Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'CENTRAL PACIFIC FINANCIAL CORP | ' | ' |
Entity Central Index Key | '0000701347 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $403,903,000 |
Entity Common Stock, Shares Outstanding | ' | 42,108,496 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $45,092 | $56,473 |
Interest-bearing deposits in other banks | 4,256 | 120,902 |
Investment securities: | ' | ' |
Available for sale, at fair value | 1,407,999 | 1,536,745 |
Held to maturity, at amortized cost (fair value of $ 238,705 at December 31, 2013 and $162,528 at December 31, 2012) | 252,047 | 161,848 |
Total investment securities | 1,660,046 | 1,698,593 |
Loans held for sale | 12,370 | 38,283 |
Loans and leases | 2,630,601 | 2,203,944 |
Allowance for loan and lease losses | -83,820 | -96,413 |
Net loans and leases | 2,546,781 | 2,107,531 |
Premises and equipment, net | 49,039 | 48,759 |
Accrued interest receivable | 14,072 | 13,896 |
Investment in unconsolidated subsidiaries | 9,127 | 10,975 |
Other real estate | 5,163 | 10,686 |
Other intangible assets | 32,783 | 37,499 |
Bank-owned life insurance | 149,604 | 147,411 |
Federal Home Loan Bank stock | 46,193 | 47,928 |
Other assets | 166,672 | 31,432 |
Total assets | 4,741,198 | 4,370,368 |
Deposits: | ' | ' |
Noninterest-bearing demand | 891,017 | 843,292 |
Interest-bearing demand | 728,619 | 672,838 |
Savings and money market | 1,207,016 | 1,186,011 |
Time | 1,109,521 | 978,631 |
Total deposits | 3,936,173 | 3,680,772 |
Short-term borrowings | 8,015 | 0 |
Long-term debt | 92,799 | 108,281 |
Other liabilities | 44,037 | 66,536 |
Total liabilities | 4,081,024 | 3,855,589 |
Equity: | ' | ' |
Preferred stock, no par value, authorized 1,100,000 shares, issued and outstanding none at December 31, 2013 and 2012 | ' | ' |
Common stock, no par value, authorized 185,000,000 shares, issued and outstanding 42,107,633 and 41,867,046 shares at December 31, 2013 and 2012, respectively | 784,547 | 784,512 |
Surplus | 75,498 | 70,567 |
Accumulated deficit | -184,087 | -349,427 |
Accumulated other comprehensive loss | -15,845 | -830 |
Total shareholders' equity | 660,113 | 504,822 |
Non-controlling interest | 61 | 9,957 |
Total equity | 660,174 | 514,779 |
Total liabilities and equity | $4,741,198 | $4,370,368 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Held to maturity, fair value (in dollars) | $238,705 | $162,528 |
Preferred stock, par value (in dollars per share) | ' | ' |
Preferred stock, authorized shares | 1,100,000 | 1,100,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 42,107,633 | 41,867,046 |
Common stock, outstanding shares | 42,107,633 | 41,867,046 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income: | ' | ' | ' |
Interest and fees on loans and leases | $104,479 | $97,029 | $107,089 |
Interest and dividends on investment securities: | ' | ' | ' |
Taxable interest | 31,498 | 28,803 | 27,559 |
Tax-exempt interest | 4,051 | 2,312 | 738 |
Dividends | 23 | 16 | 12 |
Interest on deposits in other banks | 203 | 285 | 1,052 |
Dividends on Federal Home Loan Bank stock | 24 | ' | ' |
Total interest income | 140,278 | 128,445 | 136,450 |
Interest on deposits: | ' | ' | ' |
Demand | 349 | 339 | 500 |
Savings and money market | 894 | 1,006 | 2,044 |
Time | 2,801 | 3,688 | 7,066 |
Interest on short-term borrowings | 6 | ' | 204 |
Interest on long-term debt | 3,119 | 3,701 | 8,815 |
Total interest expense | 7,169 | 8,734 | 18,629 |
Net interest income | 133,109 | 119,711 | 117,821 |
Provision (credit) for loan and lease losses | -11,310 | -18,885 | -40,690 |
Net interest income after provision for loan and lease losses | 144,419 | 138,596 | 158,511 |
Other operating income: | ' | ' | ' |
Other service charges and fees | 18,547 | 17,569 | 17,239 |
Net gain on sales of residential loans | 9,986 | 17,095 | 8,050 |
Net gain on sales of foreclosed assets | 8,584 | 4,999 | 6,821 |
Service charges on deposit accounts | 7,041 | 8,367 | 10,024 |
Income from fiduciary activities | 2,855 | 2,599 | 2,794 |
Income from bank-owned life insurance | 2,333 | 2,899 | 4,139 |
Equity in earnings of unconsolidated subsidiaries | 790 | 574 | 458 |
Loan placement fees | 570 | 690 | 541 |
Fees on foreign exchange | 508 | 551 | 664 |
Investment securities gains | 482 | 789 | 1,306 |
Other | 3,249 | 4,611 | 4,966 |
Total other operating income | 54,945 | 60,743 | 57,002 |
Other operating expense: | ' | ' | ' |
Salaries and employee benefits | 76,294 | 69,344 | 63,675 |
Net occupancy | 14,323 | 13,920 | 13,793 |
Legal and professional services | 8,094 | 13,824 | 13,506 |
Amortization and impairment of other intangible assets | 7,418 | 10,179 | 7,033 |
Computer software expense | 4,579 | 3,961 | 3,629 |
Equipment | 3,676 | 3,966 | 4,702 |
Communication expense | 3,523 | 3,428 | 3,517 |
Advertising expense | 2,666 | 3,516 | 2,961 |
Foreclosed asset expense | 1,036 | 6,887 | 11,378 |
Write down of assets | ' | 2,586 | 4,624 |
Loss on early extinguishment of debt | ' | ' | 6,234 |
Other | 17,927 | 20,307 | 43,890 |
Total other operating expense | 139,536 | 151,918 | 178,942 |
Income before income taxes | 59,828 | 47,421 | 36,571 |
Income tax benefit | -112,247 | ' | ' |
Net income | 172,075 | 47,421 | 36,571 |
Preferred stock dividends, accretion of discount and conversion of preferred stock to common stock | ' | ' | -83,897 |
Net income available to common shareholders | $172,075 | $47,421 | $120,468 |
Per common share data: | ' | ' | ' |
Basic earnings per share (in dollars per share) | $4.10 | $1.14 | $3.36 |
Diluted earnings per share (in dollars per share) | $4.07 | $1.13 | $3.31 |
Cash dividends declared (in dollars per share) | $0.16 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net income | $172,075 | $47,421 | $36,571 |
Other comprehensive income (loss), net of tax | ' | ' | ' |
Net change in unrealized gain (loss) on investment securities | -31,865 | -1,271 | 21,026 |
Net change in unrealized loss on derivatives | 10,993 | -434 | -3,235 |
Minimum pension liability adjustment | 5,857 | -1,289 | -1,062 |
Other comprehensive income (loss), net of tax | -15,015 | -2,994 | 16,729 |
Comprehensive income | $157,060 | $44,427 | $53,300 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Preferred Stock | Common Stock | Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interests |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2010 | $76,055 | $130,458 | $404,167 | $63,308 | ($517,316) | ($14,565) | $10,003 |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 36,571 | ' | ' | ' | 36,571 | ' | ' |
Other comprehensive income (loss) | 16,729 | ' | ' | ' | ' | 16,729 | ' |
Preferred stock dividends and accretion | -969 | 204 | ' | ' | -1,173 | ' | ' |
5,620,117 shares of common stock issued in exchange for preferred stock and accrued unpaid dividends | 10,609 | -130,662 | 56,201 | ' | 85,070 | ' | ' |
34,599,585 shares of common stock issued under common stock offerings and stock plans, net of costs | 324,155 | ' | 324,155 | ' | ' | ' | ' |
193 net shares of common stock sold by directors' deferred compensation plan | 16 | ' | 16 | ' | ' | ' | ' |
Share-based compensation | 3,277 | ' | ' | 3,277 | ' | ' | ' |
Non-controlling interests | -23 | ' | ' | ' | ' | ' | -23 |
Balance at Dec. 31, 2011 | 466,420 | ' | 784,539 | 66,585 | -396,848 | 2,164 | 9,980 |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 47,421 | ' | ' | ' | 47,421 | ' | ' |
Other comprehensive income (loss) | -2,994 | ' | ' | ' | ' | -2,994 | ' |
1,782 and 4,291 net shares of common stock purchased by directors' deferred compensation plan, for the year ended December 31, 2013 and 2012, respectively | -27 | ' | -27 | ' | ' | ' | ' |
Share-based compensation | 3,982 | ' | ' | 3,982 | ' | ' | ' |
Non-controlling interests | -23 | ' | ' | ' | ' | ' | -23 |
Balance at Dec. 31, 2012 | 514,779 | ' | 784,512 | 70,567 | -349,427 | -830 | 9,957 |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 172,075 | ' | ' | ' | 172,075 | ' | ' |
Other comprehensive income (loss) | -15,015 | ' | ' | ' | ' | -15,015 | ' |
Cash dividends ($0.16 per share) | -6,735 | ' | ' | ' | -6,735 | ' | ' |
1,782 and 4,291 net shares of common stock purchased by directors' deferred compensation plan, for the year ended December 31, 2013 and 2012, respectively | -39 | ' | -39 | ' | ' | ' | ' |
Share-based compensation | 5,005 | ' | 74 | 4,931 | ' | ' | ' |
Non-controlling interests | -9,896 | ' | ' | ' | ' | ' | -9,896 |
Balance at Dec. 31, 2013 | $660,174 | ' | $784,547 | $75,498 | ($184,087) | ($15,845) | $61 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ' | ' | ' |
Common stock issued in exchange for preferred stock and accrued and unpaid dividends (in shares) | ' | ' | 5,620,117 |
Common stock issued under common stock offerings and stock plans (in shares) | ' | ' | 34,599,585 |
Common stock purchased (sold) by directors' deferred compensation plan (in shares) | 1,782 | 4,291 | -193 |
Cash dividends (in dollars per share) | $0.16 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $172,075 | $47,421 | $36,571 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision (credit) for loan and lease losses | -11,310 | -18,885 | -40,690 |
Depreciation and amortization | 6,007 | 6,351 | 6,724 |
Amortization and impairment of other intangible assets | 7,418 | 10,179 | 7,033 |
Write down of assets | ' | 2,586 | 4,624 |
Write down of other real estate, net of gain on sale | -8,011 | -358 | 528 |
Net amortization of investment securities | 13,283 | 15,670 | 9,447 |
Share-based compensation | 4,931 | 3,982 | 3,277 |
Net gain on sale of investment securities | -482 | -789 | -1,306 |
Net gain on sales of residential loans | -9,986 | -17,095 | -8,050 |
Proceeds from sales of loans held for sale | 654,005 | 969,089 | 667,052 |
Originations of loans held for sale | -618,106 | -952,402 | -662,429 |
Equity in earnings of unconsolidated subsidiaries | -790 | -574 | -458 |
Increase in cash surrender value of bank-owned life insurance | -2,729 | -4,934 | -2,337 |
Deferred income taxes | -112,356 | ' | ' |
Premium paid on repurchases of preferred stock | 1,895 | ' | ' |
Net change in other assets and liabilities | -11,313 | -20,853 | 3,137 |
Net cash provided by operating activities | 84,531 | 39,388 | 23,123 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from maturities of and calls on investment securities available for sale | 448,453 | 437,471 | 401,556 |
Proceeds from sales of investment securities available for sale | 271,931 | 130,076 | 137,980 |
Purchases of investment securities available for sale | -753,496 | -627,356 | -1,317,112 |
Proceeds from maturities of and calls on investment securities held to maturity | 13,500 | 2,487 | 1,881 |
Purchases of investment securities held to maturity | -4,595 | -163,498 | ' |
Net loan principal repayments (loan originations) | -357,853 | -152,350 | 19,435 |
Purchases of loan portfolios | -85,110 | ' | ' |
Proceeds from sales of loans originated for investment | 10,679 | 10,340 | 26,721 |
Proceeds from sales of other real estate | 17,892 | 56,915 | 42,362 |
Proceeds from bank-owned life insurance | 536 | 1,997 | 158 |
Purchases of premises and equipment | -6,287 | -3,696 | -747 |
Distributions from unconsolidated subsidiaries | 9,615 | 467 | 522 |
Contributions to unconsolidated subsidiaries | -9,050 | ' | ' |
Proceeds from redemptiom of FHLB stock | 1,735 | 869 | ' |
Net cash used in investing activities | -442,050 | -306,278 | -687,244 |
Cash flows from financing activities: | ' | ' | ' |
Net increase in deposits | 255,401 | 237,244 | 310,581 |
Repayments of long-term debt | -15,482 | -50,017 | -301,219 |
Net increase (decrease) in short-term borrowings | 8,015 | -34 | -202,446 |
Cash dividends paid on common stock | -6,735 | ' | ' |
Net proceeds from issuance of common stock and stock option exercises | 74 | ' | 323,538 |
Repurchases of preferred stock of subsidiaries | -11,781 | ' | ' |
Net cash provided by financing activities | 229,492 | 187,193 | 130,454 |
Net decrease in cash and cash equivalents | -128,027 | -79,697 | -533,667 |
Cash and cash equivalents: | ' | ' | ' |
At beginning of year | 177,375 | 257,072 | 790,739 |
At end of year | 49,348 | 177,375 | 257,072 |
Cash paid during the year for: | ' | ' | ' |
Interest | 19,260 | 5,622 | 18,138 |
Income taxes | 5 | 5 | 86 |
Cash received during the year for: | ' | ' | ' |
Income taxes | ' | 430 | 55 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' | ' |
Net change in common stock held by directors' deferred compensation plan | 39 | 27 | -16 |
Net reclassification of loans to other real estate | 4,358 | 4,846 | 47,064 |
Net reclassification of loans held for sale to other real estate | ' | 716 | ' |
Net transfer of loans to loans held for sale | ' | 1,487 | 13,639 |
Net transfer of investment securities available for sale to held to maturity | 101,669 | ' | ' |
Dividends accrued on preferred stock | ' | ' | 969 |
Accretion of preferred stock discount | ' | ' | 204 |
Preferred stock and accrued unpaid dividends converted to common stock | ' | ' | 142,988 |
Common stock issued in exchange for preferred stock and accrued unpaid dividends | ' | ' | $56,201 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | |
Central Pacific Financial Corp. is a bank holding company. Our principal operating subsidiary, Central Pacific Bank, is a full-service commercial bank with 35 branches and 112 ATMs located throughout the state of Hawaii. The bank engages in a broad range of lending activities including originating commercial loans, commercial and residential mortgage loans and consumer loans. The bank also offers a variety of deposit products and services. These include personal and business checking and savings accounts, money market accounts and time certificates of deposit. Other products and services include debit cards, internet banking, cash management services, traveler’s checks, safe deposit boxes, international banking services, night depository facilities and wire transfers. Wealth management products and services include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation and planning services. | |
When we refer to “the Company,” “we,” “us” or “our,” we mean Central Pacific Financial Corp. & Subsidiaries (consolidated). When we refer to “Central Pacific Financial Corp.” or to the holding company, we are referring to the parent company on a standalone basis. When we refer to “our bank” or “the bank,” we mean “Central Pacific Bank.” | |
The banking business depends on rate differentials, the difference between the interest rates paid on deposits and other borrowings and the interest rates received on loans extended to customers and investment securities held in our portfolio. These rates are highly sensitive to many factors that are beyond our control. Accordingly, the earnings and growth of the Company are subject to the influence of domestic and foreign economic conditions, including inflation, recession and unemployment. | |
We have the following three reportable segments: (1) Banking Operations, (2) Treasury and (3) All Others. The Banking Operations segment includes construction and commercial real estate lending, commercial lending, residential mortgage lending and servicing, consumer lending, trust services, retail brokerage services, and our retail branch offices, which provide a full range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company’s investment securities portfolio and wholesale funding activities. The All Others segment consists of all activities not captured by the Banking Operations and Treasury segments described above and includes activities such as electronic banking, data processing and management of bank owned properties. For further information, see Note 25. | |
With respect to our capital raising efforts, we completed a number of key milestones since 2011. We completed our previously announced capital raise of $325 million through a private placement offering (the “Private Placement”) in February 2011. | |
Concurrently with the Private Placement, in February 2011, the U.S. Treasury (the “Treasury”) agreed to exchange our Fixed Rate Cumulative Perpetual Preferred Stock (the “TARP Preferred Stock”) purchased by the Treasury under the Troubled Assets Relief Program (“TARP”) and accrued and unpaid dividends thereon for approximately $56.2 million in our common stock (the “TARP Exchange”). The Company and Treasury also agreed to amend the ten-year warrant to purchase shares of common stock (the “TARP Warrant”) issued to the Treasury in connection with the Treasury’s investment in the TARP Preferred Stock to, among other things, reduce the exercise price to the same per share purchase price in the Private Placement. | |
In anticipation of the completion of the Private Placement and the TARP Exchange, we effected a 1-for-20 reverse split on February 2, 2011 (the “Reverse Stock Split”). The Reverse Stock Split was previously approved by our shareholders at the shareholder meeting on May 24, 2010. No fractional shares of common stock were issued as a result of the Reverse Stock Split. For each holder of common stock, the number of shares held prior to the effectiveness of the Reverse Stock Split were divided by twenty and, if the resulting number was not a whole number, then such number was rounded up to the next nearest whole number. Except as otherwise specified herein, share and per share amounts for historical periods have been restated to give the effect to the Reverse Stock Split. | |
As part of the recapitalization, we also completed a rights offering ( the “Rights Offering”) whereby shareholders of record as of the close of business on February 17, 2011 received transferable rights to purchase newly issued shares of our common stock at a purchase price of $10 per share. The rights provided for the purchase of up to $20.0 million of the Company’s common stock by holders of such rights. The Rights Offering was fully subscribed and completed in May 2011. | |
On June 22, 2011, the Treasury completed a public underwritten offering of 2,850,000 shares of our common stock it received in the TARP Exchange. On April 4, 2012, the Treasury completed another public underwritten offering of its remaining 2,770,117 shares of our common stock it received in the TARP Exchange. The Company did not receive any proceeds from either of these offerings. In June 2013, the Treasury held a private auction to sell its warrant positions in several financial institutions which included the Company’s warrant to purchase up to 79,288 shares of our common shares at a purchase price of $10 per share. On June 6, 2013, we were notified that we were the winning bidder of the warrant at our bid of $752 thousand. After the completion of these transactions, the Treasury no longer holds any outstanding shares of our common stock, or any warrants to purchase our common stock they received in connection with our participation in the TARP. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
The bank acquired Hawaii HomeLoans (“HHL”), which is now known as Central Pacific HomeLoans (“CPHL”), on August 17, 2005. Our former subsidiary CPHL was merged into the bank in February 2012. The results of operations of CPHL are included in the consolidated financial statements from the acquisition date. | |
On July 1, 2008, we acquired the assets of Pacific Islands Financial Management LLC (“PIFM”). The assets of PIFM were included in the consolidated financial statements from the acquisition date, however, in 2012, we determined that the intangible assets of PIFM were fully impaired, and accordingly, impairment charges were recorded. | |
Central Pacific Bank has two wholly-owned subsidiaries: CPB Real Estate, Inc. and Citibank Properties, Inc. Both are real estate investment trusts that are in the process of dissolution. Central Pacific Bank had another wholly-owned subsidiary, CB Technology, Inc. that was dissolved in February 2013. | |
We have a 50% ownership interest in the following mortgage brokerage companies: Pacific Access Mortgage, LLC, Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC. These investments are accounted for using the equity method and are included in investment in unconsolidated subsidiaries. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. | |
Our investments in unconsolidated subsidiaries accounted for under the equity and cost methods were $0.6 million and $8.5 million, respectively, at December 31, 2013 and $0.7 million and $10.2 million, respectively, at December 31, 2012. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. | |
The Company sponsors the Central Pacific Bank Foundation which is not consolidated in the Company’s financial statements. | |
Use of Estimates | |
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that reflect the reported amounts of assets and liabilities and disclosures of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance and provision for loan and lease losses, reserves for unfunded loan commitments, residential mortgage repurchase reserves and deferred income tax assets and income tax expense, as well as the valuation of investment securities, other intangible assets and the related amortization thereon, pension liability and the fair value of certain financial instruments. | |
Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, we consider cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, federal funds sold and all highly liquid investments with maturities of three months or less at the time of purchase. | |
Investment Securities | |
Investments in debt securities and marketable equity securities are designated as trading, available for sale, or held to maturity. Securities are designated as held to maturity only if we have the positive intent and ability to hold these securities to maturity. Held to maturity debt securities are reported at amortized cost. Trading securities are reported at fair value, with changes in fair value included in earnings. Available-for-sale securities are reported at fair value with net unrealized gains and losses, net of taxes, included in accumulated other comprehensive income (loss) (“AOCI”). | |
We use current quotations, where available, to estimate the fair value of investment securities. Where current quotations are not available, we estimate fair value based on the present value of expected future cash flows. We consider the facts of each security including the nature of the security, the amount and duration of the loss, credit quality of the issuer, the expectations for that security’s performance and our intent and ability to hold the security until recovery. Declines in the value of debt securities and marketable equity securities that are considered other than temporary are recorded in other operating income. Realized gains and losses on the sale of investment securities are recorded in other operating income using the specific identification method. | |
We amortize premiums and accrete discounts associated with investment securities using the interest method over the life of the respective security instrument. | |
As a member of the Federal Home Loan Bank of Seattle (“FHLB”), the bank is required to obtain and hold a specific number of shares of capital stock of the FHLB based on the amount of outstanding FHLB advances. The securities are reported at cost and are presented separately in the consolidated balance sheets. | |
Loans Held for Sale | |
Loans held for sale consists of the following two types: (1) Hawaii residential mortgage loans that are originated with the intent to sell them in the secondary market and (2) non-residential mortgage loans in both Hawaii and the U.S. Mainland that were originated with the intent to be held in our portfolio but were subsequently transferred to the held for sale category. Hawaii residential mortgage loans classified as held for sale are carried at the lower of cost or fair value on an aggregate basis, while the non-residential Hawaii and U.S. Mainland loans are recorded at the lower of cost or fair value on an individual basis. Net fees and costs associated with originating and acquiring the Hawaii residential mortgage loans held for sale are deferred and included in the basis for determining the gain or loss on sales of loans held for sale. We report the fair values of the non-residential mortgage loans classified as held for sale net of applicable selling costs on our consolidated balance sheets. | |
Loans originated with the intent to be held in our portfolio are subsequently transferred to held for sale when our intent to hold for the foreseeable future has changed. At the time of a loan’s transfer to the held for sale account, the loan is recorded at the lower of cost or fair value. Any reduction in the loan’s value is reflected as a write-down of the recorded investment resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. | |
In subsequent periods, if the fair value of a loan classified as held for sale is less than its cost basis, a valuation adjustment is recognized in our consolidated statement of income in other operating expense and the carrying value of the loan is adjusted accordingly. The valuation adjustment may be recovered in the event that the fair value increases, which is also recognized in our consolidated statement of income in other operating expense. | |
The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. Collateral values are determined based on appraisals received from qualified valuation professionals and are obtained periodically or when indicators that property values may be impaired are present. | |
We sell residential mortgage loans under industry standard contractual provisions that include various representations and warranties, which typically cover ownership of the loan, compliance with loan criteria set forth in the applicable agreement, validity of the lien securing the loan, and other similar matters. We may be required to repurchase certain loans sold with identified defects, indemnify the investor, or reimburse the investor for any credit losses incurred. Our repurchase risk generally relates to early payment defaults and borrower fraud. We establish residential mortgage repurchase reserves to reflect this risk based on our estimate of losses after considering a combination of factors, including our estimate of future repurchase activity and our projection of expected credit losses resulting from repurchased loans. At December 31, 2013 and 2012, this reserve totaled $2.9 million and $3.6 million, respectively, and is included in other liabilities on our consolidated balance sheets. | |
Loans | |
Loans are stated at the principal amount outstanding, net of unearned income. Unearned income represents net deferred loan fees that are recognized over the life of the related loan as an adjustment to yield. Net deferred loan fees are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Unamortized fees on loans paid in full are recognized as a component of interest income. | |
Interest income on loans is recognized on an accrual basis. For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are placed on nonaccrual status when interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectibility of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current and full payment of principal and interest is expected. | |
Leases | |
We provide equipment financing to our customers through a variety of lease arrangements. Direct financing leases are carried at the aggregate of lease payments receivable plus estimated residual value of the leased property, less unearned income. Unearned income on direct financing leases is amortized over the lease terms by methods that approximate the interest method. Our lease portfolio has declined over the last four years and had an outstanding balance of $6.2 million and $10.5 million at December 31, 2013 and 2012, respectively. | |
Allowance for Loan and Lease Losses | |
The allowance for loan and lease losses (the “Allowance”) is established through provisions for loan and lease losses (the “Provision”) charged against income. Our policy is to charge a loan off in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the Allowance as recoveries, and finally to unaccrued interest. | |
The Allowance is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Our methodology for determining the adequacy of the Allowance takes into account many factors, including the level and trend of nonperforming and potential problem loans, net charge-off experience, current repayment by borrowers, fair value of collateral securing specific loans, changes in lending and underwriting standards and general economic factors, nationally and in the markets in which we operate. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review our Allowance. Such agencies may require that we recognize additions to the Allowance based on their judgments about information available to them at the time of their examination. | |
We consider current information and events regarding our borrowers’ ability to repay their obligations and treat a loan as impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if the loan is considered to be collateral dependent, based on the fair value of the collateral. Impairment losses are included in the Allowance through a charge to the Provision. | |
For smaller-balance homogeneous loans (primarily residential real estate and consumer loans), the Allowance is based upon management’s evaluation of the quality, character and inherent risks in the loan portfolio, current and projected economic conditions, and past loan loss experience. | |
Delinquent consumer loans and residential mortgage loans are charged off or written down within 90 days, unless determined to be adequately collateralized or in imminent process of collection. Delinquent commercial loans and commercial mortgage loans are charged off or written down when management determines that collectibility is doubtful and the principal amount of the loans cannot be repaid from proceeds of collateral liquidation. | |
Our process for determining the reserve for unfunded loan commitments is consistent with our process for determining the Allowance and is adjusted for estimated loan funding probabilities. The reserve for unfunded loan commitments is recorded separately through a valuation allowance included in other liabilities. Credit losses for off-balance sheet credit exposures are deducted from the allowance for credit losses on off-balance sheet credit exposures in the period in which the liability is settled. The allowance for credit losses on off-balance sheet credit losses is established by a charge to other operating expense. The reserve for unfunded loan commitments totaled $2.1 million and $5.6 million at December 31, 2013 and 2012, respectively. | |
Premises and Equipment | |
Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are included in other operating expense and are computed using the straight-line method over the shorter of the estimated useful lives of the assets or the applicable leases. Useful lives generally range from five to thirty-nine years for premises and improvements, and one to seven years for equipment. Major improvements and betterments are capitalized, while recurring maintenance and repairs are charged to operating expense. Net gains or losses on dispositions of premises and equipment are included in other operating expense. | |
Other Intangible Assets | |
Other intangible assets include a core deposit premium and mortgage servicing rights. | |
Our core deposit premium is being amortized over 14 years which approximates the estimated life of the purchased deposits. The carrying value of our core deposit premium is periodically evaluated to estimate the remaining periods of benefit. If these periods of benefit are determined to be less than the remaining amortizable life, an adjustment to reflect such shorter life will be made. | |
We utilize the amortization method to measure our mortgage servicing rights. Under the amortization method, we amortize our mortgage servicing rights in proportion to and over the period of net servicing income. Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans. Amortization of the servicing rights is reported as amortization of other intangible assets in our consolidated statements of income. Ancillary income is recorded in other income. Mortgage servicing rights are recorded when loans are sold to third-parties with servicing of those loans retained and we classify our entire mortgage servicing rights into one class. | |
Initial fair value of the servicing right is calculated by a discounted cash flow model prepared by a third party service provider based on market value assumptions at the time of origination and we assess the servicing right for impairment using current market value assumptions at each reporting period. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service and ancillary income. Variations in our assumptions could materially affect the estimated fair values. Changes to our assumptions are made when current trends and market data indicate that new trends have developed. Current market value assumptions based on loan product types (fixed rate, adjustable rate and balloon loans) include average discount rates and national prepayment speeds. Many of these assumptions are subjective and require a high level of management judgment. Our mortgage servicing rights portfolio and valuation assumptions are periodically reviewed by management. | |
Prepayment speeds may be affected by economic factors such as home price appreciation, market interest rates, the availability of other credit products to our borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. | |
We perform an impairment assessment of our other intangible assets whenever events or changes in circumstance indicate that the carrying value of those assets may not be recoverable. Our impairment assessments involve, among other valuation methods, the estimation of future cash flows and other methods of determining fair value. Estimating future cash flows and determining fair values is subject to judgments and often involves the use of significant estimates and assumptions. The variability of the factors we use to perform our impairment tests depend on a number of conditions, including uncertainty about future events and cash flows. All such factors were interdependent and, therefore, do not change in isolation. Accordingly, our accounting estimates may materially change from period to period due to changing market factors. | |
During the second quarter of 2012, we evaluated the recoverability of the intangible assets related to our customer relationships and non-compete agreements. Upon completion of this review, we determined that the intangible assets related to our customer relationships and non-compete agreements were both fully impaired, and thus, we recorded impairment charges to other operating expense totaling $0.9 million during the second quarter of 2012. | |
Other Real Estate | |
Other real estate is composed of properties acquired through foreclosure proceedings and is initially recorded at fair value less estimated costs to sell the property, thereby establishing the new cost basis of other real estate. Losses arising at the time of acquisition of such properties are charged against the Allowance. Subsequent to acquisition, such properties are carried at the lower of cost or fair value less estimated selling expenses, determined on an individual asset basis. Any deficiency resulting from the excess of cost over fair value less estimated selling expenses is recognized as a valuation allowance. Any subsequent increase in fair value up to its cost basis is recorded as a reduction of the valuation allowance. Increases or decreases in the valuation allowance are included in other operating expense. Net gains or losses recognized on the sale of these properties are included in other operating income. | |
Non-Controlling Interest | |
Non-controlling interest at December 31, 2013 is comprised of preferred stock issued to third parties by the Company’s subsidiary, CPB Real Estate, Inc. In the third quarter of 2013, CPB Real Estate, Inc. and Citibank Properties, Inc. repurchased $7.6 million and $2.1 million, respectively, of its preferred stock issued to third parties at a premium of $1.8 million and $0.2 million, respectively. The premiums on the repurchase of the preferred stock were recorded in other operating expense. | |
Share Based Compensation | |
Share-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee’s requisite service period. We use the Black-Scholes option-pricing model to determine the fair-value of stock-based awards and we recognize compensation expense for all share-based payment awards on a straight-line basis over their respective vesting period. See Note 15 for further discussion of our stock-based compensation. | |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the estimated future tax effects attributable to temporary differences and carryforwards. A valuation allowance may be required if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining whether a valuation allowance is necessary, we consider the level of taxable income in prior years, to the extent that carrybacks are permitted under current tax laws, as well as estimates of future taxable income and tax planning strategies that could be implemented to accelerate taxable income, if necessary. If our estimates of future taxable income were materially overstated or if our assumptions regarding the tax consequences of tax planning strategies were inaccurate, some or all of our deferred tax assets may not be realized, which would result in a charge to earnings. Our continuing practice is to recognize interest and penalties related to income tax matters in interest expense and other expense, respectively. | |
We establish income tax contingency reserves for potential tax liabilities related to uncertain tax positions. Tax benefits are recognized when we determine that it is more likely than not that such benefits will be realized. Where uncertainty exists due to the complexity of income tax statutes, and where the potential tax amounts are significant, we generally seek independent tax opinions to support our positions. If our evaluation of the likelihood of the realization of benefits is inaccurate, we could incur additional income tax and interest expense that would adversely impact earnings, or we could receive tax benefits greater than anticipated which would positively impact earnings. | |
Earnings per Share | |
Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding unvested restricted stock. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, increased by the dilutive effect of stock options and stock awards, less shares held in a Rabbi trust pursuant to a deferred compensation plan for directors. | |
Forward Foreign Exchange Contracts | |
We are periodically a party to a limited amount of forward foreign exchange contracts to satisfy customer requirements for foreign currencies. These contracts are not utilized for trading purposes and are carried at market value, with realized gains and losses included in fees on foreign exchange. | |
Derivatives and Hedging Activities | |
We recognize all derivatives on the balance sheet at fair value. On the date that we enter into a derivative contract, we designate the derivative as (1) a hedge of the fair value of an identified asset or liability (“fair value hedge”), (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to an identified asset or liability (“cash flow hedge”) or (3) a transaction not qualifying for hedge accounting (“free standing derivative”). For a fair value hedge, changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability, attributable to the hedged risk, are recorded in current period net income in the same financial statement category as the hedged item. For a cash flow hedge, changes in the fair value of the derivative, to the extent that it is effective, is recorded in other comprehensive income (loss) (“OCI”). These changes in fair value are subsequently reclassified to net income in the same period(s) that the hedged transaction affects net income in the same financial statement category as the hedged item. For free standing derivatives, changes in fair values are reported in current period other operating income. | |
Recent Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, “Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 expands the disclosure requirements for certain financial instruments and derivatives that are subject to enforceable master netting agreements or similar arrangements. The disclosures are required regardless of whether the instruments have been offset (or netted) in the balance sheet. Under ASU 2011-11, companies must describe the nature of offsetting arrangements and provide quantitative information about those agreements, including the gross and net amounts of financial instruments that are recognized in the balance sheet. In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” which clarifies the scope of ASU 2011-11 by limiting the disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent they are subject to an enforceable master netting or similar arrangement. The provisions of ASU 2011-11 and ASU 2013-01 were effective for the Company’s reporting period beginning on January 1, 2013, with retrospective application required. We adopted ASU 2011-11 and ASU 2013-01 effective January 1, 2013 and the adoption did not have a material impact on our consolidated financial statements. | |
In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” The provisions of ASU 2012-02 permit an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative impairment test, as is currently required by GAAP. ASU 2012-02 is effective for annual and interim impairment tests performed for the Company’s reporting period beginning on January 1, 2013. We adopted this ASU effective January 1, 2013. As the Company does not have any indefinite-lived assets, the adoption of this guidance did not have a material impact on our consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, “Amendments to Topic 220, Other Comprehensive Income.” The amendments in ASU 2013-02 supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011) for all public and private organizations. The amendments would require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. ASU 2013-02 is effective for the Company’s reporting period beginning on January 1, 2013. We adopted this ASU effective January 1, 2013. As the Company provided these required disclosures in the notes to the consolidated financial statements, the adoption of this guidance had no impact on the Company’s consolidated balance sheets and statements of income. See Note 20 for the disclosures required by ASU 2013-02. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended |
Dec. 31, 2013 | |
REGULATORY MATTERS | ' |
REGULATORY MATTERS | ' |
2. REGULATORY MATTERS | |
In May 2011, the regulatory Consent Order (the “Consent Order”) that the bank entered into with the Federal Deposit Insurance Corporation (“FDIC”) and the State of Hawaii Division of Financial Institutions (“DFI”) on December 9, 2009 was lifted. In place of the Consent Order, the Board of Directors of the bank entered into a Memorandum of Understanding (the “Bank MOU”) with the FDIC and DFI effective May 5, 2011. Since this time, we have worked closely with both the FDIC and DFI to satisfactorily resolve all outstanding issues contained in the Bank MOU, including but not limited to, maintaining an adequate allowance for loan and lease losses, improving our asset quality, reducing our classified assets, and ensuring that our capital levels exceeded the levels required by the Bank MOU. The bank received a letter from the FDIC and DFI dated October 26, 2012 advising the bank that the Bank MOU was lifted. | |
The Company entered into a Written Agreement (the “Written Agreement”) with the Federal Reserve Bank of San Francisco (“FRBSF”) and DFI on July 2, 2010, which superseded in its entirety the Memorandum of Understanding that the Company entered into on April 1, 2009 with the FRBSF and DFI. Among other matters, the Written Agreement provided that unless we received the consent of the FRBSF and DFI, we could not: (i) pay dividends; (ii) receive dividends or payments representing a reduction in capital from Central Pacific Bank; (iii) directly or through any non-bank subsidiaries make any payments on subordinated debentures or trust preferred securities; (iv) directly or through any non-bank subsidiaries incur, increase or guarantee any debt; or (v) purchase or redeem any shares of our stock. The Written Agreement also required that our Board of Directors fully utilize the Company’s financial and managerial resources to ensure that the bank complies with any supervisory action taken by the bank’s regulators. We were also required to submit to the FRBSF an acceptable capital plan cash flow projection. On February 12, 2013, the Written Agreement was terminated. | |
On October 9, 2012, the bank entered into a separate Memorandum of Understanding (the “Compliance MOU”) with the FDIC to improve the bank’s compliance management system (“CMS”). Under the Compliance MOU, we are required to, among other things, (i) improve the Board of Directors’ oversight of the bank’s CMS; (ii) ensure the establishment and implementation of the bank’s CMS is commensurate with the complexity of the bank’s operations; (iii) perform a full review of all compliance policy and procedures, then revise and adopt policy and procedures to ensure compliance with all consumer protection regulations; (iv) enhance the bank’s training program relating to consumer protection and fair lending regulations; (v) develop and implement an effective internal monitoring program to ensure compliance with all applicable laws and regulations; (vi) strengthen the compliance audit function to ensure that the compliance audits are appropriately and comprehensively scoped; (vii) develop and implement internal controls for the bank’s third-party payment processing activity; (viii) strengthen the Board of Directors and senior management’s oversight of third-party relationships and (ix) enhance the bank’s overdraft payment program. The bank believes it has already taken substantial steps to comply with the Compliance MOU. In addition to the steps taken to comply with the Compliance MOU, the bank received an “Outstanding” rating in a recently completed Community Reinvestment performance evaluation that measures how financial institutions support their communities in the areas of lending, investment and service. | |
