortgage-backed 6,079 194 143 1 6,222 195 Private label mortgage-backed 20,545 281 1,413 243 21,958 524 Other asset backed 52,958 172 17,763 219 70,721 391 Obligations of states and political subdivisions 113,078 4,014 14,623 745 127,701 4,759 Corporate 25,546 292 2,810 107 28,356 399 Trust preferred - - 2,579 343 2,579 343 Foreign government 1,613 13 - - 1,613 13 Total $ 286,522 $ 5,739 $ 68,405 $ 1,902 $ 354,927 $ 7,641 Our portfolio of securities available for sale 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. U.S. agency, U.S. agency residential mortgage-backed securities and U.S. agency commercial mortgage backed securities — at March 31, 2017, we had 23 U.S. agency, 118 U.S. agency residential mortgage-backed and 13 U.S. agency commercial mortgage-backed securities whose fair market value is less than amortized cost. The unrealized losses are largely attributed to increases in 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 mortgage backed securities — at March 31, 2017, we had 30 of this type of security whose fair value is less than amortized cost. The unrealized losses are primarily attributed to four securities purchased prior to 2016. Two of these four securities have an impairment in excess of 10% and all four of these holdings have been impaired for more than 12 months. The unrealized losses are largely attributable to credit spread widening on these four securities since their acquisition. These four 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. These four private label mortgage-backed securities are periodically reviewed for other than temporary impairment (“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 all four of these securities whose fair value is less than amortized cost. 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 March 31, 2017, we had 97 other asset backed securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and 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. Obligations of states and political subdivisions — at March 31, 2017, we had 308 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 March 31, 2017, we had 19 corporate securities whose fair value is less than amortized cost. The unrealized losses are primarily due to credit spread widening and 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. Trust preferred securities — at March 31, 2017, 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 March 31, 2017, continues to have satisfactory credit metrics and make interest payments. The following table breaks out our trust preferred securities in further detail as of March 31, 2017 and December 31, 2016: March 31, 2017 December 31, 2016 Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss (In thousands) Trust preferred securities Rated issues $ 1,812 $ (112 ) $ 1,800 $ (123 ) Unrated issues 841 (159 ) 779 (220 ) 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. Foreign government — at March 31, 2017, we had one foreign government security whose fair value is less than amortized cost. The unrealized loss is primarily due to increases in interest rates since acquisition. As management does not intend to liquidate this security and it is more likely than not that we will not be required to sell this security prior to recovery of this unrealized loss, this decline is not deemed to be other than temporary. We recorded no credit related OTTI charges in our Condensed Consolidated Statements of Operations related to securities available for sale during the three month periods ended March 31, 2017 and 2016, respectively. At March 31, 2017, three private label 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 March 31, 2017 Fair value $ 1,127 $ 1,013 $ 72 $ 2,212 Amortized cost 1,092 958 - 2,050 Non-credit unrealized loss - - - - Unrealized gain 35 55 72 162 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 March 31, 2017 $ - $ - $ - $ - 2016 - - - - Each of these securities is receiving principal and interest payments similar to principal reductions in the underlying collateral. All three of these securities have unrealized gains at March 31, 2017. 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 these securities is now less than previously recorded credit related OTTI amounts. A roll forward of credit losses recognized in earnings on securities available for sale for the three month periods ending March 31, follows: Three months ended March 31, 2017 2016 (In thousands) Balance at beginning of period $ 1,844 $ 1,844 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 - - Balance at end of period $ 1,844 $ 1,844 The amortized cost and fair value of securities available for sale at March 31, 2017, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 20,583 $ 20,596 Maturing after one year but within five years 107,748 107,791 Maturing after five years but within ten years 85,047 84,667 Maturing after ten years 62,315 61,206 275,693 274,260 U.S. agency residential mortgage-backed 147,432 147,874 U.S. agency commercial mortgage-backed 12,298 12,195 Private label residential mortgage-backed 29,018 28,840 Other asset backed 145,659 145,795 Total $ 610,100 $ 608,964 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 three month periods ending March 31, follows: Proceeds Realized Gains Losses (In thousands) 2017 $ 6,152 $ 106 $ - 2016 42,391 226 52 During 2017 and 2016, our trading securities consisted of various preferred stocks. During the first three months of 2017 and 2016, we recognized losses on trading securities of $0.079 million and $0.012 million, respectively, that are included in net gains on securities in the . Both of these amounts relate to losses recognized on trading securities still held at each respective period end. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, follows: Commercial Mortgage Installment Payment Plan Receivables(1) Subjective Allocation Total (In thousands) 2017 Balance at beginning of period $ 4,880 $ 8,681 $ 1,011 $ - $ 5,662 $ 20,234 Additions (deductions) Provision for loan losses (61 ) (699 ) 133 - 268 (359 ) Recoveries credited to allowance 404 486 239 - - 1,129 Loans charged against the allowance (135 ) (359 ) (472 ) - - (966 ) Balance at end of period $ 5,088 $ 8,109 $ 911 $ - $ 5,930 $ 20,038 2016 Balance at beginning of period $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 Additions (deductions) Provision for loan losses (404 ) (279 ) 65 (3 ) 91 (530 ) Recoveries credited to allowance 356 382 221 - - 959 Loans charged against the allowance - (198 ) (306 ) - - (504 ) Balance at end of period $ 5,622 $ 10,296 $ 1,161 $ 53 $ 5,363 $ 22,495 (1) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15. Allowance for loan losses and recorded investment in loans by portfolio segment follows: Commercial Mortgage Installment Subjective Allocation Total (In thousands) March 31, 2017 Allowance for loan losses Individually evaluated for impairment $ 1,162 $ 6,147 $ 325 $ - $ 7,634 Collectively evaluated for impairment 3,926 1,962 586 5,930 12,404 Total ending allowance balance $ 5,088 $ 8,109 $ 911 $ 5,930 $ 20,038 Loans Individually evaluated for impairment $ 11,573 $ 57,216 $ 4,675 $ 73,464 Collectively evaluated for impairment 805,883 526,178 270,329 1,602,390 Total loans recorded investment 817,456 583,394 275,004 1,675,854 Accrued interest included in recorded investment 1,972 2,364 771 5,107 Total loans $ 815,484 $ 581,030 $ 274,233 $ 1,670,747 December 31, 2016 Allowance for loan losses Individually evaluated for impairment $ 2,244 $ 6,579 $ 329 $ - $ 9,152 Collectively evaluated for impairment 2,636 2,102 682 5,662 11,082 Total ending allowance balance $ 4,880 $ 8,681 $ 1,011 $ 5,662 $ 20,234 Loans Individually evaluated for impairment $ 15,767 $ 59,151 $ 4,913 $ 79,831 Collectively evaluated for impairment 790,228 481,828 261,474 1,533,530 Total loans recorded investment 805,995 540,979 266,387 1,613,361 Accrued interest included in recorded investment 1,978 2,364 771 5,113 Total loans $ 804,017 $ 538,615 $ 265,616 $ 1,608,248 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) March 31, 2017 Commercial Income producing - real estate $ - $ 579 $ 579 Land, land development and construction - real estate - 4 4 Commercial and industrial - 742 742 Mortgage 1-4 family - 4,950 4,950 Resort lending - 1,414 1,414 Home equity - 1st lien - 208 208 Home equity - 2nd lien - 290 290 Purchased loans - - - Installment Home equity - 1st lien - 184 184 Home equity - 2nd lien - 350 350 Boat lending - 129 129 Recreational vehicle lending - 26 26 Other - 140 140 Total recorded investment $ - $ 9,016 $ 9,016 Accrued interest included in recorded investment $ - $ 2 $ 2 December 31, 2016 Commercial Income producing - real estate $ - $ 628 $ 628 Land, land development and construction - real estate - 105 105 Commercial and industrial - 4,430 4,430 Mortgage 1-4 family - 5,248 5,248 Resort lending - 1,507 1,507 Home equity - 1st lien - 222 222 Home equity - 2nd lien - 317 317 Purchased loans - - - Installment Home equity - 1st lien - 266 266 Home equity - 2nd lien - 289 289 Boat lending - 219 219 Recreational vehicle lending - 21 21 Other - 112 112 Total recorded investment $ - $ 13,364 $ 13,364 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) March 31, 2017 Commercial Income producing - real estate $ - $ 30 $ 418 $ 448 $ 281,597 $ 282,045 Land, land development and construction - real estate - - - - 53,649 53,649 Commercial and industrial 366 114 69 549 481,213 481,762 Mortgage 1-4 family 2,169 586 4,950 7,705 357,881 365,586 Resort lending 137 21 1,414 1,572 98,371 99,943 Home equity - 1st lien 133 - 208 341 30,596 30,937 Home equity - 2nd lien 385 32 290 707 48,280 48,987 Purchased loans 3 1 - 4 37,937 37,941 Installment Home equity - 1st lien 91 24 184 299 11,569 11,868 Home equity - 2nd lien 100 78 350 528 12,115 12,643 Boat lending 85 3 129 217 107,826 108,043 Recreational vehicle lending 42 2 26 70 78,698 78,768 Other 140 37 140 317 63,365 63,682 Total recorded investment $ 3,651 $ 928 $ 8,178 $ 12,757 $ 1,663,097 $ 1,675,854 Accrued interest included in recorded investment $ 46 $ 10 $ 2 $ 58 $ 5,049 $ 5,107 December 31, 2016 Commercial Income producing - real estate $ - $ - $ 383 $ 383 $ 287,255 $ 287,638 Land, land development and construction - real estate 74 - 31 105 51,670 51,775 Commercial and industrial 100 1,385 66 1,551 465,031 466,582 Mortgage 1-4 family 2,361 869 5,248 8,478 306,063 314,541 Resort lending - - 1,507 1,507 101,541 103,048 Home equity - 1st lien 149 - 222 371 28,645 29,016 Home equity - 2nd lien 470 218 317 1,005 54,232 55,237 Purchased loans 13 2 - 15 39,122 39,137 Installment Home equity - 1st lien 311 48 266 625 12,025 12,650 Home equity - 2nd lien 238 41 289 568 13,390 13,958 Boat lending 184 33 219 436 102,489 102,925 Recreational vehicle lending 68 33 21 122 74,413 74,535 Other 289 30 112 431 61,888 62,319 Total recorded investment $ 4,257 $ 2,659 $ 8,681 $ 15,597 $ 1,597,764 $ 1,613,361 Accrued interest included in recorded investment $ 45 $ 19 $ - $ 64 $ 5,049 $ 5,113 Impaired loans are as follows: March 31, 2017 December 31, 2016 Impaired loans with no allocated allowance (In thousands) TDR $ 370 $ 1,782 Non - TDR - 1,107 Impaired loans with an allocated allowance TDR - allowance based on collateral 2,358 3,527 TDR - allowance based on present value cash flow 70,160 72,613 Non - TDR - allowance based on collateral 286 491 Total impaired loans $ 73,174 $ 79,520 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 680 $ 1,868 TDR - allowance based on present value cash flow 6,901 7,146 Non - TDR - allowance based on collateral 53 138 Total amount of allowance for loan losses allocated $ 7,634 $ 9,152 Impaired loans by class are as follows (1): March 31, 2017 December 31, 2016 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 $ 370 $ 581 $ - $ 517 $ 768 $ - Land, land development & construction-real estate - - - 31 709 - Commercial and industrial - - - 2,341 3,261 - Mortgage 1-4 family 1 384 - 2 387 - Resort lending - - - - - - Home equity - 1st lien - - - - - - Home equity - 2nd lien - - - - - - Installment Home equity - 1st lien - 73 - - 66 - Home equity - 2nd lien - - - - - - Boat lending - - - - - - Recreational vehicle lending - - - - - - Other - - - - - - 371 1,038 - 2,891 5,191 - With an allowance recorded: Commercial Income producing - real estate 7,741 7,925 603 7,737 7,880 554 Land, land development & construction-real estate 167 872 8 239 244 36 Commercial and industrial 3,295 4,341 551 4,902 5,246 1,654 Mortgage 1-4 family 40,098 41,850 3,740 41,701 43,479 4,100 Resort lending 16,691 16,727 2,359 16,898 16,931 2,453 Home equity - 1st lien 234 241 28 235 242 10 Home equity - 2nd lien 192 276 20 315 398 16 Installment Home equity - 1st lien 1,884 2,007 92 1,994 2,117 118 Home equity - 2nd lien 2,308 2,339 205 2,415 2,443 182 Boat lending 1 6 - 1 6 - Recreational vehicle lending 106 105 6 109 108 6 Other 376 409 22 394 426 23 73,093 77,098 7,634 76,940 79,520 9,152 Total Commercial Income producing - real estate 8,111 8,506 603 8,254 8,648 554 Land, land development & construction-real estate 167 872 8 270 953 36 Commercial and industrial 3,295 4,341 551 7,243 8,507 1,654 Mortgage 1-4 family 40,099 42,234 3,740 41,703 43,866 4,100 Resort lending 16,691 16,727 2,359 16,898 16,931 2,453 Home equity - 1st lien 234 241 28 235 242 10 Home equity - 2nd lien 192 276 20 315 398 16 Installment Home equity - 1st lien 1,884 2,080 92 1,994 2,183 118 Home equity - 2nd lien 2,308 2,339 205 2,415 2,443 182 Boat lending 1 6 - 1 6 - Recreational vehicle lending 106 105 6 109 108 6 Other 376 409 22 394 426 23 Total $ 73,464 $ 78,136 $ 7,634 $ 79,831 $ 84,711 $ 9,152 Accrued interest included in recorded investment $ 290 $ 311 (1) There were no impaired purchased mortgage loans at March 31, 2017 or December 31, 2016. Average recorded investment in and interest income earned on impaired loans by class for the three month periods ending March 31, follows (1): 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 444 $ - $ 713 $ 2 Land, land development & construction-real estate 16 - 678 7 Commercial and industrial 1,171 - 1,232 21 Mortgage 1-4 family 2 4 12 1 Resort lending - - - - Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien - 1 1 1 Home equity - 2nd lien - - 7 - Boat lending - - - - Recreational vehicle lending - - - - Other - - - - 1,633 5 2,643 32 With an allowance recorded: Commercial Income producing - real estate 7,739 105 8,306 107 Land, land development & construction-real estate 203 2 1,587 13 Commercial and industrial 4,099 35 4,712 23 Mortgage 1-4 family 40,900 464 47,200 502 Resort lending 16,795 161 18,039 160 Home equity - 1st lien 235 2 206 2 Home equity - 2nd lien 254 2 182 1 Installment Home equity - 1st lien 1,939 34 2,326 42 Home equity - 2nd lien 2,362 35 2,861 44 Boat lending 1 - 2 - Recreational vehicle lending 108 1 120 2 Other 385 7 463 7 75,020 848 86,004 903 Total Commercial Income producing - real estate 8,183 105 9,019 109 Land, land development & construction-real estate 219 2 2,265 20 Commercial and industrial 5,270 35 5,944 44 Mortgage 1-4 family 40,902 468 47,212 503 Resort lending 16,795 161 18,039 160 Home equity - 1st lien 235 2 206 2 Home equity - 2nd lien 254 2 182 1 Installment Home equity - 1st lien 1,939 35 2,327 43 Home equity - 2nd lien 2,362 35 2,868 44 Boat lending 1 - 2 - Recreational vehicle lending 108 1 120 2 Other 385 7 463 7 Total $ 76,653 $ 853 $ 88,647 $ 935 (1) There were no impaired purchased mortgage loans during the three month periods ended March 31, 2017 and 2016, respectively. Our average investment in impaired loans was approximately $76.7 million and $88.6 million for the three-month periods ended March 31, 2017 and 2016, respectively. Cash receipts on impaired loans on non-accrual status are generally applied to the principal balance. Interest income recognized on impaired loans during both the three months ending March 31, 2017 and 2016, was approximately $0.9 million. Troubled debt restructurings follow: March 31, 2017 Commercial Retail (1) Total (In thousands) Performing TDRs $ 10,206 $ 57,544 $ 67,750 Non-performing TDRs(2) 1,039 4,099 (3) 5,138 Total $ 11,245 $ 61,643 $ 72,888 December 31, 2016 Commercial Retail (1) Total (In thousands) Performing TDRs $ 10,560 $ 59,726 $ 70,286 Non-performing TDRs(2) 3,565 4,071 (3) 7,636 Total $ 14,125 $ 63,797 $ 77,922 (1) Retail loans include mortgage and installment loan segments. (2) Included in non-performing loans table above. (3) Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis. We allocated $7.6 million and $9.0 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of March 31, 2017 and December 31, 2016, respectively. During the three months ended March 31, 2017 and 2016, 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) 2017 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 3 133 133 Mortgage 1-4 family 1 17 17 Resort lending 1 189 189 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 2 34 37 Home equity - 2nd lien 2 45 46 Boat lending - - - Recreational vehicle lending - - - Other - - - Total 9 $ 418 $ 422 2016 Commercial Income producing - real estate 2 $ 110 $ 110 Land, land development & construction-real estate - - - Commercial and industrial 4 1,758 1,758 Mortgage 1-4 family 2 83 153 Resort lending 1 116 117 Home equity - 1st lien 1 107 78 Home equity - 2nd lien - - - Installment Home equity - 1st lien 1 30 31 Home equity - 2nd lien 2 55 56 Boat lending - - - Recreational vehicle lending - - - Other - - - Total 13 $ 2,259 $ 2,303 (1) There were no purchased mortgage loans classified as troubled debt restructurings during the three month periods ended March 31, 2017 and 2016, respectively. The troubled debt restructurings described above for 2017 increased the allowance for loan losses by $0.05 million and resulted in zero charge offs while the troubled debt restructurings described above for 2016 increased the allowance for loan losses by $0.06 million and resulted in zero charge offs. A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms. There were no troubled debt restructurings that subsequently defaulted within twelve months following the modification during the three months ended March 31, 2017 or 2016. 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 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) March 31, 2017 Income producing - real estate $ 277,648 $ 3,407 $ 411 $ 579 $ 282,045 Land, land development and construction - real estate 53,578 67 - 4 53,649 Commercial and industrial 468,378 9,786 2,856 742 481,762 Total $ 799,604 $ 13,260 $ 3,267 $ 1,325 $ 817,456 Accrued interest included in total $ 1,912 $ 45 $ 15 $ - $ 1,972 December 31, 2016 Income producing - real estate $ 282,886 $ 3,787 $ 337 $ 628 $ 287,638 Land, land development and construction - real estate 51,603 67 - 105 51,775 Commercial and industrial 449,365 9,788 2,998 4,431 466,582 Total $ 783,854 $ 13,642 $ 3,335 $ 5,164 $ 805,995 Accrued interest included in total $ 1,915 $ 52 $ 11 $ - $ 1,978 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 Purchased Loans Total (In thousands) March 31, 2017 800 and above $ 38,929 $ 10,347 $ 6,716 $ 7,846 $ 8,420 $ 72,258 750-799 124,778 40,569 10,926 16,893 20,309 213,475 700-749 86,342 24,152 6,176 10,568 8,646 135,884 650-699 58,861 13,542 4,012 7,058 435 83,908 600-649 26,474 5,143 1,602 3,115 - 36,334 550-599 13,199 3,006 453 1,635 - 18,293 500-549 8,815 1,397 482 963 - 11,657 Under 500 4,976 91 256 276 - 5,599 Unknown 3,212 1,696 314 633 131 5,986 Total $ 365,586 $ 99,943 $ 30,937 $ 48,987 $ 37,941 $ 583,394 Accrued interest included in total $ 1,535 $ 381 $ 123 $ 213 $ 112 $ 2,364 December 31, 2016 800 and above $ 36,534 $ 10,484 $ 6,048 $ 8,392 $ 8,462 $ 69,920 750-799 102,382 41,999 10,006 20,113 20,984 195,484 700-749 69,337 24,727 5,706 12,360 9,115 121,245 650-699 50,621 13,798 4,106 8,167 437 77,129 600-649 25,270 5,769 1,674 3,067 - 35,780 550-599 13,747 3,030 455 1,699 - 18,931 500-549 9,215 1,438 486 981 - 12,120 Under 500 5,145 92 255 279 - 5,771 Unknown 2,290 1,711 280 179 139 4,599 Total $ 314,541 $ 103,048 $ 29,016 $ 55,237 $ 39,137 $ 540,979 Accrued interest included in total $ 1,466 $ 450 $ 111 $ 226 $ 111 $ 2,364 (1) Credit scores have been updated within the last twelve months. Installment(1) Home Equity 1st Lien Home Equity 2nd Lien Boat Lending Recreational Vehicle Lending Other Total (In thousands) March 31, 2017 800 and above $ 1,235 $ 1,370 $ 22,038 $ 22,843 $ 8,589 $ 56,075 750-799 2,340 3,007 54,385 39,161 22,303 121,196 700-749 1,766 2,448 21,100 11,977 14,073 51,364 650-699 2,731 2,390 7,506 3,433 8,905 24,965 600-649 1,611 1,612 1,579 781 2,198 7,781 550-599 1,160 973 813 251 777 3,974 500-549 887 629 343 181 417 2,457 Under 500 110 214 56 16 156 552 Unknown 28 - 223 125 6,264 6,640 Total $ 11,868 $ 12,643 $ 108,043 $ 78,768 $ 63,682 $ 275,004 Accrued interest included in total $ 51 $ 52 $ 267 $ 205 $ 196 $ 771 December 31, 2016 800 and above $ 1,354 $ 1,626 $ 21,422 $ 23,034 $ 8,911 $ 56,347 750-799 2,478 3,334 50,508 35,827 21,918 114,065 700-749 1,920 2,686 20,045 11,049 13,183 48,883 650-699 2,852 2,541 7,559 3,205 8,913 25,070 600-649 1,691 1,775 1,846 821 2,269 8,402 550-599 1,231 1,063 882 280 833 4,289 500-549 981 692 440 189 511 2,813 Under 500 114 220 73 16 211 634 Unknown 29 21 150 114 5,570 5,884 Total $ 12,650 $ 13,958 $ 102,925 $ 74,535 $ 62,319 $ 266,387 Accrued interest included in total $ 54 $ 59 $ 264 $ 203 $ 191 $ 771 (1) Credit scores have been updated within the last twelve months. Foreclosed residential real estate properties included in other real estate and repossessed assets on our Condensed Consolidated Statements of Financial Condition totaled $2.2 million and $1.9 million at March 31, 2017 and December 31, 2016, 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 $1.0 million at March 31, 2017 and December 31, 2016, respectively. |
Shareholders' Equity and Earnin
Shareholders' Equity and Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2017 | |
Shareholders' Equity and Earnings Per Common Share [Abstract] | |
