Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FRME | ||
Entity Registrant Name | FIRST MERCHANTS CORP | ||
Entity Central Index Key | 712534 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,680,604 | ||
Entity Public Float | $762,144 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $118,616 | $109,434 |
Interest-bearing time deposits | 47,520 | 55,069 |
Investment securities available for sale | 549,543 | 536,201 |
Investment securities held to maturity (fair value of $647,723 and $560,847) | 631,088 | 559,378 |
Loans held for sale | 7,235 | 5,331 |
Loans | 3,924,865 | 3,632,409 |
Less: Allowance for loan losses | -63,964 | -67,870 |
Net loans | 3,860,901 | 3,564,539 |
Premises and equipment | 77,691 | 74,454 |
Federal Reserve and Federal Home Loan Bank stock | 41,353 | 38,990 |
Interest receivable | 19,984 | 18,672 |
Core deposit intangibles | 16,031 | 13,818 |
Goodwill | 202,724 | 188,948 |
Cash surrender value of life insurance | 169,424 | 164,571 |
Other real estate owned | 19,293 | 22,246 |
Tax asset, deferred and receivable | 41,960 | 56,614 |
Other assets | 20,764 | 28,997 |
TOTAL ASSETS | 5,824,127 | 5,437,262 |
Deposits: | ||
Noninterest-bearing | 1,070,859 | 930,772 |
Interest-bearing | 3,569,835 | 3,300,696 |
Total Deposits | 4,640,694 | 4,231,468 |
Borrowings: | ||
Federal funds purchased | 15,381 | 125,645 |
Securities sold under repurchase agreements | 124,539 | 148,672 |
Federal Home Loan Bank advances | 145,264 | 122,140 |
Subordinated debentures and term loans | 126,810 | 126,807 |
Total Borrowings | 411,994 | 523,264 |
Interest payable | 3,201 | 1,771 |
Other liabilities | 41,411 | 45,836 |
Total Liabilities | 5,097,300 | 4,802,339 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY | ||
Cumulative Preferred Stock, $1,000 par value, $1,000 liquidation value, Authorized 600 shares, Issued and outstanding - 125 shares | 125 | 125 |
Common Stock - $.125 stated value, Authorized 50,000,000 shares, Issued and outstanding 37,669,948 and 35,921,761 shares | 4,709 | 4,490 |
Additional paid-in capital | 431,220 | 393,783 |
Retained earnings | 292,403 | 242,935 |
Accumulated other comprehensive loss | -1,630 | -6,410 |
Total Stockholders' Equity | 726,827 | 634,923 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,824,127 | $5,437,262 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity | $647,723 | $560,847 |
Common Stock, stated value (in dollars per share) | $0.13 | $0.13 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares Issued | 37,669,948 | 35,921,761 |
Common Stock, shares outstanding | 37,669,948 | 35,921,761 |
Preferred Stock, par value (in dollars per share) | $1,000 | $1,000 |
Preferred Stock, liquidation value (in dollars per share) | $1,000 | $1,000 |
Preferred Stock, shares authorized | 600 | 600 |
Preferred Stock, shares issued | 125 | 125 |
Preferred Stock, shares outstanding | 125 | 125 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans receivable: | |||
Taxable | $172,039 | $142,752 | $146,745 |
Tax-exempt | 327 | 393 | 480 |
Investment securities: | |||
Taxable | 19,882 | 15,214 | 17,027 |
Tax-exempt | 14,383 | 10,829 | 10,189 |
Deposits with financial institutions | 124 | 158 | 100 |
Federal Reserve and Federal Home Loan Bank stock | 2,124 | 1,488 | 1,408 |
Total Interest Income | 208,879 | 170,834 | 175,949 |
INTEREST EXPENSE | |||
Deposits | 11,678 | 10,053 | 14,800 |
Federal funds purchased | 177 | 102 | 69 |
Securities sold under repurchase agreements | 529 | 787 | 907 |
Federal Home Loan Bank advances | 2,842 | 2,096 | 2,624 |
Subordinated debentures, revolving credit lines and term loans | 6,616 | 3,531 | 5,213 |
Total Interest Expense | 21,842 | 16,569 | 23,613 |
NET INTEREST INCOME | 187,037 | 154,265 | 152,336 |
Provision for loan losses | 2,560 | 6,648 | 18,534 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 184,477 | 147,617 | 133,802 |
OTHER INCOME | |||
Service charges on deposit accounts | 15,747 | 12,400 | 11,587 |
Fiduciary activities | 8,966 | 8,594 | 7,891 |
Other customer fees | 15,699 | 11,866 | 11,233 |
Commission income | 7,411 | 7,141 | 6,224 |
Earnings on cash surrender value of life insurance | 3,659 | 2,613 | 3,418 |
Net gains and fees on sales of loans | 4,899 | 7,511 | 10,628 |
Net realized gains on sales of available for sale securities | 3,581 | 487 | 2,389 |
Gain on FDIC modified whole bank transaction | 9,124 | ||
Other income | 5,705 | 4,197 | 1,808 |
Total Other Income | 65,667 | 54,809 | 64,302 |
OTHER EXPENSES | |||
Salaries and employee benefits | 96,499 | 85,413 | 79,398 |
Net occupancy | 13,831 | 10,291 | 10,186 |
Equipment | 9,337 | 7,737 | 7,201 |
Marketing | 3,464 | 2,236 | 2,158 |
Outside data processing fees | 7,315 | 5,591 | 5,656 |
Printing and office supplies | 1,565 | 1,340 | 1,169 |
Core deposit amortization | 2,445 | 1,649 | 1,927 |
FDIC assessments | 3,738 | 2,862 | 3,509 |
Other real estate owned and foreclosure expenses | 8,043 | 6,661 | 8,178 |
Professional and other outside services | 8,116 | 8,297 | 6,228 |
Other expenses | 14,239 | 11,142 | 11,505 |
Total Other Expenses | 168,592 | 143,219 | 137,115 |
INCOME BEFORE INCOME TAX | 81,552 | 59,207 | 60,989 |
Income tax expense | 21,390 | 14,677 | 15,867 |
NET INCOME | 60,162 | 44,530 | 45,122 |
Preferred stock dividends | -2,380 | -4,539 | |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $60,162 | $42,150 | $40,583 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS PER SHARE: | |||
Basic EPS | $1.66 | $1.42 | $1.42 |
Diluted EPS | $1.65 | $1.41 | $1.41 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $60,162 | $44,530 | $45,122 |
Other comprehensive income (loss) net of tax: | |||
Unrealized holding gain (loss) on securities available for sale arising during the period, net of tax of $8,001, $6,841, and $654 | 14,860 | -12,705 | 1,214 |
Unrealized loss on securities transferred to held-to-maturity, net of tax of $0, $1,786, and $0 | -3,316 | ||
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 $995, $767, and $56 | 1,847 | 1,425 | -104 |
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $1,397, $831, and $514 | -2,599 | 1,543 | -952 |
Reclassification adjustment for net losses (gains) included in net income net of tax of $760, $157, and $759 | -1,410 | 291 | -1,413 |
Defined benefit pension plans, net of tax of $4,264, $6,382, and $346 | |||
Net gain (loss) arising during period | -7,580 | 10,704 | -577 |
Amortization of prior service cost | -338 | 1,147 | -65 |
Period change | 4,780 | -911 | -1,897 |
Comprehensive income | $64,942 | $43,619 | $43,225 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Unrealized holding gain (loss) on securities available for sale arising during the period, income tax | $8,001 | ($6,841) | $654 |
Unrealized gain (loss) on securities transferred to held-to-maturity, tax | -1,786 | 0 | |
Unrealized gain (loss) on securities available for sale for which a portion of an other than temporary impairment has been recognized in income, tax | -995 | -767 | 56 |
Unrealized gains/(losses) arising during the period, tax | -1,397 | 831 | -514 |
Reclassification adjustment for gains (losses) included in net income, tax | 760 | -157 | 759 |
Defined benefit pension plans gain (loss), tax | $4,264 | ($6,382) | $346 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2011 | $514,467,000 | $90,908,000 | $3,570,000 | $254,874,000 | $168,717,000 | ($3,602,000) |
Beginning balance (in shares) at Dec. 31, 2011 | 90,908 | 28,559,707 | ||||
Comprehensive Income | ||||||
Net income | 45,122,000 | 45,122,000 | ||||
Other comprehensive income (loss), net of tax | -1,897,000 | -1,897,000 | ||||
Cash dividends on common stock | -2,903,000 | -2,903,000 | ||||
Cash dividends on preferred stock under small business lending fund | -4,539,000 | -4,539,000 | ||||
Share-based compensation (in shares) | 86,325 | |||||
Share-based compensation | 1,492,000 | 11,000 | 1,481,000 | |||
Stock Issued under employee benefit plans (in shares) | 41,867 | |||||
Stock issued under employee benefit plans | 449,000 | 5,000 | 444,000 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 15,709 | |||||
Stock issued under dividend reinvestment and stock purchase plan | 202,000 | 2,000 | 200,000 | |||
Stock options exercised (in shares) | 10,500 | |||||
Stock options exercised | 78,000 | 1,000 | 77,000 | |||
Stock redeemed (in shares) | -21,492 | |||||
Stock redeemed | -235,000 | -2,000 | -233,000 | |||
Ending balance at Dec. 31, 2012 | 552,236,000 | 90,908,000 | 3,587,000 | 256,843,000 | 206,397,000 | -5,499,000 |
Ending balance (in shares) at Dec. 31, 2012 | 90,908 | 28,692,616 | ||||
Comprehensive Income | ||||||
Net income | 44,530,000 | 44,530,000 | ||||
Other comprehensive income (loss), net of tax | -911,000 | -911,000 | ||||
Cash dividends on common stock | -5,612,000 | -5,612,000 | ||||
Cash dividends on preferred stock under small business lending fund | -2,380,000 | -2,380,000 | ||||
Preferred stock redemption under small business lending fund (in shares) | -90,783 | |||||
Preferred stock redemption under small business lending fund | -90,783,000 | -90,783,000 | ||||
Issuance of common stock related to acquisition (in shares) | 7,079,457 | |||||
Issuance of common stock related to acquisition | 135,642,000 | 885,000 | 134,757,000 | |||
Share-based compensation (in shares) | 116,978 | |||||
Share-based compensation | 1,773,000 | 15,000 | 1,758,000 | |||
Stock Issued under employee benefit plans (in shares) | 33,451 | |||||
Stock issued under employee benefit plans | 479,000 | 4,000 | 475,000 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 18,449 | |||||
Stock issued under dividend reinvestment and stock purchase plan | 325,000 | 2,000 | 323,000 | |||
Stock options exercised (in shares) | 13,750 | |||||
Stock options exercised | 115,000 | 2,000 | 113,000 | |||
Stock redeemed (in shares) | -32,940 | |||||
Stock redeemed | -491,000 | -5,000 | -486,000 | |||
Ending balance at Dec. 31, 2013 | 634,923,000 | 125,000 | 4,490,000 | 393,783,000 | 242,935,000 | -6,410,000 |
Ending balance (in shares) at Dec. 31, 2013 | 125 | 35,921,761 | ||||
Comprehensive Income | ||||||
Net income | 60,162,000 | 60,162,000 | ||||
Other comprehensive income (loss), net of tax | 4,780,000 | 4,780,000 | ||||
Cash dividends on common stock | -10,694,000 | -10,694,000 | ||||
Issuance of common stock related to acquisition (in shares) | 1,574,298 | |||||
Issuance of common stock related to acquisition | 34,981,000 | 197,000 | 34,784,000 | |||
Share-based compensation (in shares) | 132,446 | |||||
Share-based compensation | 2,177,000 | 17,000 | 2,160,000 | |||
Stock Issued under employee benefit plans (in shares) | 26,547 | |||||
Stock issued under employee benefit plans | 478,000 | 3,000 | 475,000 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 24,556 | |||||
Stock issued under dividend reinvestment and stock purchase plan | 523,000 | 3,000 | 520,000 | |||
Stock options exercised (in shares) | 41,249 | 41,249 | ||||
Stock options exercised | 564,000 | 5,000 | 559,000 | |||
Stock redeemed (in shares) | -50,909 | |||||
Stock redeemed | -1,067,000 | -6,000 | -1,061,000 | |||
Ending balance at Dec. 31, 2014 | $726,827,000 | $125,000 | $4,709,000 | $431,220,000 | $292,403,000 | ($1,630,000) |
Ending balance (in shares) at Dec. 31, 2014 | 125 | 37,669,948 |
CONSOLIDATED_STATEMENT_OF_STOC1
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends on common stock (in dollars per share) | $0.29 | $0.18 | $0.10 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flow From Operating Activities: | |||
Net income | $60,162 | $44,530 | $45,122 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,560 | 6,648 | 18,534 |
Depreciation and amortization | 6,007 | 4,670 | 4,472 |
Change in deferred taxes | 23,051 | 13,939 | 15,890 |
Share-based compensation | 2,177 | 1,773 | 1,492 |
Tax benefit from stock options exercised | -60 | ||
Loans originated for sale | -222,892 | -280,693 | -393,565 |
Proceeds from sales of Loans | 220,988 | 297,851 | 389,129 |
Net gain on acquisition | -9,124 | ||
Gains on sales of securities available for sale | -3,581 | -487 | -2,389 |
Change in interest receivable | -545 | -535 | 1,884 |
Change in interest payable | 1,332 | -364 | -1,451 |
Change in other receivable | 110,032 | ||
Other adjustments | -13,359 | -14,233 | 275 |
Net cash provided by operating activities | 75,840 | 183,131 | 70,269 |
Cash Flows from Investing Activities: | |||
Net change in interest-bearing deposits | 24,075 | 196,753 | 14,408 |
Purchases of: | |||
Securities available for sale | -110,936 | -398,491 | -139,555 |
Securities held to maturity | -142,988 | -11,145 | -4,262 |
Proceeds from sales of securities available for sale | 126,575 | 25,222 | 52,350 |
Proceeds from maturities of: | |||
Securities available for sale | 68,339 | 93,273 | 112,141 |
Securities held to maturity | 69,420 | 78,534 | 68,118 |
Change in Federal Reserve and Federal Home Loan Bank stock | -413 | -17 | 246 |
Net change in loans | -170,109 | -142,861 | -123,036 |
Net cash and cash equivalents received (paid) in acquisition | -10,084 | 10,992 | 29,113 |
Proceeds from the sale of other real estate owned | 14,241 | 12,346 | 4,428 |
Other adjustments | 5,889 | -2,768 | -2,065 |
Net cash provided by (used in) investing activities | -125,991 | -138,162 | 11,886 |
Net change in : | |||
Demand and savings deposits | 53,062 | 141,052 | 228,725 |
Certificates of deposit and other time deposits | 127,740 | -211,399 | -142,906 |
Borrowings | 678,290 | 295,537 | 138,127 |
Repayment of borrowings | -789,563 | -163,838 | -271,005 |
Cash dividends on common stock | -10,694 | -5,612 | -2,903 |
Cash dividends on preferred stock | -2,380 | -4,539 | |
Stock issued under employee benefit plans | 478 | 479 | 449 |
Stock issued under dividend reinvestment and stock purchase plans | 523 | 325 | 202 |
Stock options exercised | 504 | 115 | 78 |
Tax benefit from stock options exercised | 60 | ||
Cumulative preferred stock redeemed (SBLF) | -90,783 | ||
Stock redeemed | -1,067 | -491 | -235 |
Net cash provided by (used in) financing activities | 59,333 | -36,995 | -54,007 |
Net Change in Cash and Cash Equivalents | 9,182 | 7,974 | 28,148 |
Cash and Cash Equivalents, January 1 | 109,434 | 101,460 | 73,312 |
Cash and Cash Equivalents, December 31 | 118,616 | 109,434 | 101,460 |
Additional cash flow information: | |||
Interest paid | 20,412 | 16,639 | 24,697 |
Income tax paid | 6,209 | 7,578 | 11,738 |
Loans transferred to other real estate owned | 4,431 | 7,170 | 4,441 |
Fixed assets transferred to other real estate owned | 297 | 461 | |
Non-cash investing activities using trade date accounting | 3,170 | 4,984 | 1,518 |
Liabilities assumed in conjunction with acquisitions | |||
Fair value of assets acquired | 280,725 | 1,132,231 | 128,923 |
Cash received (paid) in acquisition | -14,208 | 17,200 | |
Net gain on acquisition | -9,124 | ||
Less: Common stock issued | 34,981 | 135,642 | |
Liabilities assumed | $231,536 | $996,589 | $136,999 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
The accounting and reporting policies of First Merchants Corporation (the “Corporation”), and its principal wholly owned subsidiaries, First Merchants Bank, N.A. (the “Bank”), and First Merchants Insurance Services, Inc. operating as First Merchants Insurance Group (“FMIG”), conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The Bank also operates Lafayette Bank and Trust, Commerce National Bank, Community Bank of Noblesville and First Merchants Trust Company as divisions of First Merchants Bank, N.A. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
The Corporation is a financial holding company whose principal activity is the ownership and management of the Bank and operates in a single significant business segment. The Bank operates under a national bank charter and provides full banking services. As a national bank, the Bank is subject to the regulation of the Office of Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). The OCC and the FDIC regulate or monitor virtually all areas of the Bank’s operations. The Bank must undergo regular on-site examinations by the OCC and FDIC and must submit periodic reports to both. | |
The Bank generates commercial, mortgage, and consumer loans and receives deposits from customers located primarily in central and northwest Indiana, northeast Illinois and central Ohio counties. The Bank’s loans are generally secured by specific items of collateral, including real property, consumer assets and business assets. | |
A brief description of current accounting practices and current valuation methodologies are presented below. | |
CONSOLIDATION of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions. | |
BUSINESS COMBINATIONS are accounted for under the acquisition method of accounting. Under the acquisition method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. | |
AVAILABLE FOR SALE SECURITIES are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income. Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are recorded as interest income from securities. | |
Available for sale and held to maturity securities are evaluated for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under ASC 320. However, certain purchased beneficial interest, including certain non-agency government-sponsored mortgage-backed securities, asset-backed securities and collateralized debt obligations are evaluated using the model outlined in ASC 325-10. | |
In determining OTTI under ASC 320, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Corporation has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether a decline exists that is other-than-temporary, involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | |
When the Corporation does not intend to sell a debt security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors has been recognized in other comprehensive income, net of applicable income taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. | |
If the intent is to sell or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss, the OTTI is recognized in earnings equal to the entire difference between the investment’s amortized cost basis, less any recognized credit loss, and its fair value at the balance sheet date. | |
HELD TO MATURITY SECURITIES are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. For held to maturity debt securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |
LOANS HELD FOR SALE are carried at the principal amount outstanding. The carrying amount approximates fair value due to the short duration between origination and the date of sale. | |
LOANS held in the Corporation’s portfolio are carried at the principal amount outstanding, net of unearned income. Certain non-accrual and substantially delinquent loans may be considered to be impaired. A loan is impaired when, based on current information or events, it is probable that the Bank will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. In applying the provisions of ASC 310, the Corporation considers its investment in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment. Interest income is accrued on the principal balances of loans, except for installment loans with add-on interest, for which a method that approximates the level yield method is used. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectable. Interest income accrued in the prior year, if any, is charged to the allowance for loan losses. Interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status. Certain loan fees and direct costs are being deferred and amortized as an adjustment of yield on the loans. | |
Impaired loans are carried at the present value of estimated future cash flows using the loan’s existing rate, or the fair value of collateral if the loan is collateral dependent. 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. The valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis. | |
Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses which limit the Bank’s exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. | |
LOANS ACQUIRED IN BUSINESS COMBINATIONS 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 purchase dates may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30). These loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying ASC 310-30, loans acquired in business combinations are aggregated into pools of loans with common risk characteristics for the initial fair value measurement. Accordingly, allowances for credit losses related to these loans are not carried over and recorded at the acquisition date. | |
The expected cash flows of the acquired loans in excess of the fair values recorded is referred to as the accretable yield and is recognized in interest income over the remaining estimated lives of the loans. The Corporation will continually evaluate the fair value of the loans including cash flows expected to be collected. | |
ALLOWANCE FOR LOAN LOSSES is maintained to absorb losses inherent in the loan portfolio and is based on ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current operating results. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Corporation’s strategy for credit risk management includes conservative credit policies and underwriting criteria for all loans, as well as an overall credit limit for each customer significantly below legal lending limits. The strategy also emphasizes diversification on a regional geographic, industry and customer level, regular credit quality reviews and management reviews of large credit exposures and loans experiencing deterioration of credit quality. | |
The Corporation’s methodology for assessing the appropriateness of the allowance consists of three key elements – the determination of the appropriate reserves for specifically identified loans, probable losses estimated from historical loss rates, and probable losses resulting from economic, environmental, qualitative or other deterioration above and beyond what is reflected in the first two components of the allowance. | |
Larger commercial loans that exhibit probable or observed credit weaknesses are subject to individual review. Where appropriate, reserves are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Corporation. Included in the review of individual loans are those that are impaired as provided in ASC 310. Any allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or fair value of the underlying collateral. The Corporation evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical loss rates are applied to other commercial loans not subject to specific reserve allocations. | |
The historical allocation for commercial loans graded pass are established by loan segments using loss rates based on the Corporation’s migration analysis. This migration analysis shows the loss rates for each segment of loans based on the loan grades at the beginning of the twelve month period. This loss rate is then applied to the current portfolio of loans in each respective loan segment. | |
Homogenous loans, such as consumer installment and residential mortgage loans, are not individually risk graded. Reserves are established for each segment of loans using loss rates based on charge offs for the same period as the migration analysis used for commercial loans. | |
Historical loss allocations for commercial and consumer loans may be adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Factors which management considers in the analysis include the effects of the national and local economies, trends in loan growth and charge-off rates, changes in mix, concentration of loans in specific industries, asset quality trends (delinquencies, charge offs and non-accrual loans), risk management and loan administration, changes in the internal lending policies and credit standards, examination results from bank regulatory agencies and the Corporation’s internal loan review. | |