We cannot assure you whether or when the Company and the bank will be in full compliance with the Compliance MOU or whether or when the Compliance MOU will be terminated. Even if terminated, we may still become subject to other agreements with regulators which restrict our activities or may also continue to impose capital ratios or other requirements on our business. The requirements and restrictions of the Compliance MOU are judicially enforceable and the Company or the bank’s failure to comply with such requirements and restrictions may subject the Company and the bank to additional regulatory restrictions including: the imposition of additional regulatory requirements or orders; limitations on our activities; the imposition of civil monetary penalties; and further directives which affect our business, including, in the most severe circumstances, termination of the bank’s deposit insurance or appointment of a conservator or receiver for the bank. |
RESERVE_REQUIREMENTS
RESERVE REQUIREMENTS | 12 Months Ended |
Dec. 31, 2013 | |
RESERVE REQUIREMENTS | ' |
RESERVE REQUIREMENTS | ' |
3. RESERVE REQUIREMENTS | |
The bank is required by the FRBSF to maintain reserves based on the amount of deposits held. The amount held as a reserve by our bank at December 31, 2013 and 2012 was $48.5 million and $57.4 million, respectively. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
4. INVESTMENT SECURITIES | ||||||||||||||||||||
A summary of our investment securities portfolio as of December 31, 2013 and 2012 is as follows: | ||||||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||||||
Amortized | unrealized | unrealized | fair | |||||||||||||||||
cost | gains | losses | value | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2013 | ||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | $ | 252,047 | $ | — | $ | (13,342 | ) | $ | 238,705 | |||||||||||
Available for Sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 191,158 | $ | 305 | $ | (12,106 | ) | $ | 179,357 | |||||||||||
Corporate securities | 157,337 | 1,878 | (1,120 | ) | 158,095 | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 936,144 | 7,085 | (15,603 | ) | 927,626 | |||||||||||||||
Non-agency collateralized mortgage obligations | 147,902 | 81 | (5,937 | ) | 142,046 | |||||||||||||||
Other | 755 | 120 | — | 875 | ||||||||||||||||
Total | $ | 1,433,296 | $ | 9,469 | $ | (34,766 | ) | $ | 1,407,999 | |||||||||||
2012 | ||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | $ | 161,848 | $ | 695 | $ | (15 | ) | $ | 162,528 | |||||||||||
Available for Sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
U.S. Government sponsored entities | $ | 278,198 | $ | 2,741 | $ | — | $ | 280,939 | ||||||||||||
States and political subdivisions | 184,274 | 2,831 | (1,194 | ) | 185,911 | |||||||||||||||
Corporate securities | 125,649 | 2,360 | (63 | ) | 127,946 | |||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | 925,018 | 17,548 | (1,523 | ) | 941,043 | |||||||||||||||
Other | 866 | 40 | — | 906 | ||||||||||||||||
Total | $ | 1,514,005 | $ | 25,520 | $ | (2,780 | ) | $ | 1,536,745 | |||||||||||
The amortized cost and estimated fair value of our investment securities at December 31, 2013 by contractual maturity are shown below. Actual maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Amortized | Estimated Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||
Mortgage-backed securities | $ | 252,047 | $ | 238,705 | ||||||||||||||||
Available for Sale | ||||||||||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 87,349 | 88,819 | ||||||||||||||||||
Due after five years through ten years | 134,337 | 131,223 | ||||||||||||||||||
Due after ten years | 126,809 | 117,410 | ||||||||||||||||||
Mortgage-backed securities | 1,084,046 | 1,069,672 | ||||||||||||||||||
Other | 755 | 875 | ||||||||||||||||||
Total | $ | 1,433,296 | $ | 1,407,999 | ||||||||||||||||
Proceeds from sales of investment securities available for sale were $271.9 million, $130.1 million, and $138.0 million in 2013, 2012 and 2011, respectively, resulting in gross realized gains of $3.9 million, $1.7 million, and $1.4 million in 2013, 2012 and 2011, respectively, and gross realized losses of $3.4 million, $0.9 million, and $0.1 million in 2013, 2012 and 2011, respectively. The specific identification method was used as the basis for determining the cost of all securities sold. | ||||||||||||||||||||
In the fourth quarter of 2013, we executed a bond swap where we sold $271.5 million in lower-yielding available-for-sale agency debentures and agency mortgage-backed securities and agency debentures with an average net yield of 1.87% and a weighted average life of 2.9 years and reallocated the proceeds in $242.5 million of higher-yielding agency mortgage-backed securities, non-agency commercial mortgage-backed securities and corporate bond securities with an average yield of 3.21% and a weighted average life of 7.4 years. The new securities were classified in the available-for-sale portfolio and a net gain of $0.5 million was realized on the transaction. | ||||||||||||||||||||
In the third quarter of 2012, we completed an investment securities portfolio repositioning to reduce net interest income volatility and enhance the potential for prospective earnings and an improved net interest margin. In connection with the repositioning, we sold $124.7 million in available for sale mortgage-backed securities with an average net yield of 0.60% and a weighted average life of 1.3 years and reinvested the proceeds in $133.2 million of investment securities with an average yield of 1.88% and a weighted average life of 5.3 years. The new securities were classified in the held to maturity portfolio and a net gain of $0.7 million was realized on the transaction. | ||||||||||||||||||||
Investment securities of $914.1 million and $905.5 million at December 31, 2013 and 2012, respectively, were pledged to secure public funds on deposit, securities sold under agreements to repurchase and other long-term and short-term borrowings. | ||||||||||||||||||||
There were a total of 321 and 118 securities in an unrealized loss position at December 31, 2013 and 2012, respectively. Provided below is a summary of investment securities which were in an unrealized loss position at December 31, 2013 and 2012: | ||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||
Description of Securities | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
At December 31, 2013: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 137,176 | $ | (8,985 | ) | $ | 32,747 | $ | (3,121 | ) | $ | 169,923 | $ | (12,106 | ) | |||||
Corporate securities | 75,368 | (1,120 | ) | — | — | 75,368 | (1,120 | ) | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 909,585 | (28,386 | ) | 4,848 | (559 | ) | 914,433 | (28,945 | ) | |||||||||||
Non-agency collateralized mortgage obligations | 129,991 | (5,937 | ) | — | — | 129,991 | (5,937 | ) | ||||||||||||
Total temporarily impaired securities | $ | 1,252,120 | $ | (44,428 | ) | $ | 37,595 | $ | (3,680 | ) | $ | 1,289,715 | $ | (48,108 | ) | |||||
At December 31, 2012: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 73,128 | $ | (1,194 | ) | $ | — | $ | — | $ | 73,128 | $ | (1,194 | ) | ||||||
Corporate securities | 23,205 | (63 | ) | — | — | 23,205 | (63 | ) | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 206,981 | (1,538 | ) | — | — | 206,981 | (1,538 | ) | ||||||||||||
Total temporarily impaired securities | $ | 303,314 | $ | (2,795 | ) | $ | — | $ | — | $ | 303,314 | $ | (2,795 | ) | ||||||
The unrealized losses on the Company’s investment securities were caused by market conditions. Investment securities are evaluated on a quarterly basis, and include evaluating the changes in the investment securities’ ratings issued by rating agencies and changes in the financial condition of the issuer, and for mortgage related securities, delinquency and loss information with respect to the underlying collateral, changes in levels of subordination for the Company’s particular position within the repayment structure, and remaining credit enhancement as compared to expected credit losses of the security. Substantially all of these investment securities continue to be investment grade rated by one or more major rating agencies. | ||||||||||||||||||||
Other-than-temporary impairment (“OTTI”) | ||||||||||||||||||||
Unrealized losses for all investment securities are reviewed to determine whether the losses are “other-than-temporary.” Investment securities are evaluated for OTTI on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value below amortized cost is other-than-temporary. In conducting this assessment, we evaluate a number of factors including, but not limited to: | ||||||||||||||||||||
· The length of time and the extent to which fair value has been less than the amortized cost basis; | ||||||||||||||||||||
· Adverse conditions specifically related to the security, an industry, or a geographic area; | ||||||||||||||||||||
· The historical and implied volatility of the fair value of the security; | ||||||||||||||||||||
· The payment structure of the debt security and the likelihood of the issuer being able to make payments; | ||||||||||||||||||||
· Failure of the issuer to make scheduled interest or principal payments; | ||||||||||||||||||||
· Any rating changes by a rating agency; and | ||||||||||||||||||||
· Recoveries or additional decline in fair value subsequent to the balance sheet date. | ||||||||||||||||||||
The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a general lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized for anticipated credit losses. | ||||||||||||||||||||
The declines in market value were primarily attributable to changes in interest rates and disruptions in the credit and financial markets. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not consider our investments to be other-than-temporarily impaired. |
LOANS_AND_LEASES
LOANS AND LEASES | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
LOANS AND LEASES | ' | ||||||||||||||||||||||
LOANS AND LEASES | ' | ||||||||||||||||||||||
5. LOANS AND LEASES | |||||||||||||||||||||||
Loans and leases, excluding loans held for sale, consisted of the following: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 398,365 | $ | 246,278 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 75,927 | 96,240 | |||||||||||||||||||||
Mortgage - residential | 1,237,841 | 1,035,273 | |||||||||||||||||||||
Mortgage - commercial | 601,114 | 673,506 | |||||||||||||||||||||
Consumer | 311,670 | 143,387 | |||||||||||||||||||||
Leases | 6,241 | 10,504 | |||||||||||||||||||||
2,631,158 | 2,205,188 | ||||||||||||||||||||||
Unearned income | (557 | ) | (1,244 | ) | |||||||||||||||||||
Total loans and leases | $ | 2,630,601 | $ | 2,203,944 | |||||||||||||||||||
During the year ended December 31, 2013, we transferred the collateral in 12 portfolio loans with a carrying value of $4.4 million to other real estate. We did not transfer any portfolio loans to the held-for-sale category and we did not sell any portfolio loans in 2013. In 2013, we purchased auto loan portfolios for $67.7 million, which included a $2.8 million premium over the $64.9 million outstanding balance. At the time of purchase, the auto loan portfolios had a weighted average remaining term of 72 months. In 2013, we also purchased participation interests in student loans totaling $17.4 million, which represented the outstanding balance at the time of purchases. At the time of purchases, the student loans had a weighted average remaining term of 122 months. | |||||||||||||||||||||||
During the year ended December 31, 2012, we transferred three portfolio loans, two of which were non-performing, with a carrying value of $1.5 million, to the held-for-sale category. In addition, we transferred 20 portfolio loans with a carrying value of $4.8 million to other real estate. No portfolio loans were sold or purchased during the year ended December 31, 2012. | |||||||||||||||||||||||
In the normal course of business, our bank makes loans to certain directors, executive officers and their affiliates under terms that management believes are consistent with its general lending policies. An analysis of the activity of such loans follows: | |||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Balance, beginning of year | $ | 1,501 | $ | 4,579 | |||||||||||||||||||
Additions | 17,487 | 2,348 | |||||||||||||||||||||
Repayments | (6,046 | ) | (5,426 | ) | |||||||||||||||||||
Balance, end of year | $ | 12,942 | $ | 1,501 | |||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||
The following table presents by class, the balance in the Allowance and the recorded investment in loans and leases based on the Company’s impairment method as of December 31, 2013 and 2012: | |||||||||||||||||||||||
Commercial, | Real estate | ||||||||||||||||||||||
financial & | Construction | Mortgage - | Mortgage - | Consumer | Leases | Total | |||||||||||||||||
agricultural | residential | commercial | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||
Ending balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 349 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 349 | |||||||||
Collectively evaluated for impairment | 12,847 | 2,774 | 28,441 | 26,778 | 6,576 | 55 | 77,471 | ||||||||||||||||
13,196 | 2,774 | 28,441 | 26,778 | 6,576 | 55 | 77,820 | |||||||||||||||||
Unallocated | 6,000 | ||||||||||||||||||||||
Total ending balance | $ | 13,196 | $ | 2,774 | $ | 28,441 | $ | 26,778 | $ | 6,576 | $ | 55 | $ | 83,820 | |||||||||
Loans and leases: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,939 | $ | 8,065 | $ | 36,779 | $ | 16,271 | $ | — | $ | — | $ | 65,054 | |||||||||
Collectively evaluated for impairment | 394,426 | 67,862 | 1,201,062 | 584,843 | 311,670 | 6,241 | 2,566,104 | ||||||||||||||||
398,365 | 75,927 | 1,237,841 | 601,114 | 311,670 | 6,241 | 2,631,158 | |||||||||||||||||
Unearned income | 351 | (311 | ) | 1,418 | (1,033 | ) | (982 | ) | — | (557 | ) | ||||||||||||
Total ending balance | $ | 398,716 | $ | 75,616 | $ | 1,239,259 | $ | 600,081 | $ | 310,688 | $ | 6,241 | $ | 2,630,601 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||
Ending balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 882 | $ | 1,582 | $ | 272 | $ | 270 | $ | — | $ | 5 | $ | 3,011 | |||||||||
Collectively evaluated for impairment | 4,105 | 2,928 | 29,638 | 48,230 | 2,421 | 80 | 87,402 | ||||||||||||||||
4,987 | 4,510 | 29,910 | 48,500 | 2,421 | 85 | 90,413 | |||||||||||||||||
Unallocated | 6,000 | ||||||||||||||||||||||
Total ending balance | $ | 4,987 | $ | 4,510 | $ | 29,910 | $ | 48,500 | $ | 2,421 | $ | 85 | $ | 96,413 | |||||||||
Loans and leases: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,957 | $ | 48,264 | $ | 42,865 | $ | 15,911 | $ | — | $ | 95 | $ | 111,092 | |||||||||
Collectively evaluated for impairment | 242,321 | 47,976 | 992,408 | 657,595 | 143,387 | 10,409 | 2,094,096 | ||||||||||||||||
246,278 | 96,240 | 1,035,273 | 673,506 | 143,387 | 10,504 | 2,205,188 | |||||||||||||||||
Unearned income | (60 | ) | (46 | ) | 124 | (1,258 | ) | (4 | ) | — | (1,244 | ) | |||||||||||
Total ending balance | $ | 246,218 | $ | 96,194 | $ | 1,035,397 | $ | 672,248 | $ | 143,383 | $ | 10,504 | $ | 2,203,944 | |||||||||
The following table presents by class, impaired loans as of December 31, 2013 and 2012: | |||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance | |||||||||||||||||||||
Balance | Investment | Allocated | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 1,069 | $ | 1,040 | $ | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 14,451 | 8,065 | — | ||||||||||||||||||||
Mortgage - residential | 41,117 | 36,779 | — | ||||||||||||||||||||
Mortgage - commercial | 22,353 | 16,271 | — | ||||||||||||||||||||
Total impaired loans with no related allowance recorded | 78,990 | 62,155 | — | ||||||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | 4,367 | 2,899 | 349 | ||||||||||||||||||||
Total impaired loans with an allowance recorded | 4,367 | 2,899 | 349 | ||||||||||||||||||||
Total | $ | 83,357 | $ | 65,054 | $ | 349 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 1,225 | $ | 526 | $ | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 52,352 | 36,664 | — | ||||||||||||||||||||
Mortgage - residential | 47,364 | 41,894 | — | ||||||||||||||||||||
Mortgage - commercial | 13,616 | 13,211 | — | ||||||||||||||||||||
Total impaired loans with no related allowance recorded | 114,557 | 92,295 | — | ||||||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | 4,807 | 3,431 | 882 | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 13,678 | 11,600 | 1,582 | ||||||||||||||||||||
Mortgage - residential | 1,935 | 971 | 272 | ||||||||||||||||||||
Mortgage - commercial | 3,939 | 2,700 | 270 | ||||||||||||||||||||
Leases | 95 | 95 | 5 | ||||||||||||||||||||
Total impaired loans with an allowance recorded | 24,454 | 18,797 | 3,011 | ||||||||||||||||||||
Total | $ | 139,011 | $ | 111,092 | $ | 3,011 | |||||||||||||||||
The following table presents by class, the average recorded investment and interest income recognized on impaired loans as of December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||
Average | Interest | ||||||||||||||||||||||
Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 4,138 | $ | 24 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 24,545 | 1,442 | |||||||||||||||||||||
Mortgage - residential | 38,378 | 586 | |||||||||||||||||||||
Mortgage - commercial | 21,107 | 833 | |||||||||||||||||||||
Leases | 33 | — | |||||||||||||||||||||
Total | $ | 88,201 | $ | 2,885 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 3,486 | $ | 39 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 56,762 | 771 | |||||||||||||||||||||
Mortgage - residential | 47,240 | 308 | |||||||||||||||||||||
Mortgage - commercial | 18,852 | 506 | |||||||||||||||||||||
Leases | 133 | — | |||||||||||||||||||||
Total | $ | 126,473 | $ | 1,624 | |||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 549 | $ | — | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 115,612 | 772 | |||||||||||||||||||||
Mortgage - residential | 58,262 | 616 | |||||||||||||||||||||
Mortgage - commercial | 19,116 | 469 | |||||||||||||||||||||
Total | $ | 193,539 | $ | 1,857 | |||||||||||||||||||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | |||||||||||||||||||||||
For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following table presents by class, the aging of the recorded investment in past due loans and leases as of December 31, 2013 and 2012: | |||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Accruing | Nonaccrual | Total | Loans and | Total | |||||||||||||||||
Past Due | Past Due | Loans Greater | Loans | Past Due | Leases Not | ||||||||||||||||||
than 90 Days | Past Due | ||||||||||||||||||||||
Past Due | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 50 | $ | — | $ | — | $ | 3,533 | $ | 3,583 | $ | 395,133 | $ | 398,716 | |||||||||
Real estate: | |||||||||||||||||||||||
Construction | — | 120 | — | 4,015 | 4,135 | 71,481 | 75,616 | ||||||||||||||||
Mortgage - residential | 3,898 | 1,885 | — | 20,271 | 26,054 | 1,213,205 | 1,239,259 | ||||||||||||||||
Mortgage - commercial | 544 | — | — | 13,769 | 14,313 | 585,768 | 600,081 | ||||||||||||||||
Consumer | 577 | 92 | — | — | 669 | 310,019 | 310,688 | ||||||||||||||||
Leases | — | — | 15 | — | 15 | 6,226 | 6,241 | ||||||||||||||||
Total | $ | 5,069 | $ | 2,097 | $ | 15 | $ | 41,588 | $ | 48,769 | $ | 2,581,832 | $ | 2,630,601 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 123 | $ | 139 | $ | — | $ | 3,510 | $ | 3,772 | $ | 242,446 | $ | 246,218 | |||||||||
Real estate: | |||||||||||||||||||||||
Construction | 124 | — | — | 38,742 | 38,866 | 57,328 | 96,194 | ||||||||||||||||
Mortgage - residential | 8,330 | 590 | 387 | 27,499 | 36,806 | 998,591 | 1,035,397 | ||||||||||||||||
Mortgage - commercial | 219 | — | — | 9,487 | 9,706 | 662,542 | 672,248 | ||||||||||||||||
Consumer | 249 | 169 | 116 | — | 534 | 142,849 | 143,383 | ||||||||||||||||
Leases | — | — | — | 94 | 94 | 10,410 | 10,504 | ||||||||||||||||
Total | $ | 9,045 | $ | 898 | $ | 503 | $ | 79,332 | $ | 89,778 | $ | 2,114,166 | $ | 2,203,944 | |||||||||
Interest income totaling $0.4 million, $0.7 million, and $0.8 million was recognized on nonaccrual loans, including loans held for sale, in 2013, 2012 and 2011, respectively. Additional interest income of $4.9 million, $10.1 million, and $14.2 million would have been recognized in 2013, 2012 and 2011, respectively, had these loans been accruing interest throughout those periods. Additionally, interest income of $2.5 million, $0.8 million, and $0.7 million was collected and recognized on charged-off loans in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||
Modifications | |||||||||||||||||||||||
TDRs included in nonperforming assets at December 31, 2013 consisted of 42 Hawaii residential mortgage loans with a combined principal balance of $12.5 million, one U.S. Mainland commercial mortgage loan with a principal balance of $9.0 million, three Hawaii construction and development loans with a combined principal balance of $1.3 million, and one Hawaii commercial loan with a principal balance of $0.5 million. Concessions made to the original contractual terms of these loans consisted primarily of the deferral of interest and/or principal payments due to deterioration in the borrowers’ financial condition. The principal balances on these TDRs had matured and/or were in default at the time of restructure and we have no commitments to lend additional funds to any of these borrowers. There were $23.3 million of TDRs still accruing interest at December 31, 2013, none of which were more than 90 days delinquent. At December 31, 2012, there were $31.8 million of TDRs still accruing interest, none of which were more than 90 days delinquent. | |||||||||||||||||||||||
Some loans modified in a TDR may already be on nonaccrual status and partial charge-offs may have already been taken against the outstanding loan balance. Thus, these loans have already been identified as impaired and have already been evaluated under the Company’s Allowance methodology. As a result, some loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. The loans modified in a TDR did not have a material effect on our Provision and Allowance during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||
The following table presents by class, information related to loans modified in a TDR during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||
Number of | Recorded | Increase in | |||||||||||||||||||||
Contracts | Investment | the | |||||||||||||||||||||
(as of period end) | Allowance | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 517 | $ | — | ||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 1 | 178 | — | ||||||||||||||||||||
Mortgage - residential | 7 | 2,566 | — | ||||||||||||||||||||
Mortgage - commercial | 1 | 8,952 | — | ||||||||||||||||||||
Total | 10 | $ | 12,213 | $ | — | ||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | 4 | $ | 447 | $ | — | ||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 8 | 11,120 | — | ||||||||||||||||||||
Mortgage - residential | 10 | 3,782 | 427 | ||||||||||||||||||||
Mortgage - commercial | 6 | 9,124 | — | ||||||||||||||||||||
Total | 28 | $ | 24,473 | $ | 427 | ||||||||||||||||||
The following table presents by class, loans modified as a TDR within the previous twelve months that subsequently defaulted during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||
(as of period end) | (as of period end) | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 517 | — | $ | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | — | — | 7 | 5,949 | |||||||||||||||||||
Mortgage - residential | — | — | 4 | 893 | |||||||||||||||||||
Mortgage - commercial | — | — | 2 | 5,890 | |||||||||||||||||||
Total | 1 | $ | 517 | 13 | $ | 12,732 | |||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||
The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases as to credit risk. This analysis includes non-homogeneous loans and leases, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: | |||||||||||||||||||||||
Special Mention. Loans and leases classified as special mention, while still adequately protected by the borrower’s capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management’s close attention so as to avoid becoming undue or unwarranted credit exposures. | |||||||||||||||||||||||
Substandard. Loans and leases classified as substandard are inadequately protected by the borrower’s current financial condition and payment capability or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||
Doubtful. Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimate loss is deferred until its more exact status may be determined. | |||||||||||||||||||||||
Loss. Loans and leases classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. | |||||||||||||||||||||||
Loans and leases not meeting the criteria above are considered to be pass rated loans and leases. The following table presents by class and credit indicator, the recorded investment in the Company’s loans and leases as of December 31, 2013 and 2012: | |||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Loss | Less: | Total | |||||||||||||||||
Mention | Unearned | ||||||||||||||||||||||
Income | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 371,285 | $ | 21,511 | $ | 5,569 | $ | — | $ | — | $ | (351 | ) | $ | 398,716 | ||||||||
Real estate: | |||||||||||||||||||||||
Construction | 67,435 | 4,477 | 4,015 | — | — | 311 | 75,616 | ||||||||||||||||
Mortgage - residential | 1,213,636 | 845 | 23,360 | — | — | (1,418 | ) | 1,239,259 | |||||||||||||||
Mortgage - commercial | 551,488 | 20,206 | 29,420 | — | — | 1,033 | 600,081 | ||||||||||||||||
Consumer | 311,670 | — | — | — | — | 982 | 310,688 | ||||||||||||||||
Leases | 6,241 | — | — | — | — | — | 6,241 | ||||||||||||||||
Total | $ | 2,521,755 | $ | 47,039 | $ | 62,364 | $ | — | $ | — | $ | 557 | $ | 2,630,601 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 232,062 | $ | 6,609 | $ | 7,607 | $ | — | $ | — | $ | 60 | $ | 246,218 | |||||||||
Real estate: | |||||||||||||||||||||||
Construction | 42,619 | 9,635 | 43,986 | — | — | 46 | 96,194 | ||||||||||||||||
Mortgage - residential | 1,003,268 | 1,109 | 30,896 | — | — | (124 | ) | 1,035,397 | |||||||||||||||
Mortgage - commercial | 577,638 | 65,114 | 30,754 | — | — | 1,258 | 672,248 | ||||||||||||||||
Consumer | 143,258 | — | 129 | — | — | 4 | 143,383 | ||||||||||||||||
Leases | 9,860 | 274 | 370 | — | — | — | 10,504 | ||||||||||||||||
Total | $ | 2,008,705 | $ | 82,741 | $ | 113,742 | $ | — | $ | — | $ | 1,244 | $ | 2,203,944 | |||||||||
In accordance with applicable Interagency Guidance issued by our primary bank regulators, we define subprime borrowers as typically having weakened credit histories that include payment delinquencies and possibly more severe problems such as charge-offs, judgments, and bankruptcies. They may also display reduced repayment capacity as measured by credit scores, debt-to-income ratios, or other criteria that may encompass borrowers with incomplete credit histories. Subprime loans are loans to borrowers displaying one or more of these characteristics at the time of origination or purchase. Such loans have a higher risk of default than loans to prime borrowers. At December 31, 2013 and 2012, we did not have any loans that we considered to be subprime. |
ALLOWANCE_FOR_LOAN_AND_LEASE_L
ALLOWANCE FOR LOAN AND LEASE LOSSES | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ' | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ' | |||||||||||||||||||||||||
6. ALLOWANCE FOR LOAN AND LEASE LOSSES | ||||||||||||||||||||||||||
The following table presents by class, the activity in the Allowance for the periods indicated: | ||||||||||||||||||||||||||
Commercial, | Real estate | |||||||||||||||||||||||||
financial & | Mortgage - | Mortgage - | ||||||||||||||||||||||||
agricultural | Construction | residential | commercial | Consumer | Leases | Unallocated | Total | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Beginning balance | $ | 4,987 | $ | 4,510 | $ | 29,910 | $ | 48,500 | $ | 2,421 | $ | 85 | $ | 6,000 | $ | 96,413 | ||||||||||
Provision (credit) for loan and lease losses | 9,634 | (4,974 | ) | (1,493 | ) | (19,194 | ) | 5,093 | (376 | ) | — | (11,310 | ) | |||||||||||||
14,621 | (464 | ) | 28,417 | 29,306 | 7,514 | (291 | ) | 6,000 | 85,103 | |||||||||||||||||
Charge-offs | 2,812 | 358 | 1,083 | 6,768 | 1,595 | — | — | 12,616 | ||||||||||||||||||
Recoveries | 1,387 | 3,596 | 1,107 | 4,240 | 657 | 346 | — | 11,333 | ||||||||||||||||||
Net charge-offs (recoveries) | 1,425 | (3,238 | ) | (24 | ) | 2,528 | 938 | (346 | ) | — | 1,283 | |||||||||||||||
Ending balance | $ | 13,196 | $ | 2,774 | $ | 28,441 | $ | 26,778 | $ | 6,576 | $ | 55 | $ | 6,000 | $ | 83,820 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Beginning balance | $ | 6,110 | $ | 28,630 | $ | 32,736 | $ | 47,729 | $ | 2,335 | $ | 553 | $ | 4,000 | $ | 122,093 | ||||||||||
Provision (credit) for loan and lease losses | 1,042 | (22,307 | ) | (2,038 | ) | 2,316 | 547 | (445 | ) | 2,000 | (18,885 | ) | ||||||||||||||
7,152 | 6,323 | 30,698 | 50,045 | 2,882 | 108 | 6,000 | 103,208 | |||||||||||||||||||
Charge-offs | 3,779 | 8,435 | 1,664 | 2,033 | 1,490 | 28 | — | 17,429 | ||||||||||||||||||
Recoveries | 1,614 | 6,622 | 876 | 488 | 1,029 | 5 | — | 10,634 | ||||||||||||||||||
Net charge-offs | 2,165 | 1,813 | 788 | 1,545 | 461 | 23 | — | 6,795 | ||||||||||||||||||
Ending balance | $ | 4,987 | $ | 4,510 | $ | 29,910 | $ | 48,500 | $ | 2,421 | $ | 85 | $ | 6,000 | $ | 96,413 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||
Beginning balance | $ | 13,426 | $ | 76,556 | $ | 31,830 | $ | 64,308 | $ | 3,155 | $ | 1,579 | $ | 2,000 | $ | 192,854 | ||||||||||
Provision (credit) for loan and lease losses | (6,720 | ) | (23,073 | ) | 3,569 | (15,664 | ) | 214 | (1,016 | ) | 2,000 | (40,690 | ) | |||||||||||||
6,706 | 53,483 | 35,399 | 48,644 | 3,369 | 563 | 4,000 | 152,164 | |||||||||||||||||||
Charge-offs | 2,401 | 31,371 | 4,347 | 1,298 | 2,116 | 10 | — | 41,543 | ||||||||||||||||||
Recoveries | 1,805 | 6,518 | 1,684 | 383 | 1,082 | — | — | 11,472 | ||||||||||||||||||
Net charge-offs | 596 | 24,853 | 2,663 | 915 | 1,034 | 10 | — | 30,071 | ||||||||||||||||||
Ending balance | $ | 6,110 | $ | 28,630 | $ | 32,736 | $ | 47,729 | $ | 2,335 | $ | 553 | $ | 4,000 | $ | 122,093 | ||||||||||
In accordance with GAAP, loans held for sale and other real estate assets are not included in our assessment of the Allowance. | ||||||||||||||||||||||||||
Changes in the allowance for loan and lease losses for impaired loans (included in the above amounts) were as follows: | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance, beginning of year | $ | 3,011 | $ | 772 | $ | 19,525 | ||||||||||||||||||||
Provision for loan and lease losses | — | 2,520 | 333 | |||||||||||||||||||||||
Other changes | (2,662 | ) | (281 | ) | (19,086 | ) | ||||||||||||||||||||
Balance, end of year | $ | 349 | $ | 3,011 | $ | 772 | ||||||||||||||||||||
The amounts included in other changes above represent net charge-offs and net transfers of allocated allowances for loans and leases that were not classified as impaired for the entire year. At December 31, 2013 and 2012, all impaired loans were measured based on the fair value of the underlying collateral for collateral-dependent loans or at the loan’s observable market price. | ||||||||||||||||||||||||||
In determining the amount of our Allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as regulatory requirements and input. If our assumptions prove to be incorrect, our current Allowance may not be sufficient to cover future loan losses and we may experience significant increases to our Provision. |
SECURITIZATIONS
SECURITIZATIONS | 12 Months Ended |
Dec. 31, 2013 | |
SECURITIZATIONS | ' |
SECURITIZATIONS | ' |
7. SECURITIZATIONS | |
In prior years, we securitized certain residential mortgage loans with a U.S. Government sponsored entity and continue to service the residential mortgage loans. The servicing assets were recorded at their respective fair values which equaled par value at the time of securitization. | |
All unsold mortgage-backed securities from prior securitizations were categorized as available for sale securities and were therefore recorded at their fair value of $3.8 million and $6.3 million at December 31, 2013 and 2012, respectively. The fair values of these mortgage-backed securities were based on quoted prices of similar instruments in active markets. Unrealized gains of $0.2 million and $0.4 million on unsold mortgage-backed securities were recorded in AOCI at December 31, 2013 and 2012, respectively. |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PREMISES AND EQUIPMENT | ' | ||||||||||
PREMISES AND EQUIPMENT | ' | ||||||||||
8. PREMISES AND EQUIPMENT | |||||||||||
Premises and equipment consisted of the following as of December 31, 2013 and 2012: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||
Land | $ | 9,006 | $ | 9,006 | |||||||
Office buildings and improvements | 94,888 | 91,512 | |||||||||
Furniture, fixtures and equipment | 36,677 | 34,980 | |||||||||
140,571 | 135,498 | ||||||||||
Accumulated depreciation and amortization | (91,532 | ) | (86,739 | ) | |||||||
Net premises and equipment | $ | 49,039 | $ | 48,759 | |||||||
Depreciation and amortization of premises and equipment were charged to the following operating expenses: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Net occupancy | $ | 3,702 | $ | 3,723 | $ | 3,641 | |||||
Equipment | 2,305 | 2,628 | 3,083 | ||||||||
Total | $ | 6,007 | $ | 6,351 | $ | 6,724 |
OTHER_INTANGIBLE_ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
9. OTHER INTANGIBLE ASSETS | ||||||||||||||||||||
Other intangible assets include a core deposit premium and mortgage servicing rights. The following table presents changes in other intangible assets for the periods presented: | ||||||||||||||||||||
Core | Mortgage | |||||||||||||||||||
Deposit | Servicing | Customer | Non-compete | |||||||||||||||||
Premium | Rights | Relationships | Agreements | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance as of December 31, 2011 | $ | 18,053 | $ | 22,933 | $ | 910 | $ | 90 | $ | 41,986 | ||||||||||
Additions | — | 5,692 | — | — | 5,692 | |||||||||||||||
Amortization | (2,675 | ) | (6,504 | ) | (58 | ) | (25 | ) | (9,262 | ) | ||||||||||
Impairment charges | — | — | (852 | ) | (65 | ) | (917 | ) | ||||||||||||
Balance as of December 31, 2012 | $ | 15,378 | $ | 22,121 | $ | — | $ | — | $ | 37,499 | ||||||||||
Additions | — | 2,702 | — | — | 2,702 | |||||||||||||||
Amortization | (2,674 | ) | (4,744 | ) | — | — | (7,418 | ) | ||||||||||||
Balance as of December 31, 2013 | $ | 12,704 | $ | 20,079 | $ | — | $ | — | $ | 32,783 | ||||||||||
During the second quarter of 2012, we evaluated the recoverability of the intangible assets related to our customer relationships and non-compete agreements, both of which related to the 2008 asset acquisition of Pacific Islands Financial Management. Upon completion of this review, we determined that the intangible assets related to our customer relationships and non-compete agreements, both of which are associated with our Banking Operations reporting unit, were both fully impaired, and thus, we recorded impairment charges to other operating expense of $852 thousand and $65 thousand, respectively. | ||||||||||||||||||||
The gross carrying value, accumulated amortization and net carrying value related to our other intangible assets are presented below: | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||
Value | Amortization | Value | Value | Amortization | Value | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Core deposit premium | $ | 44,642 | $ | (31,938 | ) | $ | 12,704 | $ | 44,642 | $ | (29,264 | ) | $ | 15,378 | ||||||
Mortgage servicing rights | 54,441 | (34,362 | ) | 20,079 | 51,739 | (29,618 | ) | 22,121 | ||||||||||||
Customer relationships | — | — | — | 1,400 | (1,400 | ) | — | |||||||||||||
Non-compete agreements | — | — | — | 300 | (300 | ) | — | |||||||||||||
Total | $ | 99,083 | $ | (66,300 | ) | $ | 32,783 | $ | 98,081 | $ | (60,582 | ) | $ | 37,499 | ||||||
Based on our other intangible assets held as of December 31, 2013, estimated amortization expense for the next five succeeding fiscal years and all years thereafter are as follows: | ||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||
Mortgage | ||||||||||||||||||||
Core Deposit | Servicing | |||||||||||||||||||
Premium | Rights | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2014 | $ | 2,674 | $ | 2,452 | $ | 5,126 | ||||||||||||||
2015 | 2,674 | 1,669 | 4,343 | |||||||||||||||||
2016 | 2,674 | 1,099 | 3,773 | |||||||||||||||||
2017 | 2,674 | 669 | 3,343 | |||||||||||||||||
2018 | 2,008 | 296 | 2,304 | |||||||||||||||||
Thereafter | — | 13,894 | 13,894 | |||||||||||||||||
Total | $ | 12,704 | $ | 20,079 | $ | 32,783 | ||||||||||||||
At December 31, 2013, there were no events or changes in circumstances that would indicate that the assets assigned to our Banking Operations reporting unit, which includes the entire core deposit premium, were not recoverable. | ||||||||||||||||||||
We utilize the amortization method to measure our mortgage servicing rights. Under the amortization method, we amortize our mortgage servicing rights in proportion to and over the period of net servicing income. Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $2.7 million, $5.7 million, and $4.4 million in 2013, 2012 and 2011, respectively. Amortization of the servicing rights is reported as amortization of other intangible assets in our consolidated statements of income. Ancillary income is recorded in other income. Mortgage servicing rights are recorded when loans are sold to third-parties with servicing of those loans retained and we classify our entire mortgage servicing rights into one class. | ||||||||||||||||||||
Initial fair value of the servicing right is calculated by a discounted cash flow model prepared by a third party service provider based on market value assumptions at the time of origination and we assess the servicing right for impairment using current market value assumptions at each reporting period. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service and ancillary income. Variations in our assumptions could materially affect the estimated fair values. Changes to our assumptions are made when current trends and market data indicate that new trends have developed. Current market value assumptions based on loan product types (fixed rate, adjustable rate and balloon loans) include average discount rates and national prepayment speeds. Many of these assumptions are subjective and require a high level of management judgment. Our mortgage servicing rights portfolio and valuation assumptions are periodically reviewed by management. | ||||||||||||||||||||
Prepayment speeds may be affected by economic factors such as home price appreciation, market interest rates, the availability of other credit products to our borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. As market interest rates decline, prepayment speeds will generally increase as customers refinance existing mortgages under more favorable interest rate terms. As prepayment speeds increase, anticipated cash flows will generally decline resulting in a potential reduction, or impairment, to the fair value of the capitalized mortgage servicing rights. Alternatively, an increase in market interest rates may cause a decrease in prepayment speeds and therefore an increase in fair value of mortgage servicing rights. | ||||||||||||||||||||
The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Fair market value, beginning of period | $ | 22,356 | $ | 23,149 | ||||||||||||||||
Fair market value, end of period | 21,399 | 22,356 | ||||||||||||||||||
Weighted average discount rate | 8 | % | 8 | % | ||||||||||||||||
Weighted average prepayment speed assumption | 13.6 | 14 | ||||||||||||||||||
Fair values at December 31, 2013 and 2012 reflected approximately $2.4 billion and $2.7 billion in loans serviced for others, respectively. |
DERIVATIVES
DERIVATIVES | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
DERIVATIVES | ' | |||||||||||||||
DERIVATIVES | ' | |||||||||||||||
10. DERIVATIVES | ||||||||||||||||
We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate swaps, interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. At each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. | ||||||||||||||||
Interest Rate Lock and Forward Sale Commitments | ||||||||||||||||
We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate lock and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At December 31, 2013, we were a party to interest rate lock and forward sale commitments on $37.1 million and $24.2 million of mortgage loans, respectively. At December 31, 2012, we were a party to interest rate lock and forward sale commitments on $67.1 million and $49.2 million of mortgage loans, respectively. | ||||||||||||||||
The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheet: | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Derivatives not designated as | Balance Sheet | Fair Value at | Fair Value at | Fair Value at | Fair Value at | |||||||||||
hedging instruments | Location | December 31, | December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest rate contracts | Other assets / other liabilities | $ | 425 | $ | 303 | $ | 146 | $ | 551 | |||||||
The following tables present the impact of derivative instruments and their location within the consolidated statements of income: | ||||||||||||||||
Derivatives in Cash Flow | Amount of Gain (Loss) Reclassified | |||||||||||||||
Hedging Relationship | from AOCI into Earnings | |||||||||||||||
(Effective Portion) | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Interest rate contracts | $ | (394 | ) | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Interest rate contracts | 434 | |||||||||||||||
Amounts reclassified from AOCI into income are included in interest income in the consolidated statements of income. The ineffective portion has been recognized as other operating income in the consolidated statements of income. | ||||||||||||||||
Derivatives not in Cash Flow | Location of Gain (Loss) Recognized | Amount of Gain (Loss) Recognized | ||||||||||||||
Hedging Relationship | in Earnings on Derivatives | in Earnings on Derivatives | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Interest rate contracts | Other operating income | $ | 336 | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Interest rate contracts | Other operating income | (350 | ) | |||||||||||||
DEPOSITS
DEPOSITS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
DEPOSITS. | ' | ||||
DEPOSITS | ' | ||||
11. DEPOSITS | |||||
Time deposits of $100,000 or more totaled $842.9 million and $674.1 million at December 31, 2013 and 2012, respectively. | |||||
Interest expense on certificates of deposits of $100,000 or more totaled $1.5 million, $1.8 million, and $3.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Maturities of time deposits of $100,000 or more as of December 31, 2013 were as follows (in thousands): | |||||
Three months or less | $ | 399,818 | |||
Over three through six months | 268,780 | ||||
Over six through twelve months | 113,260 | ||||
2015 | 34,795 | ||||
2016 | 12,323 | ||||
2017 | 7,405 | ||||
2018 | 4,403 | ||||
Thereafter | 2,110 | ||||
Total | $ | 842,894 | |||
At December 31, 2013 and 2012, overdrawn deposit accounts totaling $0.7 million and $0.8 million, respectively, have been reclassified as loans on the consolidated balance sheets. |
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SHORT-TERM BORROWINGS | ' | ||||||||||
SHORT-TERM BORROWINGS | ' | ||||||||||
12. SHORT-TERM BORROWINGS | |||||||||||
At December 31, 2013, short-term borrowings consist of short-term FHLB advances of $8.0 million and overdraft balances in due from bank accounts. At December 31, 2012, we had no short-term borrowings. | |||||||||||
At December 31, 2013 and 2012, our bank had additional unused borrowings available at the Federal Reserve discount window of $46.5 million and $24.9 million, respectively. As of December 31, 2013 and 2012, certain commercial real estate and commercial loans with a carrying value totaling $79.7 million and $41.7 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans. | |||||||||||
Interest expense on short-term borrowings were $6 thousand, nil, and $0.2 million in 2013, 2012 and 2011, respectively. | |||||||||||
A summary of our short-term borrowings as of December 31, 2013, 2012 and 2011 is as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Amount outstanding at December 31 | $ | 8,015 | $ | — | $ | 34 | |||||
Average amount outstanding during year | 1,988 | 11 | 35,809 | ||||||||
Highest month-end balance during year | 28,000 | — | 201,962 | ||||||||
Weighted average interest rate on balances outstanding at December 31 | 0.23 | % | 0 | % | 0 | % | |||||
Weighted average interest rate during year | 0.32 | % | 0.7 | % | 0.57 | % |
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT. | ' | |||||||
LONG-TERM DEBT | ' | |||||||
13. LONG-TERM DEBT | ||||||||
Long-term debt, which is based on original maturity, consisted of the following at December 31, 2013 and 2012: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
FHLB advances | $ | 14 | $ | 32 | ||||
Subordinated debentures | 92,785 | 108,249 | ||||||
$ | 92,799 | $ | 108,281 | |||||
FHLB Advances | ||||||||
FHLB advances outstanding at December 31, 2013 and 2012 carried weighted average interest rates of 8.22%. The FHLB advance outstanding at December 31, 2013 was secured by unencumbered investment securities with a fair value of $50.8 million and certain real estate loans with a carrying value of $1.3 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At December 31, 2013, our bank had additional unused FHLB advances available of approximately $934.2 million. Interest expense on FHLB advances were $2 thousand, $14 thousand, and $5.7 million in 2013, 2012 and 2011, respectively. | ||||||||
At December 31, 2013, there were no putable FHLB advances outstanding. | ||||||||
Subordinated Debentures | ||||||||
In March 2003, we created a wholly-owned statutory trust, CPB Capital Trust I (“Trust I”). Trust I issued $15.0 million in trust preferred securities. The Trust I trust preferred securities carried an interest rate of three-month LIBOR plus 3.25%, and matured on April 7, 2033. The principal assets of Trust I were $15.5 million of the Company’s subordinated debentures with an identical interest rate and maturity as the Trust I trust preferred securities. Trust I issued $0.5 million of common securities to the Company. | ||||||||
