Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'FIRST MERCHANTS CORP | ' |
Entity Central Index Key | '0000712534 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'FRME | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 28,825,706 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $92,341 | $101,460 |
Interest-bearing time deposits | 18,875 | 38,443 |
Investment securities available for sale | 606,341 | 513,343 |
Investment securities held to maturity (fair value of $314,383 and $378,174) | 307,794 | 361,020 |
Mortgage loans held for sale | 5,312 | 22,300 |
Loans, net of allowance for loan losses of $66,224 and $69,366 | 2,859,233 | 2,832,843 |
Premises and equipment | 54,386 | 52,749 |
Federal Reserve and Federal Home Loan Bank stock | 32,790 | 32,785 |
Interest receivable | 16,171 | 16,367 |
Core deposit intangibles | 7,001 | 8,154 |
Goodwill | 141,375 | 141,375 |
Cash surrender value of life insurance | 127,322 | 125,397 |
Other real estate owned | 12,052 | 13,263 |
Tax asset, deferred and receivable | 31,385 | 30,867 |
Other assets | 13,533 | 14,455 |
TOTAL ASSETS | 4,325,911 | 4,304,821 |
Deposits: | ' | ' |
Noninterest-bearing | 790,174 | 801,597 |
Interest-bearing | 2,465,672 | 2,544,786 |
Total Deposits | 3,255,846 | 3,346,383 |
Borrowings: | ' | ' |
Federal funds purchased | 115,938 | 18,862 |
Securities sold under repurchase agreements | 123,935 | 141,828 |
Federal Home Loan Bank advances | 172,292 | 94,238 |
Subordinated debentures and term loans | 111,849 | 112,161 |
Total Borrowings | 524,014 | 367,089 |
Interest payable | 1,155 | 1,841 |
Other liabilities | 31,427 | 37,272 |
Total Liabilities | 3,812,442 | 3,752,585 |
COMMITMENTS AND CONTINGENT LIABILITIES | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common Stock, $.125 stated value: Authorized - 50,000,000 shares Issued and outstanding - 28,801,848 and 28,692,616 shares | 3,603 | 3,587 |
Additional paid-in capital | 258,350 | 256,843 |
Retained earnings | 233,546 | 206,397 |
Accumulated other comprehensive loss | -16,198 | -5,499 |
Total Stockholders' Equity | 513,469 | 552,236 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,325,911 | 4,304,821 |
Preferred Stock, no-par value, $1,000 liquidation value: Authorized - 500,000; Senior Non-Cumulative Perpetual Preferred Stock, Series B; Issued and outstanding - 68,087 and 90,782.94 shares | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock | 34,043 | 90,783 |
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value; Authorized - 600 shares; Issued and outstanding - 125 shares | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred Stock | $125 | $125 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investment securities held to maturity - fair value | $314,383 | $378,174 |
Loans - allowance for loan losses | $66,224 | $69,366 |
Common Stock, stated value (in dollars per share) | $0.13 | $0.13 |
Common Stock, Authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, Issued (in shares) | 28,825,465 | 28,692,616 |
Common Stock, Outstanding (in shares) | 28,825,465 | 28,692,616 |
Series B Preferred Stock | ' | ' |
Preferred Stock, liquidation value per share (in dollars per share) | $1,000 | $1,000 |
Preferred Stock, Authorized (in shares) | 500,000 | 500,000 |
Preferred Stock, Issued (in shares) | 34,043 | 90,782.94 |
Preferred Stock, Outstanding (in shares) | 34,043 | 90,782.94 |
Cumulative Preferred Stock | ' | ' |
Preferred Stock, par value (in dollars per share) | $1,000 | $1,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $1,000 | $1,000 |
Preferred Stock, Authorized (in shares) | 600 | 600 |
Preferred Stock, Issued (in shares) | 125 | 125 |
Preferred Stock, Outstanding (in shares) | 125 | 125 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Loans receivable: | ' | ' | ' | ' |
Taxable | $33,548 | $38,160 | $104,725 | $110,660 |
Tax exempt | 85 | 118 | 315 | 358 |
Investment securities: | ' | ' | ' | ' |
Taxable | 3,876 | 4,176 | 11,071 | 13,218 |
Tax exempt | 2,840 | 2,532 | 7,809 | 7,645 |
Deposits with financial institutions | 18 | 16 | 99 | 69 |
Federal Reserve and Federal Home Loan Bank stock | 369 | 345 | 1,108 | 1,035 |
Total Interest Income | 40,736 | 45,347 | 125,127 | 132,985 |
INTEREST EXPENSE | ' | ' | ' | ' |
Deposits | 2,213 | 3,517 | 7,703 | 11,566 |
Federal funds purchased | 72 | 38 | 84 | 62 |
Securities sold under repurchase agreements | 192 | 211 | 594 | 703 |
Federal Home Loan Bank advances | 506 | 492 | 1,427 | 2,123 |
Subordinated debentures and term loans | 731 | 1,187 | 2,189 | 4,460 |
Total Interest Expense | 3,714 | 5,445 | 11,997 | 18,914 |
NET INTEREST INCOME | 37,022 | 39,902 | 113,130 | 114,071 |
Provision for loan losses | 1,533 | 4,609 | 5,632 | 14,029 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 35,489 | 35,293 | 107,498 | 100,042 |
OTHER INCOME | ' | ' | ' | ' |
Service charges on deposit accounts | 3,120 | 2,913 | 8,761 | 8,625 |
Fiduciary activities | 1,986 | 1,986 | 6,357 | 5,907 |
Other customer fees | 2,899 | 2,740 | 8,495 | 8,476 |
Commission income | 1,636 | 1,618 | 5,556 | 4,770 |
Earnings on cash surrender value of life insurance | 611 | 685 | 1,921 | 2,725 |
Net gains and fees on sales of loans | 1,673 | 2,849 | 6,508 | 7,115 |
Net realized gains on sales of available for sale securities | ' | 843 | 487 | 2,134 |
Gain on FDIC modified whole bank transaction | ' | ' | ' | 9,124 |
Other income | -125 | 639 | 1,651 | 1,220 |
Total Other Income | 11,800 | 14,273 | 39,736 | 50,096 |
OTHER EXPENSES | ' | ' | ' | ' |
Salaries and employee benefits | 20,616 | 20,083 | 61,943 | 59,078 |
Net occupancy | 2,430 | 2,568 | 7,299 | 7,692 |
Equipment | 1,852 | 1,798 | 5,368 | 5,259 |
Marketing | 559 | 536 | 1,561 | 1,542 |
Outside data processing fees | 1,515 | 1,413 | 4,386 | 4,295 |
Printing and office supplies | 320 | 287 | 962 | 848 |
Core deposit amortization | 383 | 489 | 1,153 | 1,438 |
FDIC assessments | 677 | 792 | 2,095 | 2,771 |
Other real estate owned and credit-related expenses | 1,648 | 2,104 | 4,993 | 6,412 |
Other expenses | 4,219 | 4,334 | 12,901 | 13,277 |
Total Other Expenses | 34,219 | 34,404 | 102,661 | 102,612 |
INCOME BEFORE INCOME TAX | 13,070 | 15,162 | 44,573 | 47,526 |
Income tax expense | 2,667 | 3,926 | 11,490 | 12,714 |
NET INCOME | 10,403 | 11,236 | 33,083 | 34,812 |
Preferred stock dividends | -430 | -1,134 | -2,139 | -3,404 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $9,973 | $10,102 | $30,944 | $31,408 |
Per Share Data: | ' | ' | ' | ' |
Basic Net Income Available to Common Stockholders (in dollars per share) | $0.35 | $0.35 | $1.08 | $1.09 |
Diluted Net Income Available to Common Stockholders (in dollars per share) | $0.35 | $0.35 | $1.07 | $1.09 |
Cash Dividends Paid (in dollars per share) | $0.05 | $0.03 | $0.13 | $0.07 |
Average Diluted Shares Outstanding (in shares) | 29,081,472 | 28,888,076 | 29,026,466 | 28,819,283 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income | $10,403 | $11,236 | $33,083 | $34,812 |
Other comprehensive income net of tax: | ' | ' | ' | ' |
Unrealized holding gain (loss) on securities available for sale arising during the period, net of income tax of $470, $1,018, $6,810, and $1,670 | -873 | 1,891 | -12,646 | 3,102 |
Unrealized gain (loss) on securities available for sale for which a portion of an other than temporary impairment has been recognized in income, net of tax of $103, $12, $48, and $43 | -192 | -22 | 89 | -80 |
Unrealized gain (loss) on cash flow hedges arising during the period, net of income tax of $86, $131, $543, and $535 | -162 | -244 | 1,007 | -994 |
Amortization of items previously recorded in accumulated other comprehensive income, net of income tax of $39, $113, $423, and $506 | 73 | 210 | 786 | 940 |
Reclassification adjustment for gains included in net income net of income tax expense of $72, $294, $35, and $747 | 135 | -549 | 65 | -1,387 |
Other Comprehensive Income, net of tax | -1,019 | 1,286 | -10,699 | 1,581 |
Comprehensive income | $9,384 | $12,522 | $22,384 | $36,393 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unrealized holding gain on securities available for sale arising during the period, income tax | $470 | $1,018 | $6,810 | $1,670 |
Unrealized loss on securities available for sale for which a portion of an other than temporary impairment has been recognized in income, tax | 103 | 12 | 48 | 43 |
Unrealized loss on cash flow hedges arising during the period, income tax | 86 | 131 | 543 | 535 |
Amortization of items previously recorded in accumulated other comprehensive income (losses), income tax | 39 | 113 | 423 | 506 |
Reclassification adjustment for gains included in net income, income tax expense | $72 | $294 | $35 | $747 |
CONSOLIDATED_CONDENSED_STATEME3
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2012 | $552,236 | $90,908 | $3,587 | $256,843 | $206,397 | ($5,499) |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 90,908 | 28,692,616 | ' | ' | ' |
Comprehensive Income | ' | ' | ' | ' | ' | ' |
Net Income | 33,083 | ' | ' | ' | 33,083 | ' |
Other Comprehensive Income, net of tax | -10,699 | ' | ' | ' | ' | -10,699 |
Cash Dividends on Common Stock ($.13 per Share) | -3,795 | ' | ' | ' | -3,795 | ' |
Cash Dividends on Preferred Stock under Small Business Lending Fund | -2,139 | ' | ' | ' | -2,139 | ' |
Preferred Stock redeemed under Small Business Lending Fund (in shares) | ' | -56,740 | ' | ' | ' | ' |
Preferred Stock redeemed under Small Business Lending Fund | -56,740 | -56,740 | ' | ' | ' | ' |
Share-based Compensation (in shares) | ' | ' | 111,761 | ' | ' | ' |
Share-based Compensation | 1,285 | ' | 14 | 1,271 | ' | ' |
Stock Issued Under Employee Benefit Plans (in shares) | ' | ' | 28,158 | ' | ' | ' |
Stock Issued Under Employee Benefit Plans | 389 | ' | 4 | 385 | ' | ' |
Stock Issued Under Dividend Reinvestment and Stock Purchase Plan (in shares) | ' | ' | 14,213 | ' | ' | ' |
Stock Issued Under Dividend Reinvestment and Stock Purchase Plan | 236 | ' | 2 | 234 | ' | ' |
Stock options exercised (in shares) | 11,250 | ' | 11,250 | ' | ' | ' |
Stock options exercised | 97 | ' | 1 | 96 | ' | ' |
Stock Redeemed (in shares) | ' | ' | -32,533 | ' | ' | ' |
Stock Redeemed | -484 | ' | -5 | -479 | ' | ' |
Ending Balance at Sep. 30, 2013 | $513,469 | $34,168 | $3,603 | $258,350 | $233,546 | ($16,198) |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 34,168 | 28,825,465 | ' | ' | ' |
CONSOLIDATED_CONDENSED_STATEME4
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Cash Dividends on Common Stock (in dollars per share) | $0.05 | $0.03 | $0.13 | $0.07 |
CONSOLIDATED_CONDENSED_STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flow From Operating Activities: | ' | ' |
Net Income | $33,083 | $34,812 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 5,632 | 14,029 |
Depreciation and amortization | 3,932 | 3,432 |
Change in deferred taxes | 12,647 | 11,239 |
Share-based compensation | 1,285 | 1,101 |
Mortgage loans originated for sale | -242,014 | -314,240 |
Proceeds from sales of mortgage loans | 259,002 | 304,393 |
Gain on acquisition | ' | -9,124 |
Gains on sales of securities available for sale | -487 | -2,134 |
Change in interest receivable | 196 | 732 |
Change in interest payable | -686 | -1,701 |
Other adjustments | -6,329 | 4,650 |
Net cash provided by operating activities | 66,261 | 47,189 |
Cash Flows from Investing Activities: | ' | ' |
Net change in interest-bearing deposits | 19,568 | 17,527 |
Purchases of: | ' | ' |
Securities available for sale | -216,731 | -129,297 |
Securities held to maturity | -9,026 | -566 |
Proceeds from sales of securities available for sale | 25,222 | 43,147 |
Proceeds from maturities of: | ' | ' |
Securities available for sale | 79,209 | 77,898 |
Securities held to maturity | 59,642 | 49,073 |
Change in Federal Reserve and Federal Home Loan Bank stock | -5 | 207 |
Net change in loans | -37,528 | -52,442 |
Net cash received from acquisition | ' | 29,113 |
Proceeds from the sale of other real estate owned | 5,574 | 4,295 |
Other adjustments | -5,569 | 351 |
Net cash provided (used) by investing activities | -79,644 | 39,306 |
Net change in : | ' | ' |
Demand and savings deposits | 69,475 | 42,994 |
Certificates of deposit and other time deposits | -160,012 | -108,807 |
Proceeds from borrowings | 215,923 | 138,127 |
Repayment of borrowings | -58,686 | -169,988 |
Cash dividends on common stock | -3,795 | -2,031 |
Cash dividends on preferred stock | -2,139 | -3,404 |
Stock issued under employee benefit plans | 389 | 354 |
Stock issued under dividend reinvestment and stock purchase plans | 236 | 143 |
Stock options exercised | 97 | 67 |
Stock redeemed | -484 | -235 |
Preferred stock redeemed (SBLF) | -56,740 | ' |
Net cash provided (used) by financing activities | 4,264 | -102,780 |
Net Change in Cash and Cash Equivalents | -9,119 | -16,285 |
Cash and Cash Equivalents, January 1 | 101,460 | 73,312 |
Cash and Cash Equivalents, September 30 | 92,341 | 57,027 |
Additional cash flow information: | ' | ' |
Interest paid | 12,683 | 20,248 |
Income tax paid | 5,378 | 5,988 |
Loans transferred to other real estate owned | 5,045 | 4,364 |
Fixed assets transferred to other real estate owned | 461 | ' |
Non-cash investing activities using trade date accounting | 713 | 3,043 |
Liabilities assumed, net of cash | ' | $166,112 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
GENERAL | |
Financial Statement Preparation | |
The significant accounting policies followed by First Merchants Corporation (the “Corporation”) and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying consolidated condensed financial statements. | |
The consolidated condensed balance sheet of the Corporation as of December 31, 2012, has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Form 10-K annual report filed with the Securities and Exchange Commission. The results of operations for the nine months ended September 30, 2013, are not necessarily indicative of the results to be expected for the year. |
Purchase_and_Assumption
Purchase and Assumption (SCB Bank) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
SCB Bank | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Purchase and Assumption | ' | ||||||||
PURCHASE AND ASSUMPTION | |||||||||
Effective February 10, 2012, First Merchants Bank, National Association (the “Bank”) assumed substantially all of the deposits and certain other liabilities and acquired certain assets of SCB Bank, a federal savings bank headquartered in Shelbyville, Indiana, from the Federal Deposit Insurance Corporation (“FDIC”), as receiver for SCB Bank (the “Acquisition”), pursuant to the terms of the Purchase and Assumption Agreement – Modified Whole Bank; All Deposits (the “Agreement”), entered into by the Bank, the FDIC as receiver of SCB Bank and the FDIC. | |||||||||
Under the terms of the Agreement, the Bank acquired $147.7 million in assets, including approximately $11.9 million of cash and cash equivalents, $18.9 million of marketable securities, $1.8 million in Federal Home Loan Bank stock, $113.0 million in loans and $2.1 million of premises and other assets. The Bank assumed approximately $135.7 million of liabilities, including approximately $125.9 million in customer deposits, $9.6 million of other borrowed money and $402,000 in other liabilities. These balances are book balances and do not reflect the fair value adjustments which are shown on the following table. The acquisition did not include any loss sharing agreement with the FDIC. | |||||||||
The bid accepted by the FDIC included no deposit premium. The assets were acquired at a discount of $29.0 million from book value. The FDIC made a payment of $17.2 million to the Bank upon the final closing date balance sheet for SCB Bank that reflected the difference between the purchase price of the assets acquired and the value of the liabilities assumed. | |||||||||
The Bank engaged in this transaction with the expectation that it would be immediately accretive and add a new market area with a demographic profile consistent with many of the current Indiana markets served by the Bank. | |||||||||
The transaction was accounted for under the acquisition method of accounting in accordance with the Business Combination topic of the FASB Accounting Standards Codification (“ASC 310-20 and 310-30”). The statement of net assets and liabilities acquired as of February 10, 2012, are presented below. The assets and liabilities of SCB were recorded at the respective acquisition date provisional fair values, and identifiable intangible assets were recorded at provisional fair value. | |||||||||
Assets | Liabilities | ||||||||
Cash and due from banks (1) | $ | 29,113 | Deposits: | ||||||
Investment securities, available for sale | 18,896 | Non-interest bearing | $ | 13,715 | |||||
Federal Home Loan Bank stock | 1,761 | NOW accounts | 14,746 | ||||||
Loans: | Savings and money market | 25,843 | |||||||
Commercial | 51,042 | Certificate of deposit | 71,605 | ||||||
Residential mortgage | 11,181 | Total Deposits | 125,909 | ||||||
Installment | 31,570 | ||||||||
Total Loans | 93,793 | Federal Home Loan Bank advances | 10,286 | ||||||
Other liabilities | 804 | ||||||||
Premises | 1,516 | Total Liabilities Assumed | $ | 136,999 | |||||
Core deposit intangible | 484 | ||||||||
Other assets | 560 | Net Gain on Acquisition | $ | 9,124 | |||||
Total Assets Purchased | $ | 146,123 | |||||||
-1 | Includes $17,200,000 cash received from the FDIC. | ||||||||
In many cases, the fair values of assets acquired and liabilities assumed were determined by estimating cash flows expected to result from those assets and liabilities and discounting them at appropriate market rates. The most significant category of assets for which this procedure was used was acquired loans. The Bank acquired the $113.0 million loan portfolio at a fair value discount of $19.2 million. The performing portion of the portfolio, $86.3 million, had an estimated fair value of $76.5 million. The excess of expected cash flows above the fair value of the performing portion of loans will be accreted to interest income over the remaining lives of the loans in accordance with ASC 310-20. Discounts or premiums on term loans are accounted for under an effective yield method. Prepayments on term loans are accounted for in the effective yield calculation. Discounts or premiums on lines of credit are treated in a straight line method over the term of the lines of credit. | |||||||||
Certain loans for which specific credit-related deterioration has occurred since origination are recorded at fair value which is derived from calculating the present value of the amounts expected to be collected. Income recognition on these loans is based on reasonable expectation about the timing and amount of cash flows to be collected. Some of the acquired loans deemed impaired and considered collateral dependent, with the timing of a sale of loan collateral indeterminate, remain on non-accrual status and have little to no accretable yield. | |||||||||
In accordance with ASC 310-30 (formerly Statement of Position (“SOP”) 03-3 as of February 10, 2012, loans acquired during 2012 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: | |||||||||
Preliminary estimate of contractually required principal and interest at acquisition | $ | 31,143 | |||||||
Preliminary estimate of contractual cash flows not expected to be collected (nonaccretable differences) | 9,688 | ||||||||
Preliminary estimate of expected cash flows at acquisition | 21,455 | ||||||||
Preliminary estimate of interest component of expected cash flows (accretable discount) | 4,152 | ||||||||
Preliminary estimate of fair value of acquired loans accounted for under ASC 310-30 | $ | 17,303 | |||||||
Pro-forma statements were determined to be impracticable due to the nature of the transaction as certain assets were not purchased. |
Investment_Securities
Investment Securities | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||||||
INVESTMENT SECURITIES | ||||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of the investment securities at the dates indicated were: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Available for sale at September 30, 2013 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 3,791 | $ | 18 | $ | 9 | $ | 3,800 | ||||||||||||||||
State and municipal | 200,662 | 4,983 | 3,463 | 202,182 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 397,687 | 6,136 | 5,654 | 398,169 | ||||||||||||||||||||
Corporate obligations | 6,335 | 5,851 | 484 | |||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 610,181 | 11,137 | 14,977 | 606,341 | ||||||||||||||||||||
Held to maturity at September 30, 2013 | ||||||||||||||||||||||||
State and municipal | 115,796 | 498 | 6 | 116,288 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 191,998 | 6,600 | 503 | 198,095 | ||||||||||||||||||||
Total held to maturity | 307,794 | 7,098 | 509 | 314,383 | ||||||||||||||||||||
Total Investment Securities | $ | 917,975 | $ | 18,235 | $ | 15,486 | $ | 920,724 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Available for sale at December 31, 2012 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 4,475 | $ | 165 | $ | 4,640 | ||||||||||||||||||
State and municipal | 148,187 | 10,025 | $ | 18 | 158,194 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 337,631 | 10,994 | 46 | 348,579 | ||||||||||||||||||||
Corporate obligations | 6,105 | 5,881 | 224 | |||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 498,104 | 21,184 | 5,945 | 513,343 | ||||||||||||||||||||
Held to maturity at December 31, 2012 | ||||||||||||||||||||||||
State and municipal | 117,227 | 5,489 | 1 | 122,715 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 243,793 | 11,681 | 15 | 255,459 | ||||||||||||||||||||
Total held to maturity | 361,020 | 17,170 | 16 | 378,174 | ||||||||||||||||||||
Total Investment Securities | $ | 859,124 | $ | 38,354 | $ | 5,961 | $ | 891,517 | ||||||||||||||||
The amortized cost and fair value of available for sale securities and held to maturity securities at September 30, 2013, 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. | ||||||||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
Maturity Distribution at September 30, 2013: | ||||||||||||||||||||||||
Due in one year or less | $ | 8,404 | $ | 8,591 | $ | 1,060 | $ | 1,061 | ||||||||||||||||
Due after one through five years | 11,972 | 12,481 | 13,116 | 13,324 | ||||||||||||||||||||
Due after five through ten years | 57,708 | 59,110 | 59,473 | 59,634 | ||||||||||||||||||||
Due after ten years | 132,704 | 126,284 | 42,147 | 42,269 | ||||||||||||||||||||
$ | 210,788 | $ | 206,466 | $ | 115,796 | $ | 116,288 | |||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 397,687 | 398,169 | 191,998 | 198,095 | ||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total Investment Securities | $ | 610,181 | $ | 606,341 | $ | 307,794 | $ | 314,383 | ||||||||||||||||
The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $375,411,000 at September 30, 2013, and $335,775,000 at December 31, 2012. | ||||||||||||||||||||||||
The book value of securities sold under agreements to repurchase amounted to $111,138,000 at September 30, 2013, and $128,094,000 at December 31, 2012. | ||||||||||||||||||||||||
Gross gains and losses on the sales and redemptions of available for sale securities, and other-than-temporary impairment (“OTTI”) losses recognized for the three and nine months ended September 30, 2013 and 2012 are shown below. | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Sales and Redemptions of Available for Sale Securities: | ||||||||||||||||||||||||
Gross gains | $ | — | $ | 843 | $ | 487 | $ | 2,134 | ||||||||||||||||
Gross losses | — | — | — | — | ||||||||||||||||||||
Other-than-temporary impairment losses | — | — | — | $ | — | |||||||||||||||||||
The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013, and December 31, 2012: | ||||||||||||||||||||||||
Less than | 12 Months | Total | ||||||||||||||||||||||
12 Months | or Longer | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Temporarily Impaired Investment | ||||||||||||||||||||||||
Securities at September 30, 2013 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 1,439 | $ | 9 | $ | 1,439 | $ | 9 | ||||||||||||||||
State and municipal | 76,681 | 3,467 | $ | 239 | $ | 2 | 76,920 | 3,469 | ||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 204,743 | 6,157 | 204,743 | 6,157 | ||||||||||||||||||||
Corporate obligations | 453 | 5,851 | 453 | 5,851 | ||||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 282,863 | $ | 9,633 | $ | 692 | $ | 5,853 | $ | 283,555 | $ | 15,486 | ||||||||||||
Less than | 12 Months | Total | ||||||||||||||||||||||
12 Months | or Longer | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||
Value | Unrealized Losses | Value | Unrealized Losses | Value | Unrealized Losses | |||||||||||||||||||
Temporarily Impaired Investment | ||||||||||||||||||||||||
Securities at December 31, 2012 | ||||||||||||||||||||||||
State and municipal | $ | 4,524 | $ | 19 | $ | 4,524 | $ | 19 | ||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 12,320 | 61 | 12,320 | 61 | ||||||||||||||||||||
Corporate obligations | $ | 194 | $ | 5,881 | 194 | 5,881 | ||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 16,844 | $ | 80 | $ | 194 | $ | 5,881 | $ | 17,038 | $ | 5,961 | ||||||||||||
Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below. | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Investments reported at less than historical cost: | ||||||||||||||||||||||||
Historical cost | $ | 299,041 | $ | 22,999 | ||||||||||||||||||||
Fair value | $ | 283,555 | $ | 17,038 | ||||||||||||||||||||
Percent of the Corporation's available for sale and held to maturity portfolio | 31 | % | 1.9 | % | ||||||||||||||||||||
The Corporation’s management has evaluated all securities with unrealized losses for other-than-temporary impairment ("OTTI") as of September 30, 2013. The evaluations are based on the nature of the securities, the extent and duration of the loss and the intent and ability of the Corporation to hold these securities either to maturity or through the expected recovery period. | ||||||||||||||||||||||||
The current unrealized losses are primarily concentrated within trust preferred securities held by the Corporation. Such investments have an amortized cost of $6.3 million and a fair value of $453,000, which is less than 1 percent of the Corporation’s entire investment portfolio. On all but one small pool investment, the Corporation utilized Moody’s to determine their fair value. | ||||||||||||||||||||||||
In determining the fair value of the trust preferred securities, the Corporation utilizes a third party for portfolio accounting services, including market value input. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor was classifying these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis and (b) actual gains or loss resulting from the sale of certain securities has proven the data to be accurate over time. | ||||||||||||||||||||||||
Discount rates used in the OTTI cash flow analysis on these variable rate securities were those margins in effect at the inception of the security added to the appropriate three-month LIBOR spot rate obtained from the forward LIBOR curve used to project future principal and interest payments. These spreads ranged from .85 percent to 1.57 percent spread over LIBOR. | ||||||||||||||||||||||||
Management believes the declines in fair value for these securities are temporary. Should any additional impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the OTTI is identified. | ||||||||||||||||||||||||
U.S. Government-Sponsored Mortgage-Backed Securities | ||||||||||||||||||||||||
The unrealized losses on the Corporation’s investment in U.S. Government-sponsored mortgage-backed securities were a result of changes in interest rates. The Corporation expects to recover the amortized cost basis over the term of the securities as the decline in market value is attributable to changes in interest rates and not credit quality. The Corporation does not intend to sell the investment and it is not more likely than not that the Corporation will be required to sell the investment before recovery of its new, lower amortized cost basis, which may be maturity. The Corporation does not consider the investment securities to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||
State and Municipal | ||||||||||||||||||||||||
The unrealized losses on the Corporation’s investments in securities of state and political subdivisions were caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Corporation does not intend to sell the investment and it is not more likely than not that the Corporation will be required to sell the investment before recovery of its new, lower amortized cost basis, which may be maturity. The Corporation does not consider the investment securities to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||
Corporate Obligations | ||||||||||||||||||||||||
The Corporation’s unrealized losses on Corporate Obligations were due to the decline in value related to the pooled trust preferred securities, and is attributable to temporary illiquidity and the financial crisis affecting these markets, coupled with the potential credit loss resulting from the adverse change in expected cash flows. Due to the illiquidity in the market, it is unlikely that the Corporation would be able to recover its investment in these securities if the Corporation sold the securities at this time. Management has analyzed the cash flow characteristics of the securities and this analysis included utilizing the most recent trustee reports and any other relevant market information, including announcements of deferrals or defaults of trust preferred securities. The Corporation compared expected discounted cash flows, based on performance indicators of the underlying assets in the security, to the carrying value of the investment to determine if OTTI existed. The Corporation does not intend to sell the investment, and it is not more likely than not that the Corporation will be required to sell the investment before recovery of its new, lower amortized cost basis, which may be maturity. The Corporation does not consider the remainder of the investment securities, which are classified as Level 3 inputs in the fair value hierarchy, to be other-than-temporarily impaired at September 30, 2013. | ||||||||||||||||||||||||