Shareholders' Equity and Earnings Per Common Share | 5. Shareholders’ Equity and Earnings Per Common Share On January 23, 2017, 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, 2017. A reconciliation of basic and diluted net income per common share follows: Three Months Ended 2017 2016 (In thousands, except per share amounts) Net income $ 5,974 $ 4,100 Weighted average shares outstanding (1) 21,308 21,751 Effect of stock options 152 112 Stock units for deferred compensation plan for non-employee directors 119 113 Performance share units 60 - Restricted stock units - 86 Weighted average shares outstanding for calculation of diluted earnings per share 21,639 22,062 Net income per common share Basic (1) $ 0.28 $ 0.19 Diluted $ 0.28 $ 0.19 (1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. Weighted average stock options outstanding that were not included in weighted average shares outstanding for calculation of diluted earnings per share because they were anti-dilutive totaled zero and 0.03 million for the three-month periods ended March 31, 2017 and 2016, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | 6. 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: March 31, 2017 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 34,318 0.1 $ 1,017 Mandatory commitments to sell mortgage loans 68,023 0.1 (166 ) Pay-fixed interest rate swap agreements 50,226 8.0 359 Pay-variable interest rate swap agreements 50,226 8.0 (359 ) Purchased options 3,119 4.3 307 Written options 3,119 4.3 (307 ) Total $ 209,031 4.0 $ 851 December 31, 2016 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 26,658 0.1 $ 646 Mandatory commitments to sell mortgage loans 61,954 0.1 630 Pay-fixed interest rate swap agreements 46,121 8.6 249 Pay-variable interest rate swap agreements 46,121 8.6 (249 ) Purchased options 3,119 4.5 238 Written options 3,119 4.5 (238 ) Total $ 187,092 4.4 $ 1,276 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 our Condensed Consolidated Statements of Operations. 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 in our Condensed Consolidated Statements of Operations. 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. We currently offer 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 principal 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. We have 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. 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 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 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 $ 1,017 Other assets $ 646 Other liabilities $ - Other liabilities $ - Mandatory commitments to sell mortgage loans Other assets - Other assets 630 Other liabilities 166 Other liabilities - Pay-fixed interest rate swap agreements Other assets 590 Other assets 493 Other liabilities 231 Other liabilities 244 Pay-variable interest rate swap agreements Other assets 231 Other assets 244 Other liabilities 590 Other liabilities 493 Purchased options Other assets 307 Other assets 238 Other liabilities - Other liabilities - Written options Other assets - Other assets - Other liabilities 307 Other liabilities 238 Total derivatives $ 2,145 $ 2,251 $ 1,294 $ 975 The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows: Gain (Loss) Recognized in Income Location of Gain (Loss) Three Month Periods Ended March 31, Recognized in Income 2017 2016 (In thousands) No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ 371 $ 219 Mandatory commitments to sell mortgage loans Net gains on mortgage loans (796 ) (206 ) Pay-fixed interest rate swap agreements Interest income 110 (1,118 ) Pay-variable interest rate swap agreements Interest income (110 ) 1,118 Purchased options Interest expense 69 78 Written options Interest expense (69 ) (78 ) Total $ (425 ) $ 13 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Assets [Abstract] | |
Intangible Assets | 7. Intangible Assets The following table summarizes intangible assets, net of amortization: March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 6,118 $ 4,273 $ 6,118 $ 4,186 Amortization of other intangibles has been estimated through 2022 in the following table. (In thousands) Nine months ending December 31, 2017 $ 259 2018 346 2019 346 2020 346 2021 346 2022 202 Total $ 1,845 |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Share Based Compensation [Abstract] | |
Share Based Compensation | 8. 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 0.1 million shares of common stock as of March 31, 2017. 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 March 31, 2017. 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 the three month periods ended March 31, 2017 and 2016, pursuant to our long-term incentive plan, we granted 0.05 million and 0.07 million shares of restricted stock, respectively and 0.02 million and 0.03 million performance stock units (“PSU”), respectively to certain officers. The shares of restricted stock and PSUs 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 a banking index of our peers. 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 0.002 million shares to directors during both three month periods ended March 31, 2017 and 2016 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 during each three month period ended March 31, 2017 and 2016. The corresponding tax benefit relating to this expense was $0.1 million for each period. Total expense recognized for non-employee director share based payments was $0.04 million and $0.03 million during the three months ended March 31, 2017 and 2016, respectively. The corresponding tax benefit relating to this expense was $0.01 million for each period. At March 31, 2017, the total expected compensation cost related to non-vested restricted stock and PSUs not yet recognized was $3.2 million. The weighted-average period over which this amount will be recognized is 2.5 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, 2017 211,018 $ 5.05 Granted - Exercised (15,992 ) 4.14 Forfeited - Expired - Outstanding at March 31, 2017 195,026 $ 5.12 4.85 $ 3,038 Vested and expected to vest at March 31, 2017 195,026 $ 5.12 4.85 $ 3,038 Exercisable at March 31, 2017 195,026 $ 5.12 4.85 $ 3,038 A summary of outstanding non-vested restricted stock and PSUs and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2017 296,422 $ 14.52 Granted 68,473 21.07 Vested (50,297 ) 14.81 Forfeited (5,727 ) 15.57 Outstanding at March 31, 2017 308,871 $ 15.85 Certain information regarding options exercised during the periods follows: Three Months Ended March 31, 2017 2016 (In thousands) Intrinsic value $ 279 $ 117 Cash proceeds received $ 66 $ 32 Tax benefit realized $ 98 $ 41 |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax [Abstract] | |
Income Tax | 9. Income Tax Income tax expense was $2.6 million and $2.0 million during the three months ended March 31, 2017 and 2016, 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 $1.1 million at both March 31, 2017 and December 31, 2016. This valuation allowance on our deferred tax assets primarily relates to state income taxes at Mepco. 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 pending sale of Mepco’s payment plan business. At both March 31, 2017 and December 31, 2016, we had approximately $0.8 million, 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 2017. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2017 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | 10. 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 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 March 31, 2017, the Bank had positive undivided profits of $11.2 million. We can request regulatory approval for a return of capital from the Bank to the parent company. During the first quarter of 2016 we requested regulatory approval for a return of capital from the Bank to the parent company of $18.0 million. This return of capital request was approved by our banking regulators on February 24, 2016 and the Bank returned this amount to the parent company on February 25, 2016. It is not our intent to have dividends paid in amounts that would reduce the capital of our Bank to levels below those which we consider prudent and in accordance with guidelines of regulatory authorities. 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 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 March 31, 2017 and December 31, 2016, 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 capital conservation buffer began to phase in on January 1, 2016 with 1.25% and 0.625% added to the minimum ratio for adequately capitalized institutions for 2017 and 2016, respectively and 0.625% will be added each subsequent year until fully phased in during 2019. This capital conservation buffer is not reflected in the table that follows. 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) March 31, 2017 Total capital to risk-weighted assets Consolidated $ 291,505 15.71 % $ 148,484 8.00 % NA NA Independent Bank 273,822 14.77 148,308 8.00 $ 185,384 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 270,707 14.59 % $ 111,363 6.00 % NA NA Independent Bank 253,024 13.65 111,231 6.00 $ 148,308 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 239,913 12.93 % $ 83,522 4.50 % NA NA Independent Bank 253,024 13.65 83,423 4.50 $ 120,500 6.50 % Tier 1 capital to average assets Consolidated $ 270,707 10.65 % $ 101,693 4.00 % NA NA Independent Bank 253,024 9.96 101,609 4.00 $ 127,011 5.00 % December 31, 2016 Total capital to risk-weighted assets Consolidated $ 286,289 15.86 % $ 144,413 8.00 % NA NA Independent Bank 270,855 15.02 144,223 8.00 $ 180,279 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 265,405 14.70 % $ 108,309 6.00 % NA NA Independent Bank 249,971 13.87 108,167 6.00 $ 144,223 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 238,996 13.24 % $ 81,232 4.50 % NA NA Independent Bank 249,971 13.87 81,126 4.50 $ 117,181 6.50 % Tier 1 capital to average assets Consolidated $ 265,405 10.50 % $ 101,112 4.00 % NA NA Independent Bank 249,971 9.90 101,019 4.00 $ 126,274 5.00 % The components of our regulatory capital are as follows: Consolidated Independent Bank March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 (In thousands) Total shareholders' equity $ 255,475 $ 248,980 $ 262,716 $ 258,814 Add (deduct) Accumulated other comprehensive loss for regulatory purposes 738 3,310 738 3,310 Intangible assets (1,476 ) (1,159 ) (1,476 ) (1,159 ) Disallowed deferred tax assets (14,824 ) (12,135 ) (8,954 ) (10,994 ) Common equity tier 1 capital 239,913 238,996 253,024 249,971 Qualifying trust preferred securities 34,500 34,500 - - Disallowed deferred tax assets (3,706 ) (8,091 ) - - Tier 1 capital 270,707 265,405 253,024 249,971 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 20,798 20,884 20,798 20,884 Total risk-based capital $ 291,505 $ 286,289 $ 273,822 $ 270,855 |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 11. 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 obligations of states and political subdivisions 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 March 31, 2017 and December 31, 2016, all of our 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 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 : The fair value of capitalized mortgage loan servicing rights is based on a valuation model used by an independent third party that calculates the present value of estimated net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income. Certain model assumptions are generally unobservable and are based upon the best information available including data relating to our own servicing portfolio, reviews of mortgage servicing assumption and valuation surveys and input from various mortgage servicers and, therefore, are recorded as Level 3. Management evaluates the third party valuation for reasonableness each quarter as part of our financial reporting control processes. Prior to January 1, 2017, capitalized mortgage loan servicing rights were accounted for using the amortization method accounting and were measured at fair value on a non-recurring basis. During the first quarter of 2017, 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) March 31, 2017: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 331 $ 331 $ - $ - Securities available for sale U.S. agency 28,784 - 28,784 - U.S. agency residential mortgage-backed 147,874 - 147,874 - U.S. agency commercial mortgage-backed 12,195 - 12,195 - Private label mortgage-backed 28,840 - 28,840 - Other asset backed 145,795 - 145,795 - Obligations of states and political subdivisions 180,250 - 180,250 - Corporate 60,967 - 60,967 - Trust preferred 2,653 - 2,653 - Foreign government 1,606 - 1,606 - Loans held for sale 37,613 - 37,613 - Capitalized mortgage loan servicing rights 14,727 - - 14,727 Derivatives (1) 2,145 - 2,145 - Liabilities Derivatives (2) 1,294 - 1,294 - Measured at Fair Value on a Non-recurring basis: Assets Impaired loans (3) Commercial Income producing - real estate 294 - - 294 Land, land development & construction-real estate 10 - - 10 Commercial and industrial 1,213 - - 1,213 Mortgage 1-4 family 169 - - 169 Resort lending 225 - - 225 Other real estate (4) Commercial Income producing - real estate (5) 2,863 - 2,863 - Land, land development & construction-real estate 176 - - 176 Mortgage 1-4 family 146 - - 146 Resort lending 18 - - 18 (1) Included in accrued income and other assets (2) Included in accrued expenses and other liabilities (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. (5) Level 2 valuation is based on a signed purchase agreement. 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, 2016: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 410 $ 410 $ - $ - Securities available for sale U.S. agency 28,988 - 28,988 - U.S. agency residential mortgage-backed 156,289 - 156,289 - U.S. agency commercial mortgage-backed 12,632 - 12,632 - Private label mortgage-backed 34,727 - 34,727 - Other asset backed 146,709 - 146,709 - Obligations of states and political subdivisions 170,899 - 170,899 - Corporate 56,180 - 56,180 - Trust preferred 2,579 - 2,579 - Foreign government 1,613 - 1,613 - Loans held for sale 35,946 - 35,946 - Derivatives (1) 2,251 - 2,251 - Liabilities Derivatives (2) 975 - 975 - Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 8,163 - - 8,163 Impaired loans (4) Commercial Income producing - real estate 255 - - 255 Land, land development & construction-real estate 54 - - 54 Commercial and industrial 1,342 - - 1,342 Mortgage 1-4 family 361 - - 361 Other real estate (5) Commercial Income producing - real estate (6) 2,863 - 2,863 - Land, land development & construction-real estate 176 - - 176 Mortgage 1-4 family 98 - - 98 Resort lending 133 - - 133 (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. (6) Level 2 valuation is based on a signed purchase agreement. There were no transfers between Level 1 and Level 2 during the three months ended March 31, 2017 and 2016. 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 Three-Month Periods Ended March 31 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option 2017 2016 Net Gains (Losses) on Assets Mortgage Loan Servicing, net Total Change in Fair Values Included in Current Period Earnings Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Securities Loans Securities Loans Earnings (In thousands) Trading securities $ (79 ) $ - $ - $ (79 ) $ (12 ) $ - $ (12 ) Loans held for sale - 581 - 581 - 127 127 Capitalized mortgage loan servicing rights - - (264 ) (264 ) - - - 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 received. The following represent impairment charges recognized during the three month periods ended March 31, 2017 and 2016 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 $8.2 million, which is net of a valuation allowance of $2.3 million, at December 31, 2016. · Loans which are measured for impairment using the fair value of collateral for collateral dependent loans had a carrying amount of $2.6 million, with a valuation allowance of $0.7 million at March 31, 2017, and had a carrying amount of $4.0 million, with a valuation allowance of $2.0 million at December 31, 2016. · Other real estate, which is measured using the fair value of the property, had a carrying amount of $3.2 million which is net of a valuation allowance of $0.7 million at March 31, 2017, and a carrying amount of $3.2 million, which is net of a valuation allowance of $0.8 million, at December 31, 2016. A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31 follows: Capitalized Mortgage Loan Servicing Rights Three Months Ended March 31, 2017 2016 Beginning balance $ - $ - Change in accounting 14,213 - Beginning balance, as adjusted 14,213 - Total losses realized and unrealized: Included in results of operations (264 ) - Included in other comprehensive income - - Purchases, issuances, settlements, maturities and calls 778 - Transfers in and/or out of Level 3 - - Ending balance $ 14,727 $ - Amount of total losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at March 31 $ (264 ) $ - As discussed above we changed the accounting for capitalized mortgage loan servicing rights during the first quarter of 2017 (see note #2) and are now measuring valuation on a recurring basis. The fair value of our capitalized mortgage loan servicing rights has been determined based on a valuation model used by an independent third party Asset Fair Value Valuation Technique Unobservable Inputs Weighted Average (In thousands) March 31, 2017 Capitalized mortgage loan servicing rights $ 14,727 Present value of net Discount rate 10.08 % servicing revenue Cost to service $ 81 Ancillary income 24 Float rate 2.05 % Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Weighted Average March 31, 2017 (In thousands) Impaired loans Commercial $ 1,517 Sales comparison approach Adjustment for differences between comparable sales (2.1 )% Mortgage 394 Sales comparison approach Adjustment for differences between comparable sales (2.8 ) Other real estate Commercial 176 Sales comparison approach Adjustment for differences between comparable sales (22.5 ) Mortgage 164 Sales comparison approach Adjustment for differences between comparable sales (13.1 ) December 31, 2016 Capitalized mortgage loan servicing rights $ 8,163 Present value of net servicing revenue Discount rate 10.07 % Cost to service $ 83 Ancillary income 24 Float rate 1.97 % Impaired loans Commercial (1) 1,446 Sales comparison approach Adjustment for differences between comparable sales (1.5 )% Mortgage 361 Sales comparison approach Adjustment for differences between comparable sales (4.7 ) Other real estate Commercial 176 Sales comparison approach Adjustment for differences between comparable sales (22.5 ) Mortgage 231 Sales comparison approach Adjustment for differences between comparable sales (5.1 ) (1) In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016, we had an impaired collateral dependent commercial relationship that totaled $0.2 million that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory. Valuation techniques included appraisals and 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. 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 March 31, 2017 $ 37,613 $ 1,018 $ 36,595 December 31, 2016 35,946 437 35,509 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Values of Financial Instruments [Abstract] | |
Fair Values of Financial Instruments | 12. 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 may not be a precise estimate. 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. Fair value methodologies discussed below do not necessarily represent an exit price in the determination of the fair value of these financial instruments. 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 Payment plan receivables held for sale are also classified as Level 2 based on a signed purchase agreement as described in note #15. Accrued interest receivable and payable Derivative financial instruments Deposits Other borrowings Subordinated debentures The estimated recorded book balances and fair values follow: Recorded Book Balance Fair Value Fair Value Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) March 31, 2017 Assets Cash and due from banks $ 29,866 $ 29,866 $ 29,866 $ - $ - Interest bearing deposits 39,957 39,957 39,957 - - Interest bearing deposits - time 5,340 5,357 - 5,357 - Trading securities 331 331 331 - - Securities available for sale 608,964 608,964 - 608,964 - Federal Home Loan Bank and Federal Reserve Bank Stock 15,543 NA NA NA NA Net loans and loans held for sale (1) 1,721,180 1,689,457 - 70,471 1,618,986 Accrued interest receivable 7,697 7,697 1 2,795 4,901 Derivative financial instruments 2,145 2,145 - 2,145 - Liabilities Deposits with no stated maturity (2) $ 1,786,095 $ 1,786,095 $ 1,786,095 $ - $ - Deposits with stated maturity (2) 476,964 474,892 - 474,892 - Other borrowings 9,433 10,253 - 10,253 - Subordinated debentures 35,569 26,018 - 26,018 - Accrued interest payable 1,223 1,223 20 1,203 - Derivative financial instruments 1,294 1,294 - 1,294 - December 31, 2016 Assets Cash and due from banks $ 35,238 $ 35,238 $ 35,238 $ - $ - Interest bearing deposits 47,956 47,956 47,956 - - Interest bearing deposits - time 5,591 5,611 - 5,611 - Trading securities 410 410 410 - - Securities available for sale 610,616 610,616 - 610,616 - Federal Home Loan Bank and Federal Reserve Bank Stock 15,543 NA NA NA NA Net loans and loans held for sale (1) 1,655,335 1,629,587 - 67,321 1,562,266 Accrued interest receivable 7,316 7,316 5 2,364 4,947 Derivative financial instruments 2,251 2,251 - 2,251 - Liabilities Deposits with no stated maturity (2) $ 1,740,601 $ 1,740,601 $ 1,740,601 $ - $ - Deposits with stated maturity (2) 485,118 483,469 - 483,469 - Other borrowings 9,433 10,371 - 10,371 - Subordinated debentures 35,569 25,017 - 25,017 - Accrued interest payable 932 932 21 911 - Derivative financial instruments 975 975 - 975 - (1) Net loans and loans held for sale include $32.9 million and $31.4 million of payment plan receivables and commercial loans held for sale at March 31, 2017 and December 31, 2016, respectively. (2) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $12.9 million and $7.4 million at March 31, 2017 and December 31, 2016, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $28.5 million and $31.3 million March 31, 2017 and December 31, 2016, 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 | 3 Months Ended |