In June 2013, the Company was notified that $10.0 million of the $15.0 million in trust preferred securities of Trust I would be auctioned off as part of a larger pooled collateralized debt obligation liquidation. The Company placed a bid of $9.0 million for the securities which was accepted by the trustee and the transaction closed on June 18, 2013. Because our accepted bid of $9.0 million was less than the $10.0 million carrying value, we recognized a gain of $1.0 million related to this transaction on October 7, 2013, when these securities were called. The Company determined that its investment in Trust I did not represent a variable interest and therefore the Company was not the primary beneficiary of Trust I. As a result, consolidation of Trust I by the Company was not required. In October 2013, the Company purchased the remaining $5.0 million in trust preferred securities and these securities were also called by the Company on October 7, 2013. As of December 31, 2013, $0.5 million in common stock of Trust I is still outstanding. | ||||||||
In October 2003, we created two wholly-owned statutory trusts, CPB Capital Trust II (“Trust II”) and CPB Statutory Trust III (“Trust III”). Trust II issued $20.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 2.85% and maturing on October 7, 2033. The principal assets of Trust II are $20.6 million of the Company’s subordinated debentures with an identical interest rate and maturity as the Trust II trust preferred securities. Trust II issued $0.6 million of common securities to the Company. | ||||||||
Trust III issued $20.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 2.85% and maturing on December 17, 2033. The principal assets of Trust III are $20.6 million of the Company’s subordinated debentures with an identical interest rate and maturity as the Trust III trust preferred securities. Trust III issued $0.6 million of common securities to the Company. | ||||||||
In September 2004, we created a wholly-owned statutory trust, CPB Capital Trust IV (“Trust IV”). Trust IV issued $30.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 2.45% and maturing on December 15, 2034. The principal assets of Trust IV are $30.9 million of the Company’s subordinated debentures with an identical interest rate and maturity as the Trust IV trust preferred securities. Trust IV issued $0.9 million of common securities to the Company. | ||||||||
In December 2004, we created a wholly-owned statutory trust, CPB Statutory Trust V (“Trust V”). Trust V issued $20.0 million in trust preferred securities bearing an interest rate of three-month LIBOR plus 1.87% and maturing on December 15, 2034. The principal assets of Trust V are $20.6 million of the Company’s subordinated debentures with an identical interest rate and maturity as the Trust V trust preferred securities. Trust V issued $0.6 million of common securities to the Company. | ||||||||
The trust preferred securities, the subordinated debentures that are the assets of Trusts I, II, III, IV and V and the common securities issued by Trusts I, II, III, IV and V are redeemable in whole or in part on any interest payment date on or after April 7, 2008 for Trust I, on or after October 7, 2008 for Trusts II and III, and on or after December 15, 2009 for Trust IV and V, or at any time in whole but not in part within 90 days following the occurrence of certain events. Our obligations with respect to the issuance of the trust preferred securities constitute a full and unconditional guarantee by the Company of each trust’s obligations with respect to its trust preferred securities. Subject to certain exceptions and limitations, we may elect from time to time to defer interest payments on the subordinated debentures, which would result in a deferral of distribution payments on the related trust preferred securities, for up to 20 consecutive quarterly periods without default or penalty. | ||||||||
On August 20, 2009, we began deferring regularly scheduled interest payments on our outstanding junior subordinated debentures relating to our trust preferred securities. The terms of the junior subordinated debentures and the trust documents allow us to defer payments of interest for up to 20 consecutive quarterly periods without default or penalty. In March 2013, the Company paid all deferred interest on its subordinated debentures and related dividend payments on its trust preferred securities and resumed quarterly payments for each outstanding trust. As a result, deferred accrued interest totaling $13.0 million was paid in full. | ||||||||
At December 31, 2013, future principal payments on long-term debt based on final maturity are as follows (in thousands): | ||||||||
Year ending December 31: | ||||||||
2014 | $ | 14 | ||||||
2015 | — | |||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | — | |||||||
Thereafter | 92,785 | |||||||
Total | $ | 92,799 | ||||||
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
EQUITY | ' |
EQUITY | ' |
14. EQUITY | |
As further discussed in Note 1, we completed a number of significant transactions as part of our recapitalization, including: | |
· On February 2, 2011, we effected the Reverse Stock Split. | |
· On February 18, 2011, we completed the Private Placement with investments from (1) affiliates of each of The Carlyle Group (“Carlyle”) and Anchorage Capital Group, L.L.C. (together with Carlyle, the “Lead Investors”) pursuant to investment agreements with each of the Lead Investors and (2) various other investors, including certain of our directors and officers, pursuant to subscription agreements with each of such investors. | |
· Concurrently with the closing of the Private Placement, we completed the TARP Exchange whereby 135,000 shares of our TARP Preferred Stock, no par value per share and liquidation preference $1,000 per share, held by the Treasury, and accrued and unpaid dividends thereon were exchanged for 5,620,117 common shares. We also amended the warrant held by the Treasury (the “Amended TARP Warrant”) to, among other things, reduce the exercise price from $255.40 per share to $10 per share. The warrant grants the Treasury the right to purchase up to 79,288 common shares, subject to adjustment. | |
· On May 6, 2011, we completed the Rights Offering which allowed shareholders of record as of the close of business on February 17, 2011 or their transferees to purchase newly issued common shares at $10 per share. | |
The TARP Exchange resulted in a non-cash increase in net income available to common shareholders of $85.1 million as the book value of the preferred stock plus accrued and unpaid dividends was greater than the estimated fair value of the common stock issued to the Treasury of $56.2 million and the fair value of the Amended TARP Warrant at the time of the TARP Exchange. This accounting treatment had no effect on our total shareholders’ equity or our regulatory capital position. | |
In addition to adjusting the exercise price of the Amended TARP Warrant, its terms were revised to include a “down-round” provision allowing for the future adjustment to the exercise price for any subsequent issuances of common stock by the Company. Subject to certain exceptions, if the Company subsequently issues common stock, or rights or shares convertible into common stock, at a per share price lower than the $10 exercise price of the warrant, the exercise price of the warrant will be reduced to the per share common stock amount received in connection with the issuance and the number of shares of common stock subject to the warrant will be increased. This provision resulted in the warrant being carried as a derivative liability as compared to a common stock equivalent for balance sheet purposes as it possesses the characteristics of a freestanding derivative financial instrument as defined by Accounting Standards Codification (“ASC”) 815-10-15-83, Accounting for Derivatives and Hedging, and similar to the example illustrated in ASC 815-40-55-33 and -34. As a derivative liability, the warrant was carried at fair value, with subsequent remeasurements recorded through the current period’s earnings. The initial value attributed to the warrant was $1.7 million, with the fair value estimated using the Black-Scholes options pricing model, with the following assumptions: 67% volatility, a risk-free rate of 3.59%, a yield of 1.45% and an estimated life of 10 years. From February 18, 2011 through December 31, 2012, this instrument’s estimated fair value decreased, which resulted in the recognition of $1.0 million recorded in other noninterest income during the year ended December 31, 2011, and a $0.1 million charge to other noninterest expense in 2012. | |
In June 2013, the Treasury held a private auction to sell its warrant positions in several financial institutions which included the Company’s warrant to purchase up to 79,288 shares of our common shares at a purchase price of $10 per share. On June 6, 2013, we were notified that we were the winning bidder of the warrant at our bid of $752 thousand. The warrant was being carried as a derivative liability on our balance sheet at $819 thousand at December 31, 2012. Accordingly, we recorded a credit to other noninterest expense of $67 thousand in 2013 related to the gain on the purchase of the warrant. | |
On June 22, 2011, the Treasury completed a public underwritten offering of 2,850,000 shares of our common stock it received in the TARP Exchange. On April 4, 2012, the Treasury completed another public underwritten offering of its remaining 2,770,117 shares of our common stock it received in the TARP Exchange. The Company did not receive any proceeds from either of these offerings. After the completion of these transactions and the aforementioned repurchase of our warrant, the Treasury no longer holds any outstanding shares of our common stock, or any warrants to purchase our common stock they received in connection with our participation in the TARP. | |
We have generated considerable tax benefits, including net operating loss carry-forwards and federal and state tax credits. Our use of the tax benefits in the future would be significantly limited if we experience an “ownership change” for U.S. federal income tax purposes. In general, an “ownership change” will occur if there is a cumulative increase in the Company’s ownership by “5-percent shareholders” (as defined under U.S. income tax laws) that exceeds 50 percentage points over a rolling three-year period. | |
On November 23, 2010, our board declared a dividend of preferred share purchase rights (“Rights”) in respect to our common stock which were issued pursuant to a Tax Benefits Preservation Plan, dated as of November 23, 2010 (the “Tax Benefits Preservation Plan”), between the Company and Wells Fargo Bank, National Association, as rights agent. Each Right represents the right to purchase, upon the terms and subject to the conditions in the Plan, 1/10,000th of a share of our Junior Participating Preferred Stock, Series C, no par value, for $6.00, subject to adjustment. The Tax Benefits Preservation Plan is designed to reduce the likelihood that the Company will experience an ownership change by discouraging any person from becoming a beneficial owner of 4.99% or more of our common stock (a “Threshold Holder”). Adoption of the Tax Benefits Preservation Plan was required by our agreements with the Lead Investors. On January 29, 2014, our Board of Directors approved an amendment to the Tax Benefits Preservation Plan to extend it for up to an additional two years. | |
To further protect our tax benefits, on January 26, 2011, our Board approved an amendment to our restated articles of incorporation to restrict transfers of our stock if the effect of an attempted transfer would cause the transferee to become a Threshold Holder or to cause the beneficial ownership of a Threshold Holder to increase (the “Protective Charter Amendment”). At our annual meeting of shareholders on April 27, 2011, we proposed the amendment which shareholders approved. On January 29, 2014, our Board of Directors approved an amendment to the Protective Charter Amendment to extend it for up to an additional two years subject to approval by our shareholders. There is no guarantee, however, that the Tax Benefits Preservation Plan or the Protective Charter Amendment will prevent the Company from experiencing an ownership change. | |
In 2009, our Board of Directors suspended the payment of all cash dividends on our common stock. Our ability to pay dividends with respect to common stock was restricted until our obligations under our trust preferred securities were brought current. Additionally, our ability to pay dividends depends on our ability to obtain dividends from our bank. As a Hawaii state-chartered bank, Central Pacific Bank may only pay dividends to the extent it has retained earnings as defined under Hawaii banking law (“Statutory Retained Earnings”), which differs from GAAP retained earnings. As of December 31, 2013, the bank had Statutory Retained Earnings of $240.4 million. In 2013, in light of the Company’s improved capital position and financial condition, our Board of Directors and management, in consultation with our regulators, reinstated and declared quarterly cash dividends of $0.08 per share on the Company’s outstanding common shares, payable to shareholders of record at the close of business on August 30, 2013 and November 29, 2013. These dividends were paid on September 16, 2013 and December 16, 2013, respectively. CPF had sufficient cash on hand to fund these dividends, thus the bank did not pay a dividend to CPF. In January 2014, the Company’s Board of Directors declared a third consecutive quarterly cash dividend of $0.08 per share on the Company’s outstanding common shares, payable on March 17, 2014 to shareholders of record at the close of business on February 28, 2014. | |
Dividends are payable at the discretion of the Board of Directors and there can be no assurance that the Board of Directors will continue to pay dividends at the same rate, or at all, in the future. Our ability to pay cash dividends to our shareholders is subject to restrictions under federal and Hawaii law, including restrictions imposed by the FRB and covenants set forth in various agreements we are a party to, including covenants set forth in our subordinated debentures. | |
In January 2008, our Board of Directors authorized the repurchase and retirement of up to 60,000 shares of the Company’s common stock (the “2008 Repurchase Plan”). Repurchases under the 2008 Repurchase Plan may be made from time to time on the open market or in privately negotiated transactions. There were no repurchases of common stock during 2013. A total of 55,000 shares remained available for repurchase under the 2008 Repurchase Plan at December 31, 2013. In January 2014, the 2008 Repurchase Plan and the remaining 55,000 shares were superseded by a tender offer and repurchase agreements with our Lead Investors. See Note 28 for details of these transactions. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
SHARE-BASED COMPENSATION. | ' | |||||||||||
SHARE-BASED COMPENSATION | ' | |||||||||||
15. SHARE-BASED COMPENSATION | ||||||||||||
In accordance with ASC 718, compensation expense is recognized only for those shares expected to vest, based on the Company’s historical experience and future expectations. The following table summarizes the effects of share-based compensation to options and awards granted under the Company’s equity incentive plans for each of the periods presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(Dollars in thousands) | ||||||||||||
Salaries and employee benefits | $ | 6,367 | $ | 4,432 | $ | 2,409 | ||||||
Directors stock awards | 45 | 90 | 153 | |||||||||
Legal and professional services | — | 59 | 55 | |||||||||
Income tax benefit | (2,570 | ) | — | — | ||||||||
Net share-based compensation effect | $ | 3,842 | $ | 4,581 | $ | 2,617 | ||||||
The Company’s share-based compensation arrangements are described below: | ||||||||||||
Equity Incentive Plans | ||||||||||||
We have adopted equity incentive plans for the purpose of granting options, restricted stock and other equity based awards for the Company’s common stock to directors, officers and other key individuals. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards generally vest based on three or five years of continuous service and have 10-year contractual terms. Certain option and share awards provide for accelerated vesting if there is a change in control (as defined in the stock option plans below). We have historically issued new shares of common stock upon exercises of stock options and purchases of restricted awards. | ||||||||||||
In February 1997, we adopted the 1997 Stock Option Plan (“1997 Plan”) basically as a continuance of the 1986 Stock Option Plan. In April 1997, our shareholders approved the 1997 Plan, which provided 2,000,000 shares of the Company’s common stock for grants to employees as qualified incentive stock options and to directors as nonqualified stock options. On January 1, 2013, the last options issued under the 1997 Plan expired. | ||||||||||||
In September 2004, we adopted and our shareholders approved the 2004 Stock Compensation Plan (“2004 Plan”) making available 1,500,000 shares for grants to employees and directors. Upon adoption of the 2004 Plan, all unissued shares from the 1997 Plan were frozen and no new options were granted under the 1997 Plan. In May 2007, the 2004 Plan was amended to increase the number of shares available for grant by an additional 1,000,000 shares. In April 2011, the 2004 Plan was amended to increase the number of shares authorized from 1,402,589 to 4,944,831. | ||||||||||||
In April 2013, we adopted and our shareholders approved the 2013 Stock Compensation Plan (“2013 Plan”) making available 2,200,000 shares for grants to employees and directors. Upon adoption of the 2013 Plan, all unissued shares from the 2004 Plan were frozen and no new grants will be granted under the 2004 Plan. Shares may continue to be settled under the 1997 and 2004 Plans pursuant to previously outstanding awards. To satisfy share issuances pursuant to the equity incentive plans, we issue new shares from the 2013 Plan. | ||||||||||||
At December 31, 2013, 2012 and 2011, a total of 2,185,454, 1,604,198, and 2,539,341 shares, respectively, were available for future grants. | ||||||||||||
The fair value of each option award is estimated on the date of grant based on the following: | ||||||||||||
Valuation and amortization method—We estimate the fair value of stock options granted using the Black-Scholes option pricing formula and a single option award approach. We use historical data to estimate option exercise and employee termination activity within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. | ||||||||||||
Expected life—The expected life of options represents the period of time that options granted are expected to be outstanding. | ||||||||||||
Expected volatility—Expected volatilities are based on the historical volatility of the Company’s common stock. | ||||||||||||
Risk-free interest rate—The risk-free interest rate for periods within the contractual life of the option is based on the Treasury yield curve in effect at the time of grant. | ||||||||||||
Expected dividend—The expected dividend assumption is based on our current expectations about its anticipated dividend policy. | ||||||||||||
Stock Option Activity | ||||||||||||
The fair value of the Company’s stock options granted to employees was estimated using the following weighted-average assumptions: | ||||||||||||
Year Ended | ||||||||||||
December 31, 2012 | ||||||||||||
Expected volatility | 77.2 | % | ||||||||||
Risk free interest rate | 1.8 | % | ||||||||||
Expected dividends | 1 | % | ||||||||||
Expected life (in years) | 8 | |||||||||||
Weighted average fair value | $ | 9.65 | ||||||||||
No stock options were granted during 2013 and 2011. | ||||||||||||
The following is a summary of option activity for our stock option plans for the year ended December 31, 2013: | ||||||||||||
Weighted Average | Aggregate | |||||||||||
Weighted | Remaining | Intrinsic | ||||||||||
Average | Contractual Term | Value | ||||||||||
Shares | Exercise Price | (in years) | (in thousands) | |||||||||
Outstanding at January 1, 2013 | 315,369 | $ | 62.77 | |||||||||
Changes during the year: | ||||||||||||
Exercised | (5,186 | ) | 14.31 | |||||||||
Expired | (7,024 | ) | 539.38 | |||||||||
Forfeited | (511 | ) | 508.11 | |||||||||
Outstanding at December 31, 2013 | 302,648 | 51.79 | 7.9 | $ | 1,598 | |||||||
Vested and expected to vest at | ||||||||||||
December 31, 2013 | 302,648 | 51.79 | 7.9 | 1,598 | ||||||||
Exercisable at December 31, 2013 | 91,241 | 138.56 | 6.8 | 384 | ||||||||
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying option awards and the quoted price of the Company’s common stock for the options that were in-the-money at December 31, 2013. During the year ended December 31, 2013, the aggregate intrinsic value of options exercised under our stock option plan was $22 thousand, determined as of the date of exercise. During the years ended December 31, 2012 and 2011, no stock options were exercised. | ||||||||||||
As of December 31, 2013, the total compensation cost that was not yet recognized related to stock options granted to employees under our stock option plans was approximately $1.6 million, net of estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted-average period of 3.2 years and will be adjusted for subsequent changes in estimated forfeitures. The total fair value of shares vested during the years ended December 31, 2013, 2012 and 2011 was $0.7 million, $14 thousand, and $17 thousand, respectively. | ||||||||||||
Restricted Stock Awards and Units | ||||||||||||
Under the 1997, 2004 and 2013 Plans, we awarded restricted stock awards and units to our non-officer directors and certain senior management personnel. The awards typically vest over a three or five year period. Compensation expense is measured as the market price of the stock awards on the grant date, and is recognized over the specified vesting periods. | ||||||||||||
The table below presents the activity of restricted stock awards and units for the year ended December 31, 2013: | ||||||||||||
Weighted Average | ||||||||||||
Grant Date | ||||||||||||
Shares | Fair Value | |||||||||||
Nonvested at January 1, 2013 | 1,098,806 | $ | 14.61 | |||||||||
Changes during the year: | ||||||||||||
Granted | 142,347 | 15.56 | ||||||||||
Forfeited | (103,329 | ) | 14.68 | |||||||||
Vested | (301,920 | ) | 14.65 | |||||||||
Nonvested at December 31, 2013 | 835,904 | 14.75 | ||||||||||
Vested and expected to vest at December 31, 2013 | 835,904 | 14.75 | ||||||||||
As of December 31, 2013, there was $8.4 million of total unrecognized compensation cost related to restricted stock awards and units that is expected to be recognized over a weighted-average period of 2.5 years. |
PENSION_PLANS
PENSION PLANS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
PENSION PLANS | ' | |||||||||||||
PENSION PLANS | ' | |||||||||||||
16. PENSION PLANS | ||||||||||||||
Defined Benefit Retirement Plan | ||||||||||||||
The bank has a defined benefit retirement plan that covered substantially all of its employees who were employed during the period that the plan was in effect. The plan was initially curtailed in 1986, and accordingly, plan benefits were fixed as of that date. Effective January 1, 1991, the bank reactivated its defined benefit retirement plan. As a result of the reactivation, employees for whom benefits were fixed in 1986 began to accrue additional benefits under a new formula that became effective January 1, 1991. Employees who were not participants at curtailment, but who were subsequently eligible to join, became participants effective January 1, 1991. Under the reactivated plan, benefits are based upon the employees’ years of service and their highest average annual salaries in a 60-consecutive-month period of service, reduced by benefits provided from the bank’s terminated money purchase pension plan. The reactivation of the defined benefit retirement plan resulted in an increase of $5.9 million in the unrecognized prior service cost, which was amortized over a period of 13 years. Effective December 31, 2002, the bank curtailed its defined benefit retirement plan, and accordingly, plan benefits were fixed as of that date. | ||||||||||||||
The following tables set forth information pertaining to the defined benefit retirement plan: | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 36,139 | $ | 34,091 | ||||||||||
Interest cost | 1,370 | 1,585 | ||||||||||||
Actuarial (gains) losses | (2,969 | ) | 2,923 | |||||||||||
Benefits paid | (2,357 | ) | (2,460 | ) | ||||||||||
Benefit obligation at end of the year | 32,183 | 36,139 | ||||||||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | 23,780 | 22,559 | ||||||||||||
Actual return on plan assets | 4,712 | 2,235 | ||||||||||||
Employer contributions | 1,647 | 1,446 | ||||||||||||
Benefits paid | (2,357 | ) | (2,460 | ) | ||||||||||
Fair value of plan assets at end of year | 27,782 | 23,780 | ||||||||||||
Funded status at end of year | $ | (4,401 | ) | $ | (12,359 | ) | ||||||||
Amounts recognized in AOCI | ||||||||||||||
Net actuarial losses | $ | (10,895 | ) | $ | (19,205 | ) | ||||||||
Benefit obligation actuarial assumptions | ||||||||||||||
Weighted average discount rate | 4.7 | % | 4 | % | ||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Components of net periodic benefit cost | ||||||||||||||
Interest cost | $ | 1,370 | $ | 1,585 | $ | 1,668 | ||||||||
Expected return on plan assets | (1,762 | ) | (1,791 | ) | (1,821 | ) | ||||||||
Amortization of net actuarial losses | 2,390 | 2,385 | 2,263 | |||||||||||
Net periodic benefit cost | $ | 1,998 | $ | 2,179 | $ | 2,110 | ||||||||
Net periodic cost actuarial assumptions | ||||||||||||||
Weighted average discount rate | 4 | % | 4.8 | % | 5.1 | % | ||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 8 | % | 8 | % | ||||||||
The unrecognized net actuarial losses included in AOCI expected to be recognized in net periodic benefit cost during 2014 is approximately $1.2 million. | ||||||||||||||
The long-term rate of return on plan assets reflects the weighted-average long-term rates of return for the various categories of investments held in the plan. The expected long-term rate of return is adjusted when there are fundamental changes in expected returns on the plan investments. | ||||||||||||||
The defined benefit retirement plan assets consist primarily of equity and debt securities. Our asset allocations by asset category were as follows: | ||||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Equity securities | 59.9 | % | 64.7 | % | ||||||||||
Debt securities | 34.6 | 32.6 | ||||||||||||
Other | 5.5 | 2.7 | ||||||||||||
Total | 100 | % | 100 | % | ||||||||||
Equity securities included the Company’s common stock in the amounts of $76 thousand and $59 thousand at December 31, 2013 and 2012, respectively. | ||||||||||||||
Our investment strategy for the defined benefit retirement plan is to maximize the long-term rate of return on plan assets while maintaining an acceptable level of risk. The investment policy establishes a target allocation for each asset class that is reviewed periodically and rebalanced when considered appropriate. | ||||||||||||||
The fair values of the defined benefit retirement plan as of December 31, 2013 and 2012 by asset category were as follows: | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(Dollars in thousands) | ||||||||||||||
December 31, 2013 | ||||||||||||||
Money market accounts | $ | 1,841 | $ | — | $ | — | $ | 1,841 | ||||||
Mutual funds | 9,795 | — | — | 9,795 | ||||||||||
Government obligations | — | 3,450 | — | 3,450 | ||||||||||
Common stocks | 8,744 | — | — | 8,744 | ||||||||||
Preferred stocks | 255 | — | — | 255 | ||||||||||
Corporate bonds and debentures | — | 3,697 | — | 3,697 | ||||||||||
$ | 20,635 | $ | 7,147 | $ | — | $ | 27,782 | |||||||
December 31, 2012 | ||||||||||||||
Money market accounts | $ | 1,022 | $ | — | $ | — | $ | 1,022 | ||||||
Mutual funds | 9,524 | — | — | 9,524 | ||||||||||
Government obligations | — | 3,317 | — | 3,317 | ||||||||||
Common stocks | 6,213 | — | — | 6,213 | ||||||||||
Preferred stocks | 279 | — | — | 279 | ||||||||||
Corporate bonds and debentures | — | 3,425 | — | 3,425 | ||||||||||
$ | 17,038 | $ | 6,742 | $ | — | $ | 23,780 | |||||||
We expect to contribute approximately $1.8 million to our defined benefit retirement plan in 2014. | ||||||||||||||
Estimated future benefit payments are as follows (in thousands): | ||||||||||||||
Year ending December 31: | ||||||||||||||
2014 | $ | 2,427 | ||||||||||||
2015 | 2,413 | |||||||||||||
2016 | 2,432 | |||||||||||||
2017 | 2,411 | |||||||||||||
2018 | 2,401 | |||||||||||||
2019-2023 | 11,393 | |||||||||||||
Total | $ | 23,477 | ||||||||||||
Supplemental Executive Retirement Plans | ||||||||||||||
In 1995, 2001, 2004 and 2006, our bank established Supplemental Executive Retirement Plans (“SERP”) that provide certain officers of the Company with supplemental retirement benefits. On December 31, 2002, the 1995 and 2001 SERP were curtailed. In conjunction with the merger with CB Bancshares, Inc. (“CBBI”), we assumed CBBI’s SERP obligation. | ||||||||||||||
The following tables set forth information pertaining to the SERP: | ||||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 9,944 | $ | 8,558 | ||||||||||
Interest cost | 411 | 426 | ||||||||||||
Actuarial (gains) losses | (1,033 | ) | 1,175 | |||||||||||
Benefits paid | (215 | ) | (215 | ) | ||||||||||
Benefit obligation at end of year | 9,107 | 9,944 | ||||||||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | — | — | ||||||||||||
Employer contributions | 215 | 215 | ||||||||||||
Benefits paid | (215 | ) | (215 | ) | ||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||||
Funded status at end of year | $ | (9,107 | ) | $ | (9,944 | ) | ||||||||
Amounts recognized in AOCI | ||||||||||||||
Net transition obligation | $ | (164 | ) | $ | (181 | ) | ||||||||
Prior service cost | (119 | ) | (137 | ) | ||||||||||
Net actuarial losses | (379 | ) | (1,482 | ) | ||||||||||
Total amounts recognized in AOCI | $ | (662 | ) | $ | (1,800 | ) | ||||||||
Benefit obligation actuarial assumptions | ||||||||||||||
Weighted average discount rate | 5 | % | 4.2 | % | ||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Components of net periodic benefit cost | ||||||||||||||
Interest cost | $ | 411 | $ | 426 | $ | 412 | ||||||||
Amortization of net transition obligation | 17 | 17 | 17 | |||||||||||
Amortization of prior service cost | 18 | 18 | 18 | |||||||||||
Amortization of net actuarial (gains) losses | 71 | (4 | ) | (17 | ) | |||||||||
Net periodic benefit cost | $ | 517 | $ | 457 | $ | 430 | ||||||||
Net periodic cost actuarial assumptions | ||||||||||||||
Weighted average discount rate | 4.2 | % | 5 | % | 5 | % | ||||||||
The estimated amortization of components included in AOCI that will be recognized into net periodic cost for 2014 is as follows (in thousands): | ||||||||||||||
Amortization of net transition obligation | $ | 17 | ||||||||||||
Amortization of prior service cost | 18 | |||||||||||||
Amortization of net actuarial losses | 2 | |||||||||||||
The SERP holds no plan assets other than employer contributions that are paid as benefits during the year. We expect to contribute $0.2 million to the SERP in 2014. | ||||||||||||||
Estimated future benefit payments reflecting expected future service for the SERP are as follows (in thousands): | ||||||||||||||
Year ending December 31: | ||||||||||||||
2014 | $ | 215 | ||||||||||||
2015 | 211 | |||||||||||||
2016 | 225 | |||||||||||||
2017 | 415 | |||||||||||||
2018 | 411 | |||||||||||||
2019-2023 | 2,425 | |||||||||||||
Total | $ | 3,902 | ||||||||||||
401K_RETIREMENT_SAVINGS_PLAN
401(K) RETIREMENT SAVINGS PLAN | 12 Months Ended |
Dec. 31, 2013 | |
401(K) RETIREMENT SAVINGS PLAN | ' |
401(K) RETIREMENT SAVINGS PLAN | ' |
17. 401(K) RETIREMENT SAVINGS PLAN | |
We maintain a 401(k) Retirement Savings Plan (“Retirement Savings Plan”) that covers substantially all employees of the Company. The Retirement Savings Plan allows employees to direct their own investments among a selection of investment alternatives and is funded by employee elective deferrals, employer matching contributions and employer profit sharing contributions. | |
We match 100% of an employee’s elective deferrals, up to 4% of the employee’s pay each pay period. Our employer matching contributions to the Retirement Savings Plan totaled $1.7 million, $1.6 million, and $1.4 million in 2013, 2012 and 2011, respectively. | |
We also have the option of making discretionary profit sharing contributions into the Retirement Savings Plan. Our Board of Directors has sole discretion in determining the annual profit sharing contribution, subject to limitations of the Internal Revenue Code. We did not make any profit sharing contributions in 2013, 2012 and 2011. |
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OPERATING LEASES | ' | ||||||||||
OPERATING LEASES | ' | ||||||||||
18. OPERATING LEASES | |||||||||||
We lease certain properties and equipment with lease terms expiring through 2038. In most instances, the property leases provide for the renegotiation of rental terms at fixed intervals, and generally contain renewal options for periods ranging from five to 15 years. | |||||||||||
Net rent expense for all operating leases for the years ended December 31, 2013, 2012 and 2011 is summarized as follows: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Rent expense charged to net occupancy | $ | 9,840 | $ | 10,053 | $ | 10,286 | |||||
Less sublease income | (52 | ) | (25 | ) | (74 | ) | |||||
Net rent expense charged to net occupancy | 9,788 | 10,028 | 10,212 | ||||||||
Rent expense charged to equipment expense | 93 | 104 | 162 | ||||||||
Total net rent expense | $ | 9,881 | $ | 10,132 | $ | 10,374 | |||||
The following is a schedule of future minimum rental commitments for all noncancellable operating leases that had initial lease terms in excess of one year at December 31, 2013 (in thousands): | |||||||||||
Year ending December 31: | |||||||||||
2014 | $ | 7,847 | |||||||||
2015 | 6,626 | ||||||||||
2016 | 5,901 | ||||||||||
2017 | 4,943 | ||||||||||
2018 | 3,621 | ||||||||||
Thereafter | 23,664 | ||||||||||
Total | $ | 52,602 | |||||||||
In addition, the Company, as lessor, leases certain properties that it owns. The following is a schedule of future minimum rental income for those noncancellable operating leases that had initial lease terms in excess of one year at December 31, 2013 (in thousands): | |||||||||||
Year ending December 31: | |||||||||||
2014 | $ | 3,045 | |||||||||
2015 | 2,331 | ||||||||||
2016 | 1,340 | ||||||||||
2017 | 795 | ||||||||||
2018 | 225 | ||||||||||
Thereafter | 50 | ||||||||||
Total | $ | 7,786 | |||||||||
In instances where the lease calls for a renegotiation of rental payments, the lease rental payment in effect prior to renegotiation was used throughout the remaining lease term. |
INCOME_AND_FRANCHISE_TAXES
INCOME AND FRANCHISE TAXES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME AND FRANCHISE TAXES | ' | ||||||||||
INCOME AND FRANCHISE TAXES | ' | ||||||||||
19. INCOME AND FRANCHISE TAXES | |||||||||||
Components of income tax benefit for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||
Current | Deferred | Total | |||||||||
(Dollars in thousands) | |||||||||||
Year ended December 31, 2013 | |||||||||||
Federal | $ | — | $ | (81,613 | ) | $ | (81,613 | ) | |||
State | 109 | (30,743 | ) | (30,634 | ) | ||||||
Total | $ | 109 | $ | (112,356 | ) | $ | (112,247 | ) | |||
Year ended December 31, 2012 | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Total | $ | — | $ | — | $ | — | |||||
Year ended December 31, 2011 | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Total | $ | — | $ | — | $ | — | |||||
Income tax expense for the periods presented differed from the “expected” tax expense (computed by applying the U.S. Federal corporate tax rate of 35% to income (loss) before income taxes) for the following reasons: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Computed “expected” tax expense (benefit) | $ | 20,940 | $ | 16,598 | $ | 12,802 | |||||
Increase (decrease) in taxes resulting from: | |||||||||||
Tax-exempt interest | (1,431 | ) | (820 | ) | (273 | ) | |||||
Other tax-exempt income | (810 | ) | (976 | ) | (1,441 | ) | |||||
Low-income housing and energy tax credits | (1,557 | ) | (1,607 | ) | (1,678 | ) | |||||
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance | 2,389 | 2,540 | 546 | ||||||||
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense | (132,061 | ) | (15,862 | ) | (9,870 | ) | |||||
Other | 283 | 127 | (86 | ) | |||||||
Total | $ | (112,247 | ) | $ | — | $ | — | ||||
At December 31, 2013, current Federal income taxes receivable was $0.1 million, compared to a $9 thousand payable at December 31, 2012. Current state income taxes receivable was $1.8 million at December 31, 2013 and 2012. | |||||||||||
The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||
Deferred tax assets | |||||||||||
Allowance for loan and lease losses | $ | 28,926 | $ | 33,418 | |||||||
Accrued expenses | 2,950 | 2,744 | |||||||||
Employee retirement benefits | 8,762 | 15,773 | |||||||||
Federal and state tax credit carryforwards | 37,449 | 35,305 | |||||||||
Investment write-downs and write-offs | 3,051 | 3,051 | |||||||||
Interest on nonaccrual loans | 1,962 | 4,047 | |||||||||
Federal and state net operating loss carryforwards | 87,757 | 86,339 | |||||||||
Other | 15,486 | 26,289 | |||||||||
Total deferred tax assets | $ | 186,343 | $ | 206,966 | |||||||
Deferred tax liabilities | |||||||||||
Intangible assets | $ | 13,117 | $ | 14,962 | |||||||
FHLB stock dividends received | 11,848 | 12,345 | |||||||||
Net unrealized gain on derivatives recognized through AOCI | — | 1,786 | |||||||||
Leases | 2,755 | 3,599 | |||||||||
Deferred gain on curtailed retirement plan | 3,339 | 3,339 | |||||||||
Liability on utilization of state tax credits | 7,722 | 7,475 | |||||||||
Other | 3,614 | 15,961 | |||||||||
Total deferred tax liabilities | $ | 42,395 | $ | 59,467 | |||||||
Deferred tax valuation allowance | $ | 6,700 | $ | 147,499 | |||||||
Net deferred tax assets | $ | 137,248 | $ | — | |||||||
The valuation allowance for deferred tax assets as of December 31, 2013 and 2012 was $6.7 million and $147.5 million, respectively. The net change in the total valuation allowance was a decrease of $140.8 million and $14.8 million in 2013 and 2012, respectively. Of the total decrease in the valuation allowance in 2013, $132.1 million was recognized as income tax benefit and $8.7 million was a benefit to AOCI, compared to $15.9 million recognized as income tax benefit and a $1.1 million charged against AOCI in 2012. | |||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. | |||||||||||
In the first quarter of 2013, the Company reversed a significant portion of the valuation allowance that was established against our net DTA during the third quarter of 2009. The valuation allowance was established during 2009 due to uncertainty at the time regarding our ability to generate sufficient future taxable income to fully realize the benefit of our net DTA. The quarter ended March 31, 2013 marked our ninth consecutive quarter of profitability. Based on this earnings performance trend, improvements in our financial condition, asset quality and capital ratios, and the expectation of continued profitability, the Company determined that it was more likely than not that a significant portion of our net DTA would be realized. The net impact of reversing the valuation allowance and recording the provision for income tax expense was a net income tax benefit of $119.8 million in the first quarter of 2013. | |||||||||||
At December 31, 2013, the Company had net operating loss carryforwards for Federal income tax purposes of $206.5 million, which are available to offset future Federal taxable income, if any, through 2030. At December 31, 2013, the Company had net operating loss carryforwards for Hawaii and California state income tax purposes of $189.3 million and $40.6 million, respectively, which are available to offset future state taxable income through 2030 for Hawaii and 2031 for California. In addition, we have state tax credit carryforwards of $23.8 million that do not expire, and federal tax credit carryforwards of $13.6 million, of which $11.1 million expire in 20 years, and $2.5 million do not expire. | |||||||||||
As further described in Note 14, to help protect the Company’s tax benefits, the Company implemented the Tax Benefits Preservation Plan on November 23, 2011 and the Protective Charter Amendment on January 26, 2011. | |||||||||||
At December 31, 2013, we have no unrecognized tax benefits that, if recognized would favorably affect the effective income tax rate in future periods. We do not expect our unrecognized tax benefits to change significantly over the next 12 months. | |||||||||||
We are subject to U.S. Federal income tax as well as income tax of multiple state jurisdictions. Taxable years through 2009 are closed. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
The following table presents the components of other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011, by component: | ||||||||||||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (43,687 | ) | $ | (15,577 | ) | $ | (28,110 | ) | |||||
Less: Reclassification adjustment for gains realized in net income | (6,266 | ) | (2,511 | ) | (3,755 | ) | ||||||||
Net unrealized losses on investment securities | (49,953 | ) | (18,088 | ) | (31,865 | ) | ||||||||
Net unrealized gains on derivatives: | ||||||||||||||
Reclassification adjustment for losses realized in net income | 394 | (10,599 | ) | 10,993 | ||||||||||
Net unrealized gains on derivatives | 394 | (10,599 | ) | 10,993 | ||||||||||
Defined benefit plans: | ||||||||||||||
Net actuarial gains arising during the period | 6,952 | 2,591 | 4,361 | |||||||||||
Amortization of net actuarial losses | 2,461 | 986 | 1,475 | |||||||||||
Amortization of net transition obligation | 17 | 7 | 10 | |||||||||||
Amortization of prior service cost | 18 | 7 | 11 | |||||||||||
Defined benefit plans, net | 9,448 | 3,591 | 5,857 | |||||||||||
Other comprehensive loss | $ | (40,111 | ) | $ | (25,096 | ) | $ | (15,015 | ) | |||||
Year Ended December 31, 2012 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (2,653 | ) | $ | — | $ | (2,653 | ) | ||||||
Less: Reclassification adjustment for losses realized in net income | 1,382 | — | 1,382 | |||||||||||
Net unrealized losses on investment securities | (1,271 | ) | — | (1,271 | ) | |||||||||
Net unrealized losses on derivatives: | ||||||||||||||
Reclassification adjustment for gains realized in net income | (434 | ) | — | (434 | ) | |||||||||
Net unrealized losses on derivatives | (434 | ) | — | (434 | ) | |||||||||
Defined benefit plans: | ||||||||||||||
Net actuarial losses arising during the period | (3,653 | ) | — | (3,653 | ) | |||||||||
Amortization of net actuarial losses | 2,381 | 51 | 2,330 | |||||||||||
Amortization of net transition obligation | 17 | — | 17 | |||||||||||
Amortization of prior service cost | 17 | — | 17 | |||||||||||
Defined benefit plans, net | (1,238 | ) | 51 | (1,289 | ) | |||||||||
Other comprehensive loss | $ | (2,943 | ) | $ | 51 | $ | (2,994 | ) | ||||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||
Net unrealized gains on investment securities: | ||||||||||||||
Net unrealized gains arising during the period | $ | 22,190 | $ | — | $ | 22,190 | ||||||||
Less: Reclassification adjustment for gains realized in net income | (1,164 | ) | — | (1,164 | ) | |||||||||
Net unrealized gains on investment securities | 21,026 | — | 21,026 | |||||||||||
Net unrealized losses on derivatives: | ||||||||||||||
Reclassification adjustment for gains realized in net income | (3,235 | ) | — | (3,235 | ) | |||||||||
Net unrealized losses on derivatives | (3,235 | ) | — | (3,235 | ) | |||||||||
Defined benefit plans: | ||||||||||||||
Net actuarial losses arising during the period | (3,274 | ) | — | (3,274 | ) | |||||||||
Amortization of net actuarial losses | 2,246 | 70 | 2,176 | |||||||||||
Amortization of net transition obligation | 18 | — | 18 | |||||||||||
Amortization of prior service cost | 18 | — | 18 | |||||||||||
Defined benefit plans, net | (992 | ) | 70 | (1,062 | ) | |||||||||
Other comprehensive income | $ | 16,799 | $ | 70 | $ | 16,729 | ||||||||
The following table presents the changes in each component of AOCI, net of tax, for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
Defined | Accumulated Other | |||||||||||||
Investment | Benefit | Comprehensive | ||||||||||||
Securities | Derivatives | Plans | Income (Loss) | |||||||||||
(Dollars in thousands) | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Balance at beginning of period | $ | 22,740 | $ | (10,993 | ) | $ | (12,577 | ) | $ | (830 | ) | |||
Other comprehensive income (loss) before reclassifications | (28,110 | ) | — | 4,361 | (23,749 | ) | ||||||||
Amounts reclassified from AOCI | (3,755 | ) | 10,993 | 1,496 | 8,734 | |||||||||
Total other comprehensive income (loss) | (31,865 | ) | 10,993 | 5,857 | (15,015 | ) | ||||||||
Balance at end of period | $ | (9,125 | ) | $ | — | $ | (6,720 | ) | $ | (15,845 | ) | |||
Year Ended December 31, 2012 | ||||||||||||||
Balance at beginning of period | $ | 24,011 | $ | (10,559 | ) | $ | (11,288 | ) | $ | 2,164 | ||||
Other comprehensive loss before reclassifications | (2,653 | ) | — | (3,653 | ) | (6,306 | ) | |||||||
Amounts reclassified from AOCI | 1,382 | (434 | ) | 2,364 | 3,312 | |||||||||
Total other comprehensive loss | (1,271 | ) | (434 | ) | (1,289 | ) | (2,994 | ) | ||||||
Balance at end of period | $ | 22,740 | $ | (10,993 | ) | $ | (12,577 | ) | $ | (830 | ) | |||
Year Ended December 31, 2011 | ||||||||||||||
Balance at beginning of period | $ | 2,985 | $ | (7,324 | ) | $ | (10,226 | ) | $ | (14,565 | ) | |||
Other comprehensive income (loss) before reclassifications | 22,190 | — | (3,274 | ) | 18,916 | |||||||||
Amounts reclassified from AOCI | (1,164 | ) | (3,235 | ) | 2,212 | (2,187 | ) | |||||||
Total other comprehensive income (loss) | 21,026 | (3,235 | ) | (1,062 | ) | 16,729 | ||||||||
Balance at end of period | $ | 24,011 | $ | (10,559 | ) | $ | (11,288 | ) | $ | 2,164 | ||||
The following table presents the amounts reclassified out of each component of AOCI for the years ended December 31, 2013, 2012 and 2011: | ||||||||||||||
Affected Line Item in the | ||||||||||||||
Details about AOCI Components | Statement Where Net | |||||||||||||
(Dollars in thousands) | Amount Reclassified from AOCI | Income is Presented | ||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Sale of investment securities available for sale | $ | 6,266 | $ | (1,382 | ) | $ | 1,164 | Investment securities gain (loss) | ||||||
(2,511 | ) | — | — | Tax expense | ||||||||||
$ | 3,755 | $ | (1,382 | ) | $ | 1,164 | Net of tax | |||||||
Unrealized gains (losses) on derivatives | $ | (394 | ) | $ | 434 | $ | 3,235 | Interest income | ||||||
(10,599 | ) | — | — | Tax expense | ||||||||||
$ | (10,993 | ) | $ | 434 | $ | 3,235 | Net of tax | |||||||
Amortization of defined benefit plan items | ||||||||||||||
Net actuarial losses | $ | (2,461 | ) | $ | (2,381 | ) | $ | (2,246 | ) | -1 | ||||