Credit Losses Recognized on Investments | ||||||||||||||||||||||||
Certain debt securities have experienced fair value deterioration due to credit losses and other market factors. The following table provides information about debt securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income. | ||||||||||||||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||
Credit Losses in | Credit Losses in | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Credit losses on debt securities held: | ||||||||||||||||||||||||
Balance, January 1 | $ | 11,355 | $ | 11,355 | ||||||||||||||||||||
Additions related to other-than-temporary losses not previously recognized | ||||||||||||||||||||||||
Balance, September 30 | $ | 11,355 | $ | 11,355 | ||||||||||||||||||||
Loans_and_Allowance
Loans and Allowance | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||
Loans and Allowance | ' | |||||||||||||||||||||||||||||
LOANS AND ALLOWANCE | ||||||||||||||||||||||||||||||
The Corporation’s primary lending focus is small business and middle market commercial, residential real estate, auto and small consumer lending, which results in portfolio diversification. The following tables show the composition in the loan portfolio, loan grades and the allowance for loan losses excluding loans held for sale. Residential real estate loans held for sale as of September 30, 2013, and December 31, 2012, were $5,312,000 and $22,300,000, respectively. | ||||||||||||||||||||||||||||||
The following table shows the composition of the Corporation’s loan portfolio by loan class for the periods indicated: | ||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 652,356 | $ | 622,579 | ||||||||||||||||||||||||||
Agricultural production financing and other loans to farmers | 98,489 | 112,527 | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 149,875 | 98,639 | ||||||||||||||||||||||||||||
Commercial and farmland | 1,264,180 | 1,266,682 | ||||||||||||||||||||||||||||
Residential | 452,277 | 473,537 | ||||||||||||||||||||||||||||
Home Equity | 206,816 | 203,406 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 70,380 | 75,748 | ||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,815 | 2,590 | ||||||||||||||||||||||||||||
Other loans | 29,269 | 46,501 | ||||||||||||||||||||||||||||
Loans | 2,925,457 | 2,902,209 | ||||||||||||||||||||||||||||
Allowance for loan losses | (66,224 | ) | (69,366 | ) | ||||||||||||||||||||||||||
Net Loans | $ | 2,859,233 | $ | 2,832,843 | ||||||||||||||||||||||||||
The Corporation maintains an allowance for loan losses to cover probable credit losses identified in the loan portfolio. The allowance is increased by the provision for loan losses and decreased by charge offs less recoveries. The provision for loan losses is a charge against earnings. All charge offs are approved by the Bank’s senior loan officers or loan committees, depending on the amount of the charge off. The Bank charges off a loan when a determination is made that all or a portion of the loan is not collectible. | ||||||||||||||||||||||||||||||
The amount provided for loan losses in a given period may be greater than or less than the net loan losses experienced during the period, and is based on management’s judgment as to the appropriate level of the allowance for loan losses. The determination of the provision amount in a given period is based on management’s ongoing review and evaluation of the loan portfolio, including an internally administered loan "watch" list and an independent loan review process. The allowance evaluation takes into consideration identified credit problems, the possibility of losses inherent in the loan portfolio that are not specifically identified and management’s judgment as to the impact of current economic conditions on the portfolio. | ||||||||||||||||||||||||||||||
Management believes that the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio as of September 30, 2013. The process for determining the adequacy of the allowance for loan losses is critical to the Corporation’s financial results. It requires management to make difficult, subjective and complex judgments, to estimate the effect of uncertain matters. The allowance for loan losses considers current factors, including economic conditions and ongoing internal and external examinations, and will increase or decrease as deemed necessary to ensure the allowance remains adequate and directionally consistent. In addition, the allowance as a percentage of charge offs and nonperforming loans will change at different points in time based on credit performance, loan mix and collateral values. | ||||||||||||||||||||||||||||||
The historical loss allocation for loans not deemed impaired according to ASC 310 is the product of the volume of loans within the non-impaired criticized and non-criticized risk grade classifications, each segmented by call code, and the historical loss factor for each respective classification and call code segment. The historical loss factors are based upon actual loss experience within each risk and call code classification. The historical look back period for non-criticized loans looks to the most recent rolling-four-quarter average and aligns with the look back period for non-impaired criticized loans. Each of the rolling four quarter periods used to obtain the average, include all charge offs for the previous twelve-month period, therefore the historical look back period includes seven quarters. The resulting allocation is reflective of current conditions. Criticized loans are grouped based on the risk grade assigned to the loan. Loans with a special mention grade are assigned a loss factor, and loans with a classified grade but not impaired are assigned a separate loss factor. The loss factor computation for this allocation includes a segmented historical loss migration analysis of criticized risk grades to charge off. | ||||||||||||||||||||||||||||||
In addition to the specific reserves and historical loss components of the allowance, consideration is given to various environmental factors to help ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. The environmental component adjusts the historical loss allocations for commercial and consumer loans to reflect relevant current conditions that, in management's opinion, have an impact on loss recognition. Environmental factors that management reviews in the analysis include: national and local economic trends and conditions; trends in growth in the loan portfolio and growth in higher risk areas; levels of, and trends in, delinquencies and non-accruals; experience and depth of lending management and staff; adequacy of, and adherence to, lending policies and procedures including those for underwriting; industry concentrations of credit; and adequacy of risk identification systems and controls through the internal loan review and internal audit processes. | ||||||||||||||||||||||||||||||
The risk characteristics of the Corporation’s material portfolio segments are as follows: | ||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||
Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | ||||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||
These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. | ||||||||||||||||||||||||||||||
Residential and Consumer | ||||||||||||||||||||||||||||||
With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, the Corporation generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. | ||||||||||||||||||||||||||||||
The following tables summarize changes in the allowance for loan losses by loan segment for the three and nine months ended September 30, 2013, and September 30, 2012: | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, July 1 | $ | 26,563 | $ | 23,605 | $ | 2,885 | $ | 15,113 | $ | 36 | $ | 68,202 | ||||||||||||||||||
Provision for losses | (346 | ) | 1,560 | (31 | ) | 333 | 17 | 1,533 | ||||||||||||||||||||||
Recoveries on loans | 1,494 | 258 | 110 | 311 | 3 | 2,176 | ||||||||||||||||||||||||
Loans charged off | (1,680 | ) | (2,795 | ) | (161 | ) | (1,051 | ) | (5,687 | ) | ||||||||||||||||||||
Balances, September 30, 2013 | $ | 26,031 | $ | 22,628 | $ | 2,803 | $ | 14,706 | $ | 56 | $ | 66,224 | ||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Provision for losses | 1,929 | 132 | 267 | 3,236 | $ | 68 | 5,632 | |||||||||||||||||||||||
Recoveries on loans | 4,050 | 3,023 | 426 | 946 | 3 | 8,448 | ||||||||||||||||||||||||
Loans charged off | (5,861 | ) | (7,230 | ) | (483 | ) | (3,633 | ) | (15 | ) | (17,222 | ) | ||||||||||||||||||
Balances, September 30, 2013 | $ | 26,031 | $ | 22,628 | $ | 2,803 | $ | 14,706 | $ | 56 | $ | 66,224 | ||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, July 1 | $ | 17,791 | $ | 35,133 | $ | 2,431 | $ | 14,788 | $ | 70,143 | ||||||||||||||||||||
Provision for losses | 5,431 | (879 | ) | 147 | (90 | ) | 4,609 | |||||||||||||||||||||||
Recoveries on loans | 526 | 1,598 | 219 | 174 | 2,517 | |||||||||||||||||||||||||
Loans charged off | (1,424 | ) | (4,439 | ) | (168 | ) | (1,745 | ) | (7,776 | ) | ||||||||||||||||||||
Balances, September 30, 2012 | $ | 22,324 | $ | 31,413 | $ | 2,629 | $ | 13,127 | $ | 69,493 | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 17,731 | $ | 37,919 | $ | 2,902 | $ | 12,343 | $ | 3 | $ | 70,898 | ||||||||||||||||||
Provision for losses | 10,333 | 149 | (14 | ) | 3,565 | (4 | ) | 14,029 | ||||||||||||||||||||||
Recoveries on loans | 1,193 | 3,462 | 595 | 968 | 1 | 6,219 | ||||||||||||||||||||||||
Loans charged off | (6,933 | ) | (10,117 | ) | (854 | ) | (3,749 | ) | (21,653 | ) | ||||||||||||||||||||
Balances, September 30, 2012 | $ | 22,324 | $ | 31,413 | $ | 2,629 | $ | 13,127 | $ | 69,493 | ||||||||||||||||||||
The following tables show the Corporation’s allowance for credit losses and loan portfolio by loan segment as of the periods indicated: | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 285 | $ | 757 | $ | 6 | $ | 1,048 | ||||||||||||||||||||||
Collectively evaluated for impairment | 25,630 | 21,560 | $ | 2,803 | 14,700 | $ | 56 | 64,749 | ||||||||||||||||||||||
Loans Acquired with Deteriorated Credit Quality | 116 | 311 | 427 | |||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 26,031 | $ | 22,628 | $ | 2,803 | $ | 14,706 | $ | 56 | $ | 66,224 | ||||||||||||||||||
Loan Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,946 | $ | 33,912 | $ | 2,839 | $ | 44,697 | ||||||||||||||||||||||
Collectively evaluated for impairment | 771,299 | 1,370,737 | $ | 70,380 | 655,842 | $ | 1,815 | 2,870,073 | ||||||||||||||||||||||
Loans Acquired with Deteriorated Credit Quality | 869 | 9,406 | 412 | 10,687 | ||||||||||||||||||||||||||
Loans | $ | 780,114 | $ | 1,414,055 | $ | 70,380 | $ | 659,093 | $ | 1,815 | $ | 2,925,457 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,628 | $ | 2,565 | $ | 50 | $ | 4,243 | ||||||||||||||||||||||
Collectively evaluated for impairment | 24,285 | 24,138 | $ | 2,593 | 14,107 | 65,123 | ||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Loan Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,190 | $ | 45,394 | $ | 8,515 | $ | 68,099 | ||||||||||||||||||||||
Collectively evaluated for impairment | 765,707 | 1,309,912 | $ | 75,748 | 667,401 | $ | 2,590 | 2,821,358 | ||||||||||||||||||||||
Loans Acquired with Deteriorated Credit Quality | 1,710 | 10,015 | 1,027 | 12,752 | ||||||||||||||||||||||||||
Loans | $ | 781,607 | $ | 1,365,321 | $ | 75,748 | $ | 676,943 | $ | 2,590 | $ | 2,902,209 | ||||||||||||||||||
Loans are reclassified to a non-accruing status when, in management’s judgment, the collateral value and financial condition of the borrower do not justify accruing interest. Interest previously recorded, but not deemed collectible, is reversed and charged against current income. Payments subsequently received on non-accrual loans are applied to principal. A loan is returned to accrual status when principal and interest are no longer past due and collectability is probable, typically after a minimum of six consecutive months of performance. Payments received on impaired accruing or delinquent loans are applied to interest income as accrued. | ||||||||||||||||||||||||||||||
The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated: | ||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 6,467 | $ | 12,195 | ||||||||||||||||||||||||||
Agriculture Production financing and other loans to farmers | 31 | |||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 2,643 | 4,814 | ||||||||||||||||||||||||||||
Commercial and farmland | 16,187 | 22,612 | ||||||||||||||||||||||||||||
Residential | 8,375 | 11,476 | ||||||||||||||||||||||||||||
Home Equity | 1,093 | 1,997 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 32 | |||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 301 | |||||||||||||||||||||||||||||
Other Loans | 164 | 4 | ||||||||||||||||||||||||||||
Total | $ | 34,992 | $ | 53,399 | ||||||||||||||||||||||||||
Commercial impaired loans include all non-accrual loans, loans accounted for under ASC 310-30 and renegotiated loans, as well as substandard, doubtful and loss grade loans that were still accruing but deemed impaired according to guidance set forth in ASC 310. Also included in impaired loans are accruing loans that are contractually past due 90 days or more. A loan is deemed impaired when, based on current information or events, it is probable that all amounts due of principal and interest according to the contractual terms of the loan agreement will not be collected. | ||||||||||||||||||||||||||||||
Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. | ||||||||||||||||||||||||||||||
The following tables show the composition of the Corporation’s commercial impaired loans by loan class for the periods indicated: | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Unpaid | Recorded | Related | ||||||||||||||||||||||||||||
Principal | Investment | Allowance | ||||||||||||||||||||||||||||
Balance | ||||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 21,683 | $ | 7,758 | ||||||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 33 | 31 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 6,161 | 3,789 | ||||||||||||||||||||||||||||
Commercial and farmland | 46,834 | 33,085 | ||||||||||||||||||||||||||||
Residential | 4,671 | 2,569 | ||||||||||||||||||||||||||||
Home equity | 3,386 | 199 | ||||||||||||||||||||||||||||
Other loans | 457 | 172 | ||||||||||||||||||||||||||||
Total | $ | 83,225 | $ | 47,603 | ||||||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,119 | $ | 853 | $ | 401 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||
Commercial and farmland | 6,520 | 5,700 | 1,068 | |||||||||||||||||||||||||||
Residential | 74 | 71 | 6 | |||||||||||||||||||||||||||
Other loans | ||||||||||||||||||||||||||||||
Total | $ | 7,713 | $ | 6,624 | $ | 1,475 | ||||||||||||||||||||||||
Total Impaired Loans | $ | 90,938 | $ | 54,227 | $ | 1,475 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Unpaid | Recorded | Related | ||||||||||||||||||||||||||||
Principal | Investment | Allowance | ||||||||||||||||||||||||||||
Balance | ||||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 28,532 | $ | 11,730 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 9,787 | 5,164 | ||||||||||||||||||||||||||||
Commercial and farmland | 58,173 | 43,204 | ||||||||||||||||||||||||||||
Residential | 8,820 | 6,215 | ||||||||||||||||||||||||||||
Home equity | 4,199 | 1,006 | ||||||||||||||||||||||||||||
Other loans | 83 | 14 | ||||||||||||||||||||||||||||
Total | $ | 109,594 | $ | 67,333 | ||||||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 4,415 | $ | 4,155 | $ | 1,628 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 1,202 | 1,058 | 105 | |||||||||||||||||||||||||||
Commercial and farmland | 5,579 | 5,182 | 2,460 | |||||||||||||||||||||||||||
Residential | 1,722 | 1,451 | 50 | |||||||||||||||||||||||||||
Total | $ | 12,918 | $ | 11,846 | $ | 4,243 | ||||||||||||||||||||||||
Total Impaired Loans | $ | 122,512 | $ | 79,179 | $ | 4,243 | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||||||||||
Recorded Investment | Income Recognized | Recorded Investment | Income Recognized | |||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 8,352 | $ | 110 | $ | 9,553 | $ | 184 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 32 | 33 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 4,115 | 29 | 4,262 | 85 | ||||||||||||||||||||||||||
Commercial and farmland | 34,298 | 620 | 35,198 | 1,642 | ||||||||||||||||||||||||||
Residential | 2,687 | 82 | 3,028 | 114 | ||||||||||||||||||||||||||
Home equity | 217 | 236 | ||||||||||||||||||||||||||||
Other loans | 174 | 184 | 1 | |||||||||||||||||||||||||||
Total | $ | 49,875 | $ | 841 | $ | 52,494 | $ | 2,026 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 865 | $ | 889 | $ | 7 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||
Commercial and farmland | 5,742 | $ | 5 | 5,844 | 5 | |||||||||||||||||||||||||
Residential | 74 | 78 | ||||||||||||||||||||||||||||
Other loans | ||||||||||||||||||||||||||||||
Total | $ | 6,681 | $ | 5 | $ | 6,811 | $ | 12 | ||||||||||||||||||||||
Total Impaired Loans | $ | 56,556 | $ | 846 | $ | 59,305 | $ | 2,038 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||||||||||
Recorded Investment | Income Recognized | Recorded Investment | Income Recognized | |||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 9,994 | $ | 26 | $ | 11,615 | $ | 68 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 300 | 300 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 6,658 | 17 | 7,665 | 47 | ||||||||||||||||||||||||||
Commercial and farmland | 31,081 | 250 | 33,459 | 706 | ||||||||||||||||||||||||||
Residential | 6,936 | 20 | 7,342 | 54 | ||||||||||||||||||||||||||
Home equity | 713 | 3 | 727 | 10 | ||||||||||||||||||||||||||
Other loans | 17 | 18 | 1 | |||||||||||||||||||||||||||
Total | $ | 55,699 | $ | 316 | $ | 61,126 | $ | 886 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 5,244 | $ | 11 | $ | 5,307 | $ | 32 | ||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 510 | 541 | ||||||||||||||||||||||||||||
Commercial and farmland | 12,326 | 32 | 12,371 | 95 | ||||||||||||||||||||||||||
Residential | 1,485 | 19 | 1,485 | 56 | ||||||||||||||||||||||||||
Total | $ | 19,565 | $ | 62 | $ | 19,704 | $ | 183 | ||||||||||||||||||||||
Total Impaired Loans | $ | 75,264 | $ | 378 | $ | 80,830 | $ | 1,069 | ||||||||||||||||||||||
As part of the ongoing monitoring of the credit quality of the Corporation's loan portfolio, management tracks certain credit quality indicators including trends related to: (i) the level of criticized commercial loans, (ii) net charge offs, (iii) non-performing loans and (iv) the general national and local economic conditions. | ||||||||||||||||||||||||||||||
The Corporation utilizes a risk grading of pass, special mention, substandard, doubtful and loss to assess the overall credit quality of large commercial loans. All large commercial credit grades are reviewed at a minimum of once a year for pass grade loans. Loans with grades below pass are reviewed more frequently depending on the grade. A description of the general characteristics of these grades is as follows: | ||||||||||||||||||||||||||||||
• | Pass - Loans that are considered to be of acceptable credit quality. | |||||||||||||||||||||||||||||
• | Special Mention - Loans which possess some credit deficiency or potential weakness, which deserves close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Corporation's credit position at some future date. Special mention assets are not adversely classified and do not expose the Corporation to sufficient risk to warrant adverse classification. The key distinctions of this category's classification are that it is indicative of an unwarranted level of risk; and weaknesses are considered “potential”, not “defined”, impairments to the primary source of repayment. Examples include businesses that may be suffering from inadequate management, loss of key personnel or significant customer or litigation. | |||||||||||||||||||||||||||||
• | Substandard - A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Other characteristics may include: | |||||||||||||||||||||||||||||
o | the likelihood that a loan will be paid from the primary source of repayment is uncertain or financial deterioration is underway and very close attention is warranted to ensure that the loan is collected without loss, | |||||||||||||||||||||||||||||
o | the primary source of repayment is gone, and the Corporation is forced to rely on a secondary source of repayment, such as collateral liquidation or guarantees, | |||||||||||||||||||||||||||||
o | loans have a distinct possibility that the Corporation will sustain some loss if deficiencies are not corrected, | |||||||||||||||||||||||||||||
o | unusual courses of action are needed to maintain a high probability of repayment, | |||||||||||||||||||||||||||||
o | the borrower is not generating enough cash flow to repay loan principal; however, it continues to make interest payments, | |||||||||||||||||||||||||||||
o | the Corporation is forced into a subordinated or unsecured position due to flaws in documentation, | |||||||||||||||||||||||||||||
o | loans have been restructured so that payment schedules, terms and collateral represent concessions to the borrower when compared to the normal loan terms, | |||||||||||||||||||||||||||||
o | the Corporation is seriously contemplating foreclosure or legal action due to the apparent deterioration of the loan, and | |||||||||||||||||||||||||||||
o | there is significant deterioration in market conditions to which the borrower is highly vulnerable. | |||||||||||||||||||||||||||||
• | Doubtful - Loans that have all of the weaknesses of those classified as Substandard. However, based on currently existing facts, conditions and values, these weaknesses make full collection of principal highly questionable and improbable. Other credit characteristics may include the primary source of repayment is gone or there is considerable doubt as to the quality of the secondary sources of repayment. The possibility of loss is high, but because of certain important pending factors that may strengthen the loan, loss classification is deferred until the exact status of repayment is known. | |||||||||||||||||||||||||||||
• | Loss – Loans that are considered uncollectible and of such little value that continuing to carry them as an asset is not warranted. Loans will be classified as Loss when it is neither practical not desirable to defer writing off or reserving all or a portion of a basically worthless asset, even though partial recovery may be possible at some time in the future. | |||||||||||||||||||||||||||||
The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class as of the periods indicated. Consumer non-performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial Substandard | Commercial | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Pass | Special | Doubtful | Non-Performing | |||||||||||||||||||||||||||
Mention | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 603,166 | $ | 18,481 | $ | 29,155 | $ | 1,554 | $ | 652,356 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 98,458 | 31 | 98,489 | |||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 142,169 | 2,752 | 4,491 | $ | 463 | 149,875 | ||||||||||||||||||||||||
Commercial and farmland | 1,163,570 | 41,954 | 58,309 | 112 | 235 | 1,264,180 | ||||||||||||||||||||||||
Residential | 139,481 | 1,504 | 10,803 | 140 | $ | 293,329 | 7,020 | 452,277 | ||||||||||||||||||||||
Home equity | 6,633 | 105 | 1,126 | 197,776 | 1,176 | 206,816 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 70,285 | 95 | 70,380 | |||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,688 | 127 | 1,815 | |||||||||||||||||||||||||||
Other loans | 29,063 | 2 | 204 | 29,269 | ||||||||||||||||||||||||||
Loans | $ | 2,184,228 | $ | 64,798 | $ | 104,246 | $ | 1,806 | $ | 561,390 | $ | 8,989 | $ | 2,925,457 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial Substandard | Commercial | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Pass | Special | Doubtful | Non-Performing | |||||||||||||||||||||||||||
Mention | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 559,852 | $ | 23,678 | $ | 34,460 | $ | 4,589 | $ | 622,579 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 112,209 | 224 | 94 | 112,527 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 85,728 | 1,384 | 11,356 | $ | 171 | 98,639 | ||||||||||||||||||||||||
Commercial and farmland | 1,148,561 | 38,199 | 79,078 | 553 | 291 | 1,266,682 | ||||||||||||||||||||||||
Residential | 145,402 | 5,437 | 13,880 | 922 | $ | 301,614 | 6,282 | 473,537 | ||||||||||||||||||||||
Home equity | 9,092 | 893 | 1,657 | 189,721 | 2,043 | 203,406 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 75,748 | 75,748 | ||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 2,289 | 301 | 2,590 | |||||||||||||||||||||||||||
Other loans | 46,473 | 28 | 46,501 | |||||||||||||||||||||||||||
Loans | $ | 2,107,317 | $ | 69,815 | $ | 140,553 | $ | 6,064 | $ | 569,372 | $ | 9,088 | $ | 2,902,209 | ||||||||||||||||
The following table shows a past due aging of the Corporation’s loan portfolio, by loan class as of September 30, 2013, and December 31, 2012: | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Current | 30-59 Days | 60-89 Days | Loans > 90 Days | Non-Accrual | Total Past Due | Total | ||||||||||||||||||||||||
Past Due | Past Due | And Accruing | & Non-Accrual | |||||||||||||||||||||||||||
Commercial and industrial loans | $ | 645,044 | $ | 845 | $ | 6,467 | $ | 7,312 | $ | 652,356 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 98,458 | 31 | 31 | 98,489 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 147,157 | $ | 75 | 2,643 | 2,718 | 149,875 | ||||||||||||||||||||||||
Commercial and farmland | 1,246,319 | 843 | $ | 831 | 16,187 | 17,861 | 1,264,180 | |||||||||||||||||||||||
Residential | 439,860 | 2,627 | 998 | 417 | 8,375 | 12,417 | 452,277 | |||||||||||||||||||||||
Home equity | 204,028 | 1,153 | 260 | 282 | 1,093 | 2,788 | 206,816 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 69,819 | 378 | 88 | 63 | 32 | 561 | 70,380 | |||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,815 | 1,815 | ||||||||||||||||||||||||||||
Other loans | 29,105 | 164 | 164 | 29,269 | ||||||||||||||||||||||||||
Loans | $ | 2,881,605 | $ | 5,846 | $ | 2,177 | $ | 837 | $ | 34,992 | $ | 43,852 | $ | 2,925,457 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Current | 30-59 Days | 60-89 Days | Loans > 90 Days | Non-Accrual | Total Past Due | Total | ||||||||||||||||||||||||
Past Due | Past Due | And Accruing | & Non-Accrual | |||||||||||||||||||||||||||
Commercial and industrial loans | $ | 607,442 | $ | 2,628 | $ | 144 | $ | 170 | $ | 12,195 | $ | 15,137 | $ | 622,579 | ||||||||||||||||
Agriculture production financing and other loans to farmers | 112,527 | 112,527 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 93,426 | 399 | 4,814 | 5,213 | 98,639 | |||||||||||||||||||||||||
Commercial and farmland | 1,238,907 | 3,276 | 1,822 | 65 | 22,612 | 27,775 | 1,266,682 | |||||||||||||||||||||||
Residential | 453,743 | 5,734 | 1,338 | 1,246 | 11,476 | 19,794 | 473,537 | |||||||||||||||||||||||
Home equity | 199,063 | 1,467 | 323 | 556 | 1,997 | 4,343 | 203,406 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 74,919 | 799 | 30 | 829 | 75,748 | |||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 2,289 | 301 | 301 | 2,590 | ||||||||||||||||||||||||||
Other loans | 46,497 | 4 | 4 | 46,501 | ||||||||||||||||||||||||||
Loans | $ | 2,828,813 | $ | 14,303 | $ | 3,657 | $ | 2,037 | $ | 53,399 | $ | 73,396 | $ | 2,902,209 | ||||||||||||||||
See the information regarding the analysis of loan loss experience in the "LOAN QUALITY/PROVISION FOR LOAN LOSSES" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as ITEM 2 of this Form 10-Q. | ||||||||||||||||||||||||||||||
On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all amounts due, including interest accrued at the original contract rate. If the payment of principal at original maturity is primarily dependent on the value of collateral, the current value of the collateral is considered in determining whether the principal will be paid. | ||||||||||||||||||||||||||||||
The following tables summarize troubled debt restructurings that occurred during the periods indicated: | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | |||||||||||||||||||||||||
Recorded | Recorded | of | Recorded | Recorded | of | |||||||||||||||||||||||||
Balance | Balance | Loans | Balance | Balance | Loans | |||||||||||||||||||||||||
Commercial and industrial loans | $ | 162 | $ | 183 | 1 | $ | 294 | $ | 315 | 5 | ||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,464 | 1,469 | 6 | 6,449 | 5,450 | 10 | ||||||||||||||||||||||||
Residential | 190 | 191 | 2 | 658 | 649 | 8 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 44 | 45 | 2 | |||||||||||||||||||||||||||
Total | $ | 1,816 | $ | 1,843 | 9 | $ | 7,445 | $ | 6,459 | 25 | ||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | |||||||||||||||||||||||||
Recorded | Recorded | of | Recorded | Recorded | of | |||||||||||||||||||||||||
Balance | Balance | Loans | Balance | Balance | Loans | |||||||||||||||||||||||||
Commercial and industrial loans | $ | 875 | $ | 1,048 | 3 | $ | 1,155 | $ | 1,327 | 6 | ||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 303 | 303 | 1 | 794 | 653 | 2 | ||||||||||||||||||||||||
Commercial and farmland | 875 | 875 | 2 | 2,967 | 2,828 | 7 | ||||||||||||||||||||||||
Residential | 239 | 241 | 4 | 2,196 | 2,063 | 19 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 90 | 117 | 4 | 90 | 117 | 4 | ||||||||||||||||||||||||
Total | $ | 2,382 | $ | 2,584 | 14 | $ | 7,202 | $ | 6,988 | 38 | ||||||||||||||||||||