PENSION benefits are provided to the Corporation’s employees. Its accounting policies related to pensions and other post retirement benefits reflect the guidance in ASC 715, Compensation – Retirement Benefits. The Corporation does not consolidate the assets and liabilities associated with the pension plan. Instead, the Corporation recognizes the funded status of the plan in the consolidated balance sheets. The measurement of the funded status and the annual pension expense involves actuarial and economic assumptions. Various statistical and other factors, which attempt to anticipate future events, are used in calculating the expense and liabilities related to the plans. Key factors include assumptions on the expected rates of return on plan assets, discount rates, expected rates of salary increases and health care costs and trends. The Corporation considers market conditions, including changes in investment returns and interest rates in making these assumptions. The primary assumptions used in determining the Corporation’s pension and post retirement benefit obligations and related expenses are presented in Note 21. PENSION AND OTHER POST RETIREMENT BENEFIT PLANS, in the Notes to Consolidated Financial Statements included as Item 8 of this Annual Report on Form 10-K. | |
PREMISES AND EQUIPMENT is carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line and declining balance methods based on the estimated useful lives of the assets ranging from three to forty years. Maintenance and repairs are expensed as incurred, while major additions and improvements, which extend the useful life, are capitalized. Gains and losses on dispositions are included in current operations. | |
FEDERAL RESERVE AND FEDERAL HOME LOAN BANK STOCK are required investments for institutions that are members of the Federal Reserve Bank (“FRB”) and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula based on the level of borrowings and other factors. These investments are carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
INTANGIBLE ASSETS that are subject to amortization, including core deposit intangibles, are being amortized on both the straight-line and accelerated basis over three to twenty years. Intangible assets are periodically evaluated as to the recoverability of their carrying value. | |
GOODWILL is maintained by applying the provisions of ASC 350. For purchase acquisitions, the Corporation is required to record the assets acquired, including identified intangible assets, and the liabilities assumed at their fair value, which in many instances involves estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation techniques that may include estimates of attrition, inflation, asset growth rates or other relevant factors. In addition, the determination of the useful lives for which an intangible asset will be amortized is subjective. | |
Under ASC 350, Intangibles – Goodwill and Other, the Corporation is required to evaluate goodwill for impairment on an annual basis, as well as on an interim basis, if events or changes indicate that the asset may be impaired, indicating that the carrying value may not be recoverable. The Corporation has historically elected to test for goodwill impairment as of October 1 of each year and has determined that no impairment exists. | |
BANK OWNED LIFE INSURANCE has been purchased on certain employees and directors of the Corporation. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. | |
OTHER REAL ESTATE OWNED consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in net income or expense from foreclosed assets. Other real estate owned also includes bank premises qualifying as held for sale. Bank premises are transferred at the lower of carrying value or fair value less cost to sell. | |
DERIVATIVE INSTRUMENTS are carried at the fair value of the derivatives and 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. | |
As part of the asset/liability management program, the Corporation will utilize, from time to time, interest rate floors, caps or swaps to reduce its sensitivity to interest rate fluctuations. These are derivative instruments, which are recorded as assets or liabilities in the consolidated balance sheets at fair value. Changes in the fair values of derivatives are reported in the consolidated statements of operations or other comprehensive income (“OCI”) depending on the use of the derivative and whether the instrument qualifies for hedge accounting. The key criterion for the hedge accounting is that the hedged relationship must be highly effective in achieving offsetting changes in those cash flows that are attributable to the hedged risk, both at inception of the hedge and on an ongoing basis. | |
Derivatives that qualify for the hedge accounting treatment are designated as either: a hedge of the fair value of the recognized asset or liability or of an unrecognized firm commitment (a fair value hedge) or a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge). To date, the Corporation has only entered into a cash flow hedge. For cash flow hedges, changes in the fair values of the derivative instruments are reported in OCI to the extent the hedge is effective. The gains and losses on derivative instruments that are reported in OCI are reflected in the consolidated statements of income in the periods in which the results of operations are impacted by the variability of the cash flows of the hedged item. Generally, net interest income is increased or decreased by amounts receivable or payable with respect to the derivatives, which qualify for hedge accounting. At inception of the hedge, the Corporation establishes the method it uses for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. The ineffective portion of the hedge, if any, is recognized currently in the consolidated statements of operations. The Corporation excludes the time value expiration of the hedge when measuring ineffectiveness. | |
The Corporation offers interest rate derivative products (e.g. interest rate swaps) to certain of its high-quality commercial borrowers. This product allows customers to enter into an agreement with the Corporation to swap their variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the risk of changes in the borrower’s interest rate or market price risk. The extension of credit incurred through the execution of these derivative products is subject to the same approvals and rigorous underwriting standards as the related traditional credit product. The Corporation limits its risk exposure to these products by entering into a mirror-image, offsetting swap agreement with a separate, well-capitalized and rated counterparty previously approved by the Credit and Asset Liability Committee. By using these interest rate swap arrangements, the Corporation is also better insulated from the interest rate risk associated with underwriting fixed-rate loans. These derivative contracts are not designated against specific assets or liabilities under ASC 815, Derivatives and Hedging, and, therefore, do not qualify for hedge accounting. The derivatives are recorded on the balance sheet at fair value and changes in fair value of both the customer and the offsetting swap agreements are recorded (and essentially offset) in non-interest income. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820), resulting in some volatility in earnings each period. | |
INCOME TAX in the consolidated statements of income includes deferred income tax provisions or benefits for all significant temporary differences in recognizing income and expenses for financial reporting and income tax purposes. The Corporation files consolidated income tax returns with its subsidiaries. | |
The Corporation adopted the provisions of the ASC 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740, the Corporation did not identify any uncertain tax positions that it believes should be recognized in the financial statements. The tax years still subject to examination by taxing authorities are years subsequent to 2010. | |
STOCK OPTION AND RESTRICTED STOCK AWARD PLANS are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two or three years. | |
TRANSFERS OF FINANCIAL ASSETS are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |
NET INCOME PER SHARE is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, plus the dilutive effect of outstanding stock options and nonvested restricted stock. | |
RECLASSIFICATIONS have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Purchase_and_Assumption
Purchase and Assumption | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase and Assumption | BUSINESS COMBINATIONS | |||||||||||
Community Bancshares, Inc. | ||||||||||||
On November 7, 2014, the Corporation acquired 100 percent of Community Bancshares, Inc. ("Community"). Community was headquartered in Noblesville, Indiana and had 10 full-service banking centers serving central Indiana. Pursuant to the merger agreement, each outstanding share of common stock of Community was converted into the right to receive either (a) 4.0926 shares of the Corporation's common stock, plus cash in lieu of fractional shares; or (b) $85.94 in cash, based upon shareholder elections. The Corporation paid $14.2 million in cash and issued approximately 1.6 million shares of common stock, valued at approximately $35.0 million, for a total purchase price of approximately $49.2 million. | ||||||||||||
The Corporation engaged in this transaction with the expectation that it would be accretive and expand the existing footprint in central Indiana. Goodwill resulted from this transaction due to the expected synergies from combining operations. | ||||||||||||
Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Community acquisition is detailed in the following table. | ||||||||||||
Prior to the end of the one year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. | ||||||||||||
Fair Value | ||||||||||||
Cash and cash equivalents | $ | 4,124 | ||||||||||
Interest -bearing time deposits | 16,526 | |||||||||||
Investment Securities, available for sale | 76,807 | |||||||||||
Loans | 145,064 | |||||||||||
Premises and equipment | 3,610 | |||||||||||
Federal Home Loan Bank stock | 1,950 | |||||||||||
Interest Receivable | 767 | |||||||||||
Cash surrender value of life insurance | 3,266 | |||||||||||
Other real estate owned | 6,662 | |||||||||||
Taxes, deferred and receivable | 3,348 | |||||||||||
Other assets | 167 | |||||||||||
Deposits | (228,424 | ) | ||||||||||
Interest payable | (98 | ) | ||||||||||
Other liabilities | (3,014 | ) | ||||||||||
Net tangible assets acquired | $ | 30,755 | ||||||||||
Core deposit intangible | 4,658 | |||||||||||
Goodwill | 13,776 | |||||||||||
Purchase price | $ | 49,189 | ||||||||||
Of the total purchase price, $4,658,000 has been allocated to a core deposit intangible that will be amortized over its estimated life of 10 years. The remaining purchase price has been allocated to goodwill, which is not deductible for tax purposes. | ||||||||||||
CFS Bancorp, Inc. | ||||||||||||
On November 12, 2013, the Corporation acquired 100 percent of CFS Bancorp, Inc. ("CFS") in an all stock transaction. CFS was headquartered in Munster, Indiana and had 20 full-service banking centers serving the northwestern Indiana and northeastern Illinois areas. Pursuant to the merger agreement, the shareholders of CFS received 0.65 percent of a share of the Corporation's common stock for each share of CFS Bancorp common stock held. The Corporation issued approximately 7.1 million shares of common stock, which was valued at approximately $135.6 million. | ||||||||||||
The Corporation engaged in this transaction with the expectation that it would be accretive and add a new market area with a demographic profile consistent with many of the current Indiana markets served by the Bank. Goodwill resulted from this transaction due to the expected synergies from combining operations. | ||||||||||||
The purchase price for the CFS acquisition was allocated as follows: | ||||||||||||
Fair Value | ||||||||||||
Cash and cash equivalents | $ | 10,992 | ||||||||||
Interest-bearing time deposits | 213,379 | |||||||||||
Investment securities available for sale | 15,913 | |||||||||||
Investment securities held to maturity | 14,372 | |||||||||||
Mortgage loans held for sale | 189 | |||||||||||
Loans | 603,114 | |||||||||||
Premises and equipment | 19,643 | |||||||||||
Federal Home Loan Bank stock | 6,188 | |||||||||||
Interest receivable | 1,770 | |||||||||||
Cash surrender value of life insurance | 36,555 | |||||||||||
Other real estate owned | 12,857 | |||||||||||
Tax asset, deferred and receivable | 30,717 | |||||||||||
Other assets | 111,656 | |||||||||||
Deposits | (955,432 | ) | ||||||||||
Securities sold under repurchase agreements | (9,830 | ) | ||||||||||
Federal Home Loan Bank advances | (15,000 | ) | ||||||||||
Interest payable | (294 | ) | ||||||||||
Other liabilities | (16,033 | ) | ||||||||||
Net tangible assets acquired | $ | 80,756 | ||||||||||
Core deposit intangible | 7,313 | |||||||||||
Goodwill | 47,573 | |||||||||||
Purchase price | $ | 135,642 | ||||||||||
Of the total purchase price, $7,313,000 has been allocated to a core deposit intangible that will be amortized over its estimated life of 10 years. The remaining purchase price has been allocated to goodwill, which is not deductible for tax purposes. | ||||||||||||
Pro Forma Financial Information | ||||||||||||
The results of operations of Community and CFS have been included in the Corporation's consolidated financial statements since the acquisition dates. The following schedule includes pro forma results for the periods ended December 31, 2014, 2013 and 2012 as if the Community and CFS acquisitions had occurred as of the beginning of the comparable prior annual reporting period. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Total revenue (net interest income plus other income) | $ | 263,070 | $ | 253,668 | $ | 266,034 | ||||||
Net income | $ | 61,572 | $ | 39,979 | $ | 50,092 | ||||||
Net income available to common shareholders | $ | 61,572 | $ | 37,599 | $ | 45,553 | ||||||
Earnings per share: | ||||||||||||
Basic | $ | 1.63 | $ | 0.98 | $ | 1.28 | ||||||
Diluted | $ | 1.61 | $ | 0.97 | $ | 1.27 | ||||||
The pro forma information includes adjustments for interest income on loans, amortization of intangibles arising from the transaction, interest expense on deposits acquired, premises expense for the banking centers acquired and the related income tax effects. The pro forma information for the year ended 2014 includes $1.6 million of operating revenue from Community since the acquisition and approximately $1.8 million, net of tax, of non-recurring expenses directly attributable to the Community acquisition. The pro forma information for the year ended 2013 includes $4.9 million of operating revenue from CFS since the acquisition and approximately $9.5 million, net of tax, of non-recurring expenses directly attributable to the CFS acquisition. | ||||||||||||
The pro forma financial information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition consummated as of that time, nor is it intended to be a projection of future results. | ||||||||||||
SCB Bank | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase and Assumption | PURCHASE AND ASSUMPTION | |||||||||||
Effective February 10, 2012, 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 in 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 Bank 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 would be 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 or 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. |
Business_Combination
Business Combination | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Business Combinations | BUSINESS COMBINATIONS | |||||||||||
Community Bancshares, Inc. | ||||||||||||
On November 7, 2014, the Corporation acquired 100 percent of Community Bancshares, Inc. ("Community"). Community was headquartered in Noblesville, Indiana and had 10 full-service banking centers serving central Indiana. Pursuant to the merger agreement, each outstanding share of common stock of Community was converted into the right to receive either (a) 4.0926 shares of the Corporation's common stock, plus cash in lieu of fractional shares; or (b) $85.94 in cash, based upon shareholder elections. The Corporation paid $14.2 million in cash and issued approximately 1.6 million shares of common stock, valued at approximately $35.0 million, for a total purchase price of approximately $49.2 million. | ||||||||||||
The Corporation engaged in this transaction with the expectation that it would be accretive and expand the existing footprint in central Indiana. Goodwill resulted from this transaction due to the expected synergies from combining operations. | ||||||||||||
Under the acquisition method of accounting, the total purchase price is allocated to net tangible and intangible assets based on their current estimated fair values on the date of the acquisition. Based on preliminary valuations of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on assumptions that are subject to change, the purchase price for the Community acquisition is detailed in the following table. | ||||||||||||
Prior to the end of the one year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. | ||||||||||||
Fair Value | ||||||||||||
Cash and cash equivalents | $ | 4,124 | ||||||||||
Interest -bearing time deposits | 16,526 | |||||||||||
Investment Securities, available for sale | 76,807 | |||||||||||
Loans | 145,064 | |||||||||||
Premises and equipment | 3,610 | |||||||||||
Federal Home Loan Bank stock | 1,950 | |||||||||||
Interest Receivable | 767 | |||||||||||
Cash surrender value of life insurance | 3,266 | |||||||||||
Other real estate owned | 6,662 | |||||||||||
Taxes, deferred and receivable | 3,348 | |||||||||||
Other assets | 167 | |||||||||||
Deposits | (228,424 | ) | ||||||||||
Interest payable | (98 | ) | ||||||||||
Other liabilities | (3,014 | ) | ||||||||||
Net tangible assets acquired | $ | 30,755 | ||||||||||
Core deposit intangible | 4,658 | |||||||||||
Goodwill | 13,776 | |||||||||||
Purchase price | $ | 49,189 | ||||||||||
Of the total purchase price, $4,658,000 has been allocated to a core deposit intangible that will be amortized over its estimated life of 10 years. The remaining purchase price has been allocated to goodwill, which is not deductible for tax purposes. | ||||||||||||
CFS Bancorp, Inc. | ||||||||||||
On November 12, 2013, the Corporation acquired 100 percent of CFS Bancorp, Inc. ("CFS") in an all stock transaction. CFS was headquartered in Munster, Indiana and had 20 full-service banking centers serving the northwestern Indiana and northeastern Illinois areas. Pursuant to the merger agreement, the shareholders of CFS received 0.65 percent of a share of the Corporation's common stock for each share of CFS Bancorp common stock held. The Corporation issued approximately 7.1 million shares of common stock, which was valued at approximately $135.6 million. | ||||||||||||
The Corporation engaged in this transaction with the expectation that it would be accretive and add a new market area with a demographic profile consistent with many of the current Indiana markets served by the Bank. Goodwill resulted from this transaction due to the expected synergies from combining operations. | ||||||||||||
The purchase price for the CFS acquisition was allocated as follows: | ||||||||||||
Fair Value | ||||||||||||
Cash and cash equivalents | $ | 10,992 | ||||||||||
Interest-bearing time deposits | 213,379 | |||||||||||
Investment securities available for sale | 15,913 | |||||||||||
Investment securities held to maturity | 14,372 | |||||||||||
Mortgage loans held for sale | 189 | |||||||||||
Loans | 603,114 | |||||||||||
Premises and equipment | 19,643 | |||||||||||
Federal Home Loan Bank stock | 6,188 | |||||||||||
Interest receivable | 1,770 | |||||||||||
Cash surrender value of life insurance | 36,555 | |||||||||||
Other real estate owned | 12,857 | |||||||||||
Tax asset, deferred and receivable | 30,717 | |||||||||||
Other assets | 111,656 | |||||||||||
Deposits | (955,432 | ) | ||||||||||
Securities sold under repurchase agreements | (9,830 | ) | ||||||||||
Federal Home Loan Bank advances | (15,000 | ) | ||||||||||
Interest payable | (294 | ) | ||||||||||
Other liabilities | (16,033 | ) | ||||||||||
Net tangible assets acquired | $ | 80,756 | ||||||||||
Core deposit intangible | 7,313 | |||||||||||
Goodwill | 47,573 | |||||||||||
Purchase price | $ | 135,642 | ||||||||||
Of the total purchase price, $7,313,000 has been allocated to a core deposit intangible that will be amortized over its estimated life of 10 years. The remaining purchase price has been allocated to goodwill, which is not deductible for tax purposes. | ||||||||||||
Pro Forma Financial Information | ||||||||||||
The results of operations of Community and CFS have been included in the Corporation's consolidated financial statements since the acquisition dates. The following schedule includes pro forma results for the periods ended December 31, 2014, 2013 and 2012 as if the Community and CFS acquisitions had occurred as of the beginning of the comparable prior annual reporting period. | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Total revenue (net interest income plus other income) | $ | 263,070 | $ | 253,668 | $ | 266,034 | ||||||
Net income | $ | 61,572 | $ | 39,979 | $ | 50,092 | ||||||
Net income available to common shareholders | $ | 61,572 | $ | 37,599 | $ | 45,553 | ||||||
Earnings per share: | ||||||||||||
Basic | $ | 1.63 | $ | 0.98 | $ | 1.28 | ||||||
Diluted | $ | 1.61 | $ | 0.97 | $ | 1.27 | ||||||
The pro forma information includes adjustments for interest income on loans, amortization of intangibles arising from the transaction, interest expense on deposits acquired, premises expense for the banking centers acquired and the related income tax effects. The pro forma information for the year ended 2014 includes $1.6 million of operating revenue from Community since the acquisition and approximately $1.8 million, net of tax, of non-recurring expenses directly attributable to the Community acquisition. The pro forma information for the year ended 2013 includes $4.9 million of operating revenue from CFS since the acquisition and approximately $9.5 million, net of tax, of non-recurring expenses directly attributable to the CFS acquisition. | ||||||||||||
The pro forma financial information is presented for information purposes only and is not indicative of the results of operations that actually would have been achieved had the acquisition consummated as of that time, nor is it intended to be a projection of future results. |
Restriction_on_Cash_and_Due_Fr
Restriction on Cash and Due From Banks | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Restriction on Cash and Due From Banks | RESTRICTION ON CASH AND DUE FROM BANKS |
The Corporation considers all liquid investments with original maturities of three months or less to be cash equivalents. As of December 31, 2014, cash and cash equivalents is defined to include cash on hand, deposits in other institutions and federal funds sold. | |
Effective October 3, 2008, the FDIC’s insurance limits temporarily increased to $250,000. On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) was signed into law, which, in part, permanently raised the standard maximum deposit insurance amount to $250,000. On November 9, 2010, the FDIC implemented section 343 of the Dodd-Frank Act providing unlimited insurance coverage on noninterest-bearing transaction accounts. Beginning December 31, 2010, through December 31, 2012, all noninterest-bearing transaction accounts were fully insured, regardless of the balance of the account, at all FDIC-insured institutions. As of January 1, 2013, noninterest-bearing transaction deposit accounts are no longer insured separately from other accounts at the same FDIC-insured institution. Instead, noninterest-bearing transaction accounts are added to any of the Corporation's other accounts, and the aggregate balance insured up to at least the Standard Maximum Deposit Insurance Amount of $250,000, at each institution. | |
At December 31, 2014, the Corporation’s interest-bearing cash accounts and noninterest-bearing transaction deposits held at other institutions exceeded federally insured limits by approximately $103,154,000. Each correspondent bank’s financial performance and market rating are reviewed on a quarterly basis to ensure the Corporation has deposits only at institutions providing minimal risk for those exceeding the federally insured limits. | |
Additionally, the Corporation had approximately $13,910,000 at the Federal Home Loan Bank and Federal Reserve Bank, which are government-sponsored entities not insured by the FDIC. | |
