Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CENTRAL PACIFIC FINANCIAL CORP | ' |
Entity Central Index Key | '0000701347 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 35,901,080 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $83,539 | $45,092 |
Interest-bearing deposits in other banks | 3,480 | 4,256 |
Investment securities: | ' | ' |
Available for sale, at fair value | 1,226,935 | 1,407,999 |
Held to maturity, at amortized cost (fair value of $241,368 at June 30, 2014 and $238,705 at December 31, 2013) | 247,206 | 252,047 |
Total investment securities | 1,474,141 | 1,660,046 |
Loans held for sale | 8,464 | 12,370 |
Loans and leases | 2,794,183 | 2,630,601 |
Allowance for loan and lease losses | -83,599 | -83,820 |
Net loans and leases | 2,710,584 | 2,546,781 |
Premises and equipment, net | 48,703 | 49,039 |
Accrued interest receivable | 13,253 | 14,072 |
Investment in unconsolidated subsidiaries | 7,918 | 9,127 |
Other real estate | 5,247 | 5,163 |
Other intangible assets | 31,145 | 32,783 |
Bank-owned life insurance | 151,242 | 149,604 |
Federal Home Loan Bank stock | 45,011 | 46,193 |
Other assets | 145,039 | 166,672 |
Total assets | 4,727,766 | 4,741,198 |
Deposits: | ' | ' |
Noninterest-bearing demand | 962,646 | 891,017 |
Interest-bearing demand | 756,776 | 728,619 |
Savings and money market | 1,221,253 | 1,207,016 |
Time | 1,061,903 | 1,109,521 |
Total deposits | 4,002,578 | 3,936,173 |
Short-term borrowings | 29,000 | 8,015 |
Long-term debt | 92,790 | 92,799 |
Other liabilities | 38,830 | 44,037 |
Total liabilities | 4,163,198 | 4,081,024 |
Equity: | ' | ' |
Preferred stock, no par value, authorized 1,100,000 shares, issued and outstanding none at March 31, 2014 and December 31, 2013, respectively | ' | ' |
Common stock, no par value, authorized 185,000,000 shares, issued and outstanding 35,901,080 and 42,107,633 shares at June 30, 2014 and December 31, 2013, respectively | 655,219 | 784,547 |
Surplus | 76,311 | 75,498 |
Accumulated deficit | -171,380 | -184,087 |
Accumulated other comprehensive income (loss) | 4,418 | -15,845 |
Total shareholders' equity | 564,568 | 660,113 |
Non-controlling interest | ' | 61 |
Total equity | 564,568 | 660,174 |
Total liabilities and equity | $4,727,766 | $4,741,198 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Held to maturity, fair value (in dollars) | $241,368 | $238,705 |
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 | 35,901,080 | 42,107,633 |
Common stock, outstanding shares | 35,901,080 | 42,107,633 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest income: | ' | ' | ' | ' |
Interest and fees on loans and leases | $28,040 | $26,505 | $54,923 | $50,948 |
Interest and dividends on investment securities: | ' | ' | ' | ' |
Taxable interest | 8,476 | 7,373 | 17,972 | 14,404 |
Tax-exempt interest | 1,000 | 1,040 | 1,994 | 2,067 |
Dividends | 1 | 6 | 2 | 11 |
Interest on deposits in other banks | 8 | 68 | 15 | 157 |
Dividends on Federal Home Loan Bank stock | 11 | ' | 23 | ' |
Total interest income | 37,536 | 34,992 | 74,929 | 67,587 |
Interest on deposits: | ' | ' | ' | ' |
Demand | 91 | 87 | 181 | 168 |
Savings and money market | 223 | 219 | 447 | 436 |
Time | 621 | 720 | 1,251 | 1,479 |
Interest on short-term borrowings | 55 | ' | 72 | ' |
Interest on long-term debt | 640 | 793 | 1,276 | 1,662 |
Total interest expense | 1,630 | 1,819 | 3,227 | 3,745 |
Net interest income | 35,906 | 33,173 | 71,702 | 63,842 |
Provision (credit) for loan and lease losses | 1,995 | -227 | 679 | -6,788 |
Net interest income after provision for loan and lease losses | 33,911 | 33,400 | 71,023 | 70,630 |
Other operating income: | ' | ' | ' | ' |
Service charges on deposit accounts | 1,989 | 1,583 | 3,982 | 3,174 |
Loan servicing fees | 1,448 | 1,526 | 2,892 | 3,069 |
Other service charges and fees | 3,083 | 3,117 | 6,026 | 5,904 |
Income from fiduciary activities | 828 | 686 | 1,890 | 1,383 |
Equity in earnings of unconsolidated subsidiaries | 359 | 192 | 411 | 220 |
Fees on foreign exchange | 119 | 128 | 233 | 199 |
Investment securities gains | 240 | ' | 240 | ' |
Income from bank-owned life insurance | 766 | 317 | 1,436 | 881 |
Loan placement fees | 178 | 178 | 321 | 327 |
Net gain on sales of residential loans | 1,227 | 2,888 | 2,466 | 7,016 |
Net gain on sales of foreclosed assets | 582 | 7,694 | 744 | 8,252 |
Other | 1,185 | -497 | 1,507 | 417 |
Total other operating income | 12,004 | 17,812 | 22,148 | 30,842 |
Other operating expense: | ' | ' | ' | ' |
Salaries and employee benefits | 16,550 | 18,242 | 33,984 | 36,777 |
Net occupancy | 3,734 | 3,622 | 7,324 | 6,849 |
Equipment | 945 | 878 | 1,741 | 1,836 |
Amortization of other intangible assets | 1,318 | 2,109 | 2,558 | 4,357 |
Communication expense | 874 | 870 | 1,768 | 1,820 |
Legal and professional services | 2,228 | 1,945 | 4,040 | 4,255 |
Computer software expense | 1,575 | 1,193 | 2,933 | 2,126 |
Advertising expense | 678 | 728 | 1,364 | 1,540 |
Foreclosed asset expense | -17 | 705 | 88 | 1,005 |
Other | 5,003 | 4,708 | 9,018 | 7,188 |
Total other operating expense | 32,888 | 35,000 | 64,818 | 67,753 |
Income before income taxes | 13,027 | 16,212 | 28,353 | 33,719 |
Income tax expense (benefit) | 3,877 | 1,945 | 9,395 | -117,857 |
Net income | $9,150 | $14,267 | $18,958 | $151,576 |
Per common share data: | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.25 | $0.34 | $0.49 | $3.62 |
Diluted earnings per share (in dollars per share) | $0.25 | $0.34 | $0.48 | $3.59 |
Cash dividends declared (in dollars per share) | $0.08 | ' | $0.16 | ' |
Shares used in computation: | ' | ' | ' | ' |
Basic shares (in shares) | 36,117 | 41,957 | 39,000 | 41,886 |
Diluted shares (in shares) | 36,656 | 42,320 | 39,405 | 42,235 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $9,150 | $14,267 | $18,958 | $151,576 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' |
Net change in unrealized gain (loss) on investment securities | 10,310 | -23,100 | 19,886 | -27,923 |
Net change in unrealized loss on derivatives | ' | ' | ' | 10,993 |
Defined benefit plans | 190 | 375 | 377 | 1,000 |
Other comprehensive income (loss), net of tax | 10,500 | -22,725 | 20,263 | -15,930 |
Comprehensive income (loss) | $19,650 | ($8,458) | $39,221 | $135,646 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Common shares outstanding | Common Stock | Surplus | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests |
In Thousands, except Share data, unless otherwise specified | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance at Dec. 31, 2012 | $514,779 | ' | $784,512 | $70,567 | ($349,427) | ($830) | $9,957 |
Balance (in shares) at Dec. 31, 2012 | ' | 41,867,046 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 151,576 | ' | ' | ' | 151,576 | ' | ' |
Other comprehensive income | -15,930 | ' | ' | ' | ' | -15,930 | ' |
1,782 net shares of common stock purchased by directors' deferred compensation plan | -39 | ' | -39 | ' | ' | ' | ' |
Share-based compensation | 1,606 | ' | ' | 1,606 | ' | ' | ' |
Share-based compensation (in shares) | ' | 221,930 | ' | ' | ' | ' | ' |
Non-controlling interests | -11 | ' | ' | ' | ' | ' | -11 |
Balance at Jun. 30, 2013 | 651,981 | ' | 784,473 | 72,173 | -197,851 | -16,760 | 9,946 |
Balance (in shares) at Jun. 30, 2013 | ' | 42,088,976 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 660,174 | ' | 784,547 | 75,498 | -184,087 | -15,845 | 61 |
Balance (in shares) at Dec. 31, 2013 | 42,107,633 | 42,107,633 | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 18,958 | ' | ' | ' | 18,958 | ' | ' |
Other comprehensive income | 20,263 | ' | ' | ' | ' | 20,263 | ' |
Cash dividends paid ($0.16 per share) | -6,251 | ' | ' | ' | -6,251 | ' | ' |
1,118 net shares of common stock sold by directors' deferred compensation plan | -11 | ' | -11 | ' | ' | ' | ' |
6,369,266 shares of common stock repurchased and other related costs | -129,391 | ' | -129,391 | ' | ' | ' | ' |
6,369,266 shares of common stock repurchased and other related costs (in shares) | -6,369,266 | -6,369,266 | ' | ' | ' | ' | ' |
Share-based compensation | 887 | ' | 74 | 813 | ' | ' | ' |
Share-based compensation (in shares) | ' | 162,713 | ' | ' | ' | ' | ' |
Non-controlling interests | -61 | ' | ' | ' | ' | ' | -61 |
Balance at Jun. 30, 2014 | $564,568 | ' | $655,219 | $76,311 | ($171,380) | $4,418 | ' |
Balance (in shares) at Jun. 30, 2014 | 35,901,080 | 35,901,080 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ' | ' |
Cash dividends (in dollars per share) | $0.16 | ' |
Common stock purchased (sold) by directors' deferred compensation plan (in shares) | 1,118 | 1,782 |
Shares of common stock repurchased | 6,369,266 | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $18,958 | $151,576 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision (credit) for loan and lease losses | 679 | -6,788 |
Depreciation and amortization | 2,909 | 3,027 |
Write down of other real estate, net of gain on sale | -457 | -7,739 |
Amortization of other intangible assets | 2,558 | 4,357 |
Net amortization of investment securities | 4,160 | 7,618 |
Share-based compensation | 813 | 1,606 |
Net gain on investment securities | -240 | ' |
Net gain on sales of residential loans | -2,466 | -7,016 |
Proceeds from sales of loans held for sale | 177,204 | 398,955 |
Originations of loans held for sale | -170,832 | -368,330 |
Equity in earnings of unconsolidated subsidiaries | -411 | -220 |
Increase in cash surrender value of bank-owned life insurance | -1,638 | -881 |
Deferred income taxes | 9,438 | -117,857 |
Net change in other assets and liabilities | -5,119 | 17,240 |
Net cash provided by operating activities | 35,556 | 75,548 |
Cash flows from investing activities: | ' | ' |
Proceeds from maturities of and calls on investment securities available for sale | 66,804 | 289,045 |
Proceeds from sales of investment securities available for sale | 162,470 | ' |
Purchases of investment securities available for sale | -18,989 | -414,486 |
Proceeds from maturities of and calls on investment securities held to maturity | 7,098 | 6,174 |
Purchases of investment securities held to maturity | -2,443 | ' |
Net loan originations | -143,303 | -149,091 |
Purchase of loan portfolio | -22,690 | -26,235 |
Proceeds from sales of loans originated for investment | ' | 460 |
Proceeds from sale of other real estate | 1,884 | 14,205 |
Purchases of premises and equipment | -2,573 | -3,075 |
Distributions from unconsolidated subsidiaries | 396 | 550 |
Contributions to unconsolidated subsidiaries | 466 | -9,050 |
Proceeds from redemption of FHLB stock | 1,182 | 869 |
Net cash provided by (used in) investing activities | 50,302 | -290,634 |
Cash flows from financing activities: | ' | ' |
Net increase in deposits | 66,405 | 174,894 |
Repayments of long-term debt | -9 | -9 |
Net increase in short-term borrowings | 20,985 | ' |
Cash dividends paid on common stock | -6,251 | ' |
Repurchases of common stock and other related costs | -129,391 | ' |
Net proceeds from issuance of common stock and stock option exercises | 74 | ' |
Net cash provided by (used in) financing activities | -48,187 | 174,885 |
Net increase (decrease) in cash and cash equivalents | 37,671 | -40,201 |
Cash and cash equivalents at beginning of period | 49,348 | 177,375 |
Cash and cash equivalents at end of period | 87,019 | 137,174 |
Cash paid during the period for: | ' | ' |
Interest | 3,283 | 15,666 |
Income taxes | ' | 5 |
Cash received during the period for: | ' | ' |
Income taxes | 79 | ' |
Supplemental disclosure of noncash investing and financing activities: | ' | ' |
Net change in common stock held by directors' deferred compensation plan | 11 | 39 |
Net reclassification of loans to other real estate | 1,511 | 3,217 |
Net transfer of investment securities available for sale to held to maturity | ' | $101,669 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | ' |
1. BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the “Company,” “we,” “us” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2013. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. | |
Certain prior period amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the current period presentation. Such reclassifications had no effect on net income or shareholders’ equity for any periods presented. |
REGULATORY_MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2014 | |
REGULATORY MATTERS | ' |
REGULATORY MATTERS | ' |
2. REGULATORY MATTERS | |
On October 9, 2012, the bank entered into a Memorandum of Understanding (the “Compliance MOU”) with the Federal Deposit Insurance Corporation (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 its most recent 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 be subject to other agreements with regulators which restrict our activities or may impose higher 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. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
3. RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The provisions of ASU 2013-11 provide guidance for financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar loss or a tax credit carryforward exists. The Company has reflected the adoption of this guidance prospectively on January 1, 2014, the effective date of ASU 2013-11. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
4. INVESTMENT SECURITIES | ||||||||||||||||||||
A summary of available for sale and held to maturity investment securities are as follows: | ||||||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
At June 30, 2014: | ||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | $ | 247,206 | $ | 68 | $ | (5,906 | ) | $ | 241,368 | |||||||||||
Available for Sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 192,139 | $ | 1,452 | $ | (4,648 | ) | $ | 188,943 | |||||||||||
Corporate securities | 84,751 | 2,116 | (29 | ) | 86,838 | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 775,778 | 10,898 | (4,627 | ) | 782,049 | |||||||||||||||
Non-agency collateralized mortgage obligations | 165,991 | 3,563 | (1,312 | ) | 168,242 | |||||||||||||||
Other | 738 | 125 | — | 863 | ||||||||||||||||
Total | $ | 1,219,397 | $ | 18,154 | $ | (10,616 | ) | $ | 1,226,935 | |||||||||||
At December 31, 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 | |||||||||||
The amortized cost and estimated fair value of investment securities at June 30, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Amortized | Estimated Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||
Mortage-backed securities | $ | 247,206 | $ | 241,368 | ||||||||||||||||
Available for Sale | ||||||||||||||||||||
Due in one year or less | $ | 3,415 | $ | 3,417 | ||||||||||||||||
Due after one year through five years | 49,944 | 51,498 | ||||||||||||||||||
Due after five years through ten years | 102,046 | 102,191 | ||||||||||||||||||
Due after ten years | 121,485 | 118,675 | ||||||||||||||||||
Mortage-backed securities | 941,769 | 950,291 | ||||||||||||||||||
Other | 738 | 863 | ||||||||||||||||||
Total | $ | 1,219,397 | $ | 1,226,935 | ||||||||||||||||
We sold certain available for sale investment securities during the three months ended June 30, 2014 for gross proceeds of $162.5 million. Gross realized gains and losses on the sales of the available for sale investment securities were $0.9 million and $0.7 million, respectively, during the three months ended June 30, 2014. We did not sell any available for sale securities during the first quarter of 2014 and first half of 2013. The specific identification method was used as the bases for determining the cost of all securities sold. | ||||||||||||||||||||
Investment securities of $928.3 million and $914.1 million at June 30, 2014 and December 31, 2013, respectively, were pledged to secure public funds on deposit and other long-term and short-term borrowings. None of these securities were pledged to a secured party that has the right to sell or repledge the collateral as of the same periods. | ||||||||||||||||||||
Provided below is a summary of the 224 and 321 investment securities which were in an unrealized loss position at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||
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 June 30, 2014: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 8,433 | $ | (28 | ) | $ | 99,134 | $ | (4,620 | ) | $ | 107,567 | $ | (4,648 | ) | |||||
Corporate securities | — | — | 8,481 | (29 | ) | 8,481 | (29 | ) | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 54,352 | (451 | ) | 477,248 | (10,082 | ) | 531,600 | (10,533 | ) | |||||||||||
Non-agency collateralized mortgage obligations | 4,939 | (29 | ) | 57,170 | (1,283 | ) | 62,109 | (1,312 | ) | |||||||||||
Total temporarily impaired securities | $ | 67,724 | $ | (508 | ) | $ | 642,033 | $ | (16,014 | ) | $ | 709,757 | $ | (16,522 | ) | |||||
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 | ) | |||||
Other-Than-Temporary Impairment (“OTTI”) | ||||||||||||||||||||
Unrealized losses for all investment securities are reviewed to determine whether the losses are deemed “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. 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 these investments to be other-than-temporarily impaired. |
LOANS_AND_LEASES
LOANS AND LEASES | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
LOANS AND LEASES | ' | |||||||||||||||||||||||||
LOANS AND LEASES | ' | |||||||||||||||||||||||||
5. LOANS AND LEASES | ||||||||||||||||||||||||||
Loans and leases, excluding loans held for sale, consisted of the following: | ||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 432,029 | $ | 398,365 | ||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 100,357 | 75,927 | ||||||||||||||||||||||||
Mortgage - residential | 1,224,948 | 1,135,155 | ||||||||||||||||||||||||
Mortgage - commercial | 698,688 | 703,800 | ||||||||||||||||||||||||
Consumer | 333,609 | 311,670 | ||||||||||||||||||||||||
Leases | 4,087 | 6,241 | ||||||||||||||||||||||||
2,793,718 | 2,631,158 | |||||||||||||||||||||||||
Net deferred costs (income) | 465 | (557 | ) | |||||||||||||||||||||||
Total loans and leases | $ | 2,794,183 | $ | 2,630,601 | ||||||||||||||||||||||
During the six months ended June 30, 2014, we foreclosed on three loans with a carrying value of $1.5 million. We did not transfer any portfolio loans to the held-for-sale category and no portfolio loans were sold during the six months ended June 30, 2014. In May 2014, we purchased participation interest in auto loans totaling $11.2 million, which included a $0.3 million premium over the $10.9 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 71 months. In May 2014, we also purchased participation interest in student loans totaling $11.5 million, which represented the outstanding balance at the time of purchase. At the time of purchase, the student loans had a weighted average remaining term of 123 months. | ||||||||||||||||||||||||||
During the six months ended June 30, 2013, we foreclosed on seven loans with a carrying value of $3.2 million. We did not transfer any portfolio loans to the held-for-sale category and no portfolio loans were sold during the six months ended June 30, 2013. In June 2013, we purchased an auto loan portfolio for $21.6 million, which included a $0.8 million premium over the $20.8 million outstanding balance. At the time of purchase, the auto loan portfolio had a weighted average remaining term of 76 months. In June 2013, we also purchased participation interests in student loans for $4.7 million, which represented the outstanding balance at the time of purchase. At the time of purchase, the student loans had a weighted average remaining term of 130 months. | ||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||