Commercial and Farmland real estate loans account for 67 percent and 40 percent of the troubled debt restructured loans made in the three and nine months ended September 30, 2013, respectively. Five and twelve troubled debt restructured loans made during the three and nine months ended September 30, 2013, respectively, are in accrual status. | ||||||||||||||||||||||||||||||
The following tables show the recorded investment of troubled debt restructurings, by modification type, that occurred during the periods indicated: | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 175 | $ | 175 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,399 | 1,399 | ||||||||||||||||||||||||||||
Residential | 158 | $ | 34 | 192 | ||||||||||||||||||||||||||
Total | $ | 1,732 | $ | 34 | $ | 1,766 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 228 | $ | 63 | $ | 291 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,399 | 1,950 | 3,349 | |||||||||||||||||||||||||||
Residential | 158 | $ | 94 | 353 | 605 | |||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 26 | 26 | ||||||||||||||||||||||||||||
Total | $ | 1,785 | $ | 94 | $ | 2,392 | $ | 4,271 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,048 | $ | 1,048 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 299 | 299 | ||||||||||||||||||||||||||||
Commercial and farmland | $ | 680 | 195 | 875 | ||||||||||||||||||||||||||
Residential | 167 | 167 | ||||||||||||||||||||||||||||
Individuals loans for household and other personal expenditures | 7 | 109 | 116 | |||||||||||||||||||||||||||
Total | $ | 687 | $ | 1,818 | $ | 2,505 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 230 | $ | 1,072 | $ | 1,302 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 639 | 639 | ||||||||||||||||||||||||||||
Commercial and farmland | 1,693 | $ | 680 | 385 | 2,758 | |||||||||||||||||||||||||
Residential | 528 | 252 | 1,100 | 1,880 | ||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 7 | 109 | 116 | |||||||||||||||||||||||||||
Total | $ | 2,451 | $ | 939 | $ | 3,305 | $ | 6,695 | ||||||||||||||||||||||
The following tables summarize troubled debt restructures that occurred during the twelve months ended September 30, 2013, and September 30, 2012, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30 or more days past due. | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||
Loans | Balance | Loans | Balance | |||||||||||||||||||||||||||
Commercial and Industrial loans | 1 | $ | 18 | 1 | $ | 18 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1 | 223 | ||||||||||||||||||||||||||||
Residential | 2 | 166 | 2 | 166 | ||||||||||||||||||||||||||
Total | 3 | $ | 184 | 4 | $ | 407 | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||
Loans | Balance | Loans | Balance | |||||||||||||||||||||||||||
Commercial and Industrial loans | 3 | $ | 1,415 | 3 | $ | 1,415 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1 | 23 | 1 | 23 | ||||||||||||||||||||||||||
Residential | 7 | 371 | 11 | 2,494 | ||||||||||||||||||||||||||
Total | 11 | $ | 1,809 | 15 | $ | 3,932 | ||||||||||||||||||||||||
For potential consumer loan restructures, impairment evaluation occurs prior to modification. Any subsequent impairment is typically addressed through the charge off process, or may be addressed through a specific reserve. Consumer troubled debt restructurings are generally included in the general historical allowance for loan loss at the post modification balance. Consumer non-accrual and delinquent troubled debt restructurings are also considered in the calculation of the non-accrual and delinquency trend environmental allowance allocation. Commercial troubled debt restructured loans risk graded special mention, substandard, doubtful and loss are individually evaluated for impairment under ASC 310. Any resulting specific reserves are included in the allowance for loan losses. Commercial 30 - 89 day delinquent troubled debt restructurings are included in the calculation of the delinquency trend environmental allowance allocation. All commercial non-impaired loans, including non-accrual and 90+ day delinquents, are included in the ASC 450 loss migration analysis. |
Accounting_for_Certain_Loans_A
Accounting for Certain Loans Acquired in a Purchase | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Accounting for Certain Loans Acquired in a Purchase | ' | |||||||
ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A PURCHASE | ||||||||
The Bank acquired loans in a purchase during the year ended December 31, 2012. The following table includes the carrying amount of these loans, which are included in the balance sheet amounts of loans receivable at September 30, 2013 and December 31, 2012. | ||||||||
30-Sep-13 | December 31, 2012 | |||||||
Commercial and industrial loans | $ | 6,265 | $ | 8,542 | ||||
Agricultural production financing and other loans to farmers | 1,382 | 1,127 | ||||||
Real estate loans: | ||||||||
Construction | 8 | 58 | ||||||
Commercial and farmland | 18,553 | 24,259 | ||||||
Residential | 9,614 | 12,118 | ||||||
Home Equity | 16,529 | 18,805 | ||||||
Individuals' loans for household and other personal expenditures | 336 | 691 | ||||||
Other Loans | 164 | |||||||
Total | $ | 52,851 | $ | 65,600 | ||||
Accretable yield, or income expected to be collected, is as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-13 | 30-Sep-13 | |||||||
Beginning balance | $ | 3,959 | $ | 5,142 | ||||
Accretion | (413 | ) | (1,596 | ) | ||||
Ending balance, September 30, 2013 | $ | 3,546 | $ | 3,546 | ||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-12 | 30-Sep-12 | |||||||
Beginning balance | $ | 9,048 | $ | 9,774 | ||||
Accretion | (2,612 | ) | (3,338 | ) | ||||
Ending balance, September 30, 2012 | $ | 6,436 | $ | 6,436 | ||||
At acquisition, certain purchased loans evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. | ||||||||
Certain loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and non-accrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition, which incorporated the estimate of current key assumptions, such as default rates, severity and prepayment speeds. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||||||||
Risk Management Objective of Using Derivatives | ||||||||||||||||||||||||
The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions. | ||||||||||||||||||||||||
Cash Flow Hedges of Interest Rate Risk | ||||||||||||||||||||||||
The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of September 30, 2013 and 2012, the Corporation had five interest rate swaps with a notional amount of $56.0 million and one interest rate cap with a notional amount of $13.0 million that were designated as cash flow hedges. | ||||||||||||||||||||||||
The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2013, $26.0 million of the interest rate swaps and the $13.0 million interest rate cap were used to hedge the variable cash outflows (LIBOR-based) associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September of 2012. In addition, the remaining $30.0 million of interest rate swaps were used to hedge the variable cash outflows (LIBOR-based) associated with three Federal Home Loan Bank advances. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the nine months ended September 30, 2013, and 2012, the Corporation did not recognize any ineffectiveness. | ||||||||||||||||||||||||
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Corporation’s variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $1,355,000 from accumulated other comprehensive income to interest expense. | ||||||||||||||||||||||||
Non-designated Hedges | ||||||||||||||||||||||||
The Corporation does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Corporation provides to certain customers. The Corporation executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Corporation executes with a third party, such that the Corporation minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of September 30, 2013, the notional amount of customer-facing swaps was approximately $146,980,000. This amount is offset with third party counterparties, as described above. | ||||||||||||||||||||||||
Fair Values of Derivative Instruments on the Balance Sheet | ||||||||||||||||||||||||
The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||
Location | Location | Location | Location | |||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 421 | Other Assets | $ | 197 | Other Liabilities | $ | 1,441 | Other Liabilities | $ | 3,332 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 3,054 | Other Assets | $ | 6,103 | Other Liabilities | $ | 3,136 | Other Liabilities | $ | 6,434 | ||||||||||||
Effect of Derivative Instruments on the Income Statement | ||||||||||||||||||||||||
The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for three and nine months ended September 30, 2013, and 2012. | ||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||
Hedging Instruments under | Recognized Income on | Recognized Income on | Recognized Income on | |||||||||||||||||||||
FASB ASC 815-10 | Derivative | Derivative | Derivative | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||||||||||||
Interest rate contracts | Other income | $ | (16 | ) | $ | 249 | ||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||
Hedging Instruments under | Recognized Income on | Recognized Income on | Recognized Income on | |||||||||||||||||||||
FASB ASC 815-10 | Derivative | Derivative | Derivative | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||
Interest rate contracts | Other income | $ | (70 | ) | $ | (125 | ) | |||||||||||||||||
The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | |||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
Three Months ended | Nine Months ended | |||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||
Interest Rate Products | $ | (248 | ) | $ | (376 | ) | $ | 1,550 | $ | (1,529 | ) | |||||||||||||
The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. | ||||||||||||||||||||||||
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income | |||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
Three Months ended | Nine Months ended | |||||||||||||||||||||||
September 30, 2013 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||
Interest Expense | $ | (207 | ) | $ | (587 | ) | ||||||||||||||||||
The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s, at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-mark values with policy limitations, credit ratings and collateral pledging. | ||||||||||||||||||||||||
Credit-risk-related Contingent Features | ||||||||||||||||||||||||
The Corporation also has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well or adequate capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. | ||||||||||||||||||||||||
The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Corporation could also be declared in default on its derivative obligations. | ||||||||||||||||||||||||
As of September 30, 2013, the termination value of derivatives in a net liability position related to these agreements was $4,365,000. As of September 30, 2013, the Corporation had minimum collateral posting thresholds with certain of its derivative counterparties and had posted collateral of $4,271,000. If the Corporation had breached any of these provisions at September 30, 2013, it could have been required to settle its obligations under the agreements at their termination value. |
Disclosures_About_Fair_Value_o
Disclosures About Fair Value of Assets and Liabilities | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities | ' | |||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES | ||||||||||||||||||||||||||
The Corporation used fair value measurements to record fair value adjustments, to certain assets, and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. | ||||||||||||||||||||||||||
As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). | ||||||||||||||||||||||||||
Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability. | ||||||||||||||||||||||||||
Recurring Measurements | ||||||||||||||||||||||||||
The following table presents the fair value measurements of assets and liabilities recognized in the Consolidated Condensed Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||||||
September 30, 2013 | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other | Significant | ||||||||||||||||||||||
(Level 1) | Observable Inputs | Unobservable | ||||||||||||||||||||||||
(Level 2) | Inputs | |||||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 3,800 | $ | 3,800 | ||||||||||||||||||||||
State and municipal | 202,182 | 181,672 | $ | 20,510 | ||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 398,169 | 398,169 | ||||||||||||||||||||||||
Corporate obligations | 484 | 484 | ||||||||||||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||||||||||||
Interest rate swap asset | 3,054 | 3,054 | ||||||||||||||||||||||||
Interest rate cap | 421 | 421 | ||||||||||||||||||||||||
Interest rate swap liability | 4,577 | 4,577 | ||||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Quoted Prices in | Significant Other Observable Inputs | Significant | ||||||||||||||||||||||
Active Markets for | (Level 2) | Unobservable | ||||||||||||||||||||||||
Identical Assets | Inputs | |||||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 4,640 | $ | 4,640 | ||||||||||||||||||||||
State and municipal | 158,194 | 140,094 | $ | 18,100 | ||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 348,579 | 348,579 | ||||||||||||||||||||||||
Corporate obligations | 224 | 224 | ||||||||||||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||||||||||||
Interest rate swap asset | 6,103 | 6,103 | ||||||||||||||||||||||||
Interest rate cap | 197 | 197 | ||||||||||||||||||||||||
Interest rate swap liability | 9,766 | 9,766 | ||||||||||||||||||||||||
Following is a description of the valuation methodologies and inputs used for instruments measured at fair value on a recurring basis and recognized in the accompanying Consolidated Condensed Balance Sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques as of September 30, 2013. | ||||||||||||||||||||||||||
Available for Sale Investment Securities | ||||||||||||||||||||||||||
Where quoted, market prices are available in an active market and securities are classified within Level 1 of the valuation hierarchy. There are no securities classified within Level 1 of the hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include agencies, mortgage backs, state and municipal, and equity securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Level 3 fair value, including corporate obligations, state and municipal and equity securities, was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. | ||||||||||||||||||||||||||
Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities classified within Level 2. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. | ||||||||||||||||||||||||||
Pooled Trust Preferred Securities | ||||||||||||||||||||||||||
Pooled trust preferred securities are classified as Level 3 inputs in the fair value hierarchy. These securities were rated A or better at inception, but at September 30, 2013, Moody’s ratings on these securities ranged from Ca to C. The issuers in these securities are primarily banks, but some of the pools do include a limited number of insurance companies. On a quarterly basis, the Corporation uses an other-than-temporary impairment (“OTTI”) evaluation process to compare the present value of expected cash flows to determine whether an adverse change in cash flows has occurred. The OTTI evaluation process considers the structure and term of the collateralized debt obligation (“CDO”), interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information including announcements of interest payment deferrals or defaults of underlying trust preferred securities. Assumptions used in the evaluation process include expected future default rates and prepayments as well as recovery assumptions on defaults and deferrals. In addition, the process is used to “stress” each CDO, or make assumptions more severe than expected activity, to determine the degree to which assumptions could deteriorate before the CDO could no longer fully support repayment of the Corporation’s note class. Upon completion of the September 30, 2013 quarterly evaluation process, the conclusion was no OTTI for the three months ending September 30, 2013. No OTTI was recognized for nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||
Interest Rate Derivative Agreements | ||||||||||||||||||||||||||
See information regarding the Corporation's interest rate derivative products in NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS, included within the Notes to Consolidated Condensed Financial Statements of this Form 10-Q. | ||||||||||||||||||||||||||
The fair value of the interest rate swap and cap instruments were transferred from Level 3 to Level 2 as of March 31, 2012 due to the availability of additional valuation information. These instruments were valued using widely accepted valuation techniques including discounted cash flow analysis using observable inputs such as contractual terms and LIBOR-based rate curves. | ||||||||||||||||||||||||||
Level 3 Reconciliation | ||||||||||||||||||||||||||
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for three and nine months ended September 30, 2013, and 2012. | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Available | Interest | Interest | Interest | Available | Interest | Interest | Interest | |||||||||||||||||||
for Sale | Rate Swap | Rate | Rate Swap | for Sale | Rate Swap | Rate | Rate Swap | |||||||||||||||||||
Securities | Asset | Cap | Liability | Securities | Asset | Cap | Liability | |||||||||||||||||||
Balance at beginning of the period | $ | 17,915 | $ | 18,328 | ||||||||||||||||||||||
Total realized and unrealized gains and losses: | ||||||||||||||||||||||||||
Included in net income (loss) | ||||||||||||||||||||||||||
Included in other comprehensive income | (486 | ) | (521 | ) | ||||||||||||||||||||||
Purchases, issuances and settlements | ||||||||||||||||||||||||||
Transfers in/(out) of Level 3 | 3,905 | 3,905 | ||||||||||||||||||||||||
Principal payments/additions | (336 | ) | (714 | ) | ||||||||||||||||||||||
Ending balance at September 30, 2013 | $ | 20,998 | $ | 20,998 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Available | Interest | Interest | Interest | Available | Interest | Interest | Interest | |||||||||||||||||||
for Sale Securities | Rate Swap | Rate | Rate Swap | for Sale Securities | Rate Swap | Rate | Rate Swap Liability | |||||||||||||||||||
Asset | Cap | Liability | Asset | Cap | ||||||||||||||||||||||
Balance at beginning of the period | $ | 19,740 | $ | 20,838 | $ | 5,241 | $ | 424 | $ | (7,797 | ) | |||||||||||||||
Total realized and unrealized gains and losses: | ||||||||||||||||||||||||||
Included in net income (loss) | (860 | ) | 863 | |||||||||||||||||||||||
Included in other comprehensive income | (183 | ) | (944 | ) | 481 | (15 | ) | |||||||||||||||||||
Purchases, issuances and settlements | ||||||||||||||||||||||||||
Transfers in/(out) of Level 3 | (4,862 | ) | (409 | ) | 6,934 | |||||||||||||||||||||
Principal payments | (1,132 | ) | (1,469 | ) | ||||||||||||||||||||||
Ending balance at September 30, 2012 | $ | 18,425 | $ | 18,425 | $ | — | $ | — | $ | — | ||||||||||||||||
There were no gains or losses for the period included in earnings that were attributable to the changes in unrealized gains or losses related to assets or liabilities held at September 30, 2013 or December 31, 2012. | ||||||||||||||||||||||||||
Transfers Between Levels | ||||||||||||||||||||||||||
Transfer between Levels 1, 2 and 3 and the reasons for those transfers are as follows: | ||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Reason for Transfer | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Transfers to/(from) Level: | ||||||||||||||||||||||||||
Available for sale securities | $ | (3,905 | ) | $ | 3,905 | Selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets. | ||||||||||||||||||||
$ | (3,905 | ) | $ | 3,905 | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant Unobservable Inputs | Reason for Transfer | |||||||||||||||||||||||
Active Markets for Identical Assets | Observable Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||
Transfers to/(from) Level: | ||||||||||||||||||||||||||
Interest rate swap asset | $ | 4,862 | $ | (4,862 | ) | The interest rate swap and cap instruments were transferred from Level 3 to Level 2 as of March 31, 2012 due to the availability of additional valuation information. These instruments are valued using widely accepted valuation techniques including discounted cash flow analysis using observable inputs such as contractual terms and LIBOR-based rate curves. | ||||||||||||||||||||
Interest rate cap | 409 | (409 | ) | |||||||||||||||||||||||
Interest rate swap liability | 6,934 | (6,934 | ) | |||||||||||||||||||||||
$ | 12,205 | $ | (12,205 | ) | ||||||||||||||||||||||
Nonrecurring Measurements | ||||||||||||||||||||||||||
The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||
September 30, 2013 | Fair Value | Quoted Prices in | Significant Other | Significant Unobservable | ||||||||||||||||||||||
Active Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||
Impaired loans (collateral dependent) | $ | 8,874 | $ | 8,874 | ||||||||||||||||||||||
Other real estate owned | $ | 8,220 | $ | 8,220 | ||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Quoted Prices in | Significant Other | Significant Unobservable | ||||||||||||||||||||||
Active Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||
Impaired loans (collateral dependent) | $ | 17,703 | $ | 17,703 | ||||||||||||||||||||||
Other real estate owned | $ | 7,684 | $ | 7,684 | ||||||||||||||||||||||
Following is a description of valuation methodologies used for instruments measured at fair value on a nonrecurring basis and recognized in the Consolidated Condensed Balance Sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. | ||||||||||||||||||||||||||
Impaired Loans (collateral dependent) | ||||||||||||||||||||||||||
Loans for which it is probable that the Corporation will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. During 2013, certain impaired loans were partially charged off or re-evaluated. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. | ||||||||||||||||||||||||||
Other Real Estate Owned | ||||||||||||||||||||||||||
The fair value for impaired loans and other real estate owned is measured based on the value of the collateral securing those loans or real estate and is determined using several methods. The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. Fair value on other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions. | ||||||||||||||||||||||||||
Unobservable (Level 3) Inputs | ||||||||||||||||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2013. | ||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||||||||
State and municipal securities | $ | 20,510 | Discounted cash flow | Maturity/Call date | 1 month to 10 yrs | |||||||||||||||||||||
Blend of US Muni BQ curve | A- to BBB- | |||||||||||||||||||||||||
Discount rate | 1% - 5% | |||||||||||||||||||||||||
Corporate obligations/Equity securities | $ | 488 | Discounted cash flow | Risk free rate | 3 month LIBOR | |||||||||||||||||||||
plus Premium for illiquidity | plus 200bps | |||||||||||||||||||||||||
Impaired loans (collateral dependent) | $ | 8,874 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | 0% - 50% | |||||||||||||||||||||
Other real estate owned | $ | 8,220 | Appraisals | Discount to reflect current market conditions | 0% - 20% | |||||||||||||||||||||
Sensitivity of Significant Unobservable Inputs | ||||||||||||||||||||||||||
The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. | ||||||||||||||||||||||||||
State and Municipal Securities | ||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal securities are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input. | ||||||||||||||||||||||||||
Corporate Obligations/Equity Securities | ||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Corporation’s corporate obligations/equity securities are premiums for unrated securities and marketability discounts. Significant increases or decreases in either of those inputs in isolation would result in a significantly lower or higher fair value measurement. Generally, changes in either of those inputs will not affect the other input. | ||||||||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||||
The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Carrying | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||||||||||||||
Amount | for Identical | Other | Inputs | |||||||||||||||||||||||
Assets | Observable | |||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 92,341 | $ | 92,341 | ||||||||||||||||||||||
Interest-bearing time deposits | 18,875 | 18,875 | ||||||||||||||||||||||||
Investment securities available for sale | 606,341 | $ | 585,343 | $ | 20,998 | |||||||||||||||||||||
Investment securities held to maturity | 307,794 | 303,371 | 11,012 | |||||||||||||||||||||||
Mortgage loans held for sale | 5,312 | 5,312 | ||||||||||||||||||||||||
Loans | 2,859,233 | 2,822,465 | ||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 32,790 | 32,790 | ||||||||||||||||||||||||
Interest rate swap and cap asset | 3,475 | 3,475 | ||||||||||||||||||||||||
Interest receivable | 16,171 | 16,171 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,255,846 | $ | 2,548,183 | $ | 700,168 | ||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
Federal funds purchased | 115,938 | 115,938 | ||||||||||||||||||||||||
Securities sold under repurchase agreements | 123,935 | 124,195 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 172,292 | 173,449 | ||||||||||||||||||||||||
Subordinated debentures and term loans | 111,849 | 63,391 | ||||||||||||||||||||||||
Interest rate swap liability | 4,577 | 4,577 | ||||||||||||||||||||||||
Interest payable | 1,155 | 1,155 | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Carrying | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||||||||||||||
Amount | for Identical | Other | Inputs | |||||||||||||||||||||||
Assets | Observable | |||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 101,460 | $ | 101,460 | ||||||||||||||||||||||
Interest-bearing time deposits | 38,443 | 38,443 | ||||||||||||||||||||||||
Investment securities available for sale | 513,343 | $ | 495,015 | $ | 18,328 | |||||||||||||||||||||
Investment securities held to maturity | 361,020 | 366,590 | 11,584 | |||||||||||||||||||||||
Mortgage loans held for sale | 22,300 | 22,300 | ||||||||||||||||||||||||
Loans | 2,832,843 | 2,852,614 | ||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 32,785 | 32,785 | ||||||||||||||||||||||||
Interest rate swap and cap asset | 6,300 | 6,300 | ||||||||||||||||||||||||
Interest receivable | 16,367 | 16,367 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,346,383 | $ | 2,478,706 | $ | 865,793 | ||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
Federal funds purchased | 18,862 | 18,862 | ||||||||||||||||||||||||
Securities sold under repurchase agreements | 141,828 | 142,318 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 94,238 | 97,357 | ||||||||||||||||||||||||
Subordinated debentures and term loans | 112,161 | 62,133 | ||||||||||||||||||||||||
Interest rate swap liability | 9,766 | 9,766 | ||||||||||||||||||||||||
Interest payable | 1,841 | 1,841 | ||||||||||||||||||||||||
The following methods were used to estimate the fair value of all other financial instruments recognized in the Consolidated Condensed Balance Sheets at amounts other than fair value. | ||||||||||||||||||||||||||
Cash and due from banks: The fair value of cash and cash equivalents approximates carrying value. | ||||||||||||||||||||||||||
Interest-bearing time deposits: The fair value of interest-bearing time deposits approximates carrying value. | ||||||||||||||||||||||||||
Investment securities: Fair value is based on quoted market prices, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The fair value of certain Level III securities is estimated using discounted cash flow analysis, using interest rates currently being offered on investments with similar maturities and investment quality. | ||||||||||||||||||||||||||
Mortgage Loans Held For Sale: The carrying amount approximates fair value due to the short duration between origination and date of sale. | ||||||||||||||||||||||||||
Loans: The fair value for loans is estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. See Impaired Loans above. | ||||||||||||||||||||||||||
Federal Reserve and Federal Home Loan Bank stock: The fair value of Federal Reserve Bank and Federal Home Loan Bank stock is based on the price which it may be resold to the Federal Reserve and Federal Home Loan Bank. | ||||||||||||||||||||||||||
Derivative instruments: The fair value of the interest rate swaps reflects the estimated amounts that would have been received to terminate these contracts at the reporting date based upon pricing or valuation models applied to current market information. Interest rate caps are valued using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rose above the strike rate of the caps. The projected cash receipts on the caps are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities. | ||||||||||||||||||||||||||
Interest Receivable and Interest Payable: The fair value of interest receivables/payable approximates the carrying amount. | ||||||||||||||||||||||||||
Deposits: The fair values of noninterest-bearing and interest-bearing demand accounts and savings deposits are equal to the amount payable on demand at the balance sheet date. The carrying amounts for variable rate, fixed-term certificates of deposit approximate their fair values at the balance sheet date. Fair values for fixed-rate certificates of deposit and other time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to a schedule of aggregated expected monthly maturities on such time deposits. | ||||||||||||||||||||||||||
Federal funds purchased: The fair value of Federal Funds purchased approximates the carrying amount. | ||||||||||||||||||||||||||