The Corporation is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2014, was $22,595,000. |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES | |||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and approximate market value of the Corporation's investment securities at the dates indicated were: | ||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||
Available for sale at December 31, 2014 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 100 | $ | 9 | $ | 109 | ||||||||||||||||||
State and municipal | 216,915 | 11,801 | $ | 123 | 228,593 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 310,460 | 8,771 | 127 | 319,104 | ||||||||||||||||||||
Corporate obligations | 31 | 31 | ||||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 529,212 | 20,581 | 250 | 549,543 | ||||||||||||||||||||
Held to maturity at December 31, 2014 | ||||||||||||||||||||||||
State and municipal | 204,443 | 5,716 | 96 | 210,063 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 426,645 | 11,527 | 512 | 437,660 | ||||||||||||||||||||
Total held to maturity | 631,088 | 17,243 | 608 | 647,723 | ||||||||||||||||||||
Total Investment Securities | $ | 1,160,300 | $ | 37,824 | $ | 858 | $ | 1,197,266 | ||||||||||||||||
Available for sale at December 31, 2013 | ||||||||||||||||||||||||
U.S. Treasury | $ | 15,914 | $ | 80 | $ | 21 | $ | 15,973 | ||||||||||||||||
U.S. Government-sponsored agency securities | 3,550 | 12 | 17 | 3,545 | ||||||||||||||||||||
State and municipal | 231,005 | 3,878 | 3,896 | 230,987 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 279,299 | 3,926 | 1,973 | 281,252 | ||||||||||||||||||||
Corporate obligations | 6,374 | 3,636 | 2,738 | |||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 537,848 | 7,896 | 9,543 | 536,201 | ||||||||||||||||||||
Held to maturity at December 31, 2013 | ||||||||||||||||||||||||
State and municipal | 145,941 | 62 | 91 | 145,912 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 413,437 | 5,220 | 3,722 | 414,935 | ||||||||||||||||||||
Total held to maturity | 559,378 | 5,282 | 3,813 | 560,847 | ||||||||||||||||||||
Total Investment Securities | $ | 1,097,226 | $ | 13,178 | $ | 13,356 | $ | 1,097,048 | ||||||||||||||||
Certain investments in debt securities are reported in the financial statements at amounts less than their historical cost. The historical cost of these investments totaled $73,249,000 and $490,488,000 at December 31, 2014 and 2013, respectively. Total fair value of these investments was $72,390,000 and $477,132,000, which was approximately 6.1 and 43.6 percent of the Corporation's available for sale and held to maturity investment portfolio at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Except as discussed below, management believes the decline in fair value for these securities was temporary. Should the 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 during the period the other-than-temporary impairment (“OTTI”) is identified. | ||||||||||||||||||||||||
The Corporation’s management has evaluated all securities with unrealized losses for OTTI as of December 31, 2014. 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. | ||||||||||||||||||||||||
In determining the fair value of the investment securities portfolio, the Corporation utilizes a third party for portfolio accounting services, including market value input, for those securities classified as Level I and Level II in the fair value hierarchy. The Corporation has obtained an understanding of what inputs are being used by the vendor in pricing the portfolio and how the vendor classified 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. Fair value of securities classified as Level 3 in the valuation hierarchy was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. | ||||||||||||||||||||||||
U.S. Government-Sponsored Mortgage-Backed Securities | ||||||||||||||||||||||||
The unrealized losses on the Corporation's investment in mortgage-backed securities were a result of interest rate changes. The Corporation expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2014. As noted in the table above, the mortgage-backed securities portfolio contains unrealized losses of $127,000 on four securities and $512,000 on thirteen securities in the available for sale and held to maturity portfolios, respectively. All these securities are issued by a government-sponsored entity. | ||||||||||||||||||||||||
State and Municipal Securities | ||||||||||||||||||||||||
The unrealized losses on the Corporation's investments in securities of state and political subdivisions were caused by interest rate increases. 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. Because the Corporation does not intend to sell the investments and it is not more likely than not that the Corporation will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Corporation does not consider those investments to be other-than-temporarily impaired at December 31, 2014. As noted in the table above, the state and political subdivision securities portfolio contains unrealized losses of $123,000 on twenty-two securities and $96,000 on sixteen securities in the available for sale and held to maturity portfolios respectively. | ||||||||||||||||||||||||
Corporate Obligations | ||||||||||||||||||||||||
In 2013, the Corporation’s unrealized losses on trust preferred securities totaled $3.6 million on a book value of $6.4 million. In 2014, the Corporation sold all but one of its trust preferred securities, which resulted in gains of $1.9 million. These securities had previous OTTI of $9.4 million. The one remaining trust preferred security has no remaining book value as a result of OTTI of approximately $500,000 taken in 2009. | ||||||||||||||||||||||||
Certain 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 Credit Losses in | Accumulated Credit Losses in | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Credit losses on debt securities held: | ||||||||||||||||||||||||
Balance, January 1 | $ | 11,355 | $ | 11,355 | ||||||||||||||||||||
Reductions for previous other-than-temporary losses realized on securities sold during the year | (10,855 | ) | ||||||||||||||||||||||
Balance, December 31 | $ | 500 | $ | 11,355 | ||||||||||||||||||||
The following table shows the Corporation’s gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | ||||||||||||||||||||||||
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 Available for Sale Securities at December 31, 2014 | ||||||||||||||||||||||||
State and municipal | $ | 1,256 | $ | 7 | $ | 9,850 | $ | 116 | $ | 11,106 | $ | 123 | ||||||||||||
U.S. Government-sponsored mortgage-backed securities | 2,186 | 13 | 5,447 | 114 | 7,633 | 127 | ||||||||||||||||||
Total Temporarily Impaired Available for Sale Securities | 3,442 | 20 | 15,297 | 230 | 18,739 | 250 | ||||||||||||||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2014 | ||||||||||||||||||||||||
State and municipal | 5,119 | 96 | 250 | 5,369 | 96 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 9,791 | 82 | 38,491 | 430 | 48,282 | 512 | ||||||||||||||||||
Total Temporarily Impaired Held to Maturity Securities | 14,910 | 178 | 38,741 | 430 | 53,651 | 608 | ||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 18,352 | $ | 198 | $ | 54,038 | $ | 660 | $ | 72,390 | $ | 858 | ||||||||||||
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 Available for Sale Securities at December 31, 2013 | ||||||||||||||||||||||||
U.S. Treasury | $ | 4,875 | $ | 21 | $ | 4,875 | $ | 21 | ||||||||||||||||
U.S. Government-sponsored agency securities | 3,433 | 17 | 3,433 | 17 | ||||||||||||||||||||
State and municipal | 111,791 | 3,840 | $ | 583 | $ | 56 | 112,374 | 3,896 | ||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 117,866 | 1,701 | 2,683 | 272 | 120,549 | 1,973 | ||||||||||||||||||
Corporate obligations | 2,711 | 3,636 | 2,711 | 3,636 | ||||||||||||||||||||
Total Temporarily Impaired Available for Sale Securities | 237,965 | 5,579 | 5,977 | 3,964 | 243,942 | 9,543 | ||||||||||||||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2013 | ||||||||||||||||||||||||
State and municipal | 17,318 | 91 | 184 | 17,502 | 91 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 213,048 | 3,462 | 2,640 | 260 | 215,688 | 3,722 | ||||||||||||||||||
Total Temporarily Impaired Held to Maturity Securities | 230,366 | 3,553 | 2,824 | 260 | 233,190 | 3,813 | ||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 468,331 | $ | 9,132 | $ | 8,801 | $ | 4,224 | $ | 477,132 | $ | 13,356 | ||||||||||||
The amortized cost and fair value of securities available for sale and held to maturity at December 31, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available for Sale | Held to Maturity | |||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||
Maturity Distribution at December 31, 2014 | ||||||||||||||||||||||||
Due in one year or less | $ | 3,127 | $ | 3,153 | $ | 6,258 | $ | 6,329 | ||||||||||||||||
Due after one through five years | 9,565 | 9,840 | 18,440 | 18,930 | ||||||||||||||||||||
Due after five through ten years | 48,675 | 50,889 | 85,997 | 87,903 | ||||||||||||||||||||
Due after ten years | 155,679 | 164,851 | 93,748 | 96,901 | ||||||||||||||||||||
217,046 | 228,733 | 204,443 | 210,063 | |||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 310,460 | 319,104 | 426,645 | 437,660 | ||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total Investment Securities | $ | 529,212 | $ | 549,543 | $ | 631,088 | $ | 647,723 | ||||||||||||||||
Securities with a carrying value of approximately $449,408,000, $373,533,000 and $345,866,000 were pledged at December 31, 2014, 2013 and 2012, respectively, to secure certain deposits and securities sold under repurchase agreements, and for other purposes as permitted or required by law. | ||||||||||||||||||||||||
Gross gains of $3,581,000, $487,000 and $2,389,000 were realized on sales of available for sale securities in 2014, 2013 and 2012, respectively. There were no losses from the sale of available for sale securities in 2014, 2013 or 2012, respectively. |
Loans_and_Allowance
Loans and Allowance | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||
Loans and Allowance | LOANS AND ALLOWANCE | |||||||||||||||||||||||||||||
The Corporation's primary lending focus is small business and middle market commercial, commercial real estate, residential real estate and consumer, which results in portfolio diversification. The following tables show the composition of the loan portfolio, the allowance for loan losses and certain credit quality elements, all excluding loans held for sale. Loans held for sale at December 31, 2014 and 2013, were $7,235,000 and $5,331,000, respectively. | ||||||||||||||||||||||||||||||
The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the years indicated: | ||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 896,688 | $ | 761,705 | ||||||||||||||||||||||||||
Agricultural production financing and other loans to farmers | 104,927 | 114,348 | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 207,221 | 177,082 | ||||||||||||||||||||||||||||
Commercial and farmland | 1,672,661 | 1,611,809 | ||||||||||||||||||||||||||||
Residential | 647,315 | 616,385 | ||||||||||||||||||||||||||||
Home equity | 286,529 | 255,223 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 73,400 | 69,783 | ||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,106 | 1,545 | ||||||||||||||||||||||||||||
Other loans | 35,018 | 24,529 | ||||||||||||||||||||||||||||
Loans | 3,924,865 | 3,632,409 | ||||||||||||||||||||||||||||
Allowance for loan losses | (63,964 | ) | (67,870 | ) | ||||||||||||||||||||||||||
Net Loans | $ | 3,860,901 | $ | 3,564,539 | ||||||||||||||||||||||||||
Allowance, Credit Quality and Loan Portfolio | ||||||||||||||||||||||||||||||
The Corporation maintains an allowance for loan losses to cover probable credit losses identified during its loan review process. Management believes that the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio at December 31, 2014. 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. 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 allowance is increased by the provision for loan losses and decreased by charge offs less recoveries. 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 uncollectible. The allowance for loan losses is maintained through the provision for loan losses, which is a charge against earnings. The amount provided for loan losses in a given period may be greater than or less than 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 independent loan reviews. The 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 the current environment and economic conditions on the portfolio. | ||||||||||||||||||||||||||||||
In conformance with ASC 805 and ASC 820, loans purchased after December 31, 2008 are recorded at the acquisition date fair value. Such loans are only included in the allowance to the extent a specific impairment is identified that exceeds the fair value adjustment on an impaired loan or the historical loss and environmental factor analysis indicates losses inherent in a purchased portfolio exceeds the fair value adjustment on the portion of the purchased portfolio not deemed impaired. | ||||||||||||||||||||||||||||||
The allowance consists of specific impairment reserves as required by ASC 310-10-35, a component for historical losses in accordance with ASC 450 and the consideration of current environmental factors in accordance with ASC 450. 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. | ||||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||||
At December 31, 2014, the allowance for loan losses was $63,964,000, a decrease of $3,906,000 from the December 31, 2013 balance of $67,870,000. Specific reserves on impaired loans increased $1,186,000 to $2,769,000, from $1,583,000 at December 31, 2013. Net charge offs for the twelve months ended December 31, 2014, were $6,466,000, a decrease of $1,678,000 from the same period in 2013. The provision for loan losses for the twelve months ended December 31, 2014 was $2,560,000, a decrease of $4,088,000 for the same period in in 2013. The determination of the provision for loan losses in any period is based on management’s continuing review and evaluation of the loan portfolio, and its judgment as to the impact of current economic conditions on the portfolio. | ||||||||||||||||||||||||||||||
The following table summarizes changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 27,176 | $ | 23,102 | $ | 2,515 | $ | 15,077 | $ | 67,870 | ||||||||||||||||||||
Provision for losses | 3,459 | (464 | ) | 423 | (839 | ) | $ | (19 | ) | 2,560 | ||||||||||||||||||||
Recoveries on loans | 5,435 | 3,297 | 377 | 1,783 | 24 | 10,916 | ||||||||||||||||||||||||
Loans charged off | (7,246 | ) | (6,608 | ) | (657 | ) | (2,869 | ) | (2 | ) | (17,382 | ) | ||||||||||||||||||
Balances, December 31, 2014 | $ | 28,824 | $ | 19,327 | $ | 2,658 | $ | 13,152 | $ | 3 | $ | 63,964 | ||||||||||||||||||
Twelve Months Ended December 31, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Provision for losses | 2,794 | 340 | (11 | ) | 3,514 | $ | 11 | 6,648 | ||||||||||||||||||||||
Recoveries on loans | 4,586 | 3,552 | 556 | 1,292 | 4 | 9,990 | ||||||||||||||||||||||||
Loans charged off | (6,117 | ) | (7,493 | ) | (623 | ) | (3,886 | ) | (15 | ) | (18,134 | ) | ||||||||||||||||||
Balances, December 31, 2013 | $ | 27,176 | $ | 23,102 | $ | 2,515 | $ | 15,077 | $ | 67,870 | ||||||||||||||||||||
Twelve Months Ended December 31, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 17,731 | $ | 37,919 | $ | 2,902 | $ | 12,343 | $ | 3 | $ | 70,898 | ||||||||||||||||||
Provision for losses | 14,749 | (2,546 | ) | 126 | 6,176 | 29 | 18,534 | |||||||||||||||||||||||
Recoveries on loans | 1,744 | 3,652 | 695 | 1,113 | 2 | 7,206 | ||||||||||||||||||||||||
Loans charged off | (8,311 | ) | (12,322 | ) | (1,130 | ) | (5,475 | ) | (34 | ) | (27,272 | ) | ||||||||||||||||||
Balances, December 31, 2012 | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
The following tables show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated: | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,455 | $ | 470 | $ | 194 | $ | 2,119 | ||||||||||||||||||||||
Collectively evaluated for impairment | 27,369 | 18,207 | $ | 2,658 | 12,958 | $ | 3 | 61,195 | ||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 650 | 650 | ||||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 28,824 | $ | 19,327 | $ | 2,658 | $ | 13,152 | $ | 3 | $ | 63,964 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 16,108 | $ | 23,963 | $ | 4,022 | $ | 44,093 | ||||||||||||||||||||||
Collectively evaluated for impairment | 1,011,122 | 1,796,797 | $ | 73,400 | 925,282 | $ | 1,106 | 3,807,707 | ||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 9,403 | 59,122 | 4,540 | 73,065 | ||||||||||||||||||||||||||
Loans | $ | 1,036,633 | $ | 1,879,882 | $ | 73,400 | $ | 933,844 | $ | 1,106 | $ | 3,924,865 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 585 | $ | 763 | $ | 6 | $ | 1,354 | ||||||||||||||||||||||
Collectively evaluated for impairment | 26,493 | 22,208 | $ | 2,515 | 15,071 | 66,287 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 98 | 131 | 229 | |||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 27,176 | $ | 23,102 | $ | 2,515 | $ | 15,077 | $ | 67,870 | ||||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,240 | $ | 29,007 | $ | 2,820 | $ | 42,067 | ||||||||||||||||||||||
Collectively evaluated for impairment | 882,794 | 1,690,285 | $ | 69,783 | 867,094 | $ | 1,545 | 3,511,501 | ||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 7,548 | 69,599 | 1,694 | 78,841 | ||||||||||||||||||||||||||
Loans | $ | 900,582 | $ | 1,788,891 | $ | 69,783 | $ | 871,608 | $ | 1,545 | $ | 3,632,409 | ||||||||||||||||||
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 typically 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. | ||||||||||||||||||||||||||||||
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. Uncollected 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 for the years indicated: | ||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 7,048 | $ | 9,283 | ||||||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 5,800 | 30 | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 1,439 | 4,978 | ||||||||||||||||||||||||||||
Commercial and farmland | 19,350 | 28,095 | ||||||||||||||||||||||||||||
Residential | 12,933 | 12,068 | ||||||||||||||||||||||||||||
Home equity | 1,988 | 1,667 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 231 | 117 | ||||||||||||||||||||||||||||
Other loans | 164 | |||||||||||||||||||||||||||||
Total | $ | 48,789 | $ | 56,402 | ||||||||||||||||||||||||||
Commercial impaired loans include non-accrual loans, loans accounted for under ASC 310-30, as well as substandard, doubtful and loss grade loans that were still accruing but deemed impaired according to the guidance set forth in ASC 310. Also included in impaired loans are accruing loans that are contractually past due 90 days or more and troubled debt restructurings. | ||||||||||||||||||||||||||||||
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 years indicated: | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Balance | Investment | Allowance | ||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 35,514 | $ | 18,029 | $ | 18,711 | $ | 362 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 26 | 22 | 26 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 12,956 | 9,318 | 9,837 | 427 | ||||||||||||||||||||||||||
Commercial and farmland | 95,856 | 68,187 | 70,844 | 3,389 | ||||||||||||||||||||||||||
Residential | 10,591 | 6,839 | 6,987 | 119 | ||||||||||||||||||||||||||
Home equity | 3,590 | 398 | 402 | |||||||||||||||||||||||||||
Other loans | 30 | |||||||||||||||||||||||||||||
Total | $ | 158,563 | $ | 102,793 | $ | 106,807 | $ | 4,297 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,766 | $ | 1,684 | $ | 1,055 | $ | 1,721 | $ | 40 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 6,777 | 5,777 | 400 | 8,044 | 1 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 7,159 | 4,971 | 1,120 | 4,999 | 24 | |||||||||||||||||||||||||
Residential | 1,001 | 998 | 194 | 1,000 | ||||||||||||||||||||||||||
Total | $ | 16,703 | $ | 13,430 | $ | 2,769 | $ | 15,764 | $ | 65 | ||||||||||||||||||||
Total Impaired Loans | $ | 175,266 | $ | 116,223 | $ | 2,769 | $ | 122,571 | $ | 4,362 | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Balance | Investment | Allowance | ||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 35,066 | $ | 16,371 | $ | 19,209 | $ | 192 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 32 | 30 | 32 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 16,109 | 10,625 | 11,621 | 117 | ||||||||||||||||||||||||||
Commercial and farmland | 128,073 | 83,033 | 84,057 | 1,663 | ||||||||||||||||||||||||||
Residential | 6,746 | 3,910 | 4,236 | 75 | ||||||||||||||||||||||||||
Home equity | 3,299 | 112 | 225 | |||||||||||||||||||||||||||
Other loans | 454 | 172 | 181 | 1 | ||||||||||||||||||||||||||
Total | $ | 189,779 | $ | 114,253 | $ | 119,561 | $ | 2,048 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,390 | $ | 1,216 | $ | 683 | $ | 1,240 | $ | 9 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||
Commercial and farmland | 4,657 | 4,215 | 894 | 4,291 | 9 | |||||||||||||||||||||||||
Residential | 74 | 71 | 6 | 76 | ||||||||||||||||||||||||||
Total | $ | 6,121 | $ | 5,502 | $ | 1,583 | $ | 5,607 | $ | 18 | ||||||||||||||||||||
Total Impaired Loans | $ | 195,900 | $ | 119,755 | $ | 1,583 | $ | 125,168 | $ | 2,066 | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Balance | Investment | Allowance | ||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 28,532 | $ | 11,730 | $ | 15,089 | $ | 124 | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 9,787 | 5,164 | 6,471 | 66 | ||||||||||||||||||||||||||
Commercial and farmland | 58,173 | 43,204 | 46,788 | 1,211 | ||||||||||||||||||||||||||
Residential | 8,820 | 6,215 | 7,129 | 83 | ||||||||||||||||||||||||||
Home equity | 4,199 | 1,006 | 1,022 | 13 | ||||||||||||||||||||||||||
Other loans | 83 | 14 | 18 | 1 | ||||||||||||||||||||||||||
Total | $ | 109,594 | $ | 67,333 | $ | 76,517 | $ | 1,498 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 4,415 | $ | 4,155 | $ | 1,628 | $ | 4,225 | $ | 33 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 1,202 | 1,058 | 105 | 1,175 | ||||||||||||||||||||||||||
Commercial and farmland | 5,579 | 5,182 | 2,460 | 5,239 | 95 | |||||||||||||||||||||||||
Residential | 1,722 | 1,451 | 50 | 1,458 | 75 | |||||||||||||||||||||||||
Total | $ | 12,918 | $ | 11,846 | $ | 4,243 | $ | 12,097 | $ | 203 | ||||||||||||||||||||
Total Impaired Loans | $ | 122,512 | $ | 79,179 | $ | 4,243 | $ | 88,614 | $ | 1,701 | ||||||||||||||||||||
At December 31, 2014, the commercial impaired loan total of $116,223,000 included $17,027,000 in loans acquired from Community. At December 31, 2013, the commercial impaired loan total of $119,755,000 included $69,448,000 in loans acquired from CFS. At December 31, 2012, the commercial impaired loan total of $79,179,000 included $17,334,000 in loans acquired from SCB. | ||||||||||||||||||||||||||||||
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 for the years 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. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Commercial Pass | Commercial Special Mention | Commercial Substandard | Commercial Doubtful | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Non Performing | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 823,732 | $ | 24,455 | $ | 48,226 | $ | 275 | $ | 896,688 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 96,155 | 1,195 | 7,577 | 104,927 | ||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 185,394 | 3,164 | 2,928 | $ | 15,588 | $ | 147 | 207,221 | ||||||||||||||||||||||
Commercial and farmland | 1,552,781 | 29,484 | 90,161 | 235 | 1,672,661 | |||||||||||||||||||||||||
Residential | 149,430 | 6,321 | 10,918 | 470,972 | 9,674 | 647,315 | ||||||||||||||||||||||||
Home equity | 6,368 | 12 | 690 | 277,571 | 1,888 | 286,529 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 73,165 | 235 | 73,400 | |||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 998 | 108 | 1,106 | |||||||||||||||||||||||||||
Other loans | 35,018 | 35,018 | ||||||||||||||||||||||||||||