The following table presents by class, the balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on the Company’s impairment measurement method as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
Commercial, | Real Estate | |||||||||||||||||||||||||
Financial & | Construction | Mortgage - | Mortgage - | Consumer | Leases | Total | ||||||||||||||||||||
Agricultural | Residential | Commercial | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Ending balance attributable to loans: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,173 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,173 | ||||||||||||
Collectively evaluated for impairment | 9,082 | 15,525 | 19,198 | 25,885 | 6,723 | 13 | 76,426 | |||||||||||||||||||
12,255 | 15,525 | 19,198 | 25,885 | 6,723 | 13 | 79,599 | ||||||||||||||||||||
Unallocated | 4,000 | |||||||||||||||||||||||||
Total ending balance | $ | 12,255 | $ | 15,525 | $ | 19,198 | $ | 25,885 | $ | 6,723 | $ | 13 | $ | 83,599 | ||||||||||||
Loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 17,041 | $ | 5,185 | $ | 32,064 | $ | 17,176 | $ | — | $ | — | $ | 71,466 | ||||||||||||
Collectively evaluated for impairment | 414,988 | 95,172 | 1,192,884 | 681,512 | 333,609 | 4,087 | 2,722,252 | |||||||||||||||||||
432,029 | 100,357 | 1,224,948 | 698,688 | 333,609 | 4,087 | 2,793,718 | ||||||||||||||||||||
Net deferred costs (income) | 715 | (479 | ) | 1,916 | (956 | ) | (731 | ) | — | 465 | ||||||||||||||||
Total ending balance | $ | 432,744 | $ | 99,878 | $ | 1,226,864 | $ | 697,732 | $ | 332,878 | $ | 4,087 | $ | 2,794,183 | ||||||||||||
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 | 25,272 | 29,947 | 6,576 | 55 | 77,471 | |||||||||||||||||||
13,196 | 2,774 | 25,272 | 29,947 | 6,576 | 55 | 77,820 | ||||||||||||||||||||
Unallocated | 6,000 | |||||||||||||||||||||||||
Total ending balance | $ | 13,196 | $ | 2,774 | $ | 25,272 | $ | 29,947 | $ | 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 | 1,098,376 | 687,529 | 311,670 | 6,241 | 2,566,104 | |||||||||||||||||||
398,365 | 75,927 | 1,135,155 | 703,800 | 311,670 | 6,241 | 2,631,158 | ||||||||||||||||||||
Net deferred costs (income) | 351 | (311 | ) | 1,418 | (1,033 | ) | (982 | ) | — | (557 | ) | |||||||||||||||
Total ending balance | $ | 398,716 | $ | 75,616 | $ | 1,136,573 | $ | 702,767 | $ | 310,688 | $ | 6,241 | $ | 2,630,601 | ||||||||||||
The following table presents by class, impaired loans as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance | ||||||||||||||||||||||||
Balance | Investment | Allocated | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Impaired loans with no related allowance recorded: | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 3,342 | $ | 3,342 | $ | — | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 11,572 | 5,185 | — | |||||||||||||||||||||||
Mortgage - residential | 35,573 | 32,064 | — | |||||||||||||||||||||||
Mortgage - commercial | 24,299 | 17,176 | — | |||||||||||||||||||||||
Total impaired loans with no related allowance recorded | 74,786 | 57,767 | — | |||||||||||||||||||||||
Impaired loans with an allowance recorded: | ||||||||||||||||||||||||||
Commercial, financial & agricultural | 15,167 | 13,699 | 3,173 | |||||||||||||||||||||||
Total impaired loans with an allowance recorded | 15,167 | 13,699 | 3,173 | |||||||||||||||||||||||
Total | $ | 89,953 | $ | 71,466 | $ | 3,173 | ||||||||||||||||||||
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 | ||||||||||||||||||||
The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | Investment | Recognized | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 17,300 | $ | 6 | $ | 4,403 | $ | 6 | $ | 12,858 | $ | 11 | $ | 4,225 | $ | 12 | ||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 5,225 | 44 | 26,892 | 291 | 6,024 | 76 | 36,464 | 467 | ||||||||||||||||||
Mortgage - residential | 33,419 | 274 | 37,588 | 197 | 34,913 | 437 | 39,992 | 328 | ||||||||||||||||||
Mortgage - commercial | 16,201 | 76 | 19,302 | 92 | 16,123 | 115 | 18,404 | 182 | ||||||||||||||||||
Leases | — | — | 34 | — | — | — | 61 | — | ||||||||||||||||||
Total | $ | 72,145 | $ | 400 | $ | 88,219 | $ | 586 | $ | 69,918 | $ | 639 | $ | 99,146 | $ | 989 | ||||||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
Accruing | Accruing | Accruing Loans | Nonaccrual | Total | Loans and | Total | ||||||||||||||||||||
Loans 30 - 59 | Loans 60 - 89 | Greater Than 90 | Loans | Past Due and | Leases Not | |||||||||||||||||||||
Days Past Due | Days Past Due | Days Past Due | Nonaccrual | Past Due | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 95 | $ | 114 | $ | — | $ | 16,657 | $ | 16,866 | $ | 415,878 | $ | 432,744 | ||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | — | — | — | 373 | 373 | 99,505 | 99,878 | |||||||||||||||||||
Mortgage - residential | 136 | 45 | 99 | 13,608 | 13,888 | 1,212,976 | 1,226,864 | |||||||||||||||||||
Mortgage - commercial | — | — | — | 6,236 | 6,236 | 691,496 | 697,732 | |||||||||||||||||||
Consumer | 964 | 334 | 20 | — | 1,318 | 331,560 | 332,878 | |||||||||||||||||||
Leases | — | — | — | — | — | 4,087 | 4,087 | |||||||||||||||||||
Total | $ | 1,195 | $ | 493 | $ | 119 | $ | 36,874 | $ | 38,681 | $ | 2,755,502 | $ | 2,794,183 | ||||||||||||
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 | 1,110,519 | 1,136,573 | |||||||||||||||||||
Mortgage - commercial | 544 | — | — | 13,769 | 14,313 | 688,454 | 702,767 | |||||||||||||||||||
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 | ||||||||||||
Modifications | ||||||||||||||||||||||||||
Troubled debt restructurings (“TDRs”) included in nonperforming assets at June 30, 2014 consisted of 38 Hawaii residential mortgage loans with a combined principal balance of $7.9 million, a Hawaii commercial loan with a principal balance of $0.5 million, and two Hawaii construction and development loans with a combined principal balance of $0.3 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 $30.7 million of TDRs still accruing interest at June 30, 2014, none of which were more than 90 days delinquent. At December 31, 2013, there were $23.3 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 for loan and lease losses (the “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 to our provision for loan and lease losses expense (the “Provision”) and the Allowance during the three and six months ended June 30, 2014. | ||||||||||||||||||||||||||
The following table presents by class, information related to loans modified in a TDR during the six months ended June 30, 2014 and the three and six months ended June 30, 2013. No loans were modified in a TDR during the three months ended June 30, 2014. | ||||||||||||||||||||||||||
Number | Recorded | Increase | ||||||||||||||||||||||||
of | Investment (as | in the | ||||||||||||||||||||||||
Contracts | of Period End) | Allowance | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 1 | $ | 189 | $ | — | |||||||||||||||||||||
Mortgage - residential | 3 | 1,626 | — | |||||||||||||||||||||||
Total | 4 | $ | 1,815 | $ | — | |||||||||||||||||||||
Six Months Ended June 20, 2014 | ||||||||||||||||||||||||||
Real estate mortgage - residential | 9 | $ | 600 | $ | — | |||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 587 | $ | — | |||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 1 | 189 | — | |||||||||||||||||||||||
Mortgage - residential | 3 | 1,626 | — | |||||||||||||||||||||||
Total | 5 | $ | 2,402 | $ | — | |||||||||||||||||||||
The following table presents by class, loans modified as a TDR within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2013. No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2014. | ||||||||||||||||||||||||||
Three and Six Months Ended June 30, | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Number of Contracts | Recorded Investment | |||||||||||||||||||||||||
(as of Period End) | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 132 | |||||||||||||||||||||||
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. The following table presents by class and credit indicator, the recorded investment in the Company’s loans and leases as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
Pass | Special | Substandard | Subtotal | Net Deferred | Total | |||||||||||||||||||||
Mention | Costs | |||||||||||||||||||||||||
(Income) | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 402,119 | $ | 11,344 | $ | 18,566 | $ | 432,029 | $ | 715 | $ | 432,744 | ||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 96,231 | — | 4,126 | 100,357 | (479 | ) | 99,878 | |||||||||||||||||||
Mortgage - residential | 1,210,715 | — | 14,233 | 1,224,948 | 1,916 | 1,226,864 | ||||||||||||||||||||
Mortgage - commercial | 653,898 | 9,285 | 35,505 | 698,688 | (956 | ) | 697,732 | |||||||||||||||||||
Consumer | 333,589 | — | 20 | 333,609 | (731 | ) | 332,878 | |||||||||||||||||||
Leases | 4,087 | — | — | 4,087 | — | 4,087 | ||||||||||||||||||||
Total | $ | 2,700,639 | $ | 20,629 | $ | 72,450 | $ | 2,793,718 | $ | 465 | $ | 2,794,183 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 371,285 | $ | 21,511 | $ | 5,569 | $ | 398,365 | $ | 351 | $ | 398,716 | ||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 67,435 | 4,477 | 4,015 | 75,927 | (311 | ) | 75,616 | |||||||||||||||||||
Mortgage - residential | 1,113,363 | 361 | 21,431 | 1,135,155 | 1,418 | 1,136,573 | ||||||||||||||||||||
Mortgage - commercial | 651,761 | 20,690 | 31,349 | 703,800 | (1,033 | ) | 702,767 | |||||||||||||||||||
Consumer | 311,670 | — | — | 311,670 | (982 | ) | 310,688 | |||||||||||||||||||
Leases | 6,241 | — | — | 6,241 | — | 6,241 | ||||||||||||||||||||
Total | $ | 2,521,755 | $ | 47,039 | $ | 62,364 | $ | 2,631,158 | $ | (557 | ) | $ | 2,630,601 | |||||||||||||
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 June 30, 2014 and December 31, 2013, we did not have any loans that we considered to be subprime. |
ALLOWANCE_FOR_LOAN_AND_LEASE_L
ALLOWANCE FOR LOAN AND LEASE LOSSES | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Beginning balance | $ | 12,786 | $ | 14,940 | $ | 17,812 | $ | 25,925 | $ | 5,687 | $ | 12 | $ | 6,000 | $ | 83,162 | ||||||||||
Provision (credit) for loan and lease losses | 405 | 243 | 959 | 988 | 1,402 | (2 | ) | (2,000 | ) | 1,995 | ||||||||||||||||
13,191 | 15,183 | 18,771 | 26,913 | 7,089 | 10 | 4,000 | 85,157 | |||||||||||||||||||
Charge-offs | 1,482 | — | 102 | 1,041 | 671 | — | — | 3,296 | ||||||||||||||||||
Recoveries | 546 | 342 | 529 | 13 | 305 | 3 | — | 1,738 | ||||||||||||||||||
Net charge-offs (recoveries) | 936 | (342 | ) | (427 | ) | 1,028 | 366 | (3 | ) | — | 1,558 | |||||||||||||||
Ending balance | $ | 12,255 | $ | 15,525 | $ | 19,198 | $ | 25,885 | $ | 6,723 | $ | 13 | $ | 4,000 | $ | 83,599 | ||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Beginning balance | $ | 8,641 | $ | 3,946 | $ | 27,964 | $ | 37,316 | $ | 2,864 | $ | 75 | $ | 6,000 | $ | 86,806 | ||||||||||
Provision (credit) for loan and lease losses | 2,439 | 1,044 | (4,504 | ) | (268 | ) | 1,069 | (7 | ) | — | (227 | ) | ||||||||||||||
11,080 | 4,990 | 23,460 | 37,048 | 3,933 | 68 | 6,000 | 86,579 | |||||||||||||||||||
Charge-offs | 1,597 | 277 | 380 | — | 242 | — | — | 2,496 | ||||||||||||||||||
Recoveries | 170 | 1,747 | 243 | 703 | 157 | 2 | — | 3,022 | ||||||||||||||||||
Net charge-offs (recoveries) | 1,427 | (1,470 | ) | 137 | (703 | ) | 85 | (2 | ) | — | (526 | ) | ||||||||||||||
Ending balance | $ | 9,653 | $ | 6,460 | $ | 23,323 | $ | 37,751 | $ | 3,848 | $ | 70 | $ | 6,000 | $ | 87,105 | ||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Beginning balance | $ | 13,196 | $ | 2,774 | $ | 25,272 | $ | 29,947 | $ | 6,576 | $ | 55 | $ | 6,000 | $ | 83,820 | ||||||||||
Provision (credit) for loan and lease losses | (538 | ) | 12,007 | (6,558 | ) | (3,047 | ) | 854 | (39 | ) | (2,000 | ) | 679 | |||||||||||||
12,658 | 14,781 | 18,714 | 26,900 | 7,430 | 16 | 4,000 | 84,499 | |||||||||||||||||||
Charge-offs | 1,555 | — | 139 | 1,041 | 1,251 | 8 | — | 3,994 | ||||||||||||||||||
Recoveries | 1,152 | 744 | 623 | 26 | 544 | 5 | — | 3,094 | ||||||||||||||||||
Net charge-offs (recoveries) | 403 | (744 | ) | (484 | ) | 1,015 | 707 | 3 | — | 900 | ||||||||||||||||
Ending balance | $ | 12,255 | $ | 15,525 | $ | 19,198 | $ | 25,885 | $ | 6,723 | $ | 13 | $ | 4,000 | $ | 83,599 | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Beginning balance | $ | 4,987 | $ | 4,510 | $ | 27,836 | $ | 50,574 | $ | 2,421 | $ | 85 | $ | 6,000 | $ | 96,413 | ||||||||||
Provision (credit) for loan and lease losses | 5,845 | 73 | (4,193 | ) | (10,106 | ) | 1,611 | (18 | ) | — | (6,788 | ) | ||||||||||||||
10,832 | 4,583 | 23,643 | 40,468 | 4,032 | 67 | 6,000 | 89,625 | |||||||||||||||||||
Charge-offs | 1,841 | 355 | 794 | 3,674 | 557 | — | — | 7,221 | ||||||||||||||||||
Recoveries | 662 | 2,232 | 474 | 957 | 373 | 3 | — | 4,701 | ||||||||||||||||||
Net charge-offs (recoveries) | 1,179 | (1,877 | ) | 320 | 2,717 | 184 | (3 | ) | — | 2,520 | ||||||||||||||||
Ending balance | $ | 9,653 | $ | 6,460 | $ | 23,323 | $ | 37,751 | $ | 3,848 | $ | 70 | $ | 6,000 | $ | 87,105 | ||||||||||
In accordance with GAAP, loans held for sale and other real estate assets are not included in our assessment of the Allowance. | ||||||||||||||||||||||||||
Our Provision was $2.0 million and $0.7 million in the second quarter and first half of 2014, respectively, compared to credits to the Provision of $0.2 million and $6.8 million in the second quarter and first half of 2013, respectively. | ||||||||||||||||||||||||||
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 | 6 Months Ended |
Jun. 30, 2014 | |
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 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 at June 30, 2014 and December 31, 2013. 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 on unsold mortgage-backed securities were recorded in accumulated other comprehensive income (“AOCI”) at June 30, 2014 and December 31, 2013. |
OTHER_INTANGIBLE_ASSETS
OTHER INTANGIBLE ASSETS | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
8. 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 six months ended June 30, 2014: | ||||||||||||||||||||
Core | Mortgage | |||||||||||||||||||
Deposit | Servicing | |||||||||||||||||||
Premium | Rights | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 12,704 | $ | 20,079 | $ | 32,783 | ||||||||||||||
Additions | — | 920 | 920 | |||||||||||||||||
Amortization | (1,338 | ) | (1,220 | ) | (2,558 | ) | ||||||||||||||
Balance, end of period | $ | 11,366 | $ | 19,779 | $ | 31,145 | ||||||||||||||
Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.5 million and $0.9 million for the three and six months ended June 30, 2014, respectively, compared to $0.7 million and $1.6 million for the three and six months ended June 30, 2013, respectively. Amortization of mortgage servicing rights was $0.6 million and $1.2 million for the three and six months ended June 30, 2014, respectively, compared to $1.4 million and $3.0 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||||||
The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: | ||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Fair market value, beginning of period | $ | 21,399 | $ | 22,356 | ||||||||||||||||
Fair market value, end of period | 20,341 | 21,427 | ||||||||||||||||||
Weighted average discount rate | 8 | % | 8 | % | ||||||||||||||||
Weighted average prepayment speed assumption | 15.1 | 14.5 | ||||||||||||||||||
The gross carrying value and accumulated amortization related to our intangible assets are presented below: | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||
Value | Amortization | Net | Value | Amortization | Net | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Core deposit premium | $ | 44,642 | $ | (33,276 | ) | $ | 11,366 | $ | 44,642 | $ | (31,938 | ) | $ | 12,704 | ||||||
Mortgage servicing rights | 55,361 | (35,582 | ) | 19,779 | 54,441 | (34,362 | ) | 20,079 | ||||||||||||
$ | 100,003 | $ | (68,858 | ) | $ | 31,145 | $ | 99,083 | $ | (66,300 | ) | $ | 32,783 | |||||||
Based on the core deposit premium and mortgage servicing rights held as of June 30, 2014, estimated amortization expense for the remainder of fiscal 2014, the next five succeeding fiscal years and all years thereafter are as follows: | ||||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||
Core | Mortgage | |||||||||||||||||||
Deposit | Servicing | |||||||||||||||||||
Premium | Rights | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2014 (remainder) | $ | 1,337 | $ | 1,976 | $ | 3,313 | ||||||||||||||
2015 | 2,674 | 2,686 | 5,360 | |||||||||||||||||
2016 | 2,674 | 2,064 | 4,738 | |||||||||||||||||
2017 | 2,674 | 1,595 | 4,269 | |||||||||||||||||
2018 | 2,007 | 1,235 | 3,242 | |||||||||||||||||
2019 | — | 932 | 932 | |||||||||||||||||
Thereafter | — | 9,291 | 9,291 | |||||||||||||||||
$ | 11,366 | $ | 19,779 | $ | 31,145 | |||||||||||||||
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 judgment 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 the uncertainty about future events and cash flows. All such factors are interdependent and, therefore, do not change in isolation. Accordingly, our accounting estimates may materially change from period to period due to changing market factors. |
DERIVATIVES
DERIVATIVES | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
DERIVATIVES | ' | |||||||||||||||
DERIVATIVES | ' | |||||||||||||||
9. 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. In 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 locks 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 June 30, 2014, we were a party to interest rate lock and forward sale commitments on $43.4 million and $30.5 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 | Balance Sheet | Fair Value at | Fair Value at | Fair Value at | Fair Value at | |||||||||||
as Hedging Instruments | Location | June 30, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest rate contracts | Other assets / other liabilities | $ | 659 | $ | 425 | $ | 218 | $ | 146 | |||||||
The following table presents the impact of derivative instruments and their location within the consolidated statements of income: | ||||||||||||||||
Derivatives in Cash Flow | Amount of Loss Reclassified | |||||||||||||||
Hedging Relationship | from AOCI into Earnings | |||||||||||||||
(Effective Portion) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | $ | — | ||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | — | |||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | — | |||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | (394 | ) | ||||||||||||||
Amounts recognized in AOCI are net of income taxes. 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) | ||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | Other operating income | $ | 413 | |||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | Other operating income | (901 | ) | |||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | Other operating income | 353 | ||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | Other operating income | (531 | ) | |||||||||||||
SHORTTERM_BORROWINGS_AND_LONGT
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2014 | |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | ' |
SHORT-TERM BORROWINGS AND LONG-TERM DEBT | ' |
10. SHORT-TERM BORROWINGS AND LONG-TERM DEBT | |
At June 30, 2014, our bank maintained a $45.0 million line of credit with the Federal Reserve discount window, of which there were no advances outstanding. As of June 30, 2014, certain commercial and commercial real estate loans totaling $77.0 million have been 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. | |