Borrowings: The fair value of borrowings is estimated using a discounted cash flow calculation, based on current rates for similar debt. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||||||
The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of September 30, 2013 and 2012: | ||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Securities Available for Sale for which a Portion of Other-Than-Temporary Impairment has been Recognized in Income | Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Defined Benefit Plans | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | 17,904 | $ | (3,272 | ) | $ | (2,652 | ) | $ | (17,479 | ) | $ | (5,499 | ) | ||||||
Other comprehensive income before reclassifications | (12,646 | ) | 89 | 1,007 | (11,550 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (317 | ) | 382 | 786 | 851 | |||||||||||||||
Period change | (12,963 | ) | 89 | 1,389 | 786 | (10,699 | ) | |||||||||||||
Balance at September 30, 2013 | $ | 4,941 | $ | (3,183 | ) | $ | (1,263 | ) | $ | (16,693 | ) | $ | (16,198 | ) | ||||||
Balance at December 31, 2011 | $ | 18,244 | $ | (3,168 | ) | $ | (1,841 | ) | $ | (16,837 | ) | $ | (3,602 | ) | ||||||
Other comprehensive income before reclassifications | 3,102 | (80 | ) | (994 | ) | 2,028 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,387 | ) | 940 | (447 | ) | |||||||||||||||
Period change | 1,715 | (80 | ) | (994 | ) | 940 | 1,581 | |||||||||||||
Balance at September 30, 2012 | $ | 19,959 | $ | (3,248 | ) | $ | (2,835 | ) | $ | (15,897 | ) | $ | (2,021 | ) | ||||||
The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income For the Three Months Ended September 30, | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2013 | 2012 | Affected Line Item in the Statements of Income | |||||||||||||||||
Unrealized gains (losses) on available for sale securities (1) | ||||||||||||||||||||
Realized securities gains reclassified into income | $ | 843 | Other income - net realized gains on sales of available for sale securities | |||||||||||||||||
Related income tax expense | (294 | ) | Income tax expense | |||||||||||||||||
$ | 549 | |||||||||||||||||||
Unrealized gains (losses) on cash flow hedges (2) | ||||||||||||||||||||
Interest rate contracts | $ | (207 | ) | Interest expense - subordinated debentures and term loans | ||||||||||||||||
Related income tax benefit | 72 | Income tax expense | ||||||||||||||||||
$ | (135 | ) | ||||||||||||||||||
Unrealized gains (losses) on defined benefit plans | ||||||||||||||||||||
Amortization of net loss and prior service costs | $ | (112 | ) | $ | (323 | ) | Other expenses - salaries and employee benefits | |||||||||||||
Related income tax benefit | 39 | 113 | Income tax expense | |||||||||||||||||
$ | (73 | ) | $ | (210 | ) | |||||||||||||||
Total reclassifications for the period, net of tax | $ | (208 | ) | $ | 339 | |||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income For the Nine Months Ended September 30, | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2013 | 2012 | Affected Line Item in the Statements of Income | |||||||||||||||||
Unrealized gains (losses) on available for sale securities (1) | ||||||||||||||||||||
Realized securities gains reclassified into income | $ | 487 | $ | 2,134 | Other income - net realized gains on sales of available for sale securities | |||||||||||||||
Related income tax expense | (170 | ) | (747 | ) | Income tax expense | |||||||||||||||
$ | 317 | $ | 1,387 | |||||||||||||||||
Unrealized gains (losses) on cash flow hedges (2) | ||||||||||||||||||||
Interest rate contracts | $ | (587 | ) | Interest expense - subordinated debentures and term loans | ||||||||||||||||
Related income tax benefit | 205 | Income tax expense | ||||||||||||||||||
$ | (382 | ) | ||||||||||||||||||
Unrealized gains (losses) on defined benefit plans | ||||||||||||||||||||
Amortization of net loss and prior service costs | $ | (1,209 | ) | $ | (1,446 | ) | Other expenses - salaries and employee benefits | |||||||||||||
Related income tax benefit | 423 | 506 | Income tax expense | |||||||||||||||||
$ | (786 | ) | $ | (940 | ) | |||||||||||||||
Total reclassifications for the period, net of tax | $ | (851 | ) | 447 | ||||||||||||||||
(1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES. | ||||||||||||||||||||
(2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Share-Based Compensation | ' | |||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||||
Stock options and restricted stock awards ("RSAs") have been issued to directors, officers and other management employees under the Corporation's 1999 Long-term Equity Incentive Plan and the 2009 Long-term Equity Incentive Plan. The stock options, which have a ten year life, become 100 percent vested ranging from six months to two years and are fully exercisable when vested. Option exercise prices equal the Corporation's common stock closing price on NASDAQ on the date of grant. RSAs provide for the issuance of shares of the Corporation's common stock at no cost to the holder and generally vest after three years. The RSAs vest only if the employee is actively employed by the Corporation on the vesting date and, therefore, any unvested shares are forfeited. RSAs for employees retired from the Corporation continue to vest after retirement. Deferred stock units ("DSUs") can be credited to non-employee directors who have elected to defer payment of compensation under the Corporation's 2008 Equity Compensation Plan for Non-employee Directors. DSUs credited are equal to the restricted shares that the non-employee director would have received under the plan. As of September 30, 2013, there were no outstanding DSUs. | ||||||||||||||||
The Corporation’s 2009 Employee Stock Purchase Plan (“ESPP”) provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000. | ||||||||||||||||
Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the three and nine months ended September 30, 2013 was $475,000 and $1,285,000, respectively compared to $415,000 and $1,101,000 for the three and nine months ended September 30, 2012. Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying CONSOLIDATED CONDENSED STATEMENTS OF INCOME. | ||||||||||||||||
The estimated fair value of the stock options granted during 2013 and in prior year was calculated using a Black Scholes option pricing model. The following summarizes the assumptions used in the 2013 Black Scholes model: | ||||||||||||||||
Risk-free interest rate | 1.25 | % | ||||||||||||||
Expected price volatility | 45.68 | % | ||||||||||||||
Dividend yield | 2.96 | % | ||||||||||||||
Forfeiture rate | 4.73 | % | ||||||||||||||
Weighted-average expected life, until exercise | 7.3 years | |||||||||||||||
The Black Scholes model incorporates assumptions to value share-based awards. The risk-free rate of interest, for periods equal to the expected life of the option, is based on a U.S. government instrument over a similar contractual term of the equity instrument. Expected price volatility is based on historical volatility of the Corporation’s common stock. In addition, the Corporation generally uses historical information to determine the dividend yield and weighted-average expected life of the options until exercise. Separate groups of employees that have similar historical exercise behavior with regard to option exercise timing and forfeiture rates are considered separately for valuation and attribution purposes. | ||||||||||||||||
Share-based compensation expense recognized in the CONSOLIDATED CONDENSED STATEMENTS OF INCOME is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately five percent for the nine months ended September 30, 2013, based on historical experience. | ||||||||||||||||
The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock and ESPP Options | ||||||||||||||||
Pre-tax compensation expense | $ | 89 | $ | 71 | $ | 177 | $ | 197 | ||||||||
Income tax expense (benefit) | (17 | ) | (11 | ) | 1 | (13 | ) | |||||||||
Stock and ESPP option expense, net of income taxes | $ | 72 | $ | 60 | $ | 178 | $ | 184 | ||||||||
Restricted Stock Awards | ||||||||||||||||
Pre-tax compensation expense | $ | 386 | $ | 344 | $ | 1,108 | $ | 904 | ||||||||
Income tax benefit | (135 | ) | (104 | ) | (387 | ) | (322 | ) | ||||||||
Restricted stock awards expense, net of income taxes | $ | 251 | $ | 240 | $ | 721 | $ | 582 | ||||||||
Total Share-Based Compensation | ||||||||||||||||
Pre-tax compensation expense | $ | 475 | $ | 415 | $ | 1,285 | $ | 1,101 | ||||||||
Income tax benefit | (152 | ) | (115 | ) | (386 | ) | (335 | ) | ||||||||
Total share-based compensation expense, net of income taxes | $ | 323 | $ | 300 | $ | 899 | $ | 766 | ||||||||
As of September 30, 2013, unrecognized compensation expense related to stock options and RSAs totaling $96,000 and $2,523,000, respectively, is expected to be recognized over weighted-average periods of .54 and 1.44 years, respectively. | ||||||||||||||||
Stock option activity under the Corporation's stock option plans as of September 30, 2013 and changes during the nine months ended September 30, 2013, were as follows: | ||||||||||||||||
Number of | Weighted-Average Exercise Price | Weighted Average Remaining | Aggregate | |||||||||||||
Shares | Contractual Term | Intrinsic | ||||||||||||||
(in Years) | Value | |||||||||||||||
Outstanding at January 1, 2013 | 906,636 | $ | 21.58 | |||||||||||||
Granted | 22,500 | $ | 16.5 | |||||||||||||
Exercised | (11,250 | ) | $ | 7.9 | ||||||||||||
Canceled | (104,012 | ) | $ | 23.52 | ||||||||||||
Outstanding September 30, 2013 | 813,874 | $ | 21.46 | 3.86 | 1,464,190 | |||||||||||
Vested and Expected to Vest at September 30, 2013 | 813,874 | $ | 21.46 | 3.9 | 1,464,190 | |||||||||||
Exercisable at September 30, 2013 | 763,074 | $ | 21.98 | 3.52 | 1,277,175 | |||||||||||
The weighted-average grant date fair value was $5.73 and $3.97 for stock options granted during the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of the first nine months of 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their stock options on September 30, 2013. The amount of aggregate intrinsic value will change based on the fair market value of the Corporation's common stock. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2013 and 2012 was $106,000 and $46,000, respectively. Cash receipts of stock options exercised during this same period were $97,000 and $67,000, respectively. | ||||||||||||||||
The following table summarizes information on unvested RSAs outstanding as of September 30, 2013: | ||||||||||||||||
Number of Shares | Weighted-Average | |||||||||||||||
Grant Date Fair Value | ||||||||||||||||
Unvested RSAs at January 1, 2013 | 401,375 | $ | 9.29 | |||||||||||||
Granted | 118,954 | $ | 15.47 | |||||||||||||
Vested | (111,770 | ) | $ | 6.15 | ||||||||||||
Forfeited | (1,700 | ) | $ | 11.95 | ||||||||||||
Unvested RSAs at September 30, 2013 | 406,859 | $ | 11.94 | |||||||||||||
The grant date fair value of ESPP options was estimated at the beginning of the April 1, 2013 quarterly offering period of approximately $29,000. The ESPP options vested during the three months ending September 30, 2013, leaving no unrecognized compensation expense related to unvested ESPP options at September 30, 2013. |
Income_Tax
Income Tax | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Tax | ' | |||||||||||||||
Income Tax | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Tax Expense : | ||||||||||||||||
Currently Payable: | ||||||||||||||||
Federal | $ | (1,897 | ) | $ | 139 | $ | (1,157 | ) | $ | 1,475 | ||||||
State | ||||||||||||||||
Deferred: | ||||||||||||||||
Federal | 4,564 | 3,787 | 12,647 | 11,239 | ||||||||||||
State | ||||||||||||||||
Total Income Tax Expense | $ | 2,667 | $ | 3,926 | $ | 11,490 | $ | 12,714 | ||||||||
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||||||||||||||
Federal statutory income tax at 35% | $ | 4,575 | $ | 5,307 | $ | 15,601 | $ | 16,634 | ||||||||
Tax-exempt interest income | (1,024 | ) | (927 | ) | (2,842 | ) | (2,788 | ) | ||||||||
Stock compensation | 14 | 14 | 40 | 56 | ||||||||||||
Earnings on life insurance | (213 | ) | (240 | ) | (672 | ) | (954 | ) | ||||||||
Tax credits | (375 | ) | (19 | ) | (411 | ) | (55 | ) | ||||||||
Other | (310 | ) | (209 | ) | (226 | ) | (179 | ) | ||||||||
Actual Tax Expense | $ | 2,667 | $ | 3,926 | $ | 11,490 | $ | 12,714 | ||||||||
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||
Net Income Per Share | ' | |||||||||||||||||||||
Net Income Per Share | ||||||||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of all dilutive common share equivalents, comprised of shares issuable under the Corporation’s share-based compensation plans, and the weighted-average shares outstanding during the reporting period. | ||||||||||||||||||||||
Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of share-based awards, the amount of compensation expense, if any, for future service that the Corporation has not yet recognized, and the amount of estimated tax benefits that would be recorded in additional paid-in capital when share-based awards are exercised, are assumed to be used to repurchase common stock in the current period. | ||||||||||||||||||||||
The following table reconciles basic and diluted net income per share for the three months ended September 30, 2013 and 2012. | ||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Net Income | Weighted-Average Shares | Per Share | Net Income | Weighted-Average Shares | Per Share | |||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic net income per share: | $ | 10,403 | $ | 11,236 | ||||||||||||||||||
Less: Preferred Stock dividends and discount accretion | (430 | ) | (1,134 | ) | ||||||||||||||||||
Net income available to common stockholders | 9,973 | 28,806,809 | $ | 0.35 | 10,102 | 28,649,996 | $ | 0.35 | ||||||||||||||
Effect of dilutive stock options and warrants | 274,663 | 238,080 | ||||||||||||||||||||
Diluted net income per share: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 9,973 | 29,081,472 | $ | 0.35 | $ | 10,102 | 28,888,076 | $ | 0.35 | ||||||||||||
The following table reconciles basic and diluted net income per share for the nine months ended September 30, 2013 and 2012 . | ||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Net Income | Weighted-Average Shares | Per Share | Net Income | Weighted-Average Shares | Per Share | |||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic net income per share: | $ | 33,083 | $ | 34,812 | ||||||||||||||||||
Less: Preferred Stock dividends and discount accretion | (2,139 | ) | (3,404 | ) | ||||||||||||||||||
Net income available to common stockholders | 30,944 | 28,769,206 | $ | 1.08 | 31,408 | 28,619,186 | $ | 1.09 | ||||||||||||||
Effect of dilutive stock options and warrants | 257,260 | 200,097 | ||||||||||||||||||||
Diluted net income per share: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 30,944 | 29,026,466 | $ | 1.07 | $ | 31,408 | 28,819,283 | $ | 1.09 | ||||||||||||
Stock options to purchase 615,151 and 770,001 shares for the three months ended September 30, 2013, and 2012, respectively, were not included in the earnings per share calculation because the exercise price exceeded the average market price. Stock options to purchase 667,382 and 846,499 shares for the nine months ended September 30, 2013, and 2012, respectively, were not included in the earnings per share calculation because the exercise price exceeded the average market price. |
Impact_of_Accounting_Changes
Impact of Accounting Changes | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Impact of Accounting Changes | ' |
IMPACT OF ACCOUNTING CHANGES | |
ASU 2011-11 - Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. The ASU amends Topic 210 by requiring additional improved information to be disclosed regarding financial instruments and derivative instruments that are offset in accordance with the conditions under ASC 210-20-45 or ASC 810-10-45 or subject to an enforceable master netting arrangement or similar agreement. The amendments are effective for annual and interim reporting periods beginning on or after January 1, 2013. The amendments did not have a material impact on the Corporation's Condensed Consolidated Financial Statements. | |
ASU 2013-01- Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The ASU amends Update 2011-11 to clarify that the scope applies to derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to master netting or similar arrangements. Other types of financial assets and liabilities subject to master netting or similar arrangements are not subject to the disclosure requirements in Update 2011-11. The amendments are effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The amendments did not have a material impact on the Corporation's Condensed Consolidated Financial Statements. | |
ASU 2013-02- Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The amendments are effective prospectively for reporting periods beginning after December 15, 2012. The disclosures required by the amendment were applied retrospectively for all comparative periods presented. See NOTE 8. ACCUMULATED OTHER COMPREHENSIVE INCOME, included within the Notes to Consolidated Condensed Financial Statements of this Form 10-Q. | |
Accounting Standards Update No. 2013-04 - Liabilities (Topic 405). On February 28, 2013, FASB issued ASU 2013-04. The amendments in this Update provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. This Accounting Standards Update is the final version of Proposed Accounting Standards Update EITF12D - Liabilities (Topic 405) which has been deleted. The amendments in this Update are effective for fiscal years beginning after December 31, 2013. Early adoption is permitted. The Corporation will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. |
Business_Combinations
Business Combinations (Merger with CFS Bancorp, Inc. (Citizens)) | 9 Months Ended |
Sep. 30, 2013 | |
Merger with CFS Bancorp, Inc. (Citizens) | ' |
Business Acquisition [Line Items] | ' |
Business Combinations | ' |
BUSINESS COMBINATIONS | |
On May 13, 2013, First Merchants Corporation ("First Merchants") and CFS Bancorp, Inc. ("Citizens") entered into an Agreement of Reorganization and Merger (the "Merger Agreement"), pursuant to which, Citizens will, subject to the terms and conditions of the Merger Agreement, merge with and into First Merchants (the "Merger"), whereupon the separate corporate existence of Citizens will cease and First Merchants will survive. Immediately following the Merger, Citizens Financial Bank, a federal savings bank and wholly-owned subsidiary of Citizens, will be merged with and into First Merchants Bank, National Association, a national bank and wholly-owned subsidiary of First Merchants, with First Merchants Bank, National Association as the surviving bank. | |
Based on the closing price of First Merchants' common stock on October 31, 2013 of $18.80 per share, the transaction value is estimated at approximately $134 million. The transaction is expected to be a tax-free stock exchange for those Citizens shareholders receiving First Merchants' common stock pursuant to the Merger. Subject to customary closing conditions, the parties anticipate completing the Merger in mid-November 2013. The Boards of Directors and shareholders of both First Merchants and Citizens have approved the Merger Agreement. | |
Subject to the terms and conditions of the Merger Agreement, upon the completion of the Merger, each share of outstanding Citizens common stock, $0.01 par value per share, will be converted into 0.65 shares (the "Exchange Ratio") of First Merchants common stock, $0.125 stated value per share. The Exchange Ratio is subject to adjustments for stock splits, stock dividends, recapitalization, or similar transactions, or as otherwise described in the Merger Agreement. Immediately prior to the Merger, each outstanding share of Citizens restricted stock will automatically vest and, upon the Merger, will also be converted into First Merchants common stock pursuant to the Exchange Ratio. First Merchants will pay cash in lieu of any fractional shares of First Merchants common stock resulting from exchange of shares of Citizens common stock or restricted stock, all at a price and as adjusted pursuant to the Merger Agreement. Immediately prior to the Merger, Citizens stock options will fully vest, and, upon the Merger, all Citizens stock options will automatically convert into stock options to purchase First Merchants common stock on the same terms and conditions as were applicable under the terms of the Citizens option plan under which such Citizens options were granted and the applicable award agreements thereunder. In such a case, the number of shares of First Merchants common stock subject to such converted option will equal the product of (i) the number of shares of Citizens' common stock purchasable upon exercise of the original Citizens option and (ii) the Exchange Ratio, and rounded down to the next whole share. The price per share to exercise such converted option will equal (i) the exercise price per share of Citizens common stock under the original Citizens option divided by (ii) the Exchange Ratio, and rounded up to the nearest cent. |
Contingent_Liabilities
Contingent Liabilities | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingent Liabilities | ' |
CONTINGENT LIABILITIES | |
On April 16, 2013, First Merchants was named in a class action lawsuit in Delaware County Circuit Court challenging First Merchant's checking account practices associated with the assessment of overdraft fees. The plaintiff sought damages and other relief, including restitution and injunctive relief. First Merchants removed the case from state court to federal district court. First Merchants then filed a motion to stay the federal action pending arbitration. The motion was recently granted by the court and the action was stayed. To the extent the plaintiff desires to further pursue the matter, the plaintiff must do so through a separate arbitration proceeding. If arbitration is pursued, First Merchants believes it has meritorious defenses to the claims brought by the plaintiff. | |
On July 30, 2013, a purported shareholder of CFS Bancorp, Inc. filed a putative class action lawsuit captioned Jay Orlando v. CFS Bancorp, Inc., et al., No. 2:13-CV-00261 in U.S. District Court in the Northern District of Indiana against CFS Bancorp, Inc., its board of directors and First Merchants. The complaint generally alleged various claims of federal securities law violations and that the directors of CFS Bancorp, Inc. breached their fiduciary duties by providing materially inadequate disclosures and material disclosure omissions with respect to the proposed merger of CFS Bancorp, Inc. into First Merchants. The plaintiff seeks (1) class certification, (2) to enjoin the merger or, in the event the merger is completed before entry of a final judgment, to rescind the merger or be awarded an unspecified amount of rescissory damages, (3) compensatory damages in an unspecified amount, and (4) costs and expenses, including attorneys' fees. At this early stage of the litigation, it is not possible to assess the probability of a material adverse outcome or reasonably estimate any potential financial impact of the lawsuit on First Merchants. The defendants believe the claims against them are without merit and intend to contest the matter vigorously. On October 15, 2013, the plaintiff dismissed First Merchants as a defendant in the action without prejudice. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
On November 1, 2013, the Corporation privately placed $65 million of 6.75 percent fixed-to-floating rate subordinated notes due in 2028 and $5 million of 5 percent fixed-to-floating rate senior unsecured notes due in 2028 through U.S. Bancorp Investments, Inc. The funds were used to refinance the Corporation's $55.0 million credit facility with Bank of America, N.A., which consisted of a $50.0 million subordinated debenture and a $5.0 million term loan, both of which were scheduled to mature in February 2015. | |
The Corporation intends to apply the remaining funds from the placement to the redemption of the remaining 34,043 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock") held by the U.S. Department of the Treasury (the "Treasury") at an aggregate redemption price of $34,043,000, plus accrued but unpaid dividends. The Series B Preferred Stock was issued to the Treasury in September of 2011 as part of the Corporation's participation in the Small Business Lending Fund Program. |
Purchase_and_Assumption_Tables
Purchase and Assumption (Tables) (SCB Bank) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
SCB Bank | ' | ||||||||
Business Acquisition [Line Items] | ' | ||||||||
Assets and Liabilities of SCB Recorded at Provisional Fair Value | ' | ||||||||
The statement of net assets and liabilities acquired as of February 10, 2012, are presented below. The assets and liabilities of SCB were recorded at the respective acquisition date provisional fair values, and identifiable intangible assets were recorded at provisional fair value. | |||||||||
Assets | Liabilities | ||||||||
Cash and due from banks (1) | $ | 29,113 | Deposits: | ||||||
Investment securities, available for sale | 18,896 | Non-interest bearing | $ | 13,715 | |||||
Federal Home Loan Bank stock | 1,761 | NOW accounts | 14,746 | ||||||
Loans: | Savings and money market | 25,843 | |||||||
Commercial | 51,042 | Certificate of deposit | 71,605 | ||||||
Residential mortgage | 11,181 | Total Deposits | 125,909 | ||||||
Installment | 31,570 | ||||||||
Total Loans | 93,793 | Federal Home Loan Bank advances | 10,286 | ||||||
Other liabilities | 804 | ||||||||
Premises | 1,516 | Total Liabilities Assumed | $ | 136,999 | |||||
Core deposit intangible | 484 | ||||||||
Other assets | 560 | Net Gain on Acquisition | $ | 9,124 | |||||
Total Assets Purchased | $ | 146,123 | |||||||
-1 | Includes $17,200,000 cash received from the FDIC. | ||||||||
Acquired Loans Accounted With ASC 310 30 | ' | ||||||||
In accordance with ASC 310-30 (formerly Statement of Position (“SOP”) 03-3 as of February 10, 2012, loans acquired during 2012 for which it was probable at acquisition that all contractually required payments would not be collected are as follows: | |||||||||
Preliminary estimate of contractually required principal and interest at acquisition | $ | 31,143 | |||||||
Preliminary estimate of contractual cash flows not expected to be collected (nonaccretable differences) | 9,688 | ||||||||
Preliminary estimate of expected cash flows at acquisition | 21,455 | ||||||||
Preliminary estimate of interest component of expected cash flows (accretable discount) | 4,152 | ||||||||
Preliminary estimate of fair value of acquired loans accounted for under ASC 310-30 | $ | 17,303 | |||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Amortized Cost and Approximate Fair Values of Securities | ' | |||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair values of the investment securities at the dates indicated were: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Available for sale at September 30, 2013 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 3,791 | $ | 18 | $ | 9 | $ | 3,800 | ||||||||||||||||
State and municipal | 200,662 | 4,983 | 3,463 | 202,182 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 397,687 | 6,136 | 5,654 | 398,169 | ||||||||||||||||||||
Corporate obligations | 6,335 | 5,851 | 484 | |||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 610,181 | 11,137 | 14,977 | 606,341 | ||||||||||||||||||||
Held to maturity at September 30, 2013 | ||||||||||||||||||||||||
State and municipal | 115,796 | 498 | 6 | 116,288 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 191,998 | 6,600 | 503 | 198,095 | ||||||||||||||||||||
Total held to maturity | 307,794 | 7,098 | 509 | 314,383 | ||||||||||||||||||||
Total Investment Securities | $ | 917,975 | $ | 18,235 | $ | 15,486 | $ | 920,724 | ||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Available for sale at December 31, 2012 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 4,475 | $ | 165 | $ | 4,640 | ||||||||||||||||||
State and municipal | 148,187 | 10,025 | $ | 18 | 158,194 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 337,631 | 10,994 | 46 | 348,579 | ||||||||||||||||||||
Corporate obligations | 6,105 | 5,881 | 224 | |||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 498,104 | 21,184 | 5,945 | 513,343 | ||||||||||||||||||||
Held to maturity at December 31, 2012 | ||||||||||||||||||||||||
State and municipal | 117,227 | 5,489 | 1 | 122,715 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 243,793 | 11,681 | 15 | 255,459 | ||||||||||||||||||||
Total held to maturity | 361,020 | 17,170 | 16 | 378,174 | ||||||||||||||||||||
Total Investment Securities | $ | 859,124 | $ | 38,354 | $ | 5,961 | $ | 891,517 | ||||||||||||||||
Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity | ' | |||||||||||||||||||||||
The amortized cost and fair value of available for sale securities and held to maturity securities at September 30, 2013, 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. | ||||||||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||
Maturity Distribution at September 30, 2013: | ||||||||||||||||||||||||
Due in one year or less | $ | 8,404 | $ | 8,591 | $ | 1,060 | $ | 1,061 | ||||||||||||||||
Due after one through five years | 11,972 | 12,481 | 13,116 | 13,324 | ||||||||||||||||||||
Due after five through ten years | 57,708 | 59,110 | 59,473 | 59,634 | ||||||||||||||||||||
Due after ten years | 132,704 | 126,284 | 42,147 | 42,269 | ||||||||||||||||||||
$ | 210,788 | $ | 206,466 | $ | 115,796 | $ | 116,288 | |||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 397,687 | 398,169 | 191,998 | 198,095 | ||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total Investment Securities | $ | 610,181 | $ | 606,341 | $ | 307,794 | $ | 314,383 | ||||||||||||||||
Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities and Other Than Temporary Impairment Losses Recognized | ' | |||||||||||||||||||||||