Loans | $ | 2,849,876 | $ | 64,631 | $ | 160,608 | $ | 275 | $ | 837,296 | $ | 12,179 | $ | 3,924,865 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Commercial Pass | Commercial Special Mention | Commercial Substandard | Commercial Doubtful | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Non Performing | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 708,835 | $ | 11,332 | $ | 41,013 | $ | 525 | $ | 761,705 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 114,318 | 30 | 114,348 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 162,976 | 1,132 | 12,029 | $ | 945 | 177,082 | ||||||||||||||||||||||||
Commercial and farmland | 1,473,714 | 57,676 | 80,184 | 235 | 1,611,809 | |||||||||||||||||||||||||
Residential | 143,657 | 2,232 | 11,494 | 136 | $ | 448,494 | 10,372 | 616,385 | ||||||||||||||||||||||
Home equity | 6,194 | 35 | 1,184 | 246,101 | 1,709 | 255,223 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 69,666 | 117 | 69,783 | |||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,420 | 125 | 1,545 | |||||||||||||||||||||||||||
Other loans | 24,334 | 195 | 24,529 | |||||||||||||||||||||||||||
Loans | $ | 2,635,448 | $ | 72,407 | $ | 146,254 | $ | 661 | $ | 764,261 | $ | 13,378 | $ | 3,632,409 | ||||||||||||||||
The following tables illustrate the past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated: | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
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 | $ | 882,596 | $ | 4,006 | $ | 53 | $ | 2,985 | $ | 7,048 | $ | 14,092 | $ | 896,688 | ||||||||||||||||
Agriculture production financing and other loans to farmers | 98,236 | 891 | 5,800 | 6,691 | 104,927 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 204,683 | 1,017 | 82 | 1,439 | 2,538 | 207,221 | ||||||||||||||||||||||||
Commercial and farmland | 1,642,016 | 9,846 | 778 | 671 | 19,350 | 30,645 | 1,672,661 | |||||||||||||||||||||||
Residential | 626,821 | 4,876 | 1,831 | 854 | 12,933 | 20,494 | 647,315 | |||||||||||||||||||||||
Home equity | 282,828 | 1,213 | 352 | 148 | 1,988 | 3,701 | 286,529 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 72,853 | 258 | 53 | 5 | 231 | 547 | 73,400 | |||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,106 | 1,106 | ||||||||||||||||||||||||||||
Other loans | 35,018 | 35,018 | ||||||||||||||||||||||||||||
Loans | $ | 3,846,157 | $ | 22,107 | $ | 3,149 | $ | 4,663 | $ | 48,789 | $ | 78,708 | $ | 3,924,865 | ||||||||||||||||
December 31, 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 | $ | 749,020 | $ | 2,628 | $ | 774 | $ | 9,283 | $ | 12,685 | $ | 761,705 | ||||||||||||||||||
Agriculture production financing and other loans to farmers | 114,305 | 13 | 30 | 43 | 114,348 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 171,046 | 1,058 | 4,978 | 6,036 | 177,082 | |||||||||||||||||||||||||
Commercial and farmland | 1,573,403 | 3,807 | 5,801 | $ | 703 | 28,095 | 38,406 | 1,611,809 | ||||||||||||||||||||||
Residential | 595,192 | 7,156 | 1,475 | 494 | 12,068 | 21,193 | 616,385 | |||||||||||||||||||||||
Home equity | 251,188 | 1,652 | 563 | 153 | 1,667 | 4,035 | 255,223 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 69,061 | 550 | 55 | 117 | 722 | 69,783 | ||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,545 | 1,545 | ||||||||||||||||||||||||||||
Other loans | 24,365 | 164 | 164 | 24,529 | ||||||||||||||||||||||||||
Loans | $ | 3,549,125 | $ | 16,864 | $ | 8,668 | $ | 1,350 | $ | 56,402 | $ | 83,284 | $ | 3,632,409 | ||||||||||||||||
See the information regarding the analysis of loan loss experience in the “Loan Quality" and "Provision And Allowance For Loan Losses" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. | ||||||||||||||||||||||||||||||
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 its earning assets, specifically troubled loans, the Corporation is working 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 original 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 ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | ||||||||||||||||||||||||||||
Recorded Balance | Recorded Balance | of Loans | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | $ | 259 | $ | 259 | 1 | |||||||||||||||||||||||||
Residential | 632 | 622 | 9 | |||||||||||||||||||||||||||
Home equity | 320 | 350 | 11 | |||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 26 | 26 | 2 | |||||||||||||||||||||||||||
Total | $ | 1,237 | $ | 1,257 | 23 | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | ||||||||||||||||||||||||||||
Recorded Balance | Recorded Balance | of Loans | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 295 | $ | 316 | 5 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 6,506 | 5,492 | 11 | |||||||||||||||||||||||||||
Residential | 809 | 804 | 12 | |||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 143 | 145 | 4 | |||||||||||||||||||||||||||
Total | $ | 7,753 | $ | 6,757 | 32 | |||||||||||||||||||||||||
The following tables show the recorded investment of troubled debt restructurings, by modification type, that occurred during the years indicated: | ||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | $ | 288 | $ | 288 | ||||||||||||||||||||||||||
Residential | 31 | $ | 218 | $ | 360 | 609 | ||||||||||||||||||||||||
Home equity | 100 | 243 | 343 | |||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 23 | 23 | ||||||||||||||||||||||||||||
Total | $ | 319 | $ | 318 | $ | 626 | $ | 1,263 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 207 | $ | 60 | $ | 267 | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,388 | 1,985 | 3,373 | |||||||||||||||||||||||||||
Residential | 167 | $ | 237 | 351 | 755 | |||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 61 | 38 | 25 | 124 | ||||||||||||||||||||||||||
Total | $ | 1,823 | $ | 275 | $ | 2,421 | $ | 4,519 | ||||||||||||||||||||||
Loans secured by residential real estate made up 49 percent of the post-modification balances of the troubled debt restructured loans during the twelve months ending December 31, 2014. The second largest class of troubled debt restructurings during 2014 was home equity real estate loans, which accounted for 28 percent of the total post modification balances. | ||||||||||||||||||||||||||||||
The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2014 and 2013, 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. | ||||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||
Number of Loans | Recorded Balance | |||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Residential | 1 | $ | 70 | |||||||||||||||||||||||||||
Total | 1 | $ | 70 | |||||||||||||||||||||||||||
Twelve Months Ended December 31, 2013 | ||||||||||||||||||||||||||||||
Number of Loans | Recorded Balance | |||||||||||||||||||||||||||||
Commercial and industrial loans | 3 | $ | 173 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 2 | 1,034 | ||||||||||||||||||||||||||||
Total | 5 | $ | 1,207 | |||||||||||||||||||||||||||
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 | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012. The acquired loans detailed in the tables below are included in Note 6. LOANS AND ALLOWANCE, in the Notes to Consolidated Financial Statements included as Item 8 of this Annual Report on Form 10-K. As described in Note 6, loans purchased after December 31, 2008 are recorded at the acquisition date fair value, which could result in a fair value discount or premium. Purchased loans with evidence of credit deterioration since origination and for which it is probable at the date of acquisition that the acquirer will not collect all contractually required principal and interest payments are accounted for under ASC 310-30, Loans Acquired with Deteriorated Credit Quality. The difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable portion of the fair value discount or premium. The accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows, with such difference accreted into earnings over the term of the loans. All other loans not accounted for under ASC 310-30 are accounted for under ASC 310-20. | ||||||||||||||||||||||||||||||||
The following table includes the outstanding balance and carrying amount of all the performing and non-performing acquired loans, which are included in the Corporation's balance sheet at December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||||||
Community | CFS | SCB | Total | CFS | SCB | Total | ||||||||||||||||||||||||||
Outstanding Balance: | ||||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 8,168 | $ | 64,897 | $ | 6,059 | $ | 79,124 | $ | 81,303 | $ | 8,184 | $ | 89,487 | ||||||||||||||||||
Agricultural production financing and other loans to farmers | 1,100 | 893 | 1,993 | 1,161 | 1,161 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Construction | 19,063 | 9,113 | 28,176 | 17,962 | 17,962 | |||||||||||||||||||||||||||
Commercial and farmland | 74,600 | 251,002 | 15,593 | 341,195 | 311,631 | 23,418 | 335,049 | |||||||||||||||||||||||||
Residential | 28,863 | 144,396 | 7,384 | 180,643 | 166,754 | 9,359 | 176,113 | |||||||||||||||||||||||||
Home Equity | 9,881 | 39,244 | 15,758 | 64,883 | 49,042 | 18,236 | 67,278 | |||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 1,314 | 922 | 121 | 2,357 | 2,360 | 269 | 2,629 | |||||||||||||||||||||||||
Other Loans | 86 | 86 | $ | 132 | $ | 407 | $ | 539 | ||||||||||||||||||||||||
Total | $ | 142,989 | $ | 509,660 | $ | 45,808 | $ | 698,457 | $ | 629,184 | $ | 61,034 | $ | 690,218 | ||||||||||||||||||
Carrying Amount | $ | 134,198 | $ | 484,949 | $ | 39,324 | $ | 658,471 | $ | 585,913 | $ | 50,269 | $ | 636,182 | ||||||||||||||||||
Allowance | 650 | 650 | 229 | 229 | ||||||||||||||||||||||||||||
Carrying Amount Net of Allowance | $ | 134,198 | $ | 484,299 | $ | 39,324 | $ | 657,821 | $ | 585,913 | $ | 50,040 | $ | 635,953 | ||||||||||||||||||
The balance of the allowance for loan losses and the corresponding provision expense for loans acquired and accounted for under ASC310-30 was $650,000 and $229,000 at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
As customer cash flow expectations improve, nonaccretable yield can be reclassified to accretable yield. The accretable yield, or income expected to be collected, and reclassifications from nonaccretable yield, are identified in the table below. | ||||||||||||||||||||||||||||||||
Twelve months ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Community | CFS | SCB | Total | CFS | SCB | Total | SCB | |||||||||||||||||||||||||
Beginning balance | $ | 13,435 | $ | 5,864 | $ | 19,299 | $ | 5,142 | $ | 5,142 | $ | — | ||||||||||||||||||||
Additions | $ | 5,687 | 5,687 | $ | 13,599 | 13,599 | ||||||||||||||||||||||||||
Accretion | (394 | ) | (6,431 | ) | (2,058 | ) | (8,883 | ) | (164 | ) | (2,071 | ) | (2,235 | ) | 9,774 | |||||||||||||||||
Reclassification from nonaccretable | 119 | 4,501 | 799 | 5,419 | 2,888 | 2,888 | (4,632 | ) | ||||||||||||||||||||||||
Disposals | (1,594 | ) | (492 | ) | (2,086 | ) | (95 | ) | (95 | ) | — | |||||||||||||||||||||
Ending balance | $ | 5,412 | $ | 9,911 | $ | 4,113 | $ | 19,436 | $ | 13,435 | $ | 5,864 | $ | 19,299 | $ | 5,142 | ||||||||||||||||
The following table presents loans acquired during the periods ending December 31, 2014 and 2013, for which it was probable at acquisition that all contractually required payments would not be collected: | ||||||||||||||||||||||||||||||||
Community - 2014 | CFS - 2013 | |||||||||||||||||||||||||||||||
Contractually required payments receivable at acquisition date | $ | 26,032 | $ | 109,839 | ||||||||||||||||||||||||||||
Nonaccretable difference | 3,498 | 22,679 | ||||||||||||||||||||||||||||||
Expected cash flows at acquisition date | 22,534 | 87,160 | ||||||||||||||||||||||||||||||
Accretable difference | 2,234 | 3,502 | ||||||||||||||||||||||||||||||
Basis in loans at acquisition date | $ | 20,300 | $ | 83,658 | ||||||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Premises and Equipment | PREMISES AND EQUIPMENT | |||||||
The following table summarizes the Corporation's premises and equipment as of December 31, 2014 and 2013: | ||||||||
2014 | 2013 | |||||||
Cost at December 31: | ||||||||
Land | $ | 19,373 | $ | 17,992 | ||||
Buildings and Leasehold Improvements | 99,451 | 92,693 | ||||||
Equipment | 56,606 | 54,274 | ||||||
Total Cost | 175,430 | 164,959 | ||||||
Accumulated Depreciation and Amortization | (97,739 | ) | (90,505 | ) | ||||
Net | $ | 77,691 | $ | 74,454 | ||||
The Corporation is committed under various non-cancelable lease contracts for certain subsidiary office facilities and equipment. Total lease expense for 2014, 2013 and 2012 was $3,258,000, $2,608,000 and $2,812,000, respectively. The future minimum rental commitments required under the operating leases in effect at December 31, 2014, expiring at various dates through the year 2028 are as follows for the years ending December 31: | ||||||||
Future Minimum Rental Commitments | ||||||||
2015 | $ | 2,778 | ||||||
2016 | 2,207 | |||||||
2017 | 1,514 | |||||||
2018 | 844 | |||||||
2019 | 537 | |||||||
After 2019 | 2,724 | |||||||
Total Future Minimum Obligations | $ | 10,604 | ||||||
Goodwill
Goodwill | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill Disclosure [Abstract] | ||||||||
Goodwill | GOODWILL | |||||||
On November 7, 2014, the Community acquisition resulted in goodwill of $13,776,000. Additionally, on November 12, 2013, the CFS acquisition resulted in goodwill of $47,573,000. | ||||||||
No impairment loss was recorded in 2014 or 2013. The Corporation tested goodwill for impairment during 2014 and 2013. In both valuations, the fair value exceeded the Corporation’s carrying value; therefore, it was concluded goodwill is not impaired. For additional details related to impairment testing, see the “GOODWILL” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. | ||||||||
2014 | 2013 | |||||||
Balance, January 1 | $ | 188,948 | $ | 141,375 | ||||
Goodwill acquired | 13,776 | 47,573 | ||||||
Balance, December 31 | $ | 202,724 | $ | 188,948 | ||||
Core_Deposit_and_Other_Intangi
Core Deposit and Other Intangibles | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||
Core Deposit and Other Intangibles | CORE DEPOSIT AND OTHER INTANGIBLES | |||||||
On November 7, 2014, the Community acquisition resulted in a core deposit intangible of approximately $4,658,000. Additionally, on November 12, 2013, the CFS acquisition resulted in a core deposit intangible of approximately $7,313,000. | ||||||||
The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below. | ||||||||
2014 | 2013 | |||||||
Gross carrying amount | $ | 53,702 | $ | 46,389 | ||||
Core deposit intangible and other intangibles acquired | 4,658 | 7,313 | ||||||
Accumulated amortization | (42,329 | ) | (39,884 | ) | ||||
Core Deposit and Other Intangibles | $ | 16,031 | $ | 13,818 | ||||
Amortization expense for the years ended December 31, 2014, 2013 and 2012, was $2,445,000, $1,649,000 and $1,927,000, respectively. | ||||||||
Estimated future amortization expense is summarized as follows: | ||||||||
Amortization Expense | ||||||||
2015 | $ | 2,884 | ||||||
2016 | 2,817 | |||||||
2017 | 2,723 | |||||||
2018 | 1,542 | |||||||
2019 | 1,293 | |||||||
After 2019 | 4,772 | |||||||
Total Future Minimum Obligations | $ | 16,031 | ||||||
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Banking and Thrift [Abstract] | ||||||||
Deposits | DEPOSITS | |||||||
The composition of the deposit portfolio is included in the table below for the years indicated: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Demand deposits | $ | 2,146,492 | $ | 2,018,650 | ||||
Savings deposits | 1,376,707 | 1,257,994 | ||||||
Certificates and other time deposits of $100,000 or more | 260,685 | 272,660 | ||||||
Other certificates and time deposits | 523,010 | 595,110 | ||||||
Brokered deposits | 333,800 | 87,054 | ||||||
Total deposits | $ | 4,640,694 | $ | 4,231,468 | ||||
At December 31, 2014, the contractual maturities of time deposits are summarized as follows: | ||||||||
Certificates and Other Time Deposits | ||||||||
2015 | $ | 469,352 | ||||||
2016 | 256,921 | |||||||
2017 | 144,348 | |||||||
2018 | 87,234 | |||||||
2019 | 52,792 | |||||||
After 2019 | 106,848 | |||||||
$ | 1,117,495 | |||||||
Borrowings
Borrowings | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Borrowings | BORROWINGS | |||||||||||
The following table summarizes the Corporation's borrowings as of December 31, 2014 and 2013: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Federal funds purchased | $ | 15,381 | $ | 125,645 | ||||||||
Securities sold under repurchase agreements | 124,539 | 148,672 | ||||||||||
Federal Home Loan Bank advances | 145,264 | 122,140 | ||||||||||
Subordinated debentures and term loans | 126,810 | 126,807 | ||||||||||
Total Borrowings | $ | 411,994 | $ | 523,264 | ||||||||
Securities sold under repurchase agreements consist of obligations of the Bank to other parties. The obligations are secured by U.S. Treasury and U.S. Government-Sponsored Enterprise obligations, certain municipal securities and mortgage loans. The maximum amount of outstanding agreements at any month-end during 2014 and 2013 totaled $155,941,000 and $161,814,000, respectively, and the average of such agreements totaled $130,910,000 and $140,126,000 during 2014 and 2013, respectively. | ||||||||||||
Maturities of securities sold under repurchase agreements; Federal Home Loan Bank Advances, subordinated debentures and term loans as of December 31, 2014, are as follows: | ||||||||||||
Maturities in Years Ending December 31: | Securities Sold | Federal Home | Subordinated | |||||||||
Under Repurchase Agreements | Loan Bank | Debentures and | ||||||||||
Advances | Term Loans | |||||||||||
2015 | $ | 124,539 | $ | 30,780 | $ | 108 | ||||||
2016 | 41,225 | |||||||||||
2017 | 15,018 | |||||||||||
2018 | 25,637 | |||||||||||
2019 | 12,503 | |||||||||||
After 2019 | 20,101 | 126,702 | ||||||||||
$ | 124,539 | $ | 145,264 | $ | 126,810 | |||||||
The terms of a security agreement with the FHLB require the Corporation to pledge, as collateral for advances, qualifying first mortgage loans, investment securities and multi-family loans in an amount equal to at least 146 percent of these advances depending on the type of collateral pledged. Advances, with interest rates from 0.43 to 6.81 percent, are subject to restrictions or penalties in the event of prepayment. The total available remaining borrowing capacity from the FHLB at December 31, 2014, was $399,188,000. | ||||||||||||
Subordinated Debentures and Term Loans. As of December 31, 2014, subordinated debentures and term loans totaled $126,810,000. | ||||||||||||
• | First Merchants Capital Trust II. The subordinated debenture, entered into on July 2, 2007, for $56,702,000 will mature on September 15, 2037. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. Interest was fixed at 6.495 percent for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus 1.56 percent, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2014 was 1.8 percent. The Corporation holds all of the outstanding common securities of First Merchants Capital Trust II. | |||||||||||
• | On November 1, 2013, the Corporation completed the private issuance and sale to four institutional investors of an aggregate of $70 million of debt comprised of (a) 5.00 percent Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million (the "Senior Debt") and (b) 6.75 percent Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of $65 million (the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (10) years and will become floating thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2014, the Corporation was in compliance with these covenants. The net proceeds of the placement were used to pay off the Corporation's $55 million credit facility with Bank of America, N.A. which was scheduled to mature on February 15, 2015. | |||||||||||
Line of Credit. As of December 31, 2014, there was no outstanding balance on the line of credit. | ||||||||||||
• | U.S. Bank, N.A. On April 11, 2014, the Corporation entered into a line of credit agreement with U.S. Bank, N.A. with a maximum borrowing capacity of $20 million. As of December 31, 2014, there was no outstanding balance on the line of credit. Interest is payable quarterly based on one-month LIBOR plus 2.00 percent. The line of credit has a quarterly facility fee of 0.25 percent on the unused balance. The maturity date for the line of credit is April 10, 2015. The line of credit agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2104, the Corporation was in compliance with these covenants. | |||||||||||
Subordinated Debentures and Term Loans. As of December 31, 2013, subordinated debentures and term loans totaled $126,807,000. | ||||||||||||
• | First Merchants Capital Trust II. The subordinated debenture, entered into on July 2, 2007, for $56,702,000 will mature on September 15, 2037. The Corporation could not redeem the debenture prior to September 15, 2012, and redemption is subject to the prior approval of the Board of Governors of the Federal Reserve System, as required by law or regulation. Interest was fixed at 6.495 percent for the period from the date of issuance through September 15, 2012; interest is now an annual floating rate equal to the three-month LIBOR plus 1.56 percent, reset quarterly. Interest is payable in March, June, September and December of each year. The interest rate at December 31, 2013 was 1.7 percent. The Corporation holds all of the outstanding common securities of First Merchants Capital Trust II. | |||||||||||
• | On November 1, 2013, the Corporation completed the private issuance and sale to four institutional investors of an aggregate of $70 million of debt comprised of (a) 5.00 percent Fixed-to-Floating Rate Senior Notes due 2028 in the aggregate principal amount of $5 million (the "Senior Debt") and (b) 6.75 percent Fixed-to-Floating Rate Subordinated Notes due 2028 in the aggregate principal amount of $65 million (the "Subordinated Debt"). The interest rate on the Senior Debt and Subordinated Debt remains fixed for the first ten (10) years and will become floating thereafter. The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants. As of December 31, 2013, the Corporation was in compliance with these covenants. The net proceeds of the placement were used to pay off the Corporation's $55 million credit facility with Bank of America, N.A. which was scheduled to mature on February 15, 2015. | |||||||||||
• | Bank of America, N.A. The Corporation had a $55 million credit facility with Bank of America, N.A. comprised of (a) a term loan in the principal amount of $5 million (the “Term Loan”) and (b) a subordinated debenture in the principal amount of $50 million (the “Subordinated Debt”). Pursuant to the terms of the underlying Loan Agreement (the “Loan Agreement”), the Term Loan and the Subordinated Debt would have matured on February 15, 2015. The Term Loan was secured by a pledge of all of the issued and outstanding shares of the Bank. On November 1, 2013, the Corporation used a portion of the proceeds from the $70 million subordinated debt placement to pay-off the Bank of America $55 million credit facility. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | |||||||||||||||||||||||
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. | ||||||||||||||||||||||||
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 December 31, 2014 and December 31, 2013. | ||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | |||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 137 | Other Assets | $ | 1,162 | Other Liabilities | $ | 2,650 | Other Liabilities | $ | 1,021 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 3,730 | Other Assets | $ | 2,847 | Other Liabilities | $ | 3,887 | Other Liabilities | $ | 2,932 | ||||||||||||
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 this objective, 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 December 31, 2014 and 2013, 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. | ||||||||||||||||||||||||
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 2014, $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 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 years ended December 31, 2014 and 2013, 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 $1,341,000 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 December 31, 2014, the notional amount of customer-facing swaps was approximately $155,891,000. This amount is offset with third party counterparties, as described above. | ||||||||||||||||||||||||