Net transition obligation | (17 | ) | (17 | ) | (18 | ) | -1 | |||||||
Prior service cost | (18 | ) | (17 | ) | (18 | ) | -1 | |||||||
(2,496 | ) | (2,415 | ) | (2,282 | ) | Total before tax | ||||||||
1,000 | 51 | 70 | Tax benefit | |||||||||||
$ | (1,496 | ) | $ | (2,364 | ) | $ | (2,212 | ) | Net of tax | |||||
Total reclassifications for the period | $ | (8,734 | ) | $ | (3,312 | ) | $ | 2,187 | Net of tax | |||||
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
EARNINGS PER SHARE | ' | ||||||||||
21. EARNINGS PER SHARE | |||||||||||
The table below presents the information used to compute basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except per share data) | |||||||||||
Net income | $ | 172,075 | $ | 47,421 | $ | 36,571 | |||||
Preferred stock dividends, accretion of discount and conversion of preferred stock to common stock | — | — | (83,897 | ) | |||||||
Net income available to common shareholders | $ | 172,075 | $ | 47,421 | $ | 120,468 | |||||
Weighted average shares outstanding - basic | 41,961 | 41,720 | 35,891 | ||||||||
Dilutive effect of employee stock options and awards | 341 | 278 | 415 | ||||||||
Dilutive effect of deferred salary restricted stock units | 1 | 64 | 16 | ||||||||
Dilutive effect of Treasury warrants | 14 | 22 | 20 | ||||||||
Weighted average shares outstanding - diluted | 42,317 | 42,084 | 36,342 | ||||||||
Basic earnings per share | $ | 4.1 | $ | 1.14 | $ | 3.36 | |||||
Diluted earnings per share | $ | 4.07 | $ | 1.13 | $ | 3.31 | |||||
A total of 24,526, 316,188, and 40,166 potentially dilutive securities have been excluded from the dilutive share calculation for the year ended December 31, 2013, 2012 and 2011, respectively, as their effect was antidilutive. |
CONTINGENT_LIABILITIES_AND_OTH
CONTINGENT LIABILITIES AND OTHER COMMITMENTS | 12 Months Ended |
Dec. 31, 2013 | |
CONTINGENT LIABILITIES AND OTHER COMMITMENTS | ' |
CONTINGENT LIABILITIES AND OTHER COMMITMENTS | ' |
22. CONTINGENT LIABILITIES AND OTHER COMMITMENTS | |
The Company and its subsidiaries are involved in legal actions arising in the ordinary course of business. Management, after consultation with legal counsel, believes the ultimate disposition of those matters will not have a material adverse effect on our consolidated financial statements. | |
In the normal course of business there are outstanding contingent liabilities and other commitments such as unused letters of credit, items held for collections and unsold traveler’s checks, which are not reflected in the accompanying consolidated financial statements. Management does not anticipate any material losses as a result of these transactions. |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | |||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | |||||||
23. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ||||||||
We are a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees written, forward foreign exchange contracts, and interest rate contracts. Those instruments involve, to varying degrees, elements of credit, interest rate and foreign exchange risk in excess of the amounts recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. | ||||||||
Our exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. For forward foreign exchange contracts and interest rate contracts, the contract amounts do not represent exposure to credit loss. We control the credit risk of these contracts through credit approvals, limits and monitoring procedures. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. | ||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. | ||||||||
Standby letters of credit and financial guarantees written are conditional commitments issued by us to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. We hold collateral supporting those commitments for which collateral is deemed necessary. | ||||||||
Interest rate options issued on residential mortgage loans expose us to interest rate risk, which is economically hedged with forward interest rate contracts. These derivatives are carried at fair value with changes in fair value recorded as a component of other operating income in the consolidated statements of income. | ||||||||
Forward interest rate contracts represent commitments to purchase or sell loans at a future date at a specified price. Risks arise from the possible inability of counter-parties to meet the terms of their contracts and from movements in market rates. Management reviews and approves the creditworthiness of the counterparties to its forward interest rate contracts. | ||||||||
Forward foreign exchange contracts represent commitments to purchase or sell foreign currencies at a future date at a specified price. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movements in foreign currency exchange rates. Management reviews and approves the creditworthiness of its forward foreign exchange counterparties. At December 31, 2013 and 2012, we did not have any forward foreign exchange contracts. | ||||||||
At December 31, 2013 and 2012, financial instruments with off-balance sheet risk were as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 652,717 | $ | 554,477 | ||||
Standby letters of credit and financial guarantees written | 1,023 | 13,813 | ||||||
Financial instruments whose contract amounts exceed the amount of credit risk: | ||||||||
Interest rate options | 37,093 | 67,072 | ||||||
Forward interest rate contracts | 24,244 | 49,222 |
FAIR_VALUE_OF_ASSETS_AND_LIABI
FAIR VALUE OF ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE OF ASSETS AND LIABILITIES | ' | ||||||||||||||||
FAIR VALUE OF ASSETS AND LIABILITIES | ' | ||||||||||||||||
24. FAIR VALUE OF ASSETS AND LIABILITIES | |||||||||||||||||
Disclosures about Fair Value of Financial Instruments | |||||||||||||||||
Fair value estimates, methods and assumptions are set forth below for our financial instruments. | |||||||||||||||||
Short-Term Financial Instruments | |||||||||||||||||
The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from banks, interest-bearing deposits in other banks, accrued interest receivable, the majority of short-term borrowings and accrued interest payable. | |||||||||||||||||
Investment Securities | |||||||||||||||||
The fair value of investment securities is based on market price quotations received from securities dealers. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. | |||||||||||||||||
Loans | |||||||||||||||||
Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company’s various loan types and are derived from available market information, as well as specific borrower information. The fair value of loans are not based on the notion of exit price. | |||||||||||||||||
Loans Held for Sale | |||||||||||||||||
The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans net of applicable selling costs on our consolidated balance sheets. | |||||||||||||||||
Other Interest Earning Assets | |||||||||||||||||
The equity investment in common stock of the FHLB, which is redeemable for cash at par value, is reported at its par value. | |||||||||||||||||
Deposit Liabilities | |||||||||||||||||
The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||
Long-Term Debt | |||||||||||||||||
The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. | |||||||||||||||||
Off-Balance Sheet Financial Instruments | |||||||||||||||||
The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. | |||||||||||||||||
For derivative financial instruments, the fair values are based upon current settlement values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options. | |||||||||||||||||
Limitations | |||||||||||||||||
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 at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||
Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in many of the estimates. | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets for | Significant Other | Unobservable | |||||||||||||||
Carrying | Estimated | Identical Assets | Observable Inputs | Inputs | |||||||||||||
amount | fair value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | $ | 45,092 | $ | 45,092 | $ | 45,092 | $ | — | $ | — | |||||||
Interest-bearing deposits in other banks | 4,256 | 4,256 | 4,256 | — | — | ||||||||||||
Investment securities | 1,660,046 | 1,646,704 | 875 | 1,635,311 | 10,518 | ||||||||||||
Loans held for sale | 12,370 | 12,370 | — | — | 12,370 | ||||||||||||
Net loans and leases | 2,546,781 | 2,430,282 | — | 64,705 | 2,365,577 | ||||||||||||
Accrued interest receivable | 14,072 | 14,072 | 14,072 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | 891,017 | 891,017 | 891,017 | — | — | ||||||||||||
Interest-bearing demand and savings deposits | 1,935,635 | 1,935,635 | 1,935,635 | — | — | ||||||||||||
Time deposits | 1,109,521 | 1,111,319 | — | — | 1,111,319 | ||||||||||||
Short-term debt | 8,015 | 8,015 | — | 8,015 | — | ||||||||||||
Long-term debt | 92,799 | 39,446 | — | 39,446 | — | ||||||||||||
Accrued interest payable (included in other liabilities) | 1,040 | 1,040 | 1,040 | — | — | ||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||
Commitments to extend credit | 652,717 | 3,264 | — | 3,264 | — | ||||||||||||
Standby letters of credit and financial guarantees written | 1,023 | 8 | — | 8 | — | ||||||||||||
Interest rate options | 37,093 | 70 | — | 70 | — | ||||||||||||
Forward interest rate contracts | 24,244 | 210 | — | 210 | — | ||||||||||||
December 31, 2012 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | $ | 56,473 | $ | 56,473 | $ | 56,473 | $ | — | $ | — | |||||||
Interest-bearing deposits in other banks | 120,902 | 120,902 | 120,902 | — | — | ||||||||||||
Investment securities | 1,698,593 | 1,699,273 | 906 | 1,685,541 | 12,826 | ||||||||||||
Loans held for sale | 38,283 | 38,283 | — | — | 38,283 | ||||||||||||
Net loans and leases | 2,107,531 | 2,083,514 | — | 108,081 | 1,975,433 | ||||||||||||
Accrued interest receivable | 13,896 | 13,896 | 13,896 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | 843,292 | 843,292 | 843,292 | — | — | ||||||||||||
Interest-bearing demand and savings deposits | 1,858,849 | 1,858,849 | 1,858,849 | — | — | ||||||||||||
Time deposits | 978,631 | 981,059 | — | — | 981,059 | ||||||||||||
Long-term debt | 108,281 | 43,156 | — | 43,156 | — | ||||||||||||
Accrued interest payable (included in other liabilities) | 13,131 | 13,131 | 13,131 | — | — | ||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||
Commitments to extend credit | 554,477 | 2,772 | — | 2,772 | — | ||||||||||||
Standby letters of credit and financial guarantees written | 13,813 | 104 | — | 104 | — | ||||||||||||
Interest rate options | 67,072 | 106 | — | 106 | — | ||||||||||||
Forward interest rate contracts | 49,222 | (353 | ) | — | (353 | ) | — | ||||||||||
Fair Value Measurements | |||||||||||||||||
We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: | |||||||||||||||||
· Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. | |||||||||||||||||
· 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 3 – Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that requires the use of significant judgment or estimation. | |||||||||||||||||
We base our fair values on the price that we would expect to receive if an asset were sold or pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. | |||||||||||||||||
We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available for sale securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans and mortgage servicing rights. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. | |||||||||||||||||
There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2013. | |||||||||||||||||
The following table below presents the balances of assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Fair Value at Reporting Date Using | |||||||||||||||||
Fair | Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Debt securities: | |||||||||||||||||
States and political subdivisions | $ | 179,357 | $ | — | $ | 168,839 | $ | 10,518 | |||||||||
Corporate securities | 158,095 | — | 158,095 | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government sponsored entities | 927,626 | — | 927,626 | — | |||||||||||||
Non-agency collateralized mortgage obligations | 142,046 | — | 142,046 | — | |||||||||||||
Other | 875 | 875 | — | — | |||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | 279 | — | 279 | — | |||||||||||||
Total | $ | 1,408,278 | $ | 875 | $ | 1,396,885 | $ | 10,518 | |||||||||
December 31, 2012 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Debt securities: | |||||||||||||||||
U.S. Government sponsored entities | $ | 280,939 | $ | — | $ | 280,939 | $ | — | |||||||||
States and political subdivisions | 185,911 | — | 173,085 | 12,826 | |||||||||||||
Corporate securities | 127,946 | — | 127,946 | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government sponsored entities | 941,043 | — | 941,043 | — | |||||||||||||
Other | 906 | 906 | — | — | |||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | (248 | ) | — | (248 | ) | — | |||||||||||
Amended TARP warrant | (819 | ) | — | (819 | ) | — | |||||||||||
Total | $ | 1,535,678 | $ | 906 | $ | 1,521,946 | $ | 12,826 | |||||||||
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: | |||||||||||||||||
Available for sale debt | |||||||||||||||||
securities - States and | |||||||||||||||||
political subdivisions | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance at December 31, 2011 | $ | 12,994 | |||||||||||||||
Principal payments received | (377 | ) | |||||||||||||||
Unrealized net gain included in other comprehensive income | 209 | ||||||||||||||||
Balance at December 31, 2012 | $ | 12,826 | |||||||||||||||
Principal payments received | (2,797 | ) | |||||||||||||||
Purchases, sales, issuances and settlements, net | 1,146 | ||||||||||||||||
Unrealized net loss included in other comprehensive income | (657 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 10,518 | |||||||||||||||
Within the state and political subdivisions debt securities category, the Company holds four mortgage revenue bonds issued by the City & County of Honolulu with an aggregate fair value of $10.5 million. The Company estimates the fair value of its mortgage revenue bonds by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. | |||||||||||||||||
The significant unobservable input used in the fair value measurement of the Company’s mortgage revenue bonds is the weighted average discount rate. As of December 31, 2013, the weighted average discount rate utilized was 4.63%, which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. | |||||||||||||||||
For assets measured at fair value on a nonrecurring basis that were recorded at fair value on our balance sheet, the following table provides the level of valuation assumptions used to determine the respective fair values: | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | Losses | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans (1) | $ | 64,705 | $ | — | $ | 64,705 | $ | — | $ | 3,298 | |||||||
Other real estate (2) | 5,163 | — | 5,163 | — | 362 | ||||||||||||
$ | 3,660 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||
Impaired loans (1) | $ | 108,081 | $ | — | $ | 108,081 | $ | — | $ | 11,852 | |||||||
Other real estate (2) | 10,686 | — | 10,686 | — | 3,529 | ||||||||||||
$ | 15,381 | ||||||||||||||||
(1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral. | |||||||||||||||||
(2) Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
25. SEGMENT INFORMATION | ||||||||||||||
We have the following three reportable segments: Banking Operations, Treasury and All Others. The segments are consistent with our internal functional reporting lines and are managed separately because each unit has different target markets, technological requirements, marketing strategies and specialized skills. | ||||||||||||||
The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending and servicing, indirect auto lending, trust services, retail brokerage services and our retail branch offices, which provide a full range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company’s investment securities portfolio and wholesale funding activities. The All Others segment includes activities not captured by the Banking Operations or Treasury segments described above and includes activities such as electronic banking, data processing and management of bank owned properties. | ||||||||||||||
The accounting policies of the segments are consistent with those described in Note 1. The majority of the Company’s net income is derived from net interest income. Accordingly, management focuses primarily on net interest income, rather than gross interest income and expense amounts, in evaluating segment profitability. | ||||||||||||||
Intersegment net interest income (expense) was allocated to each segment based upon a funds transfer pricing process that assigns costs of funds to assets and earnings credits to liabilities based on market interest rates that reflect interest rate sensitivity and maturity characteristics. All administrative and overhead expenses are allocated to the segments at cost. Cash, investment securities, loans and leases and their related balances are allocated to the segment responsible for acquisition and maintenance of those assets. Segment assets also include all premises and equipment used directly in segment operations. | ||||||||||||||
Segment profits (losses) and assets are provided in the following table for the periods indicated: | ||||||||||||||
Banking | ||||||||||||||
Operations | Treasury | All Others | Total | |||||||||||
(Dollars in thousands) | ||||||||||||||
Year ended December 31, 2013: | ||||||||||||||
Net interest income | $ | 101,822 | $ | 31,287 | $ | — | $ | 133,109 | ||||||
Intersegment net interest income (expense) | 14,761 | (27,807 | ) | 13,046 | — | |||||||||
Credit (provision) for loan and lease losses | 11,310 | — | — | 11,310 | ||||||||||
Other operating income | 49,294 | 4,185 | 1,466 | 54,945 | ||||||||||
Other operating expense | (79,552 | ) | (3,938 | ) | (56,046 | ) | (139,536 | ) | ||||||
Administrative and overhead expense allocation | (55,052 | ) | (937 | ) | 55,989 | — | ||||||||
Income taxes | 117,088 | 218 | (5,059 | ) | 112,247 | |||||||||
Net income | $ | 159,671 | $ | 3,008 | $ | 9,396 | $ | 172,075 | ||||||
At December 31, 2013: | ||||||||||||||
Investment securities | $ | — | $ | 1,660,046 | $ | — | $ | 1,660,046 | ||||||
Loans and leases (including loans held for sale) | 2,642,971 | — | — | 2,642,971 | ||||||||||
Other | 108,639 | 257,032 | 72,510 | 438,181 | ||||||||||
Total assets | $ | 2,751,610 | $ | 1,917,078 | $ | 72,510 | $ | 4,741,198 | ||||||
Year ended December 31, 2012: | ||||||||||||||
Net interest income | $ | 92,545 | $ | 27,166 | $ | — | $ | 119,711 | ||||||
Intersegment net interest income (expense) | 32,954 | (22,228 | ) | (10,726 | ) | — | ||||||||
Credit (provision) for loan and lease losses | 18,885 | — | — | 18,885 | ||||||||||
Other operating income | 55,838 | 5,209 | (304 | ) | 60,743 | |||||||||
Other operating expense | (91,266 | ) | (1,868 | ) | (58,784 | ) | (151,918 | ) | ||||||
Administrative and overhead expense allocation | (57,640 | ) | (939 | ) | 58,579 | — | ||||||||
Net income (loss) | $ | 51,316 | $ | 7,340 | $ | (11,235 | ) | $ | 47,421 | |||||
At December 31, 2012: | ||||||||||||||
Investment securities | $ | — | $ | 1,698,593 | $ | — | $ | 1,698,593 | ||||||
Loans and leases (including loans held for sale) | 2,242,227 | — | — | 2,242,227 | ||||||||||
Other | (7,267 | ) | 363,815 | 73,000 | 429,548 | |||||||||
Total assets | $ | 2,234,960 | $ | 2,062,408 | $ | 73,000 | $ | 4,370,368 | ||||||
Year ended December 31, 2011: | ||||||||||||||
Net interest income | $ | 95,182 | $ | 22,639 | $ | — | $ | 117,821 | ||||||
Intersegment net interest income (expense) | 45,564 | (18,609 | ) | (26,955 | ) | — | ||||||||
Credit (provision) for loan and lease losses | 40,690 | — | — | 40,690 | ||||||||||
Other operating income | 48,686 | 7,312 | 1,004 | 57,002 | ||||||||||
Other operating expense | (115,910 | ) | (7,163 | ) | (55,869 | ) | (178,942 | ) | ||||||
Administrative and overhead expense allocation | (54,408 | ) | (627 | ) | 55,035 | — | ||||||||
Net income (loss) | $ | 59,804 | $ | 3,552 | $ | (26,785 | ) | $ | 36,571 | |||||
At December 31, 2011: | ||||||||||||||
Investment securities | $ | — | $ | 1,493,925 | $ | — | $ | 1,493,925 | ||||||
Loans and leases (including loans held for sale) | 2,114,737 | — | — | 2,114,737 | ||||||||||
Other | 23,858 | 429,141 | 71,204 | 524,203 | ||||||||||
Total assets | $ | 2,138,595 | $ | 1,923,066 | $ | 71,204 | $ | 4,132,865 | ||||||
PARENT_COMPANY_AND_REGULATORY_
PARENT COMPANY AND REGULATORY RESTRICTIONS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
PARENT COMPANY AND REGULATORY RESTRICTIONS | ' | ||||||||||||||||
PARENT COMPANY AND REGULATORY RESTRICTIONS | ' | ||||||||||||||||
26. PARENT COMPANY AND REGULATORY RESTRICTIONS | |||||||||||||||||
At December 31, 2013, the accumulated deficit of the parent company, Central Pacific Financial Corp., included $241.1 million of equity in undistributed losses of Central Pacific Bank. | |||||||||||||||||
Central Pacific Bank, as a Hawaii state-chartered bank, may only pay dividends to the extent it has retained earnings as defined under Hawaii banking law (“Statutory Retained Earnings”), which differs from GAAP retained earnings. As of December 31, 2013, the bank had Statutory Retained Earnings of $240.4 million. For further information, see Note 14. | |||||||||||||||||
In December 2009, the Board of Directors of Central Pacific Bank agreed to the Consent Order with the FDIC and DFI. In May 2011, the Consent Order was lifted and replaced with the Bank MOU. On October 26, 2012, the Bank MOU was terminated, as described in Note 2. | |||||||||||||||||
In July 2010, Central Pacific Financial Corp. entered into the Written Agreement with the FRBSF, as described in Note 2, which was terminated on February 12, 2013. | |||||||||||||||||
Section 131 of the Federal Deposit Insurance Corporation Improvement Act (“FDICIA”) required the Board of Governors of the Federal Reserve System, FDIC, and the Comptroller of the Currency (collectively, the “Agencies”) to develop a mechanism to take prompt corrective action to resolve the problems of insured depository institutions. The final rules to implement FDICIA’s Prompt Corrective Action provisions established minimum regulatory capital standards to determine an insured depository institution’s capital category. However, the Agencies may impose higher minimum standards on individual institutions or may downgrade an institution from one capital category to a lower capital category because of safety and soundness concerns. | |||||||||||||||||
The Prompt Corrective Action provisions impose certain restrictions on institutions that are undercapitalized. The restrictions become increasingly more severe as an institution’s capital category declines from undercapitalized to critically undercapitalized. | |||||||||||||||||
The following table sets forth actual and required capital and capital ratios for the Company and the bank, as well as the minimum capital adequacy requirements applicable generally to all financial institutions as of the dates indicated. The Company’s and the bank’s leverage capital, Tier 1 and total risk-based capital ratios as of December 31, 2013 were above the levels required for a “well-capitalized” regulatory designation. | |||||||||||||||||
Minimum required for | Minimum required to | ||||||||||||||||
Actual | capital adequacy purposes | be well-capitalized | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Company | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Leverage capital | $ | 632,724 | 13.7 | % | $ | 184,995 | 4 | % | $ | 231,244 | 5 | % | |||||
Tier 1 risk-based capital | 632,724 | 20.3 | 124,671 | 4 | 187,007 | 6 | |||||||||||
Total risk-based capital | 672,317 | 21.6 | 249,343 | 8 | 311,678 | 10 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Leverage capital | $ | 609,394 | 14.3 | % | $ | 170,176 | 4 | % | $ | 212,720 | 5 | % | |||||
Tier 1 risk-based capital | 609,394 | 22.5 | 108,128 | 4 | 162,192 | 6 | |||||||||||
Total risk-based capital | 644,044 | 23.8 | 216,256 | 8 | 270,320 | 10 | |||||||||||
Central Pacific Bank | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Leverage capital | $ | 610,753 | 13.2 | % | $ | 184,736 | 4 | % | $ | 230,920 | 5 | % | |||||
Tier 1 risk-based capital | 610,753 | 19.6 | 124,425 | 4 | 186,637 | 6 | |||||||||||
Total risk-based capital | 650,216 | 20.9 | 248,850 | 8 | 311,062 | 10 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Leverage capital | $ | 580,860 | 13.6 | % | $ | 170,274 | 4 | % | $ | 212,843 | 5 | % | |||||
Tier 1 risk-based capital | 580,860 | 21.5 | 108,229 | 4 | 162,343 | 6 | |||||||||||
Total risk-based capital | 615,523 | 22.7 | 216,457 | 8 | 270,572 | 10 | |||||||||||
Condensed financial statements, solely of the parent company, Central Pacific Financial Corp., follow: | |||||||||||||||||
Central Pacific Financial Corp. | |||||||||||||||||
Condensed Balance Sheets | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 19,629 | $ | 46,686 | |||||||||||||
Investment securities available for sale | 875 | 906 | |||||||||||||||
Investment in subsidiary bank, at equity in underlying net assets | 710,122 | 581,248 | |||||||||||||||
Investment in other subsidiaries, at equity in underlying assets | 554 | 549 | |||||||||||||||
Accrued interest receivable and other assets | 23,202 | 6,845 | |||||||||||||||
Total assets | $ | 754,382 | $ | 636,234 | |||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||
Long-term debt | $ | 92,785 | $ | 108,249 | |||||||||||||
Other liabilities | 1,484 | 23,163 | |||||||||||||||
Total liabilities | 94,269 | 131,412 | |||||||||||||||
Shareholders’ equity: | |||||||||||||||||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at December 31, 2013 and 2012 | — | — | |||||||||||||||
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding 42,112,633 and 41,867,046 shares at December 31, 2013 and 2012, respectively | 784,547 | 784,512 | |||||||||||||||
Surplus | 75,498 | 70,567 | |||||||||||||||
Accumulated deficit | (184,087 | ) | (349,427 | ) | |||||||||||||
Accumulated other comprehensive loss | (15,845 | ) | (830 | ) | |||||||||||||
Total shareholders’ equity | 660,113 | 504,822 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 754,382 | $ | 636,234 | |||||||||||||
Central Pacific Financial Corp. | |||||||||||||||||
Condensed Statements of Income | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Income: | |||||||||||||||||
Interest income: | |||||||||||||||||
Interest from subsidiary banks | $ | 30 | $ | 48 | $ | 109 | |||||||||||
Other income | 2,001 | 9 | 1,047 | ||||||||||||||
Total income | 2,031 | 57 | 1,156 | ||||||||||||||
Expense: | |||||||||||||||||
Interest on long-term debt | 3,118 | 3,687 | 3,392 | ||||||||||||||
Other expenses | 2,679 | 3,081 | 3,584 | ||||||||||||||
Total expenses | 5,797 | 6,768 | 6,976 | ||||||||||||||
Loss before income taxes and equity in undistributed income of subsidiaries | (3,766 | ) | (6,711 | ) | (5,820 | ) | |||||||||||
Income tax benefit | (31,891 | ) | — | — | |||||||||||||
Income (loss) before equity in undistributed income of subsidiaries | 28,125 | (6,711 | ) | (5,820 | ) | ||||||||||||
Equity in undistributed income of subsidiary bank | 143,945 | 54,124 | 42,377 | ||||||||||||||
Equity in undistributed income of other subsidiaries | 5 | 8 | 14 | ||||||||||||||
Net income | $ | 172,075 | $ | 47,421 | $ | 36,571 | |||||||||||
Central Pacific Financial Corp. | |||||||||||||||||
Condensed Statements of Cash Flows | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 172,075 | $ | 47,421 | $ | 36,571 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Deferred income tax benefit | (19,440 | ) | — | — | |||||||||||||
Equity in income of subsidiary bank | (143,945 | ) | (54,124 | ) | (42,377 | ) | |||||||||||
Equity in undistributed income of other subsidiaries | (5 | ) | (8 | ) | (14 | ) | |||||||||||
Share-based compensation | 4,931 | 90 | 153 | ||||||||||||||
Other, net | (18,548 | ) | 7,681 | 4,755 | |||||||||||||
Net cash provided by (used in) operating activities | (4,932 | ) | 1,060 | (912 | ) | ||||||||||||
Cash flows from investing activities | |||||||||||||||||
Investment in subsidiary bank | — | — | (283,000 | ) | |||||||||||||
Distribution from unconsolidated subsidiaries | 9,000 | — | — | ||||||||||||||
Contributions to unconsolidated subsidiaries | (9,000 | ) | — | — | |||||||||||||
Net cash used in investing activities | — | — | (283,000 | ) | |||||||||||||
Cash flows from financing activities | |||||||||||||||||
Net proceeds from issuance of common stock and stock option exercises | 74 | — | 323,538 | ||||||||||||||
Repayments of long-term debt | (15,464 | ) | — | — | |||||||||||||
Dividends paid | (6,735 | ) | — | — | |||||||||||||
Net cash provided by (used in) financing activities | (22,125 | ) | — | 323,538 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (27,057 | ) | 1,060 | 39,626 | |||||||||||||
Cash and cash equivalents | |||||||||||||||||
At beginning of year | 46,686 | 45,626 | 6,000 | ||||||||||||||
At end of year | $ | 19,629 | $ | 46,686 | $ | 45,626 | |||||||||||
UNAUDITED_QUARTERLY_FINANCIAL_
UNAUDITED QUARTERLY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
UNAUDITED QUARTERLY FINANCIAL INFORMATION | ' | ||||||||||||||||
UNAUDITED QUARTERLY FINANCIAL INFORMATION | ' | ||||||||||||||||
27. UNAUDITED QUARTERLY FINANCIAL INFORMATION | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Full Year | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
2013:00:00 | |||||||||||||||||
Total interest income | $ | 32,595 | $ | 34,992 | $ | 35,558 | $ | 37,133 | $ | 140,278 | |||||||
Total interest expense | 1,926 | 1,819 | 1,787 | 1,637 | 7,169 | ||||||||||||
Net interest income | 30,669 | 33,173 | 33,771 | 35,496 | 133,109 | ||||||||||||
Provision (credit) for loan and lease losses | (6,561 | ) | (227 | ) | (3,189 | ) | (1,333 | ) | (11,310 | ) | |||||||
Net interest income after provision for loan and lease losses | 37,230 | 33,400 | 36,960 | 36,829 | 144,419 | ||||||||||||
Investment securities gains | — | — | — | 482 | 482 | ||||||||||||
Income before income taxes | 17,507 | 16,212 | 12,378 | 13,731 | 59,828 | ||||||||||||
Net income | 137,309 | 14,267 | 10,204 | 10,295 | 172,075 | ||||||||||||
Basic earnings per share | 3.28 | 0.34 | 0.24 | 0.24 | 4.1 | ||||||||||||
Diluted earnings per share | 3.25 | 0.34 | 0.24 | 0.24 | 4.07 | ||||||||||||
2012:00:00 | |||||||||||||||||
Total interest income | $ | 32,903 | $ | 32,479 | $ | 31,674 | $ | 31,389 | $ | 128,445 | |||||||
Total interest expense | 2,401 | 2,220 | 2,114 | 1,999 | 8,734 | ||||||||||||
Net interest income | 30,502 | 30,259 | 29,560 | 29,390 | 119,711 | ||||||||||||
Provision (credit) for loan and lease losses | (4,990 | ) | (6,630 | ) | (4,982 | ) | (2,283 | ) | (18,885 | ) | |||||||
Net interest income after provision for loan and lease losses | 35,492 | 36,889 | 34,542 | 31,673 | 138,596 | ||||||||||||
Investment securities gains | — | — | 789 | — | 789 | ||||||||||||
Income before income taxes | 13,478 | 10,812 | 10,721 | 12,410 | 47,421 | ||||||||||||
Net income | 13,478 | 10,812 | 10,721 | 12,410 | 47,421 | ||||||||||||
Basic earnings per share | 0.32 | 0.26 | 0.26 | 0.3 | 1.14 | ||||||||||||
Diluted earnings per share | 0.32 | 0.26 | 0.26 | 0.29 | 1.13 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
28. SUBSEQUENT EVENTS | |
On February 21, 2014, we announced a tender offer to purchase for cash up to $68.8 million in value of shares of our common stock at a price not greater than $21.00 nor less than $18.50 per share (the “Tender Offer”.) | |
Upon the terms and subject to the conditions of the Tender Offer, promptly after the expiration date of the Tender Offer, we will determine a single price per share (the “Purchase Price”), which will be not greater than $21.00 nor less than $18.50 per share, that we will pay, subject to “odd lot” priority, proration and conditional tender provisions described in the tender and not properly withdrawn, and accepted for payment, taking into account the number of shares tendered pursuant to the Tender Offer and the prices specified by the tendering shareholders. The Purchase Price will be the lowest price per share (in increments of $0.10) of not greater than $21.00 nor less than $18.50 per share, at which shares have been properly tendered in the Tender Offer and not properly withdrawn, that will enable us to purchase the maximum number of shares properly tendered in the Tender Offer and not properly withdrawn having an aggregate purchase price not exceeding $68.8 million. All shares purchased in the Tender Offer will be purchased at the same Purchase Price regardless of whether the shareholder tendered at a lower price. However, because of the “odd lot” priority, proration and conditional tender provisions described in the Tender Offer materials, all of the shares tendered at or below the Purchase Price may not be purchased if shares having an aggregate value in excess of $68.8 million are properly tendered and not properly withdrawn. As of February 14, 2014, there were 42,108,496 shares of our common stock issued and outstanding. The maximum of 3,718,918 shares that we are offering to purchase pursuant to the Tender Offer represents approximately 8.8% of the total number of shares issued and outstanding as of February 14, 2014. Assuming the Tender Offer is fully subscribed, the minimum of 3,276,190 shares that we are offering to purchase pursuant to the Tender Offer represents approximately 7.8% of the total number of shares issued and outstanding as of February 14, 2014. | |
On February 20, 2014, we also entered into repurchase agreements (the “Repurchase Agreements”) with each of Carlyle Financial Services Harbor, L.P. (“Carlyle”) and ACMO-CPF, L.L.C. (“Anchorage” and together with Carlyle, the “Lead Investors”), each of whom is the owner of 9,463,095 shares (representing 22.5% of the outstanding shares or 44.9% in the aggregate) of our common stock, pursuant to which we have agreed to purchase up to $28.1 million of shares of common stock from each of the Lead Investors at the Purchase Price (the “Share Repurchases”) (or an aggregate of $56.2 million of shares.) The Share Repurchases are scheduled to close on the eleventh business day following the expiration of the Tender Offer. The aggregate value of shares to be repurchased under the Repurchase Agreements will be proportionately reduced in the event that the Company purchases less than the maximum number of shares that it is able to purchase at the Purchase Price pursuant to the terms of the Tender Offer. In addition, each Lead Investor may tender in the Tender Offer, although neither Lead Investor has indicated to what extent such Lead Investor intends to do so. The Share Repurchases contemplated by the Repurchase Agreements are conditioned upon, among other matters, the Company purchasing shares in the Tender Offer in accordance with this its terms. | |
If the Tender Offer is fully subscribed, the completion of the Tender Offer and the Share Repurchases will result in the repurchase by us of $125 million of shares in the aggregate. If the Tender Offer is fully subscribed at a Purchase Price of $21.00, the maximum Purchase Price pursuant to the Tender Offer, the completion of the Tender Offer and the Share Repurchases will result in the repurchase by us 5,952,380 shares of common stock, which would represent approximately 14.1% of our issued and outstanding shares. If the Tender Offer is fully subscribed at a Purchase Price of $18.50, the minimum Purchase Price pursuant to the Tender Offer, the completion of the Tender Offer and the Share Repurchases will result in the repurchase by the Company of 6,756,755 shares in the aggregate, which would represent approximately 16.0% of our issued and outstanding shares. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Consolidation | ' |
Consolidation | |
The consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
The bank acquired Hawaii HomeLoans (“HHL”), which is now known as Central Pacific HomeLoans (“CPHL”), on August 17, 2005. Our former subsidiary CPHL was merged into the bank in February 2012. The results of operations of CPHL are included in the consolidated financial statements from the acquisition date. | |
On July 1, 2008, we acquired the assets of Pacific Islands Financial Management LLC (“PIFM”). The assets of PIFM were included in the consolidated financial statements from the acquisition date, however, in 2012, we determined that the intangible assets of PIFM were fully impaired, and accordingly, impairment charges were recorded. | |
Central Pacific Bank has two wholly-owned subsidiaries: CPB Real Estate, Inc. and Citibank Properties, Inc. Both are real estate investment trusts that are in the process of dissolution. Central Pacific Bank had another wholly-owned subsidiary, CB Technology, Inc. that was dissolved in February 2013. | |
We have a 50% ownership interest in the following mortgage brokerage companies: Pacific Access Mortgage, LLC, Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC. These investments are accounted for using the equity method and are included in investment in unconsolidated subsidiaries. We also have non-controlling equity investments in affiliates that are accounted for under the cost method and are included in investment in unconsolidated subsidiaries. | |
Our investments in unconsolidated subsidiaries accounted for under the equity and cost methods were $0.6 million and $8.5 million, respectively, at December 31, 2013 and $0.7 million and $10.2 million, respectively, at December 31, 2012. Our policy for determining impairment of these investments includes an evaluation of whether a loss in value of an investment is other than temporary. Evidence of a loss in value includes absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain an earnings capacity which would justify the carrying amount of the investment. We perform impairment tests whenever indicators of impairment are present. If the value of an investment declines and it is considered other than temporary, the investment is written down to its respective fair value in the period in which this determination is made. | |
The Company sponsors the Central Pacific Bank Foundation which is not consolidated in the Company’s financial statements. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that reflect the reported amounts of assets and liabilities and disclosures of contingent assets and contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance and provision for loan and lease losses, reserves for unfunded loan commitments, residential mortgage repurchase reserves and deferred income tax assets and income tax expense, as well as the valuation of investment securities, other intangible assets and the related amortization thereon, pension liability and the fair value of certain financial instruments. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, we consider cash and cash equivalents to include cash and due from banks, interest-bearing deposits in other banks, federal funds sold and all highly liquid investments with maturities of three months or less at the time of purchase. | |
Investment Securities | ' |
Investment Securities | |
Investments in debt securities and marketable equity securities are designated as trading, available for sale, or held to maturity. Securities are designated as held to maturity only if we have the positive intent and ability to hold these securities to maturity. Held to maturity debt securities are reported at amortized cost. Trading securities are reported at fair value, with changes in fair value included in earnings. Available-for-sale securities are reported at fair value with net unrealized gains and losses, net of taxes, included in accumulated other comprehensive income (loss) (“AOCI”). | |
We use current quotations, where available, to estimate the fair value of investment securities. Where current quotations are not available, we estimate fair value based on the present value of expected future cash flows. We consider the facts of each security including the nature of the security, the amount and duration of the loss, credit quality of the issuer, the expectations for that security’s performance and our intent and ability to hold the security until recovery. Declines in the value of debt securities and marketable equity securities that are considered other than temporary are recorded in other operating income. Realized gains and losses on the sale of investment securities are recorded in other operating income using the specific identification method. | |
We amortize premiums and accrete discounts associated with investment securities using the interest method over the life of the respective security instrument. | |
As a member of the Federal Home Loan Bank of Seattle (“FHLB”), the bank is required to obtain and hold a specific number of shares of capital stock of the FHLB based on the amount of outstanding FHLB advances. The securities are reported at cost and are presented separately in the consolidated balance sheets. | |
Loans Held for Sale | ' |
Loans Held for Sale | |
Loans held for sale consists of the following two types: (1) Hawaii residential mortgage loans that are originated with the intent to sell them in the secondary market and (2) non-residential mortgage loans in both Hawaii and the U.S. Mainland that were originated with the intent to be held in our portfolio but were subsequently transferred to the held for sale category. Hawaii residential mortgage loans classified as held for sale are carried at the lower of cost or fair value on an aggregate basis, while the non-residential Hawaii and U.S. Mainland loans are recorded at the lower of cost or fair value on an individual basis. Net fees and costs associated with originating and acquiring the Hawaii residential mortgage loans held for sale are deferred and included in the basis for determining the gain or loss on sales of loans held for sale. We report the fair values of the non-residential mortgage loans classified as held for sale net of applicable selling costs on our consolidated balance sheets. | |
Loans originated with the intent to be held in our portfolio are subsequently transferred to held for sale when our intent to hold for the foreseeable future has changed. At the time of a loan’s transfer to the held for sale account, the loan is recorded at the lower of cost or fair value. Any reduction in the loan’s value is reflected as a write-down of the recorded investment resulting in a new cost basis, with a corresponding reduction in the allowance for loan and lease losses. | |
In subsequent periods, if the fair value of a loan classified as held for sale is less than its cost basis, a valuation adjustment is recognized in our consolidated statement of income in other operating expense and the carrying value of the loan is adjusted accordingly. The valuation adjustment may be recovered in the event that the fair value increases, which is also recognized in our consolidated statement of income in other operating expense. | |
The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. Collateral values are determined based on appraisals received from qualified valuation professionals and are obtained periodically or when indicators that property values may be impaired are present. | |
We sell residential mortgage loans under industry standard contractual provisions that include various representations and warranties, which typically cover ownership of the loan, compliance with loan criteria set forth in the applicable agreement, validity of the lien securing the loan, and other similar matters. We may be required to repurchase certain loans sold with identified defects, indemnify the investor, or reimburse the investor for any credit losses incurred. Our repurchase risk generally relates to early payment defaults and borrower fraud. We establish residential mortgage repurchase reserves to reflect this risk based on our estimate of losses after considering a combination of factors, including our estimate of future repurchase activity and our projection of expected credit losses resulting from repurchased loans. At December 31, 2013 and 2012, this reserve totaled $2.9 million and $3.6 million, respectively, and is included in other liabilities on our consolidated balance sheets. | |
Loans | ' |
Loans | |
Loans are stated at the principal amount outstanding, net of unearned income. Unearned income represents net deferred loan fees that are recognized over the life of the related loan as an adjustment to yield. Net deferred loan fees are amortized using the interest method over the contractual term of the loan, adjusted for actual prepayments. Unamortized fees on loans paid in full are recognized as a component of interest income. | |
Interest income on loans is recognized on an accrual basis. For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. Loans are placed on nonaccrual status when interest payments are 90 days past due, or earlier should management determine that the borrowers will be unable to meet contractual principal and/or interest obligations, unless the loans are well-secured and in the process of collection. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income should management determine that the collectibility of such accrued interest is doubtful. All subsequent receipts are applied to principal outstanding and no interest income is recognized unless the financial condition and payment record of the borrowers warrant such recognition. A nonaccrual loan may be restored to an accrual basis when principal and interest payments are current and full payment of principal and interest is expected. | |
Leases | ' |
Leases | |
We provide equipment financing to our customers through a variety of lease arrangements. Direct financing leases are carried at the aggregate of lease payments receivable plus estimated residual value of the leased property, less unearned income. Unearned income on direct financing leases is amortized over the lease terms by methods that approximate the interest method. Our lease portfolio has declined over the last four years and had an outstanding balance of $6.2 million and $10.5 million at December 31, 2013 and 2012, respectively. | |
Allowance for Loan and Lease Losses | ' |
Allowance for Loan and Lease Losses | |
The allowance for loan and lease losses (the “Allowance”) is established through provisions for loan and lease losses (the “Provision”) charged against income. Our policy is to charge a loan off in the period in which the loan is deemed to be uncollectible and all interest previously accrued but not collected is reversed against current period interest income. We consider a loan to be uncollectible when it is probable that a loss has been incurred and the Company can make a reasonable estimate of the loss. In these instances, the likelihood of and/or timeframe for recovery of the amount due is uncertain, weak, or protracted. Subsequent receipts, if any, are credited first to the remaining principal, then to the Allowance as recoveries, and finally to unaccrued interest. | |