Mar. 31, 2017 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | 13. Contingent Liabilities In December 2016, we reached a tentative settlement regarding litigation initiated against us in Wayne County, Michigan Circuit Court. The Court issued a preliminary approval of this settlement in the first quarter of 2017. This litigation concerned checking account transaction sequencing during a period from February 2009 to June 2011. Under the terms of the settlement, we have agreed to pay $2.2 million and are also responsible for class notification costs and certain other expenses which are estimated to total approximately $0.1 million (these amounts were accrued for and expensed in the fourth quarter of 2016). We expect the settlement payment to occur in the second half of 2017. Although, we deny any liability associated with this matter and believe we have meritorious defenses to the allegations in the complaint, given the costs and uncertainty of litigation, it was determined that this settlement was in the best interests of the organization. We are also involved in various other 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 insignificant. 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). 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. Mepco 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 30 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. 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. Mepco is currently in the process of working to recover these receivables, primarily through negotiated settlements with the 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 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 owed 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. During the first quarter of 2016, we settled our last significant remaining litigation matter with certain of Mepco’s counterparties. This settlement resulted in our receipt of a cash payment of $4.0 million on March 31, 2016. This settlement also resulted in our receipt of an interest-bearing promissory note from one of Mepco’s counterparties for $1.5 million with monthly payments scheduled over a five-year period beginning in May 2016. Due to the lack of any payment history and limited financial information on this counterparty, we established a full reserve on this promissory note as of March 31, 2016. A full reserve on the remaining balance ($1.25 million) on this note was maintained at March 31, 2017. Thus far, this counterparty has made all required monthly payments on the note. As a longer-term payment history is developed on this note, we will continue to evaluate the need for all or any part of a reserve. Vehicle service contract counterparty receivables, net totaled $2.2 million as of March 31, 2017 compared to $2.3 million as of December 31, 2016. Expense/(credit) related to vehicle service contract counterparty contingencies included in non-interest expense totaled $(0.10) million and $0.03 million for the three month periods ended March 31, 2017 and 2016, respectively. These (recoveries) charges are being classified in non-interest expense – other in the Condensed Consolidated Statements of Operations 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. In connection with our pending sale of Mepco (see note #15), we agreed to contractually indemnify the purchaser from certain losses it may incur, including as a result of its failure to collect certain receivables it purchased as part of the business as well as breaches of representations and warranties we made in the sale agreement, subject to various limitations. We have not accrued any liability related to these indemnification requirements in our March 31, 2017 Condensed Consolidated Statement of Financial Condition because we believe the likelihood of having to pay any amount as a result of these indemnification obligations is remote. However, if the purchaser is unable to collect the receivables it purchased from Mepco or otherwise encounters difficulties in operating the business, it is possible it could make one or more claims against us pursuant to the sale agreement. In that event, we may incur expenses in defending any such claims and/or amounts paid to such purchaser to resolve such claims. 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 an expense (credit) of $0.03 million and $(0.02) million for the three months ended March 31, 2017 and 2016, respectively. The small expense provision in the first quarter of 2017 is due primarily to the settlement of a loss reimbursement claim at a slightly higher amount than what had been specifically reserved for at the end of 2016. The small credit provision in the first quarter of 2016 is due primarily to the settlement of certain loss reimbursement claims at slightly lower amounts than what had been specifically reserved for at the end of 2015. The reserve for loss reimbursements on sold mortgage loans totaled $0.5 million and $0.6 million at March 31, 2017 and December 31, 2016, respectively. This reserve is included in accrued expenses and other liabilities in our Condensed Consolidated Statements of Financial Condition. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss ("AOCL") [Abstract] | |
Accumulated Other Comprehensive Loss ("AOCL") | 14. Accumulated Other Comprehensive Loss (“AOCL”) A summary of changes in AOCL follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Total (In thousands) For the three months ended March 31, 2017 Balances at beginning of period $ (3,310 ) $ (5,798 ) $ (9,108 ) Cumulative effect of change in accounting 300 - 300 Balances at beginning of period, as adjusted (3,010 ) (5,798 ) (8,808 ) Other comprehensive income before reclassifications 2,341 - 2,341 Amounts reclassified from AOCL (69 ) - (69 ) Net current period other comprehensive income 2,272 - 2,272 Balances at end of period $ (738 ) $ (5,798 ) $ (6,536 ) 2016 Balances at beginning of period $ (238 ) $ (5,798 ) $ (6,036 ) Other comprehensive income before reclassifications 1,349 - 1,349 Amounts reclassified from AOCL (112 ) - (112 ) Net current period other comprehensive income 1,237 - 1,237 Balances at end of period $ 999 $ (5,798 ) $ (4,799 ) We adopted ASU 2017-08 during the first quarter of 2017 using a modified retrospective approach. As a result, accumulated other comprehensive loss as of January 1, 2017 was adjusted by $0.30 million (see note #2). 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 March 31 follows: AOCL Component Amount Affected Line Item in Condensed (In thousands) 2017 Unrealized gains on securities available for sale $ 106 Net gains on securities - Net impairment loss recognized in earnings 106 Total reclassifications before tax 37 Income tax expense $ 69 Reclassifications, net of tax 2016 Unrealized gains on securities available for sale $ 174 Net gains on securities - Net impairment loss recognized in earnings 174 Total reclassifications before tax 62 Income tax expense $ 112 Reclassifications, net of tax |
Payment Plan Receivables and Ot
Payment Plan Receivables and Other Assets Held for Sale | 3 Months Ended |
Mar. 31, 2017 | |
Payment Plan Receivables and Other Assets Held for Sale [Abstract] | |
Payment Plan Receivables and Other Assets Held for Sale | 15. Payment Plan Receivables and Other Assets Held for Sale On December 30, 2016 Mepco executed an Asset Purchase Agreement (the “APA”) with Seabury Asset Management LLC (“Seabury”). Pursuant to the terms of the APA, Mepco is selling its payment plan processing business, payment plan receivables ($32.3 million and $30.6 million at March 31, 2017 and December 31, 2016, respectively), commercial loans ($0.6 million and $0.8 million at March 31, 2017 and December 31, 2016, respectively) and certain other assets ($1.9 million and $2.0 million at March 31, 2017 and December 31, 2016, respectively) to Seabury, who also is assuming certain liabilities ($1.4 million and $0.7 million at March 31, 2017 and December 31, 2016, respectively) of Mepco. These assets and liabilities are categorized as “held for sale” in our March 31, 2017 and December 31, 2016 Condensed Consolidated Statements of Financial Condition. This transaction is expected to close during the second quarter of 2017. These assets and corresponding liabilities held for sale are carried at the lower of cost or fair value on an aggregate basis. Fair value adjustments, if any, are recorded in current earnings. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606) ”. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10) – Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU amends existing guidance related to the accounting for certain financial assets and liabilities. These amendments, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This amended guidance is effective for us on January 1, 2018. We have reviewed the types of financial instruments impacted by this amended guidance, including certain equity investments and liabilities measured under the fair value election, and have determined that we do not currently own any such instruments. The balance of this amended guidance is expected to impact certain disclosure items but is not expected to have any impact on our consolidated operating results or financial condition In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This ASU amends existing guidance related to the accounting for leases. These amendments, among other things, requires lessees to account for most leases on the balance sheet while recognizing expense on the income statement in a manner similar to existing guidance. For lessors the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. This amended guidance is effective for us on January 1, 2019 and is not expected to have a material impact on our consolidated operating results or financial condition. Based on a review of our operating leases that we currently have in place we do not expect a material change in the recognition, measurement and presentation of lease expense or impact on cash flow. While the primary impact will be the recognition of certain operating leases on our Condensed Consolidated Statements of Financial Condition this impact is not expected to be material. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. This ASU will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For securities available for sale, allowances will be recorded rather than reducing the carrying amount as is done under the current other-than-temporary impairment model. This ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. This amended guidance is effective for us on January 1, 2020. We began evaluating this ASU in 2016 and have formed a committee that includes personnel from various areas of the Bank that meets regularly to discuss the implementation of the ASU. We are in the process of gathering data and reviewing loss methodologies as well as reviewing certain software applications that would assist us in the implementation of this ASU. While we have not yet determined what the impact will be on our consolidated operating results or financial condition by the nature of the implementation of an expected loss model compared to an incurred loss approach, we would expect our AFLL to increase under this ASU. In March 2017, the FASB issued ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). This ASU shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This amended guidance is effective for us on January 1, 2019, with early adoption permitted. We adopted this amended guidance during the first quarter of 2017 using a modified retrospective approach. The impact of this adoption was to adjust our January 1, 2017 Condensed Consolidated Statement of Financial Position to reflect cumulative effect adjustments as summarized in the table below. The adjustments below reflect the recording of $0.46 million ($0.30 million, net of tax) of additional premium amortization on securities available for sale and a $0.30 million decrease in accumulated other comprehensive During the first quarter of 2017, we adopted the fair value method of accounting for our capitalized mortgage loan servicing rights pursuant to FASB Accounting Standards Codification topic 860 – “Transfers and Servicing”. Prior to January 1, 2017, we were accounting for our capitalized mortgage loan servicing rights under the amortization method. We adopted the fair value method using a modified retrospective adjustment to beginning accumulated deficit. The impact of the adoption of the fair value method is summarized in the table below. The adjustments below reflect the recording of a $0.54 million increase in the fair value of our capitalized mortgage loan servicing rights with a $0.19 million reduction in deferred tax assets, net for a net impact on accumulated deficit and total equity of $0.35 million. January 1, 2017 Originally Presented Cumulative Retrospective Adjustments January 1, 2017 Adjusted (Dollars in thousands) Deferred tax assets, net $ 32,818 $ (190 ) (1) $ 32,628 Capitalized mortgage loan servicing rights $ 13,671 $ 542 (1) $ 14,213 Total assets $ 2,548,950 $ 352 $ 2,549,302 Accumulated deficit $ (65,657 ) $ 352 (1) $ (300 ) (2) $ (65,605 ) Accumulated other comprehensive loss $ (9,108 ) $ 300 (2) $ (8,808 ) Total Shareholders’ Equity $ 248,980 $ 352 $ 249,332 Total Liabilities and Shareholders’ Equity $ 2,548,950 $ 352 $ 2,549,302 (1) Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights. (2) Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
New Accounting Standards [Abstract] | |
Condensed consolidated statement of financial position to reflect cumulative effect of adjustments | The impact of the adoption of the fair value method is summarized in the table below. The adjustments below reflect the recording of a $0.54 million increase in the fair value of our capitalized mortgage loan servicing rights with a $0.19 million reduction in deferred tax assets, net for a net impact on accumulated deficit and total equity of $0.35 million. January 1, 2017 Originally Presented Cumulative Retrospective Adjustments January 1, 2017 Adjusted (Dollars in thousands) Deferred tax assets, net $ 32,818 $ (190 ) (1) $ 32,628 Capitalized mortgage loan servicing rights $ 13,671 $ 542 (1) $ 14,213 Total assets $ 2,548,950 $ 352 $ 2,549,302 Accumulated deficit $ (65,657 ) $ 352 (1) $ (300 ) (2) $ (65,605 ) Accumulated other comprehensive loss $ (9,108 ) $ 300 (2) $ (8,808 ) Total Shareholders’ Equity $ 248,980 $ 352 $ 249,332 Total Liabilities and Shareholders’ Equity $ 2,548,950 $ 352 $ 2,549,302 (1) Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights. (2) Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Securities [Abstract] | |
Securities available for sale | Securities available for sale consist of the following: Amortized Cost Unrealized Fair Value Gains Losses (In thousands) March 31, 2017 U.S. agency $ 28,636 $ 211 $ 63 $ 28,784 U.S. agency residential mortgage-backed 147,432 1,165 723 147,874 U.S. agency commercial mortgage-backed 12,298 52 155 12,195 Private label mortgage-backed 29,018 218 396 28,840 Other asset backed 145,659 346 210 145,795 Obligations of states and political subdivisions 181,727 716 2,193 180,250 Corporate 60,790 380 203 60,967 Trust preferred 2,924 - 271 2,653 Foreign government 1,616 - 10 1,606 Total $ 610,100 $ 3,088 $ 4,224 $ 608,964 December 31, 2016 U.S. agency $ 28,909 $ 159 $ 80 $ 28,988 U.S. agency residential mortgage-backed 156,053 1,173 937 156,289 U.S. agency commercial mortgage-backed 12,799 28 195 12,632 Private label mortgage-backed 35,035 216 524 34,727 Other asset backed 146,829 271 391 146,709 Obligations of states and political subdivisions 175,180 478 4,759 170,899 Corporate 56,356 223 399 56,180 Trust preferred 2,922 - 343 2,579 Foreign government 1,626 - 13 1,613 Total $ 615,709 $ 2,548 $ 7,641 $ 610,616 |
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 Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) March 31, 2017 U.S. agency $ 3,721 $ 24 $ 7,707 $ 39 $ 11,428 $ 63 U.S. agency residential mortgage-backed 46,206 537 20,682 186 66,888 723 U.S. agency commercial mortgage-backed 6,672 154 140 1 6,812 155 Private label mortgage-backed 17,038 173 1,321 223 18,359 396 Other asset backed 39,168 95 11,949 115 51,117 210 Obligations of states and political subdivisions 103,301 2,030 10,090 163 113,391 2,193 Corporate 15,461 155 1,955 48 17,416 203 Trust preferred - - 2,653 271 2,653 271 Foreign government 1,606 10 - - 1,606 10 Total $ 233,173 $ 3,178 $ 56,497 $ 1,046 $ 289,670 $ 4,224 December 31, 2016 U.S. agency $ 4,179 $ 41 $ 8,217 $ 39 $ 12,396 $ 80 U.S. agency residential mortgage-backed 62,524 732 20,857 205 83,381 937 U.S. agency commercial mortgage-backed 6,079 194 143 1 6,222 195 Private label mortgage-backed 20,545 281 1,413 243 21,958 524 Other asset backed 52,958 172 17,763 219 70,721 391 Obligations of states and political subdivisions 113,078 4,014 14,623 745 127,701 4,759 Corporate 25,546 292 2,810 107 28,356 399 Trust preferred - - 2,579 343 2,579 343 Foreign government 1,613 13 - - 1,613 13 Total $ 286,522 $ 5,739 $ 68,405 $ 1,902 $ 354,927 $ 7,641 |
Trust preferred securities | The following table breaks out our trust preferred securities in further detail as of March 31, 2017 and December 31, 2016: March 31, 2017 December 31, 2016 Fair Value Net Unrealized Loss Fair Value Net Unrealized Loss (In thousands) Trust preferred securities Rated issues $ 1,812 $ (112 ) $ 1,800 $ (123 ) Unrated issues 841 (159 ) 779 (220 ) |
Private label mortgage backed securities below investment grade | At March 31, 2017, three private label 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 March 31, 2017 Fair value $ 1,127 $ 1,013 $ 72 $ 2,212 Amortized cost 1,092 958 - 2,050 Non-credit unrealized loss - - - - Unrealized gain 35 55 72 162 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 March 31, 2017 $ - $ - $ - $ - 2016 - - - - |
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 month periods ending March 31, follows: Three months ended March 31, 2017 2016 (In thousands) Balance at beginning of period $ 1,844 $ 1,844 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 - - Balance at end of period $ 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 March 31, 2017, by contractual maturity, follow: Amortized Cost Fair Value (In thousands) Maturing within one year $ 20,583 $ 20,596 Maturing after one year but within five years 107,748 107,791 Maturing after five years but within ten years 85,047 84,667 Maturing after ten years 62,315 61,206 275,693 274,260 U.S. agency residential mortgage-backed 147,432 147,874 U.S. agency commercial mortgage-backed 12,298 12,195 Private label residential mortgage-backed 29,018 28,840 Other asset backed 145,659 145,795 Total $ 610,100 $ 608,964 |
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 three month periods ending March 31, follows: Proceeds Realized Gains Losses (In thousands) 2017 $ 6,152 $ 106 $ - 2016 42,391 226 52 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, follows: Commercial Mortgage Installment Payment Plan Receivables(1) Subjective Allocation Total (In thousands) 2017 Balance at beginning of period $ 4,880 $ 8,681 $ 1,011 $ - $ 5,662 $ 20,234 Additions (deductions) Provision for loan losses (61 ) (699 ) 133 - 268 (359 ) Recoveries credited to allowance 404 486 239 - - 1,129 Loans charged against the allowance (135 ) (359 ) (472 ) - - (966 ) Balance at end of period $ 5,088 $ 8,109 $ 911 $ - $ 5,930 $ 20,038 2016 Balance at beginning of period $ 5,670 $ 10,391 $ 1,181 $ 56 $ 5,272 $ 22,570 Additions (deductions) Provision for loan losses (404 ) (279 ) 65 (3 ) 91 (530 ) Recoveries credited to allowance 356 382 221 - - 959 Loans charged against the allowance - (198 ) (306 ) - - (504 ) Balance at end of period $ 5,622 $ 10,296 $ 1,161 $ 53 $ 5,363 $ 22,495 (1) Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15. |
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 Subjective Allocation Total (In thousands) March 31, 2017 Allowance for loan losses Individually evaluated for impairment $ 1,162 $ 6,147 $ 325 $ - $ 7,634 Collectively evaluated for impairment 3,926 1,962 586 5,930 12,404 Total ending allowance balance $ 5,088 $ 8,109 $ 911 $ 5,930 $ 20,038 Loans Individually evaluated for impairment $ 11,573 $ 57,216 $ 4,675 $ 73,464 Collectively evaluated for impairment 805,883 526,178 270,329 1,602,390 Total loans recorded investment 817,456 583,394 275,004 1,675,854 Accrued interest included in recorded investment 1,972 2,364 771 5,107 Total loans $ 815,484 $ 581,030 $ 274,233 $ 1,670,747 December 31, 2016 Allowance for loan losses Individually evaluated for impairment $ 2,244 $ 6,579 $ 329 $ - $ 9,152 Collectively evaluated for impairment 2,636 2,102 682 5,662 11,082 Total ending allowance balance $ 4,880 $ 8,681 $ 1,011 $ 5,662 $ 20,234 Loans Individually evaluated for impairment $ 15,767 $ 59,151 $ 4,913 $ 79,831 Collectively evaluated for impairment 790,228 481,828 261,474 1,533,530 Total loans recorded investment 805,995 540,979 266,387 1,613,361 Accrued interest included in recorded investment 1,978 2,364 771 5,113 Total loans $ 804,017 $ 538,615 $ 265,616 $ 1,608,248 |
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) March 31, 2017 Commercial Income producing - real estate $ - $ 579 $ 579 Land, land development and construction - real estate - 4 4 Commercial and industrial - 742 742 Mortgage 1-4 family - 4,950 4,950 Resort lending - 1,414 1,414 Home equity - 1st lien - 208 208 Home equity - 2nd lien - 290 290 Purchased loans - - - Installment Home equity - 1st lien - 184 184 Home equity - 2nd lien - 350 350 Boat lending - 129 129 Recreational vehicle lending - 26 26 Other - 140 140 Total recorded investment $ - $ 9,016 $ 9,016 Accrued interest included in recorded investment $ - $ 2 $ 2 December 31, 2016 Commercial Income producing - real estate $ - $ 628 $ 628 Land, land development and construction - real estate - 105 105 Commercial and industrial - 4,430 4,430 Mortgage 1-4 family - 5,248 5,248 Resort lending - 1,507 1,507 Home equity - 1st lien - 222 222 Home equity - 2nd lien - 317 317 Purchased loans - - - Installment Home equity - 1st lien - 266 266 Home equity - 2nd lien - 289 289 Boat lending - 219 219 Recreational vehicle lending - 21 21 Other - 112 112 Total recorded investment $ - $ 13,364 $ 13,364 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) March 31, 2017 Commercial Income producing - real estate $ - $ 30 $ 418 $ 448 $ 281,597 $ 282,045 Land, land development and construction - real estate - - - - 53,649 53,649 Commercial and industrial 366 114 69 549 481,213 481,762 Mortgage 1-4 family 2,169 586 4,950 7,705 357,881 365,586 Resort lending 137 21 1,414 1,572 98,371 99,943 Home equity - 1st lien 133 - 208 341 30,596 30,937 Home equity - 2nd lien 385 32 290 707 48,280 48,987 Purchased loans 3 1 - 4 37,937 37,941 Installment Home equity - 1st lien 91 24 184 299 11,569 11,868 Home equity - 2nd lien 100 78 350 528 12,115 12,643 Boat lending 85 3 129 217 107,826 108,043 Recreational vehicle lending 42 2 26 70 78,698 78,768 Other 140 37 140 317 63,365 63,682 Total recorded investment $ 3,651 $ 928 $ 8,178 $ 12,757 $ 1,663,097 $ 1,675,854 Accrued interest included in recorded investment $ 46 $ 10 $ 2 $ 58 $ 5,049 $ 5,107 December 31, 2016 Commercial Income producing - real estate $ - $ - $ 383 $ 383 $ 287,255 $ 287,638 Land, land development and construction - real estate 74 - 31 105 51,670 51,775 Commercial and industrial 100 1,385 66 1,551 465,031 466,582 Mortgage 1-4 family 2,361 869 5,248 8,478 306,063 314,541 Resort lending - - 1,507 1,507 101,541 103,048 Home equity - 1st lien 149 - 222 371 28,645 29,016 Home equity - 2nd lien 470 218 317 1,005 54,232 55,237 Purchased loans 13 2 - 15 39,122 39,137 Installment Home equity - 1st lien 311 48 266 625 12,025 12,650 Home equity - 2nd lien 238 41 289 568 13,390 13,958 Boat lending 184 33 219 436 102,489 102,925 Recreational vehicle lending 68 33 21 122 74,413 74,535 Other 289 30 112 431 61,888 62,319 Total recorded investment $ 4,257 $ 2,659 $ 8,681 $ 15,597 $ 1,597,764 $ 1,613,361 Accrued interest included in recorded investment $ 45 $ 19 $ - $ 64 $ 5,049 $ 5,113 |