The bank is a member of the Federal Home Loan Bank of Seattle (the “FHLB”) and maintained a $927.7 million line of credit with the FHLB as of June 30, 2014. Long-term borrowings under this arrangement totaled $5,400 at June 30, 2014, compared to $14,000 at December 31, 2013. Short-term borrowings under this arrangement totaled $29.0 million and $8.0 million at June 30, 2014 and December 31, 2013, respectively. At June 30, 2014 the bank’s pledged assets to the FHLB included investment securities with a fair value of $1.2 million and certain real estate loans totaling $1.4 billion. | |
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. During the deferral period, the respective trusts suspended the declaration and payment of dividends on the trust preferred securities. Also during the deferral period, we may not, among other things and with limited exceptions, pay cash dividends on or repurchase our common stock or make any payment on outstanding debt obligations that rank equally with or junior to the junior subordinated debentures. During the deferral period, we continued to accrue, and reflect in our consolidated financial statements, the deferred interest payments on our junior subordinated debentures. In March 2013, the Company elected to pay all deferred interest on its subordinated debentures and related dividend payments on its trust preferred securities and resume quarterly payments for each outstanding trust. As a result, the deferred accrued interest in the amount of $13.0 million was paid in full. | |
In June 2013, the Company was notified that $10.0 million of the $15.0 million in trust preferred securities of CPB Capital Trust I (the “Trust”) would be auctioned off as part of a larger pooled collateralized debt obligation liquidation. CPF 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 the Trust did not represent a variable interest and therefore the Company is not the primary beneficiary of the Trust. As a result, consolidation of the Trust by the Company was not required. In October 2013, the Company called the remaining $5.0 million in trust preferred securities of the Trust and in April 2014, the remaining $0.5 million in common stock of the Trust were called. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2014 | |
EQUITY | ' |
EQUITY | ' |
11. EQUITY | |
In June 2013, the U.S. 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 stock 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 $828 thousand at March 31, 2013. Accordingly, we recorded a credit to other noninterest expense of $76 thousand during the first quarter of 2013 related to the gain on the purchase of the warrant. After the completion of this transaction, the U.S. 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 Troubled Assets Relief Program. | |
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 of Directors 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”). 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 (until February 18, 2016). | |
To further protect our tax benefits, on January 26, 2011, our Board of Directors 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 (until May 2, 2016). Our shareholders approved the Protective Charter Amendment on April 25, 2014. 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 June 30, 2014, the bank had Statutory Retained Earnings of $119.6 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 on the Company’s outstanding common stock. | |
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. | |
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”). | |
The Tender Offer expired on March 21, 2014 and 3,369,850 shares of our common stock were properly tendered and not withdrawn at or below the purchase price of $20.20 per share (“Purchase Price”). In addition, 167,572 shares were tendered through notice of guaranteed delivery at or below the Purchase Price. Based on these results, we accepted for purchase 3,405,888 shares, at the Purchase Price for a total cost of $68.8 million, excluding fees and expenses related to the Tender Offer. The Tender Offer closed on March 28, 2014. | |
Due to the oversubscription of the Tender Offer, we accepted for purchase on a pro rata basis approximately 96.6% of the shares properly tendered and not properly withdrawn at or below the Purchase Price by each tendering shareholder, except for tenders of odd lots, which were accepted in full, and except for certain conditional tenders automatically regarded as withdrawn pursuant to the terms of the Tender Offer. | |
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 was the owner of 9,463,095 shares (representing 22.5% of the outstanding shares or 44.9% in the aggregate at that time) of our common stock, pursuant to which we agreed to purchase up to $28.1 million of shares of common stock from each of the Lead Investors at the Purchase Price of the Tender Offer (the “Private Repurchases”) (or an aggregate of $56.2 million of shares). Conditions to the Private Repurchases were satisfied and we purchased 1,391,089 shares from each of Carlyle and Anchorage at the Purchase Price for a total cost of $56.2 million, excluding fees and expenses related to the Private Repurchases. The Private Repurchases closed on April 7, 2014, the eleventh business day following the expiration of the Tender Offer. | |
The completion of the Tender Offer and the Private Repurchases resulted in the aggregate repurchase by us of 6,188,066 shares totaling $125 million, or 14.7% of our issued and outstanding shares of our common stock prior to the completion of the Tender Offer and the Private Repurchases. Upon completion of the Tender Offer and Private Repurchases, we had approximately 35.9 million shares outstanding. | |
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. 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 the Tender Offer and Repurchase Agreements with our Lead Investors. | |
On May 20, 2014, our Board of Directors authorized the repurchase and retirement of up to $30.0 million of the Company’s outstanding common stock (the “2014 Repurchase Plan”). Repurchases under the 2014 Repurchase Plan may be made from time to time on the open market or in privately negotiated transactions. In the second quarter of 2014, 181,200 shares of common stock, at a cost of $3.4 million, were repurchased under this program. A total of $26.6 million remained available for repurchase under the 2014 Repurchase Plan at June 30, 2014. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
SHARE-BASED COMPENSATION. | ' | ||||||
SHARE-BASED COMPENSATION | ' | ||||||
12. SHARE-BASED COMPENSATION | |||||||
Restricted Stock Awards and Units | |||||||
The table below presents the activity of restricted stock awards and units for the six months ended June 30, 2014: | |||||||
Weighted Average | |||||||
Grant Date | |||||||
Shares | Fair Value | ||||||
Nonvested at January 1, 2014 | 835,904 | $ | 14.75 | ||||
Changes during the period: | |||||||
Granted | 191,465 | 18.58 | |||||
Vested | (266,730 | ) | 14.85 | ||||
Forfeited | (23,168 | ) | 14.63 | ||||
Nonvested at June 30, 2014 | 737,471 | 15.71 | |||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
The following table presents the components of other comprehensive income for the three and six months ended June 30, 2014 and 2013, by component: | ||||||||||||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||
Net unrealized gains on investment securities: | ||||||||||||||
Net unrealized gains arising during the period | $ | 15,940 | $ | 6,272 | $ | 9,668 | ||||||||
Less: Reclassification adjustment for losses realized in net income | 1,071 | 429 | 642 | |||||||||||
Net unrealized gains on investment securities | 17,011 | 6,701 | 10,310 | |||||||||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 305 | 120 | 185 | |||||||||||
Amortization of net transition obligation | 4 | 2 | 2 | |||||||||||
Amortization of prior service cost | 5 | 2 | 3 | |||||||||||
Defined benefit plans, net | 314 | 124 | 190 | |||||||||||
Other comprehensive income | $ | 17,325 | $ | 6,825 | $ | 10,500 | ||||||||
Three Months Ended June 30, 2013 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (39,577 | ) | $ | (16,477 | ) | $ | (23,100 | ) | |||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 618 | 248 | 370 | |||||||||||
Amortization of net transition obligation | 4 | 2 | 2 | |||||||||||
Amortization of prior service cost | 5 | 2 | 3 | |||||||||||
Defined benefit plans, net | 627 | 252 | 375 | |||||||||||
Other comprehensive loss | $ | (38,950 | ) | $ | (16,225 | ) | $ | (22,725 | ) | |||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||
Net unrealized gains on investment securities: | ||||||||||||||
Net unrealized gains arising during the period | $ | 31,884 | $ | 12,640 | $ | 19,244 | ||||||||
Less: Reclassification adjustment for losses realized in net income | 1,071 | 429 | 642 | |||||||||||
Net unrealized gains on investment securities | 32,955 | 13,069 | 19,886 | |||||||||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 610 | 243 | 367 | |||||||||||
Amortization of net transition obligation | 8 | 4 | 4 | |||||||||||
Amortization of prior service cost | 10 | 4 | 6 | |||||||||||
Defined benefit plans, net | 628 | 251 | 377 | |||||||||||
Other comprehensive income | $ | 33,583 | $ | 13,320 | $ | 20,263 | ||||||||
Six Months Ended June 30, 2013 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (44,400 | ) | $ | (16,477 | ) | $ | (27,923 | ) | |||||
Net unrealized gains on derivatives: | ||||||||||||||
Reclassification adjustment for losses realized in net income | 394 | (10,599 | ) | 10,993 | ||||||||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 1,234 | 248 | 986 | |||||||||||
Amortization of net transition obligation | 8 | 2 | 6 | |||||||||||
Amortization of prior service cost | 10 | 2 | 8 | |||||||||||
Defined benefit plans, net | 1,252 | 252 | 1,000 | |||||||||||
Other comprehensive loss | $ | (42,754 | ) | $ | (26,824 | ) | $ | (15,930 | ) | |||||
The following table presents the changes in each component of AOCI, net of tax, for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||
Defined | Accumulated Other | |||||||||||||
Investment | Benefit | Comprehensive | ||||||||||||
Securities | Derivatives | Plans | Income (Loss) | |||||||||||
(Dollars in thousands) | ||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||
Balance at beginning of period | $ | 451 | $ | — | $ | (6,533 | ) | $ | (6,082 | ) | ||||
Other comprehensive income before reclassifications | 9,668 | — | — | 9,668 | ||||||||||
Amounts reclassified from AOCI | 642 | — | 190 | 832 | ||||||||||
Total other comprehensive income | 10,310 | — | 190 | 10,500 | ||||||||||
Balance at end of period | $ | 10,761 | $ | — | $ | (6,343 | ) | $ | 4,418 | |||||
Three Months Ended June 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 17,917 | $ | — | $ | (11,952 | ) | $ | 5,965 | |||||
Other comprehensive loss before reclassifications | (23,100 | ) | — | — | (23,100 | ) | ||||||||
Amounts reclassified from AOCI | — | — | 375 | 375 | ||||||||||
Total other comprehensive income (loss) | (23,100 | ) | — | 375 | (22,725 | ) | ||||||||
Balance at end of period | $ | (5,183 | ) | $ | — | $ | (11,577 | ) | $ | (16,760 | ) | |||
Six Months Ended June 30, 2014 | ||||||||||||||
Balance at beginning of period | $ | (9,125 | ) | $ | — | $ | (6,720 | ) | $ | (15,845 | ) | |||
Other comprehensive income before reclassifications | 19,244 | — | — | 19,244 | ||||||||||
Amounts reclassified from AOCI | 642 | — | 377 | 1,019 | ||||||||||
Total other comprehensive income | 19,886 | — | 377 | 20,263 | ||||||||||
Balance at end of period | $ | 10,761 | $ | — | $ | (6,343 | ) | $ | 4,418 | |||||
Six Months Ended June 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 22,740 | $ | (10,993 | ) | $ | (12,577 | ) | $ | (830 | ) | |||
Other comprehensive loss before reclassifications | (27,923 | ) | — | — | (27,923 | ) | ||||||||
Amounts reclassified from AOCI | — | 10,993 | 1,000 | 11,993 | ||||||||||
Total other comprehensive income (loss) | (27,923 | ) | 10,993 | 1,000 | (15,930 | ) | ||||||||
Balance at end of period | $ | (5,183 | ) | $ | — | $ | (11,577 | ) | $ | (16,760 | ) | |||
The following table presents the amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the | |||||||||||||
Three Months Ended June 30, | Statement Where Net | |||||||||||||
Details about AOCI Components | 2014 | 2013 | Income is Presented | |||||||||||
(Dollars in thousands) | ||||||||||||||
Sale of investment securities available for sale | $ | (1,071 | ) | $ | — | Investment securities gains | ||||||||
429 | — | Tax benefit | ||||||||||||
$ | (642 | ) | $ | — | Net of tax | |||||||||
Amortization of defined benefit plan items | ||||||||||||||
Net actuarial losses | $ | (305 | ) | $ | (618 | ) | -1 | |||||||
Net transition obligation | (4 | ) | (4 | ) | -1 | |||||||||
Prior service cost | (5 | ) | (5 | ) | -1 | |||||||||
(314 | ) | (627 | ) | Total before tax | ||||||||||
124 | 252 | Tax benefit | ||||||||||||
$ | (190 | ) | $ | (375 | ) | Net of tax | ||||||||
Total reclassifications for the period | $ | (832 | ) | $ | (375 | ) | Net of tax | |||||||
Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Sale of investment securities available for sale | $ | (1,071 | ) | $ | — | Investment securities gains | ||||||||
429 | — | Tax benefit | ||||||||||||
$ | (642 | ) | $ | — | Net of tax | |||||||||
Unrealized losses on derivatives | $ | — | $ | (394 | ) | Interest income | ||||||||
— | (10,599 | ) | Tax expense | |||||||||||
$ | — | $ | (10,993 | ) | Net of tax | |||||||||
Amortization of defined benefit plan items | ||||||||||||||
Net actuarial losses | $ | (610 | ) | $ | (1,234 | ) | -1 | |||||||
Net transition obligation | (8 | ) | (8 | ) | -1 | |||||||||
Prior service cost | (10 | ) | (10 | ) | -1 | |||||||||
(628 | ) | (1,252 | ) | Total before tax | ||||||||||
251 | 252 | Tax benefit | ||||||||||||
$ | (377 | ) | $ | (1,000 | ) | Net of tax | ||||||||
Total reclassifications for the period | $ | (1,019 | ) | $ | (11,993 | ) | 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). |
PENSION_AND_SUPPLEMENTAL_EXECU
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ' | |||||||||||||||
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ' | |||||||||||||||
14. PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ||||||||||||||||
Central Pacific Bank has a defined benefit retirement plan (the “Pension Plan”) which covers certain eligible employees. The plan was curtailed effective December 31, 2002, and accordingly, plan benefits were fixed as of that date. The following table sets forth the components of net periodic benefit cost for the Pension Plan: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest cost | $ | 366 | $ | 348 | $ | 732 | $ | 696 | ||||||||
Expected return on assets | (524 | ) | (470 | ) | (1,048 | ) | (940 | ) | ||||||||
Amortization of net actuarial losses | 304 | 599 | 608 | 1,198 | ||||||||||||
Net periodic cost | $ | 146 | $ | 477 | $ | 292 | $ | 954 | ||||||||
Our bank also established Supplemental Executive Retirement Plans (“SERPs”), which provide certain officers of our bank with supplemental retirement benefits. The following table sets forth the components of net periodic benefit cost for the SERPs: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest cost | $ | 113 | $ | 103 | $ | 226 | $ | 206 | ||||||||
Amortization of net transition obligation | 4 | 4 | 8 | 8 | ||||||||||||
Amortization of prior service cost | 5 | 5 | 10 | 10 | ||||||||||||
Amortization of net actuarial losses | 1 | 18 | 2 | 36 | ||||||||||||
Net periodic cost | $ | 123 | $ | 130 | $ | 246 | $ | 260 | ||||||||
INCOME_AND_FRANCHISE_TAXES
INCOME AND FRANCHISE TAXES | 6 Months Ended |
Jun. 30, 2014 | |
INCOME AND FRANCHISE TAXES | ' |
INCOME AND FRANCHISE TAXES | ' |
15. INCOME AND FRANCHISE TAXES | |
In assessing the need for a valuation allowance on our deferred tax assets (“DTA”), management considers whether it is more likely than not that some portion or all of the DTA will not be realized. The ultimate realization of DTA 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. | |
The Company recorded income tax expense of $3.9 million and $9.4 million in the second quarter and first half of 2014, respectively. As of June 30, 2014, the remaining valuation allowance on our net DTA totaled $2.9 million. Net of this valuation allowance, as of June 30, 2014, the Company’s net DTA totaled $114.6 million, compared to $137.2 million as of December 31, 2013, and is included in other assets on our consolidated balance sheets. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
16. EARNINGS PER SHARE | ||||||||||||||
The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Net income | $ | 9,150 | $ | 14,267 | $ | 18,958 | $ | 151,576 | ||||||
Weighted average shares outstanding - basic | 36,117 | 41,957 | 39,000 | 41,886 | ||||||||||
Dilutive effect of employee stock options and awards | 539 | 338 | 405 | 318 | ||||||||||
Dilutive effect of deferred salary restricted stock units | — | — | — | 3 | ||||||||||
Dilutive effect of Treasury warrants | — | 25 | — | 28 | ||||||||||
Weighted average shares outstanding - diluted | 36,656 | 42,320 | 39,405 | 42,235 | ||||||||||
Basic earnings per share | $ | 0.25 | $ | 0.34 | $ | 0.49 | $ | 3.62 | ||||||
Diluted earnings per share | $ | 0.25 | $ | 0.34 | $ | 0.48 | $ | 3.59 | ||||||
A total of 22,864 potentially dilutive securities have been excluded from the dilutive share calculation for the three and six months ended June 30, 2014, as their effect was antidilutive, compared to 26,256 for the three and six months ended June 30, 2013. |
FAIR_VALUE_OF_FINANCIAL_ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | ' | ||||||||||||||||
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES | ' | ||||||||||||||||
17. FAIR VALUE OF FINANCIAL 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, 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) | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | $ | 83,539 | $ | 83,539 | $ | 83,539 | $ | — | $ | — | |||||||
Interest-bearing deposits in other banks | 3,480 | 3,480 | 3,480 | — | — | ||||||||||||
Investment securities | 1,474,141 | 1,468,303 | 863 | 1,454,716 | 12,724 | ||||||||||||
Loans held for sale | 8,464 | 8,464 | — | — | 8,464 | ||||||||||||
Net loans and leases | 2,710,584 | 2,576,764 | — | 68,293 | 2,508,471 | ||||||||||||
Accrued interest receivable | 13,253 | 13,253 | 13,253 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | 962,646 | 962,646 | 962,646 | — | — | ||||||||||||
Interest-bearing demand and savings deposits | 1,978,029 | 1,978,029 | 1,978,029 | — | — | ||||||||||||
Time deposits | 1,061,903 | 1,063,855 | — | — | 1,063,855 | ||||||||||||
Short-term debt | 29,000 | 29,000 | — | 29,000 | — | ||||||||||||
Long-term debt | 92,790 | 40,085 | — | 40,085 | — | ||||||||||||
Accrued interest payable (included in other liabilities) | 984 | 984 | 984 | — | — | ||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||
Commitments to extend credit | 663,684 | 3,318 | — | 3,318 | — | ||||||||||||
Standby letters of credit and financial guarantees written | 19,265 | 144 | — | 144 | — | ||||||||||||
Interest rate options | 43,367 | 634 | — | 634 | — | ||||||||||||
Forward interest rate contracts | 30,540 | (193 | ) | — | (193 | ) | — | ||||||||||
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 | 69 | — | 69 | — | ||||||||||||
Forward interest rate contracts | 24,244 | 210 | — | 210 | — | ||||||||||||