Gross gains and losses on the sales and redemptions of available for sale securities, and other-than-temporary impairment (“OTTI”) losses recognized for the three and nine months ended September 30, 2013 and 2012 are shown below. | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Sales and Redemptions of Available for Sale Securities: | ||||||||||||||||||||||||
Gross gains | $ | — | $ | 843 | $ | 487 | $ | 2,134 | ||||||||||||||||
Gross losses | — | — | — | — | ||||||||||||||||||||
Other-than-temporary impairment losses | — | — | — | $ | — | |||||||||||||||||||
Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position | ' | |||||||||||||||||||||||
The following table shows the Corporation’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013, and December 31, 2012: | ||||||||||||||||||||||||
Less than | 12 Months | Total | ||||||||||||||||||||||
12 Months | or Longer | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | |||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Temporarily Impaired Investment | ||||||||||||||||||||||||
Securities at September 30, 2013 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 1,439 | $ | 9 | $ | 1,439 | $ | 9 | ||||||||||||||||
State and municipal | 76,681 | 3,467 | $ | 239 | $ | 2 | 76,920 | 3,469 | ||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 204,743 | 6,157 | 204,743 | 6,157 | ||||||||||||||||||||
Corporate obligations | 453 | 5,851 | 453 | 5,851 | ||||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 282,863 | $ | 9,633 | $ | 692 | $ | 5,853 | $ | 283,555 | $ | 15,486 | ||||||||||||
Less than | 12 Months | Total | ||||||||||||||||||||||
12 Months | or Longer | |||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | |||||||||||||||||||
Value | Unrealized Losses | Value | Unrealized Losses | Value | Unrealized Losses | |||||||||||||||||||
Temporarily Impaired Investment | ||||||||||||||||||||||||
Securities at December 31, 2012 | ||||||||||||||||||||||||
State and municipal | $ | 4,524 | $ | 19 | $ | 4,524 | $ | 19 | ||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 12,320 | 61 | 12,320 | 61 | ||||||||||||||||||||
Corporate obligations | $ | 194 | $ | 5,881 | 194 | 5,881 | ||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 16,844 | $ | 80 | $ | 194 | $ | 5,881 | $ | 17,038 | $ | 5,961 | ||||||||||||
Investments in Debt and Equity Securities Reported Less than Historical Cost | ' | |||||||||||||||||||||||
Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below. | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||
Investments reported at less than historical cost: | ||||||||||||||||||||||||
Historical cost | $ | 299,041 | $ | 22,999 | ||||||||||||||||||||
Fair value | $ | 283,555 | $ | 17,038 | ||||||||||||||||||||
Percent of the Corporation's available for sale and held to maturity portfolio | 31 | % | 1.9 | % | ||||||||||||||||||||
Debt Securities Credit Loss Recognized in Income, and Other Losses Recorded in Other Comprehensive Income | ' | |||||||||||||||||||||||
The following table provides information about debt securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income. | ||||||||||||||||||||||||
Accumulated | Accumulated | |||||||||||||||||||||||
Credit Losses in | Credit Losses in | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Credit losses on debt securities held: | ||||||||||||||||||||||||
Balance, January 1 | $ | 11,355 | $ | 11,355 | ||||||||||||||||||||
Additions related to other-than-temporary losses not previously recognized | ||||||||||||||||||||||||
Balance, September 30 | $ | 11,355 | $ | 11,355 | ||||||||||||||||||||
Loans_and_Allowance_Tables
Loans and Allowance (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||||
Composition of Loan Portfolio by Loan Class | ' | |||||||||||||||||||||||||||||
The following table shows the composition of the Corporation’s loan portfolio by loan class for the periods indicated: | ||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 652,356 | $ | 622,579 | ||||||||||||||||||||||||||
Agricultural production financing and other loans to farmers | 98,489 | 112,527 | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 149,875 | 98,639 | ||||||||||||||||||||||||||||
Commercial and farmland | 1,264,180 | 1,266,682 | ||||||||||||||||||||||||||||
Residential | 452,277 | 473,537 | ||||||||||||||||||||||||||||
Home Equity | 206,816 | 203,406 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 70,380 | 75,748 | ||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,815 | 2,590 | ||||||||||||||||||||||||||||
Other loans | 29,269 | 46,501 | ||||||||||||||||||||||||||||
Loans | 2,925,457 | 2,902,209 | ||||||||||||||||||||||||||||
Allowance for loan losses | (66,224 | ) | (69,366 | ) | ||||||||||||||||||||||||||
Net Loans | $ | 2,859,233 | $ | 2,832,843 | ||||||||||||||||||||||||||
Changes in Allowance for Loan Losses | ' | |||||||||||||||||||||||||||||
The following tables summarize changes in the allowance for loan losses by loan segment for the three and nine months ended September 30, 2013, and September 30, 2012: | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, July 1 | $ | 26,563 | $ | 23,605 | $ | 2,885 | $ | 15,113 | $ | 36 | $ | 68,202 | ||||||||||||||||||
Provision for losses | (346 | ) | 1,560 | (31 | ) | 333 | 17 | 1,533 | ||||||||||||||||||||||
Recoveries on loans | 1,494 | 258 | 110 | 311 | 3 | 2,176 | ||||||||||||||||||||||||
Loans charged off | (1,680 | ) | (2,795 | ) | (161 | ) | (1,051 | ) | (5,687 | ) | ||||||||||||||||||||
Balances, September 30, 2013 | $ | 26,031 | $ | 22,628 | $ | 2,803 | $ | 14,706 | $ | 56 | $ | 66,224 | ||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Provision for losses | 1,929 | 132 | 267 | 3,236 | $ | 68 | 5,632 | |||||||||||||||||||||||
Recoveries on loans | 4,050 | 3,023 | 426 | 946 | 3 | 8,448 | ||||||||||||||||||||||||
Loans charged off | (5,861 | ) | (7,230 | ) | (483 | ) | (3,633 | ) | (15 | ) | (17,222 | ) | ||||||||||||||||||
Balances, September 30, 2013 | $ | 26,031 | $ | 22,628 | $ | 2,803 | $ | 14,706 | $ | 56 | $ | 66,224 | ||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, July 1 | $ | 17,791 | $ | 35,133 | $ | 2,431 | $ | 14,788 | $ | 70,143 | ||||||||||||||||||||
Provision for losses | 5,431 | (879 | ) | 147 | (90 | ) | 4,609 | |||||||||||||||||||||||
Recoveries on loans | 526 | 1,598 | 219 | 174 | 2,517 | |||||||||||||||||||||||||
Loans charged off | (1,424 | ) | (4,439 | ) | (168 | ) | (1,745 | ) | (7,776 | ) | ||||||||||||||||||||
Balances, September 30, 2012 | $ | 22,324 | $ | 31,413 | $ | 2,629 | $ | 13,127 | $ | 69,493 | ||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 17,731 | $ | 37,919 | $ | 2,902 | $ | 12,343 | $ | 3 | $ | 70,898 | ||||||||||||||||||
Provision for losses | 10,333 | 149 | (14 | ) | 3,565 | (4 | ) | 14,029 | ||||||||||||||||||||||
Recoveries on loans | 1,193 | 3,462 | 595 | 968 | 1 | 6,219 | ||||||||||||||||||||||||
Loans charged off | (6,933 | ) | (10,117 | ) | (854 | ) | (3,749 | ) | (21,653 | ) | ||||||||||||||||||||
Balances, September 30, 2012 | $ | 22,324 | $ | 31,413 | $ | 2,629 | $ | 13,127 | $ | 69,493 | ||||||||||||||||||||
Allowance for Credit Losses and Loan Portfolio by Loan Segment | ' | |||||||||||||||||||||||||||||
The following tables show the Corporation’s allowance for credit losses and loan portfolio by loan segment as of the periods indicated: | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 285 | $ | 757 | $ | 6 | $ | 1,048 | ||||||||||||||||||||||
Collectively evaluated for impairment | 25,630 | 21,560 | $ | 2,803 | 14,700 | $ | 56 | 64,749 | ||||||||||||||||||||||
Loans Acquired with Deteriorated Credit Quality | 116 | 311 | 427 | |||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 26,031 | $ | 22,628 | $ | 2,803 | $ | 14,706 | $ | 56 | $ | 66,224 | ||||||||||||||||||
Loan Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,946 | $ | 33,912 | $ | 2,839 | $ | 44,697 | ||||||||||||||||||||||
Collectively evaluated for impairment | 771,299 | 1,370,737 | $ | 70,380 | 655,842 | $ | 1,815 | 2,870,073 | ||||||||||||||||||||||
Loans Acquired with Deteriorated Credit Quality | 869 | 9,406 | 412 | 10,687 | ||||||||||||||||||||||||||
Loans | $ | 780,114 | $ | 1,414,055 | $ | 70,380 | $ | 659,093 | $ | 1,815 | $ | 2,925,457 | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,628 | $ | 2,565 | $ | 50 | $ | 4,243 | ||||||||||||||||||||||
Collectively evaluated for impairment | 24,285 | 24,138 | $ | 2,593 | 14,107 | 65,123 | ||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Loan Balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,190 | $ | 45,394 | $ | 8,515 | $ | 68,099 | ||||||||||||||||||||||
Collectively evaluated for impairment | 765,707 | 1,309,912 | $ | 75,748 | 667,401 | $ | 2,590 | 2,821,358 | ||||||||||||||||||||||
Loans Acquired with Deteriorated Credit Quality | 1,710 | 10,015 | 1,027 | 12,752 | ||||||||||||||||||||||||||
Loans | $ | 781,607 | $ | 1,365,321 | $ | 75,748 | $ | 676,943 | $ | 2,590 | $ | 2,902,209 | ||||||||||||||||||
Summary of Non-Accrual Loans by Loan class | ' | |||||||||||||||||||||||||||||
The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated: | ||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 6,467 | $ | 12,195 | ||||||||||||||||||||||||||
Agriculture Production financing and other loans to farmers | 31 | |||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 2,643 | 4,814 | ||||||||||||||||||||||||||||
Commercial and farmland | 16,187 | 22,612 | ||||||||||||||||||||||||||||
Residential | 8,375 | 11,476 | ||||||||||||||||||||||||||||
Home Equity | 1,093 | 1,997 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 32 | |||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 301 | |||||||||||||||||||||||||||||
Other Loans | 164 | 4 | ||||||||||||||||||||||||||||
Total | $ | 34,992 | $ | 53,399 | ||||||||||||||||||||||||||
Composition of Impaired Loans by Loan Class | ' | |||||||||||||||||||||||||||||
The following tables show the composition of the Corporation’s commercial impaired loans by loan class for the periods indicated: | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Unpaid | Recorded | Related | ||||||||||||||||||||||||||||
Principal | Investment | Allowance | ||||||||||||||||||||||||||||
Balance | ||||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 21,683 | $ | 7,758 | ||||||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 33 | 31 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 6,161 | 3,789 | ||||||||||||||||||||||||||||
Commercial and farmland | 46,834 | 33,085 | ||||||||||||||||||||||||||||
Residential | 4,671 | 2,569 | ||||||||||||||||||||||||||||
Home equity | 3,386 | 199 | ||||||||||||||||||||||||||||
Other loans | 457 | 172 | ||||||||||||||||||||||||||||
Total | $ | 83,225 | $ | 47,603 | ||||||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,119 | $ | 853 | $ | 401 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||
Commercial and farmland | 6,520 | 5,700 | 1,068 | |||||||||||||||||||||||||||
Residential | 74 | 71 | 6 | |||||||||||||||||||||||||||
Other loans | ||||||||||||||||||||||||||||||
Total | $ | 7,713 | $ | 6,624 | $ | 1,475 | ||||||||||||||||||||||||
Total Impaired Loans | $ | 90,938 | $ | 54,227 | $ | 1,475 | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Unpaid | Recorded | Related | ||||||||||||||||||||||||||||
Principal | Investment | Allowance | ||||||||||||||||||||||||||||
Balance | ||||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 28,532 | $ | 11,730 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 9,787 | 5,164 | ||||||||||||||||||||||||||||
Commercial and farmland | 58,173 | 43,204 | ||||||||||||||||||||||||||||
Residential | 8,820 | 6,215 | ||||||||||||||||||||||||||||
Home equity | 4,199 | 1,006 | ||||||||||||||||||||||||||||
Other loans | 83 | 14 | ||||||||||||||||||||||||||||
Total | $ | 109,594 | $ | 67,333 | ||||||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 4,415 | $ | 4,155 | $ | 1,628 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 1,202 | 1,058 | 105 | |||||||||||||||||||||||||||
Commercial and farmland | 5,579 | 5,182 | 2,460 | |||||||||||||||||||||||||||
Residential | 1,722 | 1,451 | 50 | |||||||||||||||||||||||||||
Total | $ | 12,918 | $ | 11,846 | $ | 4,243 | ||||||||||||||||||||||||
Total Impaired Loans | $ | 122,512 | $ | 79,179 | $ | 4,243 | ||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||||||||||
Recorded Investment | Income Recognized | Recorded Investment | Income Recognized | |||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 8,352 | $ | 110 | $ | 9,553 | $ | 184 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 32 | 33 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 4,115 | 29 | 4,262 | 85 | ||||||||||||||||||||||||||
Commercial and farmland | 34,298 | 620 | 35,198 | 1,642 | ||||||||||||||||||||||||||
Residential | 2,687 | 82 | 3,028 | 114 | ||||||||||||||||||||||||||
Home equity | 217 | 236 | ||||||||||||||||||||||||||||
Other loans | 174 | 184 | 1 | |||||||||||||||||||||||||||
Total | $ | 49,875 | $ | 841 | $ | 52,494 | $ | 2,026 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial | $ | 865 | $ | 889 | $ | 7 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||
Commercial and farmland | 5,742 | $ | 5 | 5,844 | 5 | |||||||||||||||||||||||||
Residential | 74 | 78 | ||||||||||||||||||||||||||||
Other loans | ||||||||||||||||||||||||||||||
Total | $ | 6,681 | $ | 5 | $ | 6,811 | $ | 12 | ||||||||||||||||||||||
Total Impaired Loans | $ | 56,556 | $ | 846 | $ | 59,305 | $ | 2,038 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Average | Interest | Average | Interest | |||||||||||||||||||||||||||
Recorded Investment | Income Recognized | Recorded Investment | Income Recognized | |||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 9,994 | $ | 26 | $ | 11,615 | $ | 68 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 300 | 300 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 6,658 | 17 | 7,665 | 47 | ||||||||||||||||||||||||||
Commercial and farmland | 31,081 | 250 | 33,459 | 706 | ||||||||||||||||||||||||||
Residential | 6,936 | 20 | 7,342 | 54 | ||||||||||||||||||||||||||
Home equity | 713 | 3 | 727 | 10 | ||||||||||||||||||||||||||
Other loans | 17 | 18 | 1 | |||||||||||||||||||||||||||
Total | $ | 55,699 | $ | 316 | $ | 61,126 | $ | 886 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 5,244 | $ | 11 | $ | 5,307 | $ | 32 | ||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 510 | 541 | ||||||||||||||||||||||||||||
Commercial and farmland | 12,326 | 32 | 12,371 | 95 | ||||||||||||||||||||||||||
Residential | 1,485 | 19 | 1,485 | 56 | ||||||||||||||||||||||||||
Total | $ | 19,565 | $ | 62 | $ | 19,704 | $ | 183 | ||||||||||||||||||||||
Total Impaired Loans | $ | 75,264 | $ | 378 | $ | 80,830 | $ | 1,069 | ||||||||||||||||||||||
Credit Quality of Loan Portfolio by Loan Class | ' | |||||||||||||||||||||||||||||
The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class as of the periods indicated. Consumer non-performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial Substandard | Commercial | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Pass | Special | Doubtful | Non-Performing | |||||||||||||||||||||||||||
Mention | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 603,166 | $ | 18,481 | $ | 29,155 | $ | 1,554 | $ | 652,356 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 98,458 | 31 | 98,489 | |||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 142,169 | 2,752 | 4,491 | $ | 463 | 149,875 | ||||||||||||||||||||||||
Commercial and farmland | 1,163,570 | 41,954 | 58,309 | 112 | 235 | 1,264,180 | ||||||||||||||||||||||||
Residential | 139,481 | 1,504 | 10,803 | 140 | $ | 293,329 | 7,020 | 452,277 | ||||||||||||||||||||||
Home equity | 6,633 | 105 | 1,126 | 197,776 | 1,176 | 206,816 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 70,285 | 95 | 70,380 | |||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,688 | 127 | 1,815 | |||||||||||||||||||||||||||
Other loans | 29,063 | 2 | 204 | 29,269 | ||||||||||||||||||||||||||
Loans | $ | 2,184,228 | $ | 64,798 | $ | 104,246 | $ | 1,806 | $ | 561,390 | $ | 8,989 | $ | 2,925,457 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Commercial Substandard | Commercial | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Pass | Special | Doubtful | Non-Performing | |||||||||||||||||||||||||||
Mention | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 559,852 | $ | 23,678 | $ | 34,460 | $ | 4,589 | $ | 622,579 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 112,209 | 224 | 94 | 112,527 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 85,728 | 1,384 | 11,356 | $ | 171 | 98,639 | ||||||||||||||||||||||||
Commercial and farmland | 1,148,561 | 38,199 | 79,078 | 553 | 291 | 1,266,682 | ||||||||||||||||||||||||
Residential | 145,402 | 5,437 | 13,880 | 922 | $ | 301,614 | 6,282 | 473,537 | ||||||||||||||||||||||
Home equity | 9,092 | 893 | 1,657 | 189,721 | 2,043 | 203,406 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 75,748 | 75,748 | ||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 2,289 | 301 | 2,590 | |||||||||||||||||||||||||||
Other loans | 46,473 | 28 | 46,501 | |||||||||||||||||||||||||||
Loans | $ | 2,107,317 | $ | 69,815 | $ | 140,553 | $ | 6,064 | $ | 569,372 | $ | 9,088 | $ | 2,902,209 | ||||||||||||||||
Past Due Aging of Loan Portfolio by Loan Class | ' | |||||||||||||||||||||||||||||
The following table shows a past due aging of the Corporation’s loan portfolio, by loan class as of September 30, 2013, and December 31, 2012: | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||
Current | 30-59 Days | 60-89 Days | Loans > 90 Days | Non-Accrual | Total Past Due | Total | ||||||||||||||||||||||||
Past Due | Past Due | And Accruing | & Non-Accrual | |||||||||||||||||||||||||||
Commercial and industrial loans | $ | 645,044 | $ | 845 | $ | 6,467 | $ | 7,312 | $ | 652,356 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 98,458 | 31 | 31 | 98,489 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 147,157 | $ | 75 | 2,643 | 2,718 | 149,875 | ||||||||||||||||||||||||
Commercial and farmland | 1,246,319 | 843 | $ | 831 | 16,187 | 17,861 | 1,264,180 | |||||||||||||||||||||||
Residential | 439,860 | 2,627 | 998 | 417 | 8,375 | 12,417 | 452,277 | |||||||||||||||||||||||
Home equity | 204,028 | 1,153 | 260 | 282 | 1,093 | 2,788 | 206,816 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 69,819 | 378 | 88 | 63 | 32 | 561 | 70,380 | |||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,815 | 1,815 | ||||||||||||||||||||||||||||
Other loans | 29,105 | 164 | 164 | 29,269 | ||||||||||||||||||||||||||
Loans | $ | 2,881,605 | $ | 5,846 | $ | 2,177 | $ | 837 | $ | 34,992 | $ | 43,852 | $ | 2,925,457 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Current | 30-59 Days | 60-89 Days | Loans > 90 Days | Non-Accrual | Total Past Due | Total | ||||||||||||||||||||||||
Past Due | Past Due | And Accruing | & Non-Accrual | |||||||||||||||||||||||||||
Commercial and industrial loans | $ | 607,442 | $ | 2,628 | $ | 144 | $ | 170 | $ | 12,195 | $ | 15,137 | $ | 622,579 | ||||||||||||||||
Agriculture production financing and other loans to farmers | 112,527 | 112,527 | ||||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 93,426 | 399 | 4,814 | 5,213 | 98,639 | |||||||||||||||||||||||||
Commercial and farmland | 1,238,907 | 3,276 | 1,822 | 65 | 22,612 | 27,775 | 1,266,682 | |||||||||||||||||||||||
Residential | 453,743 | 5,734 | 1,338 | 1,246 | 11,476 | 19,794 | 473,537 | |||||||||||||||||||||||
Home equity | 199,063 | 1,467 | 323 | 556 | 1,997 | 4,343 | 203,406 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 74,919 | 799 | 30 | 829 | 75,748 | |||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 2,289 | 301 | 301 | 2,590 | ||||||||||||||||||||||||||
Other loans | 46,497 | 4 | 4 | 46,501 | ||||||||||||||||||||||||||
Loans | $ | 2,828,813 | $ | 14,303 | $ | 3,657 | $ | 2,037 | $ | 53,399 | $ | 73,396 | $ | 2,902,209 | ||||||||||||||||
Summary of Troubled Debt Restructurings | ' | |||||||||||||||||||||||||||||
The following tables summarize troubled debt restructurings that occurred during the periods indicated: | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | |||||||||||||||||||||||||
Recorded | Recorded | of | Recorded | Recorded | of | |||||||||||||||||||||||||
Balance | Balance | Loans | Balance | Balance | Loans | |||||||||||||||||||||||||
Commercial and industrial loans | $ | 162 | $ | 183 | 1 | $ | 294 | $ | 315 | 5 | ||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,464 | 1,469 | 6 | 6,449 | 5,450 | 10 | ||||||||||||||||||||||||
Residential | 190 | 191 | 2 | 658 | 649 | 8 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 44 | 45 | 2 | |||||||||||||||||||||||||||
Total | $ | 1,816 | $ | 1,843 | 9 | $ | 7,445 | $ | 6,459 | 25 | ||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | Pre-Modification | Post-Modification | Number | |||||||||||||||||||||||||
Recorded | Recorded | of | Recorded | Recorded | of | |||||||||||||||||||||||||
Balance | Balance | Loans | Balance | Balance | Loans | |||||||||||||||||||||||||
Commercial and industrial loans | $ | 875 | $ | 1,048 | 3 | $ | 1,155 | $ | 1,327 | 6 | ||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 303 | 303 | 1 | 794 | 653 | 2 | ||||||||||||||||||||||||
Commercial and farmland | 875 | 875 | 2 | 2,967 | 2,828 | 7 | ||||||||||||||||||||||||
Residential | 239 | 241 | 4 | 2,196 | 2,063 | 19 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 90 | 117 | 4 | 90 | 117 | 4 | ||||||||||||||||||||||||
Total | $ | 2,382 | $ | 2,584 | 14 | $ | 7,202 | $ | 6,988 | 38 | ||||||||||||||||||||
Summary of Troubled Debt Restructurings and Subsequent Defaults | ' | |||||||||||||||||||||||||||||
The following tables show the recorded investment of troubled debt restructurings, by modification type, that occurred during the periods indicated: | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 175 | $ | 175 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,399 | 1,399 | ||||||||||||||||||||||||||||
Residential | 158 | $ | 34 | 192 | ||||||||||||||||||||||||||
Total | $ | 1,732 | $ | 34 | $ | 1,766 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 228 | $ | 63 | $ | 291 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,399 | 1,950 | 3,349 | |||||||||||||||||||||||||||
Residential | 158 | $ | 94 | 353 | 605 | |||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 26 | 26 | ||||||||||||||||||||||||||||
Total | $ | 1,785 | $ | 94 | $ | 2,392 | $ | 4,271 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,048 | $ | 1,048 | ||||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 299 | 299 | ||||||||||||||||||||||||||||
Commercial and farmland | $ | 680 | 195 | 875 | ||||||||||||||||||||||||||
Residential | 167 | 167 | ||||||||||||||||||||||||||||
Individuals loans for household and other personal expenditures | 7 | 109 | 116 | |||||||||||||||||||||||||||
Total | $ | 687 | $ | 1,818 | $ | 2,505 | ||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 230 | $ | 1,072 | $ | 1,302 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Construction | 639 | 639 | ||||||||||||||||||||||||||||
Commercial and farmland | 1,693 | $ | 680 | 385 | 2,758 | |||||||||||||||||||||||||
Residential | 528 | 252 | 1,100 | 1,880 | ||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 7 | 109 | 116 | |||||||||||||||||||||||||||
Total | $ | 2,451 | $ | 939 | $ | 3,305 | $ | 6,695 | ||||||||||||||||||||||
Commercial Non-Impaired Loans Included in ASC 450 Loss Migration Analysis | ' | |||||||||||||||||||||||||||||
The following tables summarize troubled debt restructures that occurred during the twelve months ended September 30, 2013, and September 30, 2012, that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this schedule, a loan is considered in default if it is 30 or more days past due. | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||
Loans | Balance | Loans | Balance | |||||||||||||||||||||||||||
Commercial and Industrial loans | 1 | $ | 18 | 1 | $ | 18 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1 | 223 | ||||||||||||||||||||||||||||
Residential | 2 | 166 | 2 | 166 | ||||||||||||||||||||||||||
Total | 3 | $ | 184 | 4 | $ | 407 | ||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||
Loans | Balance | Loans | Balance | |||||||||||||||||||||||||||
Commercial and Industrial loans | 3 | $ | 1,415 | 3 | $ | 1,415 | ||||||||||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1 | 23 | 1 | 23 | ||||||||||||||||||||||||||
Residential | 7 | 371 | 11 | 2,494 | ||||||||||||||||||||||||||
Total | 11 | $ | 1,809 | 15 | $ | 3,932 | ||||||||||||||||||||||||
Accounting_for_Certain_Loans_A1
Accounting for Certain Loans Acquired in a Purchase (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Carrying Values of Certain Loans Acquired in a Transfer Not Accounted for as Debt Securities | ' | |||||||
The following table includes the carrying amount of these loans, which are included in the balance sheet amounts of loans receivable at September 30, 2013 and December 31, 2012. | ||||||||
30-Sep-13 | December 31, 2012 | |||||||
Commercial and industrial loans | $ | 6,265 | $ | 8,542 | ||||
Agricultural production financing and other loans to farmers | 1,382 | 1,127 | ||||||
Real estate loans: | ||||||||
Construction | 8 | 58 | ||||||
Commercial and farmland | 18,553 | 24,259 | ||||||
Residential | 9,614 | 12,118 | ||||||
Home Equity | 16,529 | 18,805 | ||||||
Individuals' loans for household and other personal expenditures | 336 | 691 | ||||||
Other Loans | 164 | |||||||
Total | $ | 52,851 | $ | 65,600 | ||||
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement | ' | |||||||
Accretable yield, or income expected to be collected, is as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-13 | 30-Sep-13 | |||||||
Beginning balance | $ | 3,959 | $ | 5,142 | ||||
Accretion | (413 | ) | (1,596 | ) | ||||
Ending balance, September 30, 2013 | $ | 3,546 | $ | 3,546 | ||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-12 | 30-Sep-12 | |||||||
Beginning balance | $ | 9,048 | $ | 9,774 | ||||
Accretion | (2,612 | ) | (3,338 | ) | ||||
Ending balance, September 30, 2012 | $ | 6,436 | $ | 6,436 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet | ' | |||||||||||||||||||||||
The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | |||||||||||||||||||||
Balance | Fair | Balance | Fair | Balance | Fair | Balance | Fair | |||||||||||||||||
Sheet | Value | Sheet | Value | Sheet | Value | Sheet | Value | |||||||||||||||||
Location | Location | Location | Location | |||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 421 | Other Assets | $ | 197 | Other Liabilities | $ | 1,441 | Other Liabilities | $ | 3,332 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 3,054 | Other Assets | $ | 6,103 | Other Liabilities | $ | 3,136 | Other Liabilities | $ | 6,434 | ||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | |||||||||||||||||||||||
The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for three and nine months ended September 30, 2013, and 2012. | ||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||
Hedging Instruments under | Recognized Income on | Recognized Income on | Recognized Income on | |||||||||||||||||||||
FASB ASC 815-10 | Derivative | Derivative | Derivative | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||||||||||||
Interest rate contracts | Other income | $ | (16 | ) | $ | 249 | ||||||||||||||||||
Derivatives Not Designated as | Location of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | |||||||||||||||||||||
Hedging Instruments under | Recognized Income on | Recognized Income on | Recognized Income on | |||||||||||||||||||||
FASB ASC 815-10 | Derivative | Derivative | Derivative | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||
Interest rate contracts | Other income | $ | (70 | ) | $ | (125 | ) | |||||||||||||||||
The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | |||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
Three Months ended | Nine Months ended | |||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||
Interest Rate Products | $ | (248 | ) | $ | (376 | ) | $ | 1,550 | $ | (1,529 | ) | |||||||||||||
The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. | ||||||||||||||||||||||||
Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income | |||||||||||||||||||||||
(Effective Portion) | ||||||||||||||||||||||||
Three Months ended | Nine Months ended | |||||||||||||||||||||||
September 30, 2013 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||||||||||||||
Interest Expense | $ | (207 | ) | $ | (587 | ) |
Disclosures_About_Fair_Value_o1
Disclosures About Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||
Fair Value Measurements of Assets and Liabilities Recognized in Consolidated Condensed Balance Sheets Measured at Fair Value | ' | |||||||||||||||||||||||||
The following table presents the fair value measurements of assets and liabilities recognized in the Consolidated Condensed Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||||||
September 30, 2013 | Fair Value | Quoted Prices in Active Markets for Identical Assets | Significant Other | Significant | ||||||||||||||||||||||
(Level 1) | Observable Inputs | Unobservable | ||||||||||||||||||||||||
(Level 2) | Inputs | |||||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 3,800 | $ | 3,800 | ||||||||||||||||||||||
State and municipal | 202,182 | 181,672 | $ | 20,510 | ||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 398,169 | 398,169 | ||||||||||||||||||||||||
Corporate obligations | 484 | 484 | ||||||||||||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||||||||||||
Interest rate swap asset | 3,054 | 3,054 | ||||||||||||||||||||||||
Interest rate cap | 421 | 421 | ||||||||||||||||||||||||
Interest rate swap liability | 4,577 | 4,577 | ||||||||||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Quoted Prices in | Significant Other Observable Inputs | Significant | ||||||||||||||||||||||
Active Markets for | (Level 2) | Unobservable | ||||||||||||||||||||||||
Identical Assets | Inputs | |||||||||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 4,640 | $ | 4,640 | ||||||||||||||||||||||
State and municipal | 158,194 | 140,094 | $ | 18,100 | ||||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 348,579 | 348,579 | ||||||||||||||||||||||||