Impaired loans | Impaired loans are as follows: March 31, 2017 December 31, 2016 Impaired loans with no allocated allowance (In thousands) TDR $ 370 $ 1,782 Non - TDR - 1,107 Impaired loans with an allocated allowance TDR - allowance based on collateral 2,358 3,527 TDR - allowance based on present value cash flow 70,160 72,613 Non - TDR - allowance based on collateral 286 491 Total impaired loans $ 73,174 $ 79,520 Amount of allowance for loan losses allocated TDR - allowance based on collateral $ 680 $ 1,868 TDR - allowance based on present value cash flow 6,901 7,146 Non - TDR - allowance based on collateral 53 138 Total amount of allowance for loan losses allocated $ 7,634 $ 9,152 Impaired loans by class are as follows (1): March 31, 2017 December 31, 2016 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 $ 370 $ 581 $ - $ 517 $ 768 $ - Land, land development & construction-real estate - - - 31 709 - Commercial and industrial - - - 2,341 3,261 - Mortgage 1-4 family 1 384 - 2 387 - Resort lending - - - - - - Home equity - 1st lien - - - - - - Home equity - 2nd lien - - - - - - Installment Home equity - 1st lien - 73 - - 66 - Home equity - 2nd lien - - - - - - Boat lending - - - - - - Recreational vehicle lending - - - - - - Other - - - - - - 371 1,038 - 2,891 5,191 - With an allowance recorded: Commercial Income producing - real estate 7,741 7,925 603 7,737 7,880 554 Land, land development & construction-real estate 167 872 8 239 244 36 Commercial and industrial 3,295 4,341 551 4,902 5,246 1,654 Mortgage 1-4 family 40,098 41,850 3,740 41,701 43,479 4,100 Resort lending 16,691 16,727 2,359 16,898 16,931 2,453 Home equity - 1st lien 234 241 28 235 242 10 Home equity - 2nd lien 192 276 20 315 398 16 Installment Home equity - 1st lien 1,884 2,007 92 1,994 2,117 118 Home equity - 2nd lien 2,308 2,339 205 2,415 2,443 182 Boat lending 1 6 - 1 6 - Recreational vehicle lending 106 105 6 109 108 6 Other 376 409 22 394 426 23 73,093 77,098 7,634 76,940 79,520 9,152 Total Commercial Income producing - real estate 8,111 8,506 603 8,254 8,648 554 Land, land development & construction-real estate 167 872 8 270 953 36 Commercial and industrial 3,295 4,341 551 7,243 8,507 1,654 Mortgage 1-4 family 40,099 42,234 3,740 41,703 43,866 4,100 Resort lending 16,691 16,727 2,359 16,898 16,931 2,453 Home equity - 1st lien 234 241 28 235 242 10 Home equity - 2nd lien 192 276 20 315 398 16 Installment Home equity - 1st lien 1,884 2,080 92 1,994 2,183 118 Home equity - 2nd lien 2,308 2,339 205 2,415 2,443 182 Boat lending 1 6 - 1 6 - Recreational vehicle lending 106 105 6 109 108 6 Other 376 409 22 394 426 23 Total $ 73,464 $ 78,136 $ 7,634 $ 79,831 $ 84,711 $ 9,152 Accrued interest included in recorded investment $ 290 $ 311 (1) There were no impaired purchased mortgage loans at March 31, 2017 or December 31, 2016. |
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 March 31, follows (1): 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: (In thousands) Commercial Income producing - real estate $ 444 $ - $ 713 $ 2 Land, land development & construction-real estate 16 - 678 7 Commercial and industrial 1,171 - 1,232 21 Mortgage 1-4 family 2 4 12 1 Resort lending - - - - Home equity - 1st lien - - - - Home equity - 2nd lien - - - - Installment Home equity - 1st lien - 1 1 1 Home equity - 2nd lien - - 7 - Boat lending - - - - Recreational vehicle lending - - - - Other - - - - 1,633 5 2,643 32 With an allowance recorded: Commercial Income producing - real estate 7,739 105 8,306 107 Land, land development & construction-real estate 203 2 1,587 13 Commercial and industrial 4,099 35 4,712 23 Mortgage 1-4 family 40,900 464 47,200 502 Resort lending 16,795 161 18,039 160 Home equity - 1st lien 235 2 206 2 Home equity - 2nd lien 254 2 182 1 Installment Home equity - 1st lien 1,939 34 2,326 42 Home equity - 2nd lien 2,362 35 2,861 44 Boat lending 1 - 2 - Recreational vehicle lending 108 1 120 2 Other 385 7 463 7 75,020 848 86,004 903 Total Commercial Income producing - real estate 8,183 105 9,019 109 Land, land development & construction-real estate 219 2 2,265 20 Commercial and industrial 5,270 35 5,944 44 Mortgage 1-4 family 40,902 468 47,212 503 Resort lending 16,795 161 18,039 160 Home equity - 1st lien 235 2 206 2 Home equity - 2nd lien 254 2 182 1 Installment Home equity - 1st lien 1,939 35 2,327 43 Home equity - 2nd lien 2,362 35 2,868 44 Boat lending 1 - 2 - Recreational vehicle lending 108 1 120 2 Other 385 7 463 7 Total $ 76,653 $ 853 $ 88,647 $ 935 (1) There were no impaired purchased mortgage loans during the three month periods ended March 31, 2017 and 2016, respectively. |
Troubled debt restructurings | Troubled debt restructurings follow: March 31, 2017 Commercial Retail (1) Total (In thousands) Performing TDRs $ 10,206 $ 57,544 $ 67,750 Non-performing TDRs(2) 1,039 4,099 (3) 5,138 Total $ 11,245 $ 61,643 $ 72,888 December 31, 2016 Commercial Retail (1) Total (In thousands) Performing TDRs $ 10,560 $ 59,726 $ 70,286 Non-performing TDRs(2) 3,565 4,071 (3) 7,636 Total $ 14,125 $ 63,797 $ 77,922 (1) Retail loans include mortgage and installment loan segments. (2) Included in non-performing loans table above. (3) 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) 2017 Commercial Income producing - real estate - $ - $ - Land, land development & construction-real estate - - - Commercial and industrial 3 133 133 Mortgage 1-4 family 1 17 17 Resort lending 1 189 189 Home equity - 1st lien - - - Home equity - 2nd lien - - - Installment Home equity - 1st lien 2 34 37 Home equity - 2nd lien 2 45 46 Boat lending - - - Recreational vehicle lending - - - Other - - - Total 9 $ 418 $ 422 2016 Commercial Income producing - real estate 2 $ 110 $ 110 Land, land development & construction-real estate - - - Commercial and industrial 4 1,758 1,758 Mortgage 1-4 family 2 83 153 Resort lending 1 116 117 Home equity - 1st lien 1 107 78 Home equity - 2nd lien - - - Installment Home equity - 1st lien 1 30 31 Home equity - 2nd lien 2 55 56 Boat lending - - - Recreational vehicle lending - - - Other - - - Total 13 $ 2,259 $ 2,303 (1) There were no purchased mortgage loans classified as troubled debt restructurings during the three month periods ended March 31, 2017 and 2016, respectively. |
Summary of loan ratings by loan class | The following table summarizes loan ratings by loan class for our commercial loan segment: Commercial Non-watch 1-6 Watch 7-8 Substandard Accrual 9 Non- Accrual 10-11 Total (In thousands) March 31, 2017 Income producing - real estate $ 277,648 $ 3,407 $ 411 $ 579 $ 282,045 Land, land development and construction - real estate 53,578 67 - 4 53,649 Commercial and industrial 468,378 9,786 2,856 742 481,762 Total $ 799,604 $ 13,260 $ 3,267 $ 1,325 $ 817,456 Accrued interest included in total $ 1,912 $ 45 $ 15 $ - $ 1,972 December 31, 2016 Income producing - real estate $ 282,886 $ 3,787 $ 337 $ 628 $ 287,638 Land, land development and construction - real estate 51,603 67 - 105 51,775 Commercial and industrial 449,365 9,788 2,998 4,431 466,582 Total $ 783,854 $ 13,642 $ 3,335 $ 5,164 $ 805,995 Accrued interest included in total $ 1,915 $ 52 $ 11 $ - $ 1,978 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 Purchased Loans Total (In thousands) March 31, 2017 800 and above $ 38,929 $ 10,347 $ 6,716 $ 7,846 $ 8,420 $ 72,258 750-799 124,778 40,569 10,926 16,893 20,309 213,475 700-749 86,342 24,152 6,176 10,568 8,646 135,884 650-699 58,861 13,542 4,012 7,058 435 83,908 600-649 26,474 5,143 1,602 3,115 - 36,334 550-599 13,199 3,006 453 1,635 - 18,293 500-549 8,815 1,397 482 963 - 11,657 Under 500 4,976 91 256 276 - 5,599 Unknown 3,212 1,696 314 633 131 5,986 Total $ 365,586 $ 99,943 $ 30,937 $ 48,987 $ 37,941 $ 583,394 Accrued interest included in total $ 1,535 $ 381 $ 123 $ 213 $ 112 $ 2,364 December 31, 2016 800 and above $ 36,534 $ 10,484 $ 6,048 $ 8,392 $ 8,462 $ 69,920 750-799 102,382 41,999 10,006 20,113 20,984 195,484 700-749 69,337 24,727 5,706 12,360 9,115 121,245 650-699 50,621 13,798 4,106 8,167 437 77,129 600-649 25,270 5,769 1,674 3,067 - 35,780 550-599 13,747 3,030 455 1,699 - 18,931 500-549 9,215 1,438 486 981 - 12,120 Under 500 5,145 92 255 279 - 5,771 Unknown 2,290 1,711 280 179 139 4,599 Total $ 314,541 $ 103,048 $ 29,016 $ 55,237 $ 39,137 $ 540,979 Accrued interest included in total $ 1,466 $ 450 $ 111 $ 226 $ 111 $ 2,364 (1) Credit scores have been updated within the last twelve months. Installment(1) Home Equity 1st Lien Home Equity 2nd Lien Boat Lending Recreational Vehicle Lending Other Total (In thousands) March 31, 2017 800 and above $ 1,235 $ 1,370 $ 22,038 $ 22,843 $ 8,589 $ 56,075 750-799 2,340 3,007 54,385 39,161 22,303 121,196 700-749 1,766 2,448 21,100 11,977 14,073 51,364 650-699 2,731 2,390 7,506 3,433 8,905 24,965 600-649 1,611 1,612 1,579 781 2,198 7,781 550-599 1,160 973 813 251 777 3,974 500-549 887 629 343 181 417 2,457 Under 500 110 214 56 16 156 552 Unknown 28 - 223 125 6,264 6,640 Total $ 11,868 $ 12,643 $ 108,043 $ 78,768 $ 63,682 $ 275,004 Accrued interest included in total $ 51 $ 52 $ 267 $ 205 $ 196 $ 771 December 31, 2016 800 and above $ 1,354 $ 1,626 $ 21,422 $ 23,034 $ 8,911 $ 56,347 750-799 2,478 3,334 50,508 35,827 21,918 114,065 700-749 1,920 2,686 20,045 11,049 13,183 48,883 650-699 2,852 2,541 7,559 3,205 8,913 25,070 600-649 1,691 1,775 1,846 821 2,269 8,402 550-599 1,231 1,063 882 280 833 4,289 500-549 981 692 440 189 511 2,813 Under 500 114 220 73 16 211 634 Unknown 29 21 150 114 5,570 5,884 Total $ 12,650 $ 13,958 $ 102,925 $ 74,535 $ 62,319 $ 266,387 Accrued interest included in total $ 54 $ 59 $ 264 $ 203 $ 191 $ 771 (1) Credit scores have been updated within the last twelve months. |
Shareholders' Equity and Earn27
Shareholders' Equity and Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 (In thousands, except per share amounts) Net income $ 5,974 $ 4,100 Weighted average shares outstanding (1) 21,308 21,751 Effect of stock options 152 112 Stock units for deferred compensation plan for non-employee directors 119 113 Performance share units 60 - Restricted stock units - 86 Weighted average shares outstanding for calculation of diluted earnings per share 21,639 22,062 Net income per common share Basic (1) $ 0.28 $ 0.19 Diluted $ 0.28 $ 0.19 (1) Basic net income per common share includes weighted average common shares outstanding during the period and participating share awards. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 34,318 0.1 $ 1,017 Mandatory commitments to sell mortgage loans 68,023 0.1 (166 ) Pay-fixed interest rate swap agreements 50,226 8.0 359 Pay-variable interest rate swap agreements 50,226 8.0 (359 ) Purchased options 3,119 4.3 307 Written options 3,119 4.3 (307 ) Total $ 209,031 4.0 $ 851 December 31, 2016 Notional Amount Average Maturity (years) Fair Value (Dollars in thousands) No hedge designation Rate-lock mortgage loan commitments $ 26,658 0.1 $ 646 Mandatory commitments to sell mortgage loans 61,954 0.1 630 Pay-fixed interest rate swap agreements 46,121 8.6 249 Pay-variable interest rate swap agreements 46,121 8.6 (249 ) Purchased options 3,119 4.5 238 Written options 3,119 4.5 (238 ) Total $ 187,092 4.4 $ 1,276 |
Fair value of derivative instruments | Fair Values of Derivative Instruments Asset Derivatives Liability Derivatives March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 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 $ 1,017 Other assets $ 646 Other liabilities $ - Other liabilities $ - Mandatory commitments to sell mortgage loans Other assets - Other assets 630 Other liabilities 166 Other liabilities - Pay-fixed interest rate swap agreements Other assets 590 Other assets 493 Other liabilities 231 Other liabilities 244 Pay-variable interest rate swap agreements Other assets 231 Other assets 244 Other liabilities 590 Other liabilities 493 Purchased options Other assets 307 Other assets 238 Other liabilities - Other liabilities - Written options Other assets - Other assets - Other liabilities 307 Other liabilities 238 Total derivatives $ 2,145 $ 2,251 $ 1,294 $ 975 |
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: Gain (Loss) Recognized in Income Location of Gain (Loss) Three Month Periods Ended March 31, Recognized in Income 2017 2016 (In thousands) No hedge designation Rate-lock mortgage loan commitments Net gains on mortgage loans $ 371 $ 219 Mandatory commitments to sell mortgage loans Net gains on mortgage loans (796 ) (206 ) Pay-fixed interest rate swap agreements Interest income 110 (1,118 ) Pay-variable interest rate swap agreements Interest income (110 ) 1,118 Purchased options Interest expense 69 78 Written options Interest expense (69 ) (78 ) Total $ (425 ) $ 13 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Intangible Assets [Abstract] | |
Other intangible assets, net of amortization | The following table summarizes intangible assets, net of amortization: March 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Amortized intangible assets - core deposits $ 6,118 $ 4,273 $ 6,118 $ 4,186 |
Estimated amortization of other intangible assets | Amortization of other intangibles has been estimated through 2022 in the following table. (In thousands) Nine months ending December 31, 2017 $ 259 2018 346 2019 346 2020 346 2021 346 2022 202 Total $ 1,845 |
Share Based Compensation (Table
Share Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 211,018 $ 5.05 Granted - Exercised (15,992 ) 4.14 Forfeited - Expired - Outstanding at March 31, 2017 195,026 $ 5.12 4.85 $ 3,038 Vested and expected to vest at March 31, 2017 195,026 $ 5.12 4.85 $ 3,038 Exercisable at March 31, 2017 195,026 $ 5.12 4.85 $ 3,038 |
Summary of non-vested restricted stock, restricted stock units and PSU's | A summary of outstanding non-vested restricted stock and PSUs and related transactions follows: Number of Shares Weighted- Average Grant Date Fair Value Outstanding at January 1, 2017 296,422 $ 14.52 Granted 68,473 21.07 Vested (50,297 ) 14.81 Forfeited (5,727 ) 15.57 Outstanding at March 31, 2017 308,871 $ 15.85 |
Information regarding options exercised | Certain information regarding options exercised during the periods follows: Three Months Ended March 31, 2017 2016 (In thousands) Intrinsic value $ 279 $ 117 Cash proceeds received $ 66 $ 32 Tax benefit realized $ 98 $ 41 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017 Total capital to risk-weighted assets Consolidated $ 291,505 15.71 % $ 148,484 8.00 % NA NA Independent Bank 273,822 14.77 148,308 8.00 $ 185,384 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 270,707 14.59 % $ 111,363 6.00 % NA NA Independent Bank 253,024 13.65 111,231 6.00 $ 148,308 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 239,913 12.93 % $ 83,522 4.50 % NA NA Independent Bank 253,024 13.65 83,423 4.50 $ 120,500 6.50 % Tier 1 capital to average assets Consolidated $ 270,707 10.65 % $ 101,693 4.00 % NA NA Independent Bank 253,024 9.96 101,609 4.00 $ 127,011 5.00 % December 31, 2016 Total capital to risk-weighted assets Consolidated $ 286,289 15.86 % $ 144,413 8.00 % NA NA Independent Bank 270,855 15.02 144,223 8.00 $ 180,279 10.00 % Tier 1 capital to risk-weighted assets Consolidated $ 265,405 14.70 % $ 108,309 6.00 % NA NA Independent Bank 249,971 13.87 108,167 6.00 $ 144,223 8.00 % Common equity tier 1 capital to risk-weighted assets Consolidated $ 238,996 13.24 % $ 81,232 4.50 % NA NA Independent Bank 249,971 13.87 81,126 4.50 $ 117,181 6.50 % Tier 1 capital to average assets Consolidated $ 265,405 10.50 % $ 101,112 4.00 % NA NA Independent Bank 249,971 9.90 101,019 4.00 $ 126,274 5.00 % |
Components of regulatory capital | The components of our regulatory capital are as follows: Consolidated Independent Bank March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 (In thousands) Total shareholders' equity $ 255,475 $ 248,980 $ 262,716 $ 258,814 Add (deduct) Accumulated other comprehensive loss for regulatory purposes 738 3,310 738 3,310 Intangible assets (1,476 ) (1,159 ) (1,476 ) (1,159 ) Disallowed deferred tax assets (14,824 ) (12,135 ) (8,954 ) (10,994 ) Common equity tier 1 capital 239,913 238,996 253,024 249,971 Qualifying trust preferred securities 34,500 34,500 - - Disallowed deferred tax assets (3,706 ) (8,091 ) - - Tier 1 capital 270,707 265,405 253,024 249,971 Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets 20,798 20,884 20,798 20,884 Total risk-based capital $ 291,505 $ 286,289 $ 273,822 $ 270,855 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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) March 31, 2017: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 331 $ 331 $ - $ - Securities available for sale U.S. agency 28,784 - 28,784 - U.S. agency residential mortgage-backed 147,874 - 147,874 - U.S. agency commercial mortgage-backed 12,195 - 12,195 - Private label mortgage-backed 28,840 - 28,840 - Other asset backed 145,795 - 145,795 - Obligations of states and political subdivisions 180,250 - 180,250 - Corporate 60,967 - 60,967 - Trust preferred 2,653 - 2,653 - Foreign government 1,606 - 1,606 - Loans held for sale 37,613 - 37,613 - Capitalized mortgage loan servicing rights 14,727 - - 14,727 Derivatives (1) 2,145 - 2,145 - Liabilities Derivatives (2) 1,294 - 1,294 - Measured at Fair Value on a Non-recurring basis: Assets Impaired loans (3) Commercial Income producing - real estate 294 - - 294 Land, land development & construction-real estate 10 - - 10 Commercial and industrial 1,213 - - 1,213 Mortgage 1-4 family 169 - - 169 Resort lending 225 - - 225 Other real estate (4) Commercial Income producing - real estate (5) 2,863 - 2,863 - Land, land development & construction-real estate 176 - - 176 Mortgage 1-4 family 146 - - 146 Resort lending 18 - - 18 (1) Included in accrued income and other assets (2) Included in accrued expenses and other liabilities (3) Only includes impaired loans with specific loss allocations based on collateral value. (4) Only includes other real estate with subsequent write downs to fair value. (5) Level 2 valuation is based on a signed purchase agreement. 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, 2016: Measured at Fair Value on a Recurring Basis: Assets Trading securities $ 410 $ 410 $ - $ - Securities available for sale U.S. agency 28,988 - 28,988 - U.S. agency residential mortgage-backed 156,289 - 156,289 - U.S. agency commercial mortgage-backed 12,632 - 12,632 - Private label mortgage-backed 34,727 - 34,727 - Other asset backed 146,709 - 146,709 - Obligations of states and political subdivisions 170,899 - 170,899 - Corporate 56,180 - 56,180 - Trust preferred 2,579 - 2,579 - Foreign government 1,613 - 1,613 - Loans held for sale 35,946 - 35,946 - Derivatives (1) 2,251 - 2,251 - Liabilities Derivatives (2) 975 - 975 - Measured at Fair Value on a Non-recurring basis: Assets Capitalized mortgage loan servicing rights (3) 8,163 - - 8,163 Impaired loans (4) Commercial Income producing - real estate 255 - - 255 Land, land development & construction-real estate 54 - - 54 Commercial and industrial 1,342 - - 1,342 Mortgage 1-4 family 361 - - 361 Other real estate (5) Commercial Income producing - real estate (6) 2,863 - 2,863 - Land, land development & construction-real estate 176 - - 176 Mortgage 1-4 family 98 - - 98 Resort lending 133 - - 133 (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. (6) Level 2 valuation is based on a signed purchase agreement. |
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 Three-Month Periods Ended March 31 for Items Measured at Fair Value Pursuant to Election of the Fair Value Option 2017 2016 Net Gains (Losses) on Assets Mortgage Loan Servicing, net Total Change in Fair Values Included in Current Period Earnings Net Gains (Losses) on Assets Total Change in Fair Values Included in Current Period Securities Loans Securities Loans Earnings (In thousands) Trading securities $ (79 ) $ - $ - $ (79 ) $ (12 ) $ - $ (12 ) Loans held for sale - 581 - 581 - 127 127 Capitalized mortgage loan servicing rights - - (264 ) (264 ) - - - |
Reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | A reconciliation for all assets and (liabilities) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31 follows: Capitalized Mortgage Loan Servicing Rights Three Months Ended March 31, 2017 2016 Beginning balance $ - $ - Change in accounting 14,213 - Beginning balance, as adjusted 14,213 - Total losses realized and unrealized: Included in results of operations (264 ) - Included in other comprehensive income - - Purchases, issuances, settlements, maturities and calls 778 - Transfers in and/or out of Level 3 - - Ending balance $ 14,727 $ - Amount of total losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at March 31 $ (264 ) $ - |