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 three and six months ended June 30, 2014. | |||||||||||||||||
The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
Fair Value at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Debt securities: | |||||||||||||||||
States and political subdivisions | $ | 188,943 | $ | — | $ | 176,219 | $ | 12,724 | |||||||||
Corporate securities | 86,838 | — | 86,838 | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government sponsored entities | 782,049 | — | 782,049 | — | |||||||||||||
Non-agency collateralized mortgage obligations | 168,242 | — | 168,242 | — | |||||||||||||
Other | 863 | 863 | — | — | |||||||||||||
Derivatives - Interest rate contracts | 441 | — | 441 | — | |||||||||||||
Total | $ | 1,227,376 | $ | 863 | $ | 1,213,789 | $ | 12,724 | |||||||||
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 | |||||||||
For the six months ended June 30, 2014 and 2013, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: | |||||||||||||||||
Available for Sale | |||||||||||||||||
States and Political | |||||||||||||||||
Subdivisions Debt | |||||||||||||||||
Securities | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance at December 31, 2013 | $ | 10,518 | |||||||||||||||
Principal payments received | (139 | ) | |||||||||||||||
Unrealized net gain included in other comprehensive income | 76 | ||||||||||||||||
Purchases | 2,269 | ||||||||||||||||
Balance at June 30, 2014 | $ | 12,724 | |||||||||||||||
Balance at December 31, 2012 | $ | 12,826 | |||||||||||||||
Principal payments received | (2,677 | ) | |||||||||||||||
Unrealized net loss included in other comprehensive income | (331 | ) | |||||||||||||||
Purchases | 74 | ||||||||||||||||
Balance at June 30, 2013 | $ | 9,892 | |||||||||||||||
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 $12.7 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 June 30, 2014, the weighted average discount rate utilized was 3.97%, 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 at June 30, 2014 and December 31, 2013, 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 | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Impaired loans (1) | $ | 68,293 | $ | — | $ | 68,293 | $ | — | |||||||||
Other real estate (2) | 5,247 | — | 5,247 | — | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans (1) | $ | 64,705 | $ | — | $ | 64,705 | $ | — | |||||||||
Other real estate (2) | 5,163 | — | 5,163 | — | |||||||||||||
(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 | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
18. SEGMENT INFORMATION | ||||||||||||||
We have the following three reportable segments: Banking Operations, Treasury and All Others. These 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, 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 consists of all 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 the Company’s accounting policies that are described in Note 1 to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC. 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 and assets are provided in the following table for the periods indicated. | ||||||||||||||
Banking | ||||||||||||||
Operations | Treasury | All Others | Total | |||||||||||
(Dollars in thousands) | ||||||||||||||
Three Months Ended June 30, 2014: | ||||||||||||||
Net interest income | $ | 27,356 | $ | 8,550 | $ | — | $ | 35,906 | ||||||
Intersegment net interest income (expense) | 6,149 | (7,107 | ) | 958 | — | |||||||||
Provision for loan and lease losses | (1,995 | ) | — | — | (1,995 | ) | ||||||||
Other operating income | 6,750 | 1,092 | 4,162 | 12,004 | ||||||||||
Other operating expense | (14,372 | ) | (538 | ) | (17,978 | ) | (32,888 | ) | ||||||
Administrative and overhead expense allocation | (13,734 | ) | (267 | ) | 14,001 | — | ||||||||
Income taxes | (3,076 | ) | (490 | ) | (311 | ) | (3,877 | ) | ||||||
Net income | $ | 7,078 | $ | 1,240 | $ | 832 | $ | 9,150 | ||||||
Three Months Ended June 30, 2013: | ||||||||||||||
Net interest income | $ | 25,746 | $ | 7,427 | $ | — | $ | 33,173 | ||||||
Intersegment net interest income (expense) | 3,948 | (7,078 | ) | 3,130 | — | |||||||||
Credit for loan and lease losses | 227 | — | — | 227 | ||||||||||
Other operating income | 5,802 | 396 | 11,614 | 17,812 | ||||||||||
Other operating expense | (15,627 | ) | (411 | ) | (18,962 | ) | (35,000 | ) | ||||||
Administrative and overhead expense allocation | (9,561 | ) | (250 | ) | 9,811 | — | ||||||||
Income taxes | (994 | ) | 176 | (1,127 | ) | (1,945 | ) | |||||||
Net income | $ | 9,541 | $ | 260 | $ | 4,466 | $ | 14,267 | ||||||
Six months ended June 30, 2014: | ||||||||||||||
Net interest income | $ | 53,543 | $ | 18,159 | $ | — | $ | 71,702 | ||||||
Intersegment net interest income (expense) | 12,156 | (13,719 | ) | 1,563 | — | |||||||||
Provision for loan and lease losses | (679 | ) | — | — | (679 | ) | ||||||||
Other operating income | 12,399 | 1,837 | 7,912 | 22,148 | ||||||||||
Other operating expense | (29,690 | ) | (1,089 | ) | (34,039 | ) | (64,818 | ) | ||||||
Administrative and overhead expense allocation | (27,538 | ) | (539 | ) | 28,077 | — | ||||||||
Income taxes | (6,690 | ) | (1,541 | ) | (1,164 | ) | (9,395 | ) | ||||||
Net income | $ | 13,501 | $ | 3,108 | $ | 2,349 | $ | 18,958 | ||||||
Six months ended June 30, 2013: | ||||||||||||||
Net interest income | $ | 49,792 | $ | 14,050 | $ | — | $ | 63,842 | ||||||
Intersegment net interest income (expense) | 7,800 | (13,389 | ) | 5,589 | — | |||||||||
Credit for loan and lease losses | 6,788 | — | — | 6,788 | ||||||||||
Other operating income | 13,741 | 999 | 16,102 | 30,842 | ||||||||||
Other operating expense | (29,746 | ) | (861 | ) | (37,146 | ) | (67,753 | ) | ||||||
Administrative and overhead expense allocation | (25,835 | ) | (516 | ) | 26,351 | — | ||||||||
Income taxes | 119,718 | 303 | (2,164 | ) | 117,857 | |||||||||
Net income | $ | 142,258 | $ | 586 | $ | 8,732 | $ | 151,576 | ||||||
At June 30, 2014: | ||||||||||||||
Investment securities | $ | — | $ | 1,474,141 | $ | — | $ | 1,474,141 | ||||||
Loans and leases (including loans held for sale) | 2,802,647 | — | — | 2,802,647 | ||||||||||
Other | 118,480 | 233,438 | 99,060 | 450,978 | ||||||||||
Total assets | $ | 2,921,127 | $ | 1,707,579 | $ | 99,060 | $ | 4,727,766 | ||||||
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 | 117,655 | 256,807 | 63,719 | 438,181 | ||||||||||
Total assets | $ | 2,760,626 | $ | 1,916,853 | $ | 63,719 | $ | 4,741,198 | ||||||
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 6 Months Ended |
Jun. 30, 2014 | |
LEGAL PROCEEDINGS | ' |
LEGAL PROCEEDINGS | ' |
19. LEGAL PROCEEDINGS | |
We are involved in legal actions arising in the ordinary course of business. Management, after consultation with our legal counsel, believes the ultimate disposition of those matters will not have a material adverse effect on our consolidated financial statements. |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||||||||
Summary of available for sale and held to maturity investment securities | ' | |||||||||||||||||||
Gross | Gross | Estimated | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
At June 30, 2014: | ||||||||||||||||||||
Held to Maturity: | ||||||||||||||||||||
Mortgage-backed securities - U.S. Government sponsored entities | $ | 247,206 | $ | 68 | $ | (5,906 | ) | $ | 241,368 | |||||||||||
Available for Sale: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 192,139 | $ | 1,452 | $ | (4,648 | ) | $ | 188,943 | |||||||||||
Corporate securities | 84,751 | 2,116 | (29 | ) | 86,838 | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 775,778 | 10,898 | (4,627 | ) | 782,049 | |||||||||||||||
Non-agency collateralized mortgage obligations | 165,991 | 3,563 | (1,312 | ) | 168,242 | |||||||||||||||
Other | 738 | 125 | — | 863 | ||||||||||||||||
Total | $ | 1,219,397 | $ | 18,154 | $ | (10,616 | ) | $ | 1,226,935 | |||||||||||
At December 31, 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 | |||||||||||
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity | ' | |||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Amortized | Estimated Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Held to Maturity | ||||||||||||||||||||
Mortage-backed securities | $ | 247,206 | $ | 241,368 | ||||||||||||||||
Available for Sale | ||||||||||||||||||||
Due in one year or less | $ | 3,415 | $ | 3,417 | ||||||||||||||||
Due after one year through five years | 49,944 | 51,498 | ||||||||||||||||||
Due after five years through ten years | 102,046 | 102,191 | ||||||||||||||||||
Due after ten years | 121,485 | 118,675 | ||||||||||||||||||
Mortage-backed securities | 941,769 | 950,291 | ||||||||||||||||||
Other | 738 | 863 | ||||||||||||||||||
Total | $ | 1,219,397 | $ | 1,226,935 | ||||||||||||||||
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 June 30, 2014: | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
States and political subdivisions | $ | 8,433 | $ | (28 | ) | $ | 99,134 | $ | (4,620 | ) | $ | 107,567 | $ | (4,648 | ) | |||||
Corporate securities | — | — | 8,481 | (29 | ) | 8,481 | (29 | ) | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
U.S. Government sponsored entities | 54,352 | (451 | ) | 477,248 | (10,082 | ) | 531,600 | (10,533 | ) | |||||||||||
Non-agency collateralized mortgage obligations | 4,939 | (29 | ) | 57,170 | (1,283 | ) | 62,109 | (1,312 | ) | |||||||||||
Total temporarily impaired securities | $ | 67,724 | $ | (508 | ) | $ | 642,033 | $ | (16,014 | ) | $ | 709,757 | $ | (16,522 | ) | |||||
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 | ) | |||||
LOANS_AND_LEASES_Tables
LOANS AND LEASES (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
LOANS AND LEASES | ' | |||||||||||||||||||||||||
Schedule of loans and leases, excluding loans held for sale | ' | |||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 432,029 | $ | 398,365 | ||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 100,357 | 75,927 | ||||||||||||||||||||||||
Mortgage - residential | 1,224,948 | 1,135,155 | ||||||||||||||||||||||||
Mortgage - commercial | 698,688 | 703,800 | ||||||||||||||||||||||||
Consumer | 333,609 | 311,670 | ||||||||||||||||||||||||
Leases | 4,087 | 6,241 | ||||||||||||||||||||||||
2,793,718 | 2,631,158 | |||||||||||||||||||||||||
Net deferred costs (income) | 465 | (557 | ) | |||||||||||||||||||||||
Total loans and leases | $ | 2,794,183 | $ | 2,630,601 | ||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||||||||
Ending balance attributable to loans: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,173 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3,173 | ||||||||||||
Collectively evaluated for impairment | 9,082 | 15,525 | 19,198 | 25,885 | 6,723 | 13 | 76,426 | |||||||||||||||||||
12,255 | 15,525 | 19,198 | 25,885 | 6,723 | 13 | 79,599 | ||||||||||||||||||||
Unallocated | 4,000 | |||||||||||||||||||||||||
Total ending balance | $ | 12,255 | $ | 15,525 | $ | 19,198 | $ | 25,885 | $ | 6,723 | $ | 13 | $ | 83,599 | ||||||||||||
Loans and leases: | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 17,041 | $ | 5,185 | $ | 32,064 | $ | 17,176 | $ | — | $ | — | $ | 71,466 | ||||||||||||
Collectively evaluated for impairment | 414,988 | 95,172 | 1,192,884 | 681,512 | 333,609 | 4,087 | 2,722,252 | |||||||||||||||||||
432,029 | 100,357 | 1,224,948 | 698,688 | 333,609 | 4,087 | 2,793,718 | ||||||||||||||||||||
Net deferred costs (income) | 715 | (479 | ) | 1,916 | (956 | ) | (731 | ) | — | 465 | ||||||||||||||||
Total ending balance | $ | 432,744 | $ | 99,878 | $ | 1,226,864 | $ | 697,732 | $ | 332,878 | $ | 4,087 | $ | 2,794,183 | ||||||||||||
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 | 25,272 | 29,947 | 6,576 | 55 | 77,471 | |||||||||||||||||||
13,196 | 2,774 | 25,272 | 29,947 | 6,576 | 55 | 77,820 | ||||||||||||||||||||
Unallocated | 6,000 | |||||||||||||||||||||||||
Total ending balance | $ | 13,196 | $ | 2,774 | $ | 25,272 | $ | 29,947 | $ | 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 | 1,098,376 | 687,529 | 311,670 | 6,241 | 2,566,104 | |||||||||||||||||||
398,365 | 75,927 | 1,135,155 | 703,800 | 311,670 | 6,241 | 2,631,158 | ||||||||||||||||||||
Net deferred costs (income) | 351 | (311 | ) | 1,418 | (1,033 | ) | (982 | ) | — | (557 | ) | |||||||||||||||
Total ending balance | $ | 398,716 | $ | 75,616 | $ | 1,136,573 | $ | 702,767 | $ | 310,688 | $ | 6,241 | $ | 2,630,601 | ||||||||||||
Schedule of impaired loans, by class | ' | |||||||||||||||||||||||||
Unpaid Principal | Recorded | Allowance | ||||||||||||||||||||||||
Balance | Investment | Allocated | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Impaired loans with no related allowance recorded: | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 3,342 | $ | 3,342 | $ | — | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 11,572 | 5,185 | — | |||||||||||||||||||||||
Mortgage - residential | 35,573 | 32,064 | — | |||||||||||||||||||||||
Mortgage - commercial | 24,299 | 17,176 | — | |||||||||||||||||||||||
Total impaired loans with no related allowance recorded | 74,786 | 57,767 | — | |||||||||||||||||||||||
Impaired loans with an allowance recorded: | ||||||||||||||||||||||||||
Commercial, financial & agricultural | 15,167 | 13,699 | 3,173 | |||||||||||||||||||||||
Total impaired loans with an allowance recorded | 15,167 | 13,699 | 3,173 | |||||||||||||||||||||||
Total | $ | 89,953 | $ | 71,466 | $ | 3,173 | ||||||||||||||||||||
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 | ||||||||||||||||||||
Schedule of average recorded investment and interest income recognized on impaired loans, by class | ' | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | Investment | Recognized | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 17,300 | $ | 6 | $ | 4,403 | $ | 6 | $ | 12,858 | $ | 11 | $ | 4,225 | $ | 12 | ||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 5,225 | 44 | 26,892 | 291 | 6,024 | 76 | 36,464 | 467 | ||||||||||||||||||
Mortgage - residential | 33,419 | 274 | 37,588 | 197 | 34,913 | 437 | 39,992 | 328 | ||||||||||||||||||
Mortgage - commercial | 16,201 | 76 | 19,302 | 92 | 16,123 | 115 | 18,404 | 182 | ||||||||||||||||||
Leases | — | — | 34 | — | — | — | 61 | — | ||||||||||||||||||
Total | $ | 72,145 | $ | 400 | $ | 88,219 | $ | 586 | $ | 69,918 | $ | 639 | $ | 99,146 | $ | 989 | ||||||||||
Schedule of aging of the recorded investment in past due loans and leases, by class | ' | |||||||||||||||||||||||||
Accruing | Accruing | Accruing Loans | Nonaccrual | Total | Loans and | Total | ||||||||||||||||||||
Loans 30 - 59 | Loans 60 - 89 | Greater Than 90 | Loans | Past Due and | Leases Not | |||||||||||||||||||||
Days Past Due | Days Past Due | Days Past Due | Nonaccrual | Past Due | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 95 | $ | 114 | $ | — | $ | 16,657 | $ | 16,866 | $ | 415,878 | $ | 432,744 | ||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | — | — | — | 373 | 373 | 99,505 | 99,878 | |||||||||||||||||||
Mortgage - residential | 136 | 45 | 99 | 13,608 | 13,888 | 1,212,976 | 1,226,864 | |||||||||||||||||||
Mortgage - commercial | — | — | — | 6,236 | 6,236 | 691,496 | 697,732 | |||||||||||||||||||
Consumer | 964 | 334 | 20 | — | 1,318 | 331,560 | 332,878 | |||||||||||||||||||
Leases | — | — | — | — | — | 4,087 | 4,087 | |||||||||||||||||||
Total | $ | 1,195 | $ | 493 | $ | 119 | $ | 36,874 | $ | 38,681 | $ | 2,755,502 | $ | 2,794,183 | ||||||||||||
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 | 1,110,519 | 1,136,573 | |||||||||||||||||||
Mortgage - commercial | 544 | — | — | 13,769 | 14,313 | 688,454 | 702,767 | |||||||||||||||||||
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 | ||||||||||||
Schedule of information related to loans modifications in a TDR, by class | ' | |||||||||||||||||||||||||
Number | Recorded | Increase | ||||||||||||||||||||||||
of | Investment (as | in the | ||||||||||||||||||||||||
Contracts | of Period End) | Allowance | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 1 | $ | 189 | $ | — | |||||||||||||||||||||
Mortgage - residential | 3 | 1,626 | — | |||||||||||||||||||||||
Total | 4 | $ | 1,815 | $ | — | |||||||||||||||||||||
Six Months Ended June 20, 2014 | ||||||||||||||||||||||||||
Real estate mortgage - residential | 9 | $ | 600 | $ | — | |||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 587 | $ | — | |||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 1 | 189 | — | |||||||||||||||||||||||
Mortgage - residential | 3 | 1,626 | — | |||||||||||||||||||||||
Total | 5 | $ | 2,402 | $ | — | |||||||||||||||||||||
Schedule of loans modified as a TDR within the previous twelve months that subsequently defaulted, by class | ' | |||||||||||||||||||||||||
Three and Six Months Ended June 30, | ||||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||
Number of Contracts | Recorded Investment | |||||||||||||||||||||||||
(as of Period End) | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial, financial & agricultural | 1 | $ | 132 | |||||||||||||||||||||||
Schedule of recorded investment in the loans and leases, by class and credit indicator | ' | |||||||||||||||||||||||||
Pass | Special | Substandard | Subtotal | Net Deferred | Total | |||||||||||||||||||||
Mention | Costs | |||||||||||||||||||||||||
(Income) | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 402,119 | $ | 11,344 | $ | 18,566 | $ | 432,029 | $ | 715 | $ | 432,744 | ||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 96,231 | — | 4,126 | 100,357 | (479 | ) | 99,878 | |||||||||||||||||||
Mortgage - residential | 1,210,715 | — | 14,233 | 1,224,948 | 1,916 | 1,226,864 | ||||||||||||||||||||
Mortgage - commercial | 653,898 | 9,285 | 35,505 | 698,688 | (956 | ) | 697,732 | |||||||||||||||||||
Consumer | 333,589 | — | 20 | 333,609 | (731 | ) | 332,878 | |||||||||||||||||||
Leases | 4,087 | — | — | 4,087 | — | 4,087 | ||||||||||||||||||||
Total | $ | 2,700,639 | $ | 20,629 | $ | 72,450 | $ | 2,793,718 | $ | 465 | $ | 2,794,183 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Commercial, financial & agricultural | $ | 371,285 | $ | 21,511 | $ | 5,569 | $ | 398,365 | $ | 351 | $ | 398,716 | ||||||||||||||
Real estate: | ||||||||||||||||||||||||||
Construction | 67,435 | 4,477 | 4,015 | 75,927 | (311 | ) | 75,616 | |||||||||||||||||||
Mortgage - residential | 1,113,363 | 361 | 21,431 | 1,135,155 | 1,418 | 1,136,573 | ||||||||||||||||||||
Mortgage - commercial | 651,761 | 20,690 | 31,349 | 703,800 | (1,033 | ) | 702,767 | |||||||||||||||||||
Consumer | 311,670 | — | — | 311,670 | (982 | ) | 310,688 | |||||||||||||||||||
Leases | 6,241 | — | — | 6,241 | — | 6,241 | ||||||||||||||||||||
Total | $ | 2,521,755 | $ | 47,039 | $ | 62,364 | $ | 2,631,158 | $ | (557 | ) | $ | 2,630,601 | |||||||||||||
ALLOWANCE_FOR_LOAN_AND_LEASE_L1
ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Beginning balance | $ | 12,786 | $ | 14,940 | $ | 17,812 | $ | 25,925 | $ | 5,687 | $ | 12 | $ | 6,000 | $ | 83,162 | ||||||||||
Provision (credit) for loan and lease losses | 405 | 243 | 959 | 988 | 1,402 | (2 | ) | (2,000 | ) | 1,995 | ||||||||||||||||
13,191 | 15,183 | 18,771 | 26,913 | 7,089 | 10 | 4,000 | 85,157 | |||||||||||||||||||
Charge-offs | 1,482 | — | 102 | 1,041 | 671 | — | — | 3,296 | ||||||||||||||||||
Recoveries | 546 | 342 | 529 | 13 | 305 | 3 | — | 1,738 | ||||||||||||||||||
Net charge-offs (recoveries) | 936 | (342 | ) | (427 | ) | 1,028 | 366 | (3 | ) | — | 1,558 | |||||||||||||||
Ending balance | $ | 12,255 | $ | 15,525 | $ | 19,198 | $ | 25,885 | $ | 6,723 | $ | 13 | $ | 4,000 | $ | 83,599 | ||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Beginning balance | $ | 8,641 | $ | 3,946 | $ | 27,964 | $ | 37,316 | $ | 2,864 | $ | 75 | $ | 6,000 | $ | 86,806 | ||||||||||