Corporate obligations | 224 | 224 | ||||||||||||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||||||||||||
Interest rate swap asset | 6,103 | 6,103 | ||||||||||||||||||||||||
Interest rate cap | 197 | 197 | ||||||||||||||||||||||||
Interest rate swap liability | 9,766 | 9,766 | ||||||||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in Consolidated Condensed Balance Sheets using Significant Unobservable Level 3 Inputs | ' | |||||||||||||||||||||||||
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for three and nine months ended September 30, 2013, and 2012. | ||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Available | Interest | Interest | Interest | Available | Interest | Interest | Interest | |||||||||||||||||||
for Sale | Rate Swap | Rate | Rate Swap | for Sale | Rate Swap | Rate | Rate Swap | |||||||||||||||||||
Securities | Asset | Cap | Liability | Securities | Asset | Cap | Liability | |||||||||||||||||||
Balance at beginning of the period | $ | 17,915 | $ | 18,328 | ||||||||||||||||||||||
Total realized and unrealized gains and losses: | ||||||||||||||||||||||||||
Included in net income (loss) | ||||||||||||||||||||||||||
Included in other comprehensive income | (486 | ) | (521 | ) | ||||||||||||||||||||||
Purchases, issuances and settlements | ||||||||||||||||||||||||||
Transfers in/(out) of Level 3 | 3,905 | 3,905 | ||||||||||||||||||||||||
Principal payments/additions | (336 | ) | (714 | ) | ||||||||||||||||||||||
Ending balance at September 30, 2013 | $ | 20,998 | $ | 20,998 | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Available | Interest | Interest | Interest | Available | Interest | Interest | Interest | |||||||||||||||||||
for Sale Securities | Rate Swap | Rate | Rate Swap | for Sale Securities | Rate Swap | Rate | Rate Swap Liability | |||||||||||||||||||
Asset | Cap | Liability | Asset | Cap | ||||||||||||||||||||||
Balance at beginning of the period | $ | 19,740 | $ | 20,838 | $ | 5,241 | $ | 424 | $ | (7,797 | ) | |||||||||||||||
Total realized and unrealized gains and losses: | ||||||||||||||||||||||||||
Included in net income (loss) | (860 | ) | 863 | |||||||||||||||||||||||
Included in other comprehensive income | (183 | ) | (944 | ) | 481 | (15 | ) | |||||||||||||||||||
Purchases, issuances and settlements | ||||||||||||||||||||||||||
Transfers in/(out) of Level 3 | (4,862 | ) | (409 | ) | 6,934 | |||||||||||||||||||||
Principal payments | (1,132 | ) | (1,469 | ) | ||||||||||||||||||||||
Ending balance at September 30, 2012 | $ | 18,425 | $ | 18,425 | $ | — | $ | — | $ | — | ||||||||||||||||
Transfer Between Levels 1, 2 and 3 and Reasons For Transfers | ' | |||||||||||||||||||||||||
Transfer between Levels 1, 2 and 3 and the reasons for those transfers are as follows: | ||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Reason for Transfer | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Transfers to/(from) Level: | ||||||||||||||||||||||||||
Available for sale securities | $ | (3,905 | ) | $ | 3,905 | Selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets. | ||||||||||||||||||||
$ | (3,905 | ) | $ | 3,905 | ||||||||||||||||||||||
Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant Unobservable Inputs | Reason for Transfer | |||||||||||||||||||||||
Active Markets for Identical Assets | Observable Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||
Transfers to/(from) Level: | ||||||||||||||||||||||||||
Interest rate swap asset | $ | 4,862 | $ | (4,862 | ) | The interest rate swap and cap instruments were transferred from Level 3 to Level 2 as of March 31, 2012 due to the availability of additional valuation information. These instruments are valued using widely accepted valuation techniques including discounted cash flow analysis using observable inputs such as contractual terms and LIBOR-based rate curves. | ||||||||||||||||||||
Interest rate cap | 409 | (409 | ) | |||||||||||||||||||||||
Interest rate swap liability | 6,934 | (6,934 | ) | |||||||||||||||||||||||
$ | 12,205 | $ | (12,205 | ) | ||||||||||||||||||||||
Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in Consolidated Condensed Balance Sheets | ' | |||||||||||||||||||||||||
The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||
September 30, 2013 | Fair Value | Quoted Prices in | Significant Other | Significant Unobservable | ||||||||||||||||||||||
Active Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||
Impaired loans (collateral dependent) | $ | 8,874 | $ | 8,874 | ||||||||||||||||||||||
Other real estate owned | $ | 8,220 | $ | 8,220 | ||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||
December 31, 2012 | Fair Value | Quoted Prices in | Significant Other | Significant Unobservable | ||||||||||||||||||||||
Active Markets for | Observable | Inputs | ||||||||||||||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||||||||||||||
(Level 1) | (Level 2) | |||||||||||||||||||||||||
Impaired loans (collateral dependent) | $ | 17,703 | $ | 17,703 | ||||||||||||||||||||||
Other real estate owned | $ | 7,684 | $ | 7,684 | ||||||||||||||||||||||
Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill | ' | |||||||||||||||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2013. | ||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||||||||
State and municipal securities | $ | 20,510 | Discounted cash flow | Maturity/Call date | 1 month to 10 yrs | |||||||||||||||||||||
Blend of US Muni BQ curve | A- to BBB- | |||||||||||||||||||||||||
Discount rate | 1% - 5% | |||||||||||||||||||||||||
Corporate obligations/Equity securities | $ | 488 | Discounted cash flow | Risk free rate | 3 month LIBOR | |||||||||||||||||||||
plus Premium for illiquidity | plus 200bps | |||||||||||||||||||||||||
Impaired loans (collateral dependent) | $ | 8,874 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | 0% - 50% | |||||||||||||||||||||
Other real estate owned | $ | 8,220 | Appraisals | Discount to reflect current market conditions | 0% - 20% | |||||||||||||||||||||
Estimated Fair Values of Financial Instruments | ' | |||||||||||||||||||||||||
The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2013, and December 31, 2012. | ||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||
(unaudited) | ||||||||||||||||||||||||||
Carrying | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||||||||||||||
Amount | for Identical | Other | Inputs | |||||||||||||||||||||||
Assets | Observable | |||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 92,341 | $ | 92,341 | ||||||||||||||||||||||
Interest-bearing time deposits | 18,875 | 18,875 | ||||||||||||||||||||||||
Investment securities available for sale | 606,341 | $ | 585,343 | $ | 20,998 | |||||||||||||||||||||
Investment securities held to maturity | 307,794 | 303,371 | 11,012 | |||||||||||||||||||||||
Mortgage loans held for sale | 5,312 | 5,312 | ||||||||||||||||||||||||
Loans | 2,859,233 | 2,822,465 | ||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 32,790 | 32,790 | ||||||||||||||||||||||||
Interest rate swap and cap asset | 3,475 | 3,475 | ||||||||||||||||||||||||
Interest receivable | 16,171 | 16,171 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,255,846 | $ | 2,548,183 | $ | 700,168 | ||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
Federal funds purchased | 115,938 | 115,938 | ||||||||||||||||||||||||
Securities sold under repurchase agreements | 123,935 | 124,195 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 172,292 | 173,449 | ||||||||||||||||||||||||
Subordinated debentures and term loans | 111,849 | 63,391 | ||||||||||||||||||||||||
Interest rate swap liability | 4,577 | 4,577 | ||||||||||||||||||||||||
Interest payable | 1,155 | 1,155 | ||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Carrying | Quoted Prices in Active Markets | Significant | Significant Unobservable | |||||||||||||||||||||||
Amount | for Identical | Other | Inputs | |||||||||||||||||||||||
Assets | Observable | |||||||||||||||||||||||||
Inputs | ||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Cash and due from banks | $ | 101,460 | $ | 101,460 | ||||||||||||||||||||||
Interest-bearing time deposits | 38,443 | 38,443 | ||||||||||||||||||||||||
Investment securities available for sale | 513,343 | $ | 495,015 | $ | 18,328 | |||||||||||||||||||||
Investment securities held to maturity | 361,020 | 366,590 | 11,584 | |||||||||||||||||||||||
Mortgage loans held for sale | 22,300 | 22,300 | ||||||||||||||||||||||||
Loans | 2,832,843 | 2,852,614 | ||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock | 32,785 | 32,785 | ||||||||||||||||||||||||
Interest rate swap and cap asset | 6,300 | 6,300 | ||||||||||||||||||||||||
Interest receivable | 16,367 | 16,367 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 3,346,383 | $ | 2,478,706 | $ | 865,793 | ||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||
Federal funds purchased | 18,862 | 18,862 | ||||||||||||||||||||||||
Securities sold under repurchase agreements | 141,828 | 142,318 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 94,238 | 97,357 | ||||||||||||||||||||||||
Subordinated debentures and term loans | 112,161 | 62,133 | ||||||||||||||||||||||||
Interest rate swap liability | 9,766 | 9,766 | ||||||||||||||||||||||||
Interest payable | 1,841 | 1,841 | ||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||
The following table summarizes the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, as of September 30, 2013 and 2012: | ||||||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||||||
Unrealized Gains (Losses) on Securities Available for Sale | Unrealized Gains (Losses) on Securities Available for Sale for which a Portion of Other-Than-Temporary Impairment has been Recognized in Income | Unrealized Gains (Losses) on Cash Flow Hedges | Unrealized Gains (Losses) on Defined Benefit Plans | Total | ||||||||||||||||
Balance at December 31, 2012 | $ | 17,904 | $ | (3,272 | ) | $ | (2,652 | ) | $ | (17,479 | ) | $ | (5,499 | ) | ||||||
Other comprehensive income before reclassifications | (12,646 | ) | 89 | 1,007 | (11,550 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (317 | ) | 382 | 786 | 851 | |||||||||||||||
Period change | (12,963 | ) | 89 | 1,389 | 786 | (10,699 | ) | |||||||||||||
Balance at September 30, 2013 | $ | 4,941 | $ | (3,183 | ) | $ | (1,263 | ) | $ | (16,693 | ) | $ | (16,198 | ) | ||||||
Balance at December 31, 2011 | $ | 18,244 | $ | (3,168 | ) | $ | (1,841 | ) | $ | (16,837 | ) | $ | (3,602 | ) | ||||||
Other comprehensive income before reclassifications | 3,102 | (80 | ) | (994 | ) | 2,028 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (1,387 | ) | 940 | (447 | ) | |||||||||||||||
Period change | 1,715 | (80 | ) | (994 | ) | 940 | 1,581 | |||||||||||||
Balance at September 30, 2012 | $ | 19,959 | $ | (3,248 | ) | $ | (2,835 | ) | $ | (15,897 | ) | $ | (2,021 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||||||
The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income For the Three Months Ended September 30, | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2013 | 2012 | Affected Line Item in the Statements of Income | |||||||||||||||||
Unrealized gains (losses) on available for sale securities (1) | ||||||||||||||||||||
Realized securities gains reclassified into income | $ | 843 | Other income - net realized gains on sales of available for sale securities | |||||||||||||||||
Related income tax expense | (294 | ) | Income tax expense | |||||||||||||||||
$ | 549 | |||||||||||||||||||
Unrealized gains (losses) on cash flow hedges (2) | ||||||||||||||||||||
Interest rate contracts | $ | (207 | ) | Interest expense - subordinated debentures and term loans | ||||||||||||||||
Related income tax benefit | 72 | Income tax expense | ||||||||||||||||||
$ | (135 | ) | ||||||||||||||||||
Unrealized gains (losses) on defined benefit plans | ||||||||||||||||||||
Amortization of net loss and prior service costs | $ | (112 | ) | $ | (323 | ) | Other expenses - salaries and employee benefits | |||||||||||||
Related income tax benefit | 39 | 113 | Income tax expense | |||||||||||||||||
$ | (73 | ) | $ | (210 | ) | |||||||||||||||
Total reclassifications for the period, net of tax | $ | (208 | ) | $ | 339 | |||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income For the Nine Months Ended September 30, | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2013 | 2012 | Affected Line Item in the Statements of Income | |||||||||||||||||
Unrealized gains (losses) on available for sale securities (1) | ||||||||||||||||||||
Realized securities gains reclassified into income | $ | 487 | $ | 2,134 | Other income - net realized gains on sales of available for sale securities | |||||||||||||||
Related income tax expense | (170 | ) | (747 | ) | Income tax expense | |||||||||||||||
$ | 317 | $ | 1,387 | |||||||||||||||||
Unrealized gains (losses) on cash flow hedges (2) | ||||||||||||||||||||
Interest rate contracts | $ | (587 | ) | Interest expense - subordinated debentures and term loans | ||||||||||||||||
Related income tax benefit | 205 | Income tax expense | ||||||||||||||||||
$ | (382 | ) | ||||||||||||||||||
Unrealized gains (losses) on defined benefit plans | ||||||||||||||||||||
Amortization of net loss and prior service costs | $ | (1,209 | ) | $ | (1,446 | ) | Other expenses - salaries and employee benefits | |||||||||||||
Related income tax benefit | 423 | 506 | Income tax expense | |||||||||||||||||
$ | (786 | ) | $ | (940 | ) | |||||||||||||||
Total reclassifications for the period, net of tax | $ | (851 | ) | 447 | ||||||||||||||||
(1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES. | ||||||||||||||||||||
(2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Assumptions Used in the Black Scholes Model | ' | |||||||||||||||
The estimated fair value of the stock options granted during 2013 and in prior year was calculated using a Black Scholes option pricing model. The following summarizes the assumptions used in the 2013 Black Scholes model: | ||||||||||||||||
Risk-free interest rate | 1.25 | % | ||||||||||||||
Expected price volatility | 45.68 | % | ||||||||||||||
Dividend yield | 2.96 | % | ||||||||||||||
Forfeiture rate | 4.73 | % | ||||||||||||||
Weighted-average expected life, until exercise | 7.3 years | |||||||||||||||
Components of Share Based Compensation Awards | ' | |||||||||||||||
The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock and ESPP Options | ||||||||||||||||
Pre-tax compensation expense | $ | 89 | $ | 71 | $ | 177 | $ | 197 | ||||||||
Income tax expense (benefit) | (17 | ) | (11 | ) | 1 | (13 | ) | |||||||||
Stock and ESPP option expense, net of income taxes | $ | 72 | $ | 60 | $ | 178 | $ | 184 | ||||||||
Restricted Stock Awards | ||||||||||||||||
Pre-tax compensation expense | $ | 386 | $ | 344 | $ | 1,108 | $ | 904 | ||||||||
Income tax benefit | (135 | ) | (104 | ) | (387 | ) | (322 | ) | ||||||||
Restricted stock awards expense, net of income taxes | $ | 251 | $ | 240 | $ | 721 | $ | 582 | ||||||||
Total Share-Based Compensation | ||||||||||||||||
Pre-tax compensation expense | $ | 475 | $ | 415 | $ | 1,285 | $ | 1,101 | ||||||||
Income tax benefit | (152 | ) | (115 | ) | (386 | ) | (335 | ) | ||||||||
Total share-based compensation expense, net of income taxes | $ | 323 | $ | 300 | $ | 899 | $ | 766 | ||||||||
Stock Option Activity Under Stock Option Plans | ' | |||||||||||||||
Stock option activity under the Corporation's stock option plans as of September 30, 2013 and changes during the nine months ended September 30, 2013, were as follows: | ||||||||||||||||
Number of | Weighted-Average Exercise Price | Weighted Average Remaining | Aggregate | |||||||||||||
Shares | Contractual Term | Intrinsic | ||||||||||||||
(in Years) | Value | |||||||||||||||
Outstanding at January 1, 2013 | 906,636 | $ | 21.58 | |||||||||||||
Granted | 22,500 | $ | 16.5 | |||||||||||||
Exercised | (11,250 | ) | $ | 7.9 | ||||||||||||
Canceled | (104,012 | ) | $ | 23.52 | ||||||||||||
Outstanding September 30, 2013 | 813,874 | $ | 21.46 | 3.86 | 1,464,190 | |||||||||||
Vested and Expected to Vest at September 30, 2013 | 813,874 | $ | 21.46 | 3.9 | 1,464,190 | |||||||||||
Exercisable at September 30, 2013 | 763,074 | $ | 21.98 | 3.52 | 1,277,175 | |||||||||||
Unvested RSAs Outstanding | ' | |||||||||||||||
The following table summarizes information on unvested RSAs outstanding as of September 30, 2013: | ||||||||||||||||
Number of Shares | Weighted-Average | |||||||||||||||
Grant Date Fair Value | ||||||||||||||||
Unvested RSAs at January 1, 2013 | 401,375 | $ | 9.29 | |||||||||||||
Granted | 118,954 | $ | 15.47 | |||||||||||||
Vested | (111,770 | ) | $ | 6.15 | ||||||||||||
Forfeited | (1,700 | ) | $ | 11.95 | ||||||||||||
Unvested RSAs at September 30, 2013 | 406,859 | $ | 11.94 | |||||||||||||
Income_Tax_Tables
Income Tax (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Tax | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income Tax Expense : | ||||||||||||||||
Currently Payable: | ||||||||||||||||
Federal | $ | (1,897 | ) | $ | 139 | $ | (1,157 | ) | $ | 1,475 | ||||||
State | ||||||||||||||||
Deferred: | ||||||||||||||||
Federal | 4,564 | 3,787 | 12,647 | 11,239 | ||||||||||||
State | ||||||||||||||||
Total Income Tax Expense | $ | 2,667 | $ | 3,926 | $ | 11,490 | $ | 12,714 | ||||||||
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||||||||||||||
Federal statutory income tax at 35% | $ | 4,575 | $ | 5,307 | $ | 15,601 | $ | 16,634 | ||||||||
Tax-exempt interest income | (1,024 | ) | (927 | ) | (2,842 | ) | (2,788 | ) | ||||||||
Stock compensation | 14 | 14 | 40 | 56 | ||||||||||||
Earnings on life insurance | (213 | ) | (240 | ) | (672 | ) | (954 | ) | ||||||||
Tax credits | (375 | ) | (19 | ) | (411 | ) | (55 | ) | ||||||||
Other | (310 | ) | (209 | ) | (226 | ) | (179 | ) | ||||||||
Actual Tax Expense | $ | 2,667 | $ | 3,926 | $ | 11,490 | $ | 12,714 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||||||||
Net Income Per Share | ' | |||||||||||||||||||||
The following table reconciles basic and diluted net income per share for the three months ended September 30, 2013 and 2012. | ||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Net Income | Weighted-Average Shares | Per Share | Net Income | Weighted-Average Shares | Per Share | |||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic net income per share: | $ | 10,403 | $ | 11,236 | ||||||||||||||||||
Less: Preferred Stock dividends and discount accretion | (430 | ) | (1,134 | ) | ||||||||||||||||||
Net income available to common stockholders | 9,973 | 28,806,809 | $ | 0.35 | 10,102 | 28,649,996 | $ | 0.35 | ||||||||||||||
Effect of dilutive stock options and warrants | 274,663 | 238,080 | ||||||||||||||||||||
Diluted net income per share: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 9,973 | 29,081,472 | $ | 0.35 | $ | 10,102 | 28,888,076 | $ | 0.35 | ||||||||||||
The following table reconciles basic and diluted net income per share for the nine months ended September 30, 2013 and 2012 . | ||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Net Income | Weighted-Average Shares | Per Share | Net Income | Weighted-Average Shares | Per Share | |||||||||||||||||
Amount | Amount | |||||||||||||||||||||
Basic net income per share: | $ | 33,083 | $ | 34,812 | ||||||||||||||||||
Less: Preferred Stock dividends and discount accretion | (2,139 | ) | (3,404 | ) | ||||||||||||||||||
Net income available to common stockholders | 30,944 | 28,769,206 | $ | 1.08 | 31,408 | 28,619,186 | $ | 1.09 | ||||||||||||||
Effect of dilutive stock options and warrants | 257,260 | 200,097 | ||||||||||||||||||||
Diluted net income per share: | ||||||||||||||||||||||
Net income available to common stockholders | $ | 30,944 | 29,026,466 | $ | 1.07 | $ | 31,408 | 28,819,283 | $ | 1.09 | ||||||||||||
Purchase_and_Assumption_Additi
Purchase and Assumption - Additional Information (Details) (SCB Bank, USD $) | Feb. 10, 2012 |
Business Acquisition [Line Items] | ' |
Assets acquired | $146,123,000 |
Marketable securities | 18,896,000 |
Acquired loan portfolio | 113,000,000 |
Liabilities absorbed | 136,999,000 |
Assets acquired, discount | 29,000,000 |
Cash received from FDIC that reflects the difference between the purchase price of the assets acquired and the value of the liabilities assumed | 17,200,000 |
Loan portfolio acquired, fair value discount | 19,200,000 |
Performing portion of the acquired loan portfolio | 86,300,000 |
Performing portion of loan portfolio, fair value | 76,500,000 |
Book value of assets and liabilities acquired | ' |
Business Acquisition [Line Items] | ' |
Assets acquired | 147,700,000 |
Cash and cash equivalents | 11,900,000 |
Marketable securities | 18,900,000 |
Federal Home Loan Bank stock | 1,800,000 |
Acquired loan portfolio | 113,000,000 |
Premises and other assets | 2,100,000 |
Liabilities absorbed | 135,700,000 |
Customer deposits | 125,900,000 |
Other borrowed money | 9,600,000 |
Other liabilities | $402,000 |
Purchase_and_Assumption_Assets
Purchase and Assumption - Assets and Liabilities of SCB Recorded at Provisional Fair Value (Details) (USD $) | 9 Months Ended | 1 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | Feb. 10, 2012 | |
SCB Bank | SCB Bank | SCB Bank | SCB Bank | SCB Bank | SCB Bank | SCB Bank | SCB Bank | ||||
Commercial | Residential mortgage | Installment | Non-interest bearing | NOW accounts | Savings and money market | Certificates of deposit | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | ' | ' | $29,113 | [1] | ' | ' | ' | ' | ' | ' | ' |
Investment securities, available for sale | ' | ' | 18,896 | ' | ' | ' | ' | ' | ' | ' | |
Federal Home Loan Bank stock | ' | ' | 1,761 | ' | ' | ' | ' | ' | ' | ' | |
Loans | ' | ' | 93,793 | 51,042 | 11,181 | 31,570 | ' | ' | ' | ' | |
Premises | ' | ' | 1,516 | ' | ' | ' | ' | ' | ' | ' | |
Core deposit intangible | ' | ' | 484 | ' | ' | ' | ' | ' | ' | ' | |
Other assets | ' | ' | 560 | ' | ' | ' | ' | ' | ' | ' | |
Total Assets Purchased | ' | ' | 146,123 | ' | ' | ' | ' | ' | ' | ' | |
Deposits | ' | ' | 125,909 | ' | ' | ' | 13,715 | 14,746 | 25,843 | 71,605 | |
Federal Home Loan Bank advances | ' | ' | 10,286 | ' | ' | ' | ' | ' | ' | ' | |
Other liabilities | ' | ' | 804 | ' | ' | ' | ' | ' | ' | ' | |
Total Liabilities Assumed | ' | ' | 136,999 | ' | ' | ' | ' | ' | ' | ' | |
Net Gain on Acquisition | ' | $9,124 | $9,124 | ' | ' | ' | ' | ' | ' | ' | |
[1] | Includes $17,200,000 cash received from the FDIC. |
Purchase_and_Assumption_Assets1
Purchase and Assumption - Assets and Liabilities of SCB Recorded at Provisional Fair Value (Parenthetical) (Details) (SCB Bank, USD $) | Feb. 10, 2012 |
In Thousands, unless otherwise specified | |
SCB Bank | ' |
Business Acquisition [Line Items] | ' |
Cash received from FDIC | $17,200 |
Purchase_and_Assumption_Acquir
Purchase and Assumption - Acquired Loans Accounted With ASC 310 30 (Details) (SCB Bank, USD $) | Feb. 10, 2012 |
In Thousands, unless otherwise specified | |
SCB Bank | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' |
Preliminary estimate of contractually required principal and interest at acquisition | $31,143 |
Preliminary estimate of contractual cash flows not expected to be collected (nonaccretable differences) | 9,688 |
Preliminary estimate of expected cash flows at acquisition | 21,455 |
Preliminary estimate of interest component of expected cash flows (accretable discount) | 4,152 |
Preliminary estimate of fair value of acquired loans accounted for under ASC 310-30 | $17,303 |
Investment_Securities_Amortize
Investment Securities - Amortized Cost and Approximate Fair Value of Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost - Available for sale securities | $610,181 | $498,104 |
Gross Unrealized Gains - Available for sale securities | 11,137 | 21,184 |
Gross Unrealized Losses - Available for sale securities | 14,977 | 5,945 |
Investment securities available for sale | 606,341 | 513,343 |
Amortized Cost - Held to maturity securities | 307,794 | 361,020 |
Gross Unrealized Gains - Held to maturity securities | 7,098 | 17,170 |
Gross Unrealized Losses - Held to maturity securities | 509 | 16 |
Investment securities held to maturity - fair value | 314,383 | 378,174 |
Amortized Cost - Total Investment Securities | 917,975 | 859,124 |
Gross Unrealized Gains - Total Investment Securities | 18,235 | 38,354 |
Gross Unrealized Losses - Total Investment Securities | 15,486 | 5,961 |
Fair Value - Total Investment Securities | 920,724 | 891,517 |
U.S. Government-sponsored agency securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost - Available for sale securities | 3,791 | 4,475 |
Gross Unrealized Gains - Available for sale securities | 18 | 165 |
Gross Unrealized Losses - Available for sale securities | 9 | ' |
Investment securities available for sale | 3,800 | 4,640 |
State and municipal | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost - Available for sale securities | 200,662 | 148,187 |
Gross Unrealized Gains - Available for sale securities | 4,983 | 10,025 |
Gross Unrealized Losses - Available for sale securities | 3,463 | 18 |
Investment securities available for sale | 202,182 | 158,194 |
Amortized Cost - Held to maturity securities | 115,796 | 117,227 |
Gross Unrealized Gains - Held to maturity securities | 498 | 5,489 |
Gross Unrealized Losses - Held to maturity securities | 6 | 1 |
Investment securities held to maturity - fair value | 116,288 | 122,715 |
U.S. Government-sponsored mortgage-backed securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost - Available for sale securities | 397,687 | 337,631 |
Gross Unrealized Gains - Available for sale securities | 6,136 | 10,994 |
Gross Unrealized Losses - Available for sale securities | 5,654 | 46 |
Investment securities available for sale | 398,169 | 348,579 |
Amortized Cost - Held to maturity securities | 191,998 | 243,793 |
Gross Unrealized Gains - Held to maturity securities | 6,600 | 11,681 |
Gross Unrealized Losses - Held to maturity securities | 503 | 15 |
Investment securities held to maturity - fair value | 198,095 | 255,459 |
Corporate obligations | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost - Available for sale securities | 6,335 | 6,105 |
Gross Unrealized Losses - Available for sale securities | 5,851 | 5,881 |
Investment securities available for sale | 484 | 224 |
Equity securities | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' |
Amortized Cost - Available for sale securities | 1,706 | 1,706 |
Investment securities available for sale | $1,706 | $1,706 |
Investment_Securities_Amortize1
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available for Sale | ' | ' |
Due in one year or less - Amortized Cost | $8,404 | ' |
Due after one through five years - Amortized Cost | 11,972 | ' |
Due after five through ten years - Amortized Cost | 57,708 | ' |
Due after ten years - Amortized Cost | 132,704 | ' |
Total debt securities with a single maturity date - Amortized Cost | 210,788 | ' |
Total Investment Securities - Amortized Cost | 610,181 | ' |
Due in one year or less - Fair Value | 8,591 | ' |
Due after one through five years - Fair Value | 12,481 | ' |
Due after five through ten years - Fair Value | 59,110 | ' |
Due after ten years - Fair Value | 126,284 | ' |
Total debt securities with a single maturity date - Fair Value | 206,466 | ' |
Total Investment Securities - Fair Value | 606,341 | ' |
Held to Maturity | ' | ' |
Due in one year or less - Amortized Cost | 1,060 | ' |
Due after one through five years - Amortized Cost | 13,116 | ' |
Due after five through ten years - Amortized Cost | 59,473 | ' |
Due after ten years - Amortized Cost | 42,147 | ' |
Total debt securities with a single maturity date - Amortized Cost | 115,796 | ' |
Total Investment Securities - Amortized Cost | 307,794 | 361,020 |
Due in one year or less - Fair Value | 1,061 | ' |
Due after one through five years - Fair Value | 13,324 | ' |
Due after five through ten years - Fair Value | 59,634 | ' |
Due after ten years - Fair Value | 42,269 | ' |
Total debt securities with a single maturity date - Fair Value | 116,288 | ' |
Investment securities held to maturity - fair value | 314,383 | 378,174 |
U.S. Government-sponsored mortgage-backed securities | ' | ' |
Available for Sale | ' | ' |
Without single maturity date - Amortized Cost | 397,687 | ' |
Without single maturity date - Fair Value | 398,169 | ' |
Held to Maturity | ' | ' |
Without single maturity date - Amortized Cost | 191,998 | ' |
Total Investment Securities - Amortized Cost | 191,998 | 243,793 |
Without single maturity date - Fair Value | 198,095 | ' |
Investment securities held to maturity - fair value | 198,095 | 255,459 |
Equity securities | ' | ' |
Available for Sale | ' | ' |
Without single maturity date - Amortized Cost | 1,706 | ' |
Without single maturity date - Fair Value | $1,706 | ' |
Investment_Securities_Addition
Investment Securities - Additional Information (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Maximum | Minimum | Trust Preferred Securities | Trust Preferred Securities | ||
Maximum | ||||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ' | ' | ' | ' | ' | ' |
Carrying value of securities pledged as collateral | $375,411 | $335,775 | ' | ' | ' | ' |
Book value of securities sold under agreements to repurchase | 111,138 | 128,094 | ' | ' | ' | ' |
Investment amortized cost | 917,975 | 859,124 | ' | ' | 6,300 | ' |
Fair value of investments | ' | ' | ' | ' | $453 | ' |
Percentage of fair value of investments | ' | ' | ' | ' | ' | 1.00% |
Spread over LIBOR | ' | ' | 1.57% | 0.85% | ' | ' |
Investment_Securities_Gross_Ga
Investment Securities - Gross Gains and Losses on Sales and Redemptions of Available for Sale Securities and Other Than Temporary Impairment Losses Recognized (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Sales and Redemptions of Available for Sale Securities: | ' | ' | ' | ' |
Gross gains | $0 | $843 | $487 | $2,134 |
Gross losses | 0 | 0 | 0 | 0 |
Other-than-temporary impairment losses | $0 | $0 | $0 | $0 |
Investment_Securities_Investme
Investment Securities - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | $282,863 | $16,844 |
Less than 12 Months Gross Unrealized Losses | 9,633 | 80 |
12 Months or Longer Fair Value | 692 | 194 |