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 the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Derivatives Not | Location of Gain | Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||||||
Designated as Hedging | (Loss) Recognized in | Recognized in Income on | Recognized in Income on | Recognized in Income on | ||||||||||||||||||||
Instruments under | Income on Derivative | Derivative for the Year Ended December 31, 2014 | Derivative for the Year Ended December 31, 2013 | Derivative for the Year Ended December 31, 2012 | ||||||||||||||||||||
FASB ASC 815-10 | ||||||||||||||||||||||||
Interest rate contracts | Other income | $ | (73 | ) | $ | 247 | $ | (79 | ) | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | Amount of Loss Reclassified from Other Comprehensive Income into Income | |||||||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||||||||
For the Year Ended | For the Year Ended | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Interest rate products | $ | (3,996 | ) | $ | 2,374 | Interest expense | $ | (1,411 | ) | $ | (935 | ) | $ | (217 | ) | |||||||||
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-market values with policy limitations, credit ratings and collateral pledging. | ||||||||||||||||||||||||
Credit-Risk-Related Contingent Features | ||||||||||||||||||||||||
The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well/adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. Additionally, 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, then the Corporation could also be declared in default on its derivative obligations. As of December 31, 2014, the termination value of derivatives in a net liability position related to these agreements was $6,785,000. As of December 31, 2014, the Corporation has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $7,411,000. If the Corporation had breached any of these provisions at December 31, 2014, it could have been required to settle its obligations under the agreements at their termination value. |
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Values of Financial Instruments | FAIR VALUES OF FINANCIAL INSTRUMENTS | |||||||||||||||
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 | ||||||||||||||||
Assets and liabilities are considered to be measured at fair value on a recurring basis if fair value is measured regularly (i.e., daily, weekly, monthly or quarterly). Recurring valuation occurs at a minimum on the measurement date. Assets and liabilities are considered to be measured at fair value on a nonrecurring basis if the fair value measurement of the instrument does not necessarily result in a change in the amount recorded on the balance sheet. Generally, nonrecurring valuation is the result of the application of other accounting pronouncements which require assets or liabilities to be assessed for impairment or recorded at the lower of cost or fair value. The fair value of assets or liabilities transferred in or out of Level 3 is measured on the transfer date, with any additional changes in fair value subsequent to the transfer considered to be realized or unrealized gains or losses. | ||||||||||||||||
Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheet, as well as the general classification of such instruments pursuant to the valuation hierarchy. | ||||||||||||||||
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, government-sponsored 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 and include state and municipal, corporate obligations and equity securities. Level 3 fair value on state and municipal, corporate obligations 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 (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. | ||||||||||||||||
Corporate Obligations | ||||||||||||||||
In 2013, the Corporation’s corporate obligations consisted primarily of pooled trust preferred securities. The issuers of these securities were primarily banks, but some of the pools did include a limited number of insurance companies. The Corporation used an other-than-temporary ("OTTI") evaluation process to compare the present value of expected cash flows to determine whether an adverse change in cash flows had occurred. The OTTI process considered the structure and term of the collateralized debt obligation ("CDO") and the financial condition of the underlying issuers. Specifically, the process detailed 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 estimated expected cash flows were 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. In 2014, the Corporation sold all but one of its trust preferred securities, which resulted in gains of $1.9 million. These securities had previous OTTI of $9.4 million. The one remaining trust preferred security has no remaining book value as a result of OTTI of approximately $500,000 taken in 2009. | ||||||||||||||||
Interest Rate Derivative Agreements | ||||||||||||||||
See information regarding the Corporation’s interest rate derivative products in Note 13. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, in the Notes to Consolidated Financial Statements included as Item 8 of this Annual Report on Form 10-K. | ||||||||||||||||
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013. | ||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2014 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available for sale securities: | ||||||||||||||||
U.S. Government-sponsored agency securities | $ | 109 | $ | 109 | ||||||||||||
State and municipal | 228,593 | 221,982 | $ | 6,611 | ||||||||||||
U.S. Government-sponsored mortgage-backed securities | 319,104 | 319,104 | ||||||||||||||
Corporate obligations | 31 | 31 | ||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||
Interest rate swap asset | 3,730 | 3,730 | ||||||||||||||
Interest rate cap | 137 | 137 | ||||||||||||||
Interest rate swap liability | 6,537 | 6,537 | ||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2013 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available for sale securities: | ||||||||||||||||
U.S. Treasury | $ | 15,973 | $ | 15,973 | ||||||||||||
U.S. Government-sponsored agency securities | 3,545 | 3,545 | ||||||||||||||
State and municipal | 230,987 | 223,752 | $ | 7,235 | ||||||||||||
U.S. Government-sponsored mortgage-backed securities | 281,252 | 281,252 | ||||||||||||||
Corporate obligations | 2,738 | 2,738 | ||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||
Interest rate swap asset | 3,619 | 3,619 | ||||||||||||||
Interest rate cap | 390 | 390 | ||||||||||||||
Interest rate swap liability | 3,953 | 3,953 | ||||||||||||||
LEVEL 3 RECONCILIATION | ||||||||||||||||
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2014 and 2013. | ||||||||||||||||
Available for Sale Securities | ||||||||||||||||
For The Year Ended | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Beginning Balance | $ | 9,977 | $ | 18,328 | ||||||||||||
Included in other comprehensive income | 3,656 | 1,330 | ||||||||||||||
Purchases, issuances, and settlements | 7,590 | |||||||||||||||
Transfers in/(out) of Level 3 | (16,434 | ) | ||||||||||||||
Principal payments | (6,987 | ) | (837 | ) | ||||||||||||
Ending balance | $ | 6,646 | $ | 9,977 | ||||||||||||
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 December 31, 2014 or 2013. | ||||||||||||||||
TRANSFERS BETWEEN LEVELS | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | Reason for Transfer | ||||||||||||
Transfers to/(from) Level: | ||||||||||||||||
Available for sale securities | $ | (350 | ) | $ | 350 | Selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets. | ||||||||||
Available for sale securities transferred to held to maturity | $ | (16,784 | ) | Selected state and municipal securities were transferred from available for sale to held to maturity. These securities are valued at amortized cost and are no longer classified within the fair value hierarchy. | ||||||||||||
In 2013, approximately $350,000 of selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets. Additionally, the Corporation transferred $16,784,000 of selected state and municipal securities from available for sale to held to maturity. These securities are valued at amortized cost and are no longer classified within the fair value hierarchy. All securities transferred to held to maturity were previously classified as Level 3 in the fair value hierarchy. There were no transfers in or out of Level 3 during 2014. | ||||||||||||||||
NONRECURRING MEASUREMENTS | ||||||||||||||||
Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2014 and 2013. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2014 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans (collateral dependent) | $ | 17,134 | $ | 17,134 | ||||||||||||
Other real estate owned | $ | 5,155 | $ | 5,155 | ||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2013 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans (collateral dependent) | $ | 12,117 | $ | 12,117 | ||||||||||||
Other real estate owned | $ | 6,877 | $ | 6,877 | ||||||||||||
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 2014, 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 December 31, 2014 and 2013. | ||||||||||||||||
December 31, 2014 | Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted-Average) | ||||||||||||
State and municipal securities | $ | 6,611 | Discounted cash flow | Maturity Call Date | 1 month to 15 years | |||||||||||
US Muni BQ curve | A- to BBB- | |||||||||||||||
Discount rate | .90% - 5% | |||||||||||||||
Corporate obligations and Equity securities | $ | 35 | Discounted cash flow | Risk free rate | 3 month LIBOR | |||||||||||
plus Premium for illiquidity | plus 200 bps | |||||||||||||||
Impaired loans (collateral dependent) | $ | 17,134 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | 0% - 50% (3%) | |||||||||||
Other real estate owned | $ | 5,155 | Appraisals | Discount to reflect current market conditions | 0% - 20% (7%) | |||||||||||
December 31, 2013 | Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted-Average) | ||||||||||||
State and municipal securities | $ | 7,235 | Discounted cash flow | Maturity Call Date | 1 month to 15 years | |||||||||||
US Muni BQ curve | A- to BBB- | |||||||||||||||
Discount rate | 1% - 5% | |||||||||||||||
Corporate obligations and Equity securities | $ | 2,742 | Discounted cash flow | Risk free rate | 3 month LIBOR | |||||||||||
plus Premium for illiquidity | plus 200 bps | |||||||||||||||
Impaired loans (collateral dependent) | $ | 12,117 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | 0% - 50% (3%) | |||||||||||
Other real estate owned | $ | 6,877 | Appraisals | Discount to reflect current market conditions | 0% - 20% (2%) | |||||||||||
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 how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. | ||||||||||||||||
State and Municipal Securities, Corporate Obligations and Equity Securities | ||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Corporation's state and municipal securities, corporate obligations and 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 December 31, 2014 and 2013. | ||||||||||||||||
2014 | ||||||||||||||||
Carrying | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets at December 31: | ||||||||||||||||
Cash and cash equivalents | $ | 118,616 | $ | 118,616 | ||||||||||||
Interest-bearing time deposits | 47,520 | 47,520 | ||||||||||||||
Investment securities available for sale | 549,543 | $ | 542,897 | $ | 6,646 | |||||||||||
Investment securities held to maturity | 631,088 | 614,457 | 33,266 | |||||||||||||
Loans held for sale | 7,235 | 7,235 | ||||||||||||||
Loans | 3,860,901 | 3,810,912 | ||||||||||||||
FRB and FHLB stock | 41,353 | 41,353 | ||||||||||||||
Interest rate swap asset | 3,867 | 3,867 | ||||||||||||||
Interest receivable | 19,984 | 19,984 | ||||||||||||||
Liabilities at December 31: | ||||||||||||||||
Deposits | $ | 4,640,694 | $ | 3,523,199 | $ | 1,099,610 | ||||||||||
Borrowings: | ||||||||||||||||
Federal funds purchased | 15,381 | 15,381 | ||||||||||||||
Securities sold under repurchase agreements | 124,539 | 124,539 | ||||||||||||||
FHLB Advances | 145,264 | 146,669 | ||||||||||||||
Subordinated debentures and term loans | 126,810 | 92,802 | ||||||||||||||
Interest rate swap liability | 6,537 | 6,537 | ||||||||||||||
Interest payable | 3,201 | 3,201 | ||||||||||||||
2013 | ||||||||||||||||
Carrying | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets at December 31: | ||||||||||||||||
Cash and cash equivalents | $ | 109,434 | $ | 109,434 | ||||||||||||
Interest-bearing time deposits | 55,069 | 55,069 | ||||||||||||||
Investment securities available for sale | 536,201 | $ | 526,224 | $ | 9,977 | |||||||||||
Investment securities held to maturity | 559,378 | 525,998 | 34,849 | |||||||||||||
Loans held for sale | 5,331 | 5,331 | ||||||||||||||
Loans | 3,564,539 | 3,506,615 | ||||||||||||||
FRB and FHLB stock | 38,990 | 38,990 | ||||||||||||||
Interest rate swap asset | 4,009 | 4,009 | ||||||||||||||
Interest receivable | 18,672 | 18,672 | ||||||||||||||
Liabilities at December 31: | ||||||||||||||||
Deposits | $ | 4,231,468 | $ | 3,082,117 | $ | 934,937 | ||||||||||
Borrowings: | ||||||||||||||||
Federal funds purchased | 125,645 | 125,645 | ||||||||||||||
Securities sold under repurchase agreements | 148,672 | 148,852 | ||||||||||||||
FHLB Advances | 122,140 | 122,962 | ||||||||||||||
Subordinated debentures and term loans | 126,807 | 82,607 | ||||||||||||||
Interest rate swap liability | 3,953 | 3,953 | ||||||||||||||
Interest payable | 1,771 | 1,771 | ||||||||||||||
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 cash equivalents: 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 interest rate swaps reflect 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 receivable/payable approximates carrying value. | ||||||||||||||||
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. | ||||||||||||||||
Borrowings: The fair value of Federal Funds purchased approximates the carrying amount. The fair value of all other borrowings is estimated using a discounted cash flow calculation, based on current rates for similar debt. |
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments and Contingent Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES | |||||||
In the normal course of business there are outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Corporation's exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as they do for instruments that are included in the consolidated balance sheets. | ||||||||
Financial instruments, whose contract amount represents credit risk as of December 31, were as follows: | ||||||||
2014 | 2013 | |||||||
Amounts of commitments: | ||||||||
Loan commitments to extend credit | $ | 1,617,552 | $ | 1,216,470 | ||||
Standby letters of credit | $ | 52,655 | $ | 41,508 | ||||
Commitments to extend credit are agreements to lend to a customer, as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation. Collateral held varies, but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. | ||||||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. | ||||||||
The Corporation and subsidiaries are also subject to claims and lawsuits, which arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position of the Corporation. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY |
National banking laws restrict the maximum amount of dividends that a bank may pay in any calendar year. National banks are limited to the bank’s retained net income (as defined) for the current year plus those for the previous two years. The amount at December 31, 2014, available for 2015 dividends from the Corporation’s subsidiaries (both banking and non-banking) was $23,340,000. | |
Total stockholders' equity for all subsidiaries at December 31, 2014, was $818,420,000 of which $795,080,000 was restricted from dividend distribution to the Corporation. | |
The Corporation has a Dividend Reinvestment and Stock Purchase Plan, enabling stockholders to elect to have their cash dividends on all shares automatically reinvested in additional shares of the Corporation’s common stock. In addition, stockholders may elect to make optional cash payments up to an aggregate of $2,500 per quarter for the purchase of additional shares of common stock. The stock is credited to participant accounts at fair market value. Dividends are reinvested on a quarterly basis. | |
Preferred Stock | |
On September 22, 2011, the Corporation entered into a Securities Purchase Agreement (the “Purchase Agreement”) with the Treasury, pursuant to which the Corporation issued 90,782.94 shares of the Corporation’s Senior Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), having a liquidation amount per share equal to $1,000, for a total purchase price of $90,782,940. The Purchase Agreement was entered into, and the Series B Preferred Stock was issued, pursuant to the SBLF program, a $30 billion fund established under the Small Business Jobs Act of 2010, that encourages lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion. | |
On January 3, 2013, the Corporation redeemed 22,695.94 shares of the Series B Preferred Stock held by the Treasury at an aggregate redemption price of $22,695,940 plus accrued but unpaid dividends. Following the redemption, the Treasury held 68,087 shares of the Series B Preferred Stock representing a remaining liquidation amount of approximately $68 million. | |
On July 2, 2013, the Corporation redeemed an additional 34,044 shares of the Series B Preferred Stock held by the Treasury at an aggregate redemption price of $34,044,000 plus accrued but unpaid dividends. Following the redemption, the Treasury held 34,043 shares of the Series B Preferred Stock representing a remaining liquidation amount of approximately $34 million. | |
On November 22, 2013, the Corporation redeemed the final 34,043 shares of the Series B Preferred Stock held by the Treasury at an aggregate redemption price of $34,043,000 plus accrued but unpaid dividends. There are no shares of the Corporation's Series B Preferred Stock currently outstanding. | |
CFS Acquisition | |
On November 12, 2013, the Corporation acquired 100 percent of CFS Bancorp, Inc. ("CFS") in an all stock transaction. Pursuant to the merger agreement, the shareholders of CFS received 0.65 percent of a share of the Corporation's common stock for each share of CFS Bancorp common stock held. The Corporation issued approximately 7.1 million shares of common stock, which was valued at approximately $135.6 million. | |
Community Acquisition | |
On November 7, 2014, the Corporation acquired 100 percent of Community Bancshares, Inc. ("Community"). Pursuant to the merger agreement, each outstanding share of common stock of Community was converted into the right to receive either (a) 4.0926 shares of First Merchants' common stock, plus cash in lieu of fractional shares; or (b) $85.94 in cash, based upon shareholder elections. The Corporation paid $14.2 million in cash and issued approximately 1.6 million shares of common stock, valued at approximately $35.0 million, for a total purchase price of approximately $49.2 million. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | 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 December 31, 2014 and 2013: | ||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
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, 2013 | $ | 1,566 | $ | (1,847 | ) | $ | (501 | ) | $ | (5,628 | ) | $ | (6,410 | ) | ||||||
Other comprehensive income before reclassifications | 14,860 | 1,847 | (2,599 | ) | (7,580 | ) | 6,528 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2,328 | ) | 918 | (338 | ) | (1,748 | ) | |||||||||||||
Period change | 12,532 | 1,847 | (1,681 | ) | (7,918 | ) | 4,780 | |||||||||||||
Balance at December 31, 2014 | $ | 14,098 | $ | — | $ | (2,182 | ) | $ | (13,546 | ) | $ | (1,630 | ) | |||||||
Balance at December 31, 2012 | $ | 17,904 | $ | (3,272 | ) | $ | (2,652 | ) | $ | (17,479 | ) | $ | (5,499 | ) | ||||||
Other comprehensive income before reclassifications | (16,021 | ) | 1,425 | 1,543 | 10,704 | (2,349 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (317 | ) | 608 | 1,147 | 1,438 | |||||||||||||||
Period change | (16,338 | ) | 1,425 | 2,151 | 11,851 | (911 | ) | |||||||||||||
Balance at December 31, 2013 | $ | 1,566 | $ | (1,847 | ) | $ | (501 | ) | $ | (5,628 | ) | $ | (6,410 | ) | ||||||
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 twelve months ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31, | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | 2014 | 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 | $ | 3,581 | $ | 487 | $ | 2,389 | Other income - net realized gains on sales of available for sale securities | |||||||||||||
Related income tax expense | (1,253 | ) | (170 | ) | (835 | ) | Income tax expense | |||||||||||||
$ | 2,328 | $ | 317 | $ | 1,554 | |||||||||||||||
Unrealized gains (losses) on cash flow hedges (2) | ||||||||||||||||||||
Interest rate contracts | $ | (1,411 | ) | $ | (935 | ) | $ | (217 | ) | Interest expense - subordinated debentures and term loans | ||||||||||
Related income tax benefit | 493 | 327 | 76 | Income tax expense | ||||||||||||||||
$ | (918 | ) | $ | (608 | ) | $ | (141 | ) | ||||||||||||
Unrealized gains (losses) on defined benefit plans | ||||||||||||||||||||
Amortization of net loss and prior service costs | $ | 520 | $ | (1,765 | ) | $ | 100 | Other expenses - salaries and employee benefits | ||||||||||||
Related income tax benefit (expense) | (182 | ) | 618 | (35 | ) | Income tax expense | ||||||||||||||
$ | 338 | $ | (1,147 | ) | $ | 65 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 1,748 | $ | (1,438 | ) | 1,478 | ||||||||||||||
(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 5. 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 13. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||
Regulatory Capital | REGULATORY CAPITAL | |||||||||||||||||||||||||||
The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies and are assigned to a capital category. The assigned capital category is largely determined by three ratios that are calculated according to the regulations: total risk adjusted capital, Tier 1 capital, and Tier 1 leverage ratios. The ratios are intended to measure capital relative to assets and credit risk associated with those assets and off-balance sheet exposures of the entity. The capital category assigned to an entity can also be affected by qualitative judgments made by regulatory agencies about the risk inherent in the entity's activities that are not part of the calculated ratios. | ||||||||||||||||||||||||||||
There are five capital categories defined in the regulations, ranging from well capitalized to critically undercapitalized. Classification of a bank in any of the undercapitalized categories can result in actions by regulators that could have a material effect on a bank's operations. | ||||||||||||||||||||||||||||
At December 31, 2014, the management of the Corporation believes that it meets all capital adequacy requirements to which it is subject. The most recent notifications from the regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, a bank must maintain a minimum total capital to risk-weighted assets, Tier I capital to risk-weighted assets and Tier I capital to average assets of 10 percent, 6 percent and 5 percent, respectively. It should be noted that a bank's capital category is determined solely for the purpose of applying the OCC's "prompt corrective action" regulations and that the capital category may not constitute an accurate representation of the Bank's overall financial condition or prospects. | ||||||||||||||||||||||||||||
Actual and required capital amounts and ratios are listed below. | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Required For | Required For | |||||||||||||||||||||||||||
Actual | Adequate Capital | Actual | Adequate Capital | |||||||||||||||||||||||||
December 31, | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Total Capital (to Risk-weighted Assets) | ||||||||||||||||||||||||||||
First Merchants Corporation | $ | 685,507 | 15.34 | % | $ | 357,581 | 8 | % | $ | 599,966 | 14.54 | % | $ | 330,107 | 8 | % | ||||||||||||