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis | Asset Fair Value Valuation Technique Unobservable Inputs Weighted Average (In thousands) March 31, 2017 Capitalized mortgage loan servicing rights $ 14,727 Present value of net Discount rate 10.08 % servicing revenue Cost to service $ 81 Ancillary income 24 Float rate 2.05 % Quantitative information about Level 3 fair value measurements measured on a non-recurring basis follows: Asset Fair Value Valuation Technique Unobservable Inputs Weighted Average March 31, 2017 (In thousands) Impaired loans Commercial $ 1,517 Sales comparison approach Adjustment for differences between comparable sales (2.1 )% Mortgage 394 Sales comparison approach Adjustment for differences between comparable sales (2.8 ) Other real estate Commercial 176 Sales comparison approach Adjustment for differences between comparable sales (22.5 ) Mortgage 164 Sales comparison approach Adjustment for differences between comparable sales (13.1 ) December 31, 2016 Capitalized mortgage loan servicing rights $ 8,163 Present value of net servicing revenue Discount rate 10.07 % Cost to service $ 83 Ancillary income 24 Float rate 1.97 % Impaired loans Commercial (1) 1,446 Sales comparison approach Adjustment for differences between comparable sales (1.5 )% Mortgage 361 Sales comparison approach Adjustment for differences between comparable sales (4.7 ) Other real estate Commercial 176 Sales comparison approach Adjustment for differences between comparable sales (22.5 ) Mortgage 231 Sales comparison approach Adjustment for differences between comparable sales (5.1 ) (1) In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016, we had an impaired collateral dependent commercial relationship that totaled $0.2 million that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory. Valuation techniques included appraisals and 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. |
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 March 31, 2017 $ 37,613 $ 1,018 $ 36,595 December 31, 2016 35,946 437 35,509 |
Fair Values of Financial Inst33
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Values of Financial Instruments [Abstract] | |
Estimated recorded book balances and fair values | The estimated recorded book balances and fair values follow: Recorded Book Balance Fair Value Fair Value Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Un- observable Inputs (Level 3) (In thousands) March 31, 2017 Assets Cash and due from banks $ 29,866 $ 29,866 $ 29,866 $ - $ - Interest bearing deposits 39,957 39,957 39,957 - - Interest bearing deposits - time 5,340 5,357 - 5,357 - Trading securities 331 331 331 - - Securities available for sale 608,964 608,964 - 608,964 - Federal Home Loan Bank and Federal Reserve Bank Stock 15,543 NA NA NA NA Net loans and loans held for sale (1) 1,721,180 1,689,457 - 70,471 1,618,986 Accrued interest receivable 7,697 7,697 1 2,795 4,901 Derivative financial instruments 2,145 2,145 - 2,145 - Liabilities Deposits with no stated maturity (2) $ 1,786,095 $ 1,786,095 $ 1,786,095 $ - $ - Deposits with stated maturity (2) 476,964 474,892 - 474,892 - Other borrowings 9,433 10,253 - 10,253 - Subordinated debentures 35,569 26,018 - 26,018 - Accrued interest payable 1,223 1,223 20 1,203 - Derivative financial instruments 1,294 1,294 - 1,294 - December 31, 2016 Assets Cash and due from banks $ 35,238 $ 35,238 $ 35,238 $ - $ - Interest bearing deposits 47,956 47,956 47,956 - - Interest bearing deposits - time 5,591 5,611 - 5,611 - Trading securities 410 410 410 - - Securities available for sale 610,616 610,616 - 610,616 - Federal Home Loan Bank and Federal Reserve Bank Stock 15,543 NA NA NA NA Net loans and loans held for sale (1) 1,655,335 1,629,587 - 67,321 1,562,266 Accrued interest receivable 7,316 7,316 5 2,364 4,947 Derivative financial instruments 2,251 2,251 - 2,251 - Liabilities Deposits with no stated maturity (2) $ 1,740,601 $ 1,740,601 $ 1,740,601 $ - $ - Deposits with stated maturity (2) 485,118 483,469 - 483,469 - Other borrowings 9,433 10,371 - 10,371 - Subordinated debentures 35,569 25,017 - 25,017 - Accrued interest payable 932 932 21 911 - Derivative financial instruments 975 975 - 975 - (1) Net loans and loans held for sale include $32.9 million and $31.4 million of payment plan receivables and commercial loans held for sale at March 31, 2017 and December 31, 2016, respectively. (2) Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $12.9 million and $7.4 million at March 31, 2017 and December 31, 2016, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $28.5 million and $31.3 million March 31, 2017 and December 31, 2016, respectively. |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss ("AOCL") [Abstract] | |
Schedule of accumulated other comprehensive loss (AOCL), net of tax | A summary of changes in AOCL follows: Unrealized Gains (Losses) on Securities Available for Sale Dispropor- tionate Tax Effects from Securities Available for Sale Total (In thousands) For the three months ended March 31, 2017 Balances at beginning of period $ (3,310 ) $ (5,798 ) $ (9,108 ) Cumulative effect of change in accounting 300 - 300 Balances at beginning of period, as adjusted (3,010 ) (5,798 ) (8,808 ) Other comprehensive income before reclassifications 2,341 - 2,341 Amounts reclassified from AOCL (69 ) - (69 ) Net current period other comprehensive income 2,272 - 2,272 Balances at end of period $ (738 ) $ (5,798 ) $ (6,536 ) 2016 Balances at beginning of period $ (238 ) $ (5,798 ) $ (6,036 ) Other comprehensive income before reclassifications 1,349 - 1,349 Amounts reclassified from AOCL (112 ) - (112 ) Net current period other comprehensive income 1,237 - 1,237 Balances at end of period $ 999 $ (5,798 ) $ (4,799 ) |
Summary of reclassifications out of each component of AOCL | A summary of reclassifications out of each component of AOCL for the three months ended March 31 follows: AOCL Component Amount Affected Line Item in Condensed (In thousands) 2017 Unrealized gains on securities available for sale $ 106 Net gains on securities - Net impairment loss recognized in earnings 106 Total reclassifications before tax 37 Income tax expense $ 69 Reclassifications, net of tax 2016 Unrealized gains on securities available for sale $ 174 Net gains on securities - Net impairment loss recognized in earnings 174 Total reclassifications before tax 62 Income tax expense $ 112 Reclassifications, net of tax |
New Accounting Standards (Detai
New Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | ||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Deferred tax assets, net | $ 28,954 | $ 32,818 | |||
Capitalized mortgage loan servicing rights | 14,727 | ||||
Total assets | 2,596,482 | 2,548,950 | |||
Accumulated deficit | (61,764) | (65,657) | |||
Accumulated other comprehensive loss | (6,536) | (9,108) | |||
Total Shareholders' Equity | 255,475 | 248,980 | $ 239,545 | $ 251,092 | |
Total Liabilities and Shareholders' Equity | 2,596,482 | 2,548,950 | |||
Originally Presented [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Deferred tax assets, net | 32,818 | ||||
Capitalized mortgage loan servicing rights | 13,671 | ||||
Total assets | 2,548,950 | ||||
Accumulated deficit | (65,657) | ||||
Accumulated other comprehensive loss | (9,108) | ||||
Total Shareholders' Equity | 248,980 | ||||
Total Liabilities and Shareholders' Equity | 2,548,950 | ||||
Cumulative Retrospective Adjustments [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Total Shareholders' Equity | 352 | ||||
Total Liabilities and Shareholders' Equity | 352 | ||||
Change in Accounting Method and ASU 2017-08 [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Total Shareholders' Equity | 249,332 | ||||
Total Liabilities and Shareholders' Equity | 2,549,302 | ||||
Change in Accounting Method [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Deferred tax assets, net | [1] | 32,628 | |||
Capitalized mortgage loan servicing rights | 14,213 | ||||
Total assets | 2,549,302 | ||||
Change in Accounting Method [Member] | Cumulative Retrospective Adjustments [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Deferred tax assets, net | [1] | (190) | |||
Capitalized mortgage loan servicing rights | [1] | 542 | |||
Total assets | 352 | ||||
Accumulated deficit | [1] | 352 | |||
New Accounting Pronouncement, Effect of Early Adoption [Member] | Additional Premium Amoritization on AFS Securities, Pre-tax [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Cumulative effect of adjustments | 460 | ||||
New Accounting Pronouncement, Effect of Early Adoption [Member] | Additional Premium Amoritization on AFS Securities, Net of Tax [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Cumulative effect of adjustments | 300 | ||||
New Accounting Pronouncement, Effect of Early Adoption [Member] | AOCI Decrease, Unrealized Losses AFS Securites, After Tax [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Cumulative effect of adjustments | 300 | ||||
ASU 2017-08 [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Accumulated deficit | [1],[2] | (65,606) | |||
Accumulated other comprehensive loss | [2] | (8,808) | |||
Increase in premium amortization on securities available for sale | $ 30 | ||||
ASU 2017-08 [Member] | Cumulative Retrospective Adjustments [Member] | |||||
Cumulative Effect Adjustments to Condensed Consolidated Statement of Financial Position [Abstract] | |||||
Accumulated deficit | [1],[2] | (300) | |||
Accumulated other comprehensive loss | [2] | $ 300 | |||
[1] | Represents adjustment to capitalized mortgage loan servicing rights, deferred tax assets, net, and accumulated deficit to reflect the adoption of the fair value method of accounting for our capitalized mortgage loan servicing rights. | ||||
[2] | Represents adjustment to accumulated deficit and accumulated other comprehensive loss to reflect the adoption of ASU 2017-08. |
Securities (Details)
Securities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Security | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 610,100 | $ 615,709 | |
Unrealized Gains | 3,088 | 2,548 | |
Unrealized Losses | 4,224 | 7,641 | |
Fair Value | 608,964 | 610,616 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 233,173 | 286,522 | |
Less Than Twelve Months, Unrealized Losses | 3,178 | 5,739 | |
Twelve Months or More, Fair Value | 56,497 | 68,405 | |
Twelve Months or More, Unrealized Losses | 1,046 | 1,902 | |
Total, Fair Value | 289,670 | 354,927 | |
Total, Unrealized Losses | 4,224 | 7,641 | |
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||
Fair value | 2,212 | ||
Amortized cost | 2,050 | ||
Non-credit unrealized loss | 0 | ||
Unrealized gain | 162 | ||
Cumulative credit related OTTI | 1,594 | ||
OTTI changes recorded in earnings | 0 | $ 0 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance at beginning of period | 1,844 | 1,844 | 1,844 |
Additions to credit losses on securities for which no previous OTTI was recognized | 0 | 0 | |
Increases to credit losses on securities for which OTTI was previously recognized | 0 | 0 | |
Balance at end of period | 1,844 | 1,844 | 1,844 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
Maturing within one year | 20,583 | ||
Maturing after one year but within five years | 107,748 | ||
Maturing after five years but within ten years | 85,047 | ||
Maturing after ten years | 62,315 | ||
Available-for-sale securities, debt maturities, amortized cost basis | 275,693 | ||
U.S. agency residential mortgage-backed | 147,432 | ||
U.S. agency commercial mortgage-backed | 12,298 | ||
Private label residential mortgage-backed | 29,018 | ||
Other asset backed | 145,659 | ||
Total | 610,100 | ||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
Maturing within one year | 20,596 | ||
Maturing after one year but within five years | 107,791 | ||
Maturing after five years but within ten years | 84,667 | ||
Maturing after ten years | 61,206 | ||
Total available-for-sale securities fair value | 274,260 | ||
U.S. agency residential mortgage-backed | 147,874 | ||
U.S. agency commercial mortgage-backed | 12,195 | ||
Private label residential mortgage-backed | 28,840 | ||
Other asset backed | 145,795 | ||
Total | 608,964 | ||
Gain and losses realized on sale of securities available for sale [Abstract] | |||
Proceeds | 6,152 | 42,391 | |
Realized gains | 106 | 226 | |
Realized losses | 0 | 52 | |
Trading securities, realized losses | (79) | (12) | |
Credit related OTTI recognized in earnings | 0 | 0 | |
Cumulative Retrospective Adjustments [Member] | ASU 2017-08 [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Adjustment in Amortization on Available for Sale Securities | 460 | ||
U.S. Agency [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | 28,636 | 28,909 | |
Unrealized Gains | 211 | 159 | |
Unrealized Losses | 63 | 80 | |
Fair Value | 28,784 | 28,988 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 3,721 | 4,179 | |
Less Than Twelve Months, Unrealized Losses | 24 | 41 | |
Twelve Months or More, Fair Value | 7,707 | 8,217 | |
Twelve Months or More, Unrealized Losses | 39 | 39 | |
Total, Fair Value | 11,428 | 12,396 | |
Total, Unrealized Losses | $ 63 | 80 | |
Number of securities with market fair value less than amortized cost | Security | 23 | ||
U.S. Agency Residential Mortgage-Backed [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 147,432 | 156,053 | |
Unrealized Gains | 1,165 | 1,173 | |
Unrealized Losses | 723 | 937 | |
Fair Value | 147,874 | 156,289 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 46,206 | 62,524 | |
Less Than Twelve Months, Unrealized Losses | 537 | 732 | |
Twelve Months or More, Fair Value | 20,682 | 20,857 | |
Twelve Months or More, Unrealized Losses | 186 | 205 | |
Total, Fair Value | 66,888 | 83,381 | |
Total, Unrealized Losses | $ 723 | 937 | |
Number of securities with market fair value less than amortized cost | Security | 118 | ||
U.S. Agency Commercial Mortgage-Backed [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 12,298 | 12,799 | |
Unrealized Gains | 52 | 28 | |
Unrealized Losses | 155 | 195 | |
Fair Value | 12,195 | 12,632 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 6,672 | 6,079 | |
Less Than Twelve Months, Unrealized Losses | 154 | 194 | |
Twelve Months or More, Fair Value | 140 | 143 | |
Twelve Months or More, Unrealized Losses | 1 | 1 | |
Total, Fair Value | 6,812 | 6,222 | |
Total, Unrealized Losses | $ 155 | 195 | |
Number of securities with market fair value less than amortized cost | Security | 13 | ||
Private Label Mortgage-Backed [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 29,018 | 35,035 | |
Unrealized Gains | 218 | 216 | |
Unrealized Losses | 396 | 524 | |
Fair Value | 28,840 | 34,727 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 17,038 | 20,545 | |
Less Than Twelve Months, Unrealized Losses | 173 | 281 | |
Twelve Months or More, Fair Value | 1,321 | 1,413 | |
Twelve Months or More, Unrealized Losses | 223 | 243 | |
Total, Fair Value | 18,359 | 21,958 | |
Total, Unrealized Losses | $ 396 | 524 | |
Number of securities with market fair value less than amortized cost | Security | 30 | ||
Number of securities purchased prior to 2016 | Security | 4 | ||
Number of securities with impairment in excess of ten percent | Security | 2 | ||
Percentage of excess impairment on securities | 10.00% | ||
Number of securities with impairment for more than 12 months | Security | 4 | ||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||
Number of private label mortgage backed securities complete recovery of cost basis | Security | 4 | ||
Number of private label mortgage backed securities currently with OTTI unrealized gains | Security | 3 | ||
Senior Security [Member] | |||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||
Fair value | $ 1,127 | ||
Amortized cost | 1,092 | ||
Non-credit unrealized loss | 0 | ||
Unrealized gain | 35 | ||
Cumulative credit related OTTI | 757 | ||
OTTI changes recorded in earnings | 0 | 0 | |
Super Senior Security [Member] | |||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||
Fair value | 1,013 | ||
Amortized cost | 958 | ||
Non-credit unrealized loss | 0 | ||
Unrealized gain | 55 | ||
Cumulative credit related OTTI | 457 | ||
OTTI changes recorded in earnings | 0 | 0 | |
Senior Support Security [Member] | |||
Private Label Mortgage Backed Securities Below Investment Grade [Abstract] | |||
Fair value | 72 | ||
Amortized cost | 0 | ||
Non-credit unrealized loss | 0 | ||
Unrealized gain | 72 | ||
Cumulative credit related OTTI | 380 | ||
OTTI changes recorded in earnings | 0 | $ 0 | |
Other Asset Backed [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | 145,659 | 146,829 | |
Unrealized Gains | 346 | 271 | |
Unrealized Losses | 210 | 391 | |
Fair Value | 145,795 | 146,709 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 39,168 | 52,958 | |
Less Than Twelve Months, Unrealized Losses | 95 | 172 | |
Twelve Months or More, Fair Value | 11,949 | 17,763 | |
Twelve Months or More, Unrealized Losses | 115 | 219 | |
Total, Fair Value | 51,117 | 70,721 | |
Total, Unrealized Losses | $ 210 | 391 | |
Number of securities with market fair value less than amortized cost | Security | 97 | ||
Obligations of States and Political Subdivisions [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 181,727 | 175,180 | |
Unrealized Gains | 716 | 478 | |
Unrealized Losses | 2,193 | 4,759 | |
Fair Value | 180,250 | 170,899 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 103,301 | 113,078 | |
Less Than Twelve Months, Unrealized Losses | 2,030 | 4,014 | |
Twelve Months or More, Fair Value | 10,090 | 14,623 | |
Twelve Months or More, Unrealized Losses | 163 | 745 | |
Total, Fair Value | 113,391 | 127,701 | |
Total, Unrealized Losses | $ 2,193 | 4,759 | |
Number of securities with market fair value less than amortized cost | Security | 308 | ||
Number of securities with impairment in excess of ten percent | Security | 28 | ||
Percentage of excess impairment on securities | 10.00% | ||
Corporate [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 60,790 | 56,356 | |
Unrealized Gains | 380 | 223 | |
Unrealized Losses | 203 | 399 | |
Fair Value | 60,967 | 56,180 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 15,461 | 25,546 | |
Less Than Twelve Months, Unrealized Losses | 155 | 292 | |
Twelve Months or More, Fair Value | 1,955 | 2,810 | |
Twelve Months or More, Unrealized Losses | 48 | 107 | |
Total, Fair Value | 17,416 | 28,356 | |
Total, Unrealized Losses | $ 203 | 399 | |
Number of securities with market fair value less than amortized cost | Security | 19 | ||
Trust Preferred [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | $ 2,924 | 2,922 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 271 | 343 | |
Fair Value | 2,653 | 2,579 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 0 | 0 | |
Less Than Twelve Months, Unrealized Losses | 0 | 0 | |
Twelve Months or More, Fair Value | 2,653 | 2,579 | |
Twelve Months or More, Unrealized Losses | 271 | 343 | |
Total, Fair Value | 2,653 | 2,579 | |
Total, Unrealized Losses | $ 271 | 343 | |
Number of securities with market fair value less than amortized cost | Security | 3 | ||
Number of issues rated as investment grade | Security | 1 | ||
Number of securities rated as below investment grade | Security | 1 | ||
Number of major credit rating agencies rating securities with fair value less than amortized cost | Security | 2 | ||
Number of securities non-rated | Security | 1 | ||
Non-rated trust preferred securities, amortized cost | $ 1,000 | ||
Non-rated trust preferred securities, fair value | 800 | ||
Rated Issues [Member] | |||
Trust preferred securities [Abstract] | |||
Fair Value | 1,812 | 1,800 | |
Net Unrealized Loss | (112) | (123) | |
Unrated Issues [Member] | |||
Trust preferred securities [Abstract] | |||
Fair Value | 841 | 779 | |
Net Unrealized Loss | (159) | (220) | |
Foreign Government [Member] | |||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | |||
Amortized Cost | 1,616 | 1,626 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 10 | 13 | |
Fair Value | 1,606 | 1,613 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Less Than Twelve Months, Fair Value | 1,606 | 1,613 | |
Less Than Twelve Months, Unrealized Losses | 10 | 13 | |
Twelve Months or More, Fair Value | 0 | 0 | |
Twelve Months or More, Unrealized Losses | 0 | 0 | |
Total, Fair Value | 1,606 | 1,613 | |
Total, Unrealized Losses | $ 10 | $ 13 | |
Number of securities with market fair value less than amortized cost | Security | 1 |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | $ 20,234 | $ 22,570 | ||
Additions (deductions) [Abstract] | ||||
Provision for loan losses | (359) | (530) | ||
Recoveries credited to allowance | 1,129 | 959 | ||
Loans charged against the allowance | (966) | (504) | ||
Balance at end of period | 20,038 | 22,495 | ||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 7,634 | $ 9,152 | ||
Collectively evaluated for impairment | 12,404 | 11,082 | ||
Total ending allowance balance | 20,038 | 20,234 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 73,464 | 79,831 | ||
Collectively evaluated for impairment | 1,602,390 | 1,533,530 | ||
Total loans recorded investment | 1,675,854 | 1,613,361 | ||
Accrued interest included in recorded investment | 5,107 | 5,113 | ||
Total loans | 1,670,747 | 1,608,248 | ||
Commercial [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 4,880 | 5,670 | ||
Additions (deductions) [Abstract] | ||||
Provision for loan losses | (61) | (404) | ||
Recoveries credited to allowance | 404 | 356 | ||
Loans charged against the allowance | (135) | 0 | ||
Balance at end of period | 5,088 | 5,622 | ||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 1,162 | 2,244 | ||
Collectively evaluated for impairment | 3,926 | 2,636 | ||
Total ending allowance balance | 5,088 | 4,880 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 11,573 | 15,767 | ||
Collectively evaluated for impairment | 805,883 | 790,228 | ||
Total loans recorded investment | 817,456 | 805,995 | ||
Accrued interest included in recorded investment | 1,972 | 1,978 | ||
Total loans | 815,484 | 804,017 | ||
Mortgage [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 8,681 | 10,391 | ||
Additions (deductions) [Abstract] | ||||
Provision for loan losses | (699) | (279) | ||
Recoveries credited to allowance | 486 | 382 | ||
Loans charged against the allowance | (359) | (198) | ||
Balance at end of period | 8,109 | 10,296 | ||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 6,147 | 6,579 | ||
Collectively evaluated for impairment | 1,962 | 2,102 | ||
Total ending allowance balance | 8,109 | 8,681 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 57,216 | 59,151 | ||
Collectively evaluated for impairment | 526,178 | 481,828 | ||
Total loans recorded investment | 583,394 | 540,979 | ||
Accrued interest included in recorded investment | [1] | 2,364 | 2,364 | |
Total loans | 581,030 | 538,615 | ||
Installment [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 1,011 | 1,181 | ||
Additions (deductions) [Abstract] | ||||
Provision for loan losses | 133 | 65 | ||
Recoveries credited to allowance | 239 | 221 | ||
Loans charged against the allowance | (472) | (306) | ||
Balance at end of period | 911 | 1,161 | ||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 325 | 329 | ||
Collectively evaluated for impairment | 586 | 682 | ||
Total ending allowance balance | 911 | 1,011 | ||
Loans [Abstract] | ||||
Individually evaluated for impairment | 4,675 | 4,913 | ||