12 Months or Longer Gross Unrealized Losses | 5,853 | 5,881 |
Total Fair Value | 283,555 | 17,038 |
Total Gross Unrealized Losses | 15,486 | 5,961 |
U.S. Government-sponsored agency securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 1,439 | ' |
Less than 12 Months Gross Unrealized Losses | 9 | ' |
Total Fair Value | 1,439 | ' |
Total Gross Unrealized Losses | 9 | ' |
State and municipal | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 76,681 | 4,524 |
Less than 12 Months Gross Unrealized Losses | 3,467 | 19 |
12 Months or Longer Fair Value | 239 | ' |
12 Months or Longer Gross Unrealized Losses | 2 | ' |
Total Fair Value | 76,920 | 4,524 |
Total Gross Unrealized Losses | 3,469 | 19 |
U.S. Government-sponsored mortgage-backed securities | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months Fair Value | 204,743 | 12,320 |
Less than 12 Months Gross Unrealized Losses | 6,157 | 61 |
Total Fair Value | 204,743 | 12,320 |
Total Gross Unrealized Losses | 6,157 | 61 |
Corporate obligations | ' | ' |
Investments, Unrealized Loss Position [Line Items] | ' | ' |
12 Months or Longer Fair Value | 453 | 194 |
12 Months or Longer Gross Unrealized Losses | 5,851 | 5,881 |
Total Fair Value | 453 | 194 |
Total Gross Unrealized Losses | $5,851 | $5,881 |
Investment_Securities_Investme1
Investment Securities - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Fair value | $283,555 | $17,038 |
Investments reported at less than historical cost | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Historical cost | 299,041 | 22,999 |
Fair value | $283,555 | $17,038 |
Percent of the Corporation's available for sale and held to maturity portfolio | 31.00% | 1.90% |
Investment_Securities_Debt_Sec
Investment Securities - Debt Securities Credit Loss Recognized in Income, and Other Losses Recorded in Other Comprehensive Income (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Credit losses on debt securities held: | ' | ' |
Beginning balance | $11,355 | $11,355 |
Additions related to other-than-temporary losses not previously recognized | ' | ' |
Ending balance | $11,355 | $11,355 |
Loans_and_Allowance_Additional
Loans and Allowance - Additional Information (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Real estate loans - Residential | Real estate loans - Residential | Real estate loans - Commercial and farm land | Real estate loans - Commercial and farm land |
loan | loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Residential real estate loans held for sale | $5,312 | $22,300 | ' | ' |
Percentage of troubled debt restructured loans | ' | ' | 67.00% | 40.00% |
Number of troubled debt restructured loans | ' | ' | 5 | 12 |
Loans_and_Allowance_Compositio
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Loans: | ' | ' | ' | ' | ' | ' |
Loans | $2,925,457 | ' | $2,902,209 | ' | ' | ' |
Allowance for loan losses | -66,224 | -68,202 | -69,366 | -69,493 | -70,143 | -70,898 |
Total Loans | 2,859,233 | ' | 2,832,843 | ' | ' | ' |
Commercial and industrial loans | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 652,356 | ' | 622,579 | ' | ' | ' |
Agriculture production financing and other loans to farmers | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 98,489 | ' | 112,527 | ' | ' | ' |
Real estate loans - Construction | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 149,875 | ' | 98,639 | ' | ' | ' |
Real estate loans - Commercial and farm land | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 1,264,180 | ' | 1,266,682 | ' | ' | ' |
Real estate loans - Residential | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 452,277 | ' | 473,537 | ' | ' | ' |
Allowance for loan losses | -14,706 | -15,113 | -14,157 | -13,127 | -14,788 | -12,343 |
Real estate loans - Home equity | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 206,816 | ' | 203,406 | ' | ' | ' |
Individuals' loans for household and other personal expenditures | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 70,380 | ' | 75,748 | ' | ' | ' |
Allowance for loan losses | -2,803 | -2,885 | -2,593 | -2,629 | -2,431 | -2,902 |
Lease financing receivables, net of unearned income | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | 1,815 | ' | 2,590 | ' | ' | ' |
Allowance for loan losses | -56 | -36 | ' | ' | ' | -3 |
Other Loans | ' | ' | ' | ' | ' | ' |
Loans: | ' | ' | ' | ' | ' | ' |
Loans | $29,269 | ' | $46,501 | ' | ' | ' |
Loans_and_Allowance_Changes_in
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | $68,202 | $70,143 | $69,366 | $70,898 |
Provision for losses | 1,533 | 4,609 | 5,632 | 14,029 |
Recoveries on loans | 2,176 | 2,517 | 8,448 | 6,219 |
Loans charged off | -5,687 | -7,776 | -17,222 | -21,653 |
Ending balance | 66,224 | 69,493 | 66,224 | 69,493 |
Commercial | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 26,563 | 17,791 | 25,913 | 17,731 |
Provision for losses | -346 | 5,431 | 1,929 | 10,333 |
Recoveries on loans | 1,494 | 526 | 4,050 | 1,193 |
Loans charged off | -1,680 | -1,424 | -5,861 | -6,933 |
Ending balance | 26,031 | 22,324 | 26,031 | 22,324 |
Commercial Real Estate | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 23,605 | 35,133 | 26,703 | 37,919 |
Provision for losses | 1,560 | -879 | 132 | 149 |
Recoveries on loans | 258 | 1,598 | 3,023 | 3,462 |
Loans charged off | -2,795 | -4,439 | -7,230 | -10,117 |
Ending balance | 22,628 | 31,413 | 22,628 | 31,413 |
Consumer | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 2,885 | 2,431 | 2,593 | 2,902 |
Provision for losses | -31 | 147 | 267 | -14 |
Recoveries on loans | 110 | 219 | 426 | 595 |
Loans charged off | -161 | -168 | -483 | -854 |
Ending balance | 2,803 | 2,629 | 2,803 | 2,629 |
Residential | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 15,113 | 14,788 | 14,157 | 12,343 |
Provision for losses | 333 | -90 | 3,236 | 3,565 |
Recoveries on loans | 311 | 174 | 946 | 968 |
Loans charged off | -1,051 | -1,745 | -3,633 | -3,749 |
Ending balance | 14,706 | 13,127 | 14,706 | 13,127 |
Finance Leases | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' |
Beginning balance | 36 | ' | ' | 3 |
Provision for losses | 17 | ' | 68 | -4 |
Recoveries on loans | 3 | ' | 3 | 1 |
Loans charged off | ' | ' | -15 | ' |
Ending balance | $56 | ' | $56 | ' |
Loans_and_Allowance_Allowance_
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance balances - Individually evaluated for impairment | $1,048 | ' | $4,243 | ' | ' | ' |
Allowance balances - Collectively evaluated for impairment | 64,749 | ' | 65,123 | ' | ' | ' |
Allowance balances - Loans acquired with deteriorated credit quality | 427 | ' | ' | ' | ' | ' |
Total Allowance for Loan Losses | 66,224 | 68,202 | 69,366 | 69,493 | 70,143 | 70,898 |
Loan balances - Individually evaluated for impairment | 44,697 | ' | 68,099 | ' | ' | ' |
Loan balances - Collectively evaluated for impairment | 2,870,073 | ' | 2,821,358 | ' | ' | ' |
Loan balances - Loans acquired with deteriorated credit quality | 10,687 | ' | 12,752 | ' | ' | ' |
Loans | 2,925,457 | ' | 2,902,209 | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance balances - Individually evaluated for impairment | 285 | ' | 1,628 | ' | ' | ' |
Allowance balances - Collectively evaluated for impairment | 25,630 | ' | 24,285 | ' | ' | ' |
Allowance balances - Loans acquired with deteriorated credit quality | 116 | ' | ' | ' | ' | ' |
Total Allowance for Loan Losses | 26,031 | 26,563 | 25,913 | 22,324 | 17,791 | 17,731 |
Loan balances - Individually evaluated for impairment | 7,946 | ' | 14,190 | ' | ' | ' |
Loan balances - Collectively evaluated for impairment | 771,299 | ' | 765,707 | ' | ' | ' |
Loan balances - Loans acquired with deteriorated credit quality | 869 | ' | 1,710 | ' | ' | ' |
Loans | 780,114 | ' | 781,607 | ' | ' | ' |
Commercial Real Estate | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance balances - Individually evaluated for impairment | 757 | ' | 2,565 | ' | ' | ' |
Allowance balances - Collectively evaluated for impairment | 21,560 | ' | 24,138 | ' | ' | ' |
Allowance balances - Loans acquired with deteriorated credit quality | 311 | ' | ' | ' | ' | ' |
Total Allowance for Loan Losses | 22,628 | 23,605 | 26,703 | 31,413 | 35,133 | 37,919 |
Loan balances - Individually evaluated for impairment | 33,912 | ' | 45,394 | ' | ' | ' |
Loan balances - Collectively evaluated for impairment | 1,370,737 | ' | 1,309,912 | ' | ' | ' |
Loan balances - Loans acquired with deteriorated credit quality | 9,406 | ' | 10,015 | ' | ' | ' |
Loans | 1,414,055 | ' | 1,365,321 | ' | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance balances - Collectively evaluated for impairment | 2,803 | ' | 2,593 | ' | ' | ' |
Total Allowance for Loan Losses | 2,803 | 2,885 | 2,593 | 2,629 | 2,431 | 2,902 |
Loan balances - Collectively evaluated for impairment | 70,380 | ' | 75,748 | ' | ' | ' |
Loan balances - Loans acquired with deteriorated credit quality | ' | ' | ' | ' | ' | ' |
Loans | 70,380 | ' | 75,748 | ' | ' | ' |
Residential | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance balances - Individually evaluated for impairment | 6 | ' | 50 | ' | ' | ' |
Allowance balances - Collectively evaluated for impairment | 14,700 | ' | 14,107 | ' | ' | ' |
Allowance balances - Loans acquired with deteriorated credit quality | ' | ' | ' | ' | ' | ' |
Total Allowance for Loan Losses | 14,706 | 15,113 | 14,157 | 13,127 | 14,788 | 12,343 |
Loan balances - Individually evaluated for impairment | 2,839 | ' | 8,515 | ' | ' | ' |
Loan balances - Collectively evaluated for impairment | 655,842 | ' | 667,401 | ' | ' | ' |
Loan balances - Loans acquired with deteriorated credit quality | 412 | ' | 1,027 | ' | ' | ' |
Loans | 659,093 | ' | 676,943 | ' | ' | ' |
Finance Leases | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance balances - Collectively evaluated for impairment | 56 | ' | ' | ' | ' | ' |
Total Allowance for Loan Losses | 56 | 36 | ' | ' | ' | 3 |
Loan balances - Collectively evaluated for impairment | 1,815 | ' | 2,590 | ' | ' | ' |
Loan balances - Loans acquired with deteriorated credit quality | ' | ' | ' | ' | ' | ' |
Loans | $1,815 | ' | $2,590 | ' | ' | ' |
Loans_and_Allowance_Summary_of
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | $34,992 | $53,399 |
Commercial and industrial loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | 6,467 | 12,195 |
Agriculture production financing and other loans to farmers | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | 31 | ' |
Real estate loans - Construction | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | 2,643 | 4,814 |
Real estate loans - Commercial and farm land | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | 16,187 | 22,612 |
Real estate loans - Residential | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | 8,375 | 11,476 |
Real estate loans - Home equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | 1,093 | 1,997 |
Lease financing receivables, net of unearned income | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | ' | 301 |
Other Loans | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Non-accrual loans | $164 | $4 |
Loans_and_Allowance_Compositio1
Loans and Allowance - Composition of Impaired Loans by Loan Class (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | $83,225 | ' | $83,225 | ' | $109,594 |
Impaired loans with related allowance - Unpaid Principal Balance | 7,713 | ' | 7,713 | ' | 12,918 |
Unpaid Principal Balance | 90,938 | ' | 90,938 | ' | 122,512 |
Impaired loans with no related allowance - Recorded Investment | 47,603 | ' | 47,603 | ' | 67,333 |
Impaired loans with related allowance - Recorded Investment | 6,624 | ' | 6,624 | ' | 11,846 |
Recorded Investment | 54,227 | ' | 54,227 | ' | 79,179 |
Impaired loans with related allowance - Related Allowance | 1,475 | ' | 1,475 | ' | 4,243 |
Impaired loans with no related allowance - Average Recorded Investment | 49,875 | 55,699 | 52,494 | 61,126 | ' |
Impaired loans with related allowance - Average Recorded Investment | 6,681 | 19,565 | 6,811 | 19,704 | ' |
Average Recorded Investment | 56,556 | 75,264 | 59,305 | 80,830 | ' |
Impaired loans with no related allowance - Interest Income Recognized | 841 | 316 | 2,026 | 886 | ' |
Impaired loans with related allowance - Interest Income Recognized | 5 | 62 | 12 | 183 | ' |
Interest Income Recognized | 846 | 378 | 2,038 | 1,069 | ' |
Commercial and industrial loans | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 21,683 | ' | 21,683 | ' | 28,532 |
Impaired loans with related allowance - Unpaid Principal Balance | 1,119 | ' | 1,119 | ' | 4,415 |
Impaired loans with no related allowance - Recorded Investment | 7,758 | ' | 7,758 | ' | 11,730 |
Impaired loans with related allowance - Recorded Investment | 853 | ' | 853 | ' | 4,155 |
Impaired loans with related allowance - Related Allowance | 401 | ' | 401 | ' | 1,628 |
Impaired loans with no related allowance - Average Recorded Investment | 8,352 | 9,994 | 9,553 | 11,615 | ' |
Impaired loans with related allowance - Average Recorded Investment | 865 | 5,244 | 889 | 5,307 | ' |
Impaired loans with no related allowance - Interest Income Recognized | 110 | 26 | 184 | 68 | ' |
Impaired loans with related allowance - Interest Income Recognized | ' | 11 | 7 | 32 | ' |
Agriculture production financing and other loans to farmers | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 33 | ' | 33 | ' | ' |
Impaired loans with no related allowance - Recorded Investment | 31 | ' | 31 | ' | ' |
Impaired loans with no related allowance - Average Recorded Investment | 32 | 300 | 33 | 300 | ' |
Impaired loans with no related allowance - Interest Income Recognized | ' | ' | ' | ' | ' |
Real estate loans - Construction | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 6,161 | ' | 6,161 | ' | 9,787 |
Impaired loans with related allowance - Unpaid Principal Balance | ' | ' | ' | ' | 1,202 |
Impaired loans with no related allowance - Recorded Investment | 3,789 | ' | 3,789 | ' | 5,164 |
Impaired loans with related allowance - Recorded Investment | ' | ' | ' | ' | 1,058 |
Impaired loans with related allowance - Related Allowance | ' | ' | ' | ' | 105 |
Impaired loans with no related allowance - Average Recorded Investment | 4,115 | 6,658 | 4,262 | 7,665 | ' |
Impaired loans with related allowance - Average Recorded Investment | ' | 510 | ' | 541 | ' |
Impaired loans with no related allowance - Interest Income Recognized | 29 | 17 | 85 | 47 | ' |
Impaired loans with related allowance - Interest Income Recognized | ' | ' | ' | ' | ' |
Real estate loans - Commercial and farm land | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 46,834 | ' | 46,834 | ' | 58,173 |
Impaired loans with related allowance - Unpaid Principal Balance | 6,520 | ' | 6,520 | ' | 5,579 |
Impaired loans with no related allowance - Recorded Investment | 33,085 | ' | 33,085 | ' | 43,204 |
Impaired loans with related allowance - Recorded Investment | 5,700 | ' | 5,700 | ' | 5,182 |
Impaired loans with related allowance - Related Allowance | 1,068 | ' | 1,068 | ' | 2,460 |
Impaired loans with no related allowance - Average Recorded Investment | 34,298 | 31,081 | 35,198 | 33,459 | ' |
Impaired loans with related allowance - Average Recorded Investment | 5,742 | 12,326 | 5,844 | 12,371 | ' |
Impaired loans with no related allowance - Interest Income Recognized | 620 | 250 | 1,642 | 706 | ' |
Impaired loans with related allowance - Interest Income Recognized | 5 | 32 | 5 | 95 | ' |
Real estate loans - Residential | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 4,671 | ' | 4,671 | ' | 8,820 |
Impaired loans with related allowance - Unpaid Principal Balance | 74 | ' | 74 | ' | 1,722 |
Impaired loans with no related allowance - Recorded Investment | 2,569 | ' | 2,569 | ' | 6,215 |
Impaired loans with related allowance - Recorded Investment | 71 | ' | 71 | ' | 1,451 |
Impaired loans with related allowance - Related Allowance | 6 | ' | 6 | ' | 50 |
Impaired loans with no related allowance - Average Recorded Investment | 2,687 | 6,936 | 3,028 | 7,342 | ' |
Impaired loans with related allowance - Average Recorded Investment | 74 | 1,485 | 78 | 1,485 | ' |
Impaired loans with no related allowance - Interest Income Recognized | 82 | 20 | 114 | 54 | ' |
Impaired loans with related allowance - Interest Income Recognized | ' | 19 | ' | 56 | ' |
Real estate loans - Home equity | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 3,386 | ' | 3,386 | ' | 4,199 |
Impaired loans with no related allowance - Recorded Investment | 199 | ' | 199 | ' | 1,006 |
Impaired loans with no related allowance - Average Recorded Investment | 217 | 713 | 236 | 727 | ' |
Impaired loans with no related allowance - Interest Income Recognized | ' | 3 | ' | 10 | ' |
Other Loans | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Unpaid Principal Balance | 457 | ' | 457 | ' | 83 |
Impaired loans with related allowance - Unpaid Principal Balance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Recorded Investment | 172 | ' | 172 | ' | 14 |
Impaired loans with related allowance - Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with related allowance - Related Allowance | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Average Recorded Investment | 174 | 17 | 184 | 18 | ' |
Impaired loans with related allowance - Average Recorded Investment | ' | ' | ' | ' | ' |
Impaired loans with no related allowance - Interest Income Recognized | ' | ' | ' | 1 | ' |
Impaired loans with related allowance - Interest Income Recognized | ' | ' | ' | ' | ' |
Loans_and_Allowance_Credit_Qua
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | $2,925,457 | $2,902,209 |
Commercial and industrial loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 652,356 | 622,579 |
Agriculture production financing and other loans to farmers | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 98,489 | 112,527 |
Real estate loans - Construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 149,875 | 98,639 |
Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,264,180 | 1,266,682 |
Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 452,277 | 473,537 |
Real estate loans - Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 206,816 | 203,406 |
Individuals' loans for household and other personal expenditures | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 70,380 | 75,748 |
Lease financing receivables, net of unearned income | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,815 | 2,590 |
Other Loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 29,269 | 46,501 |
Commercial Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 2,184,228 | 2,107,317 |
Commercial Pass | Commercial and industrial loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 603,166 | 559,852 |
Commercial Pass | Agriculture production financing and other loans to farmers | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 98,458 | 112,209 |
Commercial Pass | Real estate loans - Construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 142,169 | 85,728 |
Commercial Pass | Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,163,570 | 1,148,561 |
Commercial Pass | Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 139,481 | 145,402 |
Commercial Pass | Real estate loans - Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 6,633 | 9,092 |
Commercial Pass | Lease financing receivables, net of unearned income | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,688 | ' |
Commercial Pass | Other Loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 29,063 | 46,473 |
Commercial Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 64,798 | 69,815 |
Commercial Special Mention | Commercial and industrial loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 18,481 | 23,678 |
Commercial Special Mention | Agriculture production financing and other loans to farmers | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | ' | 224 |
Commercial Special Mention | Real estate loans - Construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 2,752 | 1,384 |
Commercial Special Mention | Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 41,954 | 38,199 |
Commercial Special Mention | Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,504 | 5,437 |
Commercial Special Mention | Real estate loans - Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 105 | 893 |
Commercial Special Mention | Other Loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 2 | ' |
Commercial Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 104,246 | 140,553 |
Commercial Substandard | Commercial and industrial loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 29,155 | 34,460 |
Commercial Substandard | Agriculture production financing and other loans to farmers | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 31 | 94 |
Commercial Substandard | Real estate loans - Construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 4,491 | 11,356 |
Commercial Substandard | Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 58,309 | 79,078 |
Commercial Substandard | Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 10,803 | 13,880 |
Commercial Substandard | Real estate loans - Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,126 | 1,657 |
Commercial Substandard | Lease financing receivables, net of unearned income | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 127 | ' |
Commercial Substandard | Other Loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 204 | 28 |
Commercial Doubtful | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,806 | 6,064 |
Commercial Doubtful | Commercial and industrial loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,554 | 4,589 |
Commercial Doubtful | Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 112 | 553 |
Commercial Doubtful | Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 140 | 922 |
Commercial Doubtful | Other Loans | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | ' | ' |
Consumer Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 561,390 | 569,372 |
Consumer Performing | Real estate loans - Construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | ' | ' |
Consumer Performing | Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | ' | ' |
Consumer Performing | Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 293,329 | 301,614 |
Consumer Performing | Real estate loans - Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 197,776 | 189,721 |
Consumer Performing | Individuals' loans for household and other personal expenditures | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 70,285 | 75,748 |
Consumer Performing | Lease financing receivables, net of unearned income | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | ' | 2,289 |
Consumer Non-Performing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 8,989 | 9,088 |
Consumer Non-Performing | Real estate loans - Construction | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 463 | 171 |
Consumer Non-Performing | Real estate loans - Commercial and farm land | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 235 | 291 |
Consumer Non-Performing | Real estate loans - Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 7,020 | 6,282 |
Consumer Non-Performing | Real estate loans - Home equity | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 1,176 | 2,043 |
Consumer Non-Performing | Individuals' loans for household and other personal expenditures | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | 95 | ' |
Consumer Non-Performing | Lease financing receivables, net of unearned income | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Loans | ' | $301 |
Loans_and_Allowance_Past_Due_A
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | $2,881,605 | $2,828,813 | ' | ' |
30-59 Days Past Due | 5,846 | 14,303 | ' | ' |
60-89 Days Past Due | 2,177 | 3,657 | ' | ' |
Loans > 90 Days And Accruing | 837 | 2,037 | ' | ' |
Non- Accrual | 34,992 | 53,399 | ' | ' |
Total Past Due & Non- Accrual | 43,852 | 73,396 | ' | ' |
Total Loans | 2,925,457 | 2,902,209 | ' | ' |
Commercial and industrial loans | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 645,044 | 607,442 | ' | ' |
30-59 Days Past Due | 845 | 2,628 | ' | ' |
60-89 Days Past Due | ' | 144 | ' | ' |
Loans > 90 Days And Accruing | ' | 170 | ' | ' |
Non- Accrual | 6,467 | 12,195 | ' | ' |
Total Past Due & Non- Accrual | 7,312 | 15,137 | ' | ' |
Total Loans | 652,356 | 622,579 | ' | ' |
Agriculture production financing and other loans to farmers | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 98,458 | 112,527 | ' | ' |
30-59 Days Past Due | ' | ' | ' | ' |
60-89 Days Past Due | ' | ' | ' | ' |
Loans > 90 Days And Accruing | ' | ' | ' | ' |
Non- Accrual | 31 | ' | ' | ' |
Total Past Due & Non- Accrual | 31 | ' | ' | ' |
Total Loans | 98,489 | 112,527 | ' | ' |
Real estate loans - Construction | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 147,157 | 93,426 | ' | ' |
30-59 Days Past Due | ' | 399 | ' | ' |
60-89 Days Past Due | ' | ' | ' | ' |
Loans > 90 Days And Accruing | 75 | ' | ' | ' |
Non- Accrual | 2,643 | 4,814 | ' | ' |
Total Past Due & Non- Accrual | 2,718 | 5,213 | ' | ' |
Total Loans | 149,875 | 98,639 | ' | ' |
Real estate loans - Commercial and farm land | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 1,246,319 | 1,238,907 | ' | ' |
30-59 Days Past Due | 843 | 3,276 | ' | ' |
60-89 Days Past Due | 831 | 1,822 | ' | ' |
Loans > 90 Days And Accruing | ' | 65 | ' | ' |
Non- Accrual | 16,187 | 22,612 | ' | ' |
Total Past Due & Non- Accrual | 17,861 | 27,775 | ' | ' |
Total Loans | 1,264,180 | 1,266,682 | ' | ' |
Real estate loans - Residential | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 439,860 | 453,743 | ' | ' |
30-59 Days Past Due | 2,627 | 5,734 | ' | ' |
60-89 Days Past Due | 998 | 1,338 | ' | ' |
Loans > 90 Days And Accruing | 417 | 1,246 | ' | ' |
Non- Accrual | 8,375 | 11,476 | ' | ' |
Total Past Due & Non- Accrual | 12,417 | 19,794 | ' | ' |
Total Loans | 452,277 | 473,537 | ' | ' |
Real estate loans - Home equity | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 204,028 | 199,063 | ' | ' |
30-59 Days Past Due | 1,153 | 1,467 | ' | ' |
60-89 Days Past Due | 260 | 323 | ' | ' |
Loans > 90 Days And Accruing | 282 | 556 | ' | ' |
Non- Accrual | 1,093 | 1,997 | ' | ' |
Total Past Due & Non- Accrual | 2,788 | 4,343 | ' | ' |
Total Loans | 206,816 | 203,406 | ' | ' |
Individuals' loans for household and other personal expenditures | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 69,819 | 74,919 | ' | ' |
30-59 Days Past Due | 378 | 799 | ' | ' |
60-89 Days Past Due | 88 | 30 | ' | ' |
Loans > 90 Days And Accruing | 63 | ' | ' | ' |
Non- Accrual | 32 | ' | 32 | ' |
Total Past Due & Non- Accrual | 561 | 829 | ' | ' |
Total Loans | 70,380 | 75,748 | ' | ' |
Lease financing receivables, net of unearned income | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 1,815 | 2,289 | ' | ' |
30-59 Days Past Due | ' | ' | ' | ' |
Loans > 90 Days And Accruing | ' | ' | ' | ' |
Non- Accrual | ' | 301 | ' | ' |
Total Past Due & Non- Accrual | ' | 301 | ' | ' |
Total Loans | 1,815 | 2,590 | ' | ' |
Other Loans | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' |
Current | 29,105 | 46,497 | ' | ' |
Non- Accrual | 164 | 4 | ' | ' |
Total Past Due & Non- Accrual | 164 | 4 | ' | ' |
Total Loans | $29,269 | $46,501 | ' | ' |
Loans_and_Allowance_Summary_of1
Loans and Allowance - Summary of Troubled Debt Restructurings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
loan | loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Balance | $1,816 | $2,382 | $7,445 | $7,202 |
Post-Modification Recorded Balance | 1,843 | 2,584 | 6,459 | 6,988 |
Number of Loans | 9 | 14 | 25 | 38 |
Commercial and industrial loans | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Balance | 162 | 875 | 294 | 1,155 |
Post-Modification Recorded Balance | 183 | 1,048 | 315 | 1,327 |
Number of Loans | 1 | 3 | 5 | 6 |
Real estate loans - Construction | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Balance | ' | 303 | ' | 794 |
Post-Modification Recorded Balance | ' | 303 | ' | 653 |
Number of Loans | ' | 1 | ' | 2 |
Real estate loans - Commercial and farm land | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Balance | 1,464 | 875 | 6,449 | 2,967 |
Post-Modification Recorded Balance | 1,469 | 875 | 5,450 | 2,828 |
Number of Loans | 6 | 2 | 10 | 7 |
Real estate loans - Residential | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Balance | 190 | 239 | 658 | 2,196 |
Post-Modification Recorded Balance | 191 | 241 | 649 | 2,063 |
Number of Loans | 2 | 4 | 8 | 19 |
Individuals' loans for household and other personal expenditures | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Pre-Modification Recorded Balance | ' | 90 | 44 | 90 |
Post-Modification Recorded Balance | ' | $117 | $45 | $117 |
Number of Loans | ' | 4 | 2 | 4 |
Loans_and_Allowance_Summary_of2
Loans and Allowance - Summary of Troubled Debt Restructurings by Modification (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | $1,766 | $2,505 | $4,271 | $6,695 |
Troubled Debt Restructurings, Term Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 1,732 | ' | 1,785 | 2,451 |
Troubled Debt Restructurings Rate Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 34 | 687 | 94 | 939 |
Troubled Debt Restructurings, Combination | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 1,818 | 2,392 | 3,305 |
Commercial and industrial loans | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 175 | 1,048 | 291 | 1,302 |
Commercial and industrial loans | Troubled Debt Restructurings, Term Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 175 | ' | 228 | 230 |
Commercial and industrial loans | Troubled Debt Restructurings Rate Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | ' | ' | ' |
Commercial and industrial loans | Troubled Debt Restructurings, Combination | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 1,048 | 63 | 1,072 |
Real estate loans - Construction | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 299 | ' | 639 |
Real estate loans - Construction | Troubled Debt Restructurings Rate Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | ' | ' | ' |