First Merchants Bank | 653,169 | 14.64 | 356,884 | 8 | 599,272 | 14.56 | 329,344 | 8 | ||||||||||||||||||||
Tier I Capital (to Risk-weighted Assets) | ||||||||||||||||||||||||||||
First Merchants Corporation | $ | 564,535 | 12.63 | % | $ | 178,791 | 4 | % | $ | 483,186 | 11.71 | % | $ | 165,053 | 4 | % | ||||||||||||
First Merchants Bank | 597,305 | 13.39 | 178,442 | 4 | 547,655 | 13.3 | 164,672 | 4 | ||||||||||||||||||||
Tier I Capital (to Average Assets) | ||||||||||||||||||||||||||||
First Merchants Corporation | $ | 564,535 | 10.15 | % | $ | 222,533 | 4 | % | $ | 483,186 | 10.2 | % | $ | 189,485 | 4 | % | ||||||||||||
First Merchants Bank | 597,305 | 10.56 | 226,339 | 4 | 547,655 | 11.58 | 189,095 | 4 | ||||||||||||||||||||
Loan_Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2014 | |
Banking and Thrift [Abstract] | |
Loan Servicing | LOAN SERVICING |
Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The loans are serviced primarily for the Federal Home Loan Mortgage Corporation and Fannie Mae, and the unpaid balances totaled $254,223,000, $271,871,000 and $167,879,000 at December 31, 2014, 2013 and 2012, respectively. The amount of capitalized servicing assets is considered immaterial. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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 issued to employees and non-employee directors 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. For non-employee directors, the RSA's vest only if the non-employee director remains as an active board member on the vesting date and, therefore, any unvested shares are forfeited. RSAs for employees and non-employee directors retired from the Corporation are either immediately vested at retirement or continue to vest after retirement, depending on the plan under which the shares were granted. Deferred stock units ("DSUs") can be credited to non-employee directors who elect 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 December 31, 2014, the Corporation did not have any 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 years ended December 31, 2014, 2013, and 2012 was $2,177,000, $1,773,000, and $1,492,000, respectively, and has been recognized as a component of salaries and benefits expense in the accompanying CONSOLIDATED STATEMENTS OF INCOME. | ||||||||||||
The estimated fair value of the stock options granted during 2014, 2013, and 2012 was calculated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 2.41 | % | 1.25 | % | 1.36 | % | ||||||
Expected price volatility | 45.05 | % | 45.68 | % | 46.22 | % | ||||||
Dividend yield | 2.73 | % | 2.96 | % | 3.29 | % | ||||||
Forfeiture rate | 5.46 | % | 4.73 | % | 4.77 | % | ||||||
Weighted-average expected life, until exercise | 7.74 | years | 7.27 | years | 7.2 | years | ||||||
The Black-Scholes model incorporates assumptions used 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 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 5.5 percent for the year ended December 31, 2014, based on historical experience. | ||||||||||||
The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense: | ||||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Stock and ESPP Options | ||||||||||||
Pre-tax compensation expense | $ | 237 | $ | 253 | $ | 284 | ||||||
Income tax benefit | (47 | ) | (16 | ) | (23 | ) | ||||||
Stock and ESPP option expense, net of income taxes | $ | 190 | $ | 237 | $ | 261 | ||||||
Restricted Stock Awards | ||||||||||||
Pre-tax compensation expense | $ | 1,940 | $ | 1,520 | $ | 1,208 | ||||||
Income tax benefit | (679 | ) | (531 | ) | (428 | ) | ||||||
Restricted stock awards expense, net of income taxes | $ | 1,261 | $ | 989 | $ | 780 | ||||||
Total Share-Based Compensation: | ||||||||||||
Pre-tax compensation expense | $ | 2,177 | $ | 1,773 | $ | 1,492 | ||||||
Income tax benefit | (726 | ) | (547 | ) | (451 | ) | ||||||
Total share-based compensation expense, net of income taxes | $ | 1,451 | $ | 1,226 | $ | 1,041 | ||||||
As of December 31, 2014, unrecognized compensation expense related to stock options and RSAs totaling $4,000 and $2,618,000, respectively, is expected to be recognized over weighted-average periods of 0.14 years and 1.16 years, respectively. | ||||||||||||
Stock option activity under the Corporation's stock option plans, as of December 31, 2014, and changes during the year ended December 31, 2014, were as follows: | ||||||||||||
Number of | Weighted-Average | Weighted Average | Aggregate | |||||||||
Shares | Exercise Price | Remaining Contractual | Intrinsic Value | |||||||||
Term (in Years) | ||||||||||||
Outstanding at January 1, 2014 | 958,786 | $ | 21.32 | |||||||||
Granted | 13,500 | $ | 21.65 | |||||||||
Exercised | (41,249 | ) | $ | 12.21 | ||||||||
Canceled | (193,106 | ) | $ | 24.42 | ||||||||
Outstanding December 31, 2014 | 737,931 | $ | 20.99 | 3.08 | 2,645,356 | |||||||
Vested and Expected to Vest at December 31, 2014 | 737,931 | $ | 20.99 | 3.08 | 2,645,356 | |||||||
Exercisable at December 31, 2014 | 715,431 | $ | 21.05 | 2.9 | 2,563,636 | |||||||
The weighted-average grant date fair value was $8.13, $5.73 and $3.97 for stock options granted during the years ended December 31, 2014, 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 2014 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 December 31, 2014. 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 years ended December 31, 2014 and 2013 was $392,000 and $143,000, respectively. Cash receipts of stock options exercised during 2014 and 2013 were $504,000 and $115,000, respectively. | ||||||||||||
The following table summarizes information on unvested RSAs outstanding as of December 31, 2014: | ||||||||||||
Number of | Weighted-Average | |||||||||||
Shares | Grant Date Fair Value | |||||||||||
Unvested RSAs at January 1, 2014 | 429,002 | $ | 12.51 | |||||||||
Granted | 98,611 | $ | 20.54 | |||||||||
Forfeited | (9,717 | ) | $ | 15.78 | ||||||||
Vested | (132,446 | ) | $ | 9.16 | ||||||||
Unvested RSAs at December 31, 2014 | 385,450 | $ | 15.65 | |||||||||
The grant date fair value of ESPP options was estimated at the beginning of the October 1, 2014, quarterly offering period of approximately $20,000. The ESPP options vested during the three months ending December 31, 2014, leaving no unrecognized compensation expense related to unvested ESPP options at December 31, 2014. |
Pension_and_Other_Post_Retirem
Pension and Other Post Retirement Benefit Plans | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Pension and Other Post Retirement Benefit Plans | PENSION AND OTHER POST RETIREMENT BENEFIT PLANS | |||||||||||||||
The Corporation’s defined-benefit pension plans cover approximately 25 percent of the Corporation’s employees. In 2005, the Board of Directors of the Corporation approved the curtailment of the accumulation of defined benefits for future services provided by certain participants in the First Merchants Corporation Retirement Plan. No additional pension benefits have been earned by any employees who had not attained both the age of 55 and accrued at least 10 years of vesting service as of March 1, 2005. The benefits are based primarily on years of service and employees’ pay near retirement. Contributions are intended to provide not only for benefits attributed to service-to-date, but also for those expected to be earned in the future. The Corporation also maintains post retirement benefit plans that provide health insurance benefits to retirees. The plans allow retirees to be carried under the Corporation’s health insurance plan, generally from ages 55 to 65. The retirees pay 100 percent of the premiums due for their coverage. The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31, using measurement dates of December 31, 2014 and 2013. | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 62,270 | $ | 69,166 | ||||||||||||
Service cost | 73 | 131 | ||||||||||||||
Interest cost | 3,235 | 2,670 | ||||||||||||||
Actuarial loss (gain) | 12,968 | (5,597 | ) | |||||||||||||
Benefits paid | (5,541 | ) | (4,100 | ) | ||||||||||||
Net transfers in from CFS acquisition | 7,645 | |||||||||||||||
Benefit obligation at end of year | $ | 80,650 | $ | 62,270 | ||||||||||||
Change in Plan Assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 69,871 | $ | 62,865 | ||||||||||||
Actual return on plan assets | 5,232 | 10,610 | ||||||||||||||
Employer contributions | 504 | 496 | ||||||||||||||
Benefits paid | (5,541 | ) | (4,100 | ) | ||||||||||||
CFS acquisition | 7,073 | |||||||||||||||
End of year | 77,139 | 69,871 | ||||||||||||||
Funded status at end of year | $ | (3,511 | ) | $ | 7,601 | |||||||||||
Assets and Liabilities Recognized in the Balance Sheets: | ||||||||||||||||
Deferred tax asset | $ | 8,541 | $ | 4,266 | ||||||||||||
Assets | $ | 1,329 | $ | 12,383 | ||||||||||||
Liabilities | $ | 4,840 | $ | 4,782 | ||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic (Benefit) Cost Consist of: | ||||||||||||||||
Accumulated loss | $ | (15,863 | ) | $ | (7,922 | ) | ||||||||||
Prior service credit | (346 | ) | (28 | ) | ||||||||||||
$ | (16,209 | ) | $ | (7,950 | ) | |||||||||||
The actuarial loss recognized in 2014 was primarily due to two factors. The first factor was a decrease in the discount rate assumption from 4.80% at December 31, 2013 to 4.00% at December 31, 2014. The second factor contributing to the loss was the Corporation's adoption of the Society of Actuaries new mortality tables. | ||||||||||||||||
Citizens Financial Bank participated in the Pentegra Defined Benefit Plan for Financial Institutions (the "Pentegra Plan”), an industry-wide, tax-qualified defined-benefit pension plan. The Pentegra Plan operated as a multi-employer plan for accounting purposes and as a multiple employer plan under ERISA and the Internal Revenue Code. On September 30, 2013, the Board of Citizens Financial Bank approved a resolution to withdraw as a Participating Employer in the Pentegra Plan. Upon completion of the withdrawal from the Pentegra Plan, the assets and liabilities were merged into the First Merchants Corporation Retirement Plan in early 2014. | ||||||||||||||||
The accumulated benefit obligation for all defined benefit plans was $80,650,000 and $62,263,000 at December 31, 2014 and 2013, respectively. | ||||||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets is included in the table below. | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Projected benefit obligation | $ | 4,840 | $ | 4,782 | ||||||||||||
Accumulated benefit obligation | $ | 4,840 | $ | 4,782 | ||||||||||||
Fair value of plan assets | ||||||||||||||||
The following table shows the components of net periodic pension costs: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||
Service cost | $ | 73 | $ | 131 | $ | 161 | ||||||||||
Interest cost | 3,235 | 2,670 | 2,990 | |||||||||||||
Expected return on plan assets | (4,467 | ) | (4,265 | ) | (4,216 | ) | ||||||||||
Amortization of prior service costs | 81 | 25 | 25 | |||||||||||||
Amortization of net loss | 478 | 2,131 | 2,207 | |||||||||||||
Net periodic pension (benefit) cost | $ | (600 | ) | $ | 692 | $ | 1,167 | |||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||
Net periodic pension (benefit) cost | $ | (600 | ) | $ | 692 | $ | 1,167 | |||||||||
Net gain (loss) | (12,203 | ) | 11,942 | (1,242 | ) | |||||||||||
Amortization of loss | 478 | 2,131 | 2,207 | |||||||||||||
Amortization of prior service cost | 81 | 25 | 25 | |||||||||||||
Total recognized in other comprehensive income (loss) | (11,644 | ) | 14,098 | 990 | ||||||||||||
Total recognized in net periodic pension cost and other comprehensive income (loss) | $ | (11,044 | ) | $ | 13,406 | $ | (177 | ) | ||||||||
The estimated net loss and transition obligation for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic pension cost over the next fiscal year are: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||
Amortization of net loss | $ | (1,770 | ) | $ | (533 | ) | $ | (2,158 | ) | |||||||
Amortization of prior service cost | (64 | ) | (25 | ) | (25 | ) | ||||||||||
Total | $ | (1,834 | ) | $ | (558 | ) | $ | (2,183 | ) | |||||||
Significant assumptions include: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | December 31, 2012 | ||||||||||||||
Weighted-average Assumptions Used to Determine Benefit Obligation: | ||||||||||||||||
Discount rate | 4 | % | 4.8 | % | 4 | % | ||||||||||
Rate of compensation increase for accruing active participants | 3 | % | 3 | % | 3 | % | ||||||||||
Weighted-average Assumptions Used to Determine Cost: | ||||||||||||||||
Discount rate | 4.8 | % | 4 | % | 4.5 | % | ||||||||||
Expected return on plan assets | 6 | % | 7 | % | 7 | % | ||||||||||
Rate of compensation increase for accruing active participants | 3 | % | 3 | % | 4 | % | ||||||||||
At December 31, 2014 and 2013, the Corporation based its estimate of the expected long-term rate of return on analysis of the historical returns of the plans and current market information available. The plans’ investment strategies are to provide for preservation of capital with an emphasis on long-term growth without undue exposure to risk. The assets of the plans’ are invested in accordance with the plans’ Investment Policy Statement, subject to strict compliance with Employee Retirement Income Security Act of 1974 ("ERISA") and any other applicable statutes. | ||||||||||||||||
The plans’ risk management practices include quarterly evaluations of investment managers, including reviews of compliance with investment manager guidelines and restrictions; ability to exceed performance objectives; adherence to the investment philosophy and style; and ability to exceed the performance of other investment managers. The evaluations are reviewed by management with appropriate follow-up and actions taken, as deemed necessary. The Investment Policy Statement generally allows investments in cash and cash equivalents, real estate, fixed income debt securities and equity securities, and specifically prohibits investments in derivatives, options, futures, private placements, short selling, non-marketable securities and purchases of non-investment grade bonds. | ||||||||||||||||
At December 31, 2014, the maturities of the plans’ debt securities ranged from 15 days to 9.59 years, with a weighted average maturity of 5.02 years. At December 31, 2013, the maturities of the plans’ debt securities ranged from 2 days to 9.61 years, with a weighted average maturity of 4.63 years. | ||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as of December 31, 2014. The minimum contribution required in 2015 will likely be zero but the Corporation may decide to make a discretionary contribution during the year. | ||||||||||||||||
2015 | $ | 4,761 | ||||||||||||||
2016 | 4,757 | |||||||||||||||
2017 | 4,751 | |||||||||||||||
2018 | 4,783 | |||||||||||||||
2019 | 4,997 | |||||||||||||||
After 2019 | 25,125 | |||||||||||||||
$ | 49,174 | |||||||||||||||
Plan assets are re-balanced quarterly. At December 31, 2014 and 2013, plan assets by category are as follows: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Actual | Target | Actual | Target | |||||||||||||
Cash and cash equivalents | 2.6 | % | 2 | % | 2.7 | % | 2 | % | ||||||||
Equity securities | 58.7 | 60 | 62.2 | 60 | ||||||||||||
Debt securities | 36.5 | 36 | 33.2 | 36 | ||||||||||||
Alternative investments | 2.2 | 2 | 1.9 | 2 | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||
The First Merchants Corporation Retirement and Income Savings Plan (the “Savings Plan”), a Section 401(k) qualified defined contribution plan, was amended on March 1, 2005 to provide enhanced retirement benefits, including employer and matching contributions, for eligible employees of the Corporation and its subsidiaries. The Corporation matches employees’ contributions primarily at the rate of 50 percent for the first 6 percent of base salary contributed by participants. | ||||||||||||||||
Beginning in 2005, employees who have completed 1000 hours of service and are an active employee on the last day of the year receive an additional retirement contribution after year-end. Employees hired after January 1, 2010 do not participate in the additional retirement contribution. Effective January 1, 2013, the additional retirement contribution was fixed at 2 percent. Full vesting occurs after five years of service. The Corporation’s expense for the Savings Plan, including the additional retirement contribution, was $3,396,000, $3,138,000 and $2,914,000 for 2014, 2013 and 2012, respectively. | ||||||||||||||||
The Corporation maintains post retirement benefit plans that provide health insurance benefits to retirees. The plans allow retirees to be carried under the Corporation’s health insurance plan, generally from ages 55 to 65. The retirees pay 100 percent of the premiums due for their coverage. The obligations payable under the plans totaled $1,811,000 and $1,534,000 at December 31, 2014 and 2013, respectively. Post retirement plan expense totaled $97,000, $519,000 and $477,000 for the years ending December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
Pension Plan Assets | ||||||||||||||||
Following is a description of the valuation methodologies used for pension plan assets measured at fair value on a recurring basis, as well as the general classification of pension plan assets pursuant to the valuation hierarchy. | ||||||||||||||||
Where quoted market prices are available in an active market, plan assets are classified within Level 1 of the valuation hierarchy. Level 1 plan assets total $57,413,000 and include cash and cash equivalents, common stocks, mutual funds and corporate bonds and notes. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of plan assets with similar characteristics or discounted cash flows. Level 2 plan assets total $19,726,000 and include governmental agencies, taxable municipals, common collective trust investments (which are classified below as Party-in-Interest investments -- common bond fund and common equity fund) and certificates of deposit. In certain cases where Level 1 or Level 2 inputs are not available, plan assets are classified within Level 3 of the hierarchy. There are no assets classified within Level 3 of the hierarchy at December 31, 2014 and 2013. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other Observable Inputs | Significant | ||||||||||||||
Active Markets for | Unobservable | |||||||||||||||
Identical Assets | Inputs | |||||||||||||||
December 31, 2014 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash & Cash Equivalents | $ | 2,032 | $ | 2,032 | ||||||||||||
Corporate Bonds and Notes | 9,384 | 9,384 | ||||||||||||||
Government Agency and Municipal Bonds and Notes | 8,252 | $ | 8,252 | |||||||||||||
Certificates of Deposit | 1,001 | 1,001 | ||||||||||||||
Party-in-Interest Investments | ||||||||||||||||
Common Stock | 1,376 | 1,376 | ||||||||||||||
Common Bond Fund | 4,615 | 4,615 | ||||||||||||||
Common Equity Fund | 5,858 | 5,858 | ||||||||||||||
Mutual Funds | ||||||||||||||||
Taxable Bond | 4,987 | 4,987 | ||||||||||||||
Large Cap Equity | 21,185 | 21,185 | ||||||||||||||
Mid Cap Equity | 9,434 | 9,434 | ||||||||||||||
Small Cap Equity | 3,872 | 3,872 | ||||||||||||||
International Equity | 3,474 | 3,474 | ||||||||||||||
Specialty Alternative Equity | 1,669 | 1,669 | ||||||||||||||
$ | 77,139 | $ | 57,413 | $ | 19,726 | $ | — | |||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other Observable Inputs | Significant | ||||||||||||||
Active Markets for | Unobservable | |||||||||||||||
Identical Assets | Inputs | |||||||||||||||
December 31, 2013 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash & Cash Equivalents | $ | 1,864 | $ | 1,864 | ||||||||||||
Corporate Bonds and Notes | 6,076 | 6,076 | ||||||||||||||
Government Agency and Municipal Bonds and Notes | 8,263 | $ | 8,263 | |||||||||||||
Certificates of Deposit | 607 | 607 | ||||||||||||||
Party-in-Interest Investments | ||||||||||||||||
Common Stock | 1,375 | 1,375 | ||||||||||||||
Common Bond Fund | 5,318 | 5,318 | ||||||||||||||
Common Equity Fund | 4,507 | 4,507 | ||||||||||||||
Mutual Funds | ||||||||||||||||
Taxable Bond | 3,901 | 3,901 | ||||||||||||||
Large Cap Equity | 20,617 | 20,617 | ||||||||||||||
Mid Cap Equity | 8,721 | 8,721 | ||||||||||||||
Small Cap Equity | 3,584 | 3,584 | ||||||||||||||
International Equity | 3,727 | 3,727 | ||||||||||||||
Specialty Alternative Equity | 1,311 | 1,311 | ||||||||||||||
$ | 69,871 | $ | 51,176 | $ | 18,695 | $ | — | |||||||||
Income_Tax
Income Tax | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Tax | INCOME TAX | |||||||||||
The reconciliation between the statutory and actual income tax expense (benefit) is summarized in the following table for the years indicated: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income Tax Expense for the Year Ended December 31: | ||||||||||||
Currently Payable: | ||||||||||||
Federal | $ | (1,661 | ) | $ | 738 | $ | (23 | ) | ||||
State | ||||||||||||
Deferred: | ||||||||||||
Federal | 22,541 | 13,939 | 15,890 | |||||||||
State | 510 | |||||||||||
Total Income Tax Expense | $ | 21,390 | $ | 14,677 | $ | 15,867 | ||||||
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||||||||||
Federal Statutory Income Tax at 35% | $ | 28,543 | $ | 20,722 | $ | 21,347 | ||||||
Tax-exempt Interest Income | (5,148 | ) | (3,923 | ) | (3,716 | ) | ||||||
Stock Compensation | 36 | 50 | 76 | |||||||||
Earnings on Life Insurance | (1,271 | ) | (905 | ) | (1,187 | ) | ||||||
Tax Credits | (911 | ) | (857 | ) | (73 | ) | ||||||
Other | 141 | (410 | ) | (580 | ) | |||||||
Actual Tax Expense | $ | 21,390 | $ | 14,677 | $ | 15,867 | ||||||
Tax expense applicable to security gains and losses, including unrealized losses relating to other-than-temporary impairment charges, for the years ended December 31, 2014, 2013 and 2012, was $760,000, $157,000 and $759,000, respectively. | ||||||||||||
The Corporation or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With a few exceptions, the Corporation is no longer subject to U.S. federal, state and local or non-U.S. income tax examinations by tax authorities for years before 2011. | ||||||||||||
The tax effects of temporary differences related to deferred taxes shown on the balance sheets were: | ||||||||||||
2014 | 2013 | |||||||||||
Deferred Tax Asset at December 31: | ||||||||||||
Assets: | ||||||||||||
Differences in Accounting for Loan Losses | $ | 26,665 | $ | 28,064 | ||||||||
Differences in Accounting for Loan Fees | 747 | 736 | ||||||||||
Differences in Accounting for Loans and Securities | 9,910 | 13,579 | ||||||||||
Deferred Compensation | 5,234 | 5,479 | ||||||||||
Difference in Accounting for Pensions and Other Employee Benefits | 1,084 | |||||||||||
Federal & State Income Tax Loss Carryforward and Credits | 23,977 | 24,981 | ||||||||||
Net Unrealized Loss on Securities Available for Sale | 151 | |||||||||||
Other | 8,535 | 12,828 | ||||||||||
Total Assets | 76,152 | 85,818 | ||||||||||
Liabilities: | ||||||||||||
Differences in Depreciation Methods | 8,220 | 8,008 | ||||||||||
Difference in Accounting for Pensions and Other Employee Benefits | 1,096 | |||||||||||
State Income Tax | 591 | 354 | ||||||||||
Net Unrealized Gain on Securities Available for Sale | 7,591 | |||||||||||
Gain on FDIC Modified Whole Bank Transaction | 1,694 | 2,147 | ||||||||||
Other | 1,096 | 1,257 | ||||||||||
Total Liabilities | 19,192 | 12,862 | ||||||||||
Net Deferred Tax Asset Before Valuation Allowance | 56,960 | 72,956 | ||||||||||
Valuation allowance: | ||||||||||||
Beginning Balance | (17,171 | ) | (13,859 | ) | ||||||||
Decrease/(Increase) During the Year | (397 | ) | (3,312 | ) | ||||||||
Ending Balance | (17,568 | ) | (17,171 | ) | ||||||||
Net Deferred Tax Asset | $ | 39,392 | $ | 55,785 | ||||||||
The $16,393,000 decrease in the Corporation’s net deferred tax asset was due to a combination of a decrease in deferred tax assets and an increase in deferred tax liabilities. The largest deferred tax asset decreases were associated with accounting for loans, other than temporary impairment on securities, and other real estate owned in the amounts of $3,669,000, $3,261,000 and $1,988,000, respectively. Partially offsetting these deferred tax asset decreases was the $2,180,000 net change in the shift of the accounting for pensions and other employee benefits from a deferred tax liability to a deferred tax asset. Finally, the largest deferred tax liability increase of $7,742,000 resulted from the accounting for unrealized gains on available for sale securities. | ||||||||||||