Collectively evaluated for impairment | 270,329 | 261,474 | ||
Total loans recorded investment | 275,004 | 266,387 | ||
Accrued interest included in recorded investment | [1] | 771 | 771 | |
Total loans | 274,233 | 265,616 | ||
Payment Plan Receivables [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | [2] | 0 | 56 | |
Additions (deductions) [Abstract] | ||||
Provision for loan losses | [2] | 0 | (3) | |
Recoveries credited to allowance | [2] | 0 | 0 | |
Loans charged against the allowance | [2] | 0 | 0 | |
Balance at end of period | [2] | 0 | 53 | |
Subjective Allocation [Member] | ||||
Analysis of allowance for loan losses by portfolio segment [Roll Forward] | ||||
Balance at beginning of period | 5,662 | 5,272 | ||
Additions (deductions) [Abstract] | ||||
Provision for loan losses | 268 | 91 | ||
Recoveries credited to allowance | 0 | 0 | ||
Loans charged against the allowance | 0 | 0 | ||
Balance at end of period | 5,930 | $ 5,363 | ||
Allowance for loan losses [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 5,930 | 5,662 | ||
Total ending allowance balance | $ 5,930 | $ 5,662 | ||
[1] | Credit scores have been updated within the last twelve months. | |||
[2] | Payment plan receivables were reclassified to held for sale at December 31, 2016. See note #15. |
Loans, Receivables Past Due (De
Loans, Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Non performing loans [Abstract] | |||
90+ and Still Accruing | $ 0 | $ 0 | |
Non-Accrual | 9,016 | 13,364 | |
Total Non-performing Loans | 9,016 | 13,364 | |
Accrued interest included in recorded investment | 2 | 0 | |
Aging analysis of loans by class [Abstract] | |||
Total | 12,757 | 15,597 | |
Loans not Past Due | 1,663,097 | 1,597,764 | |
Total loans recorded investment | 1,675,854 | 1,613,361 | |
Accrued interest included in recorded investment | 5,107 | 5,113 | |
Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 3,651 | 4,257 | |
Accrued interest included in recorded investment | 46 | 45 | |
Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 928 | 2,659 | |
Accrued interest included in recorded investment | 10 | 19 | |
Loans Past Due, 90+ days [Member] | |||
Non performing loans [Abstract] | |||
Accrued interest included in recorded investment | 0 | 0 | |
Aging analysis of loans by class [Abstract] | |||
Total | 8,178 | 8,681 | |
Accrued interest included in recorded investment | 2 | 0 | |
Loans Past Due Total [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Accrued interest included in recorded investment | 58 | 64 | |
Loans Not Past Due [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Accrued interest included in recorded investment | 5,049 | 5,049 | |
Commercial [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 817,456 | 805,995 | |
Accrued interest included in recorded investment | 1,972 | 1,978 | |
Commercial [Member] | Income Producing - Real Estate [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 579 | 628 | |
Total Non-performing Loans | 579 | 628 | |
Aging analysis of loans by class [Abstract] | |||
Total | 448 | 383 | |
Loans not Past Due | 281,597 | 287,255 | |
Total loans recorded investment | 282,045 | 287,638 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 0 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 30 | 0 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 418 | 383 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 4 | 105 | |
Total Non-performing Loans | 4 | 105 | |
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 105 | |
Loans not Past Due | 53,649 | 51,670 | |
Total loans recorded investment | 53,649 | 51,775 | |
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 | 74 | |
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 | 0 | 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 | 0 | 31 | |
Commercial [Member] | Commercial and Industrial [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 742 | 4,430 | |
Total Non-performing Loans | 742 | 4,430 | |
Aging analysis of loans by class [Abstract] | |||
Total | 549 | 1,551 | |
Loans not Past Due | 481,213 | 465,031 | |
Total loans recorded investment | 481,762 | 466,582 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 366 | 100 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 114 | 1,385 | |
Commercial [Member] | Commercial and Industrial [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 69 | 66 | |
Mortgage [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 583,394 | 540,979 | |
Accrued interest included in recorded investment | [1] | 2,364 | 2,364 |
Mortgage [Member] | 1-4 Family [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 4,950 | 5,248 | |
Total Non-performing Loans | 4,950 | 5,248 | |
Aging analysis of loans by class [Abstract] | |||
Total | 7,705 | 8,478 | |
Loans not Past Due | 357,881 | 306,063 | |
Total loans recorded investment | 365,586 | 314,541 | |
Accrued interest included in recorded investment | [1] | 1,535 | 1,466 |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 2,169 | 2,361 | |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 586 | 869 | |
Mortgage [Member] | 1-4 Family [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 4,950 | 5,248 | |
Mortgage [Member] | Resort Lending [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 1,414 | 1,507 | |
Total Non-performing Loans | 1,414 | 1,507 | |
Aging analysis of loans by class [Abstract] | |||
Total | 1,572 | 1,507 | |
Loans not Past Due | 98,371 | 101,541 | |
Total loans recorded investment | 99,943 | 103,048 | |
Accrued interest included in recorded investment | [1] | 381 | 450 |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 137 | 0 | |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 21 | 0 | |
Mortgage [Member] | Resort Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 1,414 | 1,507 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 208 | 222 | |
Total Non-performing Loans | 208 | 222 | |
Aging analysis of loans by class [Abstract] | |||
Total | 341 | 371 | |
Loans not Past Due | 30,596 | 28,645 | |
Total loans recorded investment | 30,937 | 29,016 | |
Accrued interest included in recorded investment | [1] | 123 | 111 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 133 | 149 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 0 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 208 | 222 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 290 | 317 | |
Total Non-performing Loans | 290 | 317 | |
Aging analysis of loans by class [Abstract] | |||
Total | 707 | 1,005 | |
Loans not Past Due | 48,280 | 54,232 | |
Total loans recorded investment | 48,987 | 55,237 | |
Accrued interest included in recorded investment | [1] | 213 | 226 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 385 | 470 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 32 | 218 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 290 | 317 | |
Mortgage [Member] | Purchased Loans [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 | 4 | 15 | |
Loans not Past Due | 37,937 | 39,122 | |
Total loans recorded investment | 37,941 | 39,137 | |
Accrued interest included in recorded investment | [1] | 112 | 111 |
Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 3 | 13 | |
Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 1 | 2 | |
Mortgage [Member] | Purchased Loans [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 0 | 0 | |
Installment [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total loans recorded investment | 275,004 | 266,387 | |
Accrued interest included in recorded investment | [1] | 771 | 771 |
Installment [Member] | Home Equity - 1st Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 184 | 266 | |
Total Non-performing Loans | 184 | 266 | |
Aging analysis of loans by class [Abstract] | |||
Total | 299 | 625 | |
Loans not Past Due | 11,569 | 12,025 | |
Total loans recorded investment | 11,868 | 12,650 | |
Accrued interest included in recorded investment | [1] | 51 | 54 |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 91 | 311 | |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 24 | 48 | |
Installment [Member] | Home Equity - 1st Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 184 | 266 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 350 | 289 | |
Total Non-performing Loans | 350 | 289 | |
Aging analysis of loans by class [Abstract] | |||
Total | 528 | 568 | |
Loans not Past Due | 12,115 | 13,390 | |
Total loans recorded investment | 12,643 | 13,958 | |
Accrued interest included in recorded investment | [1] | 52 | 59 |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 100 | 238 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 78 | 41 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 350 | 289 | |
Installment [Member] | Boat Lending [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 129 | 219 | |
Total Non-performing Loans | 129 | 219 | |
Aging analysis of loans by class [Abstract] | |||
Total | 217 | 436 | |
Loans not Past Due | 107,826 | 102,489 | |
Total loans recorded investment | 108,043 | 102,925 | |
Accrued interest included in recorded investment | [1] | 267 | 264 |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 85 | 184 | |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 3 | 33 | |
Installment [Member] | Boat Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 129 | 219 | |
Installment [Member] | Recreational Vehicle Lending [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 26 | 21 | |
Total Non-performing Loans | 26 | 21 | |
Aging analysis of loans by class [Abstract] | |||
Total | 70 | 122 | |
Loans not Past Due | 78,698 | 74,413 | |
Total loans recorded investment | 78,768 | 74,535 | |
Accrued interest included in recorded investment | [1] | 205 | 203 |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 42 | 68 | |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 2 | 33 | |
Installment [Member] | Recreational Vehicle Lending [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 26 | 21 | |
Installment [Member] | Other [Member] | |||
Non performing loans [Abstract] | |||
90+ and Still Accruing | 0 | 0 | |
Non-Accrual | 140 | 112 | |
Total Non-performing Loans | 140 | 112 | |
Aging analysis of loans by class [Abstract] | |||
Total | 317 | 431 | |
Loans not Past Due | 63,365 | 61,888 | |
Total loans recorded investment | 63,682 | 62,319 | |
Accrued interest included in recorded investment | [1] | 196 | 191 |
Installment [Member] | Other [Member] | Loans Past Due, 30-59 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 140 | 289 | |
Installment [Member] | Other [Member] | Loans Past Due, 60-89 days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | 37 | 30 | |
Installment [Member] | Other [Member] | Loans Past Due, 90+ days [Member] | |||
Aging analysis of loans by class [Abstract] | |||
Total | $ 140 | $ 112 | |
[1] | Credit scores have been updated within the last twelve months. |
Loans, Impaired Financing Recei
Loans, Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |||
Impaired loan with no allocated allowance [Abstract] | |||||
TDR | $ 370 | $ 1,782 | |||
Non - TDR | 0 | 1,107 | |||
Impaired loans with an allocated allowance [Abstract] | |||||
TDR allowances based on collateral | 2,358 | 3,527 | |||
TDR - allowances based on present value cash flow | 70,160 | 72,613 | |||
Non - TDR - allowance based on collateral | 286 | 491 | |||
Total impaired loans | 73,174 | 79,520 | |||
Amount of allowance for loan losses allocated [Abstract] | |||||
TDR - allowance based on collateral | 680 | 1,868 | |||
TDR - allowance based on present value cash flow | 6,901 | 7,146 | |||
Non - TDR - allowance based on collateral | 53 | 138 | |||
Allowance for loan losses allocated | 7,634 | 9,152 | |||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 371 | 2,891 | ||
Unpaid Principal Balance, with no related allowance | [1] | 1,038 | 5,191 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 73,093 | 76,940 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 77,098 | 79,520 | ||
Recorded Investment | [1] | 73,464 | 79,831 | ||
Unpaid Principal Balance | [1] | 78,136 | 84,711 | ||
Related Allowance | [1] | 7,634 | 9,152 | ||
Accrued interest included in recorded investment | [1] | 290 | 311 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 1,633 | $ 2,643 | ||
Interest Income Recognized, with No Related Allowance | [2] | 5 | 32 | ||
Average Recorded Investment, with Related Allowance | [2] | 75,020 | 86,004 | ||
Interest Income Recognized, with Related Allowance | [2] | 848 | 903 | ||
Average Recorded Investment | [2] | 76,653 | 88,647 | ||
Interest Income Recognized | [2] | 853 | 935 | ||
Commercial [Member] | Income Producing - Real Estate [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 370 | 517 | ||
Unpaid Principal Balance, with no related allowance | [1] | 581 | 768 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 7,741 | 7,737 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 7,925 | 7,880 | ||
Recorded Investment | [1] | 8,111 | 8,254 | ||
Unpaid Principal Balance | [1] | 8,506 | 8,648 | ||
Related Allowance | [1] | 603 | 554 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 444 | 713 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 2 | ||
Average Recorded Investment, with Related Allowance | [2] | 7,739 | 8,306 | ||
Interest Income Recognized, with Related Allowance | [2] | 105 | 107 | ||
Average Recorded Investment | [2] | 8,183 | 9,019 | ||
Interest Income Recognized | [2] | 105 | 109 | ||
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 31 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 709 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 167 | 239 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 872 | 244 | ||
Recorded Investment | [1] | 167 | 270 | ||
Unpaid Principal Balance | [1] | 872 | 953 | ||
Related Allowance | [1] | 8 | 36 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 16 | 678 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 7 | ||
Average Recorded Investment, with Related Allowance | [2] | 203 | 1,587 | ||
Interest Income Recognized, with Related Allowance | [2] | 2 | 13 | ||
Average Recorded Investment | [2] | 219 | 2,265 | ||
Interest Income Recognized | [2] | 2 | 20 | ||
Commercial [Member] | Commercial and Industrial [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 2,341 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 3,261 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 3,295 | 4,902 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 4,341 | 5,246 | ||
Recorded Investment | [1] | 3,295 | 7,243 | ||
Unpaid Principal Balance | [1] | 4,341 | 8,507 | ||
Related Allowance | [1] | 551 | 1,654 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 1,171 | 1,232 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 21 | ||
Average Recorded Investment, with Related Allowance | [2] | 4,099 | 4,712 | ||
Interest Income Recognized, with Related Allowance | [2] | 35 | 23 | ||
Average Recorded Investment | [2] | 5,270 | 5,944 | ||
Interest Income Recognized | [2] | 35 | 44 | ||
Mortgage [Member] | 1-4 Family [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 1 | 2 | ||
Unpaid Principal Balance, with no related allowance | [1] | 384 | 387 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 40,098 | 41,701 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 41,850 | 43,479 | ||
Recorded Investment | [1] | 40,099 | 41,703 | ||
Unpaid Principal Balance | [1] | 42,234 | 43,866 | ||
Related Allowance | [1] | 3,740 | 4,100 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 2 | 12 | ||
Interest Income Recognized, with No Related Allowance | [2] | 4 | 1 | ||
Average Recorded Investment, with Related Allowance | [2] | 40,900 | 47,200 | ||
Interest Income Recognized, with Related Allowance | [2] | 464 | 502 | ||
Average Recorded Investment | [2] | 40,902 | 47,212 | ||
Interest Income Recognized | [2] | 468 | 503 | ||
Mortgage [Member] | Resort Lending [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 16,691 | 16,898 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 16,727 | 16,931 | ||
Recorded Investment | [1] | 16,691 | 16,898 | ||
Unpaid Principal Balance | [1] | 16,727 | 16,931 | ||
Related Allowance | [1] | 2,359 | 2,453 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 0 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 16,795 | 18,039 | ||
Interest Income Recognized, with Related Allowance | [2] | 161 | 160 | ||
Average Recorded Investment | [2] | 16,795 | 18,039 | ||
Interest Income Recognized | [2] | 161 | 160 | ||
Mortgage [Member] | Home Equity - 1st Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 234 | 235 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 241 | 242 | ||
Recorded Investment | [1] | 234 | 235 | ||
Unpaid Principal Balance | [1] | 241 | 242 | ||
Related Allowance | [1] | 28 | 10 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 0 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 235 | 206 | ||
Interest Income Recognized, with Related Allowance | [2] | 2 | 2 | ||
Average Recorded Investment | [2] | 235 | 206 | ||
Interest Income Recognized | [2] | 2 | 2 | ||
Mortgage [Member] | Home Equity - 2nd Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 192 | 315 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 276 | 398 | ||
Recorded Investment | [1] | 192 | 315 | ||
Unpaid Principal Balance | [1] | 276 | 398 | ||
Related Allowance | [1] | 20 | 16 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 0 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 254 | 182 | ||
Interest Income Recognized, with Related Allowance | [2] | 2 | 1 | ||
Average Recorded Investment | [2] | 254 | 182 | ||
Interest Income Recognized | [2] | 2 | 1 | ||
Installment [Member] | Home Equity - 1st Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 73 | 66 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 1,884 | 1,994 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 2,007 | 2,117 | ||
Recorded Investment | [1] | 1,884 | 1,994 | ||
Unpaid Principal Balance | [1] | 2,080 | 2,183 | ||
Related Allowance | [1] | 92 | 118 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 1 | ||
Interest Income Recognized, with No Related Allowance | [2] | 1 | 1 | ||
Average Recorded Investment, with Related Allowance | [2] | 1,939 | 2,326 | ||
Interest Income Recognized, with Related Allowance | [2] | 34 | 42 | ||
Average Recorded Investment | [2] | 1,939 | 2,327 | ||
Interest Income Recognized | [2] | 35 | 43 | ||
Installment [Member] | Home Equity - 2nd Lien [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 2,308 | 2,415 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 2,339 | 2,443 | ||
Recorded Investment | [1] | 2,308 | 2,415 | ||
Unpaid Principal Balance | [1] | 2,339 | 2,443 | ||
Related Allowance | [1] | 205 | 182 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 7 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 2,362 | 2,861 | ||
Interest Income Recognized, with Related Allowance | [2] | 35 | 44 | ||
Average Recorded Investment | [2] | 2,362 | 2,868 | ||
Interest Income Recognized | [2] | 35 | 44 | ||
Installment [Member] | Boat Lending [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 1 | 1 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 6 | 6 | ||
Recorded Investment | [1] | 1 | 1 | ||
Unpaid Principal Balance | [1] | 6 | 6 | ||
Related Allowance | [1] | 0 | 0 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 0 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 1 | 2 | ||
Interest Income Recognized, with Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment | [2] | 1 | 2 | ||
Interest Income Recognized | [2] | 0 | 0 | ||
Installment [Member] | Recreational Vehicle Lending [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | 0 | 0 | [1] | ||
Recorded Investment, with an allowance recorded | [1] | 106 | 109 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 105 | 108 | ||
Recorded Investment | [1] | 106 | 109 | ||
Unpaid Principal Balance | [1] | 105 | 108 | ||
Related Allowance | [1] | 6 | 6 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 0 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 108 | 120 | ||
Interest Income Recognized, with Related Allowance | [2] | 1 | 2 | ||
Average Recorded Investment | [2] | 108 | 120 | ||
Interest Income Recognized | [2] | 1 | 2 | ||
Installment [Member] | Other [Member] | |||||
Impaired Loans by class [Abstract] | |||||
Recorded Investment, with no related allowance | [1] | 0 | 0 | ||
Unpaid Principal Balance, with no related allowance | [1] | 0 | 0 | ||
No Related Allowance | [1] | 0 | 0 | ||
Recorded Investment, with an allowance recorded | [1] | 376 | 394 | ||
Unpaid Principal Balance, with an allowance recorded | [1] | 409 | 426 | ||
Recorded Investment | [1] | 376 | 394 | ||
Unpaid Principal Balance | [1] | 409 | 426 | ||
Related Allowance | [1] | 22 | $ 23 | ||
Average recorded investment in and interest income earned on impaired loans by class [Abstract] | |||||
Average Recorded Investment, with No Related Allowance | [2] | 0 | 0 | ||
Interest Income Recognized, with No Related Allowance | [2] | 0 | 0 | ||
Average Recorded Investment, with Related Allowance | [2] | 385 | 463 | ||
Interest Income Recognized, with Related Allowance | [2] | 7 | 7 | ||
Average Recorded Investment | [2] | 385 | 463 | ||
Interest Income Recognized | [2] | $ 7 | $ 7 | ||
[1] | There were no impaired purchased mortgage loans at March 31, 2017 or December 31, 2016. | ||||
[2] | There were no impaired purchased mortgage loans during the three month periods ended March 31, 2017 and 2016, respectively. |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017USD ($)PaymentsContract | Mar. 31, 2016USD ($)Contract | Dec. 31, 2016USD ($) | ||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | $ 72,888 | $ 77,922 | ||
Troubled debt restructuring, specific reserve | $ 7,600 | 9,000 | ||
Number of Consecutive Timely Payments Required | Payments | 6 | |||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 9 | 13 | |
Pre-modification recorded balance | [1] | $ 418 | $ 2,259 | |
Post-modification recorded balance | [1] | 422 | 2,303 | |
Increase (decrease) in allowance for loan losses | 50 | 60 | ||
Charge offs due to troubled debt restructurings | $ 0 | 0 | ||
TDR that subsequently defaulted [Abstract] | ||||
Past due period for modified loans | 90 days | |||
Charge-offs on TDRs that subsequently defaulted | $ 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 | |||
Modification of stated interest rate of loans, range of period in certain circumstances | 480 months | |||
Modifications involving extension of maturity date, period range | 60 months | |||