The Allowance is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Our methodology for determining the adequacy of the Allowance takes into account many factors, including the level and trend of nonperforming and potential problem loans, net charge-off experience, current repayment by borrowers, fair value of collateral securing specific loans, changes in lending and underwriting standards and general economic factors, nationally and in the markets in which we operate. In addition, various regulatory agencies, as an integral part of their examination processes, periodically review our Allowance. Such agencies may require that we recognize additions to the Allowance based on their judgments about information available to them at the time of their examination. | |
We consider current information and events regarding our borrowers’ ability to repay their obligations and treat a loan as impaired when it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is considered to be impaired, the amount of the impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if the loan is considered to be collateral dependent, based on the fair value of the collateral. Impairment losses are included in the Allowance through a charge to the Provision. | |
For smaller-balance homogeneous loans (primarily residential real estate and consumer loans), the Allowance is based upon management’s evaluation of the quality, character and inherent risks in the loan portfolio, current and projected economic conditions, and past loan loss experience. | |
Delinquent consumer loans and residential mortgage loans are charged off or written down within 90 days, unless determined to be adequately collateralized or in imminent process of collection. Delinquent commercial loans and commercial mortgage loans are charged off or written down when management determines that collectibility is doubtful and the principal amount of the loans cannot be repaid from proceeds of collateral liquidation. | |
Our process for determining the reserve for unfunded loan commitments is consistent with our process for determining the Allowance and is adjusted for estimated loan funding probabilities. The reserve for unfunded loan commitments is recorded separately through a valuation allowance included in other liabilities. Credit losses for off-balance sheet credit exposures are deducted from the allowance for credit losses on off-balance sheet credit exposures in the period in which the liability is settled. The allowance for credit losses on off-balance sheet credit losses is established by a charge to other operating expense. The reserve for unfunded loan commitments totaled $2.1 million and $5.6 million at December 31, 2013 and 2012, respectively. | |
Premises and Equipment | ' |
Premises and Equipment | |
Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are included in other operating expense and are computed using the straight-line method over the shorter of the estimated useful lives of the assets or the applicable leases. Useful lives generally range from five to thirty-nine years for premises and improvements, and one to seven years for equipment. Major improvements and betterments are capitalized, while recurring maintenance and repairs are charged to operating expense. Net gains or losses on dispositions of premises and equipment are included in other operating expense. | |
Other Intangible Assets | ' |
Other Intangible Assets | |
Other intangible assets include a core deposit premium and mortgage servicing rights. | |
Our core deposit premium is being amortized over 14 years which approximates the estimated life of the purchased deposits. The carrying value of our core deposit premium is periodically evaluated to estimate the remaining periods of benefit. If these periods of benefit are determined to be less than the remaining amortizable life, an adjustment to reflect such shorter life will be made. | |
We utilize the amortization method to measure our mortgage servicing rights. Under the amortization method, we amortize our mortgage servicing rights in proportion to and over the period of net servicing income. Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans. Amortization of the servicing rights is reported as amortization of other intangible assets in our consolidated statements of income. Ancillary income is recorded in other income. Mortgage servicing rights are recorded when loans are sold to third-parties with servicing of those loans retained and we classify our entire mortgage servicing rights into one class. | |
Initial fair value of the servicing right is calculated by a discounted cash flow model prepared by a third party service provider based on market value assumptions at the time of origination and we assess the servicing right for impairment using current market value assumptions at each reporting period. Critical assumptions used in the discounted cash flow model include mortgage prepayment speeds, discount rates, costs to service and ancillary income. Variations in our assumptions could materially affect the estimated fair values. Changes to our assumptions are made when current trends and market data indicate that new trends have developed. Current market value assumptions based on loan product types (fixed rate, adjustable rate and balloon loans) include average discount rates and national prepayment speeds. Many of these assumptions are subjective and require a high level of management judgment. Our mortgage servicing rights portfolio and valuation assumptions are periodically reviewed by management. | |
Prepayment speeds may be affected by economic factors such as home price appreciation, market interest rates, the availability of other credit products to our borrowers and customer payment patterns. Prepayment speeds include the impact of all borrower prepayments, including full payoffs, additional principal payments and the impact of loans paid off due to foreclosure liquidations. | |
We perform an impairment assessment of our other intangible assets whenever events or changes in circumstance indicate that the carrying value of those assets may not be recoverable. Our impairment assessments involve, among other valuation methods, the estimation of future cash flows and other methods of determining fair value. Estimating future cash flows and determining fair values is subject to judgments and often involves the use of significant estimates and assumptions. The variability of the factors we use to perform our impairment tests depend on a number of conditions, including uncertainty about future events and cash flows. All such factors were interdependent and, therefore, do not change in isolation. Accordingly, our accounting estimates may materially change from period to period due to changing market factors. | |
During the second quarter of 2012, we evaluated the recoverability of the intangible assets related to our customer relationships and non-compete agreements. Upon completion of this review, we determined that the intangible assets related to our customer relationships and non-compete agreements were both fully impaired, and thus, we recorded impairment charges to other operating expense totaling $0.9 million during the second quarter of 2012. | |
Other Real Estate | ' |
Other Real Estate | |
Other real estate is composed of properties acquired through foreclosure proceedings and is initially recorded at fair value less estimated costs to sell the property, thereby establishing the new cost basis of other real estate. Losses arising at the time of acquisition of such properties are charged against the Allowance. Subsequent to acquisition, such properties are carried at the lower of cost or fair value less estimated selling expenses, determined on an individual asset basis. Any deficiency resulting from the excess of cost over fair value less estimated selling expenses is recognized as a valuation allowance. Any subsequent increase in fair value up to its cost basis is recorded as a reduction of the valuation allowance. Increases or decreases in the valuation allowance are included in other operating expense. Net gains or losses recognized on the sale of these properties are included in other operating income. | |
Non-Controlling Interest | ' |
Non-Controlling Interest | |
Non-controlling interest at December 31, 2013 is comprised of preferred stock issued to third parties by the Company’s subsidiary, CPB Real Estate, Inc. In the third quarter of 2013, CPB Real Estate, Inc. and Citibank Properties, Inc. repurchased $7.6 million and $2.1 million, respectively, of its preferred stock issued to third parties at a premium of $1.8 million and $0.2 million, respectively. The premiums on the repurchase of the preferred stock were recorded in other operating expense. | |
Share Based Compensation | ' |
Share Based Compensation | |
Share-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee’s requisite service period. We use the Black-Scholes option-pricing model to determine the fair-value of stock-based awards and we recognize compensation expense for all share-based payment awards on a straight-line basis over their respective vesting period. See Note 15 for further discussion of our stock-based compensation. | |
Income Taxes | ' |
Income Taxes | |
Deferred tax assets and liabilities are recognized for the estimated future tax effects attributable to temporary differences and carryforwards. A valuation allowance may be required if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining whether a valuation allowance is necessary, we consider the level of taxable income in prior years, to the extent that carrybacks are permitted under current tax laws, as well as estimates of future taxable income and tax planning strategies that could be implemented to accelerate taxable income, if necessary. If our estimates of future taxable income were materially overstated or if our assumptions regarding the tax consequences of tax planning strategies were inaccurate, some or all of our deferred tax assets may not be realized, which would result in a charge to earnings. Our continuing practice is to recognize interest and penalties related to income tax matters in interest expense and other expense, respectively. | |
We establish income tax contingency reserves for potential tax liabilities related to uncertain tax positions. Tax benefits are recognized when we determine that it is more likely than not that such benefits will be realized. Where uncertainty exists due to the complexity of income tax statutes, and where the potential tax amounts are significant, we generally seek independent tax opinions to support our positions. If our evaluation of the likelihood of the realization of benefits is inaccurate, we could incur additional income tax and interest expense that would adversely impact earnings, or we could receive tax benefits greater than anticipated which would positively impact earnings. | |
Earnings per Share | ' |
Earnings per Share | |
Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding unvested restricted stock. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, increased by the dilutive effect of stock options and stock awards, less shares held in a Rabbi trust pursuant to a deferred compensation plan for directors. | |
Forward Foreign Exchange Contracts | ' |
Forward Foreign Exchange Contracts | |
We are periodically a party to a limited amount of forward foreign exchange contracts to satisfy customer requirements for foreign currencies. These contracts are not utilized for trading purposes and are carried at market value, with realized gains and losses included in fees on foreign exchange. | |
Derivatives and Hedging Activities | ' |
Derivatives and Hedging Activities | |
We recognize all derivatives on the balance sheet at fair value. On the date that we enter into a derivative contract, we designate the derivative as (1) a hedge of the fair value of an identified asset or liability (“fair value hedge”), (2) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to an identified asset or liability (“cash flow hedge”) or (3) a transaction not qualifying for hedge accounting (“free standing derivative”). For a fair value hedge, changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability, attributable to the hedged risk, are recorded in current period net income in the same financial statement category as the hedged item. For a cash flow hedge, changes in the fair value of the derivative, to the extent that it is effective, is recorded in other comprehensive income (loss) (“OCI”). These changes in fair value are subsequently reclassified to net income in the same period(s) that the hedged transaction affects net income in the same financial statement category as the hedged item. For free standing derivatives, changes in fair values are reported in current period other operating income. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-11, “Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 expands the disclosure requirements for certain financial instruments and derivatives that are subject to enforceable master netting agreements or similar arrangements. The disclosures are required regardless of whether the instruments have been offset (or netted) in the balance sheet. Under ASU 2011-11, companies must describe the nature of offsetting arrangements and provide quantitative information about those agreements, including the gross and net amounts of financial instruments that are recognized in the balance sheet. In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” which clarifies the scope of ASU 2011-11 by limiting the disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent they are subject to an enforceable master netting or similar arrangement. The provisions of ASU 2011-11 and ASU 2013-01 were effective for the Company’s reporting period beginning on January 1, 2013, with retrospective application required. We adopted ASU 2011-11 and ASU 2013-01 effective January 1, 2013 and the adoption did not have a material impact on our consolidated financial statements. | |
In July 2012, the FASB issued ASU 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment.” The provisions of ASU 2012-02 permit an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform a quantitative impairment test, as is currently required by GAAP. ASU 2012-02 is effective for annual and interim impairment tests performed for the Company’s reporting period beginning on January 1, 2013. We adopted this ASU effective January 1, 2013. As the Company does not have any indefinite-lived assets, the adoption of this guidance did not have a material impact on our consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, “Amendments to Topic 220, Other Comprehensive Income.” The amendments in ASU 2013-02 supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011) for all public and private organizations. The amendments would require an entity to provide additional information about reclassifications out of accumulated other comprehensive income. ASU 2013-02 is effective for the Company’s reporting period beginning on January 1, 2013. We adopted this ASU effective January 1, 2013. As the Company provided these required disclosures in the notes to the consolidated financial statements, the adoption of this guidance had no impact on the Company’s consolidated balance sheets and statements of income. See Note 20 for the disclosures required by ASU 2013-02. |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
Summary of investment securities portfolio | ' | |||||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||||||
Amortized | unrealized | unrealized | fair | |||||||||||||||||
cost | gains | losses | value | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2013 | ||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | $ | 252,047 | $ | — | $ | (13,342 | ) | $ | 238,705 | |||||||||||
Available for Sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 191,158 | $ | 305 | $ | (12,106 | ) | $ | 179,357 | |||||||||||
Corporate securities | 157,337 | 1,878 | (1,120 | ) | 158,095 | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 936,144 | 7,085 | (15,603 | ) | 927,626 | |||||||||||||||
Non-agency collateralized mortgage obligations | 147,902 | 81 | (5,937 | ) | 142,046 | |||||||||||||||
Other | 755 | 120 | — | 875 | ||||||||||||||||
Total | $ | 1,433,296 | $ | 9,469 | $ | (34,766 | ) | $ | 1,407,999 | |||||||||||
2012 | ||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | $ | 161,848 | $ | 695 | $ | (15 | ) | $ | 162,528 | |||||||||||
Available for Sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
U.S. Government sponsored entities | $ | 278,198 | $ | 2,741 | $ | — | $ | 280,939 | ||||||||||||
States and political subdivisions | 184,274 | 2,831 | (1,194 | ) | 185,911 | |||||||||||||||
Corporate securities | 125,649 | 2,360 | (63 | ) | 127,946 | |||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | 925,018 | 17,548 | (1,523 | ) | 941,043 | |||||||||||||||
Other | 866 | 40 | — | 906 | ||||||||||||||||
Total | $ | 1,514,005 | $ | 25,520 | $ | (2,780 | ) | $ | 1,536,745 | |||||||||||
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | ' | |||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Amortized | Estimated Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||
Mortgage-backed securities | $ | 252,047 | $ | 238,705 | ||||||||||||||||
Available for Sale | ||||||||||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||||||||
Due after one year through five years | 87,349 | 88,819 | ||||||||||||||||||
Due after five years through ten years | 134,337 | 131,223 | ||||||||||||||||||
Due after ten years | 126,809 | 117,410 | ||||||||||||||||||
Mortgage-backed securities | 1,084,046 | 1,069,672 | ||||||||||||||||||
Other | 755 | 875 | ||||||||||||||||||
Total | $ | 1,433,296 | $ | 1,407,999 | ||||||||||||||||
Schedule of investment securities in an unrealized loss position | ' | |||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
Unrealized | Unrealized | Unrealized | ||||||||||||||||||
Description of Securities | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
At December 31, 2013: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 137,176 | $ | (8,985 | ) | $ | 32,747 | $ | (3,121 | ) | $ | 169,923 | $ | (12,106 | ) | |||||
Corporate securities | 75,368 | (1,120 | ) | — | — | 75,368 | (1,120 | ) | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 909,585 | (28,386 | ) | 4,848 | (559 | ) | 914,433 | (28,945 | ) | |||||||||||
Non-agency collateralized mortgage obligations | 129,991 | (5,937 | ) | — | — | 129,991 | (5,937 | ) | ||||||||||||
Total temporarily impaired securities | $ | 1,252,120 | $ | (44,428 | ) | $ | 37,595 | $ | (3,680 | ) | $ | 1,289,715 | $ | (48,108 | ) | |||||
At December 31, 2012: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 73,128 | $ | (1,194 | ) | $ | — | $ | — | $ | 73,128 | $ | (1,194 | ) | ||||||
Corporate securities | 23,205 | (63 | ) | — | — | 23,205 | (63 | ) | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 206,981 | (1,538 | ) | — | — | 206,981 | (1,538 | ) | ||||||||||||
Total temporarily impaired securities | $ | 303,314 | $ | (2,795 | ) | $ | — | $ | — | $ | 303,314 | $ | (2,795 | ) |
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
LOANS AND LEASES | ' | ||||||||||||||||||||||
Schedule of loans and leases, excluding loans held for sale | ' | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 398,365 | $ | 246,278 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 75,927 | 96,240 | |||||||||||||||||||||
Mortgage - residential | 1,237,841 | 1,035,273 | |||||||||||||||||||||
Mortgage - commercial | 601,114 | 673,506 | |||||||||||||||||||||
Consumer | 311,670 | 143,387 | |||||||||||||||||||||
Leases | 6,241 | 10,504 | |||||||||||||||||||||
2,631,158 | 2,205,188 | ||||||||||||||||||||||
Unearned income | (557 | ) | (1,244 | ) | |||||||||||||||||||
Total loans and leases | $ | 2,630,601 | $ | 2,203,944 | |||||||||||||||||||
Schedule of activity of loans made to certain directors, executive officers and their affiliates | ' | ||||||||||||||||||||||
December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Balance, beginning of year | $ | 1,501 | $ | 4,579 | |||||||||||||||||||
Additions | 17,487 | 2,348 | |||||||||||||||||||||
Repayments | (6,046 | ) | (5,426 | ) | |||||||||||||||||||
Balance, end of year | $ | 12,942 | $ | 1,501 | |||||||||||||||||||
Schedule of balance in the allowance for loan and lease losses and the recorded investment in loans and lease based on the impairment measurement methods, by class | ' | ||||||||||||||||||||||
Commercial, | Real estate | ||||||||||||||||||||||
financial & | Construction | Mortgage - | Mortgage - | Consumer | Leases | Total | |||||||||||||||||
agricultural | residential | commercial | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||
Ending balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 349 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 349 | |||||||||
Collectively evaluated for impairment | 12,847 | 2,774 | 28,441 | 26,778 | 6,576 | 55 | 77,471 | ||||||||||||||||
13,196 | 2,774 | 28,441 | 26,778 | 6,576 | 55 | 77,820 | |||||||||||||||||
Unallocated | 6,000 | ||||||||||||||||||||||
Total ending balance | $ | 13,196 | $ | 2,774 | $ | 28,441 | $ | 26,778 | $ | 6,576 | $ | 55 | $ | 83,820 | |||||||||
Loans and leases: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,939 | $ | 8,065 | $ | 36,779 | $ | 16,271 | $ | — | $ | — | $ | 65,054 | |||||||||
Collectively evaluated for impairment | 394,426 | 67,862 | 1,201,062 | 584,843 | 311,670 | 6,241 | 2,566,104 | ||||||||||||||||
398,365 | 75,927 | 1,237,841 | 601,114 | 311,670 | 6,241 | 2,631,158 | |||||||||||||||||
Unearned income | 351 | (311 | ) | 1,418 | (1,033 | ) | (982 | ) | — | (557 | ) | ||||||||||||
Total ending balance | $ | 398,716 | $ | 75,616 | $ | 1,239,259 | $ | 600,081 | $ | 310,688 | $ | 6,241 | $ | 2,630,601 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Allowance for loan and lease losses: | |||||||||||||||||||||||
Ending balance attributable to loans: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 882 | $ | 1,582 | $ | 272 | $ | 270 | $ | — | $ | 5 | $ | 3,011 | |||||||||
Collectively evaluated for impairment | 4,105 | 2,928 | 29,638 | 48,230 | 2,421 | 80 | 87,402 | ||||||||||||||||
4,987 | 4,510 | 29,910 | 48,500 | 2,421 | 85 | 90,413 | |||||||||||||||||
Unallocated | 6,000 | ||||||||||||||||||||||
Total ending balance | $ | 4,987 | $ | 4,510 | $ | 29,910 | $ | 48,500 | $ | 2,421 | $ | 85 | $ | 96,413 | |||||||||
Loans and leases: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,957 | $ | 48,264 | $ | 42,865 | $ | 15,911 | $ | — | $ | 95 | $ | 111,092 | |||||||||
Collectively evaluated for impairment | 242,321 | 47,976 | 992,408 | 657,595 | 143,387 | 10,409 | 2,094,096 | ||||||||||||||||
246,278 | 96,240 | 1,035,273 | 673,506 | 143,387 | 10,504 | 2,205,188 | |||||||||||||||||
Unearned income | (60 | ) | (46 | ) | 124 | (1,258 | ) | (4 | ) | — | (1,244 | ) | |||||||||||
Total ending balance | $ | 246,218 | $ | 96,194 | $ | 1,035,397 | $ | 672,248 | $ | 143,383 | $ | 10,504 | $ | 2,203,944 | |||||||||
Schedule of impaired loans, by class | ' | ||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance | |||||||||||||||||||||
Balance | Investment | Allocated | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 1,069 | $ | 1,040 | $ | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 14,451 | 8,065 | — | ||||||||||||||||||||
Mortgage - residential | 41,117 | 36,779 | — | ||||||||||||||||||||
Mortgage - commercial | 22,353 | 16,271 | — | ||||||||||||||||||||
Total impaired loans with no related allowance recorded | 78,990 | 62,155 | — | ||||||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | 4,367 | 2,899 | 349 | ||||||||||||||||||||
Total impaired loans with an allowance recorded | 4,367 | 2,899 | 349 | ||||||||||||||||||||
Total | $ | 83,357 | $ | 65,054 | $ | 349 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Impaired loans with no related allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 1,225 | $ | 526 | $ | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 52,352 | 36,664 | — | ||||||||||||||||||||
Mortgage - residential | 47,364 | 41,894 | — | ||||||||||||||||||||
Mortgage - commercial | 13,616 | 13,211 | — | ||||||||||||||||||||
Total impaired loans with no related allowance recorded | 114,557 | 92,295 | — | ||||||||||||||||||||
Impaired loans with an allowance recorded: | |||||||||||||||||||||||
Commercial, financial & agricultural | 4,807 | 3,431 | 882 | ||||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 13,678 | 11,600 | 1,582 | ||||||||||||||||||||
Mortgage - residential | 1,935 | 971 | 272 | ||||||||||||||||||||
Mortgage - commercial | 3,939 | 2,700 | 270 | ||||||||||||||||||||
Leases | 95 | 95 | 5 | ||||||||||||||||||||
Total impaired loans with an allowance recorded | 24,454 | 18,797 | 3,011 | ||||||||||||||||||||
Total | $ | 139,011 | $ | 111,092 | $ | 3,011 | |||||||||||||||||
Schedule of average recorded investment and interest income recognized on impaired loans, by class | ' | ||||||||||||||||||||||
Average | Interest | ||||||||||||||||||||||
Recorded | Income | ||||||||||||||||||||||
Investment | Recognized | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 4,138 | $ | 24 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 24,545 | 1,442 | |||||||||||||||||||||
Mortgage - residential | 38,378 | 586 | |||||||||||||||||||||
Mortgage - commercial | 21,107 | 833 | |||||||||||||||||||||
Leases | 33 | — | |||||||||||||||||||||
Total | $ | 88,201 | $ | 2,885 | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 3,486 | $ | 39 | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 56,762 | 771 | |||||||||||||||||||||
Mortgage - residential | 47,240 | 308 | |||||||||||||||||||||
Mortgage - commercial | 18,852 | 506 | |||||||||||||||||||||
Leases | 133 | — | |||||||||||||||||||||
Total | $ | 126,473 | $ | 1,624 | |||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 549 | $ | — | |||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 115,612 | 772 | |||||||||||||||||||||
Mortgage - residential | 58,262 | 616 | |||||||||||||||||||||
Mortgage - commercial | 19,116 | 469 | |||||||||||||||||||||
Total | $ | 193,539 | $ | 1,857 | |||||||||||||||||||
Schedule of aging of the recorded investment in past due loans and leases, by class | ' | ||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Accruing | Nonaccrual | Total | Loans and | Total | |||||||||||||||||
Past Due | Past Due | Loans Greater | Loans | Past Due | Leases Not | ||||||||||||||||||
than 90 Days | Past Due | ||||||||||||||||||||||
Past Due | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 50 | $ | — | $ | — | $ | 3,533 | $ | 3,583 | $ | 395,133 | $ | 398,716 | |||||||||
Real estate: | |||||||||||||||||||||||
Construction | — | 120 | — | 4,015 | 4,135 | 71,481 | 75,616 | ||||||||||||||||
Mortgage - residential | 3,898 | 1,885 | — | 20,271 | 26,054 | 1,213,205 | 1,239,259 | ||||||||||||||||
Mortgage - commercial | 544 | — | — | 13,769 | 14,313 | 585,768 | 600,081 | ||||||||||||||||
Consumer | 577 | 92 | — | — | 669 | 310,019 | 310,688 | ||||||||||||||||
Leases | — | — | 15 | — | 15 | 6,226 | 6,241 | ||||||||||||||||
Total | $ | 5,069 | $ | 2,097 | $ | 15 | $ | 41,588 | $ | 48,769 | $ | 2,581,832 | $ | 2,630,601 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 123 | $ | 139 | $ | — | $ | 3,510 | $ | 3,772 | $ | 242,446 | $ | 246,218 | |||||||||
Real estate: | |||||||||||||||||||||||
Construction | 124 | — | — | 38,742 | 38,866 | 57,328 | 96,194 | ||||||||||||||||
Mortgage - residential | 8,330 | 590 | 387 | 27,499 | 36,806 | 998,591 | 1,035,397 | ||||||||||||||||
Mortgage - commercial | 219 | — | — | 9,487 | 9,706 | 662,542 | 672,248 | ||||||||||||||||
Consumer | 249 | 169 | 116 | — | 534 | 142,849 | 143,383 | ||||||||||||||||
Leases | — | — | — | 94 | 94 | 10,410 | 10,504 | ||||||||||||||||
Total | $ | 9,045 | $ | 898 | $ | 503 | $ | 79,332 | $ | 89,778 | $ | 2,114,166 | $ | 2,203,944 | |||||||||
Schedule of information related to loans modifications in a TDR, by class | ' | ||||||||||||||||||||||
Number of | Recorded | Increase in | |||||||||||||||||||||
Contracts | Investment | the | |||||||||||||||||||||
(as of period end) | Allowance | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 517 | $ | — | ||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 1 | 178 | — | ||||||||||||||||||||
Mortgage - residential | 7 | 2,566 | — | ||||||||||||||||||||
Mortgage - commercial | 1 | 8,952 | — | ||||||||||||||||||||
Total | 10 | $ | 12,213 | $ | — | ||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | 4 | $ | 447 | $ | — | ||||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | 8 | 11,120 | — | ||||||||||||||||||||
Mortgage - residential | 10 | 3,782 | 427 | ||||||||||||||||||||
Mortgage - commercial | 6 | 9,124 | — | ||||||||||||||||||||
Total | 28 | $ | 24,473 | $ | 427 | ||||||||||||||||||
Schedule of loans modified as a TDR within the previous twelve months that subsequently defaulted, by class | ' | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||
(as of period end) | (as of period end) | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 517 | — | $ | — | |||||||||||||||||
Real estate: | |||||||||||||||||||||||
Construction | — | — | 7 | 5,949 | |||||||||||||||||||
Mortgage - residential | — | — | 4 | 893 | |||||||||||||||||||
Mortgage - commercial | — | — | 2 | 5,890 | |||||||||||||||||||
Total | 1 | $ | 517 | 13 | $ | 12,732 | |||||||||||||||||
Schedule of recorded investment in the loans and leases, by class and credit indicator | ' | ||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Loss | Less: | Total | |||||||||||||||||
Mention | Unearned | ||||||||||||||||||||||
Income | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 371,285 | $ | 21,511 | $ | 5,569 | $ | — | $ | — | $ | (351 | ) | $ | 398,716 | ||||||||
Real estate: | |||||||||||||||||||||||
Construction | 67,435 | 4,477 | 4,015 | — | — | 311 | 75,616 | ||||||||||||||||
Mortgage - residential | 1,213,636 | 845 | 23,360 | — | — | (1,418 | ) | 1,239,259 | |||||||||||||||
Mortgage - commercial | 551,488 | 20,206 | 29,420 | — | — | 1,033 | 600,081 | ||||||||||||||||
Consumer | 311,670 | — | — | — | — | 982 | 310,688 | ||||||||||||||||
Leases | 6,241 | — | — | — | — | — | 6,241 | ||||||||||||||||
Total | $ | 2,521,755 | $ | 47,039 | $ | 62,364 | $ | — | $ | — | $ | 557 | $ | 2,630,601 | |||||||||
December 31, 2012 | |||||||||||||||||||||||
Commercial, financial & agricultural | $ | 232,062 | $ | 6,609 | $ | 7,607 | $ | — | $ | — | $ | 60 | $ | 246,218 | |||||||||
Real estate: | |||||||||||||||||||||||
Construction | 42,619 | 9,635 | 43,986 | — | — | 46 | 96,194 | ||||||||||||||||
Mortgage - residential | 1,003,268 | 1,109 | 30,896 | — | — | (124 | ) | 1,035,397 | |||||||||||||||
Mortgage - commercial | 577,638 | 65,114 | 30,754 | — | — | 1,258 | 672,248 | ||||||||||||||||
Consumer | 143,258 | — | 129 | — | — | 4 | 143,383 | ||||||||||||||||
Leases | 9,860 | 274 | 370 | — | — | — | 10,504 | ||||||||||||||||
Total | $ | 2,008,705 | $ | 82,741 | $ | 113,742 | $ | — | $ | — | $ | 1,244 | $ | 2,203,944 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L1
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES | ' | |||||||||||||||||||||||||
Schedule of activity in the allowance, by class | ' | |||||||||||||||||||||||||
Commercial, | Real estate | |||||||||||||||||||||||||
financial & | Mortgage - | Mortgage - | ||||||||||||||||||||||||
agricultural | Construction | residential | commercial | Consumer | Leases | Unallocated | Total | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||
Beginning balance | $ | 4,987 | $ | 4,510 | $ | 29,910 | $ | 48,500 | $ | 2,421 | $ | 85 | $ | 6,000 | $ | 96,413 | ||||||||||
Provision (credit) for loan and lease losses | 9,634 | (4,974 | ) | (1,493 | ) | (19,194 | ) | 5,093 | (376 | ) | — | (11,310 | ) | |||||||||||||
14,621 | (464 | ) | 28,417 | 29,306 | 7,514 | (291 | ) | 6,000 | 85,103 | |||||||||||||||||
Charge-offs | 2,812 | 358 | 1,083 | 6,768 | 1,595 | — | — | 12,616 | ||||||||||||||||||
Recoveries | 1,387 | 3,596 | 1,107 | 4,240 | 657 | 346 | — | 11,333 | ||||||||||||||||||
Net charge-offs (recoveries) | 1,425 | (3,238 | ) | (24 | ) | 2,528 | 938 | (346 | ) | — | 1,283 | |||||||||||||||
Ending balance | $ | 13,196 | $ | 2,774 | $ | 28,441 | $ | 26,778 | $ | 6,576 | $ | 55 | $ | 6,000 | $ | 83,820 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||
Beginning balance | $ | 6,110 | $ | 28,630 | $ | 32,736 | $ | 47,729 | $ | 2,335 | $ | 553 | $ | 4,000 | $ | 122,093 | ||||||||||
Provision (credit) for loan and lease losses | 1,042 | (22,307 | ) | (2,038 | ) | 2,316 | 547 | (445 | ) | 2,000 | (18,885 | ) | ||||||||||||||
7,152 | 6,323 | 30,698 | 50,045 | 2,882 | 108 | 6,000 | 103,208 | |||||||||||||||||||
Charge-offs | 3,779 | 8,435 | 1,664 | 2,033 | 1,490 | 28 | — | 17,429 | ||||||||||||||||||
Recoveries | 1,614 | 6,622 | 876 | 488 | 1,029 | 5 | — | 10,634 | ||||||||||||||||||
Net charge-offs | 2,165 | 1,813 | 788 | 1,545 | 461 | 23 | — | 6,795 | ||||||||||||||||||
Ending balance | $ | 4,987 | $ | 4,510 | $ | 29,910 | $ | 48,500 | $ | 2,421 | $ | 85 | $ | 6,000 | $ | 96,413 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||||||||
Beginning balance | $ | 13,426 | $ | 76,556 | $ | 31,830 | $ | 64,308 | $ | 3,155 | $ | 1,579 | $ | 2,000 | $ | 192,854 | ||||||||||
Provision (credit) for loan and lease losses | (6,720 | ) | (23,073 | ) | 3,569 | (15,664 | ) | 214 | (1,016 | ) | 2,000 | (40,690 | ) | |||||||||||||
6,706 | 53,483 | 35,399 | 48,644 | 3,369 | 563 | 4,000 | 152,164 | |||||||||||||||||||
Charge-offs | 2,401 | 31,371 | 4,347 | 1,298 | 2,116 | 10 | — | 41,543 | ||||||||||||||||||
Recoveries | 1,805 | 6,518 | 1,684 | 383 | 1,082 | — | — | 11,472 | ||||||||||||||||||
Net charge-offs | 596 | 24,853 | 2,663 | 915 | 1,034 | 10 | — | 30,071 | ||||||||||||||||||
Ending balance | $ | 6,110 | $ | 28,630 | $ | 32,736 | $ | 47,729 | $ | 2,335 | $ | 553 | $ | 4,000 | $ | 122,093 | ||||||||||
Schedule of changes in the allowance for loan and lease losses for impaired loans | ' | |||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance, beginning of year | $ | 3,011 | $ | 772 | $ | 19,525 | ||||||||||||||||||||
Provision for loan and lease losses | — | 2,520 | 333 | |||||||||||||||||||||||
Other changes | (2,662 | ) | (281 | ) | (19,086 | ) | ||||||||||||||||||||
Balance, end of year | $ | 349 | $ | 3,011 | $ | 772 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
PREMISES AND EQUIPMENT | ' | ||||||||||
Schedule of premises and equipment | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||
Land | $ | 9,006 | $ | 9,006 | |||||||
Office buildings and improvements | 94,888 | 91,512 | |||||||||
Furniture, fixtures and equipment | 36,677 | 34,980 | |||||||||
140,571 | 135,498 | ||||||||||
Accumulated depreciation and amortization | (91,532 | ) | (86,739 | ) | |||||||
Net premises and equipment | $ | 49,039 | $ | 48,759 | |||||||
Schedule of operating expenses to which depreciation and amortization of premises and equipment were charged | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Net occupancy | $ | 3,702 | $ | 3,723 | $ | 3,641 | |||||
Equipment | 2,305 | 2,628 | 3,083 | ||||||||
Total | $ | 6,007 | $ | 6,351 | $ | 6,724 |
OTHER_INTANGIBLE_ASSETS_Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
Schedule of changes in other intangible assets | ' | |||||||||||||||||||
Core | Mortgage | |||||||||||||||||||
Deposit | Servicing | Customer | Non-compete | |||||||||||||||||
Premium | Rights | Relationships | Agreements | Total | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance as of December 31, 2011 | $ | 18,053 | $ | 22,933 | $ | 910 | $ | 90 | $ | 41,986 | ||||||||||
Additions | — | 5,692 | — | — | 5,692 | |||||||||||||||
Amortization | (2,675 | ) | (6,504 | ) | (58 | ) | (25 | ) | (9,262 | ) | ||||||||||
Impairment charges | — | — | (852 | ) | (65 | ) | (917 | ) | ||||||||||||
Balance as of December 31, 2012 | $ | 15,378 | $ | 22,121 | $ | — | $ | — | $ | 37,499 | ||||||||||
Additions | — | 2,702 | — | — | 2,702 | |||||||||||||||
Amortization | (2,674 | ) | (4,744 | ) | — | — | (7,418 | ) | ||||||||||||
Balance as of December 31, 2013 | $ | 12,704 | $ | 20,079 | $ | — | $ | — | $ | 32,783 | ||||||||||
Schedule of gross carrying value and accumulated amortization related to intangible assets | ' | |||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | |||||||||||||||
Value | Amortization | Value | Value | Amortization | Value | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Core deposit premium | $ | 44,642 | $ | (31,938 | ) | $ | 12,704 | $ | 44,642 | $ | (29,264 | ) | $ | 15,378 | ||||||
Mortgage servicing rights | 54,441 | (34,362 | ) | 20,079 | 51,739 | (29,618 | ) | 22,121 | ||||||||||||
Customer relationships | — | — | — | 1,400 | (1,400 | ) | — | |||||||||||||
Non-compete agreements | — | — | — | 300 | (300 | ) | — | |||||||||||||
Total | $ | 99,083 | $ | (66,300 | ) | $ | 32,783 | $ | 98,081 | $ | (60,582 | ) | $ | 37,499 | ||||||
Schedule of estimated amortization expense | ' | |||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||
Mortgage | ||||||||||||||||||||
Core Deposit | Servicing | |||||||||||||||||||
Premium | Rights | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2014 | $ | 2,674 | $ | 2,452 | $ | 5,126 | ||||||||||||||
2015 | 2,674 | 1,669 | 4,343 | |||||||||||||||||
2016 | 2,674 | 1,099 | 3,773 | |||||||||||||||||
2017 | 2,674 | 669 | 3,343 | |||||||||||||||||
2018 | 2,008 | 296 | 2,304 | |||||||||||||||||
Thereafter | — | 13,894 | 13,894 | |||||||||||||||||
Total | $ | 12,704 | $ | 20,079 | $ | 32,783 | ||||||||||||||
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | ' | |||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Fair market value, beginning of period | $ | 22,356 | $ | 23,149 | ||||||||||||||||
Fair market value, end of period | 21,399 | 22,356 | ||||||||||||||||||
Weighted average discount rate | 8 | % | 8 | % | ||||||||||||||||
Weighted average prepayment speed assumption | 13.6 | 14 | ||||||||||||||||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
DERIVATIVES | ' | |||||||||||||||
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheet | ' | |||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Derivatives not designated as | Balance Sheet | Fair Value at | Fair Value at | Fair Value at | Fair Value at | |||||||||||
hedging instruments | Location | December 31, | December 31, | December 31, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest rate contracts | Other assets / other liabilities | $ | 425 | $ | 303 | $ | 146 | $ | 551 | |||||||
Schedule of the impact of derivative instruments and their location within the consolidated statements of income | ' | |||||||||||||||
Derivatives in Cash Flow | Amount of Gain (Loss) Reclassified | |||||||||||||||
Hedging Relationship | from AOCI into Earnings | |||||||||||||||
(Effective Portion) | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Interest rate contracts | $ | (394 | ) | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Interest rate contracts | 434 | |||||||||||||||
Derivatives not in Cash Flow | Location of Gain (Loss) Recognized | Amount of Gain (Loss) Recognized | ||||||||||||||
Hedging Relationship | in Earnings on Derivatives | in Earnings on Derivatives | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||
Interest rate contracts | Other operating income | $ | 336 | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||
Interest rate contracts | Other operating income | (350 | ) | |||||||||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
DEPOSITS. | ' | ||||
Schedule of maturities of time deposits of $100,000 or more | ' | ||||
Maturities of time deposits of $100,000 or more as of December 31, 2013 were as follows (in thousands): | |||||
Three months or less | $ | 399,818 | |||
Over three through six months | 268,780 | ||||
Over six through twelve months | 113,260 | ||||
2015 | 34,795 | ||||
2016 | 12,323 | ||||
2017 | 7,405 | ||||
2018 | 4,403 | ||||
Thereafter | 2,110 | ||||
Total | $ | 842,894 |
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SHORT-TERM BORROWINGS | ' | ||||||||||
Schedule of short-term borrowings | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Amount outstanding at December 31 | $ | 8,015 | $ | — | $ | 34 | |||||
Average amount outstanding during year | 1,988 | 11 | 35,809 | ||||||||
Highest month-end balance during year | 28,000 | — | 201,962 | ||||||||
Weighted average interest rate on balances outstanding at December 31 | 0.23 | % | 0 | % | 0 | % | |||||
Weighted average interest rate during year | 0.32 | % | 0.7 | % | 0.57 | % | |||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
LONG-TERM DEBT. | ' | |||||||
Schedule of long-term debt, based on original maturity | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
FHLB advances | $ | 14 | $ | 32 | ||||
Subordinated debentures | 92,785 | 108,249 | ||||||
$ | 92,799 | $ | 108,281 | |||||
Schedule of future principal payments on long-term debt based on final maturity | ' | |||||||
At December 31, 2013, future principal payments on long-term debt based on final maturity are as follows (in thousands): | ||||||||
Year ending December 31: | ||||||||
2014 | $ | 14 | ||||||
2015 | — | |||||||
2016 | — | |||||||
2017 | — | |||||||
2018 | — | |||||||
Thereafter | 92,785 | |||||||
Total | $ | 92,799 |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
SHARE-BASED COMPENSATION. | ' | |||||||||||
Summary of the effects of share-based compensation to options and awards granted under the Company's equity incentive plans | ' | |||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(Dollars in thousands) | ||||||||||||
Salaries and employee benefits | $ | 6,367 | $ | 4,432 | $ | 2,409 | ||||||
Directors stock awards | 45 | 90 | 153 | |||||||||
Legal and professional services | — | 59 | 55 | |||||||||
Income tax benefit | (2,570 | ) | — | — | ||||||||
Net share-based compensation effect | $ | 3,842 | $ | 4,581 | $ | 2,617 | ||||||
Schedule of weighted-average assumptions used in estimating the fair value of the stock options granted to employees | ' | |||||||||||
Year Ended | ||||||||||||
December 31, 2012 | ||||||||||||
Expected volatility | 77.2 | % | ||||||||||
Risk free interest rate | 1.8 | % | ||||||||||
Expected dividends | 1 | % | ||||||||||
Expected life (in years) | 8 | |||||||||||
Weighted average fair value | $ | 9.65 | ||||||||||
Summary of option activity for stock option plans | ' | |||||||||||
Weighted Average | Aggregate | |||||||||||
Weighted | Remaining | Intrinsic | ||||||||||
Average | Contractual Term | Value | ||||||||||
Shares | Exercise Price | (in years) | (in thousands) | |||||||||
Outstanding at January 1, 2013 | 315,369 | $ | 62.77 | |||||||||
Changes during the year: | ||||||||||||
Exercised | (5,186 | ) | 14.31 | |||||||||
Expired | (7,024 | ) | 539.38 | |||||||||
Forfeited | (511 | ) | 508.11 | |||||||||
Outstanding at December 31, 2013 | 302,648 | 51.79 | 7.9 | $ | 1,598 | |||||||
Vested and expected to vest at | ||||||||||||
December 31, 2013 | 302,648 | 51.79 | 7.9 | 1,598 | ||||||||
Exercisable at December 31, 2013 | 91,241 | 138.56 | 6.8 | 384 | ||||||||
Schedule of activity of restricted stock awards and units | ' | |||||||||||
Weighted Average | ||||||||||||
Grant Date | ||||||||||||
Shares | Fair Value | |||||||||||
Nonvested at January 1, 2013 | 1,098,806 | $ | 14.61 | |||||||||
Changes during the year: | ||||||||||||
Granted | 142,347 | 15.56 | ||||||||||
Forfeited | (103,329 | ) | 14.68 | |||||||||
Vested | (301,920 | ) | 14.65 | |||||||||
Nonvested at December 31, 2013 | 835,904 | 14.75 | ||||||||||
Vested and expected to vest at December 31, 2013 | 835,904 | 14.75 | ||||||||||
PENSION_PLANS_Tables
PENSION PLANS (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Defined Benefit Retirement Plan | ' | |||||||||||||
PENSION PLANS | ' | |||||||||||||
Schedule of information pertaining to the defined benefit retirement plan | ' | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 36,139 | $ | 34,091 | ||||||||||
Interest cost | 1,370 | 1,585 | ||||||||||||
Actuarial (gains) losses | (2,969 | ) | 2,923 | |||||||||||
Benefits paid | (2,357 | ) | (2,460 | ) | ||||||||||
Benefit obligation at end of the year | 32,183 | 36,139 | ||||||||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | 23,780 | 22,559 | ||||||||||||
Actual return on plan assets | 4,712 | 2,235 | ||||||||||||
Employer contributions | 1,647 | 1,446 | ||||||||||||
Benefits paid | (2,357 | ) | (2,460 | ) | ||||||||||
Fair value of plan assets at end of year | 27,782 | 23,780 | ||||||||||||
Funded status at end of year | $ | (4,401 | ) | $ | (12,359 | ) | ||||||||
Amounts recognized in AOCI | ||||||||||||||
Net actuarial losses | $ | (10,895 | ) | $ | (19,205 | ) | ||||||||
Benefit obligation actuarial assumptions | ||||||||||||||
Weighted average discount rate | 4.7 | % | 4 | % | ||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Components of net periodic benefit cost | ||||||||||||||
Interest cost | $ | 1,370 | $ | 1,585 | $ | 1,668 | ||||||||
Expected return on plan assets | (1,762 | ) | (1,791 | ) | (1,821 | ) | ||||||||
Amortization of net actuarial losses | 2,390 | 2,385 | 2,263 | |||||||||||
Net periodic benefit cost | $ | 1,998 | $ | 2,179 | $ | 2,110 | ||||||||
Net periodic cost actuarial assumptions | ||||||||||||||
Weighted average discount rate | 4 | % | 4.8 | % | 5.1 | % | ||||||||
Expected long-term rate of return on plan assets | 7.5 | % | 8 | % | 8 | % | ||||||||
Schedule of asset allocations by asset category | ' | |||||||||||||
December 31, | ||||||||||||||
2013 | 2012 | |||||||||||||
Equity securities | 59.9 | % | 64.7 | % | ||||||||||
Debt securities | 34.6 | 32.6 | ||||||||||||
Other | 5.5 | 2.7 | ||||||||||||
Total | 100 | % | 100 | % | ||||||||||
Schedule of fair values of the defined benefit retirement plan by asset category | ' | |||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||
(Dollars in thousands) | ||||||||||||||
December 31, 2013 | ||||||||||||||
Money market accounts | $ | 1,841 | $ | — | $ | — | $ | 1,841 | ||||||
Mutual funds | 9,795 | — | — | 9,795 | ||||||||||
Government obligations | — | 3,450 | — | 3,450 | ||||||||||
Common stocks | 8,744 | — | — | 8,744 | ||||||||||
Preferred stocks | 255 | — | — | 255 | ||||||||||
Corporate bonds and debentures | — | 3,697 | — | 3,697 | ||||||||||
$ | 20,635 | $ | 7,147 | $ | — | $ | 27,782 | |||||||
December 31, 2012 | ||||||||||||||
Money market accounts | $ | 1,022 | $ | — | $ | — | $ | 1,022 | ||||||
Mutual funds | 9,524 | — | — | 9,524 | ||||||||||
Government obligations | — | 3,317 | — | 3,317 | ||||||||||
Common stocks | 6,213 | — | — | 6,213 | ||||||||||
Preferred stocks | 279 | — | — | 279 | ||||||||||