The Corporation has recorded a valuation allowance of $17,568,000 related to deferred state taxes as it does not anticipate having future state taxable income sufficient to fully utilize the deferred state tax asset. This is primarily due to the Corporation’s current tax structure as discussed in the “INCOME TAXES” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as item 7 of this Annual Report on Form 10-K. | ||||||||||||
As of December 31, 2014, the Corporation had approximately $143,467,000 of state tax loss carryforward available to offset future state taxes. This state loss carryforward has a valuation allowance of approximately $142,358,000. | ||||||||||||
The Corporation has approximately $13,393,000 of additional paid-in capital that is considered restricted resulting from the CFS acquisition. CFS qualified as a bank under provisions of the Internal Revenue Code which permitted it to deduct from taxable income an allowance for bad debts which differed from the provision for losses charged to income. No provision for income taxes had been provided. If in the future this portion of additional paid-in capital is distributed, or the Corporation no longer qualifies as a bank for income tax purposes, income taxes may be imposed at the then applicable tax rates. The unrecorded deferred tax liability at December 31, 2014, would have been approximately $4,688,000. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
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 years indicated: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Weighted-Average Shares | Weighted-Average Shares | Weighted-Average Shares | |||||||||||||||||||||||||||||||
Basic net income per share: | $ | 60,162 | $ | 44,530 | $ | 45,122 | |||||||||||||||||||||||||||
Preferred stock dividends | (2,380 | ) | (4,539 | ) | |||||||||||||||||||||||||||||
Net income available to common stockholders | 60,162 | 36,266,356 | $ | 1.66 | 42,150 | 29,731,420 | $ | 1.42 | 40,583 | 28,632,915 | $ | 1.42 | |||||||||||||||||||||
Effect of dilutive stock options and warrants | 288,253 | 276,960 | 213,769 | ||||||||||||||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 60,162 | 36,554,609 | $ | 1.65 | $ | 42,150 | 30,008,380 | $ | 1.41 | $ | 40,583 | 28,846,684 | $ | 1.41 | ||||||||||||||||||
Options to purchase 543,514, 800,674, and 820,706 shares of common stock with weighted average exercise prices of $20.99, $21.32, and $21.58 at December 31, 2014, 2013 and 2012 respectively, were excluded from the computation of diluted net income per share because the options exercise price was greater than the average market price of the common stock. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | |||||||||||||||||||||||||||||||
The following table sets forth certain quarterly results for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
Interest income | $ | 51,009 | $ | 51,527 | $ | 53,290 | $ | 53,053 | $ | 43,738 | $ | 40,653 | $ | 40,736 | $ | 45,707 | ||||||||||||||||
Interest expense | 5,117 | 5,408 | 5,424 | 5,893 | 4,280 | 4,003 | 3,714 | 4,572 | ||||||||||||||||||||||||
Net interest income | 45,892 | 46,119 | 47,866 | 47,160 | 39,458 | 36,650 | 37,022 | 41,135 | ||||||||||||||||||||||||
Provision for loan losses | 1,600 | 960 | 2,102 | 1,997 | 1,533 | 1,016 | ||||||||||||||||||||||||||
Net interest income after provision for loan losses | 45,892 | 46,119 | 46,266 | 46,200 | 37,356 | 34,653 | 35,489 | 40,119 | ||||||||||||||||||||||||
Non-interest income | 15,186 | 15,933 | 18,294 | 16,254 | 13,877 | 14,059 | 11,800 | 15,073 | ||||||||||||||||||||||||
Non-interest expense | 43,089 | 41,250 | 42,576 | 41,677 | 34,700 | 33,742 | 34,219 | 40,558 | ||||||||||||||||||||||||
Income before income tax expense | 17,989 | 20,802 | 21,984 | 20,777 | 16,533 | 14,970 | 13,070 | 14,634 | ||||||||||||||||||||||||
Income tax expense | 4,369 | 5,642 | 5,862 | 5,517 | 4,668 | 4,155 | 2,667 | 3,187 | ||||||||||||||||||||||||
Net income | 13,620 | 15,160 | 16,122 | 15,260 | 11,865 | 10,815 | 10,403 | 11,447 | ||||||||||||||||||||||||
Preferred stock dividends | (857 | ) | (852 | ) | (430 | ) | (241 | ) | ||||||||||||||||||||||||
Net income available to common stockholders | $ | 13,620 | $ | 15,160 | $ | 16,122 | $ | 15,260 | $ | 11,008 | $ | 9,963 | $ | 9,973 | $ | 11,206 | ||||||||||||||||
Basic EPS | $ | 0.38 | $ | 0.42 | $ | 0.45 | $ | 0.41 | $ | 0.38 | $ | 0.35 | $ | 0.35 | $ | 0.34 | ||||||||||||||||
Diluted EPS | $ | 0.38 | $ | 0.41 | $ | 0.45 | $ | 0.41 | $ | 0.38 | $ | 0.34 | $ | 0.35 | $ | 0.34 | ||||||||||||||||
Average Shares Outstanding: | ||||||||||||||||||||||||||||||||
Basic | 35,956,436 | 36,026,763 | 36,054,867 | 37,018,014 | 28,716,987 | 28,783,407 | 28,806,809 | 32,597,145 | ||||||||||||||||||||||||
Diluted | 36,260,624 | 36,294,149 | 36,328,981 | 37,323,276 | 28,971,238 | 29,023,513 | 29,081,472 | 32,912,605 | ||||||||||||||||||||||||
Condensed_Financial_Informatio
Condensed Financial Information (parent company only) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information (parent company only) | CONDENSED FINANCIAL INFORMATION (parent company only) | |||||||||||
Presented below is condensed financial information as to financial position, results of operations, and cash flows of the Corporation. | ||||||||||||
Condensed Balance Sheets | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Assets | ||||||||||||
Cash | $ | 36,044 | $ | 13,228 | ||||||||
Investment in subsidiaries | 820,123 | 745,818 | ||||||||||
Goodwill | 448 | 448 | ||||||||||
Other assets | 6,281 | 8,695 | ||||||||||
Total assets | $ | 862,896 | $ | 768,189 | ||||||||
Liabilities | ||||||||||||
Borrowings | $ | 126,702 | $ | 126,702 | ||||||||
Other liabilities | 9,367 | 6,564 | ||||||||||
Total liabilities | 136,069 | 133,266 | ||||||||||
Stockholders' equity | 726,827 | 634,923 | ||||||||||
Total liabilities and stockholders' equity | $ | 862,896 | $ | 768,189 | ||||||||
Condensed Statements of Income and Comprehensive Income | ||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||
Income | ||||||||||||
Dividends from subsidiaries | $ | 53,231 | $ | 63,732 | $ | 30,096 | ||||||
Other income | 538 | 45 | 85 | |||||||||
Total income | 53,769 | 63,777 | 30,181 | |||||||||
Expenses | ||||||||||||
Interest expense | 6,616 | 3,531 | 4,655 | |||||||||
Salaries and employee benefits | 3,128 | 3,284 | 3,194 | |||||||||
Net occupancy and equipment expenses | 442 | 258 | 312 | |||||||||
Telephone expenses | 27 | 42 | 30 | |||||||||
Postage and courier expenses | 1 | |||||||||||
Other expenses | 1,972 | 2,617 | 1,502 | |||||||||
Total expenses | 12,185 | 9,732 | 9,694 | |||||||||
Income before income tax benefit and equity in undistributed income of subsidiaries | 41,584 | 54,045 | 20,487 | |||||||||
Income tax benefit | 3,999 | 3,153 | 3,316 | |||||||||
Income before equity in undistributed income of subsidiaries | 45,583 | 57,198 | 23,803 | |||||||||
Equity in undistributed (distributions in excess of) income of subsidiaries | 14,579 | (12,668 | ) | 21,319 | ||||||||
Net income | 60,162 | 44,530 | 45,122 | |||||||||
Preferred stock dividends and discount accretion | (2,380 | ) | (4,539 | ) | ||||||||
Net income available to common stockholders | $ | 60,162 | $ | 42,150 | $ | 40,583 | ||||||
Net income | $ | 60,162 | $ | 44,530 | $ | 45,122 | ||||||
Other comprehensive income (loss) | 4,780 | (911 | ) | (1,897 | ) | |||||||
Comprehensive income | $ | 64,942 | $ | 43,619 | $ | 43,225 | ||||||
Condensed Statement of Cash Flows | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash Flow From Operating Activities: | ||||||||||||
Net income | $ | 60,162 | $ | 44,530 | $ | 45,122 | ||||||
Adjustments to Reconcile Net Income to Net Cash: | ||||||||||||
Share-based compensation | 887 | 778 | 632 | |||||||||
Distributions in excess of (equity in undistributed) income of subsidiaries | (14,579 | ) | 12,668 | (21,319 | ) | |||||||
Net Change in: | ||||||||||||
Other assets | 2,425 | (1,354 | ) | 1,902 | ||||||||
Other liabilities | 1,466 | (8,438 | ) | 1,122 | ||||||||
Investment in subsidiaries - operating activities | (4,517 | ) | 12,991 | (1,755 | ) | |||||||
Net cash provided by operating activities | $ | 45,844 | $ | 61,175 | $ | 25,704 | ||||||
Cash Flow From Investing Activities: | ||||||||||||
Investment in subsidiaries | $ | (126 | ) | |||||||||
Net cash paid in acquisition | $ | (12,832 | ) | |||||||||
Other | $ | 240 | ||||||||||
Net cash provided (used) in investing activities | $ | (12,832 | ) | $ | 240 | $ | (126 | ) | ||||
Cash Flow From Financing Activities: | ||||||||||||
Cash dividends | $ | (10,694 | ) | $ | (7,992 | ) | $ | (7,442 | ) | |||
Repayment of borrowings | (55,000 | ) | (4,124 | ) | ||||||||
Proceeds from issuance of long-term debt | 70,000 | |||||||||||
Preferred stock redemption under small business lending fund | (90,783 | ) | ||||||||||
Stock issued under employee benefit plans | 478 | 479 | 449 | |||||||||
Stock issued under dividend reinvestment and stock purchase plan | 523 | 325 | 202 | |||||||||
Stock options exercised | 564 | 115 | 78 | |||||||||
Stock redeemed | (1,067 | ) | (491 | ) | (235 | ) | ||||||
Net cash used by financing activities | $ | (10,196 | ) | $ | (83,347 | ) | $ | (11,072 | ) | |||
Net change in cash | 22,816 | (21,932 | ) | 14,506 | ||||||||
Cash, beginning of the year | 13,228 | 35,160 | 20,654 | |||||||||
Cash, end of year | $ | 36,044 | $ | 13,228 | $ | 35,160 | ||||||
Accounting_Matters
Accounting Matters | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Matters | ACCOUNTING MATTERS |
FASB Accounting Standards Update No. 2015-01, Income Statement -Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items | |
The FASB has issued Accounting Standards Update (ASU) No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. | |
This ASU eliminates from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. | |
If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. | |
The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
FASB ASU No. 2014-17 Business Combinations (Topic 805): Pushdown Accounting | |
The amendments in this Update provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. | |
An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. | |
If an acquired entity elects the option to apply pushdown accounting in its separate financial statements, it should disclose information in the current reporting period that enables users of financial statements to evaluate the effect of pushdown accounting. | |
The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
FASB ASU 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 204-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern | |
In August 2014, FASB, issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
FASB ASU 2014-14, Receivables-Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure | |
In August 2014, FASB, issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The objective of this update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. The amendments in this update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. An entity should adopt the amendments in this update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU No. 2014-04. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted update 2014-04. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
FASB ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period | |
A consensus of the FASB Emerging Issues Task Force. The amendments in this update clarify that entities should treat performance targets that can be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. The ASU does not contain any new disclosure requirements. The ASU is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. In addition, entities will have the option of applying the guidance either prospectively (i.e., only to awards granted or modified on or after the effective date) or retrospectively. Retrospective application would only apply to awards with performance targets outstanding at or after the beginning of the first annual period presented (i.e., the earliest presented comparative period). Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
FASB ASU 2014-11, Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |
The amendments in this update require entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), eliminates accounting guidance on linking repurchase financing transactions, and expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers, such as repos, securities lending transactions, and repurchase-to-maturity transactions, accounted for as secured borrowings. The amendments in ASU 2014-11 are effective for annual periods beginning after December 15, 2014. The amendments must present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Early application is prohibited. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
FASB ASU 2014-09, Revenue from Contracts with Customers | |
The amendments in this update supersede virtually all existing GAAP revenue recognition guidance, including most industry-specific revenue recognition guidance. ASU 2014-09 creates a single, principle-based revenue recognition framework and will require entities to apply significantly more judgment and expanded disclosures surrounding revenue recognition. The core principle requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 applies to contracts with customers to provide goods and services, with certain exclusions such as lease contracts, financing arrangements, and financial instruments. The amendments in ASU 2014-09 are effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Corporation is evaluating the effect of this ASU on its consolidated financial statements. | |
Accounting Standards Update (ASU) 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |
In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. | |
ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects | |
In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects, to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. |
General_Litigation
General Litigation | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation | GENERAL LITIGATION |
The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Corporation. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
On January 5, 2015, First Merchants Corporation, an Indiana corporation (“First Merchants”), and C Financial Corporation, an Ohio corporation (“C Financial”), entered into an Agreement and Plan of Reorganization and Merger (the “Merger Agreement”), pursuant to which, C Financial 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 C Financial will cease and First Merchants will survive. Immediately following the Merger, Cooper State Bank, an Ohio state bank and wholly-owned subsidiary of C Financial, 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 continuing as the surviving bank. The Merger Agreement has been approved by the Boards of Directors of each of First Merchants and C Financial, but the consummation of the Merger is conditioned upon the approval of the C Financial shareholders and certain regulatory authorities as well as satisfaction of customary closing conditions. The Merger Agreement provides that upon the effective date of the Merger (the “Effective Date”), the shareholders of C Financial shall be entitled to receive an aggregate of $14,500,000 in cash in exchange for all of the outstanding shares of C Financial common stock, $1.00 par value. The amount each shareholder will receive will be equal to $14,500,000 multiplied by a fraction, the numerator of which is the number of shares of C Financial Common Stock held by such shareholder and the denominator of which is the number of shares of C Financial Common Stock outstanding on the Effective Date. Any shareholders who dissent from the Merger in accordance with Ohio Revised Code Sections 1701.84 and 1701.85, as amended, will only receive payment through the dissenters’ rights proceedings. Subject to C Financial common shareholders’ approval of the Merger Agreement, regulatory approvals and other customary closing conditions, the parties anticipate completing the Merger in the second quarter of 2015. |
Policies
(Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Consolidation | CONSOLIDATION of the Corporation's financial statements include the accounts of the Corporation and all its subsidiaries, after elimination of all material intercompany transactions. |
Business Combinations | BUSINESS COMBINATIONS are accounted for under the acquisition method of accounting. Under the acquisition method, assets and liabilities of the business acquired are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value of the net tangible and intangible assets acquired recorded as goodwill. Results of operations of the acquired business are included in the income statement from the date of acquisition. |
Available For Sale Securities | AVAILABLE FOR SALE SECURITIES are recorded at fair value on a recurring basis with the unrealized gains and losses, net of applicable income taxes, recorded in other comprehensive income. Realized gains and losses are recorded in earnings and the prior fair value adjustments are reclassified within stockholders' equity. Gains and losses on sales of securities are determined on the specific-identification method. Amortization of premiums and accretion of discounts are recorded as interest income from securities. |
Available for sale and held to maturity securities are evaluated for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under ASC 320. However, certain purchased beneficial interest, including certain non-agency government-sponsored mortgage-backed securities, asset-backed securities and collateralized debt obligations are evaluated using the model outlined in ASC 325-10. | |
In determining OTTI under ASC 320, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Corporation has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether a decline exists that is other-than-temporary, involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | |
When the Corporation does not intend to sell a debt security, and it is more likely than not, the Corporation will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors has been recognized in other comprehensive income, net of applicable income taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. | |
If the intent is to sell or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis, less any recognized credit loss, the OTTI is recognized in earnings equal to the entire difference between the investment’s amortized cost basis, less any recognized credit loss, and its fair value at the balance sheet date. | |
Held To Maturity Securities | HELD TO MATURITY SECURITIES are classified as held to maturity when the Corporation has the positive intent and ability to hold the securities to maturity. Securities held to maturity are carried at amortized cost. For held to maturity debt securities, the amount of an OTTI recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. |
Loans Held For Sale | LOANS HELD FOR SALE are carried at the principal amount outstanding. The carrying amount approximates fair value due to the short duration between origination and the date of sale. |
Loans | LOANS held in the Corporation’s portfolio are carried at the principal amount outstanding, net of unearned income. Certain non-accrual and substantially delinquent loans may be considered to be impaired. A loan is impaired when, based on current information or events, it is probable that the Bank will be unable to collect all amounts due (principal and interest) according to the contractual terms of the loan agreement. In applying the provisions of ASC 310, the Corporation considers its investment in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment. Interest income is accrued on the principal balances of loans, except for installment loans with add-on interest, for which a method that approximates the level yield method is used. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed against earnings when considered uncollectable. Interest income accrued in the prior year, if any, is charged to the allowance for loan losses. Interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status. Certain loan fees and direct costs are being deferred and amortized as an adjustment of yield on the loans. |
Impaired loans are carried at the present value of estimated future cash flows using the loan’s existing rate, or the fair value of collateral if the loan is collateral dependent. 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. The valuation would be considered Level 3, consisting of appraisals of underlying collateral and discounted cash flow analysis. | |
Loan commitments and letters-of-credit generally have short-term, variable-rate features and contain clauses which limit the Bank’s exposure to changes in customer credit quality. Accordingly, their carrying values, which are immaterial at the respective balance sheet dates, are reasonable estimates of fair value. | |
Loans Acquired in Business Combinations | LOANS ACQUIRED IN BUSINESS COMBINATIONS 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 purchase dates may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30). These loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans. As a result, related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans. For purposes of applying ASC 310-30, loans acquired in business combinations are aggregated into pools of loans with common risk characteristics for the initial fair value measurement. Accordingly, allowances for credit losses related to these loans are not carried over and recorded at the acquisition date. |
The expected cash flows of the acquired loans in excess of the fair values recorded is referred to as the accretable yield and is recognized in interest income over the remaining estimated lives of the loans. The Corporation will continually evaluate the fair value of the loans including cash flows expected to be collected. | |
Allowance for Loan Losses | ALLOWANCE FOR LOAN LOSSES is maintained to absorb losses inherent in the loan portfolio and is based on ongoing, quarterly assessments of the probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses, which is charged against current operating results. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Corporation’s strategy for credit risk management includes conservative credit policies and underwriting criteria for all loans, as well as an overall credit limit for each customer significantly below legal lending limits. The strategy also emphasizes diversification on a regional geographic, industry and customer level, regular credit quality reviews and management reviews of large credit exposures and loans experiencing deterioration of credit quality. |
The Corporation’s methodology for assessing the appropriateness of the allowance consists of three key elements – the determination of the appropriate reserves for specifically identified loans, probable losses estimated from historical loss rates, and probable losses resulting from economic, environmental, qualitative or other deterioration above and beyond what is reflected in the first two components of the allowance. | |
Larger commercial loans that exhibit probable or observed credit weaknesses are subject to individual review. Where appropriate, reserves are allocated to individual loans based on management’s estimate of the borrower’s ability to repay the loan given the availability of collateral, other sources of cash flow and legal options available to the Corporation. Included in the review of individual loans are those that are impaired as provided in ASC 310. Any allowances for impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or fair value of the underlying collateral. The Corporation evaluates the collectability of both principal and interest when assessing the need for a loss accrual. Historical loss rates are applied to other commercial loans not subject to specific reserve allocations. | |