Provision (credit) for loan and lease losses | 2,439 | 1,044 | (4,504 | ) | (268 | ) | 1,069 | (7 | ) | — | (227 | ) | ||||||||||||||
11,080 | 4,990 | 23,460 | 37,048 | 3,933 | 68 | 6,000 | 86,579 | |||||||||||||||||||
Charge-offs | 1,597 | 277 | 380 | — | 242 | — | — | 2,496 | ||||||||||||||||||
Recoveries | 170 | 1,747 | 243 | 703 | 157 | 2 | — | 3,022 | ||||||||||||||||||
Net charge-offs (recoveries) | 1,427 | (1,470 | ) | 137 | (703 | ) | 85 | (2 | ) | — | (526 | ) | ||||||||||||||
Ending balance | $ | 9,653 | $ | 6,460 | $ | 23,323 | $ | 37,751 | $ | 3,848 | $ | 70 | $ | 6,000 | $ | 87,105 | ||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Beginning balance | $ | 13,196 | $ | 2,774 | $ | 25,272 | $ | 29,947 | $ | 6,576 | $ | 55 | $ | 6,000 | $ | 83,820 | ||||||||||
Provision (credit) for loan and lease losses | (538 | ) | 12,007 | (6,558 | ) | (3,047 | ) | 854 | (39 | ) | (2,000 | ) | 679 | |||||||||||||
12,658 | 14,781 | 18,714 | 26,900 | 7,430 | 16 | 4,000 | 84,499 | |||||||||||||||||||
Charge-offs | 1,555 | — | 139 | 1,041 | 1,251 | 8 | — | 3,994 | ||||||||||||||||||
Recoveries | 1,152 | 744 | 623 | 26 | 544 | 5 | — | 3,094 | ||||||||||||||||||
Net charge-offs (recoveries) | 403 | (744 | ) | (484 | ) | 1,015 | 707 | 3 | — | 900 | ||||||||||||||||
Ending balance | $ | 12,255 | $ | 15,525 | $ | 19,198 | $ | 25,885 | $ | 6,723 | $ | 13 | $ | 4,000 | $ | 83,599 | ||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Beginning balance | $ | 4,987 | $ | 4,510 | $ | 27,836 | $ | 50,574 | $ | 2,421 | $ | 85 | $ | 6,000 | $ | 96,413 | ||||||||||
Provision (credit) for loan and lease losses | 5,845 | 73 | (4,193 | ) | (10,106 | ) | 1,611 | (18 | ) | — | (6,788 | ) | ||||||||||||||
10,832 | 4,583 | 23,643 | 40,468 | 4,032 | 67 | 6,000 | 89,625 | |||||||||||||||||||
Charge-offs | 1,841 | 355 | 794 | 3,674 | 557 | — | — | 7,221 | ||||||||||||||||||
Recoveries | 662 | 2,232 | 474 | 957 | 373 | 3 | — | 4,701 | ||||||||||||||||||
Net charge-offs (recoveries) | 1,179 | (1,877 | ) | 320 | 2,717 | 184 | (3 | ) | — | 2,520 | ||||||||||||||||
Ending balance | $ | 9,653 | $ | 6,460 | $ | 23,323 | $ | 37,751 | $ | 3,848 | $ | 70 | $ | 6,000 | $ | 87,105 |
OTHER_INTANGIBLE_ASSETS_Tables
OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||
Schedule of changes in other intangible assets | ' | |||||||||||||||||||
Core | Mortgage | |||||||||||||||||||
Deposit | Servicing | |||||||||||||||||||
Premium | Rights | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 12,704 | $ | 20,079 | $ | 32,783 | ||||||||||||||
Additions | — | 920 | 920 | |||||||||||||||||
Amortization | (1,338 | ) | (1,220 | ) | (2,558 | ) | ||||||||||||||
Balance, end of period | $ | 11,366 | $ | 19,779 | $ | 31,145 | ||||||||||||||
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights | ' | |||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Fair market value, beginning of period | $ | 21,399 | $ | 22,356 | ||||||||||||||||
Fair market value, end of period | 20,341 | 21,427 | ||||||||||||||||||
Weighted average discount rate | 8 | % | 8 | % | ||||||||||||||||
Weighted average prepayment speed assumption | 15.1 | 14.5 | ||||||||||||||||||
Schedule of gross carrying value and accumulated amortization related to intangible assets | ' | |||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||||||
Value | Amortization | Net | Value | Amortization | Net | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Core deposit premium | $ | 44,642 | $ | (33,276 | ) | $ | 11,366 | $ | 44,642 | $ | (31,938 | ) | $ | 12,704 | ||||||
Mortgage servicing rights | 55,361 | (35,582 | ) | 19,779 | 54,441 | (34,362 | ) | 20,079 | ||||||||||||
$ | 100,003 | $ | (68,858 | ) | $ | 31,145 | $ | 99,083 | $ | (66,300 | ) | $ | 32,783 | |||||||
Schedule of estimated amortization expense | ' | |||||||||||||||||||
Estimated Amortization Expense | ||||||||||||||||||||
Core | Mortgage | |||||||||||||||||||
Deposit | Servicing | |||||||||||||||||||
Premium | Rights | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2014 (remainder) | $ | 1,337 | $ | 1,976 | $ | 3,313 | ||||||||||||||
2015 | 2,674 | 2,686 | 5,360 | |||||||||||||||||
2016 | 2,674 | 2,064 | 4,738 | |||||||||||||||||
2017 | 2,674 | 1,595 | 4,269 | |||||||||||||||||
2018 | 2,007 | 1,235 | 3,242 | |||||||||||||||||
2019 | — | 932 | 932 | |||||||||||||||||
Thereafter | — | 9,291 | 9,291 | |||||||||||||||||
$ | 11,366 | $ | 19,779 | $ | 31,145 |
DERIVATIVES_Tables
DERIVATIVES (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
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 | Balance Sheet | Fair Value at | Fair Value at | Fair Value at | Fair Value at | |||||||||||
as Hedging Instruments | Location | June 30, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest rate contracts | Other assets / other liabilities | $ | 659 | $ | 425 | $ | 218 | $ | 146 | |||||||
Schedule of the impact of derivative instruments and their location within the consolidated statements of income | ' | |||||||||||||||
Derivatives in Cash Flow | Amount of Loss Reclassified | |||||||||||||||
Hedging Relationship | from AOCI into Earnings | |||||||||||||||
(Effective Portion) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | $ | — | ||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | — | |||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | — | |||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | (394 | ) | ||||||||||||||
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) | ||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | Other operating income | $ | 413 | |||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | Other operating income | (901 | ) | |||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||
Interest rate contracts | Other operating income | 353 | ||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||
Interest rate contracts | Other operating income | (531 | ) | |||||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
SHARE-BASED COMPENSATION. | ' | ||||||
Schedule of activity of restricted stock awards and units | ' | ||||||
Weighted Average | |||||||
Grant Date | |||||||
Shares | Fair Value | ||||||
Nonvested at January 1, 2014 | 835,904 | $ | 14.75 | ||||
Changes during the period: | |||||||
Granted | 191,465 | 18.58 | |||||
Vested | (266,730 | ) | 14.85 | ||||
Forfeited | (23,168 | ) | 14.63 | ||||
Nonvested at June 30, 2014 | 737,471 | 15.71 | |||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
Schedule of components of other comprehensive income | ' | |||||||||||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||
Net unrealized gains on investment securities: | ||||||||||||||
Net unrealized gains arising during the period | $ | 15,940 | $ | 6,272 | $ | 9,668 | ||||||||
Less: Reclassification adjustment for losses realized in net income | 1,071 | 429 | 642 | |||||||||||
Net unrealized gains on investment securities | 17,011 | 6,701 | 10,310 | |||||||||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 305 | 120 | 185 | |||||||||||
Amortization of net transition obligation | 4 | 2 | 2 | |||||||||||
Amortization of prior service cost | 5 | 2 | 3 | |||||||||||
Defined benefit plans, net | 314 | 124 | 190 | |||||||||||
Other comprehensive income | $ | 17,325 | $ | 6,825 | $ | 10,500 | ||||||||
Three Months Ended June 30, 2013 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (39,577 | ) | $ | (16,477 | ) | $ | (23,100 | ) | |||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 618 | 248 | 370 | |||||||||||
Amortization of net transition obligation | 4 | 2 | 2 | |||||||||||
Amortization of prior service cost | 5 | 2 | 3 | |||||||||||
Defined benefit plans, net | 627 | 252 | 375 | |||||||||||
Other comprehensive loss | $ | (38,950 | ) | $ | (16,225 | ) | $ | (22,725 | ) | |||||
Before Tax | Tax Effect | Net of Tax | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||
Net unrealized gains on investment securities: | ||||||||||||||
Net unrealized gains arising during the period | $ | 31,884 | $ | 12,640 | $ | 19,244 | ||||||||
Less: Reclassification adjustment for losses realized in net income | 1,071 | 429 | 642 | |||||||||||
Net unrealized gains on investment securities | 32,955 | 13,069 | 19,886 | |||||||||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 610 | 243 | 367 | |||||||||||
Amortization of net transition obligation | 8 | 4 | 4 | |||||||||||
Amortization of prior service cost | 10 | 4 | 6 | |||||||||||
Defined benefit plans, net | 628 | 251 | 377 | |||||||||||
Other comprehensive income | $ | 33,583 | $ | 13,320 | $ | 20,263 | ||||||||
Six Months Ended June 30, 2013 | ||||||||||||||
Net unrealized losses on investment securities: | ||||||||||||||
Net unrealized losses arising during the period | $ | (44,400 | ) | $ | (16,477 | ) | $ | (27,923 | ) | |||||
Net unrealized gains on derivatives: | ||||||||||||||
Reclassification adjustment for losses realized in net income | 394 | (10,599 | ) | 10,993 | ||||||||||
Defined benefit plans: | ||||||||||||||
Amortization of net actuarial losses | 1,234 | 248 | 986 | |||||||||||
Amortization of net transition obligation | 8 | 2 | 6 | |||||||||||
Amortization of prior service cost | 10 | 2 | 8 | |||||||||||
Defined benefit plans, net | 1,252 | 252 | 1,000 | |||||||||||
Other comprehensive loss | $ | (42,754 | ) | $ | (26,824 | ) | $ | (15,930 | ) | |||||
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) | ||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||
Balance at beginning of period | $ | 451 | $ | — | $ | (6,533 | ) | $ | (6,082 | ) | ||||
Other comprehensive income before reclassifications | 9,668 | — | — | 9,668 | ||||||||||
Amounts reclassified from AOCI | 642 | — | 190 | 832 | ||||||||||
Total other comprehensive income | 10,310 | — | 190 | 10,500 | ||||||||||
Balance at end of period | $ | 10,761 | $ | — | $ | (6,343 | ) | $ | 4,418 | |||||
Three Months Ended June 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 17,917 | $ | — | $ | (11,952 | ) | $ | 5,965 | |||||
Other comprehensive loss before reclassifications | (23,100 | ) | — | — | (23,100 | ) | ||||||||
Amounts reclassified from AOCI | — | — | 375 | 375 | ||||||||||
Total other comprehensive income (loss) | (23,100 | ) | — | 375 | (22,725 | ) | ||||||||
Balance at end of period | $ | (5,183 | ) | $ | — | $ | (11,577 | ) | $ | (16,760 | ) | |||
Six Months Ended June 30, 2014 | ||||||||||||||
Balance at beginning of period | $ | (9,125 | ) | $ | — | $ | (6,720 | ) | $ | (15,845 | ) | |||
Other comprehensive income before reclassifications | 19,244 | — | — | 19,244 | ||||||||||
Amounts reclassified from AOCI | 642 | — | 377 | 1,019 | ||||||||||
Total other comprehensive income | 19,886 | — | 377 | 20,263 | ||||||||||
Balance at end of period | $ | 10,761 | $ | — | $ | (6,343 | ) | $ | 4,418 | |||||
Six Months Ended June 30, 2013 | ||||||||||||||
Balance at beginning of period | $ | 22,740 | $ | (10,993 | ) | $ | (12,577 | ) | $ | (830 | ) | |||
Other comprehensive loss before reclassifications | (27,923 | ) | — | — | (27,923 | ) | ||||||||
Amounts reclassified from AOCI | — | 10,993 | 1,000 | 11,993 | ||||||||||
Total other comprehensive income (loss) | (27,923 | ) | 10,993 | 1,000 | (15,930 | ) | ||||||||
Balance at end of period | $ | (5,183 | ) | $ | — | $ | (11,577 | ) | $ | (16,760 | ) | |||
Schedule of amounts reclassified out of each component of AOCI | ' | |||||||||||||
Amount Reclassified from AOCI | Affected Line Item in the | |||||||||||||
Three Months Ended June 30, | Statement Where Net | |||||||||||||
Details about AOCI Components | 2014 | 2013 | Income is Presented | |||||||||||
(Dollars in thousands) | ||||||||||||||
Sale of investment securities available for sale | $ | (1,071 | ) | $ | — | Investment securities gains | ||||||||
429 | — | Tax benefit | ||||||||||||
$ | (642 | ) | $ | — | Net of tax | |||||||||
Amortization of defined benefit plan items | ||||||||||||||
Net actuarial losses | $ | (305 | ) | $ | (618 | ) | -1 | |||||||
Net transition obligation | (4 | ) | (4 | ) | -1 | |||||||||
Prior service cost | (5 | ) | (5 | ) | -1 | |||||||||
(314 | ) | (627 | ) | Total before tax | ||||||||||
124 | 252 | Tax benefit | ||||||||||||
$ | (190 | ) | $ | (375 | ) | Net of tax | ||||||||
Total reclassifications for the period | $ | (832 | ) | $ | (375 | ) | Net of tax | |||||||
Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Sale of investment securities available for sale | $ | (1,071 | ) | $ | — | Investment securities gains | ||||||||
429 | — | Tax benefit | ||||||||||||
$ | (642 | ) | $ | — | Net of tax | |||||||||
Unrealized losses on derivatives | $ | — | $ | (394 | ) | Interest income | ||||||||
— | (10,599 | ) | Tax expense | |||||||||||
$ | — | $ | (10,993 | ) | Net of tax | |||||||||
Amortization of defined benefit plan items | ||||||||||||||
Net actuarial losses | $ | (610 | ) | $ | (1,234 | ) | -1 | |||||||
Net transition obligation | (8 | ) | (8 | ) | -1 | |||||||||
Prior service cost | (10 | ) | (10 | ) | -1 | |||||||||
(628 | ) | (1,252 | ) | Total before tax | ||||||||||
251 | 252 | Tax benefit | ||||||||||||
$ | (377 | ) | $ | (1,000 | ) | Net of tax | ||||||||
Total reclassifications for the period | $ | (1,019 | ) | $ | (11,993 | ) | 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). |
PENSION_AND_SUPPLEMENTAL_EXECU1
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Pension Plan | ' | |||||||||||||||
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ' | |||||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest cost | $ | 366 | $ | 348 | $ | 732 | $ | 696 | ||||||||
Expected return on assets | (524 | ) | (470 | ) | (1,048 | ) | (940 | ) | ||||||||
Amortization of net actuarial losses | 304 | 599 | 608 | 1,198 | ||||||||||||
Net periodic cost | $ | 146 | $ | 477 | $ | 292 | $ | 954 | ||||||||
SERPs | ' | |||||||||||||||
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS | ' | |||||||||||||||
Schedule of components of net periodic benefit cost | ' | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Interest cost | $ | 113 | $ | 103 | $ | 226 | $ | 206 | ||||||||
Amortization of net transition obligation | 4 | 4 | 8 | 8 | ||||||||||||
Amortization of prior service cost | 5 | 5 | 10 | 10 | ||||||||||||
Amortization of net actuarial losses | 1 | 18 | 2 | 36 | ||||||||||||
Net periodic cost | $ | 123 | $ | 130 | $ | 246 | $ | 260 | ||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
Schedule of information used to compute basic and diluted earnings per common share | ' | |||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands, except per share data) | ||||||||||||||
Net income | $ | 9,150 | $ | 14,267 | $ | 18,958 | $ | 151,576 | ||||||
Weighted average shares outstanding - basic | 36,117 | 41,957 | 39,000 | 41,886 | ||||||||||
Dilutive effect of employee stock options and awards | 539 | 338 | 405 | 318 | ||||||||||
Dilutive effect of deferred salary restricted stock units | — | — | — | 3 | ||||||||||
Dilutive effect of Treasury warrants | — | 25 | — | 28 | ||||||||||
Weighted average shares outstanding - diluted | 36,656 | 42,320 | 39,405 | 42,235 | ||||||||||
Basic earnings per share | $ | 0.25 | $ | 0.34 | $ | 0.49 | $ | 3.62 | ||||||
Diluted earnings per share | $ | 0.25 | $ | 0.34 | $ | 0.48 | $ | 3.59 | ||||||
FAIR_VALUE_OF_FINANCIAL_ASSETS1
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
FAIR VALUE OF FINANCIAL 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) | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and due from banks | $ | 83,539 | $ | 83,539 | $ | 83,539 | $ | — | $ | — | |||||||
Interest-bearing deposits in other banks | 3,480 | 3,480 | 3,480 | — | — | ||||||||||||
Investment securities | 1,474,141 | 1,468,303 | 863 | 1,454,716 | 12,724 | ||||||||||||
Loans held for sale | 8,464 | 8,464 | — | — | 8,464 | ||||||||||||
Net loans and leases | 2,710,584 | 2,576,764 | — | 68,293 | 2,508,471 | ||||||||||||
Accrued interest receivable | 13,253 | 13,253 | 13,253 | — | — | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits: | |||||||||||||||||
Noninterest-bearing deposits | 962,646 | 962,646 | 962,646 | — | — | ||||||||||||
Interest-bearing demand and savings deposits | 1,978,029 | 1,978,029 | 1,978,029 | — | — | ||||||||||||
Time deposits | 1,061,903 | 1,063,855 | — | — | 1,063,855 | ||||||||||||
Short-term debt | 29,000 | 29,000 | — | 29,000 | — | ||||||||||||
Long-term debt | 92,790 | 40,085 | — | 40,085 | — | ||||||||||||
Accrued interest payable (included in other liabilities) | 984 | 984 | 984 | — | — | ||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||
Commitments to extend credit | 663,684 | 3,318 | — | 3,318 | — | ||||||||||||
Standby letters of credit and financial guarantees written | 19,265 | 144 | — | 144 | — | ||||||||||||
Interest rate options | 43,367 | 634 | — | 634 | — | ||||||||||||
Forward interest rate contracts | 30,540 | (193 | ) | — | (193 | ) | — | ||||||||||
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 | 69 | — | 69 | — | ||||||||||||
Forward interest rate contracts | 24,244 | 210 | — | 210 | — | ||||||||||||
Schedule of balances of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Fair Value at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
Debt securities: | |||||||||||||||||
States and political subdivisions | $ | 188,943 | $ | — | $ | 176,219 | $ | 12,724 | |||||||||
Corporate securities | 86,838 | — | 86,838 | — | |||||||||||||
Mortgage-backed securities: | |||||||||||||||||
U.S. Government sponsored entities | 782,049 | — | 782,049 | — | |||||||||||||
Non-agency collateralized mortgage obligations | 168,242 | — | 168,242 | — | |||||||||||||
Other | 863 | 863 | — | — | |||||||||||||
Derivatives - Interest rate contracts | 441 | — | 441 | — | |||||||||||||
Total | $ | 1,227,376 | $ | 863 | $ | 1,213,789 | $ | 12,724 | |||||||||
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 | |||||||||
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||
Available for Sale | |||||||||||||||||
States and Political | |||||||||||||||||
Subdivisions Debt | |||||||||||||||||
Securities | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Balance at December 31, 2013 | $ | 10,518 | |||||||||||||||
Principal payments received | (139 | ) | |||||||||||||||
Unrealized net gain included in other comprehensive income | 76 | ||||||||||||||||
Purchases | 2,269 | ||||||||||||||||
Balance at June 30, 2014 | $ | 12,724 | |||||||||||||||
Balance at December 31, 2012 | $ | 12,826 | |||||||||||||||
Principal payments received | (2,677 | ) | |||||||||||||||
Unrealized net loss included in other comprehensive income | (331 | ) | |||||||||||||||
Purchases | 74 | ||||||||||||||||
Balance at June 30, 2013 | $ | 9,892 | |||||||||||||||
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 | |||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Impaired loans (1) | $ | 68,293 | $ | — | $ | 68,293 | $ | — | |||||||||
Other real estate (2) | 5,247 | — | 5,247 | — | |||||||||||||
December 31, 2013 | |||||||||||||||||
Impaired loans (1) | $ | 64,705 | $ | — | $ | 64,705 | $ | — | |||||||||
Other real estate (2) | 5,163 | — | 5,163 | — | |||||||||||||
(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) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||
Schedule of segment profits and assets | ' | |||||||||||||
Banking | ||||||||||||||
Operations | Treasury | All Others | Total | |||||||||||
(Dollars in thousands) | ||||||||||||||
Three Months Ended June 30, 2014: | ||||||||||||||
Net interest income | $ | 27,356 | $ | 8,550 | $ | — | $ | 35,906 | ||||||
Intersegment net interest income (expense) | 6,149 | (7,107 | ) | 958 | — | |||||||||