Corporate bonds and debentures | — | 3,425 | — | 3,425 | ||||||||||
$ | 17,038 | $ | 6,742 | $ | — | $ | 23,780 | |||||||
Schedule of estimated future benefit payments | ' | |||||||||||||
Estimated future benefit payments are as follows (in thousands): | ||||||||||||||
Year ending December 31: | ||||||||||||||
2014 | $ | 2,427 | ||||||||||||
2015 | 2,413 | |||||||||||||
2016 | 2,432 | |||||||||||||
2017 | 2,411 | |||||||||||||
2018 | 2,401 | |||||||||||||
2019-2023 | 11,393 | |||||||||||||
Total | $ | 23,477 | ||||||||||||
SERP | ' | |||||||||||||
PENSION PLANS | ' | |||||||||||||
Schedule of information pertaining to the defined benefit retirement plan | ' | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Change in benefit obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 9,944 | $ | 8,558 | ||||||||||
Interest cost | 411 | 426 | ||||||||||||
Actuarial (gains) losses | (1,033 | ) | 1,175 | |||||||||||
Benefits paid | (215 | ) | (215 | ) | ||||||||||
Benefit obligation at end of year | 9,107 | 9,944 | ||||||||||||
Change in plan assets | ||||||||||||||
Fair value of plan assets at beginning of year | — | — | ||||||||||||
Employer contributions | 215 | 215 | ||||||||||||
Benefits paid | (215 | ) | (215 | ) | ||||||||||
Fair value of plan assets at end of year | — | — | ||||||||||||
Funded status at end of year | $ | (9,107 | ) | $ | (9,944 | ) | ||||||||
Amounts recognized in AOCI | ||||||||||||||
Net transition obligation | $ | (164 | ) | $ | (181 | ) | ||||||||
Prior service cost | (119 | ) | (137 | ) | ||||||||||
Net actuarial losses | (379 | ) | (1,482 | ) | ||||||||||
Total amounts recognized in AOCI | $ | (662 | ) | $ | (1,800 | ) | ||||||||
Benefit obligation actuarial assumptions | ||||||||||||||
Weighted average discount rate | 5 | % | 4.2 | % | ||||||||||
2013 | 2012 | 2011 | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Components of net periodic benefit cost | ||||||||||||||
Interest cost | $ | 411 | $ | 426 | $ | 412 | ||||||||
Amortization of net transition obligation | 17 | 17 | 17 | |||||||||||
Amortization of prior service cost | 18 | 18 | 18 | |||||||||||
Amortization of net actuarial (gains) losses | 71 | (4 | ) | (17 | ) | |||||||||
Net periodic benefit cost | $ | 517 | $ | 457 | $ | 430 | ||||||||
Net periodic cost actuarial assumptions | ||||||||||||||
Weighted average discount rate | 4.2 | % | 5 | % | 5 | % | ||||||||
Schedule of estimated amortization of components included in AOCI that will be recognized into net periodic cost in the next fiscal year | ' | |||||||||||||
The estimated amortization of components included in AOCI that will be recognized into net periodic cost for 2014 is as follows (in thousands): | ||||||||||||||
Amortization of net transition obligation | $ | 17 | ||||||||||||
Amortization of prior service cost | 18 | |||||||||||||
Amortization of net actuarial losses | 2 | |||||||||||||
Schedule of estimated future benefit payments | ' | |||||||||||||
Estimated future benefit payments reflecting expected future service for the SERP are as follows (in thousands): | ||||||||||||||
Year ending December 31: | ||||||||||||||
2014 | $ | 215 | ||||||||||||
2015 | 211 | |||||||||||||
2016 | 225 | |||||||||||||
2017 | 415 | |||||||||||||
2018 | 411 | |||||||||||||
2019-2023 | 2,425 | |||||||||||||
Total | $ | 3,902 |
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
OPERATING LEASES | ' | ||||||||||
Schedule of net rent expense for all operating leases | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Rent expense charged to net occupancy | $ | 9,840 | $ | 10,053 | $ | 10,286 | |||||
Less sublease income | (52 | ) | (25 | ) | (74 | ) | |||||
Net rent expense charged to net occupancy | 9,788 | 10,028 | 10,212 | ||||||||
Rent expense charged to equipment expense | 93 | 104 | 162 | ||||||||
Total net rent expense | $ | 9,881 | $ | 10,132 | $ | 10,374 | |||||
Schedule of future minimum rental commitments for all noncancellable operating leases that had initial lease terms in excess of one year | ' | ||||||||||
The following is a schedule of future minimum rental commitments for all noncancellable operating leases that had initial lease terms in excess of one year at December 31, 2013 (in thousands): | |||||||||||
Year ending December 31: | |||||||||||
2014 | $ | 7,847 | |||||||||
2015 | 6,626 | ||||||||||
2016 | 5,901 | ||||||||||
2017 | 4,943 | ||||||||||
2018 | 3,621 | ||||||||||
Thereafter | 23,664 | ||||||||||
Total | $ | 52,602 | |||||||||
Schedule of future minimum rental income for noncancellable operating leases that had initial lease terms in excess of one year | ' | ||||||||||
The following is a schedule of future minimum rental income for those noncancellable operating leases that had initial lease terms in excess of one year at December 31, 2013 (in thousands): | |||||||||||
Year ending December 31: | |||||||||||
2014 | $ | 3,045 | |||||||||
2015 | 2,331 | ||||||||||
2016 | 1,340 | ||||||||||
2017 | 795 | ||||||||||
2018 | 225 | ||||||||||
Thereafter | 50 | ||||||||||
Total | $ | 7,786 |
INCOME_AND_FRANCHISE_TAXES_Tab
INCOME AND FRANCHISE TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
INCOME AND FRANCHISE TAXES | ' | ||||||||||
Schedule of components of income tax benefit | ' | ||||||||||
Current | Deferred | Total | |||||||||
(Dollars in thousands) | |||||||||||
Year ended December 31, 2013 | |||||||||||
Federal | $ | — | $ | (81,613 | ) | $ | (81,613 | ) | |||
State | 109 | (30,743 | ) | (30,634 | ) | ||||||
Total | $ | 109 | $ | (112,356 | ) | $ | (112,247 | ) | |||
Year ended December 31, 2012 | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Total | $ | — | $ | — | $ | — | |||||
Year ended December 31, 2011 | |||||||||||
Federal | $ | — | $ | — | $ | — | |||||
State | — | — | — | ||||||||
Total | $ | — | $ | — | $ | — | |||||
Schedule of the reasons of difference between the income tax benefit and the expected tax benefit | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(Dollars in thousands) | |||||||||||
Computed “expected” tax expense (benefit) | $ | 20,940 | $ | 16,598 | $ | 12,802 | |||||
Increase (decrease) in taxes resulting from: | |||||||||||
Tax-exempt interest | (1,431 | ) | (820 | ) | (273 | ) | |||||
Other tax-exempt income | (810 | ) | (976 | ) | (1,441 | ) | |||||
Low-income housing and energy tax credits | (1,557 | ) | (1,607 | ) | (1,678 | ) | |||||
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance | 2,389 | 2,540 | 546 | ||||||||
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense | (132,061 | ) | (15,862 | ) | (9,870 | ) | |||||
Other | 283 | 127 | (86 | ) | |||||||
Total | $ | (112,247 | ) | $ | — | $ | — | ||||
Schedule of the tax effects of temporary differences giving rise to significant portions of the deferred tax assets and deferred tax liabilities | ' | ||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||
Deferred tax assets | |||||||||||
Allowance for loan and lease losses | $ | 28,926 | $ | 33,418 | |||||||
Accrued expenses | 2,950 | 2,744 | |||||||||
Employee retirement benefits | 8,762 | 15,773 | |||||||||
Federal and state tax credit carryforwards | 37,449 | 35,305 | |||||||||
Investment write-downs and write-offs | 3,051 | 3,051 | |||||||||
Interest on nonaccrual loans | 1,962 | 4,047 | |||||||||
Federal and state net operating loss carryforwards | 87,757 | 86,339 | |||||||||
Other | 15,486 | 26,289 | |||||||||
Total deferred tax assets | $ | 186,343 | $ | 206,966 | |||||||
Deferred tax liabilities | |||||||||||
Intangible assets | $ | 13,117 | $ | 14,962 | |||||||
FHLB stock dividends received | 11,848 | 12,345 | |||||||||
Net unrealized gain on derivatives recognized through AOCI | — | 1,786 | |||||||||
Leases | 2,755 | 3,599 | |||||||||
Deferred gain on curtailed retirement plan | 3,339 | 3,339 | |||||||||
Liability on utilization of state tax credits | 7,722 | 7,475 | |||||||||
Other | 3,614 | 15,961 | |||||||||
Total deferred tax liabilities | $ | 42,395 | $ | 59,467 | |||||||
Deferred tax valuation allowance | $ | 6,700 | $ | 147,499 | |||||||
Net deferred tax assets | $ | 137,248 | $ | — |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
Schedule of components of other comprehensive income (loss) | ' | |||||||||||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (43,687 | ) | $ | (15,577 | ) | $ | (28,110 | ) | |||||
Less: Reclassification adjustment for gains realized in net income | (6,266 | ) | (2,511 | ) | (3,755 | ) | ||||||||
Net unrealized losses on investment securities | (49,953 | ) | (18,088 | ) | (31,865 | ) | ||||||||
Net unrealized gains on derivatives: | ||||||||||||||
Reclassification adjustment for losses realized in net income | 394 | (10,599 | ) | 10,993 | ||||||||||
Net unrealized gains on derivatives | 394 | (10,599 | ) | 10,993 | ||||||||||
Defined benefit plans: | ||||||||||||||
Net actuarial gains arising during the period | 6,952 | 2,591 | 4,361 | |||||||||||
Amortization of net actuarial losses | 2,461 | 986 | 1,475 | |||||||||||
Amortization of net transition obligation | 17 | 7 | 10 | |||||||||||
Amortization of prior service cost | 18 | 7 | 11 | |||||||||||
Defined benefit plans, net | 9,448 | 3,591 | 5,857 | |||||||||||
Other comprehensive loss | $ | (40,111 | ) | $ | (25,096 | ) | $ | (15,015 | ) | |||||
Year Ended December 31, 2012 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (2,653 | ) | $ | — | $ | (2,653 | ) | ||||||
Less: Reclassification adjustment for losses realized in net income | 1,382 | — | 1,382 | |||||||||||
Net unrealized losses on investment securities | (1,271 | ) | — | (1,271 | ) | |||||||||
Net unrealized losses on derivatives: | ||||||||||||||
Reclassification adjustment for gains realized in net income | (434 | ) | — | (434 | ) | |||||||||
Net unrealized losses on derivatives | (434 | ) | — | (434 | ) | |||||||||
Defined benefit plans: | ||||||||||||||
Net actuarial losses arising during the period | (3,653 | ) | — | (3,653 | ) | |||||||||
Amortization of net actuarial losses | 2,381 | 51 | 2,330 | |||||||||||
Amortization of net transition obligation | 17 | — | 17 | |||||||||||
Amortization of prior service cost | 17 | — | 17 | |||||||||||
Defined benefit plans, net | (1,238 | ) | 51 | (1,289 | ) | |||||||||
Other comprehensive loss | $ | (2,943 | ) | $ | 51 | $ | (2,994 | ) | ||||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Year Ended December 31, 2011 | ||||||||||||||
Net unrealized gains on investment securities: | ||||||||||||||
Net unrealized gains arising during the period | $ | 22,190 | $ | — | $ | 22,190 | ||||||||
Less: Reclassification adjustment for gains realized in net income | (1,164 | ) | — | (1,164 | ) | |||||||||
Net unrealized gains on investment securities | 21,026 | — | 21,026 | |||||||||||
Net unrealized losses on derivatives: | ||||||||||||||
Reclassification adjustment for gains realized in net income | (3,235 | ) | — | (3,235 | ) | |||||||||
Net unrealized losses on derivatives | (3,235 | ) | — | (3,235 | ) | |||||||||
Defined benefit plans: | ||||||||||||||
Net actuarial losses arising during the period | (3,274 | ) | — | (3,274 | ) | |||||||||
Amortization of net actuarial losses | 2,246 | 70 | 2,176 | |||||||||||
Amortization of net transition obligation | 18 | — | 18 | |||||||||||
Amortization of prior service cost | 18 | — | 18 | |||||||||||
Defined benefit plans, net | (992 | ) | 70 | (1,062 | ) | |||||||||
Other comprehensive income | $ | 16,799 | $ | 70 | $ | 16,729 | ||||||||
Schedule of changes in each component of AOCI, net of tax | ' | |||||||||||||
Defined | Accumulated Other | |||||||||||||
Investment | Benefit | Comprehensive | ||||||||||||
Securities | Derivatives | Plans | Income (Loss) | |||||||||||
(Dollars in thousands) | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||
Balance at beginning of period | $ | 22,740 | $ | (10,993 | ) | $ | (12,577 | ) | $ | (830 | ) | |||
Other comprehensive income (loss) before reclassifications | (28,110 | ) | — | 4,361 | (23,749 | ) | ||||||||
Amounts reclassified from AOCI | (3,755 | ) | 10,993 | 1,496 | 8,734 | |||||||||
Total other comprehensive income (loss) | (31,865 | ) | 10,993 | 5,857 | (15,015 | ) | ||||||||
Balance at end of period | $ | (9,125 | ) | $ | — | $ | (6,720 | ) | $ | (15,845 | ) | |||
Year Ended December 31, 2012 | ||||||||||||||
Balance at beginning of period | $ | 24,011 | $ | (10,559 | ) | $ | (11,288 | ) | $ | 2,164 | ||||
Other comprehensive loss before reclassifications | (2,653 | ) | — | (3,653 | ) | (6,306 | ) | |||||||
Amounts reclassified from AOCI | 1,382 | (434 | ) | 2,364 | 3,312 | |||||||||
Total other comprehensive loss | (1,271 | ) | (434 | ) | (1,289 | ) | (2,994 | ) | ||||||
Balance at end of period | $ | 22,740 | $ | (10,993 | ) | $ | (12,577 | ) | $ | (830 | ) | |||
Year Ended December 31, 2011 | ||||||||||||||
Balance at beginning of period | $ | 2,985 | $ | (7,324 | ) | $ | (10,226 | ) | $ | (14,565 | ) | |||
Other comprehensive income (loss) before reclassifications | 22,190 | — | (3,274 | ) | 18,916 | |||||||||
Amounts reclassified from AOCI | (1,164 | ) | (3,235 | ) | 2,212 | (2,187 | ) | |||||||
Total other comprehensive income (loss) | 21,026 | (3,235 | ) | (1,062 | ) | 16,729 | ||||||||
Balance at end of period | $ | 24,011 | $ | (10,559 | ) | $ | (11,288 | ) | $ | 2,164 | ||||
Schedule of amounts reclassified out of each component of AOCI | ' | |||||||||||||
Affected Line Item in the | ||||||||||||||
Details about AOCI Components | Statement Where Net | |||||||||||||
(Dollars in thousands) | Amount Reclassified from AOCI | Income is Presented | ||||||||||||
Year ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Sale of investment securities available for sale | $ | 6,266 | $ | (1,382 | ) | $ | 1,164 | Investment securities gain (loss) | ||||||
(2,511 | ) | — | — | Tax expense | ||||||||||
$ | 3,755 | $ | (1,382 | ) | $ | 1,164 | Net of tax | |||||||
Unrealized gains (losses) on derivatives | $ | (394 | ) | $ | 434 | $ | 3,235 | Interest income | ||||||
(10,599 | ) | — | — | Tax expense | ||||||||||
$ | (10,993 | ) | $ | 434 | $ | 3,235 | Net of tax | |||||||
Amortization of defined benefit plan items | ||||||||||||||
Net actuarial losses | $ | (2,461 | ) | $ | (2,381 | ) | $ | (2,246 | ) | -1 | ||||
Net transition obligation | (17 | ) | (17 | ) | (18 | ) | -1 | |||||||
Prior service cost | (18 | ) | (17 | ) | (18 | ) | -1 | |||||||
(2,496 | ) | (2,415 | ) | (2,282 | ) | Total before tax | ||||||||
1,000 | 51 | 70 | Tax benefit | |||||||||||
$ | (1,496 | ) | $ | (2,364 | ) | $ | (2,212 | ) | Net of tax | |||||
Total reclassifications for the period | $ | (8,734 | ) | $ | (3,312 | ) | $ | 2,187 | Net of tax | |||||
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
EARNINGS PER SHARE | ' | ||||||||||
Schedule of information used to compute basic and diluted earnings per share | ' | ||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In thousands, except per share data) | |||||||||||
Net income | $ | 172,075 | $ | 47,421 | $ | 36,571 | |||||
Preferred stock dividends, accretion of discount and conversion of preferred stock to common stock | — | — | (83,897 | ) | |||||||
Net income available to common shareholders | $ | 172,075 | $ | 47,421 | $ | 120,468 | |||||
Weighted average shares outstanding - basic | 41,961 | 41,720 | 35,891 | ||||||||
Dilutive effect of employee stock options and awards | 341 | 278 | 415 | ||||||||
Dilutive effect of deferred salary restricted stock units | 1 | 64 | 16 | ||||||||
Dilutive effect of Treasury warrants | 14 | 22 | 20 | ||||||||
Weighted average shares outstanding - diluted | 42,317 | 42,084 | 36,342 | ||||||||
Basic earnings per share | $ | 4.1 | $ | 1.14 | $ | 3.36 | |||||
Diluted earnings per share | $ | 4.07 | $ | 1.13 | $ | 3.31 |
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | |||||||
Schedule of financial instruments with off-balance sheet risk | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 652,717 | $ | 554,477 | ||||
Standby letters of credit and financial guarantees written | 1,023 | 13,813 | ||||||
Financial instruments whose contract amounts exceed the amount of credit risk: | ||||||||
Interest rate options | 37,093 | 67,072 | ||||||
Forward interest rate contracts | 24,244 | 49,222 | ||||||
FAIR_VALUE_OF_ASSETS_AND_LIABI1
FAIR VALUE OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE OF ASSETS AND LIABILITIES | ' | ||||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments | ' | ||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
Quoted Prices in | Significant | ||||||||||||||||
Active Markets for | Significant Other | Unobservable | |||||||||||||||
Carrying | Estimated | Identical Assets | Observable Inputs | Inputs | |||||||||||||
amount | fair value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | $ | 45,092 | $ | 45,092 | $ | 45,092 | $ | — | $ | — | |||||||
Interest-bearing deposits in other banks | 4,256 | 4,256 | 4,256 | — | — | ||||||||||||
Investment securities | 1,660,046 | 1,646,704 | 875 | 1,635,311 | 10,518 | ||||||||||||
Loans held for sale | 12,370 | 12,370 | — | — | 12,370 | ||||||||||||
Net loans and leases | 2,546,781 | 2,430,282 | — | 64,705 | 2,365,577 | ||||||||||||
Accrued interest receivable | 14,072 | 14,072 | 14,072 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | 891,017 | 891,017 | 891,017 | — | — | ||||||||||||
Interest-bearing demand and savings deposits | 1,935,635 | 1,935,635 | 1,935,635 | — | — | ||||||||||||
Time deposits | 1,109,521 | 1,111,319 | — | — | 1,111,319 | ||||||||||||
Short-term debt | 8,015 | 8,015 | — | 8,015 | — | ||||||||||||
Long-term debt | 92,799 | 39,446 | — | 39,446 | — | ||||||||||||
Accrued interest payable (included in other liabilities) | 1,040 | 1,040 | 1,040 | — | — | ||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||
Commitments to extend credit | 652,717 | 3,264 | — | 3,264 | — | ||||||||||||
Standby letters of credit and financial guarantees written | 1,023 | 8 | — | 8 | — | ||||||||||||
Interest rate options | 37,093 | 70 | — | 70 | — | ||||||||||||
Forward interest rate contracts | 24,244 | 210 | — | 210 | — | ||||||||||||
December 31, 2012 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | $ | 56,473 | $ | 56,473 | $ | 56,473 | $ | — | $ | — | |||||||
Interest-bearing deposits in other banks | 120,902 | 120,902 | 120,902 | — | — | ||||||||||||
Investment securities | 1,698,593 | 1,699,273 | 906 | 1,685,541 | 12,826 | ||||||||||||
Loans held for sale | 38,283 | 38,283 | — | — | 38,283 | ||||||||||||
Net loans and leases | 2,107,531 | 2,083,514 | — | 108,081 | 1,975,433 | ||||||||||||
Accrued interest receivable | 13,896 | 13,896 | 13,896 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | 843,292 | 843,292 | 843,292 | — | — | ||||||||||||
Interest-bearing demand and savings deposits | 1,858,849 | 1,858,849 | 1,858,849 | — | — | ||||||||||||
Time deposits | 978,631 | 981,059 | — | — | 981,059 | ||||||||||||
Long-term debt | 108,281 | 43,156 | — | 43,156 | — | ||||||||||||
Accrued interest payable (included in other liabilities) | 13,131 | 13,131 | 13,131 | — | — | ||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||
Commitments to extend credit | 554,477 | 2,772 | — | 2,772 | — | ||||||||||||
Standby letters of credit and financial guarantees written | 13,813 | 104 | — | 104 | — | ||||||||||||
Interest rate options | 67,072 | 106 | — | 106 | — | ||||||||||||
Forward interest rate contracts | 49,222 | (353 | ) | — | (353 | ) | — | ||||||||||
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Fair Value at Reporting Date Using | |||||||||||||||||
Fair | Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Debt securities: | |||||||||||||||||
States and political subdivisions | $ | 179,357 | $ | — | $ | 168,839 | $ | 10,518 | |||||||||
Corporate securities | 158,095 | — | 158,095 | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government sponsored entities | 927,626 | — | 927,626 | — | |||||||||||||
Non-agency collateralized mortgage obligations | 142,046 | — | 142,046 | — | |||||||||||||
Other | 875 | 875 | — | — | |||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | 279 | — | 279 | — | |||||||||||||
Total | $ | 1,408,278 | $ | 875 | $ | 1,396,885 | $ | 10,518 | |||||||||
December 31, 2012 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Debt securities: | |||||||||||||||||
U.S. Government sponsored entities | $ | 280,939 | $ | — | $ | 280,939 | $ | — | |||||||||
States and political subdivisions | 185,911 | — | 173,085 | 12,826 | |||||||||||||
Corporate securities | 127,946 | — | 127,946 | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government sponsored entities | 941,043 | — | 941,043 | — | |||||||||||||
Other | 906 | 906 | — | — | |||||||||||||
Derivatives: | |||||||||||||||||
Interest rate contracts | (248 | ) | — | (248 | ) | — | |||||||||||
Amended TARP warrant | (819 | ) | — | (819 | ) | — | |||||||||||
Total | $ | 1,535,678 | $ | 906 | $ | 1,521,946 | $ | 12,826 | |||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Available for sale debt | |||||||||||||||||
securities - States and | |||||||||||||||||
political subdivisions | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance at December 31, 2011 | $ | 12,994 | |||||||||||||||
Principal payments received | (377 | ) | |||||||||||||||
Unrealized net gain included in other comprehensive income | 209 | ||||||||||||||||
Balance at December 31, 2012 | $ | 12,826 | |||||||||||||||
Principal payments received | (2,797 | ) | |||||||||||||||
Purchases, sales, issuances and settlements, net | 1,146 | ||||||||||||||||
Unrealized net loss included in other comprehensive income | (657 | ) | |||||||||||||||
Balance at December 31, 2013 | $ | 10,518 | |||||||||||||||
Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis | ' | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | ||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | Losses | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans (1) | $ | 64,705 | $ | — | $ | 64,705 | $ | — | $ | 3,298 | |||||||
Other real estate (2) | 5,163 | — | 5,163 | — | 362 | ||||||||||||
$ | 3,660 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||
Impaired loans (1) | $ | 108,081 | $ | — | $ | 108,081 | $ | — | $ | 11,852 | |||||||
Other real estate (2) | 10,686 | — | 10,686 | — | 3,529 | ||||||||||||
$ | 15,381 | ||||||||||||||||
(1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral. | |||||||||||||||||
(2) Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
Schedule of segment profits (losses) and assets | ' | |||||||||||||
Banking | ||||||||||||||
Operations | Treasury | All Others | Total | |||||||||||
(Dollars in thousands) | ||||||||||||||
Year ended December 31, 2013: | ||||||||||||||
Net interest income | $ | 101,822 | $ | 31,287 | $ | — | $ | 133,109 | ||||||
Intersegment net interest income (expense) | 14,761 | (27,807 | ) | 13,046 | — | |||||||||
Credit (provision) for loan and lease losses | 11,310 | — | — | 11,310 | ||||||||||
Other operating income | 49,294 | 4,185 | 1,466 | 54,945 | ||||||||||
Other operating expense | (79,552 | ) | (3,938 | ) | (56,046 | ) | (139,536 | ) | ||||||
Administrative and overhead expense allocation | (55,052 | ) | (937 | ) | 55,989 | — | ||||||||
Income taxes | 117,088 | 218 | (5,059 | ) | 112,247 | |||||||||
Net income | $ | 159,671 | $ | 3,008 | $ | 9,396 | $ | 172,075 | ||||||
At December 31, 2013: | ||||||||||||||
Investment securities | $ | — | $ | 1,660,046 | $ | — | $ | 1,660,046 | ||||||
Loans and leases (including loans held for sale) | 2,642,971 | — | — | 2,642,971 | ||||||||||
Other | 108,639 | 257,032 | 72,510 | 438,181 | ||||||||||
Total assets | $ | 2,751,610 | $ | 1,917,078 | $ | 72,510 | $ | 4,741,198 | ||||||
Year ended December 31, 2012: | ||||||||||||||
Net interest income | $ | 92,545 | $ | 27,166 | $ | — | $ | 119,711 | ||||||
Intersegment net interest income (expense) | 32,954 | (22,228 | ) | (10,726 | ) | — | ||||||||
Credit (provision) for loan and lease losses | 18,885 | — | — | 18,885 | ||||||||||
Other operating income | 55,838 | 5,209 | (304 | ) | 60,743 | |||||||||
Other operating expense | (91,266 | ) | (1,868 | ) | (58,784 | ) | (151,918 | ) | ||||||
Administrative and overhead expense allocation | (57,640 | ) | (939 | ) | 58,579 | — | ||||||||
Net income (loss) | $ | 51,316 | $ | 7,340 | $ | (11,235 | ) | $ | 47,421 | |||||
At December 31, 2012: | ||||||||||||||
Investment securities | $ | — | $ | 1,698,593 | $ | — | $ | 1,698,593 | ||||||
Loans and leases (including loans held for sale) | 2,242,227 | — | — | 2,242,227 | ||||||||||
Other | (7,267 | ) | 363,815 | 73,000 | 429,548 | |||||||||
Total assets | $ | 2,234,960 | $ | 2,062,408 | $ | 73,000 | $ | 4,370,368 | ||||||
Year ended December 31, 2011: | ||||||||||||||
Net interest income | $ | 95,182 | $ | 22,639 | $ | — | $ | 117,821 | ||||||
Intersegment net interest income (expense) | 45,564 | (18,609 | ) | (26,955 | ) | — | ||||||||
Credit (provision) for loan and lease losses | 40,690 | — | — | 40,690 | ||||||||||
Other operating income | 48,686 | 7,312 | 1,004 | 57,002 | ||||||||||
Other operating expense | (115,910 | ) | (7,163 | ) | (55,869 | ) | (178,942 | ) | ||||||
Administrative and overhead expense allocation | (54,408 | ) | (627 | ) | 55,035 | — | ||||||||
Net income (loss) | $ | 59,804 | $ | 3,552 | $ | (26,785 | ) | $ | 36,571 | |||||
At December 31, 2011: | ||||||||||||||
Investment securities | $ | — | $ | 1,493,925 | $ | — | $ | 1,493,925 | ||||||
Loans and leases (including loans held for sale) | 2,114,737 | — | — | 2,114,737 | ||||||||||
Other | 23,858 | 429,141 | 71,204 | 524,203 | ||||||||||
Total assets | $ | 2,138,595 | $ | 1,923,066 | $ | 71,204 | $ | 4,132,865 |
PARENT_COMPANY_AND_REGULATORY_1
PARENT COMPANY AND REGULATORY RESTRICTIONS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
PARENT COMPANY AND REGULATORY RESTRICTIONS | ' | ||||||||||||||||
Schedule of actual and required capital ratios as well as the minimum capital adequacy requirements applicable generally to all financial institutions | ' | ||||||||||||||||
Minimum required for | Minimum required to | ||||||||||||||||
Actual | capital adequacy purposes | be well-capitalized | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Company | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Leverage capital | $ | 632,724 | 13.7 | % | $ | 184,995 | 4 | % | $ | 231,244 | 5 | % | |||||
Tier 1 risk-based capital | 632,724 | 20.3 | 124,671 | 4 | 187,007 | 6 | |||||||||||
Total risk-based capital | 672,317 | 21.6 | 249,343 | 8 | 311,678 | 10 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Leverage capital | $ | 609,394 | 14.3 | % | $ | 170,176 | 4 | % | $ | 212,720 | 5 | % | |||||
Tier 1 risk-based capital | 609,394 | 22.5 | 108,128 | 4 | 162,192 | 6 | |||||||||||
Total risk-based capital | 644,044 | 23.8 | 216,256 | 8 | 270,320 | 10 | |||||||||||
Central Pacific Bank | |||||||||||||||||
As of December 31, 2013: | |||||||||||||||||
Leverage capital | $ | 610,753 | 13.2 | % | $ | 184,736 | 4 | % | $ | 230,920 | 5 | % | |||||
Tier 1 risk-based capital | 610,753 | 19.6 | 124,425 | 4 | 186,637 | 6 | |||||||||||
Total risk-based capital | 650,216 | 20.9 | 248,850 | 8 | 311,062 | 10 | |||||||||||
As of December 31, 2012: | |||||||||||||||||
Leverage capital | $ | 580,860 | 13.6 | % | $ | 170,274 | 4 | % | $ | 212,843 | 5 | % | |||||
Tier 1 risk-based capital | 580,860 | 21.5 | 108,229 | 4 | 162,343 | 6 | |||||||||||
Total risk-based capital | 615,523 | 22.7 | 216,457 | 8 | 270,572 | 10 | |||||||||||
Schedule of condensed balance sheets | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 19,629 | $ | 46,686 | |||||||||||||
Investment securities available for sale | 875 | 906 | |||||||||||||||
Investment in subsidiary bank, at equity in underlying net assets | 710,122 | 581,248 | |||||||||||||||
Investment in other subsidiaries, at equity in underlying assets | 554 | 549 | |||||||||||||||
Accrued interest receivable and other assets | 23,202 | 6,845 | |||||||||||||||
Total assets | $ | 754,382 | $ | 636,234 | |||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||
Long-term debt | $ | 92,785 | $ | 108,249 | |||||||||||||
Other liabilities | 1,484 | 23,163 | |||||||||||||||
Total liabilities | 94,269 | 131,412 | |||||||||||||||
Shareholders’ equity: | |||||||||||||||||
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at December 31, 2013 and 2012 | — | — | |||||||||||||||
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding 42,112,633 and 41,867,046 shares at December 31, 2013 and 2012, respectively | 784,547 | 784,512 | |||||||||||||||
Surplus | 75,498 | 70,567 | |||||||||||||||
Accumulated deficit | (184,087 | ) | (349,427 | ) | |||||||||||||
Accumulated other comprehensive loss | (15,845 | ) | (830 | ) | |||||||||||||
Total shareholders’ equity | 660,113 | 504,822 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 754,382 | $ | 636,234 | |||||||||||||
Schedule of condensed statements of operations | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Income: | |||||||||||||||||
Interest income: | |||||||||||||||||
Interest from subsidiary banks | $ | 30 | $ | 48 | $ | 109 | |||||||||||
Other income | 2,001 | 9 | 1,047 | ||||||||||||||
Total income | 2,031 | 57 | 1,156 | ||||||||||||||
Expense: | |||||||||||||||||
Interest on long-term debt | 3,118 | 3,687 | 3,392 | ||||||||||||||
Other expenses | 2,679 | 3,081 | 3,584 | ||||||||||||||
Total expenses | 5,797 | 6,768 | 6,976 | ||||||||||||||
Loss before income taxes and equity in undistributed income of subsidiaries | (3,766 | ) | (6,711 | ) | (5,820 | ) | |||||||||||
Income tax benefit | (31,891 | ) | — | — | |||||||||||||
Income (loss) before equity in undistributed income of subsidiaries | 28,125 | (6,711 | ) | (5,820 | ) | ||||||||||||
Equity in undistributed income of subsidiary bank | 143,945 | 54,124 | 42,377 | ||||||||||||||
Equity in undistributed income of other subsidiaries | 5 | 8 | 14 | ||||||||||||||
Net income | $ | 172,075 | $ | 47,421 | $ | 36,571 | |||||||||||
Schedule of condensed statements of cash flows | ' | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income | $ | 172,075 | $ | 47,421 | $ | 36,571 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Deferred income tax benefit | (19,440 | ) | — | — | |||||||||||||
Equity in income of subsidiary bank | (143,945 | ) | (54,124 | ) | (42,377 | ) | |||||||||||
Equity in undistributed income of other subsidiaries | (5 | ) | (8 | ) | (14 | ) | |||||||||||
Share-based compensation | 4,931 | 90 | 153 | ||||||||||||||
Other, net | (18,548 | ) | 7,681 | 4,755 | |||||||||||||
Net cash provided by (used in) operating activities | (4,932 | ) | 1,060 | (912 | ) | ||||||||||||
Cash flows from investing activities | |||||||||||||||||
Investment in subsidiary bank | — | — | (283,000 | ) | |||||||||||||
Distribution from unconsolidated subsidiaries | 9,000 | — | — | ||||||||||||||
Contributions to unconsolidated subsidiaries | (9,000 | ) | — | — | |||||||||||||
Net cash used in investing activities | — | — | (283,000 | ) | |||||||||||||
Cash flows from financing activities | |||||||||||||||||
Net proceeds from issuance of common stock and stock option exercises | 74 | — | 323,538 | ||||||||||||||
Repayments of long-term debt | (15,464 | ) | — | — | |||||||||||||
Dividends paid | (6,735 | ) | — | — | |||||||||||||
Net cash provided by (used in) financing activities | (22,125 | ) | — | 323,538 | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (27,057 | ) | 1,060 | 39,626 | |||||||||||||
Cash and cash equivalents | |||||||||||||||||
At beginning of year | 46,686 | 45,626 | 6,000 | ||||||||||||||
At end of year | $ | 19,629 | $ | 46,686 | $ | 45,626 |
UNAUDITED_QUARTERLY_FINANCIAL_1
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
UNAUDITED QUARTERLY FINANCIAL INFORMATION | ' | ||||||||||||||||
Schedule of unaudited quarterly financial information | ' | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | Full Year | |||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||
2013:00:00 | |||||||||||||||||
Total interest income | $ | 32,595 | $ | 34,992 | $ | 35,558 | $ | 37,133 | $ | 140,278 | |||||||
Total interest expense | 1,926 | 1,819 | 1,787 | 1,637 | 7,169 | ||||||||||||
Net interest income | 30,669 | 33,173 | 33,771 | 35,496 | 133,109 | ||||||||||||
Provision (credit) for loan and lease losses | (6,561 | ) | (227 | ) | (3,189 | ) | (1,333 | ) | (11,310 | ) | |||||||
Net interest income after provision for loan and lease losses | 37,230 | 33,400 | 36,960 | 36,829 | 144,419 | ||||||||||||
Investment securities gains | — | — | — | 482 | 482 | ||||||||||||
Income before income taxes | 17,507 | 16,212 | 12,378 | 13,731 | 59,828 | ||||||||||||
Net income | 137,309 | 14,267 | 10,204 | 10,295 | 172,075 | ||||||||||||
Basic earnings per share | 3.28 | 0.34 | 0.24 | 0.24 | 4.1 | ||||||||||||
Diluted earnings per share | 3.25 | 0.34 | 0.24 | 0.24 | 4.07 | ||||||||||||
2012:00:00 | |||||||||||||||||
Total interest income | $ | 32,903 | $ | 32,479 | $ | 31,674 | $ | 31,389 | $ | 128,445 | |||||||
Total interest expense | 2,401 | 2,220 | 2,114 | 1,999 | 8,734 | ||||||||||||
Net interest income | 30,502 | 30,259 | 29,560 | 29,390 | 119,711 | ||||||||||||
Provision (credit) for loan and lease losses | (4,990 | ) | (6,630 | ) | (4,982 | ) | (2,283 | ) | (18,885 | ) | |||||||
Net interest income after provision for loan and lease losses | 35,492 | 36,889 | 34,542 | 31,673 | 138,596 | ||||||||||||
Investment securities gains | — | — | 789 | — | 789 | ||||||||||||
Income before income taxes | 13,478 | 10,812 | 10,721 | 12,410 | 47,421 | ||||||||||||
Net income | 13,478 | 10,812 | 10,721 | 12,410 | 47,421 | ||||||||||||
Basic earnings per share | 0.32 | 0.26 | 0.26 | 0.3 | 1.14 | ||||||||||||
Diluted earnings per share | 0.32 | 0.26 | 0.26 | 0.29 | 1.13 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Feb. 28, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Feb. 02, 2011 | 6-May-11 | Feb. 17, 2011 | Feb. 17, 2011 | Dec. 31, 2013 | Jun. 06, 2013 | Feb. 28, 2011 | Dec. 31, 2013 | Feb. 18, 2011 | Feb. 17, 2011 | Apr. 04, 2012 | Jun. 22, 2011 | Feb. 18, 2011 | Feb. 28, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Feb. 18, 2011 | |
item | Common Stock | Common Stock | Common Stock | Common Stock | Central Pacific Bank | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | |||
Rights | Rights | Rights | item | Warrant | Warrant | Warrant | Warrant | Warrant | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | |||||
Maximum | Warrant | Warrant | ||||||||||||||||||
Maximum | Maximum | |||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of branches | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ATMs | ' | ' | ' | ' | ' | ' | ' | 112 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from private placement offering | $325,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock and accrued unpaid dividends converted to common stock | ' | ' | 56,201,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,200,000 | 56,200,000 | 56,200,000 | ' | ' |
Term of warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of fractional shares of common stock issued as a result of the Reverse Stock Split | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reverse stock split conversion ratio | ' | ' | ' | 0.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price (in dollars per share) | ' | ' | ' | ' | $10 | $10 | ' | ' | ' | ' | ' | $10 | $255.40 | ' | ' | ' | ' | ' | ' | ' |
Securities entitlement to purchase | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,770,117 | 2,850,000 | ' | ' | ' | ' | ' |
Number of shares that can be purchased upon exercise of warrants or rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,288 | 79,288 |
Exercise price of future issues below which an adjustment to current warrant or rights exercise price will be adjusted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accepted bid amount of warrant | ' | ' | ' | ' | ' | ' | ' | ' | $752,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
loan | ||
Consolidation | ' | ' |
Investments in unconsolidated subsidiaries accounted for under the equity methods | $0.60 | $0.70 |
Investments in unconsolidated subsidiaries accounted for under the cost methods | 8.5 | 10.2 |
Loans Held for Sale | ' | ' |
Number of types of loans held for sale | 2 | ' |
Residential mortgage repurchase reserves | 2.9 | 3.6 |
Loans | ' | ' |
Holding period limit for placing loans on nonaccrual status | '90 days | ' |
Interest income recognized | 0 | ' |
Leases | ' | ' |
Declined term of lease portfolio | '4 years | ' |
Leases outstanding balance | $6.20 | $10.50 |
Central Pacific Bank | ' | ' |
Consolidation | ' | ' |
Number of wholly-owned subsidiaries | 2 | ' |
Pacific Access Mortgage, LLC | ' | ' |
Consolidation | ' | ' |
Ownership interest (as a percent) | 50.00% | ' |
Gentry Home Loans, LLC | ' | ' |
Consolidation | ' | ' |
Ownership interest (as a percent) | 50.00% | ' |
Haseko HomeLoans, LLC | ' | ' |
Consolidation | ' | ' |
Ownership interest (as a percent) | 50.00% | ' |
Island Pacific HomeLoans, LLC | ' | ' |
Consolidation | ' | ' |
Ownership interest (as a percent) | 50.00% | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Consumer loans | Real estate, Mortgage - Residential | ||
Allowance for Loan and Lease Losses | ' | ' | ' | ' |
Charged off or written down period | ' | ' | '90 days | '90 days |
Reserve for unfunded loan commitments | $2.10 | $5.60 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended |
Dec. 31, 2013 | |
Premises and improvements | Minimum | ' |
Premises and Equipment | ' |
Useful life | '5 years |
Premises and improvements | Maximum | ' |
Premises and Equipment | ' |
Useful life | '39 years |
Equipment | Minimum | ' |
Premises and Equipment | ' |
Useful life | '1 year |
Equipment | Maximum | ' |
Premises and Equipment | ' |
Useful life | '7 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2013 |
Customer relationships and non-compete agreements | Core Deposit Premium | ||
Other Intangible Assets | ' | ' | ' |
Amortization Period | ' | ' | '14 years |
Impairment charges | $917 | $900 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $) | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
CPB Real Estate, Inc. | Citibank Properties, Inc. | ||
Non-controlling interest | Non-controlling interest | ||
Non-Controlling Interest | ' | ' | ' |
Repurchased amount of preferred stock | ' | $7,600,000 | $2,100,000 |
Premium paid on repurchases of preferred stock | $1,895,000 | $1,800,000 | $200,000 |
RESERVE_REQUIREMENTS_Details
RESERVE REQUIREMENTS (Details) (Central Pacific Bank, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Central Pacific Bank | ' | ' |
RESERVE REQUIREMENTS | ' | ' |
Amount held as a reserve | $48.50 | $57.40 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Held to Maturity | ' | ' |
Amortized cost | $252,047 | $161,848 |
Estimated fair value | 238,705 | 162,528 |
Available for Sale | ' | ' |
Amortized cost | 1,433,296 | 1,514,005 |
Gross unrealized gains | 9,469 | 25,520 |
Gross unrealized losses | -34,766 | -2,780 |
Total | 1,407,999 | 1,536,745 |
U.S. Government sponsored entities debt securities | ' | ' |
Available for Sale | ' | ' |
Amortized cost | ' | 278,198 |
Gross unrealized gains | ' | 2,741 |
Total | ' | 280,939 |
States and political subdivisions debt securities | ' | ' |
Available for Sale | ' | ' |
Amortized cost | 191,158 | 184,274 |
Gross unrealized gains | 305 | 2,831 |
Gross unrealized losses | -12,106 | -1,194 |
Total | 179,357 | 185,911 |
Corporations debt securities | ' | ' |
Available for Sale | ' | ' |
Amortized cost | 157,337 | 125,649 |
Gross unrealized gains | 1,878 | 2,360 |
Gross unrealized losses | -1,120 | -63 |
Total | 158,095 | 127,946 |
U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Held to Maturity | ' | ' |
Amortized cost | 252,047 | 161,848 |
Gross unrealized gains | ' | 695 |
Gross unrealized losses | -13,342 | -15 |
Estimated fair value | 238,705 | 162,528 |
Available for Sale | ' | ' |
Amortized cost | 936,144 | 925,018 |
Gross unrealized gains | 7,085 | 17,548 |
Gross unrealized losses | -15,603 | -1,523 |
Total | 927,626 | 941,043 |
Non-agency collateralized mortgage obligations mortgage-backed securities | ' | ' |
Available for Sale | ' | ' |
Amortized cost | 147,902 | ' |
Gross unrealized gains | 81 | ' |
Gross unrealized losses | -5,937 | ' |
Total | 142,046 | ' |
Other | ' | ' |
Available for Sale | ' | ' |
Amortized cost | 755 | 866 |
Gross unrealized gains | 120 | 40 |
Total | $875 | $906 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Held to Maturity, Amortized Cost | ' | ' | ' | ' | ' |
Mortgage-backed securities | $252,047,000 | ' | $252,047,000 | ' | ' |
Held to Maturity, Estimated Fair Value | ' | ' | ' | ' | ' |
Mortgage-backed securities | 238,705,000 | ' | 238,705,000 | ' | ' |
Available for Sale, Amortized Cost | ' | ' | ' | ' | ' |
Due after one year through five years | 87,349,000 | ' | 87,349,000 | ' | ' |
Due after five years through ten years | 134,337,000 | ' | 134,337,000 | ' | ' |
Due after ten years | 126,809,000 | ' | 126,809,000 | ' | ' |
Mortgage-backed securities | 1,084,046,000 | ' | 1,084,046,000 | ' | ' |
Other | 755,000 | ' | 755,000 | ' | ' |
Total | 1,433,296,000 | ' | 1,433,296,000 | ' | ' |
Available for Sale, Estimated Fair Value | ' | ' | ' | ' | ' |
Due after one year through five years | 88,819,000 | ' | 88,819,000 | ' | ' |
Due after five years through ten years | 131,223,000 | ' | 131,223,000 | ' | ' |
Due after ten years | 117,410,000 | ' | 117,410,000 | ' | ' |
Mortgage-backed securities | 1,069,672,000 | ' | 1,069,672,000 | ' | ' |
Other | 875,000 | ' | 875,000 | ' | ' |
Total | 1,407,999,000 | ' | 1,407,999,000 | 1,536,745,000 | ' |
Available for sale | ' | ' | ' | ' | ' |
Gross proceeds from sale of available for sale investment securities | 271,500,000 | 124,700,000 | 271,931,000 | 130,076,000 | 137,980,000 |
Gross realized gains on the sales of the available for sale investment securities | ' | 700,000 | 3,900,000 | 1,700,000 | 1,400,000 |
Gross realized losses on the sales of the available for sale investment securities | ' | ' | 3,400,000 | 900,000 | 100,000 |
Average net yield of available for sale mortgage backed securities sold (as a percent) | 1.87% | 0.60% | ' | ' | ' |
Weighted average life of available for sale mortgage backed securities sold | '2 years 10 months 24 days | '1 year 3 months 18 days | ' | ' | ' |
Investment in available-for-sale securities | 242,500,000 | ' | ' | ' | ' |
Net realized gains on the sales of the available for sale investment securities | 500,000 | ' | ' | ' | ' |
Investment in held to maturity investments | ' | 133,200,000 | ' | ' | ' |
Average yield of held to maturity investments (as a percent) | ' | 1.88% | ' | ' | ' |
Weighted average life of held to maturity | ' | '5 years 3 months 18 days | ' | ' | ' |
Investment securities pledged to party with no right to sell or repledge the collateral | $914,100,000 | ' | $914,100,000 | $905,500,000 | ' |
Non-agency commercial mortgage-backed securities and corporate bond securities | ' | ' | ' | ' | ' |
Available for sale | ' | ' | ' | ' | ' |
Average net yield of available for sale mortgage backed securities sold (as a percent) | 3.21% | ' | ' | ' | ' |
Weighted average life of available for sale mortgage backed securities sold | '7 years 4 months 24 days | ' | ' | ' | ' |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | investment | investment |
INVESTMENT SECURITIES | ' | ' |
Number of investment securities in an unrealized loss position | 321 | 118 |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | $1,252,120 | $303,314 |
Less than 12 months, Unrealized Losses | -44,428 | -2,795 |
12 months or longer, Fair Value | 37,595 | ' |
12 months or longer, Unrealized Losses | -3,680 | ' |
Total, Fair Value | 1,289,715 | 303,314 |
Total, Unrealized Losses | -48,108 | -2,795 |
States and political subdivisions debt securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 137,176 | 73,128 |
Less than 12 months, Unrealized Losses | -8,985 | -1,194 |
12 months or longer, Fair Value | 32,747 | ' |
12 months or longer, Unrealized Losses | -3,121 | ' |
Total, Fair Value | 169,923 | 73,128 |
Total, Unrealized Losses | -12,106 | -1,194 |
Corporations debt securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 75,368 | 23,205 |
Less than 12 months, Unrealized Losses | -1,120 | -63 |
Total, Fair Value | 75,368 | 23,205 |
Total, Unrealized Losses | -1,120 | -63 |
U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 909,585 | 206,981 |
Less than 12 months, Unrealized Losses | -28,386 | -1,538 |
12 months or longer, Fair Value | 4,848 | ' |
12 months or longer, Unrealized Losses | -559 | ' |
Total, Fair Value | 914,433 | 206,981 |
Total, Unrealized Losses | -28,945 | -1,538 |
Non-agency collateralized mortgage obligations mortgage-backed securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 129,991 | ' |
Less than 12 months, Unrealized Losses | -5,937 | ' |
Total, Fair Value | 129,991 | ' |
Total, Unrealized Losses | ($5,937) | ' |
LOANS_AND_LEASES_Details
LOANS AND LEASES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
loan | loan | ||
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | $2,631,158,000 | $2,205,188,000 | ' |
Unearned income | -557,000 | -1,244,000 | ' |
Total loans and leases | 2,630,601,000 | 2,203,944,000 | ' |
Number of collateral portfolio loans transferred to other real estate | 12 | 20 | ' |
Carrying value of collateral portfolio loans transferred to other real estate | 4,358,000 | 4,846,000 | 47,064,000 |
Number of loans purchased or sold | ' | 0 | ' |
Number of loans transferred to held-for-sale category | ' | 3 | ' |
Number of non-performing loans transferred to held-for-sale category | ' | 2 | ' |
Carrying value of non-performing loans transferred to held-for-sale category | ' | 1,487,000 | 13,639,000 |
Activity of loans made to certain directors, executive officers and their affiliates | ' | ' | ' |
Balance, beginning of year | 1,501,000 | 4,579,000 | ' |
Additions | 17,487,000 | 2,348,000 | ' |
Repayments | -6,046,000 | -5,426,000 | ' |
Balance, end of year | 12,942,000 | 1,501,000 | 4,579,000 |
Auto loan portfolio | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Carrying value of loan purchased | 67,700,000 | ' | ' |
Premium value of loan purchased | 2,800,000 | ' | ' |
Outstanding value of loan purchased | 64,900,000 | ' | ' |
Weighted average remaining term | '72 months | ' | ' |
Student loan portfolio | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Carrying value of loan purchased | 17,400,000 | ' | ' |
Weighted average remaining term | '122 months | ' | ' |
Commercial, financial and agricultural | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | 398,365,000 | 246,278,000 | ' |
Unearned income | 351,000 | -60,000 | ' |
Total loans and leases | 398,716,000 | 246,218,000 | ' |
Real estate, Construction | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | 75,927,000 | 96,240,000 | ' |
Unearned income | -311,000 | -46,000 | ' |
Total loans and leases | 75,616,000 | 96,194,000 | ' |
Real estate, Mortgage - residential | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | 1,237,841,000 | 1,035,273,000 | ' |