Modifications involving extension of maturity date, period range in certain circumstances | 230 months | |||
Performing TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | $ 67,750 | 70,286 | ||
Non-performing TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | [2] | 5,138 | 7,636 | |
Commercial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | 11,245 | 14,125 | ||
Commercial [Member] | Performing TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | 10,206 | 10,560 | ||
Commercial [Member] | Non-performing TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | [2] | $ 1,039 | 3,565 | |
Commercial [Member] | Income Producing - Real Estate [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 2 | |
Pre-modification recorded balance | [1] | $ 0 | $ 110 | |
Post-modification recorded balance | [1] | $ 0 | $ 110 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 0 | |
Pre-modification recorded balance | [1] | $ 0 | $ 0 | |
Post-modification recorded balance | [1] | $ 0 | $ 0 | |
Commercial [Member] | Commercial and Industrial [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 3 | 4 | |
Pre-modification recorded balance | [1] | $ 133 | $ 1,758 | |
Post-modification recorded balance | [1] | $ 133 | $ 1,758 | |
Mortgage [Member] | 1-4 Family [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 1 | 2 | |
Pre-modification recorded balance | [1] | $ 17 | $ 83 | |
Post-modification recorded balance | [1] | $ 17 | $ 153 | |
Mortgage [Member] | Resort Lending [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 1 | 1 | |
Pre-modification recorded balance | [1] | $ 189 | $ 116 | |
Post-modification recorded balance | [1] | $ 189 | $ 117 | |
Mortgage [Member] | Home Equity - 1st Lien [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 1 | |
Pre-modification recorded balance | [1] | $ 0 | $ 107 | |
Post-modification recorded balance | [1] | $ 0 | $ 78 | |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 0 | |
Pre-modification recorded balance | [1] | $ 0 | $ 0 | |
Post-modification recorded balance | [1] | $ 0 | $ 0 | |
Installment [Member] | Home Equity - 1st Lien [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 2 | 1 | |
Pre-modification recorded balance | [1] | $ 34 | $ 30 | |
Post-modification recorded balance | [1] | $ 37 | $ 31 | |
Installment [Member] | Home Equity - 2nd Lien [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 2 | 2 | |
Pre-modification recorded balance | [1] | $ 45 | $ 55 | |
Post-modification recorded balance | [1] | $ 46 | $ 56 | |
Installment [Member] | Boat Lending [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 0 | |
Pre-modification recorded balance | [1] | $ 0 | $ 0 | |
Post-modification recorded balance | [1] | $ 0 | $ 0 | |
Installment [Member] | Recreational Vehicle Lending [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 0 | |
Pre-modification recorded balance | [1] | $ 0 | $ 0 | |
Post-modification recorded balance | [1] | $ 0 | $ 0 | |
Installment [Member] | Other [Member] | ||||
Loans classified as troubled debt restructurings [Abstract] | ||||
Number of contracts | Contract | [1] | 0 | 0 | |
Pre-modification recorded balance | [1] | $ 0 | $ 0 | |
Post-modification recorded balance | [1] | 0 | $ 0 | |
Retail [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | [3] | 61,643 | 63,797 | |
Retail [Member] | Performing TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | [3] | 57,544 | 59,726 | |
Retail [Member] | Non-performing TDRs [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Troubled debt restructuring | [2],[3],[4] | $ 4,099 | $ 4,071 | |
[1] | There were no impaired purchased mortgage loans during the three month periods ended March 31, 2017 and 2016, respectively. | |||
[2] | Included in non-performing loans table above. | |||
[3] | Retail loans include mortgage and installment loan segments. | |||
[4] | 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 | Mar. 31, 2017 | Dec. 31, 2016 | |
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | $ 815,484 | $ 804,017 | |
Accrued interest included in total | 5,107 | 5,113 | |
Other Real Estate and Foreclosed Assets [Abstract] | |||
Foreclosed residential real estate properties | 2,200 | 1,900 | |
Retail mortgage loans in process of foreclosure | 1,100 | 1,000 | |
Commercial [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 817,456 | 805,995 | |
Accrued interest included in total | 1,972 | 1,978 | |
Commercial [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 799,604 | 783,854 | |
Accrued interest included in total | 1,912 | 1,915 | |
Commercial [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 13,260 | 13,642 | |
Accrued interest included in total | 45 | 52 | |
Commercial [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 3,267 | 3,335 | |
Accrued interest included in total | 15 | 11 | |
Commercial [Member] | Non-Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 1,325 | 5,164 | |
Accrued interest included in total | 0 | 0 | |
Commercial [Member] | Income Producing - Real Estate [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 282,045 | 287,638 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 277,648 | 282,886 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 3,407 | 3,787 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 411 | 337 | |
Commercial [Member] | Income Producing - Real Estate [Member] | Non-Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 579 | 628 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 53,649 | 51,775 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 53,578 | 51,603 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 67 | 67 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 0 | 0 | |
Commercial [Member] | Land, Land Development and Construction - Real Estate [Member] | Non-Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 4 | 105 | |
Commercial [Member] | Commercial and Industrial [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 481,762 | 466,582 | |
Commercial [Member] | Commercial and Industrial [Member] | Non-Watch 1-6 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 468,378 | 449,365 | |
Commercial [Member] | Commercial and Industrial [Member] | Watch 7-8 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 9,786 | 9,788 | |
Commercial [Member] | Commercial and Industrial [Member] | Substandard Accrual 9 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 2,856 | 2,998 | |
Commercial [Member] | Commercial and Industrial [Member] | Non-Accrual 10-11 [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
Commercial | 742 | 4,431 | |
Mortgage [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 72,258 | 69,920 |
750-799 | [1] | 213,475 | 195,484 |
700-749 | [1] | 135,884 | 121,245 |
650-699 | [1] | 83,908 | 77,129 |
600-649 | [1] | 36,334 | 35,780 |
550-599 | [1] | 18,293 | 18,931 |
500-549 | [1] | 11,657 | 12,120 |
Under 500 | [1] | 5,599 | 5,771 |
Unknown | [1] | 5,986 | 4,599 |
Total | [1] | 583,394 | 540,979 |
Accrued interest included in total | [1] | 2,364 | 2,364 |
Mortgage [Member] | 1-4 Family [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 38,929 | 36,534 |
750-799 | [1] | 124,778 | 102,382 |
700-749 | [1] | 86,342 | 69,337 |
650-699 | [1] | 58,861 | 50,621 |
600-649 | [1] | 26,474 | 25,270 |
550-599 | [1] | 13,199 | 13,747 |
500-549 | [1] | 8,815 | 9,215 |
Under 500 | [1] | 4,976 | 5,145 |
Unknown | [1] | 3,212 | 2,290 |
Total | [1] | 365,586 | 314,541 |
Accrued interest included in total | [1] | 1,535 | 1,466 |
Mortgage [Member] | Resort Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 10,347 | 10,484 |
750-799 | [1] | 40,569 | 41,999 |
700-749 | [1] | 24,152 | 24,727 |
650-699 | [1] | 13,542 | 13,798 |
600-649 | [1] | 5,143 | 5,769 |
550-599 | [1] | 3,006 | 3,030 |
500-549 | [1] | 1,397 | 1,438 |
Under 500 | [1] | 91 | 92 |
Unknown | [1] | 1,696 | 1,711 |
Total | [1] | 99,943 | 103,048 |
Accrued interest included in total | [1] | 381 | 450 |
Mortgage [Member] | Home Equity - 1st Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 6,716 | 6,048 |
750-799 | [1] | 10,926 | 10,006 |
700-749 | [1] | 6,176 | 5,706 |
650-699 | [1] | 4,012 | 4,106 |
600-649 | [1] | 1,602 | 1,674 |
550-599 | [1] | 453 | 455 |
500-549 | [1] | 482 | 486 |
Under 500 | [1] | 256 | 255 |
Unknown | [1] | 314 | 280 |
Total | [1] | 30,937 | 29,016 |
Accrued interest included in total | [1] | 123 | 111 |
Mortgage [Member] | Home Equity - 2nd Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 7,846 | 8,392 |
750-799 | [1] | 16,893 | 20,113 |
700-749 | [1] | 10,568 | 12,360 |
650-699 | [1] | 7,058 | 8,167 |
600-649 | [1] | 3,115 | 3,067 |
550-599 | [1] | 1,635 | 1,699 |
500-549 | [1] | 963 | 981 |
Under 500 | [1] | 276 | 279 |
Unknown | [1] | 633 | 179 |
Total | [1] | 48,987 | 55,237 |
Accrued interest included in total | [1] | 213 | 226 |
Mortgage [Member] | Purchased Loans [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 8,420 | 8,462 |
750-799 | [1] | 20,309 | 20,984 |
700-749 | [1] | 8,646 | 9,115 |
650-699 | [1] | 435 | 437 |
600-649 | [1] | 0 | 0 |
550-599 | [1] | 0 | 0 |
500-549 | [1] | 0 | 0 |
Under 500 | [1] | 0 | 0 |
Unknown | [1] | 131 | 139 |
Total | [1] | 37,941 | 39,137 |
Accrued interest included in total | [1] | 112 | 111 |
Installment [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 56,075 | 56,347 |
750-799 | [1] | 121,196 | 114,065 |
700-749 | [1] | 51,364 | 48,883 |
650-699 | [1] | 24,965 | 25,070 |
600-649 | [1] | 7,781 | 8,402 |
550-599 | [1] | 3,974 | 4,289 |
500-549 | [1] | 2,457 | 2,813 |
Under 500 | [1] | 552 | 634 |
Unknown | [1] | 6,640 | 5,884 |
Total | [1] | 275,004 | 266,387 |
Accrued interest included in total | [1] | 771 | 771 |
Installment [Member] | Home Equity - 1st Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 1,235 | 1,354 |
750-799 | [1] | 2,340 | 2,478 |
700-749 | [1] | 1,766 | 1,920 |
650-699 | [1] | 2,731 | 2,852 |
600-649 | [1] | 1,611 | 1,691 |
550-599 | [1] | 1,160 | 1,231 |
500-549 | [1] | 887 | 981 |
Under 500 | [1] | 110 | 114 |
Unknown | [1] | 28 | 29 |
Total | [1] | 11,868 | 12,650 |
Accrued interest included in total | [1] | 51 | 54 |
Installment [Member] | Home Equity - 2nd Lien [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 1,370 | 1,626 |
750-799 | [1] | 3,007 | 3,334 |
700-749 | [1] | 2,448 | 2,686 |
650-699 | [1] | 2,390 | 2,541 |
600-649 | [1] | 1,612 | 1,775 |
550-599 | [1] | 973 | 1,063 |
500-549 | [1] | 629 | 692 |
Under 500 | [1] | 214 | 220 |
Unknown | [1] | 0 | 21 |
Total | [1] | 12,643 | 13,958 |
Accrued interest included in total | [1] | 52 | 59 |
Installment [Member] | Boat Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 22,038 | 21,422 |
750-799 | [1] | 54,385 | 50,508 |
700-749 | [1] | 21,100 | 20,045 |
650-699 | [1] | 7,506 | 7,559 |
600-649 | [1] | 1,579 | 1,846 |
550-599 | [1] | 813 | 882 |
500-549 | [1] | 343 | 440 |
Under 500 | [1] | 56 | 73 |
Unknown | [1] | 223 | 150 |
Total | [1] | 108,043 | 102,925 |
Accrued interest included in total | [1] | 267 | 264 |
Installment [Member] | Recreational Vehicle Lending [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 22,843 | 23,034 |
750-799 | [1] | 39,161 | 35,827 |
700-749 | [1] | 11,977 | 11,049 |
650-699 | [1] | 3,433 | 3,205 |
600-649 | [1] | 781 | 821 |
550-599 | [1] | 251 | 280 |
500-549 | [1] | 181 | 189 |
Under 500 | [1] | 16 | 16 |
Unknown | [1] | 125 | 114 |
Total | [1] | 78,768 | 74,535 |
Accrued interest included in total | [1] | 205 | 203 |
Installment [Member] | Other [Member] | |||
Loan ratings/credit scores by loan class [Abstract] | |||
800 and above | [1] | 8,589 | 8,911 |
750-799 | [1] | 22,303 | 21,918 |
700-749 | [1] | 14,073 | 13,183 |
650-699 | [1] | 8,905 | 8,913 |
600-649 | [1] | 2,198 | 2,269 |
550-599 | [1] | 777 | 833 |
500-549 | [1] | 417 | 511 |
Under 500 | [1] | 156 | 211 |
Unknown | [1] | 6,264 | 5,570 |
Total | [1] | 63,682 | 62,319 |
Accrued interest included in total | [1] | $ 196 | $ 191 |
[1] | Credit scores have been updated within the last twelve months. |
Shareholders' Equity and Earn42
Shareholders' Equity and Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Jan. 23, 2017 | ||
Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 5,974 | $ 4,100 | ||
Weighted average shares outstanding (in shares) | [1] | 21,308 | 21,751 | |
Effect of stock options (in shares) | 152 | 112 | ||
Stock units for deferred compensation plan for non-employee directors (in shares) | 119 | 113 | ||
Performance share units (in shares) | 60 | 0 | ||
Restricted stock units (in shares) | 0 | 86 | ||
Weighted average shares outstanding for calculation of diluted earnings per share (in shares) | 21,639 | 22,062 | ||
Net income per common share [Abstract] | ||||
Basic (in dollars per share) | [1] | $ 0.28 | $ 0.19 | |
Diluted (in dollars per share) | $ 0.28 | $ 0.19 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Stock repurchase program percentage of shares authorized to be repurchased | 5.00% | |||
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) | 0 | 30 | ||
[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) - No Hedge Designation [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 209,031 | $ 187,092 |
Average Maturity | 4 years | 4 years 4 months 24 days |
Fair Value | $ 851 | $ 1,276 |
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 2,145 | 2,251 |
Liability Derivatives | 1,294 | 975 |
Rate-Lock Mortgage Loan Commitments [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 34,318 | $ 26,658 |
Average Maturity | 1 month 6 days | 1 month 6 days |
Fair Value | $ 1,017 | $ 646 |
Rate-Lock Mortgage Loan Commitments [Member] | Other Assets [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 1,017 | 646 |
Rate-Lock Mortgage Loan Commitments [Member] | Other Liabilities [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Mandatory Commitments to Sell Mortgage Loans [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 68,023 | $ 61,954 |
Average Maturity | 1 month 6 days | 1 month 6 days |
Fair Value | $ (166) | $ 630 |
Mandatory Commitments to Sell Mortgage Loans [Member] | Other Assets [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 0 | 630 |
Mandatory Commitments to Sell Mortgage Loans [Member] | Other Liabilities [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 166 | 0 |
Interest Rate Swap [Member] | Fixed Income Interest Rate [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 50,226 | $ 46,121 |
Average Maturity | 8 years | 8 years 7 months 6 days |
Fair Value | $ 359 | $ 249 |
Interest Rate Swap [Member] | Fixed Income Interest Rate [Member] | Other Assets [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 590 | 493 |
Interest Rate Swap [Member] | Fixed Income Interest Rate [Member] | Other Liabilities [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 231 | 244 |
Interest Rate Swap [Member] | Variable Income Interest Rate [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 50,226 | $ 46,121 |
Average Maturity | 8 years | 8 years 7 months 6 days |
Fair Value | $ (359) | $ (249) |
Interest Rate Swap [Member] | Variable Income Interest Rate [Member] | Other Assets [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 231 | 244 |
Interest Rate Swap [Member] | Variable Income Interest Rate [Member] | Other Liabilities [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 590 | 493 |
Purchased Options [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 3,119 | $ 3,119 |
Average Maturity | 4 years 3 months 18 days | 4 years 6 months |
Fair Value | $ 307 | $ 238 |
Purchased Options [Member] | Other Assets [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 307 | 238 |
Purchased Options [Member] | Other Liabilities [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | 0 | 0 |
Written Options [Member] | ||
Derivative financial instrument according to type of hedge[ Abstract] | ||
Notional Amount | $ 3,119 | $ 3,119 |
Average Maturity | 4 years 3 months 18 days | 4 years 6 months |
Fair Value | $ (307) | $ (238) |
Written Options [Member] | Other Assets [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Asset Derivatives | 0 | 0 |
Written Options [Member] | Other Liabilities [Member] | ||
Fair value of derivative instruments, balance sheet location [Abstract] | ||
Liability Derivatives | $ 307 | $ 238 |
Derivative Financial Instrume44
Derivative Financial Instruments, Effect on Statement of Operations (Details) - No Hedge Designation [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | ||
Gain (Loss) Recognized in Income | $ (425) | $ 13 |
Rate-Lock Mortgage Loan Commitments [Member] | Net Gains on Mortgage Loans [Member] | ||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | ||
Gain (Loss) Recognized in Income | 371 | 219 |
Mandatory Commitments to Sell Mortgage Loans [Member] | Net Gains on Mortgage Loans [Member] | ||
Effect of derivative financial instruments on the condensed consolidated financial statements of operations [Abstract] | ||
Gain (Loss) Recognized in Income | (796) | (209) |
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 | 69 | 78 |
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 | (69) | (78) |
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 | 110 | (1,118) |
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 | $ (110) | $ 1,118 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Amortized intangible assets - core deposits [Abstract] | ||
Gross Carrying Amount | $ 6,118 | $ 6,118 |
Accumulated Amortization | 4,273 | $ 4,186 |
Summary of estimated intangible amortization [Abstract] | ||
Nine months ending December 31, 2017 | 259 | |
2,018 | 346 | |
2,019 | 346 | |
2,020 | 346 | |
2,021 | 346 | |
2,022 | 202 | |
Total | $ 1,845 |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares approved for grant (in shares) | 100,000 | ||
Total compensation cost not yet recognized | $ 3,200 | ||
Total compensation cost not yet recognized, period for recognition | 2 years 6 months | ||
Information regarding options exercised [Abstract] | |||
Intrinsic value | $ 279 | $ 117 | |
Cash proceeds received | 66 | 32 | |
Tax benefit realized | 98 | 41 | |
Long-term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense recognized | 400 | 400 | |
Tax benefit relating to compensation expense recognized | $ 100 | $ 100 | |
Stock Options [Member] | |||
Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 211,018 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (15,992) | ||
Forfeited (in shares) | 0 | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 195,026 | ||
Vested and expected to vest, period end (in shares) | 195,026 | ||
Exercisable, period end (in shares) | 195,026 | ||
Average Exercise Price [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ 5.05 | ||
Exercised (in dollars per share) | 4.14 | ||
Outstanding, ending balance (in dollars per share) | 5.12 | ||
Vested and expected to vest, period end (in dollars per share) | 5.12 | ||
Exercisable, period end (in dollars per share) | $ 5.12 | ||
Weighted-Average Remaining Contractual Term (Years) [Abstract] | |||
Outstanding, Weighted Average Remaining Contractual Term | 4 years 10 months 6 days | ||
Vested and Expected to Vest, Weighted-Average Remaining Contractual Term | 4 years 10 months 6 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 4 years 10 months 6 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Outstanding, Aggregate Intrinsic Value | $ 3,038 | ||
Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 3,038 | ||
Exercisable, Aggregate Intrinsic Value | $ 3,038 | ||
Non Vested Restricted Stock and PSU's [Member] | |||
Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 296,422 | ||
Granted (in shares) | 68,473 | ||
Vested (in shares) | (50,297) | ||
Forfeited (in shares) | (5,727) | ||
Outstanding, ending balance (in shares) | 308,871 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding, beginning balance (in dollars per share) | $ 14.52 | ||
Granted (in dollars per share) | 21.07 | ||
Vested (in dollars per share) | 14.81 | ||
Forfeited (in dollars per share) | 15.57 | ||
Outstanding, ending balance (in dollars per share) | $ 15.85 | ||
Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issues as retainer fees (in shares) | 2,000 | 2,000 | |
Non-Employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of additional shares approved for grant (in shares) | 200,000 | ||
Total compensation expense recognized | $ 40 | $ 30 | |
Tax benefit relating to compensation expense recognized | $ 10 | $ 10 | |
Officers [Member] | Restricted Stock [Member] | Long-term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock units or restricted shares issued in period (in shares) | 50,000 | 70,000 | |
Vesting period | 3 years | 3 years | |
Officers [Member] | Performance Stock Units [Member] | Long-term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock units or restricted shares issued in period (in shares) | 20,000 | 30,000 | |
Vesting period | 3 years | 3 years |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax [Abstract] | |||
Income tax expense | $ 2,621 | $ 1,957 | |
Gross unrecognized tax benefits | 800 | $ 800 | |
Mepco [Member] | |||
Valuation Allowance [Line Items] | |||
Valuation allowance against deferred tax assets | $ 1,100 | $ 1,100 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Regulatory Matters [Abstract] | ||||
Undivided profits | $ 11,200 | |||
Request for approval to transfer capital from bank to parent entity | $ 18,000 | |||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | $ 239,545 | 255,475 | $ 248,980 | $ 251,092 |
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss for regulatory purposes | (6,536) | (9,108) | ||
Intangible assets | (1,845) | (1,932) | ||
Consolidated [Member] | ||||
Total capital to risk-weighted assets [Abstract] | ||||
Total risk-based capital | 291,505 | 286,289 | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 148,484 | $ 144,413 | ||
Actual, Ratio | 15.71% | 15.86% | ||
Minimum for Adequately Capitalized Institutions, Ratio | 8.00% | 8.00% | ||
Tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 270,707 | $ 265,405 | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 111,363 | $ 108,309 | ||
Actual, Ratio | 14.59% | 14.70% | ||
Minimum for Adequately Capitalized Institutions, Ratio | 6.00% | 6.00% | ||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 239,913 | $ 238,996 | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 83,522 | $ 81,232 | ||
Actual, Ratio | 12.93% | 13.24% | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.50% | 4.50% | ||
Tier 1 capital to average assets [Abstract] | ||||