Provision for loan and lease losses | (1,995 | ) | — | — | (1,995 | ) | ||||||||
Other operating income | 6,750 | 1,092 | 4,162 | 12,004 | ||||||||||
Other operating expense | (14,372 | ) | (538 | ) | (17,978 | ) | (32,888 | ) | ||||||
Administrative and overhead expense allocation | (13,734 | ) | (267 | ) | 14,001 | — | ||||||||
Income taxes | (3,076 | ) | (490 | ) | (311 | ) | (3,877 | ) | ||||||
Net income | $ | 7,078 | $ | 1,240 | $ | 832 | $ | 9,150 | ||||||
Three Months Ended June 30, 2013: | ||||||||||||||
Net interest income | $ | 25,746 | $ | 7,427 | $ | — | $ | 33,173 | ||||||
Intersegment net interest income (expense) | 3,948 | (7,078 | ) | 3,130 | — | |||||||||
Credit for loan and lease losses | 227 | — | — | 227 | ||||||||||
Other operating income | 5,802 | 396 | 11,614 | 17,812 | ||||||||||
Other operating expense | (15,627 | ) | (411 | ) | (18,962 | ) | (35,000 | ) | ||||||
Administrative and overhead expense allocation | (9,561 | ) | (250 | ) | 9,811 | — | ||||||||
Income taxes | (994 | ) | 176 | (1,127 | ) | (1,945 | ) | |||||||
Net income | $ | 9,541 | $ | 260 | $ | 4,466 | $ | 14,267 | ||||||
Six months ended June 30, 2014: | ||||||||||||||
Net interest income | $ | 53,543 | $ | 18,159 | $ | — | $ | 71,702 | ||||||
Intersegment net interest income (expense) | 12,156 | (13,719 | ) | 1,563 | — | |||||||||
Provision for loan and lease losses | (679 | ) | — | — | (679 | ) | ||||||||
Other operating income | 12,399 | 1,837 | 7,912 | 22,148 | ||||||||||
Other operating expense | (29,690 | ) | (1,089 | ) | (34,039 | ) | (64,818 | ) | ||||||
Administrative and overhead expense allocation | (27,538 | ) | (539 | ) | 28,077 | — | ||||||||
Income taxes | (6,690 | ) | (1,541 | ) | (1,164 | ) | (9,395 | ) | ||||||
Net income | $ | 13,501 | $ | 3,108 | $ | 2,349 | $ | 18,958 | ||||||
Six months ended June 30, 2013: | ||||||||||||||
Net interest income | $ | 49,792 | $ | 14,050 | $ | — | $ | 63,842 | ||||||
Intersegment net interest income (expense) | 7,800 | (13,389 | ) | 5,589 | — | |||||||||
Credit for loan and lease losses | 6,788 | — | — | 6,788 | ||||||||||
Other operating income | 13,741 | 999 | 16,102 | 30,842 | ||||||||||
Other operating expense | (29,746 | ) | (861 | ) | (37,146 | ) | (67,753 | ) | ||||||
Administrative and overhead expense allocation | (25,835 | ) | (516 | ) | 26,351 | — | ||||||||
Income taxes | 119,718 | 303 | (2,164 | ) | 117,857 | |||||||||
Net income | $ | 142,258 | $ | 586 | $ | 8,732 | $ | 151,576 | ||||||
At June 30, 2014: | ||||||||||||||
Investment securities | $ | — | $ | 1,474,141 | $ | — | $ | 1,474,141 | ||||||
Loans and leases (including loans held for sale) | 2,802,647 | — | — | 2,802,647 | ||||||||||
Other | 118,480 | 233,438 | 99,060 | 450,978 | ||||||||||
Total assets | $ | 2,921,127 | $ | 1,707,579 | $ | 99,060 | $ | 4,727,766 | ||||||
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 | 117,655 | 256,807 | 63,719 | 438,181 | ||||||||||
Total assets | $ | 2,760,626 | $ | 1,916,853 | $ | 63,719 | $ | 4,741,198 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Held to Maturity | ' | ' |
Amortized Cost | $247,206 | $252,047 |
Estimated Fair Value | 241,368 | 238,705 |
Available for Sale | ' | ' |
Amortized Cost | 1,219,397 | 1,433,296 |
Gross Unrealized Gains | 18,154 | 9,469 |
Gross Unrealized Losses | -10,616 | -34,766 |
Total | 1,226,935 | 1,407,999 |
States and political subdivisions debt securities | ' | ' |
Available for Sale | ' | ' |
Amortized Cost | 192,139 | 191,158 |
Gross Unrealized Gains | 1,452 | 305 |
Gross Unrealized Losses | -4,648 | -12,106 |
Total | 188,943 | 179,357 |
Corporations debt securities | ' | ' |
Available for Sale | ' | ' |
Amortized Cost | 84,751 | 157,337 |
Gross Unrealized Gains | 2,116 | 1,878 |
Gross Unrealized Losses | -29 | -1,120 |
Total | 86,838 | 158,095 |
U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Held to Maturity | ' | ' |
Amortized Cost | 247,206 | 252,047 |
Gross Unrealized Gains | 68 | ' |
Gross Unrealized Losses | -5,906 | -13,342 |
Estimated Fair Value | 241,368 | 238,705 |
Available for Sale | ' | ' |
Amortized Cost | 775,778 | 936,144 |
Gross Unrealized Gains | 10,898 | 7,085 |
Gross Unrealized Losses | -4,627 | -15,603 |
Total | 782,049 | 927,626 |
Non-agency collateralized mortgage obligations mortgage-backed securities | ' | ' |
Available for Sale | ' | ' |
Amortized Cost | 165,991 | 147,902 |
Gross Unrealized Gains | 3,563 | 81 |
Gross Unrealized Losses | -1,312 | -5,937 |
Total | 168,242 | 142,046 |
Other | ' | ' |
Available for Sale | ' | ' |
Amortized Cost | 738 | 755 |
Gross Unrealized Gains | 125 | 120 |
Total | $863 | $875 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Held to Maturity, Amortized Cost | ' | ' | ' |
Mortgage-backed securities | $247,206,000 | $247,206,000 | ' |
Held to Maturity, Estimated Fair Value | ' | ' | ' |
Mortgage-backed securities | 241,368,000 | 241,368,000 | ' |
Available for Sale, Amortized Cost | ' | ' | ' |
Due in one year or less | 3,415,000 | 3,415,000 | ' |
Due after one year through five years | 49,944,000 | 49,944,000 | ' |
Due after five years through ten years | 102,046,000 | 102,046,000 | ' |
Due after ten years | 121,485,000 | 121,485,000 | ' |
Mortgage-backed securities | 941,769,000 | 941,769,000 | ' |
Other | 738,000 | 738,000 | ' |
Total | 1,219,397,000 | 1,219,397,000 | ' |
Available for Sale, Estimated Fair Value | ' | ' | ' |
Due in one year or less | 3,417,000 | 3,417,000 | ' |
Due after one year through five years | 51,498,000 | 51,498,000 | ' |
Due after five years through ten years | 102,191,000 | 102,191,000 | ' |
Due after ten years | 118,675,000 | 118,675,000 | ' |
Mortgage-backed securities | 950,291,000 | 950,291,000 | ' |
Other | 863,000 | 863,000 | ' |
Total | 1,226,935,000 | 1,226,935,000 | 1,407,999,000 |
Available for sale | ' | ' | ' |
Gross proceeds from sale of available for sale investment securities | 162,500,000 | 162,470,000 | ' |
Gross realized gains on the sales of the available for sale investment securities | 900,000 | ' | ' |
Gross realized losses on the sales of the available for sale investment securities | 700,000 | ' | ' |
Investment securities pledged to party with no right to sell or repledge the collateral | 928,300,000 | 928,300,000 | 914,100,000 |
Investment securities pledged to party with right to sell or repledge the collateral | $0 | $0 | $0 |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | investment | investment |
INVESTMENT SECURITIES | ' | ' |
Number of investment securities in an unrealized loss position | 224 | 321 |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | $67,724 | $1,252,120 |
Less than 12 months, Unrealized Losses | -508 | -44,428 |
12 months or longer, Fair Value | 642,033 | 37,595 |
12 months or longer, Unrealized Losses | -16,014 | -3,680 |
Total, Fair Value | 709,757 | 1,289,715 |
Total, Unrealized Losses | -16,522 | -48,108 |
States and political subdivisions debt securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 8,433 | 137,176 |
Less than 12 months, Unrealized Losses | -28 | -8,985 |
12 months or longer, Fair Value | 99,134 | 32,747 |
12 months or longer, Unrealized Losses | -4,620 | -3,121 |
Total, Fair Value | 107,567 | 169,923 |
Total, Unrealized Losses | -4,648 | -12,106 |
Corporations debt securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | ' | 75,368 |
Less than 12 months, Unrealized Losses | ' | -1,120 |
12 months or longer, Fair Value | 8,481 | ' |
12 months or longer, Unrealized Losses | -29 | ' |
Total, Fair Value | 8,481 | 75,368 |
Total, Unrealized Losses | -29 | -1,120 |
U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 54,352 | 909,585 |
Less than 12 months, Unrealized Losses | -451 | -28,386 |
12 months or longer, Fair Value | 477,248 | 4,848 |
12 months or longer, Unrealized Losses | -10,082 | -559 |
Total, Fair Value | 531,600 | 914,433 |
Total, Unrealized Losses | -10,533 | -28,945 |
Non-agency collateralized mortgage obligations mortgage-backed securities | ' | ' |
Total temporary impaired securities | ' | ' |
Less than 12 months, Fair Value | 4,939 | 129,991 |
Less than 12 months, Unrealized Losses | -29 | -5,937 |
12 months or longer, Fair Value | 57,170 | ' |
12 months or longer, Unrealized Losses | -1,283 | ' |
Total, Fair Value | 62,109 | 129,991 |
Total, Unrealized Losses | ($1,312) | ($5,937) |
LOANS_AND_LEASES_Details
LOANS AND LEASES (Details) (USD $) | 6 Months Ended | 1 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | 31-May-14 | Jun. 30, 2013 | 31-May-14 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
loan | loan | Auto loan portfolio | Auto loan portfolio | Student loan portfolio | Student loan portfolio | Commercial, financial and agricultural | Commercial, financial and agricultural | Real estate, Construction | Real estate, Construction | Real estate, Mortgage - residential | Real estate, Mortgage - residential | Real estate, Mortgage - commercial | Real estate, Mortgage - commercial | Consumer | Consumer | Leases | Leases | ||
LOANS AND LEASES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and leases, gross | $2,793,718,000 | ' | $2,631,158,000 | ' | ' | ' | ' | $432,029,000 | $398,365,000 | $100,357,000 | $75,927,000 | $1,224,948,000 | $1,135,155,000 | $698,688,000 | $703,800,000 | $333,609,000 | $311,670,000 | $4,087,000 | $6,241,000 |
Net deferred costs (income) | 465,000 | ' | -557,000 | ' | ' | ' | ' | 715,000 | 351,000 | -479,000 | -311,000 | 1,916,000 | 1,418,000 | -956,000 | -1,033,000 | -731,000 | -982,000 | ' | ' |
Total loans and leases | 2,794,183,000 | ' | 2,630,601,000 | ' | ' | ' | ' | 432,744,000 | 398,716,000 | 99,878,000 | 75,616,000 | 1,226,864,000 | 1,136,573,000 | 697,732,000 | 702,767,000 | 332,878,000 | 310,688,000 | 4,087,000 | 6,241,000 |
Foreclosure of portfolio loans and leases, number of nonperforming loans | 3 | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of foreclosed loans | 1,500,000 | 3,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of loans purchased or sold | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of loan purchased | ' | ' | ' | 11,200,000 | 21,600,000 | 11,500,000 | 4,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium value of loan purchased | ' | ' | ' | 300,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding value of loan purchased | ' | ' | ' | $10,900,000 | $20,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining term | ' | ' | ' | '71 months | '76 months | '123 months | '130 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LOANS_AND_LEASES_Details_2
LOANS AND LEASES (Details 2) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Total ending balance | $83,599 | $83,162 | $83,820 | $87,105 | $86,806 | $96,413 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 71,466 | ' | 65,054 | ' | ' | ' |
Collectively evaluated for impairment | 2,722,252 | ' | 2,566,104 | ' | ' | ' |
Loans and leases | 2,793,718 | ' | 2,631,158 | ' | ' | ' |
Net deferred costs (income) | 465 | ' | -557 | ' | ' | ' |
Total loans and leases | 2,794,183 | ' | 2,630,601 | ' | ' | ' |
Allocated | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | 3,173 | ' | 349 | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 76,426 | ' | 77,471 | ' | ' | ' |
Total ending balance | 79,599 | ' | 77,820 | ' | ' | ' |
Commercial, financial & agricultural | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Individually evaluated for impairment | 3,173 | ' | 349 | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 9,082 | ' | 12,847 | ' | ' | ' |
Total ending balance | 12,255 | 12,786 | 13,196 | 9,653 | 8,641 | 4,987 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 17,041 | ' | 3,939 | ' | ' | ' |
Collectively evaluated for impairment | 414,988 | ' | 394,426 | ' | ' | ' |
Loans and leases | 432,029 | ' | 398,365 | ' | ' | ' |
Net deferred costs (income) | 715 | ' | 351 | ' | ' | ' |
Total loans and leases | 432,744 | ' | 398,716 | ' | ' | ' |
Real estate, Construction | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 15,525 | ' | 2,774 | ' | ' | ' |
Total ending balance | 15,525 | 14,940 | 2,774 | 6,460 | 3,946 | 4,510 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 5,185 | ' | 8,065 | ' | ' | ' |
Collectively evaluated for impairment | 95,172 | ' | 67,862 | ' | ' | ' |
Loans and leases | 100,357 | ' | 75,927 | ' | ' | ' |
Net deferred costs (income) | -479 | ' | -311 | ' | ' | ' |
Total loans and leases | 99,878 | ' | 75,616 | ' | ' | ' |
Real estate, Mortgage - residential | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 19,198 | ' | 25,272 | ' | ' | ' |
Total ending balance | 19,198 | 17,812 | 25,272 | 23,323 | 27,964 | 27,836 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 32,064 | ' | 36,779 | ' | ' | ' |
Collectively evaluated for impairment | 1,192,884 | ' | 1,098,376 | ' | ' | ' |
Loans and leases | 1,224,948 | ' | 1,135,155 | ' | ' | ' |
Net deferred costs (income) | 1,916 | ' | 1,418 | ' | ' | ' |
Total loans and leases | 1,226,864 | ' | 1,136,573 | ' | ' | ' |
Real Estate, Mortgage - Commercial | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 25,885 | ' | 29,947 | ' | ' | ' |
Total ending balance | 25,885 | 25,925 | 29,947 | 37,751 | 37,316 | 50,574 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 17,176 | ' | 16,271 | ' | ' | ' |
Collectively evaluated for impairment | 681,512 | ' | 687,529 | ' | ' | ' |
Loans and leases | 698,688 | ' | 703,800 | ' | ' | ' |
Net deferred costs (income) | -956 | ' | -1,033 | ' | ' | ' |
Total loans and leases | 697,732 | ' | 702,767 | ' | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 6,723 | ' | 6,576 | ' | ' | ' |
Total ending balance | 6,723 | 5,687 | 6,576 | 3,848 | 2,864 | 2,421 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 333,609 | ' | 311,670 | ' | ' | ' |
Loans and leases | 333,609 | ' | 311,670 | ' | ' | ' |
Net deferred costs (income) | -731 | ' | -982 | ' | ' | ' |
Total loans and leases | 332,878 | ' | 310,688 | ' | ' | ' |
Leases | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Ending balance attributable to loans : Collectively evaluated for impairment | 13 | ' | 55 | ' | ' | ' |
Total ending balance | 13 | 12 | 55 | 70 | 75 | 85 |
Loans and leases : | ' | ' | ' | ' | ' | ' |
Collectively evaluated for impairment | 4,087 | ' | 6,241 | ' | ' | ' |
Loans and leases | 4,087 | ' | 6,241 | ' | ' | ' |
Total loans and leases | 4,087 | ' | 6,241 | ' | ' | ' |
Unallocated | ' | ' | ' | ' | ' | ' |
Allowance for loan and lease losses : | ' | ' | ' | ' | ' | ' |
Total ending balance | $4,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
LOANS_AND_LEASES_Details_3
LOANS AND LEASES (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | $74,786 | ' | $74,786 | ' | $78,990 |
Impaired loans with an allowance recorded | 15,167 | ' | 15,167 | ' | 4,367 |
Total | 89,953 | ' | 89,953 | ' | 83,357 |
Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 57,767 | ' | 57,767 | ' | 62,155 |
Impaired loans with an allowance recorded | 13,699 | ' | 13,699 | ' | 2,899 |
Total | 71,466 | ' | 71,466 | ' | 65,054 |
Allowance Allocated | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 3,173 | ' | 3,173 | ' | 349 |
Average recorded investment on impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | 72,145 | 88,219 | 69,918 | 99,146 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' | ' |
Interest Income Recognized | 400 | 586 | 639 | 989 | ' |
Commercial, financial & agricultural | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 3,342 | ' | 3,342 | ' | 1,069 |
Impaired loans with an allowance recorded | 15,167 | ' | 15,167 | ' | 4,367 |
Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 3,342 | ' | 3,342 | ' | 1,040 |
Impaired loans with an allowance recorded | 13,699 | ' | 13,699 | ' | 2,899 |
Allowance Allocated | ' | ' | ' | ' | ' |
Impaired loans with an allowance recorded | 3,173 | ' | 3,173 | ' | 349 |
Average recorded investment on impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | 17,300 | 4,403 | 12,858 | 4,225 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' | ' |
Interest Income Recognized | 6 | 6 | 11 | 12 | ' |
Real estate, Construction | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 11,572 | ' | 11,572 | ' | 14,451 |
Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 5,185 | ' | 5,185 | ' | 8,065 |
Average recorded investment on impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | 5,225 | 26,892 | 6,024 | 36,464 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' | ' |
Interest Income Recognized | 44 | 291 | 76 | 467 | ' |
Real estate, Mortgage - residential | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 35,573 | ' | 35,573 | ' | 41,117 |
Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 32,064 | ' | 32,064 | ' | 36,779 |
Average recorded investment on impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | 33,419 | 37,588 | 34,913 | 39,992 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' | ' |
Interest Income Recognized | 274 | 197 | 437 | 328 | ' |
Real estate, Mortgage - commercial | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 24,299 | ' | 24,299 | ' | 22,353 |
Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with no related allowance recorded | 17,176 | ' | 17,176 | ' | 16,271 |
Average recorded investment on impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | 16,201 | 19,302 | 16,123 | 18,404 | ' |
Interest income recognized on impaired loans | ' | ' | ' | ' | ' |
Interest Income Recognized | 76 | 92 | 115 | 182 | ' |
Leases | ' | ' | ' | ' | ' |
Average recorded investment on impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | ' | $34 | ' | $61 | ' |
LOANS_AND_LEASES_Details_4
LOANS AND LEASES (Details 4) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans 30 - 59 Days Past Due | $1,195 | $5,069 |
Accruing Loans 60 - 89 Days Past Due | 493 | 2,097 |
Accruing Loans Greater than 90 Days Past Due | 119 | 15 |
Nonaccrual Loans | 36,874 | 41,588 |
Total Past Due and Nonaccrual | 38,681 | 48,769 |
Loans and Leases Not Past Due | 2,755,502 | 2,581,832 |
Total loans and leases | 2,794,183 | 2,630,601 |
Commercial, financial & agricultural | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans 30 - 59 Days Past Due | 95 | 50 |
Accruing Loans 60 - 89 Days Past Due | 114 | ' |
Nonaccrual Loans | 16,657 | 3,533 |
Total Past Due and Nonaccrual | 16,866 | 3,583 |
Loans and Leases Not Past Due | 415,878 | 395,133 |
Total loans and leases | 432,744 | 398,716 |
Real estate, Construction | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans 60 - 89 Days Past Due | ' | 120 |
Nonaccrual Loans | 373 | 4,015 |
Total Past Due and Nonaccrual | 373 | 4,135 |
Loans and Leases Not Past Due | 99,505 | 71,481 |
Total loans and leases | 99,878 | 75,616 |
Real estate, Mortgage - residential | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans 30 - 59 Days Past Due | 136 | 3,898 |
Accruing Loans 60 - 89 Days Past Due | 45 | 1,885 |
Accruing Loans Greater than 90 Days Past Due | 99 | ' |
Nonaccrual Loans | 13,608 | 20,271 |
Total Past Due and Nonaccrual | 13,888 | 26,054 |
Loans and Leases Not Past Due | 1,212,976 | 1,110,519 |
Total loans and leases | 1,226,864 | 1,136,573 |
Real estate, Mortgage - commercial | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans 30 - 59 Days Past Due | ' | 544 |
Nonaccrual Loans | 6,236 | 13,769 |
Total Past Due and Nonaccrual | 6,236 | 14,313 |
Loans and Leases Not Past Due | 691,496 | 688,454 |
Total loans and leases | 697,732 | 702,767 |
Consumer | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans 30 - 59 Days Past Due | 964 | 577 |
Accruing Loans 60 - 89 Days Past Due | 334 | 92 |