Unearned income | 1,418,000 | 124,000 | ' |
Total loans and leases | 1,239,259,000 | 1,035,397,000 | ' |
Real estate, Mortgage - commercial | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | 601,114,000 | 673,506,000 | ' |
Unearned income | -1,033,000 | -1,258,000 | ' |
Total loans and leases | 600,081,000 | 672,248,000 | ' |
Consumer | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | 311,670,000 | 143,387,000 | ' |
Unearned income | -982,000 | -4,000 | ' |
Total loans and leases | 310,688,000 | 143,383,000 | ' |
Leases | ' | ' | ' |
LOANS AND LEASES | ' | ' | ' |
Loans and leases, gross | 6,241,000 | 10,504,000 | ' |
Total loans and leases | $6,241,000 | $10,504,000 | ' |
LOANS_AND_LEASES_Details_2
LOANS AND LEASES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Allowance for loan and lease losses : | ' | ' | ' | ' |
Total ending balance | $83,820 | $96,413 | $122,093 | $192,854 |
Loans and leases : | ' | ' | ' | ' |
Individually evaluated for impairment | 65,054 | 111,092 | ' | ' |
Collectively evaluated for impairment | 2,566,104 | 2,094,096 | ' | ' |
Loans and leases | 2,631,158 | 2,205,188 | ' | ' |
Unearned income | -557 | -1,244 | ' | ' |
Total loans and leases | 2,630,601 | 2,203,944 | ' | ' |
Allocated | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | 349 | 3,011 | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 77,471 | 87,402 | ' | ' |
Total ending balance | 77,820 | 90,413 | ' | ' |
Commercial, Financial & Agricultural | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | 349 | 882 | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 12,847 | 4,105 | ' | ' |
Total ending balance | 13,196 | 4,987 | 6,110 | 13,426 |
Loans and leases : | ' | ' | ' | ' |
Individually evaluated for impairment | 3,939 | 3,957 | ' | ' |
Collectively evaluated for impairment | 394,426 | 242,321 | ' | ' |
Loans and leases | 398,365 | 246,278 | ' | ' |
Unearned income | 351 | -60 | ' | ' |
Total loans and leases | 398,716 | 246,218 | ' | ' |
Real estate, Construction | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | ' | 1,582 | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 2,774 | 2,928 | ' | ' |
Total ending balance | 2,774 | 4,510 | 28,630 | 76,556 |
Loans and leases : | ' | ' | ' | ' |
Individually evaluated for impairment | 8,065 | 48,264 | ' | ' |
Collectively evaluated for impairment | 67,862 | 47,976 | ' | ' |
Loans and leases | 75,927 | 96,240 | ' | ' |
Unearned income | -311 | -46 | ' | ' |
Total loans and leases | 75,616 | 96,194 | ' | ' |
Real estate, Mortgage - Residential | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | ' | 272 | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 28,441 | 29,638 | ' | ' |
Total ending balance | 28,441 | 29,910 | 32,736 | 31,830 |
Loans and leases : | ' | ' | ' | ' |
Individually evaluated for impairment | 36,779 | 42,865 | ' | ' |
Collectively evaluated for impairment | 1,201,062 | 992,408 | ' | ' |
Loans and leases | 1,237,841 | 1,035,273 | ' | ' |
Unearned income | 1,418 | 124 | ' | ' |
Total loans and leases | 1,239,259 | 1,035,397 | ' | ' |
Real estate, Mortgage - Commercial | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | ' | 270 | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 26,778 | 48,230 | ' | ' |
Total ending balance | 26,778 | 48,500 | 47,729 | 64,308 |
Loans and leases : | ' | ' | ' | ' |
Individually evaluated for impairment | 16,271 | 15,911 | ' | ' |
Collectively evaluated for impairment | 584,843 | 657,595 | ' | ' |
Loans and leases | 601,114 | 673,506 | ' | ' |
Unearned income | -1,033 | -1,258 | ' | ' |
Total loans and leases | 600,081 | 672,248 | ' | ' |
Consumer | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 6,576 | 2,421 | ' | ' |
Total ending balance | 6,576 | 2,421 | 2,335 | 3,155 |
Loans and leases : | ' | ' | ' | ' |
Collectively evaluated for impairment | 311,670 | 143,387 | ' | ' |
Loans and leases | 311,670 | 143,387 | ' | ' |
Unearned income | -982 | -4 | ' | ' |
Total loans and leases | 310,688 | 143,383 | ' | ' |
Leases | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | ' | 5 | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 55 | 80 | ' | ' |
Total ending balance | 55 | 85 | 553 | 1,579 |
Loans and leases : | ' | ' | ' | ' |
Individually evaluated for impairment | ' | 95 | ' | ' |
Collectively evaluated for impairment | 6,241 | 10,409 | ' | ' |
Loans and leases | 6,241 | 10,504 | ' | ' |
Total loans and leases | 6,241 | 10,504 | ' | ' |
Unallocated | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' |
Total ending balance | $6,000 | $6,000 | $4,000 | $2,000 |
LOANS_AND_LEASES_Details_3
LOANS AND LEASES (Details 3) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Unpaid Principal Balance | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | $78,990 | $114,557 | ' | ' |
Impaired loans with an allowance recorded | 4,367 | 24,454 | ' | ' |
Total | 83,357 | 139,011 | ' | ' |
Recorded Investment | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 62,155 | 92,295 | ' | ' |
Impaired loans with an allowance recorded | 2,899 | 18,797 | ' | ' |
Total | 65,054 | 111,092 | ' | ' |
Allowance Allocated | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 349 | 3,011 | 772 | 19,525 |
Average recorded investment on impaired loans | ' | ' | ' | ' |
Average Recorded Investment | 88,201 | 126,473 | 193,539 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' |
Interest Income Recognized | 2,885 | 1,624 | 1,857 | ' |
Commercial, financial & agricultural | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 1,069 | 1,225 | ' | ' |
Impaired loans with an allowance recorded | 4,367 | 4,807 | ' | ' |
Recorded Investment | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 1,040 | 526 | ' | ' |
Impaired loans with an allowance recorded | 2,899 | 3,431 | ' | ' |
Allowance Allocated | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 349 | 882 | ' | ' |
Average recorded investment on impaired loans | ' | ' | ' | ' |
Average Recorded Investment | 4,138 | 3,486 | 549 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' |
Interest Income Recognized | 24 | 39 | ' | ' |
Real estate, Construction | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 14,451 | 52,352 | ' | ' |
Impaired loans with an allowance recorded | ' | 13,678 | ' | ' |
Recorded Investment | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 8,065 | 36,664 | ' | ' |
Impaired loans with an allowance recorded | ' | 11,600 | ' | ' |
Allowance Allocated | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | 1,582 | ' | ' |
Average recorded investment on impaired loans | ' | ' | ' | ' |
Average Recorded Investment | 24,545 | 56,762 | 115,612 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' |
Interest Income Recognized | 1,442 | 771 | 772 | ' |
Real estate, Mortgage - residential | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 41,117 | 47,364 | ' | ' |
Impaired loans with an allowance recorded | ' | 1,935 | ' | ' |
Recorded Investment | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 36,779 | 41,894 | ' | ' |
Impaired loans with an allowance recorded | ' | 971 | ' | ' |
Allowance Allocated | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | 272 | ' | ' |
Average recorded investment on impaired loans | ' | ' | ' | ' |
Average Recorded Investment | 38,378 | 47,240 | 58,262 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' |
Interest Income Recognized | 586 | 308 | 616 | ' |
Real estate, Mortgage - commercial | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 22,353 | 13,616 | ' | ' |
Impaired loans with an allowance recorded | ' | 3,939 | ' | ' |
Recorded Investment | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 16,271 | 13,211 | ' | ' |
Impaired loans with an allowance recorded | ' | 2,700 | ' | ' |
Allowance Allocated | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | 270 | ' | ' |
Average recorded investment on impaired loans | ' | ' | ' | ' |
Average Recorded Investment | 21,107 | 18,852 | 19,116 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' |
Interest Income Recognized | 833 | 506 | 469 | ' |
Leases | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | 95 | ' | ' |
Recorded Investment | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | 95 | ' | ' |
Allowance Allocated | ' | ' | ' | ' |
Impaired loans with an allowance recorded | ' | 5 | ' | ' |
Average recorded investment on impaired loans | ' | ' | ' | ' |
Average Recorded Investment | $33 | $133 | ' | ' |
LOANS_AND_LEASES_Details_4
LOANS AND LEASES (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
30 - 59 Days Past Due | $5,069,000 | $9,045,000 | ' |
60 - 89 Days Past Due | 2,097,000 | 898,000 | ' |
Accruing Loans Greater than 90 Days Past Due | 15,000 | 503,000 | ' |
Nonaccrual Loans | 41,588,000 | 79,332,000 | ' |
Total Past Due | 48,769,000 | 89,778,000 | ' |
Loans and Leases Not Past Due | 2,581,832,000 | 2,114,166,000 | ' |
Total loans and leases | 2,630,601,000 | 2,203,944,000 | ' |
Interest income recognized on nonaccrual loans, including loans held for sale | 400,000 | 700,000 | 800,000 |
Additional interest income that would have been recognized, had nonaccrual loans been accruing interest throughout | 4,900,000 | 10,100,000 | 14,200,000 |
Interest income collected and recognized on charged-off loans | 2,500,000 | 800,000 | 700,000 |
Commercial, financial & agricultural | ' | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
30 - 59 Days Past Due | 50,000 | 123,000 | ' |
60 - 89 Days Past Due | ' | 139,000 | ' |
Nonaccrual Loans | 3,533,000 | 3,510,000 | ' |
Total Past Due | 3,583,000 | 3,772,000 | ' |
Loans and Leases Not Past Due | 395,133,000 | 242,446,000 | ' |
Total loans and leases | 398,716,000 | 246,218,000 | ' |
Real estate, Construction | ' | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
30 - 59 Days Past Due | ' | 124,000 | ' |
60 - 89 Days Past Due | 120,000 | ' | ' |
Nonaccrual Loans | 4,015,000 | 38,742,000 | ' |
Total Past Due | 4,135,000 | 38,866,000 | ' |
Loans and Leases Not Past Due | 71,481,000 | 57,328,000 | ' |
Total loans and leases | 75,616,000 | 96,194,000 | ' |
Real estate, Mortgage - residential | ' | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
30 - 59 Days Past Due | 3,898,000 | 8,330,000 | ' |
60 - 89 Days Past Due | 1,885,000 | 590,000 | ' |
Accruing Loans Greater than 90 Days Past Due | ' | 387,000 | ' |
Nonaccrual Loans | 20,271,000 | 27,499,000 | ' |
Total Past Due | 26,054,000 | 36,806,000 | ' |
Loans and Leases Not Past Due | 1,213,205,000 | 998,591,000 | ' |
Total loans and leases | 1,239,259,000 | 1,035,397,000 | ' |
Real estate, Mortgage - commercial | ' | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
30 - 59 Days Past Due | 544,000 | 219,000 | ' |
Nonaccrual Loans | 13,769,000 | 9,487,000 | ' |
Total Past Due | 14,313,000 | 9,706,000 | ' |
Loans and Leases Not Past Due | 585,768,000 | 662,542,000 | ' |
Total loans and leases | 600,081,000 | 672,248,000 | ' |
Consumer | ' | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
30 - 59 Days Past Due | 577,000 | 249,000 | ' |
60 - 89 Days Past Due | 92,000 | 169,000 | ' |
Accruing Loans Greater than 90 Days Past Due | ' | 116,000 | ' |
Total Past Due | 669,000 | 534,000 | ' |
Loans and Leases Not Past Due | 310,019,000 | 142,849,000 | ' |
Total loans and leases | 310,688,000 | 143,383,000 | ' |
Leases | ' | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' | ' |
Accruing Loans Greater than 90 Days Past Due | 15,000 | ' | ' |
Nonaccrual Loans | ' | 94,000 | ' |
Total Past Due | 15,000 | 94,000 | ' |
Loans and Leases Not Past Due | 6,226,000 | 10,410,000 | ' |
Total loans and leases | $6,241,000 | $10,504,000 | ' |
LOANS_AND_LEASES_Details_5
LOANS AND LEASES (Details 5) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
contract | contract | |
Information related to loans modified in a TDR | ' | ' |
Loans which were more than 90 days delinquent | $0 | $0 |
Amount of TDRs still accruing interest | 23,300,000 | 31,800,000 |
Commitments to lend additional funds | 0 | ' |
Holding period limit for accruing interest on TDRs | '90 days | ' |
Number of Contracts | 10 | 28 |
Recorded Investment | 12,213,000 | 24,473,000 |
Increase in the allowance | ' | 427,000 |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' |
Number of Contracts | 1 | 13 |
Recorded Investment | 517,000 | 12,732,000 |
Construction and development loans | Hawaii | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of TDRs included in nonperforming assets | 3 | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | 1,300,000 | ' |
Commercial, financial & agricultural | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of Contracts | 1 | 4 |
Recorded Investment | 517,000 | 447,000 |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' |
Number of Contracts | 1 | ' |
Recorded Investment | 517,000 | ' |
Real estate: construction | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of Contracts | 1 | 8 |
Recorded Investment | 178,000 | 11,120,000 |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' |
Number of Contracts | ' | 7 |
Recorded Investment | ' | 5,949,000 |
Commercial loans | Hawaii | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | 500,000 | ' |
Real estate, Mortgage - residential | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of Contracts | 7 | 10 |
Recorded Investment | 2,566,000 | 3,782,000 |
Increase in the allowance | ' | 427,000 |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' |
Number of Contracts | ' | 4 |
Recorded Investment | ' | 893,000 |
Real estate, Mortgage - residential | Hawaii | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of TDRs included in nonperforming assets | 42 | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | 12,500,000 | ' |
Real estate, Mortgage - commercial | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of Contracts | 1 | 6 |
Recorded Investment | 8,952,000 | 9,124,000 |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' |
Number of Contracts | ' | 2 |
Recorded Investment | ' | 5,890,000 |
Real estate, Mortgage - commercial | Hawaii | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of TDRs included in nonperforming assets | 1 | ' |
Real estate, Mortgage - commercial | U.S Mainland | ' | ' |
Information related to loans modified in a TDR | ' | ' |
Number of TDRs included in nonperforming assets | 1 | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | $9,000,000 | ' |
LOANS_AND_LEASES_Details_6
LOANS AND LEASES (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | $2,631,158 | $2,205,188 |
Less: Unearned Income | 557 | 1,244 |
Total | 2,630,601 | 2,203,944 |
Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 398,365 | 246,278 |
Less: Unearned Income | -351 | 60 |
Total | 398,716 | 246,218 |
Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 75,927 | 96,240 |
Less: Unearned Income | 311 | 46 |
Total | 75,616 | 96,194 |
Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 1,237,841 | 1,035,273 |
Less: Unearned Income | -1,418 | -124 |
Total | 1,239,259 | 1,035,397 |
Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 601,114 | 673,506 |
Less: Unearned Income | 1,033 | 1,258 |
Total | 600,081 | 672,248 |
Consumer | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 311,670 | 143,387 |
Less: Unearned Income | 982 | 4 |
Total | 310,688 | 143,383 |
Leases | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 6,241 | 10,504 |
Total | 6,241 | 10,504 |
Pass | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 2,521,755 | 2,008,705 |
Pass | Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 371,285 | 232,062 |
Pass | Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 67,435 | 42,619 |
Pass | Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 1,213,636 | 1,003,268 |
Pass | Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 551,488 | 577,638 |
Pass | Consumer | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 311,670 | 143,258 |
Pass | Leases | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 6,241 | 9,860 |
Special Mention | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 47,039 | 82,741 |
Special Mention | Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 21,511 | 6,609 |
Special Mention | Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 4,477 | 9,635 |
Special Mention | Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 845 | 1,109 |
Special Mention | Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 20,206 | 65,114 |
Special Mention | Leases | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | ' | 274 |
Substandard | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 62,364 | 113,742 |
Substandard | Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 5,569 | 7,607 |
Substandard | Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 4,015 | 43,986 |
Substandard | Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 23,360 | 30,896 |
Substandard | Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 29,420 | 30,754 |
Substandard | Consumer | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | ' | 129 |
Substandard | Leases | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | ' | $370 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L2
ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | $96,413 | ' | ' | ' | $122,093 | $96,413 | $122,093 | $192,854 |
Provision (credit) for loan and lease losses | -1,333 | -3,189 | -227 | -6,561 | -2,283 | -4,982 | -6,630 | -4,990 | -11,310 | -18,885 | -40,690 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 85,103 | 103,208 | 152,164 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 12,616 | 17,429 | 41,543 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 11,333 | 10,634 | 11,472 |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | 1,283 | 6,795 | 30,071 |
Ending balance | 83,820 | ' | ' | ' | 96,413 | ' | ' | ' | 83,820 | 96,413 | 122,093 |
Commercial, financial and agricultural | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 4,987 | ' | ' | ' | 6,110 | 4,987 | 6,110 | 13,426 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | 9,634 | 1,042 | -6,720 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 14,621 | 7,152 | 6,706 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 2,812 | 3,779 | 2,401 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 1,387 | 1,614 | 1,805 |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | 1,425 | 2,165 | 596 |
Ending balance | 13,196 | ' | ' | ' | 4,987 | ' | ' | ' | 13,196 | 4,987 | 6,110 |
Real estate, Construction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 4,510 | ' | ' | ' | 28,630 | 4,510 | 28,630 | 76,556 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -4,974 | -22,307 | -23,073 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | -464 | 6,323 | 53,483 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 358 | 8,435 | 31,371 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 3,596 | 6,622 | 6,518 |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | -3,238 | 1,813 | 24,853 |
Ending balance | 2,774 | ' | ' | ' | 4,510 | ' | ' | ' | 2,774 | 4,510 | 28,630 |
Real estate, Mortgage - residential | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 29,910 | ' | ' | ' | 32,736 | 29,910 | 32,736 | 31,830 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -1,493 | -2,038 | 3,569 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 28,417 | 30,698 | 35,399 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 1,083 | 1,664 | 4,347 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 1,107 | 876 | 1,684 |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | -24 | 788 | 2,663 |
Ending balance | 28,441 | ' | ' | ' | 29,910 | ' | ' | ' | 28,441 | 29,910 | 32,736 |
Real estate, Mortgage - commercial | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 48,500 | ' | ' | ' | 47,729 | 48,500 | 47,729 | 64,308 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -19,194 | 2,316 | -15,664 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 29,306 | 50,045 | 48,644 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 6,768 | 2,033 | 1,298 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 4,240 | 488 | 383 |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | 2,528 | 1,545 | 915 |
Ending balance | 26,778 | ' | ' | ' | 48,500 | ' | ' | ' | 26,778 | 48,500 | 47,729 |
Consumer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 2,421 | ' | ' | ' | 2,335 | 2,421 | 2,335 | 3,155 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | 5,093 | 547 | 214 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 7,514 | 2,882 | 3,369 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | 1,595 | 1,490 | 2,116 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 657 | 1,029 | 1,082 |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | 938 | 461 | 1,034 |
Ending balance | 6,576 | ' | ' | ' | 2,421 | ' | ' | ' | 6,576 | 2,421 | 2,335 |
Leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 85 | ' | ' | ' | 553 | 85 | 553 | 1,579 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | -376 | -445 | -1,016 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | -291 | 108 | 563 |
Charge-offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28 | 10 |
Recoveries | ' | ' | ' | ' | ' | ' | ' | ' | 346 | 5 | ' |
Net charge-offs (recoveries) | ' | ' | ' | ' | ' | ' | ' | ' | -346 | 23 | 10 |
Ending balance | 55 | ' | ' | ' | 85 | ' | ' | ' | 55 | 85 | 553 |
Unallocated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | 6,000 | ' | ' | ' | 4,000 | 6,000 | 4,000 | 2,000 |
Provision (credit) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 2,000 |
Subtotal | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | 6,000 | 4,000 |
Ending balance | $6,000 | ' | ' | ' | $6,000 | ' | ' | ' | $6,000 | $6,000 | $4,000 |
ALLOWANCE_FOR_LOAN_AND_LEASE_L3
ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in the allowance for loan and lease losses for impaired loans | ' | ' | ' |
Balance, beginning of year | $3,011 | $772 | $19,525 |
Provision for loan and lease losses | ' | 2,520 | 333 |
Other changes | -2,662 | -281 | -19,086 |
Balance, end of year | $349 | $3,011 | $772 |
SECURITIZATIONS_Details
SECURITIZATIONS (Details) (Residential mortgage-backed securities, Quoted prices of similar instruments in active markets, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Residential mortgage-backed securities | Quoted prices of similar instruments in active markets | ' | ' |
SECURITIZATIONS | ' | ' |
Fair value | $3.80 | $6.30 |
Unrealized gains recorded in AOCI | $0.20 | $0.40 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Premises and Equipment | ' | ' |
Gross premises and equipment | $140,571 | $135,498 |
Accumulated depreciation and amortization | -91,532 | -86,739 |
Net premises and equipment | 49,039 | 48,759 |
Land | ' | ' |
Premises and Equipment | ' | ' |
Gross premises and equipment | 9,006 | 9,006 |
Office buildings and improvements | ' | ' |
Premises and Equipment | ' | ' |
Gross premises and equipment | 94,888 | 91,512 |
Furniture, fixtures and equipment | ' | ' |
Premises and Equipment | ' | ' |
Gross premises and equipment | $36,677 | $34,980 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating expenses to which depreciation and amortization were charged | ' | ' | ' |
Depreciation and amortization | $6,007 | $6,351 | $6,724 |
Net occupancy | ' | ' | ' |
Operating expenses to which depreciation and amortization were charged | ' | ' | ' |
Depreciation and amortization | 3,702 | 3,723 | 3,641 |
Equipment | ' | ' | ' |
Operating expenses to which depreciation and amortization were charged | ' | ' | ' |
Depreciation and amortization | $2,305 | $2,628 | $3,083 |
OTHER_INTANGIBLE_ASSETS_Detail
OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in other intangible assets | ' | ' | ' |
Balance, beginning of period | $37,499 | $41,986 | ' |
Additions | 2,702 | 5,692 | ' |
Amortization | -7,418 | -9,262 | ' |
Impairment charges | ' | -917 | ' |
Balance, end of period | 32,783 | 37,499 | 41,986 |
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | ' | ' | ' |
Gross Carrying Value | 99,083 | 98,081 | ' |
Accumulated Amortization | -66,300 | -60,582 | ' |
Net Carrying Value | 32,783 | 37,499 | 41,986 |
Estimated Amortization Expense | ' | ' | ' |
2014 | 5,126 | ' | ' |
2015 | 4,343 | ' | ' |
2016 | 3,773 | ' | ' |
2017 | 3,343 | ' | ' |
2018 | 2,304 | ' | ' |
Thereafter | 13,894 | ' | ' |
Net Carrying Value | 32,783 | 37,499 | 41,986 |
Other disclosures | ' | ' | ' |
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 9,986 | 17,095 | 8,050 |
Fair market value and key assumptions used in determining the fair market value | ' | ' | ' |
Fair market value, beginning of period | 2,700,000 | ' | ' |
Fair market value, end of period | 2,400,000 | 2,700,000 | ' |
Core Deposit Premium | ' | ' | ' |
Changes in other intangible assets | ' | ' | ' |
Balance, beginning of period | 15,378 | 18,053 | ' |
Amortization | -2,674 | -2,675 | ' |
Balance, end of period | 12,704 | 15,378 | ' |
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | ' | ' | ' |
Gross Carrying Value | 44,642 | 44,642 | ' |
Accumulated Amortization | -31,938 | -29,264 | ' |
Net Carrying Value | 12,704 | 15,378 | ' |
Estimated Amortization Expense | ' | ' | ' |
2014 | 2,674 | ' | ' |
2015 | 2,674 | ' | ' |
2016 | 2,674 | ' | ' |
2017 | 2,674 | ' | ' |
2018 | 2,008 | ' | ' |
Net Carrying Value | 12,704 | 15,378 | ' |
Mortgage Servicing Rights | ' | ' | ' |
Changes in other intangible assets | ' | ' | ' |
Balance, beginning of period | 22,121 | 22,933 | ' |
Additions | 2,702 | 5,692 | ' |
Amortization | -4,744 | -6,504 | ' |
Balance, end of period | 20,079 | 22,121 | 22,933 |
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | ' | ' | ' |
Gross Carrying Value | 54,441 | 51,739 | ' |
Accumulated Amortization | -34,362 | -29,618 | ' |
Net Carrying Value | 20,079 | 22,121 | 22,933 |
Estimated Amortization Expense | ' | ' | ' |
2014 | 2,452 | ' | ' |
2015 | 1,669 | ' | ' |
2016 | 1,099 | ' | ' |
2017 | 669 | ' | ' |
2018 | 296 | ' | ' |
Thereafter | 13,894 | ' | ' |
Net Carrying Value | 20,079 | 22,121 | 22,933 |
Other disclosures | ' | ' | ' |
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 2,700 | 5,700 | 4,400 |
Fair market value and key assumptions used in determining the fair market value | ' | ' | ' |
Fair market value, beginning of period | 22,356 | 23,149 | ' |
Fair market value, end of period | 21,399 | 22,356 | 23,149 |
Weighted average discount rate (as a percent) | 8.00% | 8.00% | ' |
Weighted average prepayment speed assumption (as a percent) | 13.60% | 14.00% | ' |
Customer Relationships | ' | ' | ' |
Changes in other intangible assets | ' | ' | ' |
Balance, beginning of period | ' | 910 | ' |
Amortization | ' | -58 | ' |
Impairment charges | ' | -852 | ' |
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | ' | ' | ' |
Gross Carrying Value | ' | 1,400 | ' |
Accumulated Amortization | ' | -1,400 | ' |
Non-compete Agreements | ' | ' | ' |
Changes in other intangible assets | ' | ' | ' |
Balance, beginning of period | ' | 90 | ' |
Amortization | ' | -25 | ' |
Impairment charges | ' | -65 | ' |
Gross carrying value, accumulated amortization and net carrying value related to intangible assets | ' | ' | ' |
Gross Carrying Value | ' | 300 | ' |
Accumulated Amortization | ' | ($300) | ' |
DERIVATIVES_Details
DERIVATIVES (Details) (Derivatives not designated as hedging instruments, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Interest rate lock commitments | ' | ' |
DERIVATIVES | ' | ' |
Mortgage loans hedged | $37.10 | $67.10 |
Forward sale commitments | ' | ' |
DERIVATIVES | ' | ' |
Mortgage loans hedged | $24.20 | $49.20 |
DERIVATIVES_Details_2
DERIVATIVES (Details 2) (Derivatives not designated as hedging instruments, Interest rate contracts, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives not designated as hedging instruments | Interest rate contracts | ' | ' |
Asset Derivatives | ' | ' |
Fair Value | $425 | $303 |
Liability Derivatives | ' | ' |
Fair Value | $146 | $551 |
DERIVATIVES_Details_3
DERIVATIVES (Details 3) (Interest rate contracts, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Designated derivatives | Derivatives in Cash Flow Hedging Relationship | ' | ' |
DERIVATIVES | ' | ' |
Amount of Gain (Loss) Reclassified from AOCI into Earnings (Effective Portion) | ($394) | $434 |
Derivatives not in Cash Flow Hedging Relationship | ' | ' |
DERIVATIVES | ' | ' |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $336 | ($350) |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
DEPOSITS. | ' | ' | ' |
Time deposits of $100,000 or more | $842,894,000 | $674,100,000 | ' |
Interest expense on certificates of deposits of $100,000 or more | 1,500,000 | 1,800,000 | 3,200,000 |
Maturities of time deposits of $100,000 or more | ' | ' | ' |
Three months or less | 399,818,000 | ' | ' |
Over three through six months | 268,780,000 | ' | ' |
Over six through twelve months | 113,260,000 | ' | ' |
2015 | 34,795,000 | ' | ' |
2016 | 12,323,000 | ' | ' |
2017 | 7,405,000 | ' | ' |
2018 | 4,403,000 | ' | ' |
Thereafter | 2,110,000 | ' | ' |
Total | 842,894,000 | 674,100,000 | ' |
Overdrawn deposit accounts reclassified as loans | $700,000 | $800,000 | ' |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
SHORT-TERM BORROWINGS | ' | ' | ' |
Interest expense on short-term borrowings | $6,000 | ' | $204,000 |
Amount outstanding at the end of the period | 8,015,000 | 0 | 34,000 |
Average amount outstanding during year | 1,988,000 | 11,000 | 35,809,000 |
Highest month-end balance during year | 28,000,000 | ' | 201,962,000 |
Weighted average interest rate on balances outstanding at the end of the period (as a percent) | 0.23% | 0.00% | 0.00% |
Weighted average interest rate during year (as a percent) | 0.32% | 0.70% | 0.57% |
Federal Reserve discount window line of credit | Central Pacific Bank | ' | ' | ' |
SHORT-TERM BORROWINGS | ' | ' | ' |
Additional unused borrowings available | 46,500,000 | 24,900,000 | ' |
Commercial real estate and commercial loans pledged as collateral | $79,700,000 | $41,700,000 | ' |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 31, 2003 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 07, 2013 | Oct. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2003 | Dec. 31, 2013 | Oct. 31, 2003 | Oct. 31, 2003 | Sep. 30, 2004 | Dec. 31, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
item | Trust I | Trust I | Trust I | Trust I | Trust I | Trust II | Trust III | Trust IV | Trust V | FHLB advances | FHLB advances | FHLB advances | Subordinated debentures | Subordinated debentures | Subordinated debentures | Subordinated debentures | Subordinated debentures | Subordinated debentures | Subordinated debentures | Subordinated debentures | |||||
Maximum | Trust I | Trust II | Trust III | Trust IV | Trust V | ||||||||||||||||||||
LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | $92,799,000 | $108,281,000 | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | $14,000 | $32,000 | ' | $92,785,000 | $108,249,000 | ' | $15,500,000 | $20,600,000 | $20,600,000 | $30,900,000 | $20,600,000 |
Weighted average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.22% | 8.22% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment securities pledged as collateral | ' | ' | 914,100,000 | 905,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate loans pledged as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional unused capacity available | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 934,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | 3,119,000 | 3,701,000 | 8,815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000 | 14,000 | 5,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities issued | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 15,000,000 | ' | 20,000,000 | 20,000,000 | 30,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'three-month LIBOR | ' | 'three-month LIBOR | 'three-month LIBOR | 'three-month LIBOR | 'three-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.25% | ' | 2.85% | 2.85% | 2.45% | 1.87% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common securities issued to the Company | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | 600,000 | 600,000 | 900,000 | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities auctioned off value | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities bid value accepted amount | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of gain recognized related to transaction of trust preferred securities | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for repurchase of remaining trust preferred securities | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of wholly-owned statutory trusts created | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption period of trust preferred securities, the subordinated debentures and the common securities, following the occurrence of certain events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' |
Number of consecutive quarterly periods for which payments of interest can be deferred without default or penalty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 months | ' | ' | ' | ' | ' |
Deferred accrued interest paid | ' | $13,000,000 | $19,260,000 | $5,622,000 | $18,138,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LONGTERM_DEBT_Details_2
LONG-TERM DEBT (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Future principal payments on long-term debt based on final maturity | ' | ' |
2014 | $14 | ' |
Thereafter | 92,785 | ' |
Total | $92,799 | $108,281 |
EQUITY_Details
EQUITY (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Dec. 16, 2013 | Sep. 16, 2013 | Feb. 18, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 29, 2014 | Jun. 06, 2013 | Dec. 31, 2013 | Feb. 18, 2011 | Feb. 17, 2011 | Dec. 31, 2013 | Feb. 18, 2011 | Dec. 31, 2013 | Jan. 31, 2008 | 6-May-11 | Feb. 17, 2011 | Apr. 04, 2012 | Jun. 22, 2011 | Feb. 18, 2011 | Feb. 28, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Feb. 18, 2011 | Nov. 23, 2010 | |
Subsequent event | TARP Warrant | TARP Warrant | TARP Warrant | TARP Warrant | TARP Warrant | TARP Warrant | Rights | Treasury | Treasury | Treasury | Treasury | Central Pacific Bank | Fixed Rate Cumulative Perpetual Preferred Stock | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Common stocks | Junior Participating Preferred Stock, Series C | ||||
Subsequent event | TARP Warrant | TARP Warrant | TARP Warrant | TARP Warrant | Treasury | Rights | Rights | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Treasury | Rights | ||||||||||||||
TARP Warrant | TARP Warrant | ||||||||||||||||||||||||||||
Maximum | Maximum | ||||||||||||||||||||||||||||
EQUITY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 135,000 | ' | ' | ' | ' | 2,770,117 | 2,850,000 | ' | ' | ' | ' | ' | ' |
Liquidation preference (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued in exchange for preferred stock and accrued and unpaid dividends (in shares) | ' | ' | 5,620,117 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,620,117 | ' | ' | ' | ' | ' |
Exercise price of warrant (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $255.40 | ' | ' | ' | ' | $10 | $10 | ' | ' | ' | ' | ' | ' | ' | $6 |
Number of shares that can be purchased upon exercise of warrants or rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,288 | 79,288 | ' |
Non-cash increase in net income available to common shareholders due to TARP Exchange | $1,895,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of the common stock issued | ' | ' | 56,201,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,200,000 | 56,200,000 | 56,200,000 | ' | ' | ' |
Exercise price of future issues below which an adjustment to current warrant or rights exercise price will be adjusted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial value attributed to the warrant | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional extension period of Tax Benefits Preservation Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used in estimating fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility (as a percent) | ' | ' | ' | ' | ' | ' | 67.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free rate (as a percent) | ' | ' | ' | ' | ' | ' | 3.59% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Yield (as a percent) | ' | ' | ' | ' | ' | ' | 1.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated life | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accepted bid amount of warrant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 752,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | 819,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in fair value recorded in noninterest income | 3,249,000 | 4,611,000 | 4,966,000 | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other noninterest expense | 17,927,000 | 20,307,000 | 43,890,000 | ' | ' | ' | ' | 67,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
For ownership change to occur, the minimum cumulative increase in the entity's ownership by "5-percent shareholders" over a rolling three-year period (as a percent) | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fraction of securities callable by each warrant or right | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.0001 |
Par value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory Retained Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $240,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividends declared (in dollars per share) | $0.16 | ' | ' | $0.08 | $0.08 | $0.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized under the 2008 Repurchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares remaining available for repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
SHARE-BASED COMPENSATION | ' | ' | ' |
Net share-based compensation effect | $3,842 | $4,581 | $2,617 |
Salaries and employee benefits | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' |
Net share-based compensation effect | 6,367 | 4,432 | 2,409 |
Director stock awards | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' |
Net share-based compensation effect | 45 | 90 | 153 |
Legal and professional services | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' |
Net share-based compensation effect | ' | 59 | 55 |
Income tax benefit | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' |
Net share-based compensation effect | ($2,570) | ' | ' |
SHAREBASED_COMPENSATION_Detail1
SHARE-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 1997 | 31-May-07 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2011 | Mar. 31, 2011 | Sep. 30, 2004 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
2013 Plan | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | Equity Incentive | |||
1997 Plan | 2004 Plan | 2004 Plan | 2004 Plan | 2004 Plan | 2004 Plan | 2004 Plan | 2004 Plan | 2013 Plan | Minimum | Maximum | |||||||
SHARE-BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '5 years |
Contractual terms | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized for grants | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | 4,944,831 | 1,402,589 | 1,500,000 | 2,200,000 | ' | ' |
Additional shares authorized for grants | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average assumptions used in estimating the fair value of the stock options granted to employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | ' | ' | 77.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free interest rate (as a percent) | ' | ' | ' | ' | 1.80% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected dividends (as a percent) | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life | ' | ' | ' | ' | '8 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value (in dollars per share) | ' | ' | ' | ' | $9.65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | ' | ' | 315,369,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | 0 | 0 | ' | ' | ' | ' | ' | ' | 2,185,454 | 1,604,198 | 2,539,341 | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | ' | ' | -5,186,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in shares) | ' | ' | ' | -7,024,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | -511,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | ' | ' | ' | 302,648,000 | 315,369,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in shares) | ' | ' | ' | 302,648,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | ' | ' | ' | 91,241,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | ' | ' | $62.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes during the period: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | ' | ' | $14.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expired (in dollars per share) | ' | ' | ' | $539.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | $508.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | ' | ' | $51.79 | $62.77 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | ' | ' | ' | $51.79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | ' | ' | ' | $138.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | ' | ' | '7 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | ' | ' | ' | '7 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | ' | ' | '6 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | ' | ' | ' | $1,598,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars) | ' | ' | ' | 1,598,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars) | ' | ' | ' | 384,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised | ' | ' | 22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total compensation cost not yet recognized (in dollars) | ' | ' | ' | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period for recognition of compensation cost not yet recognized | ' | ' | ' | '3 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of shares vested (in dollars) | ' | ' | ' | $700,000 | $14,000 | $17,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail2
SHARE-BASED COMPENSATION (Details 3) (Restricted Stock Awards and Units, USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Activity of nonvested shares | ' |
Nonvested at the beginning of the period (in shares) | 1,098,806 |
Changes during the period: | ' |
Granted (in shares) | 142,347 |
Forfeited (in shares) | -103,329 |
Vested (in shares) | -301,920 |
Nonvested at the end of the period (in shares) | 835,904 |
Vested and expected to vest at the end of the period (in shares) | 835,904 |
Weighted Average Grant Date Fair Value | ' |
Nonvested at the beginning of the period (in dollars per share) | $14.61 |
Changes during the period: | ' |
Granted (in dollars per share) | $15.56 |
Forfeited (in dollars per share) | $14.68 |
Vested (in dollars per share) | $14.65 |
Nonvested at the end of the period (in dollars per share) | $14.75 |
Vested and expected to vest at the end of the period (in dollars per share) | $14.75 |
Additional disclosures | ' |
Total compensation cost not yet recognized (in dollars) | $8.40 |
Weighted-average period for recognition of compensation cost not yet recognized | '2 years 6 months |
Minimum | ' |
SHARE-BASED COMPENSATION | ' |
Vesting period | '3 years |
Maximum | ' |
SHARE-BASED COMPENSATION | ' |
Vesting period | '5 years |
PENSION_PLANS_Details
PENSION PLANS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Retirement Plan | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Consecutive period of service considered for highest average annual salaries for calculation of benefits under the reactivated plan | '60 months | ' | ' |
Increase in unrecognized prior service cost due to reactivation of the plan | $5,900,000 | ' | ' |
Amortization period of increase in prior service cost | '13 years | ' | ' |
Change in benefit obligation | ' | ' | ' |
Benefit obligation at the beginning of the year | 36,139,000 | 34,091,000 | ' |
Interest cost | 1,370,000 | 1,585,000 | 1,668,000 |
Actuarial (gains) losses | -2,969,000 | 2,923,000 | ' |
Benefits paid | -2,357,000 | -2,460,000 | ' |
Benefit obligation at the end of the year | 32,183,000 | 36,139,000 | 34,091,000 |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at the beginning of the year | 23,780,000 | 22,559,000 | ' |
Actual return on plan assets | 4,712,000 | 2,235,000 | ' |
Employer contributions | 1,647,000 | 1,446,000 | ' |
Benefits paid | -2,357,000 | -2,460,000 | ' |
Fair value of plan assets at the end of the year | 27,782,000 | 23,780,000 | 22,559,000 |
Funded status at end of year | -4,401,000 | -12,359,000 | ' |
Amounts recognized in AOCI | ' | ' | ' |
Net actuarial losses | -10,895,000 | -19,205,000 | ' |
Benefit obligation actuarial assumptions | ' | ' | ' |
Weighted average discount rate (as a percent) | 4.70% | 4.00% | ' |
Components of net periodic benefit cost | ' | ' | ' |
Interest cost | 1,370,000 | 1,585,000 | 1,668,000 |
Expected return on plan assets | -1,762,000 | -1,791,000 | -1,821,000 |
Amortization of net actuarial (gains) losses | 2,390,000 | 2,385,000 | 2,263,000 |
Net periodic benefit cost | 1,998,000 | 2,179,000 | 2,110,000 |
Net periodic cost actuarial assumptions | ' | ' | ' |
Weighted average discount rate (as a percent) | 4.00% | 4.80% | 5.10% |
Expected long-term rate of return on plan assets (as a percent) | 7.50% | 8.00% | 8.00% |
Unrecognized net actuarial losses included in AOCI expected to be recognized in net periodic benefit cost in the next fiscal year | 1,200,000 | ' | ' |
SERP | ' | ' | ' |
Change in benefit obligation | ' | ' | ' |
Benefit obligation at the beginning of the year | 9,944,000 | 8,558,000 | ' |
Interest cost | 411,000 | 426,000 | 412,000 |
Actuarial (gains) losses | -1,033,000 | 1,175,000 | ' |
Benefits paid | -215,000 | -215,000 | ' |
Benefit obligation at the end of the year | 9,107,000 | 9,944,000 | 8,558,000 |
Change in plan assets | ' | ' | ' |
Employer contributions | 215,000 | 215,000 | ' |
Benefits paid | -215,000 | -215,000 | ' |
Funded status at end of year | -9,107,000 | -9,944,000 | ' |
Amounts recognized in AOCI | ' | ' | ' |
Net transition obligation | -164,000 | -181,000 | ' |
Prior service cost | -119,000 | -137,000 | ' |
Net actuarial losses | -379,000 | -1,482,000 | ' |
Total amounts recognized in AOCI | -662,000 | -1,800,000 | ' |
Benefit obligation actuarial assumptions | ' | ' | ' |
Weighted average discount rate (as a percent) | 5.00% | 4.20% | ' |
Components of net periodic benefit cost | ' | ' | ' |
Interest cost | 411,000 | 426,000 | 412,000 |
Amortization of net transition obligation | 17,000 | 17,000 | 17,000 |
Amortization of prior service cost | 18,000 | 18,000 | 18,000 |
Amortization of net actuarial (gains) losses | 71,000 | -4,000 | -17,000 |
Net periodic benefit cost | 517,000 | 457,000 | 430,000 |
Net periodic cost actuarial assumptions | ' | ' | ' |
Weighted average discount rate (as a percent) | 4.20% | 5.00% | 5.00% |
Unrecognized net actuarial losses included in AOCI expected to be recognized in net periodic benefit cost in the next fiscal year | $2,000 | ' | ' |
PENSION_PLANS_Details_2
PENSION PLANS (Details 2) (Defined Benefit Retirement Plan, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
PENSION PLANS | ' | ' |