Tier 1 capital | $ 270,707 | $ 265,405 | ||
Minimum for Adequately Capitalized Institutions, Amount | $ 101,693 | $ 101,112 | ||
Actual, Ratio | 10.65% | 10.50% | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.00% | 4.00% | ||
Components of regulatory capital [Abstract] | ||||
Total shareholders' equity | $ 255,475 | $ 248,980 | ||
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss for regulatory purposes | 738 | 3,310 | ||
Intangible assets | (1,476) | (1,159) | ||
Disallowed deferred tax assets | (14,824) | (12,135) | ||
Common equity tier 1 capital | 239,913 | 238,996 | ||
Qualifying trust preferred securities | 34,500 | 34,500 | ||
Disallowed deferred tax assets | (3,706) | (8,091) | ||
Tier 1 capital | 270,707 | 265,405 | ||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 20,798 | 20,884 | ||
Total risk-based capital | 291,505 | 286,289 | ||
Independent Bank [Member] | ||||
Total capital to risk-weighted assets [Abstract] | ||||
Total risk-based capital | 273,822 | 270,855 | ||
Minimum for Adequately Capitalized Institutions, Amount | 148,308 | 144,223 | ||
Minimum for Well Capitalized Institutions, Amount | $ 185,384 | $ 180,279 | ||
Actual, Ratio | 14.77% | 15.02% | ||
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 | $ 253,024 | $ 249,971 | ||
Minimum for Adequately Capitalized Institutions, Amount | 111,231 | 108,167 | ||
Minimum for Well-Capitalized Institutions, Amount | $ 148,308 | $ 144,223 | ||
Actual, Ratio | 13.65% | 13.87% | ||
Minimum for Adequately Capitalized Institutions, Ratio | 6.00% | 6.00% | ||
Minimum for Well Capitalized Institutions, Ratio | 8.00% | 8.00% | ||
Common equity tier 1 capital to risk-weighted assets [Abstract] | ||||
Actual, Amount | $ 253,024 | $ 249,971 | ||
Minimum for Adequately Capitalized Institutions, Amount | 83,423 | 81,126 | ||
Minimum for Well-Capitalized Institutions, Amount | $ 120,500 | $ 117,181 | ||
Actual, Ratio | 13.65% | 13.87% | ||
Minimum for Adequately Capitalized Institutions, Ratio | 4.50% | 4.50% | ||
Minimum for Well Capitalized Institutions, Ratio | 6.50% | 6.50% | ||
Tier 1 capital to average assets [Abstract] | ||||
Tier 1 capital | $ 253,024 | $ 249,971 | ||
Minimum for Adequately Capitalized Institutions, Amount | 101,609 | 101,019 | ||
Minimum for Well-Capitalized Institutions, Amount | $ 127,011 | $ 126,274 | ||
Actual, Ratio | 9.96% | 9.90% | ||
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 | $ 262,716 | $ 258,814 | ||
Add (deduct) [Abstract] | ||||
Accumulated other comprehensive loss for regulatory purposes | 738 | 3,310 | ||
Intangible assets | (1,476) | (1,159) | ||
Disallowed deferred tax assets | (8,954) | (10,994) | ||
Common equity tier 1 capital | 253,024 | 249,971 | ||
Qualifying trust preferred securities | 0 | 0 | ||
Disallowed deferred tax assets | 0 | 0 | ||
Tier 1 capital | 253,024 | 249,971 | ||
Allowance for loan losses and allowance for unfunded lending commitments limited to 1.25% of total risk-weighted assets | 20,798 | 20,884 | ||
Total risk-based capital | $ 273,822 | $ 270,855 |
Fair Value Disclosures, Signifi
Fair Value Disclosures, Significant Assumptions (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
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 | 331 | $ 410 | |
Securities available for sale | 608,964 | 610,616 | |
Loans held for sale | 37,613 | 35,946 | |
U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,784 | 28,988 | |
U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 147,874 | 156,289 | |
U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 12,195 | 12,632 | |
Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,840 | 34,727 | |
Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 145,795 | 146,709 | |
Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 180,250 | 170,899 | |
Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 60,967 | 56,180 | |
Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,653 | 2,579 | |
Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 1,606 | 1,613 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Trading securities | 331 | 410 | |
Loans held for sale | 37,613 | 35,946 | |
Capitalized mortgage loan servicing rights | 14,727 | ||
Derivatives | [1] | 2,145 | 2,251 |
Liabilities [Abstract] | |||
Derivatives | [2] | 1,294 | 975 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,784 | 28,988 | |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Residential Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 147,874 | 156,289 | |
Fair Value, Measurements, Recurring [Member] | U.S. Agency Commercial Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 12,195 | 12,632 | |
Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,840 | 34,727 | |
Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 145,795 | 146,709 | |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 180,250 | 170,899 | |
Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 60,967 | 56,180 | |
Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,653 | 2,579 | |
Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 1,606 | 1,613 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | [3] | 8,163 | |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [4] | 294 | 255 |
Land, land development & construction - real estate | [4] | 10 | 54 |
Commercial and industrial | [4] | 1,213 | 1,342 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 169 | 361 |
Resort Lending | [4] | 225 | |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [5],[6] | 2,863 | 2,863 |
Land, land development & construction - real estate | [6] | 176 | 176 |
Mortgage [Abstract] | |||
1-4 Family | [6] | 146 | 98 |
Resort Lending | [6] | 18 | 133 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Trading securities | 331 | 410 | |
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 | 331 | 410 | |
Loans held for sale | 0 | 0 | |
Capitalized mortgage loan servicing rights | 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 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, Recurring [Member] | Foreign Government [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 | |
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 |
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],[6] | 0 | 0 |
Land, land development & construction - real estate | [6] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [6] | 0 | 0 |
Resort Lending | [6] | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Securities available for sale | 608,964 | 610,616 | |
Derivatives | 2,145 | 2,251 | |
Liabilities [Abstract] | |||
Derivatives | 1,294 | 975 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Loans held for sale | 37,613 | 35,946 | |
Capitalized mortgage loan servicing rights | 0 | ||
Derivatives | [1] | 2,145 | 2,251 |
Liabilities [Abstract] | |||
Derivatives | [2] | 1,294 | 975 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,784 | 28,988 | |
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 | 147,874 | 156,289 | |
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 | 12,195 | 12,632 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Private Label Mortgage-Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 28,840 | 34,727 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other Asset Backed [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 145,795 | 146,709 | |
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 | 180,250 | 170,899 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 60,967 | 56,180 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Trust Preferred [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 2,653 | 2,579 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Government [Member] | |||
Assets [Abstract] | |||
Securities available for sale | 1,606 | 1,613 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets [Abstract] | |||
Capitalized mortgage loan servicing rights | [3] | 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 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [5],[6] | 2,863 | 2,863 |
Land, land development & construction - real estate | [6] | 0 | 0 |
Mortgage [Abstract] | |||
1-4 Family | [6] | 0 | 0 |
Resort Lending | [6] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Trading securities | 0 | 0 | |
Securities available for sale | 0 | 0 | |
Capitalized mortgage loan servicing rights | 14,727 | 8,163 | |
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 | |
Capitalized mortgage loan servicing rights | 14,727 | ||
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 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, Recurring [Member] | Foreign Government [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] | 8,163 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [4] | 294 | 255 |
Land, land development & construction - real estate | [4] | 10 | 54 |
Commercial and industrial | [4] | 1,213 | 1,342 |
Mortgage [Abstract] | |||
1-4 Family | [4] | 169 | 361 |
Resort Lending | [4] | 225 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate [Member] | |||
Commercial [Abstract] | |||
Income producing - real estate | [5],[6] | 0 | 0 |
Land, land development & construction - real estate | [6] | 176 | 176 |
Mortgage [Abstract] | |||
1-4 Family | [6] | 146 | 98 |
Resort Lending | [6] | $ 18 | $ 133 |
[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] | Level 2 valuation is based on a signed purchase agreement. | ||
[6] | Only includes other real estate with subsequent write downs to fair value. |
Fair Value Disclosures, Changes
Fair Value Disclosures, Changes in Fair Value for Financial Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Impairment charges recognized [Abstract] | |||
Capitalized mortgage loan servicing rights, carrying amount | $ 8,200 | ||
Capitalized mortgage loan servicing rights, valuation allowance | 2,300 | ||
Capitalized mortgage loan servicing rights | $ 1,500 | ||
Collateral dependent loans, carrying amount | $ 2,600 | 4,000 | |
Collateral dependent loans, valuation allowance | 700 | 2,000 | |
Additional provision for loan losses on impaired loans | 300 | 600 | |
Other real estate, carrying amount | 3,200 | 3,200 | |
Other real estate, valuation allowance | 700 | $ 800 | |
Other real estate, additional charge | 20 | 170 | |
Trading Securities [Member] | |||
Changes in fair value for financial assets [Abstract] | |||
Net Gains (Losses) on Assets | (79) | (12) | |
Total Change in Fair Values Included in Current Period Earnings | (79) | (12) | |
Capitalized Mortgage Loan Servicing Rights [Member] | |||
Changes in fair value for financial assets [Abstract] | |||
Mortgage Loan Servicing, net | (264) | ||
Total Change in Fair Values Included in Current Period Earnings | (264) | ||
Loans Held For Sale [Member] | |||
Changes in fair value for financial assets [Abstract] | |||
Net Gains (Losses) on Assets | 581 | 127 | |
Total Change in Fair Values Included in Current Period Earnings | $ 581 | $ 127 |
Fair Value Disclosures, Reconci
Fair Value Disclosures, Reconciliation for all Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||
Change in accounting | $ 14,727 | |
Capitalized Mortgage Loan Servicing Rights [Member] | ||
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||
Beginning balance | 0 | $ 0 |
Change in accounting | 14,213 | |
Total losses realized and unrealized [Abstract] | ||
Included in results of operations | (264) | 0 |
Included in other comprehensive income | 0 | 0 |
Purchases, issuances, settlements, maturities and calls | 778 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | 14,727 | 0 |
Amount of total gains losses for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets and liabilities still held at March 31 | (264) | 0 |
Capitalized Mortgage Loan Servicing Rights [Member] | As Adjusted [Member] | ||
Reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | ||
Beginning balance | $ 14,213 | $ 0 |
Fair Value Disclosures, Quantit
Fair Value Disclosures, Quantitative Information About Level 3 (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Impaired Loans Commercial [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Total impaired collateral value | $ 200,000 | ||
Impaired Loans Commercial [Member] | Minimum [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Discount rate | 0.00% | ||
Impaired Loans Commercial [Member] | Maximum [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Discount rate | 100.00% | ||
Significant Unobservable Inputs (Level 3) [Member] | |||
Asset (Liability) Fair Value [Abstract] | |||
Capitalized mortgage loan servicing rights | $ 14,727,000 | $ 8,163,000 | |
Impaired loan [Abstract] | |||
Commercial | 1,517,000 | 1,446,000 | [1] |
Mortgage | 394,000 | 361,000 | |
Other real estate [Abstract] | |||
Commercial | 176,000 | 176,000 | |
Mortgage | $ 164,000 | $ 231,000 | |
Present Value of Net Servicing Revenue [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Discount rate | 10.08% | 10.07% | |
Cost to service | $ 81 | $ 83 | |
Ancillary income | $ 24 | $ 24 | |
Float rate | 2.05% | 1.97% | |
Sales Comparison Approach [Member] | Impaired Loans Commercial [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | (2.10%) | (1.50%) | [1] |
Sales Comparison Approach [Member] | Impaired Loans Mortgage [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | (2.80%) | (4.70%) | |
Sales Comparison Approach [Member] | Other Real Estate Commercial [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | (22.50%) | (22.50%) | |
Sales Comparison Approach [Member] | Other Real Estate Mortgage [Member] | |||
Unobservable Inputs Weighted Average [Abstract] | |||
Adjustment for differences between comparable sales | (13.10%) | (5.10%) | |
[1] | In addition to the valuation techniques and unobservable inputs discussed above, at December 31, 2016, we had an impaired collateral dependent commercial relationship that totaled $0.2 million that was primarily secured by collateral other than real estate. Collateral securing this relationship primarily included machinery and equipment and inventory. Valuation techniques included appraisals and discounting restructuring firm valuations based on estimates of value recovery of each particular asset type. Discount rates used ranged from 0% to 100% of stated values. |
Fair Value Disclosures, Differe
Fair Value Disclosures, Difference Between Aggregate Fair Value and Aggregate Remaining Contractual Principal (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans held for sale [Abstract] | ||
Aggregate Fair Value | $ 37,613 | $ 35,946 |
Difference | 1,018 | 437 |
Contractual Principal | $ 36,595 | $ 35,509 |
Fair Values of Financial Inst54
Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Assets [Abstract] | |||
Interest bearing deposits - time | $ 5,340 | $ 5,591 | |
Trading securities | 331 | 410 | |
Securities available for sale | 608,964 | 610,616 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 15,543 | 15,543 | |
Liabilities [Abstract] | |||
Other borrowings | 9,433 | 9,433 | |
Subordinated debentures | 35,569 | 35,569 | |
Payment plan receivables and commercial loans held for sale | 32,900 | 31,400 | |
Reciprocal deposits included in deposits with no stated maturity | 12,900 | 7,400 | |
Reciprocal deposits included in deposits with stated maturity | 28,500 | 31,300 | |
Recorded Book Balance [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 29,866 | 35,238 | |
Interest bearing deposits | 39,957 | 47,956 | |
Interest bearing deposits - time | 5,340 | 5,591 | |
Trading securities | 331 | 410 | |
Securities available for sale | 608,964 | 610,616 | |
Federal Home Loan Bank and Federal Reserve Bank Stock | 15,543 | 15,543 | |
Net loans and loans held for sale | [1] | 1,721,180 | 1,655,335 |
Accrued interest receivable | 7,697 | 7,316 | |
Derivative financial instruments | 2,145 | 2,251 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [2] | 1,786,095 | 1,740,601 |
Deposits with stated maturity | [2] | 476,964 | 485,118 |
Other borrowings | 9,433 | 9,433 | |
Subordinated debentures | 35,569 | 35,569 | |
Accrued interest payable | 1,223 | 932 | |
Derivative financial instruments | 1,294 | 975 | |
Fair Value [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 29,866 | 35,238 | |
Interest bearing deposits | 39,957 | 47,956 | |
Interest bearing deposits - time | 5,357 | 5,611 | |
Trading securities | 331 | 410 | |
Securities available for sale | 608,964 | 610,616 | |
Net loans and loans held for sale | [1] | 1,689,457 | 1,629,587 |
Accrued interest receivable | 7,697 | 7,316 | |
Derivative financial instruments | 2,145 | 2,251 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [2] | 1,786,095 | 1,740,601 |
Deposits with stated maturity | [2] | 474,892 | 483,469 |
Other borrowings | 10,253 | 10,371 | |
Subordinated debentures | 26,018 | 25,017 | |
Accrued interest payable | 1,223 | 932 | |
Derivative financial instruments | 1,294 | 975 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash and due from banks | 29,866 | 35,238 | |
Interest bearing deposits | 39,957 | 47,956 | |
Interest bearing deposits - time | 0 | 0 | |
Trading securities | 331 | 410 | |
Securities available for sale | 0 | 0 | |
Net loans and loans held for sale | [1] | 0 | 0 |
Accrued interest receivable | 1 | 5 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [2] | 1,786,095 | 1,740,601 |
Deposits with stated maturity | [2] | 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 | 5,357 | 5,611 | |
Trading securities | 0 | 0 | |
Securities available for sale | 608,964 | 610,616 | |
Net loans and loans held for sale | [1] | 70,471 | 67,321 |
Accrued interest receivable | 2,795 | 2,364 | |
Derivative financial instruments | 2,145 | 2,251 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [2] | 0 | 0 |
Deposits with stated maturity | [2] | 474,892 | 483,469 |
Other borrowings | 10,253 | 10,371 | |
Subordinated debentures | 26,018 | 25,017 | |
Accrued interest payable | 1,203 | 911 | |
Derivative financial instruments | 1,294 | 975 | |
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] | 1,618,986 | 1,562,266 |
Accrued interest receivable | 4,901 | 4,947 | |
Derivative financial instruments | 0 | 0 | |
Liabilities [Abstract] | |||
Deposits with no stated maturity | [2] | 0 | 0 |
Deposits with stated maturity | [2] | 0 | 0 |
Other borrowings | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Derivative financial instruments | $ 0 | $ 0 | |
[1] | Net loans and loans held for sale include $32.9 million and $31.4 million of payment plan receivables and commercial loans held for sale at March 31, 2017 and December 31, 2016, respectively | ||
[2] | Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $12.9 million and $7.4 million at March 31, 2017 and December 31, 2016, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $28.5 million and $31.3 million March 31, 2017 and December 31, 2016, respectively. |
Contingent Liabilities (Details
Contingent Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Litigation settlement expense | $ 2,200 | ||
Notification costs and other estimated expenses | 100 | ||
Cash payment for litigation settlement relating to collection of vehicle service contracts counterparty receivables | $ 4,000 | ||
Aggregate amount of counterparty obligations | $ 2,176 | 2,271 | |
Vehicle service contract counterparty contingencies | (100) | 30 | |
Provision for loss reimbursement on sold loans | 30 | (20) | |
Reserve for loss reimbursement on sold mortgage loans | $ 500 | $ 600 | |
Promissory Note [Member] | |||
Loss Contingencies [Line Items] | |||
Notes payable amount of settlement to counterparties | $ 1,500 | ||
Term of note | 5 years | ||
Full reserve on the remaining balance | $ 1,250 | ||
Accounts Receivables Due to Mepco [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Installment payments period for service contract | 12 months | ||
Accounts Receivables Due to Mepco [Member] | Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Installment payments period for service contract | 30 months |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Loss ("AOCL"), Summary of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ 248,980 | $ 251,092 |
Cumulative effect of change in accounting | 352 | 0 |
Balance at beginning of period, as adjusted | 249,332 | 251,092 |
Other comprehensive income before reclassifications | 2,341 | 1,349 |
Amounts reclassified from AOCL | (69) | (112) |
Net current period other comprehensive income | 2,272 | 1,237 |
Balance at end of period | 255,475 | 239,545 |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (9,108) | (6,036) |
Cumulative effect of change in accounting | 300 | |
Balance at beginning of period, as adjusted | (8,808) | |
Balance at end of period | (6,536) | (4,799) |
Unrealized Gains (Losses) on Securities Available For Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (3,310) | (238) |
Cumulative effect of change in accounting | 300 | |
Balance at beginning of period, as adjusted | (3,010) | |
Other comprehensive income before reclassifications | 2,341 | 1,349 |
Amounts reclassified from AOCL | (69) | (112) |
Net current period other comprehensive income | 2,272 | 1,237 |
Balance at end of period | (738) | 999 |
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) |
Cumulative effect of change in accounting | 0 | |
Balance at beginning of period, as adjusted | (5,798) | |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from AOCL | 0 | 0 |
Net current period other comprehensive income | 0 | 0 |
Balance at end of period | $ (5,798) | $ (5,798) |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Loss ("AOCL"), Reclassification Out of Each components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications before tax | $ 8,595 | $ 6,057 |
Income tax expense | 2,621 | 1,957 |
Reclassifications, net of tax | 5,974 | 4,100 |
Unrealized Gains (Losses) on Securities Available For Sale [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net gains on securities | 106 | 174 |
Net impairment loss recognized in earnings | 0 | 0 |
Total reclassifications before tax | 106 | 174 |
Income tax expense | 37 | 62 |
Reclassifications, net of tax | $ 69 | $ 112 |
Payment Plan Receivables and 58
Payment Plan Receivables and Other Assets Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Payment Plan Receivables And Other Assets Held For Sale [Line Items] | ||
Commercial loans | $ 815,484 | $ 804,017 |
Mepco [Member] | ||
Payment Plan Receivables And Other Assets Held For Sale [Line Items] | ||
Payment plan receivables | 32,300 | 30,600 |
Commercial loans | 600 | 800 |
Other assets to be sold | 1,900 | 2,000 |
Liabilities to be assumed | $ 1,400 | $ 700 |