Accruing Loans Greater than 90 Days Past Due | 20 | ' |
Total Past Due and Nonaccrual | 1,318 | 669 |
Loans and Leases Not Past Due | 331,560 | 310,019 |
Total loans and leases | 332,878 | 310,688 |
Leases | ' | ' |
Aging Analysis of Accruing and Non-Accruing Loans and Leases | ' | ' |
Accruing Loans Greater than 90 Days Past Due | ' | 15 |
Total Past Due and Nonaccrual | ' | 15 |
Loans and Leases Not Past Due | 4,087 | 6,226 |
Total loans and leases | $4,087 | $6,241 |
LOANS_AND_LEASES_Details_5
LOANS AND LEASES (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
TDR | contract | TDR | contract | ||
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Number of TDRs included in nonperforming assets | 0 | ' | ' | ' | ' |
Loans which were more than 90 days delinquent | $0 | ' | $0 | ' | $0 |
Amount of TDRs still accruing interest | 30,700,000 | ' | 30,700,000 | ' | 23,300,000 |
Commitments to lend additional funds | 0 | ' | 0 | ' | ' |
Holding period limit for accruing interest on TDRs | ' | ' | '90 days | ' | '90 days |
Number of Contracts | ' | 4 | ' | 5 | ' |
Recorded Investment | ' | 1,815,000 | ' | 2,402,000 | ' |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' | ' | ' | ' |
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | 0 | ' | 0 | ' | ' |
Construction and development loans | Hawaii | ' | ' | ' | ' | ' |
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Number of TDRs included in nonperforming assets | ' | ' | 2 | ' | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | 300,000 | ' | 300,000 | ' | ' |
Commercial, financial & agricultural | ' | ' | ' | ' | ' |
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Number of Contracts | ' | ' | ' | 1 | ' |
Recorded Investment | ' | ' | ' | 587,000 | ' |
Loans modified as a TDR within the previous twelve months that subsequently defaulted | ' | ' | ' | ' | ' |
Number of Contracts | ' | 1 | ' | 1 | ' |
Recorded Investment | ' | 132,000 | ' | 132,000 | ' |
Real estate: construction | ' | ' | ' | ' | ' |
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Number of Contracts | ' | 1 | ' | 1 | ' |
Recorded Investment | ' | 189,000 | ' | 189,000 | ' |
Commercial loans | Hawaii | ' | ' | ' | ' | ' |
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | 500,000 | ' | 500,000 | ' | ' |
Real estate, Mortgage - residential | ' | ' | ' | ' | ' |
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Number of Contracts | ' | 3 | 9 | 3 | ' |
Recorded Investment | ' | 1,626,000 | 600,000 | 1,626,000 | ' |
Real estate, Mortgage - residential | Hawaii | ' | ' | ' | ' | ' |
Information related to loans modified in a TDR | ' | ' | ' | ' | ' |
Number of TDRs included in nonperforming assets | ' | ' | 38 | ' | ' |
Combined principal balance of troubled debt restructurings included in nonperforming assets | $7,900,000 | ' | $7,900,000 | ' | ' |
LOANS_AND_LEASES_Details_6
LOANS AND LEASES (Details 6) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Recovery value of loan | $0 | ' |
Loans and leases, gross | 2,793,718 | 2,631,158 |
Net deferred costs (income) | 465 | -557 |
Total | 2,794,183 | 2,630,601 |
Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 432,029 | 398,365 |
Net deferred costs (income) | 715 | 351 |
Total | 432,744 | 398,716 |
Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 100,357 | 75,927 |
Net deferred costs (income) | -479 | -311 |
Total | 99,878 | 75,616 |
Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 1,224,948 | 1,135,155 |
Net deferred costs (income) | 1,916 | 1,418 |
Total | 1,226,864 | 1,136,573 |
Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 698,688 | 703,800 |
Net deferred costs (income) | -956 | -1,033 |
Total | 697,732 | 702,767 |
Consumer | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 333,609 | 311,670 |
Net deferred costs (income) | -731 | -982 |
Total | 332,878 | 310,688 |
Leases | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 4,087 | 6,241 |
Total | 4,087 | 6,241 |
Pass | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 2,700,639 | 2,521,755 |
Pass | Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 402,119 | 371,285 |
Pass | Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 96,231 | 67,435 |
Pass | Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 1,210,715 | 1,113,363 |
Pass | Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 653,898 | 651,761 |
Pass | Consumer | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 333,589 | 311,670 |
Pass | Leases | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 4,087 | 6,241 |
Special Mention | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 20,629 | 47,039 |
Special Mention | Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 11,344 | 21,511 |
Special Mention | Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | ' | 4,477 |
Special Mention | Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | ' | 361 |
Special Mention | Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 9,285 | 20,690 |
Substandard | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 72,450 | 62,364 |
Substandard | Commercial, financial & agricultural | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 18,566 | 5,569 |
Substandard | Real estate, Construction | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 4,126 | 4,015 |
Substandard | Real estate, Mortgage - residential | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 14,233 | 21,431 |
Substandard | Real estate, Mortgage - commercial | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | 35,505 | 31,349 |
Substandard | Consumer | ' | ' |
Recorded investment in the loans and leases, by class and credit indicator | ' | ' |
Loans and leases, gross | $20 | ' |
ALLOWANCE_FOR_LOAN_AND_LEASE_L2
ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | $83,162 | $86,806 | $83,820 | $96,413 |
Provision (credit) for loan and lease losses | 1,995 | -227 | 679 | -6,788 |
Subtotal | 85,157 | 86,579 | 84,499 | 89,625 |
Charge-offs | 3,296 | 2,496 | 3,994 | 7,221 |
Recoveries | 1,738 | 3,022 | 3,094 | 4,701 |
Net charge-offs (recoveries) | 1,558 | -526 | 900 | 2,520 |
Ending balance | 83,599 | 87,105 | 83,599 | 87,105 |
Commercial, financial & agricultural | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 12,786 | 8,641 | 13,196 | 4,987 |
Provision (credit) for loan and lease losses | 405 | 2,439 | -538 | 5,845 |
Subtotal | 13,191 | 11,080 | 12,658 | 10,832 |
Charge-offs | 1,482 | 1,597 | 1,555 | 1,841 |
Recoveries | 546 | 170 | 1,152 | 662 |
Net charge-offs (recoveries) | 936 | 1,427 | 403 | 1,179 |
Ending balance | 12,255 | 9,653 | 12,255 | 9,653 |
Real estate, Construction | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 14,940 | 3,946 | 2,774 | 4,510 |
Provision (credit) for loan and lease losses | 243 | 1,044 | 12,007 | 73 |
Subtotal | 15,183 | 4,990 | 14,781 | 4,583 |
Charge-offs | ' | 277 | ' | 355 |
Recoveries | 342 | 1,747 | 744 | 2,232 |
Net charge-offs (recoveries) | -342 | -1,470 | -744 | -1,877 |
Ending balance | 15,525 | 6,460 | 15,525 | 6,460 |
Real estate, Mortgage - residential | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 17,812 | 27,964 | 25,272 | 27,836 |
Provision (credit) for loan and lease losses | 959 | -4,504 | -6,558 | -4,193 |
Subtotal | 18,771 | 23,460 | 18,714 | 23,643 |
Charge-offs | 102 | 380 | 139 | 794 |
Recoveries | 529 | 243 | 623 | 474 |
Net charge-offs (recoveries) | -427 | 137 | -484 | 320 |
Ending balance | 19,198 | 23,323 | 19,198 | 23,323 |
Real Estate, Mortgage - Commercial | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 25,925 | 37,316 | 29,947 | 50,574 |
Provision (credit) for loan and lease losses | 988 | -268 | -3,047 | -10,106 |
Subtotal | 26,913 | 37,048 | 26,900 | 40,468 |
Charge-offs | 1,041 | ' | 1,041 | 3,674 |
Recoveries | 13 | 703 | 26 | 957 |
Net charge-offs (recoveries) | 1,028 | -703 | 1,015 | 2,717 |
Ending balance | 25,885 | 37,751 | 25,885 | 37,751 |
Consumer | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 5,687 | 2,864 | 6,576 | 2,421 |
Provision (credit) for loan and lease losses | 1,402 | 1,069 | 854 | 1,611 |
Subtotal | 7,089 | 3,933 | 7,430 | 4,032 |
Charge-offs | 671 | 242 | 1,251 | 557 |
Recoveries | 305 | 157 | 544 | 373 |
Net charge-offs (recoveries) | 366 | 85 | 707 | 184 |
Ending balance | 6,723 | 3,848 | 6,723 | 3,848 |
Leases | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 12 | 75 | 55 | 85 |
Provision (credit) for loan and lease losses | -2 | -7 | -39 | -18 |
Subtotal | 10 | 68 | 16 | 67 |
Charge-offs | ' | ' | 8 | ' |
Recoveries | 3 | 2 | 5 | 3 |
Net charge-offs (recoveries) | -3 | -2 | 3 | -3 |
Ending balance | 13 | 70 | 13 | 70 |
Unallocated | ' | ' | ' | ' |
Changes in the allowance | ' | ' | ' | ' |
Beginning balance | 6,000 | 6,000 | 6,000 | 6,000 |
Provision (credit) for loan and lease losses | -2,000 | ' | -2,000 | ' |
Subtotal | 4,000 | 6,000 | 4,000 | 6,000 |
Ending balance | $4,000 | $6,000 | $4,000 | $6,000 |
SECURITIZATIONS_Details
SECURITIZATIONS (Details) (Residential mortgage-backed securities, Quoted prices of similar instruments in active markets, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Residential mortgage-backed securities | Quoted prices of similar instruments in active markets | ' | ' |
SECURITIZATIONS | ' | ' |
Fair value | $3.80 | $3.80 |
Unrealized gains recorded in AOCI | $0.20 | $0.20 |
OTHER_INTANGIBLE_ASSETS_Detail
OTHER INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Changes in other intangible assets | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | $32,783 | ' | ' |
Additions | ' | ' | 920 | ' | ' |
Amortization | ' | ' | -2,558 | ' | ' |
Balance, end of period | 31,145 | ' | 31,145 | ' | ' |
Other disclosures | ' | ' | ' | ' | ' |
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 1,227 | 2,888 | 2,466 | 7,016 | ' |
Gross carrying value and accumulated amortization related to intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Value | 100,003 | ' | 100,003 | ' | 99,083 |
Accumulated Amortization | -68,858 | ' | -68,858 | ' | -66,300 |
Net | 31,145 | ' | 31,145 | ' | ' |
Estimated Amortization Expense | ' | ' | ' | ' | ' |
2014 (remainder) | 3,313 | ' | 3,313 | ' | ' |
2015 | 5,360 | ' | 5,360 | ' | ' |
2016 | 4,738 | ' | 4,738 | ' | ' |
2017 | 4,269 | ' | 4,269 | ' | ' |
2018 | 3,242 | ' | 3,242 | ' | ' |
2019 | 932 | ' | 932 | ' | ' |
Thereafter | 9,291 | ' | 9,291 | ' | ' |
Net | 31,145 | ' | 31,145 | ' | ' |
Core Deposit Premium | ' | ' | ' | ' | ' |
Changes in other intangible assets | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | 12,704 | ' | ' |
Amortization | ' | ' | -1,338 | ' | ' |
Balance, end of period | 11,366 | ' | 11,366 | ' | ' |
Gross carrying value and accumulated amortization related to intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Value | 44,642 | ' | 44,642 | ' | 44,642 |
Accumulated Amortization | -33,276 | ' | -33,276 | ' | -31,938 |
Net | 11,366 | ' | 11,366 | ' | ' |
Estimated Amortization Expense | ' | ' | ' | ' | ' |
2014 (remainder) | 1,337 | ' | 1,337 | ' | ' |
2015 | 2,674 | ' | 2,674 | ' | ' |
2016 | 2,674 | ' | 2,674 | ' | ' |
2017 | 2,674 | ' | 2,674 | ' | ' |
2018 | 2,007 | ' | 2,007 | ' | ' |
Net | 11,366 | ' | 11,366 | ' | ' |
Mortgage Servicing Rights | ' | ' | ' | ' | ' |
Changes in other intangible assets | ' | ' | ' | ' | ' |
Balance, beginning of period | ' | ' | 20,079 | ' | ' |
Additions | ' | ' | 920 | ' | ' |
Amortization | -600 | -1,400 | -1,220 | -3,000 | ' |
Balance, end of period | 19,779 | ' | 19,779 | ' | ' |
Other disclosures | ' | ' | ' | ' | ' |
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans | 500 | 700 | 900 | 1,600 | ' |
Fair market value and key assumptions used in determining the fair market value | ' | ' | ' | ' | ' |
Fair market value, beginning of period | ' | ' | 21,399 | 22,356 | ' |
Fair market value, end of period | 20,341 | 21,427 | 20,341 | 21,427 | ' |
Weighted average discount rate (as a percent) | ' | ' | 8.00% | 8.00% | ' |
Weighted average prepayment speed assumption (as a percent) | ' | ' | 15.10% | 14.50% | ' |
Gross carrying value and accumulated amortization related to intangible assets | ' | ' | ' | ' | ' |
Gross Carrying Value | 55,361 | ' | 55,361 | ' | 54,441 |
Accumulated Amortization | -35,582 | ' | -35,582 | ' | -34,362 |
Net | 19,779 | ' | 19,779 | ' | ' |
Estimated Amortization Expense | ' | ' | ' | ' | ' |
2014 (remainder) | 1,976 | ' | 1,976 | ' | ' |
2015 | 2,686 | ' | 2,686 | ' | ' |
2016 | 2,064 | ' | 2,064 | ' | ' |
2017 | 1,595 | ' | 1,595 | ' | ' |
2018 | 1,235 | ' | 1,235 | ' | ' |
2019 | 932 | ' | 932 | ' | ' |
Thereafter | 9,291 | ' | 9,291 | ' | ' |
Net | $19,779 | ' | $19,779 | ' | ' |
DERIVATIVES_Details
DERIVATIVES (Details) (Derivatives not designated as hedging instruments, USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Interest rate locks commitments | ' |
DERIVATIVES | ' |
Mortgage loans hedged | $43.40 |
Forward sale commitments | ' |
DERIVATIVES | ' |
Mortgage loans hedged | $30.50 |
DERIVATIVES_Details_2
DERIVATIVES (Details 2) (Derivatives not designated as hedging instruments, Interest rate contracts, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives not designated as hedging instruments | Interest rate contracts | ' | ' |
Asset Derivatives | ' | ' |
Fair Value | $659 | $425 |
Liability Derivatives | ' | ' |
Fair Value | $218 | $146 |
DERIVATIVES_Details_3
DERIVATIVES (Details 3) (Interest rate contracts, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Designated derivatives | Derivatives in Cash Flow Hedging Relationship | ' | ' | ' | ' |
DERIVATIVES | ' | ' | ' | ' |
Amount of Loss Reclassified from AOCI into Earnings (Effective Portion) | ' | ' | ' | ($394) |
Derivatives Not in Cash Flow Hedging Relationship | ' | ' | ' | ' |
DERIVATIVES | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized in Earnings on Derivatives | $413 | ($901) | $353 | ($531) |
SHORTTERM_BORROWINGS_AND_LONGT1
SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) (USD $) | 6 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Oct. 07, 2013 | Apr. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | |
Trust I | Trust I | Trust I | Federal Reserve discount window line of credit | FHLB line of credit | FHLB line of credit | Junior subordinated debentures | Junior subordinated debentures | ||||
Maximum | |||||||||||
LONG-TERM DEBT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | $45,000,000 | $927,700,000 | ' | ' | ' |
Advances outstanding | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Commercial real estate and commercial loans pledged as collateral | ' | ' | ' | ' | ' | ' | 77,000,000 | 1,400,000,000 | ' | ' | ' |
Long-term borrowings | 92,790,000 | ' | 92,799,000 | ' | ' | ' | ' | 5,400 | 14,000 | ' | ' |
Short-term borrowings | 29,000,000 | ' | 8,015,000 | ' | ' | ' | ' | 29,000,000 | 8,000,000 | ' | ' |
Investment securities pledged as collateral | 928,300,000 | ' | 914,100,000 | ' | ' | ' | ' | 1,200,000 | ' | ' | ' |
Number of consecutive quarterly periods for which payments of interest can be deferred without default or penalty | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 months |
Deferred accrued interest paid | 3,283,000 | 15,666,000 | ' | ' | ' | ' | ' | ' | ' | 13,000,000 | ' |
Trust preferred securities auctioned off value | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Trust preferred securities issued | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' |
Payments for repurchase of remaining common stock | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' |
EQUITY_Details
EQUITY (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Jan. 29, 2014 | Jun. 06, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | 20-May-14 | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 31, 2008 | Apr. 07, 2014 | Mar. 21, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Feb. 21, 2014 | Feb. 21, 2014 | Feb. 20, 2014 | Feb. 20, 2014 | Jun. 30, 2013 | Nov. 23, 2010 | |
TARP Warrant | Rights | Treasury | Treasury | Central Pacific Bank | Common stocks | Common stocks | Common stocks | 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 | ||||||
TARP Warrant | TARP Warrant | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Minimum | Maximum | Maximum | Maximum | Treasury | Rights | |||||||||||||
Lead Investors | Carlyle | Anchorage | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | Repurchase Agreements | TARP Warrant | ||||||||||||||||||
Carlyle | Anchorage | Maximum | |||||||||||||||||||||||
EQUITY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares that can be purchased upon exercise of warrants or rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 79,288 | ' |
Accepted bid amount of warrant | ' | ' | ' | ' | ' | ' | ' | $752,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liability | ' | ' | ' | ' | ' | 828,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other noninterest expense | 5,003,000 | 4,708,000 | 9,018,000 | 7,188,000 | ' | 76,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of warrant (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6 |
Additional extension period of Tax Benefits Preservation Plan | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory Retained Earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | 119,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of shares repurchased or acquired through tender offer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | ' | 56,200,000 | ' | ' | ' | 68,800,000 | 28,100,000 | 28,100,000 | ' | ' |
Tender offer price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20.20 | ' | ' | ' | $18.50 | $21 | ' | ' | ' | ' |
Number of shares of common stock properly tendered and not withdrawn at or below the purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,369,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock tendered through notice of guaranteed delivery at or below the purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 167,572 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased or acquired through tender offer | ' | ' | 6,369,266 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,188,066 | 3,405,888 | ' | 1,391,089 | 1,391,089 | ' | ' | ' | ' | ' | ' |
Share repurchase percentage of common stock properly tendered and not withdrawn at or below the purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' |
Share repurchase percentage of issued and outstanding shares of common stock prior to the completion of the tender offer and the private repurchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, outstanding shares | 35,901,080 | ' | 35,901,080 | ' | 42,107,633 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares authorized under the 2008 Repurchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares remaining available for repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount authorized under the 2014 Repurchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares repurchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 181,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchased amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining amount available for repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (Restricted Stock Awards and Units, USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock Awards and Units | ' |
Activity of nonvested shares | ' |
Nonvested at the beginning of the period (in shares) | 835,904 |
Changes during the period: | ' |
Granted (in shares) | 191,465 |
Vested (in shares) | -266,730 |
Forfeited (in shares) | -23,168 |
Nonvested at the end of the period (in shares) | 737,471 |
Weighted Average Grant Date Fair Value | ' |
Nonvested at the beginning of the period (in dollars per share) | $14.75 |