Asset allocations by asset category (as a percent) | 100.00% | 100.00% |
Equity securities | ' | ' |
PENSION PLANS | ' | ' |
Asset allocations by asset category (as a percent) | 59.90% | 64.70% |
Equity securities included the entity's common stock | 76 | 59 |
Debt securities | ' | ' |
PENSION PLANS | ' | ' |
Asset allocations by asset category (as a percent) | 34.60% | 32.60% |
Other | ' | ' |
PENSION PLANS | ' | ' |
Asset allocations by asset category (as a percent) | 5.50% | 2.70% |
PENSION_PLANS_Details_3
PENSION PLANS (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Retirement Plan | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | $27,782,000 | $23,780,000 | $22,559,000 |
Expected contribution | ' | ' | ' |
Expected contribution to the defined benefit retirement plan | 1,800,000 | ' | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 2,427,000 | ' | ' |
2015 | 2,413,000 | ' | ' |
2016 | 2,432,000 | ' | ' |
2017 | 2,411,000 | ' | ' |
2018 | 2,401,000 | ' | ' |
2019-2023 | 11,393,000 | ' | ' |
Total | 23,477,000 | ' | ' |
Estimated amortization of components included in AOCI that will be recognized into net periodic cost for the next fiscal year | ' | ' | ' |
Amortization of net actuarial losses | 1,200,000 | ' | ' |
Defined Benefit Retirement Plan | Level 1 | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 20,635,000 | 17,038,000 | ' |
Defined Benefit Retirement Plan | Level 1 | Money market accounts | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 1,841,000 | 1,022,000 | ' |
Defined Benefit Retirement Plan | Level 1 | Mutual funds | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 9,795,000 | 9,524,000 | ' |
Defined Benefit Retirement Plan | Level 1 | Common stocks | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 8,744,000 | 6,213,000 | ' |
Defined Benefit Retirement Plan | Level 1 | Preferred Stock | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 255,000 | 279,000 | ' |
Defined Benefit Retirement Plan | Level 2 | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 7,147,000 | 6,742,000 | ' |
Defined Benefit Retirement Plan | Level 2 | Government obligations | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 3,450,000 | 3,317,000 | ' |
Defined Benefit Retirement Plan | Level 2 | Corporate bonds and debentures | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 3,697,000 | 3,425,000 | ' |
Defined Benefit Retirement Plan | Total | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 27,782,000 | 23,780,000 | ' |
Defined Benefit Retirement Plan | Total | Money market accounts | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 1,841,000 | 1,022,000 | ' |
Defined Benefit Retirement Plan | Total | Mutual funds | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 9,795,000 | 9,524,000 | ' |
Defined Benefit Retirement Plan | Total | Government obligations | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 3,450,000 | 3,317,000 | ' |
Defined Benefit Retirement Plan | Total | Common stocks | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 8,744,000 | 6,213,000 | ' |
Defined Benefit Retirement Plan | Total | Preferred Stock | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 255,000 | 279,000 | ' |
Defined Benefit Retirement Plan | Total | Corporate bonds and debentures | ' | ' | ' |
PENSION PLANS | ' | ' | ' |
Fair value | 3,697,000 | 3,425,000 | ' |
SERP | ' | ' | ' |
Expected contribution | ' | ' | ' |
Expected contribution to the defined benefit retirement plan | 200,000 | ' | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 215,000 | ' | ' |
2015 | 211,000 | ' | ' |
2016 | 225,000 | ' | ' |
2017 | 415,000 | ' | ' |
2018 | 411,000 | ' | ' |
2019-2023 | 2,425,000 | ' | ' |
Total | 3,902,000 | ' | ' |
Estimated amortization of components included in AOCI that will be recognized into net periodic cost for the next fiscal year | ' | ' | ' |
Amortization of net transition obligation | 17,000 | ' | ' |
Amortization of prior service cost | 18,000 | ' | ' |
Amortization of net actuarial losses | $2,000 | ' | ' |
401K_RETIREMENT_SAVINGS_PLAN_D
401(K) RETIREMENT SAVINGS PLAN (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
401(K) RETIREMENT SAVINGS PLAN | ' | ' | ' |
Employee's elective deferrals (as a percent) | 100.00% | ' | ' |
Matching contributions by employer (as a percent) | 4.00% | ' | ' |
Employer matching contributions to the Retirement Savings Plan | $1.70 | $1.60 | $1.40 |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING LEASES | ' | ' | ' |
Net rent expense | $9,881 | $10,132 | $10,374 |
Net occupancy | ' | ' | ' |
OPERATING LEASES | ' | ' | ' |
Rent expense charged to operating expenses | 9,840 | 10,053 | 10,286 |
Less sublease income | -52 | -25 | -74 |
Net rent expense | 9,788 | 10,028 | 10,212 |
Equipment expense | ' | ' | ' |
OPERATING LEASES | ' | ' | ' |
Rent expense charged to operating expenses | $93 | $104 | $162 |
Minimum | ' | ' | ' |
OPERATING LEASES | ' | ' | ' |
Period for which option to extend the lease term is available | '5 years | ' | ' |
Maximum | ' | ' | ' |
OPERATING LEASES | ' | ' | ' |
Period for which option to extend the lease term is available | '15 years | ' | ' |
OPERATING_LEASES_Details_2
OPERATING LEASES (Details 2) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Rental Commitment | ' |
2014 | $7,847 |
2015 | 6,626 |
2016 | 5,901 |
2017 | 4,943 |
2018 | 3,621 |
Thereafter | 23,664 |
Total | $52,602 |
OPERATING_LEASES_Details_3
OPERATING LEASES (Details 3) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum rental income for those noncancellable operating leases that had initial lease terms in excess of one year | ' |
2014 | $3,045 |
2015 | 2,331 |
2016 | 1,340 |
2017 | 795 |
2018 | 225 |
Thereafter | 50 |
Total | $7,786 |
INCOME_AND_FRANCHISE_TAXES_Det
INCOME AND FRANCHISE TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
State | $109 | ' | ' |
Total | 109 | ' | ' |
Deferred | ' | ' | ' |
Federal | -81,613 | ' | ' |
State | -30,743 | ' | ' |
Total | -112,356 | ' | ' |
Total | ' | ' | ' |
Federal | -81,613 | ' | ' |
State | -30,634 | ' | ' |
Total | -112,247 | ' | ' |
Reconciliation between the income tax benefit and the expected tax benefit | ' | ' | ' |
U.S. Federal corporate tax rate (as a percent) | 35.00% | ' | ' |
Computed expected tax expense (benefit) | 20,940 | 16,598 | 12,802 |
Increase (decrease) in taxes resulting from: | ' | ' | ' |
Tax-exempt interest | -1,431 | -820 | -273 |
Other tax-exempt income | -810 | -976 | -1,441 |
Low-income housing and energy tax credits | -1,557 | -1,607 | -1,678 |
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance | 2,389 | 2,540 | 546 |
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense | -132,061 | -15,862 | -9,870 |
Other | 283 | 127 | -86 |
Total | ($112,247) | ' | ' |
INCOME_AND_FRANCHISE_TAXES_Det1
INCOME AND FRANCHISE TAXES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred tax assets | ' | ' | ' |
Allowance for loan and lease losses | ' | $28,926,000 | $33,418,000 |
Accrued expenses | ' | 2,950,000 | 2,744,000 |
Employee retirement benefits | ' | 8,762,000 | 15,773,000 |
Federal and state tax credit carryforwards | ' | 37,449,000 | 35,305,000 |
Investment write-downs and write-offs | ' | 3,051,000 | 3,051,000 |
Interest on nonaccrual loans | ' | 1,962,000 | 4,047,000 |
Federal and state net operating loss carryforwards | ' | 87,757,000 | 86,339,000 |
Other | ' | 15,486,000 | 26,289,000 |
Total deferred tax assets | ' | 186,343,000 | 206,966,000 |
Deferred tax liabilities | ' | ' | ' |
Intangible assets | ' | 13,117,000 | 14,962,000 |
FHLB stock dividends received | ' | 11,848,000 | 12,345,000 |
Net unrealized gain on derivatives recognized through AOCI | ' | ' | 1,786,000 |
Leases | ' | 2,755,000 | 3,599,000 |
Deferred gain on curtailed retirement plan | ' | 3,339,000 | 3,339,000 |
Liability on utilization of state tax credits | ' | 7,722,000 | 7,475,000 |
Other | ' | 3,614,000 | 15,961,000 |
Total deferred tax liabilities | ' | 42,395,000 | 59,467,000 |
Deferred tax valuation allowance | ' | 6,700,000 | 147,499,000 |
Net deferred tax assets | ' | 137,248,000 | ' |
Net change in the total valuation allowance | ' | 140,800,000 | 14,800,000 |
Change in valuation allowance recognized as income tax benefit | ' | 132,100,000 | 15,900,000 |
Change in valuation allowance recognized as expense (benefit) for AOCI | ' | 8,700,000 | -1,100,000 |
Net impact of reversing the valuation allowance recorded as provision for income tax benefit | 119,800,000 | ' | ' |
Federal | ' | ' | ' |
Income and franchise taxes | ' | ' | ' |
Income tax receivable, current | ' | 100,000 | 9,000 |
State | ' | ' | ' |
Income and franchise taxes | ' | ' | ' |
Income tax receivable, current | ' | $1,800,000 | $1,800,000 |
INCOME_AND_FRANCHISE_TAXES_Det2
INCOME AND FRANCHISE TAXES (Details 3) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Federal | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | $206.50 |
Hawaii and California state | Hawaii | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | 189.3 |
Hawaii and California state | California | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | $40.60 |
INCOME_AND_FRANCHISE_TAXES_Det3
INCOME AND FRANCHISE TAXES (Details 4) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Tax credit carryforwards | ' |
Unrecognized tax benefits that, if recognized would favorably affect the effective income tax rate | $0 |
State | ' |
Tax credit carryforwards | ' |
Tax credit carryforwards that do not expire | 23.8 |
Federal | ' |
Tax credit carryforwards | ' |
Tax credit carryforwards | 13.6 |
Tax credit carryforwards that expire | 11.1 |
Expiration period of tax credit carryforwards | '20 years |
Tax credit carryforwards that do not expire | $2.50 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net unrealized gains/losses on investment securities, Before Tax | ' | ' | ' |
Net unrealized gains/losses arising during the period | ($43,687) | ($2,653) | $22,190 |
Less: Reclassification adjustment for gains/losses realized in net income | -6,266 | 1,382 | -1,164 |
Net unrealized gains (losses) on investment securities | -49,953 | -1,271 | 21,026 |
Net unrealized gains/losses on derivatives, Before Tax | ' | ' | ' |
Reclassification adjustment for gains/losses realized in net income | 394 | -434 | -3,235 |
Net unrealized gains (losses) on derivatives | 394 | -434 | -3,235 |
Defined benefit plans, Before Tax | ' | ' | ' |
Net actuarial gains/losses arising during the period | 6,952 | -3,653 | -3,274 |
Amortization of net actuarial losses | 2,461 | 2,381 | 2,246 |
Amortization of net transition obligation | 17 | 17 | 18 |
Amortization of prior service cost | 18 | 17 | 18 |
Defined benefit plans, net | 9,448 | -1,238 | -992 |
Other comprehensive income (loss) | -40,111 | -2,943 | 16,799 |
Net unrealized gains/losses on investment securities, Tax Effect | ' | ' | ' |
Net unrealized gains/losses arising during the period | -15,577 | ' | ' |
Less: Reclassification adjustment for gains/losses realized in net income | -2,511 | ' | ' |
Net unrealized gains (losses) on investment securities | -18,088 | ' | ' |
Net unrealized gains/losses on derivatives, Tax Effect | ' | ' | ' |
Reclassification adjustment for gains/losses realized in net income | -10,599 | ' | ' |
Net unrealized gains (losses) on derivatives | -10,599 | ' | ' |
Defined benefit plans, Tax Effect | ' | ' | ' |
Net actuarial gains/losses arising during the period | 2,591 | ' | ' |
Amortization of net actuarial losses | 986 | 51 | 70 |
Amortization of net transition obligation | 7 | ' | ' |
Amortization of prior service cost | 7 | ' | ' |
Defined benefit plans, net | 3,591 | 51 | 70 |
Other comprehensive income (loss) | -25,096 | 51 | 70 |
Net unrealized gains/losses on investment securities, Net of Tax | ' | ' | ' |
Net unrealized gains/losses arising during the period | -28,110 | -2,653 | 22,190 |
Less: Reclassification adjustment for gains/losses realized in net income | -3,755 | 1,382 | -1,164 |
Net unrealized gains (losses) on investment securities | -31,865 | -1,271 | 21,026 |
Net unrealized gains/losses on derivatives, Net of Tax | ' | ' | ' |
Reclassification adjustment for gains/losses realized in net income | 10,993 | -434 | -3,235 |
Net unrealized gains (losses) on derivatives | 10,993 | -434 | -3,235 |
Defined benefit plans, Net of Tax | ' | ' | ' |
Net actuarial gains/losses arising during the period | 4,361 | -3,653 | -3,274 |
Amortization of net actuarial losses | 1,475 | 2,330 | 2,176 |
Amortization of net transition obligation | 10 | 17 | 18 |
Amortization of prior service cost | 11 | 17 | 18 |
Defined benefit plans, net | 5,857 | -1,289 | -1,062 |
Other comprehensive income (loss), net of tax | ($15,015) | ($2,994) | $16,729 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in each component of accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | ($830) | $2,164 | ($14,565) |
Other comprehensive income (loss) before reclassifications | -23,749 | -6,306 | 18,916 |
Amounts reclassified from AOCI | 8,734 | 3,312 | -2,187 |
Other comprehensive income (loss), net of tax | -15,015 | -2,994 | 16,729 |
Balance at the end of the period | -15,845 | -830 | 2,164 |
Investment Securities | ' | ' | ' |
Changes in each component of accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | 22,740 | 24,011 | 2,985 |
Other comprehensive income (loss) before reclassifications | -28,110 | -2,653 | 22,190 |
Amounts reclassified from AOCI | -3,755 | 1,382 | -1,164 |
Other comprehensive income (loss), net of tax | -31,865 | -1,271 | 21,026 |
Balance at the end of the period | -9,125 | 22,740 | 24,011 |
Derivatives | ' | ' | ' |
Changes in each component of accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | -10,993 | -10,559 | -7,324 |
Amounts reclassified from AOCI | 10,993 | -434 | -3,235 |
Other comprehensive income (loss), net of tax | 10,993 | -434 | -3,235 |
Balance at the end of the period | ' | -10,993 | -10,559 |
Defined Benefit Plans | ' | ' | ' |
Changes in each component of accumulated other comprehensive income (loss), net of tax | ' | ' | ' |
Balance at the beginning of the period | -12,577 | -11,288 | -10,226 |
Other comprehensive income (loss) before reclassifications | 4,361 | -3,653 | -3,274 |
Amounts reclassified from AOCI | 1,496 | 2,364 | 2,212 |
Other comprehensive income (loss), net of tax | 5,857 | -1,289 | -1,062 |
Balance at the end of the period | ($6,720) | ($12,577) | ($11,288) |
ACCUMULATED_OTHER_COMPREHENSIV4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment securities gain (loss) | $482 | ' | ' | ' | ' | $789 | ' | ' | $482 | $789 | $1,306 | |||
Interest income | 37,133 | 35,558 | 34,992 | 32,595 | 31,389 | 31,674 | 32,479 | 32,903 | 140,278 | 128,445 | 136,450 | |||
Net actuarial losses | ' | ' | ' | ' | ' | ' | ' | ' | -2,461 | -2,381 | -2,246 | |||
Net transition obligation | ' | ' | ' | ' | ' | ' | ' | ' | -17 | -17 | -18 | |||
Prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | -18 | -17 | -18 | |||
Tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 112,247 | ' | ' | |||
Net income (loss) | 10,295 | 10,204 | 14,267 | 137,309 | 12,410 | 10,721 | 10,812 | 13,478 | 172,075 | 47,421 | 36,571 | |||
Amount Reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -8,734 | -3,312 | 2,187 | |||
Sale of investment securities available for sale | Amount Reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Investment securities gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 6,266 | -1,382 | 1,164 | |||
Tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -2,511 | ' | ' | |||
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 3,755 | -1,382 | 1,164 | |||
Unrealized gains (losses) on derivatives | Amount Reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | -394 | 434 | 3,235 | |||
Tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | -10,599 | ' | ' | |||
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -10,993 | 434 | 3,235 | |||
Amortization of defined benefit plan items | Amount Reclassified from AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net actuarial losses | ' | ' | ' | ' | ' | ' | ' | ' | -2,461 | [1] | -2,381 | [1] | -2,246 | [1] |
Net transition obligation | ' | ' | ' | ' | ' | ' | ' | ' | -17 | [1] | -17 | [1] | -18 | [1] |
Prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | -18 | [1] | -17 | [1] | -18 | [1] |
Reclassification from Accumulated Other Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | -2,496 | -2,415 | -2,282 | |||
Tax (expense) benefit | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 51 | 70 | |||
Net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ($1,496) | ($2,364) | ($2,212) | |||
[1] | (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
EARNINGS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $10,295 | $10,204 | $14,267 | $137,309 | $12,410 | $10,721 | $10,812 | $13,478 | $172,075 | $47,421 | $36,571 |
Preferred stock dividends, accretion of discount and conversion of preferred stock to common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -83,897 |
Net income available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | $172,075 | $47,421 | $120,468 |
Weighted average shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 41,961,000 | 41,720,000 | 35,891,000 |
SHARE-BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dilutive effect of Treasury warrants (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 14,000 | 22,000 | 20,000 |
Weighted average shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 42,317,000 | 42,084,000 | 36,342,000 |
Basic earnings per share (in dollars per share) | $0.24 | $0.24 | $0.34 | $3.28 | $0.30 | $0.26 | $0.26 | $0.32 | $4.10 | $1.14 | $3.36 |
Diluted earnings per share (in dollars per share) | $0.24 | $0.24 | $0.34 | $3.25 | $0.29 | $0.26 | $0.26 | $0.32 | $4.07 | $1.13 | $3.31 |
Antidilutive securities excluded from the dilutive share calculation (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 24,526 | 316,188 | 40,166 |
Employee stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dilutive effect of share-based compensation arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 341,000 | 278,000 | 415,000 |
Deferred salary restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dilutive effect of share-based compensation arrangements | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 64,000 | 16,000 |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to extend credit | ' | ' |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | ' |
Financial instruments whose contract amounts represent credit risk: | $652,717 | $554,477 |
Standby letters of credit and financial guarantees written | ' | ' |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | ' |
Financial instruments whose contract amounts represent credit risk: | 1,023 | 13,813 |
Interest rate options | ' | ' |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | ' |
Financial instruments whose contract amounts exceed the amount of credit risk: | 37,093 | 67,072 |
Forward interest rate contracts | ' | ' |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | ' |
Financial instruments whose contract amounts exceed the amount of credit risk: | $24,244 | $49,222 |
FAIR_VALUE_OF_ASSETS_AND_LIABI2
FAIR VALUE OF ASSETS AND LIABILITIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets | ' | ' |
Cash and due from banks | $45,092 | $56,473 |
Interest-bearing deposits in other banks | 4,256 | 120,902 |
Loans held for sale | 12,370 | 38,283 |
Accrued interest receivable | 14,072 | 13,896 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 891,017 | 843,292 |
Time deposits | 1,109,521 | 978,631 |
Transfers of financial assets from Level 1 to Level 2 | 0 | ' |
Transfers of financial assets from Level 2 to Level 1 | 0 | ' |
Transfers of financial liabilities from Level 1 to Level 2 | 0 | ' |
Transfers of financial liabilities from Level 2 to Level 1 | 0 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Financial assets | ' | ' |
Cash and due from banks | 45,092 | 56,473 |
Interest-bearing deposits in other banks | 4,256 | 120,902 |
Investment securities | 875 | 906 |
Accrued interest receivable | 14,072 | 13,896 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 891,017 | 843,292 |
Interest-bearing demand and savings deposits | 1,935,635 | 1,858,849 |
Accrued interest payable (included in other liabilities) | 1,040 | 13,131 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial assets | ' | ' |
Investment securities | 1,635,311 | 1,685,541 |
Net loans and leases | 64,705 | 108,081 |
Deposits: | ' | ' |
Short-term debt | 8,015 | ' |
Long-term debt | 39,446 | 43,156 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial assets | ' | ' |
Investment securities | 10,518 | 12,826 |
Loans held for sale | 12,370 | 38,283 |
Net loans and leases | 2,365,577 | 1,975,433 |
Deposits: | ' | ' |
Time deposits | 1,111,319 | 981,059 |
Commitments to extend credit | Significant Other Observable Inputs (Level 2) | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 3,264 | 2,772 |
Standby letters of credit and financial guarantees written | Significant Other Observable Inputs (Level 2) | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 8 | 104 |
Interest rate options | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 37,093 | 67,072 |
Interest rate options | Significant Other Observable Inputs (Level 2) | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 70 | 106 |
Forward interest rate contracts | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 24,244 | 49,222 |
Forward interest rate contracts | Significant Other Observable Inputs (Level 2) | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 210 | -353 |
Carrying Amount | ' | ' |
Financial assets | ' | ' |
Cash and due from banks | 45,092 | 56,473 |
Interest-bearing deposits in other banks | 4,256 | 120,902 |
Investment securities | 1,660,046 | 1,698,593 |
Loans held for sale | 12,370 | 38,283 |
Net loans and leases | 2,546,781 | 2,107,531 |
Accrued interest receivable | 14,072 | 13,896 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 891,017 | 843,292 |
Interest-bearing demand and savings deposits | 1,935,635 | 1,858,849 |
Time deposits | 1,109,521 | 978,631 |
Short-term debt | 8,015 | ' |
Long-term debt | 92,799 | 108,281 |
Accrued interest payable (included in other liabilities) | 1,040 | 13,131 |
Carrying Amount | Commitments to extend credit | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 652,717 | 554,477 |
Carrying Amount | Standby letters of credit and financial guarantees written | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 1,023 | 13,813 |
Carrying Amount | Interest rate options | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 37,093 | 67,072 |
Carrying Amount | Forward interest rate contracts | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 24,244 | 49,222 |
Estimated Fair Value | ' | ' |
Financial assets | ' | ' |
Cash and due from banks | 45,092 | 56,473 |
Interest-bearing deposits in other banks | 4,256 | 120,902 |
Investment securities | 1,646,704 | 1,699,273 |
Loans held for sale | 12,370 | 38,283 |
Net loans and leases | 2,430,282 | 2,083,514 |
Accrued interest receivable | 14,072 | 13,896 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 891,017 | 843,292 |
Interest-bearing demand and savings deposits | 1,935,635 | 1,858,849 |
Time deposits | 1,111,319 | 981,059 |
Short-term debt | 8,015 | ' |
Long-term debt | 39,446 | 43,156 |
Accrued interest payable (included in other liabilities) | 1,040 | 13,131 |
Estimated Fair Value | Commitments to extend credit | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 3,264 | 2,772 |
Estimated Fair Value | Standby letters of credit and financial guarantees written | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 8 | 104 |
Estimated Fair Value | Interest rate options | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 70 | 106 |
Estimated Fair Value | Forward interest rate contracts | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | $210 | ($353) |
FAIR_VALUE_OF_ASSETS_AND_LIABI3
FAIR VALUE OF ASSETS AND LIABILITIES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | $1,407,999 | $1,536,745 |
U.S. Government sponsored entities debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | ' | 280,939 |
States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 179,357 | 185,911 |
Corporate bonds and debentures | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 158,095 | 127,946 |
U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 927,626 | 941,043 |
Other | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 875 | 906 |
Non-agency collateralized mortgage obligations | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 142,046 | ' |
Recurring basis | Fair Value | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 1,408,278 | 1,535,678 |
Recurring basis | Fair Value | Interest rate contracts | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Derivatives: | 279 | -248 |
Recurring basis | Fair Value | Amended TARP warrant | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Derivatives: | ' | -819 |
Recurring basis | Fair Value | U.S. Government sponsored entities debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | ' | 280,939 |
Recurring basis | Fair Value | States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 179,357 | 185,911 |
Recurring basis | Fair Value | Corporate bonds and debentures | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 158,095 | 127,946 |
Recurring basis | Fair Value | U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 927,626 | 941,043 |
Recurring basis | Fair Value | Other | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 875 | 906 |
Recurring basis | Fair Value | Non-agency collateralized mortgage obligations | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 142,046 | ' |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 875 | 906 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 875 | 906 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 1,396,885 | 1,521,946 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Derivatives: | 279 | -248 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Amended TARP warrant | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Derivatives: | ' | -819 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government sponsored entities debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | ' | 280,939 |
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 168,839 | 173,085 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate bonds and debentures | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 158,095 | 127,946 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 927,626 | 941,043 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Non-agency collateralized mortgage obligations | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 142,046 | ' |
Recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 10,518 | 12,826 |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | $10,518 | $12,826 |
FAIR_VALUE_OF_ASSETS_AND_LIABI4
FAIR VALUE OF ASSETS AND LIABILITIES (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Available for sale debt securities - States and political subdivisions | ' | ' |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' |
Aggregate fair value / Balance at the beginning of the period | $12,826 | $12,994 |
Principal payments received | -2,797 | -377 |
Purchases, sales, issuances and settlements, net | 1,146 | ' |
Unrealized net loss included in other comprehensive income | -657 | 209 |
Aggregate fair value / Balance at the end of the period | 10,518 | 12,826 |
Mortgage revenue bonds | ' | ' |
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ' |
Aggregate fair value / Balance at the end of the period | $10,500 | ' |
Additional disclosures | ' | ' |
Number of investment securities held | 4 | ' |
Mortgage revenue bonds | Weighted average | ' | ' |
Additional disclosures | ' | ' |
Discount rate (as a percent) | 4.63% | ' |
FAIR_VALUE_OF_ASSETS_AND_LIABI5
FAIR VALUE OF ASSETS AND LIABILITIES (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a nonrecurring basis | ' | ' |
Other real estate | $5,163 | $10,686 |
Nonrecurring basis | ' | ' |
Total Losses | ' | ' |
Impaired loans | 3,298 | 11,852 |
Other real estate | 362 | 3,529 |
Total Losses | 3,660 | 15,381 |
Nonrecurring basis | Fair Value | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans | 64,705 | 108,081 |
Other real estate | 5,163 | 10,686 |
Nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans | 64,705 | 108,081 |
Other real estate | $5,163 | $10,686 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||||||||||
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income (expense) | $35,496 | $33,771 | $33,173 | $30,669 | $29,390 | $29,560 | $30,259 | $30,502 | $133,109 | $119,711 | $117,821 |
Credit (provision) for loan and lease losses | 1,333 | 3,189 | 227 | 6,561 | 2,283 | 4,982 | 6,630 | 4,990 | 11,310 | 18,885 | 40,690 |
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 54,945 | 60,743 | 57,002 |
Other operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -139,536 | -151,918 | -178,942 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 112,247 | ' | ' |
Net income | 10,295 | 10,204 | 14,267 | 137,309 | 12,410 | 10,721 | 10,812 | 13,478 | 172,075 | 47,421 | 36,571 |
Investment securities | 1,660,046 | ' | ' | ' | 1,698,593 | ' | ' | ' | 1,660,046 | 1,698,593 | 1,493,925 |
Loans and leases (including loans held for sale) | 2,642,971 | ' | ' | ' | 2,242,227 | ' | ' | ' | 2,642,971 | 2,242,227 | 2,114,737 |
Other | 438,181 | ' | ' | ' | 429,548 | ' | ' | ' | 438,181 | 429,548 | 524,203 |
Total assets | 4,741,198 | ' | ' | ' | 4,370,368 | ' | ' | ' | 4,741,198 | 4,370,368 | 4,132,865 |
Banking Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 101,822 | 92,545 | 95,182 |
Credit (provision) for loan and lease losses | ' | ' | ' | ' | ' | ' | ' | ' | 11,310 | 18,885 | 40,690 |
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 49,294 | 55,838 | 48,686 |
Other operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -79,552 | -91,266 | -115,910 |
Administrative and overhead expense allocation | ' | ' | ' | ' | ' | ' | ' | ' | -55,052 | -57,640 | -54,408 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 117,088 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 159,671 | 51,316 | 59,804 |
Loans and leases (including loans held for sale) | 2,642,971 | ' | ' | ' | 2,242,227 | ' | ' | ' | 2,642,971 | 2,242,227 | 2,114,737 |
Other | 108,639 | ' | ' | ' | -7,267 | ' | ' | ' | 108,639 | -7,267 | 23,858 |
Total assets | 2,751,610 | ' | ' | ' | 2,234,960 | ' | ' | ' | 2,751,610 | 2,234,960 | 2,138,595 |
Treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 31,287 | 27,166 | 22,639 |
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 4,185 | 5,209 | 7,312 |
Other operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -3,938 | -1,868 | -7,163 |
Administrative and overhead expense allocation | ' | ' | ' | ' | ' | ' | ' | ' | -937 | -939 | -627 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 218 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 3,008 | 7,340 | 3,552 |
Investment securities | 1,660,046 | ' | ' | ' | 1,698,593 | ' | ' | ' | 1,660,046 | 1,698,593 | 1,493,925 |
Other | 257,032 | ' | ' | ' | 363,815 | ' | ' | ' | 257,032 | 363,815 | 429,141 |
Total assets | 1,917,078 | ' | ' | ' | 2,062,408 | ' | ' | ' | 1,917,078 | 2,062,408 | 1,923,066 |
All Others | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other operating income | ' | ' | ' | ' | ' | ' | ' | ' | 1,466 | -304 | 1,004 |
Other operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -56,046 | -58,784 | -55,869 |
Administrative and overhead expense allocation | ' | ' | ' | ' | ' | ' | ' | ' | 55,989 | 58,579 | 55,035 |
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -5,059 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 9,396 | -11,235 | -26,785 |
Other | 72,510 | ' | ' | ' | 73,000 | ' | ' | ' | 72,510 | 73,000 | 71,204 |
Total assets | 72,510 | ' | ' | ' | 73,000 | ' | ' | ' | 72,510 | 73,000 | 71,204 |
Intersegment elimination | Banking Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 14,761 | 32,954 | 45,564 |
Intersegment elimination | Treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -27,807 | -22,228 | -18,609 |
Intersegment elimination | All Others | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | $13,046 | ($10,726) | ($26,955) |
PARENT_COMPANY_AND_REGULATORY_2
PARENT COMPANY AND REGULATORY RESTRICTIONS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Leverage capital | ' | ' |
Actual Amount | $632,724,000 | $609,394,000 |
Actual Ratio (as a percent) | 13.70% | 14.30% |
Minimum amount required to be adequately capitalized | 184,995,000 | 170,176,000 |
Minimum ratio required to be adequately capitalized (as a percent) | 4.00% | 4.00% |
Minimum amount required to be well-capitalized | 231,244,000 | 212,720,000 |
Minimum ratio required to be well-capitalized (as a percent) | 5.00% | 5.00% |
Tier 1 risk-based capital | ' | ' |
Actual Amount | 632,724,000 | 609,394,000 |
Actual Ratio (as a percent) | 20.30% | 22.50% |
Minimum amount required to be adequately capitalized | 124,671,000 | 108,128,000 |
Minimum ratio required to be adequately capitalized (as a percent) | 4.00% | 4.00% |
Minimum amount required to be well-capitalized | 187,007,000 | 162,192,000 |
Minimum ratio required to be well-capitalized (as a percent) | 6.00% | 6.00% |
Total risk-based capital | ' | ' |
Actual Amount | 672,317,000 | 644,044,000 |
Actual Ratio (as a percent) | 21.60% | 23.80% |
Minimum amount required to be adequately capitalized | 249,343,000 | 216,256,000 |
Minimum ratio required to be adequately capitalized (as a percent) | 8.00% | 8.00% |
Minimum amount required to be well-capitalized | 311,678,000 | 270,320,000 |
Minimum ratio required to be well-capitalized (as a percent) | 10.00% | 10.00% |
Central Pacific Bank | ' | ' |
PARENT COMPANY AND REGULATORY RESTRICTIONS | ' | ' |
Equity in undistributed losses | 241,100,000 | ' |
Retained earnings | 240,400,000 | ' |
Leverage capital | ' | ' |
Actual Amount | 610,753,000 | 580,860,000 |
Actual Ratio (as a percent) | 13.20% | 13.60% |
Minimum amount required to be adequately capitalized | 184,736,000 | 170,274,000 |
Minimum ratio required to be adequately capitalized (as a percent) | 4.00% | 4.00% |
Minimum amount required to be well-capitalized | 230,920,000 | 212,843,000 |
Minimum ratio required to be well-capitalized (as a percent) | 5.00% | 5.00% |
Tier 1 risk-based capital | ' | ' |
Actual Amount | 610,753,000 | 580,860,000 |
Actual Ratio (as a percent) | 19.60% | 21.50% |
Minimum amount required to be adequately capitalized | 124,425,000 | 108,229,000 |
Minimum ratio required to be adequately capitalized (as a percent) | 4.00% | 4.00% |
Minimum amount required to be well-capitalized | 186,637,000 | 162,343,000 |
Minimum ratio required to be well-capitalized (as a percent) | 6.00% | 6.00% |
Total risk-based capital | ' | ' |
Actual Amount | 650,216,000 | 615,523,000 |
Actual Ratio (as a percent) | 20.90% | 22.70% |
Minimum amount required to be adequately capitalized | 248,850,000 | 216,457,000 |
Minimum ratio required to be adequately capitalized (as a percent) | 8.00% | 8.00% |
Minimum amount required to be well-capitalized | $311,062,000 | $270,572,000 |
Minimum ratio required to be well-capitalized (as a percent) | 10.00% | 10.00% |
PARENT_COMPANY_AND_REGULATORY_3
PARENT COMPANY AND REGULATORY RESTRICTIONS (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $49,348 | $177,375 | $257,072 | $790,739 |
Investment securities available for sale | 1,407,999 | 1,536,745 | ' | ' |
Total assets | 4,741,198 | 4,370,368 | 4,132,865 | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Long-term debt | 92,799 | 108,281 | ' | ' |
Other liabilities | 44,037 | 66,536 | ' | ' |
Total liabilities | 4,081,024 | 3,855,589 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at December 31, 2013 and 2012 | ' | ' | ' | ' |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding 42,112,633 and 41,867,046 shares at December 31, 2013 and 2012, respectively | 784,547 | 784,512 | ' | ' |
Surplus | 75,498 | 70,567 | ' | ' |
Accumulated deficit | -184,087 | -349,427 | ' | ' |
Accumulated other comprehensive loss | -15,845 | -830 | 2,164 | -14,565 |
Total shareholders' equity | 660,113 | 504,822 | ' | ' |
Total liabilities and equity | 4,741,198 | 4,370,368 | ' | ' |
Parent company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 19,629 | 46,686 | 45,626 | 6,000 |
Investment securities available for sale | 875 | 906 | ' | ' |
Investment in subsidiary bank, at equity in underlying net assets | 710,122 | 581,248 | ' | ' |
Investment in other subsidiaries, at equity in underlying assets | 554 | 549 | ' | ' |
Accrued interest receivable and other assets | 23,202 | 6,845 | ' | ' |
Total assets | 754,382 | 636,234 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Long-term debt | 92,785 | 108,249 | ' | ' |
Other liabilities | 1,484 | 23,163 | ' | ' |
Total liabilities | 94,269 | 131,412 | ' | ' |
Shareholders' equity: | ' | ' | ' | ' |
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at December 31, 2013 and 2012 | ' | ' | ' | ' |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding 42,112,633 and 41,867,046 shares at December 31, 2013 and 2012, respectively | 784,547 | 784,512 | ' | ' |
Surplus | 75,498 | 70,567 | ' | ' |
Accumulated deficit | -184,087 | -349,427 | ' | ' |
Accumulated other comprehensive loss | -15,845 | -830 | ' | ' |
Total shareholders' equity | 660,113 | 504,822 | ' | ' |
Total liabilities and equity | $754,382 | $636,234 | ' | ' |
PARENT_COMPANY_AND_REGULATORY_4
PARENT COMPANY AND REGULATORY RESTRICTIONS (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheets (Parenthetical) | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' |
Preferred stock, authorized shares | 1,100,000 | 1,100,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 42,107,633 | 41,867,046 |
Common stock, outstanding shares | 42,107,633 | 41,867,046 |
Parent company | ' | ' |
Condensed Balance Sheets (Parenthetical) | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, authorized shares | 185,000,000 | 185,000,000 |
Common stock, issued shares | 42,112,633 | 41,867,046 |
Common stock, outstanding shares | 42,112,633 | 41,867,046 |
PARENT_COMPANY_AND_REGULATORY_5
PARENT COMPANY AND REGULATORY RESTRICTIONS (Details 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | $3,119 | $3,701 | $8,815 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -112,247 | ' | ' |
Net income | 10,295 | 10,204 | 14,267 | 137,309 | 12,410 | 10,721 | 10,812 | 13,478 | 172,075 | 47,421 | 36,571 |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest from subsidiary banks | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 48 | 109 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 2,001 | 9 | 1,047 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 2,031 | 57 | 1,156 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | 3,118 | 3,687 | 3,392 |
Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 2,679 | 3,081 | 3,584 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 5,797 | 6,768 | 6,976 |
Loss before income taxes and equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -3,766 | -6,711 | -5,820 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -31,891 | ' | ' |
Income (loss) before equity in undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 28,125 | -6,711 | -5,820 |
Equity in undistributed income of subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | 143,945 | 54,124 | 42,377 |
Equity in undistributed income of other subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 8 | 14 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $172,075 | $47,421 | $36,571 |
PARENT_COMPANY_AND_REGULATORY_6
PARENT COMPANY AND REGULATORY RESTRICTIONS (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $10,295 | $10,204 | $14,267 | $137,309 | $12,410 | $10,721 | $10,812 | $13,478 | $172,075 | $47,421 | $36,571 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -112,356 | ' | ' |
Share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 4,931 | 3,982 | 3,277 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 84,531 | 39,388 | 23,123 |
Cash flows from investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution from unconsolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 9,615 | 467 | 522 |
Contributions to unconsolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -9,050 | ' | ' |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -442,050 | -306,278 | -687,244 |
Cash flows from financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common stock and stock option exercises | ' | ' | ' | ' | ' | ' | ' | ' | 74 | ' | 323,538 |
Repayments of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | -15,482 | -50,017 | -301,219 |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -6,735 | ' | ' |
Net cash provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 229,492 | 187,193 | 130,454 |
Net decrease in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -128,027 | -79,697 | -533,667 |
At beginning of year | ' | ' | ' | 177,375 | ' | ' | ' | 257,072 | 177,375 | 257,072 | 790,739 |
At end of year | 49,348 | ' | ' | ' | 177,375 | ' | ' | ' | 49,348 | 177,375 | 257,072 |
Parent company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 172,075 | 47,421 | 36,571 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -19,440 | ' | ' |
Equity in income of subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | -143,945 | -54,124 | -42,377 |
Equity in undistributed income of other subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -5 | -8 | -14 |
Share-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | 4,931 | 90 | 153 |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -18,548 | 7,681 | 4,755 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | -4,932 | 1,060 | -912 |
Cash flows from investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in subsidiary bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -283,000 |
Distribution from unconsolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 9,000 | ' | ' |
Contributions to unconsolidated subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -9,000 | ' | ' |
Net cash used in investing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -283,000 |
Cash flows from financing activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common stock and stock option exercises | ' | ' | ' | ' | ' | ' | ' | ' | 74 | ' | 323,538 |
Repayments of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | -15,464 | ' | ' |
Dividends paid | ' | ' | ' | ' | ' | ' | ' | ' | -6,735 | ' | ' |
Net cash provided by financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -22,125 | ' | 323,538 |
Net decrease in cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | -27,057 | 1,060 | 39,626 |
At beginning of year | ' | ' | ' | 46,686 | ' | ' | ' | 45,626 | 46,686 | 45,626 | 6,000 |
At end of year | $19,629 | ' | ' | ' | $46,686 | ' | ' | ' | $19,629 | $46,686 | $45,626 |
UNAUDITED_QUARTERLY_FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
UNAUDITED QUARTERLY FINANCIAL INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total interest income | $37,133 | $35,558 | $34,992 | $32,595 | $31,389 | $31,674 | $32,479 | $32,903 | $140,278 | $128,445 | $136,450 |
Total interest expense | 1,637 | 1,787 | 1,819 | 1,926 | 1,999 | 2,114 | 2,220 | 2,401 | 7,169 | 8,734 | 18,629 |
Net interest income | 35,496 | 33,771 | 33,173 | 30,669 | 29,390 | 29,560 | 30,259 | 30,502 | 133,109 | 119,711 | 117,821 |
Provision (credit) for loan and lease losses | -1,333 | -3,189 | -227 | -6,561 | -2,283 | -4,982 | -6,630 | -4,990 | -11,310 | -18,885 | -40,690 |
Net interest income after provision for loan and lease losses | 36,829 | 36,960 | 33,400 | 37,230 | 31,673 | 34,542 | 36,889 | 35,492 | 144,419 | 138,596 | 158,511 |
Investment securities gains | 482 | ' | ' | ' | ' | 789 | ' | ' | 482 | 789 | 1,306 |
Income before income taxes | 13,731 | 12,378 | 16,212 | 17,507 | 12,410 | 10,721 | 10,812 | 13,478 | 59,828 | 47,421 | 36,571 |
Net income | $10,295 | $10,204 | $14,267 | $137,309 | $12,410 | $10,721 | $10,812 | $13,478 | $172,075 | $47,421 | $36,571 |
Basic earnings per share (in dollars per share) | $0.24 | $0.24 | $0.34 | $3.28 | $0.30 | $0.26 | $0.26 | $0.32 | $4.10 | $1.14 | $3.36 |
Diluted earnings per share (in dollars per share) | $0.24 | $0.24 | $0.34 | $3.25 | $0.29 | $0.26 | $0.26 | $0.32 | $4.07 | $1.13 | $3.31 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 14, 2014 | Feb. 21, 2014 | Feb. 21, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Feb. 21, 2014 | Feb. 21, 2014 | Feb. 21, 2014 |
In Millions, except Share data, unless otherwise specified | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||
Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Forecast | Forecast | Forecast | |||
Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Common Stock | Common Stock | Common Stock | ||||
Maximum | Minimum | Lead Investors | Carlyle | Carlyle | Anchorage | Anchorage | Maximum | Minimum | |||||
Maximum | Maximum | ||||||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tender offer price (in dollars per share) | ' | ' | ' | $21 | $18.50 | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price after the expiration date of the Tender Offer (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21 | $18.50 |
Increment in purchase price after the expiration date of the Tender Offer (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' |
Common stock, issued shares | 42,107,633 | 41,867,046 | 42,108,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, outstanding shares | 42,107,633 | 41,867,046 | 42,108,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased or acquired through tender offer | ' | ' | ' | 3,718,918 | 3,276,190 | ' | ' | ' | ' | ' | ' | 5,952,380 | 6,756,755 |
Shares offered to purchase pursuant to the tender offer as a percentage of shares issued and outstanding, if tender offer is fully subscribed | ' | ' | ' | 8.80% | 7.80% | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock held by investors | ' | ' | ' | ' | ' | ' | 9,463,095 | ' | 9,463,095 | ' | ' | ' | ' |
Percentage of shares of common stock held by investors | ' | ' | ' | ' | ' | 44.90% | 22.50% | ' | 22.50% | ' | ' | ' | ' |
Value of shares repurchased or acquired through tender offer | ' | ' | ' | $68.80 | ' | $56.20 | ' | $28.10 | ' | $28.10 | ' | $125 | ' |
Purchase price, if the tender offer is fully subscribed (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21 | $18.50 |
Share repurchase percentage of issued and outstanding shares, if the tender offer and share repurchase is fully subscribed at maximum purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.10% | ' | ' |
Share repurchase percentage of issued and outstanding shares, if the tender offer and share repurchase is fully subscribed at minimum purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | ' | ' |