Real estate loans - Construction | Troubled Debt Restructurings, Combination | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 299 | ' | 639 |
Real estate loans - Commercial and farm land | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 1,399 | 875 | 3,349 | 2,758 |
Real estate loans - Commercial and farm land | Troubled Debt Restructurings, Term Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 1,399 | ' | 1,399 | 1,693 |
Real estate loans - Commercial and farm land | Troubled Debt Restructurings Rate Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 680 | ' | 680 |
Real estate loans - Commercial and farm land | Troubled Debt Restructurings, Combination | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 195 | 1,950 | 385 |
Real estate loans - Residential | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 192 | 167 | 605 | 1,880 |
Real estate loans - Residential | Troubled Debt Restructurings, Term Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 158 | ' | 158 | 528 |
Real estate loans - Residential | Troubled Debt Restructurings Rate Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | 34 | ' | 94 | 252 |
Real estate loans - Residential | Troubled Debt Restructurings, Combination | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 167 | 353 | 1,100 |
Individuals' loans for household and other personal expenditures | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 116 | 26 | 116 |
Individuals' loans for household and other personal expenditures | Troubled Debt Restructurings Rate Modifications | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | 7 | ' | 7 |
Individuals' loans for household and other personal expenditures | Troubled Debt Restructurings, Combination | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Modification | ' | $109 | $26 | $109 |
Loans_and_Allowance_Subsequent
Loans and Allowance - Subsequent Default (Details) (Nonimpaired Loans, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
loan | loan | loan | loan | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Number of Loans | ' | 11 | ' | 15 |
Recorded Balance | ' | $1,809 | ' | $3,932 |
Commercial and industrial loans | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 3 | 1 | 3 |
Recorded Balance | 18 | 1,415 | 18 | 1,415 |
Real estate loans - Commercial and farm land | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Number of Loans | ' | 1 | 1 | 1 |
Recorded Balance | ' | 23 | 223 | 23 |
Real estate loans - Residential | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Number of Loans | 2 | 7 | 2 | 11 |
Recorded Balance | 166 | 371 | 166 | 2,494 |
Real estate loans - Home equity | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Number of Loans | 3 | ' | 4 | ' |
Recorded Balance | $184 | ' | $407 | ' |
Accounting_for_Certain_Loans_A2
Accounting for Certain Loans Acquired in a Purchase (Details) (USD $) | 3 Months Ended | 8 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | $52,851 | ' | ' | $52,851 | $65,600 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 3,959 | 9,048 | 9,774 | 5,142 | ' |
Accretions | -413 | -2,612 | -3,338 | -1,596 | ' |
Ending balance | 3,546 | 6,436 | 6,436 | 3,546 | ' |
Commercial and industrial loans | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 6,265 | ' | ' | 6,265 | 8,542 |
Agriculture production financing and other loans to farmers | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 1,382 | ' | ' | 1,382 | 1,127 |
Real estate loans - Construction | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 8 | ' | ' | 8 | 58 |
Real estate loans - Commercial and farm land | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 18,553 | ' | ' | 18,553 | 24,259 |
Real estate loans - Residential | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 9,614 | ' | ' | 9,614 | 12,118 |
Real estate loans - Home equity | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 16,529 | ' | ' | 16,529 | 18,805 |
Individuals' loans for household and other personal expenditures | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | 336 | ' | ' | 336 | 691 |
Other Loans | ' | ' | ' | ' | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' | ' | ' | ' | ' |
Carrying amount of loans acquired | $164 | ' | ' | $164 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Details) (USD $) | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Federal Home Loan Bank advances | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Not Designated as Hedging Instrument | ||
instrument | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | Interest rate cap | Interest rate cap | Interest rate cap | |||
contract | contract | Federal Home Loan Bank advances | Trust Preferred Securities | contract | contract | Trust Preferred Securities | ||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate derivatives held | ' | ' | 5 | 5 | ' | ' | 1 | 1 | ' | ' |
Notional amount of interest rate derivatives | ' | ' | $56,000 | $56,000 | $30,000 | $26,000 | $13,000 | $13,000 | $13,000 | $146,980 |
Number of debt instruments held | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amount to be transferred from OCI to earnings | 1,355 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination value of derivatives in a net liability position | 4,365 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative collateral posted | $4,271 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) (Interest rate contracts, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instrument | Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | $421 | $197 |
Designated as Hedging Instrument | Other Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability derivatives | 1,441 | 3,332 |
Not Designated as Hedging Instrument | Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Asset Derivatives | 3,054 | 6,103 |
Not Designated as Hedging Instrument | Other Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liability derivatives | $3,136 | $6,434 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Not Designated as Hedging Instrument | Interest rate contracts | Other Income | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Recognized Income on Derivative | ($16) | ($70) | $249 | ($125) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest expense | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion) | -207 | ' | -587 | ' |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate contracts | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Amount of Gain Recognized in Other Comprehensive Income on Derivative (Effective Portion) | ($248) | ($376) | $1,550 | ($1,529) |
Disclosures_About_Fair_Value_o2
Disclosures About Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | $606,341 | $513,343 |
Fair Value, Measurements, Recurring | Fair Value | Interest rate swap liability | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Liability derivatives | 4,577 | 9,766 |
Fair Value, Measurements, Recurring | Fair Value | U.S. Government-sponsored agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 3,800 | 4,640 |
Fair Value, Measurements, Recurring | Fair Value | State and municipal | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 202,182 | 158,194 |
Fair Value, Measurements, Recurring | Fair Value | U.S. Government-sponsored mortgage-backed securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 398,169 | 348,579 |
Fair Value, Measurements, Recurring | Fair Value | Corporate obligations | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 484 | 224 |
Fair Value, Measurements, Recurring | Fair Value | Equity securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 1,706 | 1,706 |
Fair Value, Measurements, Recurring | Fair Value | Interest rate swap asset | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Asset derivatives | 3,054 | 6,103 |
Fair Value, Measurements, Recurring | Fair Value | Interest rate cap | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Asset derivatives | 421 | 197 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap liability | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Liability derivatives | 4,577 | 9,766 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored agency securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 3,800 | 4,640 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 181,672 | 140,094 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored mortgage-backed securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 398,169 | 348,579 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 1,702 | 1,702 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap asset | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Asset derivatives | 3,054 | 6,103 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest rate cap | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Asset derivatives | 421 | 197 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap liability | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Liability derivatives | ' | ' |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 20,510 | 18,100 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Corporate obligations | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 484 | 224 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Investment securities available for sale | 4 | 4 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap asset | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Asset derivatives | ' | ' |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest rate cap | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Asset derivatives | ' | ' |
Disclosures_About_Fair_Value_o3
Disclosures About Fair Value of Assets and Liabilities - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) (Fair Value, Measurements, Recurring, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Rate Swap Liability | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of the period | ' | ' | ' | ($7,797) |
Included in net income (loss) | ' | ' | ' | 863 |
Included in other comprehensive income | ' | ' | ' | ' |
Purchases, issuances and settlements | ' | ' | ' | ' |
Transfers in/(out) of Level 3 | ' | ' | ' | 6,934 |
Principal payments/additions | ' | ' | ' | ' |
Balance at end of the period | ' | 0 | ' | 0 |
Available for Sale Securities | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of the period | 17,915 | 19,740 | 18,328 | 20,838 |
Included in net income (loss) | ' | ' | ' | ' |
Included in other comprehensive income | -486 | -183 | -521 | -944 |
Purchases, issuances and settlements | ' | ' | ' | ' |
Transfers in/(out) of Level 3 | 3,905 | ' | 3,905 | ' |
Principal payments/additions | -336 | -1,132 | -714 | -1,469 |
Balance at end of the period | 20,998 | 18,425 | 20,998 | 18,425 |
Interest Rate Swap Asset | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of the period | ' | ' | ' | 5,241 |
Included in net income (loss) | ' | ' | ' | -860 |
Included in other comprehensive income | ' | ' | ' | 481 |
Purchases, issuances and settlements | ' | ' | ' | ' |
Transfers in/(out) of Level 3 | ' | ' | ' | -4,862 |
Balance at end of the period | ' | 0 | ' | 0 |
Interest Rate Cap | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of the period | ' | ' | ' | 424 |
Included in net income (loss) | ' | ' | ' | ' |
Included in other comprehensive income | ' | ' | ' | -15 |
Purchases, issuances and settlements | ' | ' | ' | ' |
Transfers in/(out) of Level 3 | ' | ' | ' | -409 |
Balance at end of the period | ' | $0 | ' | $0 |
Disclosures_About_Fair_Value_o4
Disclosures About Fair Value of Assets and Liabilities - Transfer Between Levels 1, 2 and 3 and Reasons For Those Transfers (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale securities | Interest rate swap asset | Interest rate cap | Interest rate swap liability | Available-for-sale securities | Interest rate swap asset | Interest rate cap | Interest rate swap liability | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer between Levels 1, 2 and 3 | ' | ' | ($3,905) | $12,205 | ($3,905) | $4,862 | $409 | $6,934 | $3,905 | ($12,205) | $3,905 | ($4,862) | ($409) | ($6,934) |
Reason for Transfer | 'Selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets. | 'The interest rate swap and cap instruments were transferred from Level 3 to Level 2 as of March 31, 2012 due to the availability of additional valuation information.B These instruments are valued using widely accepted valuation techniques including discounted cash flow analysis using observable inputs such as contractual terms and LIBOR-based rate curves. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Disclosures_About_Fair_Value_o5
Disclosures About Fair Value of Assets and Liabilities - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) (Fair Value, Measurements, Nonrecurring, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired loans (collateral dependent) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset fair value | $8,874 | $17,703 |
Other real estate owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset fair value | 8,220 | 7,684 |
Significant Unobservable Inputs (Level 3) | Impaired loans (collateral dependent) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset fair value | 8,874 | 17,703 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset fair value | $8,220 | $7,684 |
Disclosures_About_Fair_Value_o6
Disclosures About Fair Value of Assets and Liabilities - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Discounted Cash Flow | Discounted Cash Flow | Discounted Cash Flow | Collateral Based Measurements | Collateral Based Measurements | Appraisals | Appraisals | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | ||
State and municipal | State and municipal | Corporate obligations | Impaired loans (collateral dependent) | Impaired loans (collateral dependent) | Other real estate owned | Other real estate owned | Discounted Cash Flow | Discounted Cash Flow | Collateral Based Measurements | Appraisals | |||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | State and municipal | Corporate obligations | Impaired loans (collateral dependent) | Other real estate owned | ||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value | $606,341 | $513,343 | ' | ' | ' | ' | ' | ' | ' | $20,510 | $488 | ' | ' |
Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,874 | $8,220 |
Maturity/Call date | ' | ' | '1 month | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Blend of US Muni BQ curve | ' | ' | 'A- | 'BBB- | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | 1.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free rate | ' | ' | ' | ' | '3 month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' |
Discount to reflect current market conditions and ultimate collectability | ' | ' | ' | ' | ' | 0.00% | 50.00% | ' | ' | ' | ' | ' | ' |
Discount to reflect current market conditions | ' | ' | ' | ' | 2.00% | ' | ' | 0.00% | 20.00% | ' | ' | ' | ' |
Disclosures_About_Fair_Value_o7
Disclosures About Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Investment securities available for sale | $606,341 | $513,343 |
Investment securities held to maturity - fair value | 314,383 | 378,174 |
Carrying (Reported) Amount | ' | ' |
Assets: | ' | ' |
Cash and due from banks | 92,341 | 101,460 |
Interest-bearing time deposits | 18,875 | 38,443 |
Investment securities available for sale | 606,341 | 513,343 |
Investment securities held to maturity - fair value | 307,794 | 361,020 |
Mortgage loans held for sale | 5,312 | 22,300 |
Loans | 2,859,233 | 2,832,843 |
Federal Reserve Bank and Federal Home Loan Bank stock | 32,790 | 32,785 |
Interest rate swap and cap asset | 3,475 | 6,300 |
Interest receivable | 16,171 | 16,367 |
Liabilities: | ' | ' |
Deposits | 3,255,846 | 3,346,383 |
Borrowings: | ' | ' |
Federal funds purchased | 115,938 | 18,862 |
Securities sold under repurchase agreements | 123,935 | 141,828 |
Federal Home Loan Bank advances | 172,292 | 94,238 |
Subordinated debentures, revolving credit lines and term loans | 111,849 | 112,161 |
Interest rate swap liability | 4,577 | 9,766 |
Interest payable | 1,155 | 1,841 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Cash and due from banks | 92,341 | 101,460 |
Interest-bearing time deposits | 18,875 | 38,443 |
Liabilities: | ' | ' |
Deposits | 2,548,183 | 2,478,706 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets: | ' | ' |
Investment securities available for sale | 585,343 | 495,015 |
Investment securities held to maturity - fair value | 303,371 | 366,590 |
Mortgage loans held for sale | 5,312 | 22,300 |
Federal Reserve Bank and Federal Home Loan Bank stock | 32,790 | 32,785 |
Interest rate swap and cap asset | 3,475 | 6,300 |
Interest receivable | 16,171 | 16,367 |
Liabilities: | ' | ' |
Deposits | 700,168 | 865,793 |
Borrowings: | ' | ' |
Federal funds purchased | 115,938 | 18,862 |
Securities sold under repurchase agreements | 124,195 | 142,318 |
Federal Home Loan Bank advances | 173,449 | 97,357 |
Subordinated debentures, revolving credit lines and term loans | 63,391 | 62,133 |
Interest rate swap liability | 4,577 | 9,766 |
Interest payable | 1,155 | 1,841 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets: | ' | ' |
Investment securities available for sale | 20,998 | 18,328 |
Investment securities held to maturity - fair value | 11,012 | 11,584 |
Loans | $2,822,465 | $2,852,614 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
AOCI - beginning balance | ' | ' | ($5,499) | ($3,602) |
Other comprehensive income before reclassifications | ' | ' | -11,550 | 2,028 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 851 | -447 |
Other Comprehensive Income, net of tax | -1,019 | 1,286 | -10,699 | 1,581 |
AOCI - ending balance | -16,198 | -2,021 | -16,198 | -2,021 |
Unrealized Gains (Losses) on Securities Available for Sale | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
AOCI - beginning balance | ' | ' | 17,904 | 18,244 |
Other comprehensive income before reclassifications | ' | ' | -12,646 | 3,102 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -317 | -1,387 |
Other Comprehensive Income, net of tax | ' | ' | -12,963 | 1,715 |
AOCI - ending balance | 4,941 | 19,959 | 4,941 | 19,959 |
Unrealized Gains (Losses) on Securities Available for Sale for which a Portion of Other-Than-Temporary Impairment has been Recognized in Income | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
AOCI - beginning balance | ' | ' | -3,272 | -3,168 |
Other comprehensive income before reclassifications | ' | ' | 89 | -80 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' | ' |
Other Comprehensive Income, net of tax | ' | ' | 89 | -80 |
AOCI - ending balance | -3,183 | -3,248 | -3,183 | -3,248 |
Unrealized Gains (Losses) on Cash Flow Hedges | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
AOCI - beginning balance | ' | ' | -2,652 | -1,841 |
Other comprehensive income before reclassifications | ' | ' | 1,007 | -994 |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 382 | ' |
Other Comprehensive Income, net of tax | ' | ' | 1,389 | -994 |
AOCI - ending balance | -1,263 | -2,835 | -1,263 | -2,835 |
Unrealized Gains (Losses) on Defined Benefit Plans | ' | ' | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
AOCI - beginning balance | ' | ' | -17,479 | -16,837 |
Other comprehensive income before reclassifications | ' | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 786 | 940 |
Other Comprehensive Income, net of tax | ' | ' | 786 | 940 |
AOCI - ending balance | ($16,693) | ($15,897) | ($16,693) | ($15,897) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Reclassifications (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Other income - net realized gains on sales of available for sale securities | ' | $843 | $487 | $2,134 | ||||
Interest expense - subordinated debentures and term loans | -731 | -1,187 | -2,189 | -4,460 | ||||
Other expenses - salaries and employee benefits | -20,616 | -20,083 | -61,943 | -59,078 | ||||
Income tax expense (benefit) | -2,667 | -3,926 | -11,490 | -12,714 | ||||
NET INCOME | 10,403 | 11,236 | 33,083 | 34,812 | ||||
Amount Reclassified from Accumulated Other Comprehensive Income for the Period | ' | ' | ' | ' | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
NET INCOME | -208 | 339 | -851 | 447 | ||||
Amount Reclassified from Accumulated Other Comprehensive Income for the Period | Unrealized gains (losses) on available for sale securities | ' | ' | ' | ' | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Other income - net realized gains on sales of available for sale securities | ' | [1] | 843 | [1] | 487 | [1] | 2,134 | [1] |
Income tax expense (benefit) | ' | [1] | -294 | [1] | -170 | [1] | -747 | [1] |
NET INCOME | ' | [1] | 549 | [1] | 317 | [1] | 1,387 | [1] |
Amount Reclassified from Accumulated Other Comprehensive Income for the Period | Unrealized gains (losses) on cash flow hedges | ' | ' | ' | ' | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Interest expense - subordinated debentures and term loans | -207 | [2] | ' | [2] | -587 | [2] | ' | [2] |
Income tax expense (benefit) | 72 | [2] | ' | [2] | 205 | [2] | ' | [2] |
NET INCOME | -135 | [2] | ' | [2] | -382 | [2] | ' | [2] |
Amount Reclassified from Accumulated Other Comprehensive Income for the Period | Unrealized gains (losses) on defined benefit plans | ' | ' | ' | ' | ||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Other expenses - salaries and employee benefits | -112 | -323 | -1,209 | -1,446 | ||||
Income tax expense (benefit) | 39 | 113 | 423 | 506 | ||||
NET INCOME | ($73) | ($210) | ($786) | ($940) | ||||
[1] | For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES. | |||||||
[2] | For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 6. DERIVATIVE FINANCIAL INSTRUMENTS. |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Percentage of average closing price to be paid by employees | ' | ' | 85.00% | ' |
Share-based compensation | $475 | $415 | $1,285 | $1,101 |
Estimated pre-vesting forfeiture rate | 5.00% | ' | ' | ' |
Weighted-average grant date fair value for stock options (in dollars per share) | ' | ' | $5.73 | $3.97 |
Aggregate intrinsic value of stock options exercised | ' | ' | 106 | 46 |
Cash receipts of stock options exercised | ' | ' | 97 | 67 |
Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Common stock purchases through advance payroll deductions in a calendar year | ' | ' | 25 | ' |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Stock option term | ' | ' | '10 years | ' |
Stock options vesting percentage | ' | ' | 100.00% | ' |
Estimated pre-vesting forfeiture rate | ' | ' | 4.73% | ' |
Unrecognized compensation expense | 96 | ' | 96 | ' |
Unrecognized compensation expense expected recognition period | ' | ' | '6 months 15 days | ' |
Stock Options | Minimum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vested period | ' | ' | '6 months | ' |
Stock Options | Maximum | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vested period | ' | ' | '2 years | ' |
Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Vested period | ' | ' | '3 years | ' |
Unrecognized compensation expense | 2,523 | ' | 2,523 | ' |
Unrecognized compensation expense expected recognition period | ' | ' | '1 year 5 months 9 days | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Unrecognized compensation expense | 0 | ' | 0 | ' |
Grant date fair value of ESPP options | $29 | ' | ' | ' |
ShareBased_Compensation_Assump
Share-Based Compensation - Assumptions Used in Black Scholes Model (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | ' | 1.25% |
Expected price volatility | ' | 45.68% |
Dividend yield | ' | 2.96% |
Forfeiture rate | 5.00% | 4.73% |
Weighted-average expected life, until exercise | ' | '7 years 2 months 38 days |
ShareBased_Compensation_Compon
Share-Based Compensation - Components of Share Based Compensation Awards (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-tax compensation expense | $475 | $415 | $1,285 | $1,101 |
Income tax expense (benefit) | -152 | -115 | -386 | -335 |
Share-based compensation expense, net of income taxes | 323 | 300 | 899 | 766 |
Stock and ESPP Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-tax compensation expense | 89 | 71 | 177 | 197 |
Income tax expense (benefit) | -17 | -11 | 1 | -13 |
Share-based compensation expense, net of income taxes | 72 | 60 | 178 | 184 |
Restricted Stock Awards | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Pre-tax compensation expense | 386 | 344 | 1,108 | 904 |
Income tax expense (benefit) | -135 | -104 | -387 | -322 |
Share-based compensation expense, net of income taxes | $251 | $240 | $721 | $582 |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity under Stock Option Plans (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Number of Shares | ' |
Beginning balance (in shares) | 906,636 |
Granted (in shares) | 22,500 |
Exercised (in shares) | -11,250 |
Cancelled (in shares) | -104,012 |
Ending balance (in shares) | 813,874 |
Vested and Expected to Vest at June 30, 2013 (in shares) | 813,874 |
Exercisable at June 30, 2013 (in shares) | 763,074 |
Weighted-Average Exercise Price | ' |
Beginning balance (in dollars per share) | $21.58 |
Granted (in dollars per share) | $16.50 |
Exercised (in dollars per share) | $7.90 |
Cancelled (in dollars per share) | $23.52 |
Ending balance (in dollars per share) | $21.46 |
Vested and Expected to Vest at June 30, 2013 (in dollars per share) | $21.46 |
Exercisable at June 30, 2013 (in dollars per share) | $21.98 |
Weighted Average Remaining Contractual Term | ' |
Outstanding at June 30, 2013 | '3 years 10 months 10 days |
Vested and Expected to Vest at June 30, 2013 | '3 years 10 months 10 days |
Exercisable at June 30, 2013 | '3 years 6 months 7 days |
Aggregate Intrinsic Value | ' |
Outstanding at June 30, 2013 | $1,464,190 |
Vested and Expected to Vest at June 30, 2013 | 1,464,190 |
Exercisable at June 30, 2013 | $1,277,175 |
ShareBased_Compensation_Unvest
Share-Based Compensation - Unvested RSAs Outstanding (Details) (Restricted Stock, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Stock | ' |
Number of Shares | ' |
Unvested RSAs at January 1, 2013 (in shares) | 401,375 |
Granted (in shares) | 118,954 |
Vested (in shares) | -111,770 |
Forfeited (in shares) | -1,700 |
Unvested RSAs at June 30, 2013 (in shares) | 406,859 |
Weighted-Average Grant Date Fair Value | ' |
Unvested RSAs at January 1, 2013 (in dollars per share) | $9.29 |
Granted (in dollars per share) | $15.47 |
Vested (in dollars per share) | $6.15 |
Forfeited (in dollars per share) | $11.95 |
Unvested RSAs at June 30, 2013 (in dollars per share) | $11.94 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Currently Payable: | ' | ' | ' | ' |
Federal | ($1,897) | $139 | ($1,157) | $1,475 |
State | ' | ' | ' | ' |
Deferred: | ' | ' | ' | ' |
Federal | 4,564 | 3,787 | 12,647 | 11,239 |
State | ' | ' | ' | ' |
Total Income Tax Expense | 2,667 | 3,926 | 11,490 | 12,714 |
Reconciliation of Federal Statutory to Actual Tax Expense: | ' | ' | ' | ' |
Federal statutory income tax at 35% | 4,575 | 5,307 | 15,601 | 16,634 |
Tax-exempt interest income | -1,024 | -927 | -2,842 | -2,788 |
Stock compensation | 14 | 14 | 40 | 56 |
Earnings on life insurance | -213 | -240 | -672 | -954 |
Tax credits | -375 | -19 | -411 | -55 |
Other | -310 | -209 | -226 | -179 |
Total Income Tax Expense | $2,667 | $3,926 | $11,490 | $12,714 |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Basic net income per share: | $10,403 | $11,236 | $33,083 | $34,812 |
Less: Preferred Stock dividends and discount accretion | -430 | -1,134 | -2,139 | -3,404 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | 9,973 | 10,102 | 30,944 | 31,408 |
Effect of dilutive stock options and warrants | ' | ' | ' | ' |
Net income (loss) available to common stockholders | $9,973 | $10,102 | $30,944 | $31,408 |
Net income (loss) available to common stockholders (in shares) | 28,806,809 | 28,649,996 | 28,769,206 | 28,619,186 |
Effect of dilutive stock options and warrants (in shares) | 274,663 | 238,080 | 257,260 | 200,097 |
Net income (loss) available to common stockholders (in shares) | 29,081,472 | 28,888,076 | 29,026,466 | 28,819,283 |
Net income (loss) available to common stockholders (in dollars per share) | $0.35 | $0.35 | $1.08 | $1.09 |
Diluted net income (loss) per share: | ' | ' | ' | ' |
Net income (loss) available to common stockholders (in dollars per share) | $0.35 | $0.35 | $1.07 | $1.09 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Details) (Stock Options) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Stock options not included in the earnings per share calculation (in shares) | 615,151 | 770,001 | 667,382 | 846,499 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | 13-May-13 | 13-May-13 | Oct. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | Merger with CFS Bancorp, Inc. (Citizens) | Merger with CFS Bancorp, Inc. (Citizens) | Subsequent event | ||
Citizens | Merger with CFS Bancorp, Inc. (Citizens) | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | $18.80 |
Estimated transaction value | ' | ' | ' | ' | $134 |
Common stock, par or stated value (in dollars per share) | $0.13 | $0.13 | $0.13 | $0.01 | ' |
Share exchange ratio | ' | ' | 0.65 | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 0 Months Ended | |||||
Sep. 30, 2013 | Jul. 02, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Nov. 01, 2013 | Nov. 01, 2013 | |
Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||
Series B Preferred Stock | Bank of America | Subordinated debenture due February 2015 | Term loan due February 2015 | Subordinated debt | Senior unsecured notes | ||
US Treasury | Credit facility | Bank of America | Bank of America | 6.75% subordinated notes due 2028 | 5% senior unsecured notes due 2028 | ||
Subordinated debt | Term loan | U.S. Bank | U.S. Bank | ||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Amount of privately placed debentures | ' | ' | ' | ' | ' | $65,000,000 | $5,000,000 |
Interest rate on debentures | ' | ' | ' | ' | ' | 6.75% | 5.00% |
Amount of debt refinanced by the private placement | ' | ' | 55,000,000 | 50 | 5 | ' | ' |
Stock redeemed (in shares) | ' | 34,043 | ' | ' | ' | ' | ' |
Aggregate redemption price | $484,000 | $34,043,000 | ' | ' | ' | ' | ' |