Changes during the period: | ' |
Granted (in dollars per share) | $18.58 |
Vested (in dollars per share) | $14.85 |
Forfeited (in dollars per share) | $14.63 |
Nonvested at the end of the period (in dollars per share) | $15.71 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net unrealized gains (losses) on investment securities, Before Tax | ' | ' | ' | ' |
Net unrealized gains (losses) arising during the period | $15,940 | ($39,577) | $31,884 | ($44,400) |
Less: Reclassification adjustment for gains/losses realized in net income | 1,071 | ' | 1,071 | ' |
Net unrealized gains on investment securities | 17,011 | ' | 32,955 | ' |
Net unrealized gains on derivatives, Before Tax | ' | ' | ' | ' |
Reclassification adjustment for losses realized in net income | ' | ' | ' | 394 |
Defined benefit plans, Before Tax | ' | ' | ' | ' |
Amortization of net actuarial losses | 305 | 618 | 610 | 1,234 |
Amortization of net transition obligation | 4 | 4 | 8 | 8 |
Amortization of prior service cost | 5 | 5 | 10 | 10 |
Defined benefit plans, net | 314 | 627 | 628 | 1,252 |
Other comprehensive income (loss) | 17,325 | -38,950 | 33,583 | -42,754 |
Net unrealized gains (losses) on investment securities, Tax Effect | ' | ' | ' | ' |
Net unrealized gains (losses) arising during the period | 6,272 | -16,477 | 12,640 | -16,477 |
Less: Reclassification adjustment for losses realized in net income | 429 | ' | 429 | ' |
Net unrealized gains on investment securities | 6,701 | ' | 13,069 | ' |
Net unrealized gains on derivatives, Tax Effect | ' | ' | ' | ' |
Reclassification adjustment for losses realized in net income | ' | ' | ' | -10,599 |
Defined benefit plans, Tax Effect | ' | ' | ' | ' |
Amortization of net actuarial losses | 120 | 248 | 243 | 248 |
Amortization of net transition obligation | 2 | 2 | 4 | 2 |
Amortization of prior service cost | 2 | 2 | 4 | 2 |
Defined benefit plans, net | 124 | 252 | 251 | 252 |
Other comprehensive income (loss) | 6,825 | -16,225 | 13,320 | -26,824 |
Net unrealized gains (losses) on investment securities, Net of Tax | ' | ' | ' | ' |
Net unrealized gains (losses) arising during the period | 9,668 | -23,100 | 19,244 | -27,923 |
Less: Reclassification adjustment for losses realized in net income | 642 | ' | 642 | ' |
Net unrealized gains on investment securities | 10,310 | -23,100 | 19,886 | -27,923 |
Net unrealized gains on derivatives, Net of Tax | ' | ' | ' | ' |
Reclassification adjustment for gains/losses realized in net income | ' | ' | ' | 10,993 |
Defined benefit plans, Net of Tax | ' | ' | ' | ' |
Amortization of net actuarial losses | 185 | 370 | 367 | 986 |
Amortization of net transition obligation | 2 | 2 | 4 | 6 |
Amortization of prior service cost | 3 | 3 | 6 | 8 |
Defined benefit plans, net | 190 | 375 | 377 | 1,000 |
Other comprehensive income (loss), net of tax | $10,500 | ($22,725) | $20,263 | ($15,930) |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in each component of AOCI, net of tax | ' | ' | ' | ' |
Balance at the beginning of the period | ($6,082) | $5,965 | ($15,845) | ($830) |
Other comprehensive income (loss) before reclassifications | 9,668 | -23,100 | 19,244 | -27,923 |
Amounts reclassified from AOCI | 832 | 375 | 1,019 | 11,993 |
Other comprehensive income (loss), net of tax | 10,500 | -22,725 | 20,263 | -15,930 |
Balance at the end of the period | 4,418 | -16,760 | 4,418 | -16,760 |
Investment Securities | ' | ' | ' | ' |
Changes in each component of AOCI, net of tax | ' | ' | ' | ' |
Balance at the beginning of the period | 451 | 17,917 | -9,125 | 22,740 |
Other comprehensive income (loss) before reclassifications | 9,668 | -23,100 | 19,244 | -27,923 |
Amounts reclassified from AOCI | 642 | ' | 642 | ' |
Other comprehensive income (loss), net of tax | 10,310 | -23,100 | 19,886 | -27,923 |
Balance at the end of the period | 10,761 | -5,183 | 10,761 | -5,183 |
Derivatives | ' | ' | ' | ' |
Changes in each component of AOCI, net of tax | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | -10,993 |
Amounts reclassified from AOCI | ' | ' | ' | 10,993 |
Other comprehensive income (loss), net of tax | ' | ' | ' | 10,993 |
Defined Benefit Plans | ' | ' | ' | ' |
Changes in each component of AOCI, net of tax | ' | ' | ' | ' |
Balance at the beginning of the period | -6,533 | -11,952 | -6,720 | -12,577 |
Amounts reclassified from AOCI | 190 | 375 | 377 | 1,000 |
Other comprehensive income (loss), net of tax | 190 | 375 | 377 | 1,000 |
Balance at the end of the period | ($6,343) | ($11,577) | ($6,343) | ($11,577) |
ACCUMULATED_OTHER_COMPREHENSIV4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ||||
Interest income | $37,536 | $34,992 | $74,929 | $67,587 | ||||
Investment securities gains | -240 | ' | -240 | ' | ||||
Net actuarial losses | -305 | -618 | -610 | -1,234 | ||||
Net transition obligation | -4 | -4 | -8 | -8 | ||||
Prior service cost | -5 | -5 | -10 | -10 | ||||
Tax (expense) benefit | -3,877 | -1,945 | -9,395 | 117,857 | ||||
Net income (loss) | 9,150 | 14,267 | 18,958 | 151,576 | ||||
Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ||||
Net income (loss) | -832 | -375 | -1,019 | -11,993 | ||||
Unrealized loss on derivatives | Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ||||
Interest income | ' | ' | ' | -394 | ||||
Tax (expense) benefit | ' | ' | ' | -10,599 | ||||
Net of tax | ' | ' | ' | -10,993 | ||||
Amortization of defined benefit plan items | Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ||||
Net actuarial losses | -305 | [1] | -618 | [1] | -610 | [1] | -1,234 | [1] |
Net transition obligation | -4 | [1] | -4 | [1] | -8 | [1] | -8 | [1] |
Prior service cost | -5 | [1] | -5 | [1] | -10 | [1] | -10 | [1] |
Total before tax | -314 | -627 | -628 | -1,252 | ||||
Tax (expense) benefit | 124 | 252 | 251 | 252 | ||||
Net of tax | -190 | -375 | -377 | -1,000 | ||||
Sale of investment securities available for sale | Amount Reclassified from AOCI | ' | ' | ' | ' | ||||
Amounts reclassified out of each component of accumulated other comprehensive income | ' | ' | ' | ' | ||||
Investment securities gains | -1,071 | ' | -1,071 | ' | ||||
Tax (expense) benefit | 429 | ' | 429 | ' | ||||
Net of tax | ($642) | ' | ($642) | ' | ||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details). |
PENSION_AND_SUPPLEMENTAL_EXECU2
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension Plan | ' | ' | ' | ' |
Components of net periodic benefit cost | ' | ' | ' | ' |
Interest cost | $366 | $348 | $732 | $696 |
Expected return on assets | -524 | -470 | -1,048 | -940 |
Amortization of net actuarial losses | 304 | 599 | 608 | 1,198 |
Net periodic cost | 146 | 477 | 292 | 954 |
SERPs | ' | ' | ' | ' |
Components of net periodic benefit cost | ' | ' | ' | ' |
Interest cost | 113 | 103 | 226 | 206 |
Amortization of net transition obligation | 4 | 4 | 8 | 8 |
Amortization of prior service cost | 5 | 5 | 10 | 10 |
Amortization of net actuarial losses | 1 | 18 | 2 | 36 |
Net periodic cost | $123 | $130 | $246 | $260 |
INCOME_AND_FRANCHISE_TAXES_Det
INCOME AND FRANCHISE TAXES (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
INCOME AND FRANCHISE TAXES | ' | ' | ' | ' | ' | ' |
Change in valuation allowance recognized as income tax expense (benefit) | ' | ' | $119,800,000 | ' | ' | ' |
Income tax expense | 3,877,000 | 1,945,000 | ' | 9,395,000 | -117,857,000 | ' |
Valuation allowance for net deferred tax assets | 2,900,000 | ' | ' | 2,900,000 | ' | ' |
Net deferred tax assets | $114,600,000 | ' | ' | $114,600,000 | ' | $137,200,000 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
EARNINGS PER SHARE | ' | ' | ' | ' |
Net income | $9,150 | $14,267 | $18,958 | $151,576 |
Weighted average shares outstanding - basic | 36,117,000 | 41,957,000 | 39,000,000 | 41,886,000 |
SHARE-BASED COMPENSATION | ' | ' | ' | ' |
Dilutive effect of Treasury warrants (in shares) | ' | 25,000 | ' | 28,000 |
Weighted average shares outstanding - diluted | 36,656,000 | 42,320,000 | 39,405,000 | 42,235,000 |
Basic earnings per share (in dollars per share) | $0.25 | $0.34 | $0.49 | $3.62 |
Diluted earnings per share (in dollars per share) | $0.25 | $0.34 | $0.48 | $3.59 |
Antidilutive securities excluded from the dilutive share calculation (in shares) | 22,864 | 26,256 | 22,864 | 26,256 |
Employee stock options and awards | ' | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' | ' |
Dilutive effect of share-based compensation arrangements | 539,000 | 338,000 | 405,000 | 318,000 |
Deferred salary restricted stock units | ' | ' | ' | ' |
SHARE-BASED COMPENSATION | ' | ' | ' | ' |
Dilutive effect of share-based compensation arrangements | ' | ' | ' | 3,000 |
FAIR_VALUE_OF_FINANCIAL_ASSETS2
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets | ' | ' |
Cash and due from banks | $83,539 | $45,092 |
Interest-bearing deposits in other banks | 3,480 | 4,256 |
Loans held for sale | 8,464 | 12,370 |
Accrued interest receivable | 13,253 | 14,072 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 962,646 | 891,017 |
Time deposits | 1,061,903 | 1,109,521 |
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 | 83,539 | 45,092 |
Interest-bearing deposits in other banks | 3,480 | 4,256 |
Investment securities | 863 | 875 |
Accrued interest receivable | 13,253 | 14,072 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 962,646 | 891,017 |
Interest-bearing demand and savings deposits | 1,978,029 | 1,935,635 |
Accrued interest payable (included in other liabilities) | 984 | 1,040 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial assets | ' | ' |
Investment securities | 1,454,716 | 1,635,311 |
Net loans and leases | 68,293 | 64,705 |
Deposits: | ' | ' |
Short-term debt | 29,000 | 8,015 |
Long-term debt | 40,085 | 39,446 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 3,318 | 3,264 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 144 | 8 |
Significant Other Observable Inputs (Level 2) | Interest rate options | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 634 | 69 |
Significant Other Observable Inputs (Level 2) | Forward interest rate contracts | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | -193 | 210 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial assets | ' | ' |
Investment securities | 12,724 | 10,518 |
Loans held for sale | 8,464 | 12,370 |
Net loans and leases | 2,508,471 | 2,365,577 |
Deposits: | ' | ' |
Time deposits | 1,063,855 | 1,111,319 |
Carrying Amount | ' | ' |
Financial assets | ' | ' |
Cash and due from banks | 83,539 | 45,092 |
Interest-bearing deposits in other banks | 3,480 | 4,256 |
Investment securities | 1,474,141 | 1,660,046 |
Loans held for sale | 8,464 | 12,370 |
Net loans and leases | 2,710,584 | 2,546,781 |
Accrued interest receivable | 13,253 | 14,072 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 962,646 | 891,017 |
Interest-bearing demand and savings deposits | 1,978,029 | 1,935,635 |
Time deposits | 1,061,903 | 1,109,521 |
Short-term debt | 29,000 | 8,015 |
Long-term debt | 92,790 | 92,799 |
Accrued interest payable (included in other liabilities) | 984 | 1,040 |
Carrying Amount | Commitments to extend credit | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 663,684 | 652,717 |
Carrying Amount | Standby letters of credit and financial guarantees written | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 19,265 | 1,023 |
Carrying Amount | Interest rate options | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 43,367 | 37,093 |
Carrying Amount | Forward interest rate contracts | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 30,540 | 24,244 |
Fair Value | ' | ' |
Financial assets | ' | ' |
Cash and due from banks | 83,539 | 45,092 |
Interest-bearing deposits in other banks | 3,480 | 4,256 |
Investment securities | 1,469,303 | 1,646,704 |
Loans held for sale | 8,464 | 12,370 |
Net loans and leases | 2,576,764 | 2,430,282 |
Accrued interest receivable | 13,253 | 14,072 |
Deposits: | ' | ' |
Noninterest-bearing deposits | 962,646 | 891,017 |
Interest-bearing demand and savings deposits | 1,978,029 | 1,935,635 |
Time deposits | 1,063,855 | 1,111,319 |
Short-term debt | 29,000 | 8,015 |
Long-term debt | 40,085 | 39,446 |
Accrued interest payable (included in other liabilities) | 984 | 1,040 |
Fair Value | Commitments to extend credit | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 3,318 | 3,264 |
Fair Value | Standby letters of credit and financial guarantees written | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 144 | 8 |
Fair Value | Interest rate options | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | 634 | 69 |
Fair Value | Forward interest rate contracts | ' | ' |
Deposits: | ' | ' |
Off-balance sheet financial instruments | ($193) | $210 |
FAIR_VALUE_OF_FINANCIAL_ASSETS3
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | $1,226,935 | $1,407,999 |
States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 188,943 | 179,357 |
Corporations debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 86,838 | 158,095 |
U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 782,049 | 927,626 |
Non-agency collateralized mortgage obligations | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 168,242 | 142,046 |
Other | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 863 | 875 |
Recurring basis | Fair Value | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 1,227,376 | 1,408,278 |
Recurring basis | Fair Value | Interest rate contracts | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Derivatives | 441 | 279 |
Recurring basis | Fair Value | States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 188,943 | 179,357 |
Recurring basis | Fair Value | Corporations debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 86,838 | 158,095 |
Recurring basis | Fair Value | U.S. Government sponsored entities mortgage-backed securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 782,049 | 927,626 |
Recurring basis | Fair Value | Non-agency collateralized mortgage obligations | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 168,242 | 142,046 |
Recurring basis | Fair Value | Other | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 863 | 875 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 863 | 875 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 863 | 875 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 1,213,789 | 1,396,885 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Interest rate contracts | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Derivatives | 441 | 279 |
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: | 176,219 | 168,839 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporations debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 86,838 | 158,095 |
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: | 782,049 | 927,626 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Non-agency collateralized mortgage obligations | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | 168,242 | 142,046 |
Recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Total | 12,724 | 10,518 |
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions debt securities | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Available for sale securities: | $12,724 | $10,518 |
FAIR_VALUE_OF_FINANCIAL_ASSETS4
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details 3) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Available for Sale States and Political Subdivisions Debt Securities | ' | ' |
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 | $10,518 | $12,826 |
Principal payments received | -139 | -2,677 |
Unrealized net gain (loss) included in other comprehensive income | 76 | -331 |
Purchases | 2,269 | 74 |
Aggregate fair value / Balance at the end of the period | 12,724 | 9,892 |
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 | $12,700 | ' |
Additional disclosures | ' | ' |
Number of investment securities held | 4 | ' |
Mortgage revenue bonds | Weighted average | ' | ' |
Additional disclosures | ' | ' |
Discount rate (as a percent) | 3.97% | ' |
FAIR_VALUE_OF_FINANCIAL_ASSETS5
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details 4) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on a nonrecurring basis | ' | ' |
Other real estate | $5,247 | $5,163 |
Nonrecurring basis | Fair Value | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans | 68,293 | 64,705 |
Other real estate | 5,247 | 5,163 |
Nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans | 68,293 | 64,705 |
Other real estate | $5,247 | $5,163 |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
segment | |||||
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 3 | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Net interest income | $35,906 | $33,173 | $71,702 | $63,842 | ' |
Credit (provision) for loan and lease losses | -1,995 | 227 | -679 | 6,788 | ' |
Other operating income | 12,004 | 17,812 | 22,148 | 30,842 | ' |
Other operating expense | -32,888 | -35,000 | -64,818 | -67,753 | ' |
Income taxes | -3,877 | -1,945 | -9,395 | 117,857 | ' |
Net income | 9,150 | 14,267 | 18,958 | 151,576 | ' |
Investment securities | 1,474,141 | ' | 1,474,141 | ' | 1,660,046 |
Loans and leases (including loans held for sale) | 2,802,647 | ' | 2,802,647 | ' | 2,642,971 |
Other | 450,978 | ' | 450,978 | ' | 438,181 |
Total assets | 4,727,766 | ' | 4,727,766 | ' | 4,741,198 |
Banking Operations | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Net interest income | 27,356 | 25,746 | 53,543 | 49,792 | ' |
Credit (provision) for loan and lease losses | -1,995 | 227 | -679 | 6,788 | ' |
Other operating income | 6,750 | 5,802 | 12,399 | 13,741 | ' |
Other operating expense | -14,372 | -15,627 | -29,690 | -29,746 | ' |
Administrative and overhead expense allocation | -13,734 | -9,561 | -27,538 | -25,835 | ' |
Income taxes | -3,076 | -994 | -6,690 | 119,718 | ' |
Net income | 7,078 | 9,541 | 13,501 | 142,258 | ' |
Loans and leases (including loans held for sale) | 2,802,647 | ' | 2,802,647 | ' | 2,642,971 |
Other | 118,480 | ' | 118,480 | ' | 117,655 |
Total assets | 2,921,127 | ' | 2,921,127 | ' | 2,760,626 |
Treasury | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Net interest income | 8,550 | 7,427 | 18,159 | 14,050 | ' |
Other operating income | 1,092 | 396 | 1,837 | 999 | ' |
Other operating expense | -538 | -411 | -1,089 | -861 | ' |
Administrative and overhead expense allocation | -267 | -250 | -539 | -516 | ' |
Income taxes | -490 | 176 | -1,541 | 303 | ' |
Net income | 1,240 | 260 | 3,108 | 586 | ' |
Investment securities | 1,474,141 | ' | 1,474,141 | ' | 1,660,046 |
Other | 233,438 | ' | 233,438 | ' | 256,807 |
Total assets | 1,707,579 | ' | 1,707,579 | ' | 1,916,853 |
All Others | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Other operating income | 4,162 | 11,614 | 7,912 | 16,102 | ' |
Other operating expense | -17,978 | -18,962 | -34,039 | -37,146 | ' |
Administrative and overhead expense allocation | 14,001 | 9,811 | 28,077 | 26,351 | ' |
Income taxes | -311 | -1,127 | -1,164 | -2,164 | ' |
Net income | 832 | 4,466 | 2,349 | 8,732 | ' |
Other | 99,060 | ' | 99,060 | ' | 63,719 |
Total assets | 99,060 | ' | 99,060 | ' | 63,719 |
Intersegment elimination | Banking Operations | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Net interest income | 6,149 | 3,948 | 12,156 | 7,800 | ' |
Intersegment elimination | Treasury | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Net interest income | -7,107 | -7,078 | -13,179 | -13,389 | ' |
Intersegment elimination | All Others | ' | ' | ' | ' | ' |
SEGMENT INFORMATION | ' | ' | ' | ' | ' |
Net interest income | $958 | $3,130 | $1,563 | $5,589 | ' |