The historical allocation for commercial loans graded pass are established by loan segments using loss rates based on the Corporation’s migration analysis. This migration analysis shows the loss rates for each segment of loans based on the loan grades at the beginning of the twelve month period. This loss rate is then applied to the current portfolio of loans in each respective loan segment. | |
Homogenous loans, such as consumer installment and residential mortgage loans, are not individually risk graded. Reserves are established for each segment of loans using loss rates based on charge offs for the same period as the migration analysis used for commercial loans. | |
Historical loss allocations for commercial and consumer loans may be adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. Factors which management considers in the analysis include the effects of the national and local economies, trends in loan growth and charge-off rates, changes in mix, concentration of loans in specific industries, asset quality trends (delinquencies, charge offs and non-accrual loans), risk management and loan administration, changes in the internal lending policies and credit standards, examination results from bank regulatory agencies and the Corporation’s internal loan review. | |
Pension | PENSION benefits are provided to the Corporation’s employees. Its accounting policies related to pensions and other post retirement benefits reflect the guidance in ASC 715, Compensation – Retirement Benefits. The Corporation does not consolidate the assets and liabilities associated with the pension plan. Instead, the Corporation recognizes the funded status of the plan in the consolidated balance sheets. The measurement of the funded status and the annual pension expense involves actuarial and economic assumptions. Various statistical and other factors, which attempt to anticipate future events, are used in calculating the expense and liabilities related to the plans. Key factors include assumptions on the expected rates of return on plan assets, discount rates, expected rates of salary increases and health care costs and trends. The Corporation considers market conditions, including changes in investment returns and interest rates in making these assumptions. The primary assumptions used in determining the Corporation’s pension and post retirement benefit obligations and related expenses are presented in Note 21. PENSION AND OTHER POST RETIREMENT BENEFIT PLANS, in the Notes to Consolidated Financial Statements included as Item 8 of this Annual Report on Form 10-K. |
Premises and Equipment | PREMISES AND EQUIPMENT is carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line and declining balance methods based on the estimated useful lives of the assets ranging from three to forty years. Maintenance and repairs are expensed as incurred, while major additions and improvements, which extend the useful life, are capitalized. Gains and losses on dispositions are included in current operations. |
Federal Reserve and Federal Home Loan Bank Stock | FEDERAL RESERVE AND FEDERAL HOME LOAN BANK STOCK are required investments for institutions that are members of the Federal Reserve Bank (“FRB”) and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula based on the level of borrowings and other factors. These investments are carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Intangible Assets | INTANGIBLE ASSETS that are subject to amortization, including core deposit intangibles, are being amortized on both the straight-line and accelerated basis over three to twenty years. Intangible assets are periodically evaluated as to the recoverability of their carrying value. |
Goodwill | GOODWILL is maintained by applying the provisions of ASC 350. For purchase acquisitions, the Corporation is required to record the assets acquired, including identified intangible assets, and the liabilities assumed at their fair value, which in many instances involves estimates based on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analysis or other valuation techniques that may include estimates of attrition, inflation, asset growth rates or other relevant factors. In addition, the determination of the useful lives for which an intangible asset will be amortized is subjective. |
Under ASC 350, Intangibles – Goodwill and Other, the Corporation is required to evaluate goodwill for impairment on an annual basis, as well as on an interim basis, if events or changes indicate that the asset may be impaired, indicating that the carrying value may not be recoverable. The Corporation has historically elected to test for goodwill impairment as of October 1 of each year and has determined that no impairment exists. | |
Bank Owned Life Insurance | BANK OWNED LIFE INSURANCE has been purchased on certain employees and directors of the Corporation. The Corporation records the life insurance at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement. |
Other Real Estate Owned | OTHER REAL ESTATE OWNED consists of assets acquired through, or in lieu of, loan foreclosure and are held for sale. They are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation are included in net income or expense from foreclosed assets. Other real estate owned also includes bank premises qualifying as held for sale. Bank premises are transferred at the lower of carrying value or fair value less cost to sell. |
Derivative Instruments | DERIVATIVE INSTRUMENTS are carried at the fair value of the derivatives and 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. |
As part of the asset/liability management program, the Corporation will utilize, from time to time, interest rate floors, caps or swaps to reduce its sensitivity to interest rate fluctuations. These are derivative instruments, which are recorded as assets or liabilities in the consolidated balance sheets at fair value. Changes in the fair values of derivatives are reported in the consolidated statements of operations or other comprehensive income (“OCI”) depending on the use of the derivative and whether the instrument qualifies for hedge accounting. The key criterion for the hedge accounting is that the hedged relationship must be highly effective in achieving offsetting changes in those cash flows that are attributable to the hedged risk, both at inception of the hedge and on an ongoing basis. | |
Derivatives that qualify for the hedge accounting treatment are designated as either: a hedge of the fair value of the recognized asset or liability or of an unrecognized firm commitment (a fair value hedge) or a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (a cash flow hedge). To date, the Corporation has only entered into a cash flow hedge. For cash flow hedges, changes in the fair values of the derivative instruments are reported in OCI to the extent the hedge is effective. The gains and losses on derivative instruments that are reported in OCI are reflected in the consolidated statements of income in the periods in which the results of operations are impacted by the variability of the cash flows of the hedged item. Generally, net interest income is increased or decreased by amounts receivable or payable with respect to the derivatives, which qualify for hedge accounting. At inception of the hedge, the Corporation establishes the method it uses for assessing the effectiveness of the hedging derivative and the measurement approach for determining the ineffective aspect of the hedge. The ineffective portion of the hedge, if any, is recognized currently in the consolidated statements of operations. The Corporation excludes the time value expiration of the hedge when measuring ineffectiveness. | |
The Corporation offers interest rate derivative products (e.g. interest rate swaps) to certain of its high-quality commercial borrowers. This product allows customers to enter into an agreement with the Corporation to swap their variable rate loan to a fixed rate. These derivative products are designed to reduce, eliminate or modify the risk of changes in the borrower’s interest rate or market price risk. The extension of credit incurred through the execution of these derivative products is subject to the same approvals and rigorous underwriting standards as the related traditional credit product. The Corporation limits its risk exposure to these products by entering into a mirror-image, offsetting swap agreement with a separate, well-capitalized and rated counterparty previously approved by the Credit and Asset Liability Committee. By using these interest rate swap arrangements, the Corporation is also better insulated from the interest rate risk associated with underwriting fixed-rate loans. These derivative contracts are not designated against specific assets or liabilities under ASC 815, Derivatives and Hedging, and, therefore, do not qualify for hedge accounting. The derivatives are recorded on the balance sheet at fair value and changes in fair value of both the customer and the offsetting swap agreements are recorded (and essentially offset) in non-interest income. The fair value of the derivative instruments incorporates a consideration of credit risk (in accordance with ASC 820), resulting in some volatility in earnings each period. | |
Income Tax | INCOME TAX in the consolidated statements of income includes deferred income tax provisions or benefits for all significant temporary differences in recognizing income and expenses for financial reporting and income tax purposes. The Corporation files consolidated income tax returns with its subsidiaries. |
The Corporation adopted the provisions of the ASC 740, Income Taxes, which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740, the Corporation did not identify any uncertain tax positions that it believes should be recognized in the financial statements. The tax years still subject to examination by taxing authorities are years subsequent to 2010. | |
Stock Option and Restricted Stock Award Plans | STOCK OPTION AND RESTRICTED STOCK AWARD PLANS are maintained by the Corporation. The compensation costs are recognized for stock options and restricted stock awards issued to employees and directors based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the appropriate service period, which is generally two or three years. |
Transfers of Financial Assets | TRANSFERS OF FINANCIAL ASSETS are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Net Income Per Share | NET INCOME PER SHARE is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding, plus the dilutive effect of outstanding stock options and nonvested restricted stock. |
Reclassifications | RECLASSIFICATIONS have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Purchase_and_Assumption_Tables
Purchase and Assumption (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired Loans Accounted With ASC 310 30 | The following table presents loans acquired during the periods ending December 31, 2014 and 2013, for which it was probable at acquisition that all contractually required payments would not be collected: | ||||||||
Community - 2014 | CFS - 2013 | ||||||||
Contractually required payments receivable at acquisition date | $ | 26,032 | $ | 109,839 | |||||
Nonaccretable difference | 3,498 | 22,679 | |||||||
Expected cash flows at acquisition date | 22,534 | 87,160 | |||||||
Accretable difference | 2,234 | 3,502 | |||||||
Basis in loans at acquisition date | $ | 20,300 | $ | 83,658 | |||||
SCB Bank | |||||||||
Business Acquisition [Line Items] | |||||||||
Assets and Liabilities of SCB Recorded at Provisional Fair Value | The assets and liabilities of SCB Bank 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 | |||||||
Business_Combination_Tables
Business Combination (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Schedule of pro forma information from acquisition | The following schedule includes pro forma results for the periods ended December 31, 2014, 2013 and 2012 as if the Community and CFS acquisitions had occurred as of the beginning of the comparable prior annual reporting period. | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Total revenue (net interest income plus other income) | $ | 263,070 | $ | 253,668 | $ | 266,034 | ||||||
Net income | $ | 61,572 | $ | 39,979 | $ | 50,092 | ||||||
Net income available to common shareholders | $ | 61,572 | $ | 37,599 | $ | 45,553 | ||||||
Earnings per share: | ||||||||||||
Basic | $ | 1.63 | $ | 0.98 | $ | 1.28 | ||||||
Diluted | $ | 1.61 | $ | 0.97 | $ | 1.27 | ||||||
Merger with Community Bancshares, Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Schedule of preliminary valuations of the fair value of assets acquired and liabilities assumed | Prior to the end of the one year measurement period for finalizing the purchase price allocation, if information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be included in the purchase price allocation retrospectively. | |||||||||||
Fair Value | ||||||||||||
Cash and cash equivalents | $ | 4,124 | ||||||||||
Interest -bearing time deposits | 16,526 | |||||||||||
Investment Securities, available for sale | 76,807 | |||||||||||
Loans | 145,064 | |||||||||||
Premises and equipment | 3,610 | |||||||||||
Federal Home Loan Bank stock | 1,950 | |||||||||||
Interest Receivable | 767 | |||||||||||
Cash surrender value of life insurance | 3,266 | |||||||||||
Other real estate owned | 6,662 | |||||||||||
Taxes, deferred and receivable | 3,348 | |||||||||||
Other assets | 167 | |||||||||||
Deposits | (228,424 | ) | ||||||||||
Interest payable | (98 | ) | ||||||||||
Other liabilities | (3,014 | ) | ||||||||||
Net tangible assets acquired | $ | 30,755 | ||||||||||
Core deposit intangible | 4,658 | |||||||||||
Goodwill | 13,776 | |||||||||||
Purchase price | $ | 49,189 | ||||||||||
Merger with CFS Bancorp, Inc. (Citizens) | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Schedule of preliminary valuations of the fair value of assets acquired and liabilities assumed | The purchase price for the CFS acquisition was allocated as follows: | |||||||||||
Fair Value | ||||||||||||
Cash and cash equivalents | $ | 10,992 | ||||||||||
Interest-bearing time deposits | 213,379 | |||||||||||
Investment securities available for sale | 15,913 | |||||||||||
Investment securities held to maturity | 14,372 | |||||||||||
Mortgage loans held for sale | 189 | |||||||||||
Loans | 603,114 | |||||||||||
Premises and equipment | 19,643 | |||||||||||
Federal Home Loan Bank stock | 6,188 | |||||||||||
Interest receivable | 1,770 | |||||||||||
Cash surrender value of life insurance | 36,555 | |||||||||||
Other real estate owned | 12,857 | |||||||||||
Tax asset, deferred and receivable | 30,717 | |||||||||||
Other assets | 111,656 | |||||||||||
Deposits | (955,432 | ) | ||||||||||
Securities sold under repurchase agreements | (9,830 | ) | ||||||||||
Federal Home Loan Bank advances | (15,000 | ) | ||||||||||
Interest payable | (294 | ) | ||||||||||
Other liabilities | (16,033 | ) | ||||||||||
Net tangible assets acquired | $ | 80,756 | ||||||||||
Core deposit intangible | 7,313 | |||||||||||
Goodwill | 47,573 | |||||||||||
Purchase price | $ | 135,642 | ||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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 market value of the Corporation's investment securities at the dates indicated were: | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||
Available for sale at December 31, 2014 | ||||||||||||||||||||||||
U.S. Government-sponsored agency securities | $ | 100 | $ | 9 | $ | 109 | ||||||||||||||||||
State and municipal | 216,915 | 11,801 | $ | 123 | 228,593 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 310,460 | 8,771 | 127 | 319,104 | ||||||||||||||||||||
Corporate obligations | 31 | 31 | ||||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 529,212 | 20,581 | 250 | 549,543 | ||||||||||||||||||||
Held to maturity at December 31, 2014 | ||||||||||||||||||||||||
State and municipal | 204,443 | 5,716 | 96 | 210,063 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 426,645 | 11,527 | 512 | 437,660 | ||||||||||||||||||||
Total held to maturity | 631,088 | 17,243 | 608 | 647,723 | ||||||||||||||||||||
Total Investment Securities | $ | 1,160,300 | $ | 37,824 | $ | 858 | $ | 1,197,266 | ||||||||||||||||
Available for sale at December 31, 2013 | ||||||||||||||||||||||||
U.S. Treasury | $ | 15,914 | $ | 80 | $ | 21 | $ | 15,973 | ||||||||||||||||
U.S. Government-sponsored agency securities | 3,550 | 12 | 17 | 3,545 | ||||||||||||||||||||
State and municipal | 231,005 | 3,878 | 3,896 | 230,987 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 279,299 | 3,926 | 1,973 | 281,252 | ||||||||||||||||||||
Corporate obligations | 6,374 | 3,636 | 2,738 | |||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total available for sale | 537,848 | 7,896 | 9,543 | 536,201 | ||||||||||||||||||||
Held to maturity at December 31, 2013 | ||||||||||||||||||||||||
State and municipal | 145,941 | 62 | 91 | 145,912 | ||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 413,437 | 5,220 | 3,722 | 414,935 | ||||||||||||||||||||
Total held to maturity | 559,378 | 5,282 | 3,813 | 560,847 | ||||||||||||||||||||
Total Investment Securities | $ | 1,097,226 | $ | 13,178 | $ | 13,356 | $ | 1,097,048 | ||||||||||||||||
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 Credit Losses in | Accumulated Credit Losses in | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Credit losses on debt securities held: | ||||||||||||||||||||||||
Balance, January 1 | $ | 11,355 | $ | 11,355 | ||||||||||||||||||||
Reductions for previous other-than-temporary losses realized on securities sold during the year | (10,855 | ) | ||||||||||||||||||||||
Balance, December 31 | $ | 500 | $ | 11,355 | ||||||||||||||||||||
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 gross unrealized losses and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | |||||||||||||||||||||||
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 Available for Sale Securities at December 31, 2014 | ||||||||||||||||||||||||
State and municipal | $ | 1,256 | $ | 7 | $ | 9,850 | $ | 116 | $ | 11,106 | $ | 123 | ||||||||||||
U.S. Government-sponsored mortgage-backed securities | 2,186 | 13 | 5,447 | 114 | 7,633 | 127 | ||||||||||||||||||
Total Temporarily Impaired Available for Sale Securities | 3,442 | 20 | 15,297 | 230 | 18,739 | 250 | ||||||||||||||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2014 | ||||||||||||||||||||||||
State and municipal | 5,119 | 96 | 250 | 5,369 | 96 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 9,791 | 82 | 38,491 | 430 | 48,282 | 512 | ||||||||||||||||||
Total Temporarily Impaired Held to Maturity Securities | 14,910 | 178 | 38,741 | 430 | 53,651 | 608 | ||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 18,352 | $ | 198 | $ | 54,038 | $ | 660 | $ | 72,390 | $ | 858 | ||||||||||||
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 Available for Sale Securities at December 31, 2013 | ||||||||||||||||||||||||
U.S. Treasury | $ | 4,875 | $ | 21 | $ | 4,875 | $ | 21 | ||||||||||||||||
U.S. Government-sponsored agency securities | 3,433 | 17 | 3,433 | 17 | ||||||||||||||||||||
State and municipal | 111,791 | 3,840 | $ | 583 | $ | 56 | 112,374 | 3,896 | ||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 117,866 | 1,701 | 2,683 | 272 | 120,549 | 1,973 | ||||||||||||||||||
Corporate obligations | 2,711 | 3,636 | 2,711 | 3,636 | ||||||||||||||||||||
Total Temporarily Impaired Available for Sale Securities | 237,965 | 5,579 | 5,977 | 3,964 | 243,942 | 9,543 | ||||||||||||||||||
Temporarily Impaired Held to Maturity Securities at December 31, 2013 | ||||||||||||||||||||||||
State and municipal | 17,318 | 91 | 184 | 17,502 | 91 | |||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 213,048 | 3,462 | 2,640 | 260 | 215,688 | 3,722 | ||||||||||||||||||
Total Temporarily Impaired Held to Maturity Securities | 230,366 | 3,553 | 2,824 | 260 | 233,190 | 3,813 | ||||||||||||||||||
Total Temporarily Impaired Investment Securities | $ | 468,331 | $ | 9,132 | $ | 8,801 | $ | 4,224 | $ | 477,132 | $ | 13,356 | ||||||||||||
Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity | 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 Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||
Maturity Distribution at December 31, 2014 | ||||||||||||||||||||||||
Due in one year or less | $ | 3,127 | $ | 3,153 | $ | 6,258 | $ | 6,329 | ||||||||||||||||
Due after one through five years | 9,565 | 9,840 | 18,440 | 18,930 | ||||||||||||||||||||
Due after five through ten years | 48,675 | 50,889 | 85,997 | 87,903 | ||||||||||||||||||||
Due after ten years | 155,679 | 164,851 | 93,748 | 96,901 | ||||||||||||||||||||
217,046 | 228,733 | 204,443 | 210,063 | |||||||||||||||||||||
U.S. Government-sponsored mortgage-backed securities | 310,460 | 319,104 | 426,645 | 437,660 | ||||||||||||||||||||
Equity securities | 1,706 | 1,706 | ||||||||||||||||||||||
Total Investment Securities | $ | 529,212 | $ | 549,543 | $ | 631,088 | $ | 647,723 | ||||||||||||||||
Loans_and_Allowance_Tables
Loans and Allowance (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||
Composition of Loan Portfolio by Loan Class | The following table illustrates the composition of the Corporation’s loan portfolio by loan class for the years indicated: | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 896,688 | $ | 761,705 | ||||||||||||||||||||||||||
Agricultural production financing and other loans to farmers | 104,927 | 114,348 | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 207,221 | 177,082 | ||||||||||||||||||||||||||||
Commercial and farmland | 1,672,661 | 1,611,809 | ||||||||||||||||||||||||||||
Residential | 647,315 | 616,385 | ||||||||||||||||||||||||||||
Home equity | 286,529 | 255,223 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 73,400 | 69,783 | ||||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,106 | 1,545 | ||||||||||||||||||||||||||||
Other loans | 35,018 | 24,529 | ||||||||||||||||||||||||||||
Loans | 3,924,865 | 3,632,409 | ||||||||||||||||||||||||||||
Allowance for loan losses | (63,964 | ) | (67,870 | ) | ||||||||||||||||||||||||||
Net Loans | $ | 3,860,901 | $ | 3,564,539 | ||||||||||||||||||||||||||
Changes in Allowance for Loan Losses | The following table summarizes changes in the allowance for loan losses by loan segment for the twelve months ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 27,176 | $ | 23,102 | $ | 2,515 | $ | 15,077 | $ | 67,870 | ||||||||||||||||||||
Provision for losses | 3,459 | (464 | ) | 423 | (839 | ) | $ | (19 | ) | 2,560 | ||||||||||||||||||||
Recoveries on loans | 5,435 | 3,297 | 377 | 1,783 | 24 | 10,916 | ||||||||||||||||||||||||
Loans charged off | (7,246 | ) | (6,608 | ) | (657 | ) | (2,869 | ) | (2 | ) | (17,382 | ) | ||||||||||||||||||
Balances, December 31, 2014 | $ | 28,824 | $ | 19,327 | $ | 2,658 | $ | 13,152 | $ | 3 | $ | 63,964 | ||||||||||||||||||
Twelve Months Ended December 31, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Provision for losses | 2,794 | 340 | (11 | ) | 3,514 | $ | 11 | 6,648 | ||||||||||||||||||||||
Recoveries on loans | 4,586 | 3,552 | 556 | 1,292 | 4 | 9,990 | ||||||||||||||||||||||||
Loans charged off | (6,117 | ) | (7,493 | ) | (623 | ) | (3,886 | ) | (15 | ) | (18,134 | ) | ||||||||||||||||||
Balances, December 31, 2013 | $ | 27,176 | $ | 23,102 | $ | 2,515 | $ | 15,077 | $ | 67,870 | ||||||||||||||||||||
Twelve Months Ended December 31, 2012 | ||||||||||||||||||||||||||||||
Commercial | Commercial Real Estate | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Leases | ||||||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||
Balances, January 1 | $ | 17,731 | $ | 37,919 | $ | 2,902 | $ | 12,343 | $ | 3 | $ | 70,898 | ||||||||||||||||||
Provision for losses | 14,749 | (2,546 | ) | 126 | 6,176 | 29 | 18,534 | |||||||||||||||||||||||
Recoveries on loans | 1,744 | 3,652 | 695 | 1,113 | 2 | 7,206 | ||||||||||||||||||||||||
Loans charged off | (8,311 | ) | (12,322 | ) | (1,130 | ) | (5,475 | ) | (34 | ) | (27,272 | ) | ||||||||||||||||||
Balances, December 31, 2012 | $ | 25,913 | $ | 26,703 | $ | 2,593 | $ | 14,157 | $ | 69,366 | ||||||||||||||||||||
Allowance for Credit Losses and Loan Portfolio by Loan Segment | The following tables show the Corporation’s allowance for loan losses and loan portfolio by loan segment for the years indicated: | |||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,455 | $ | 470 | $ | 194 | $ | 2,119 | ||||||||||||||||||||||
Collectively evaluated for impairment | 27,369 | 18,207 | $ | 2,658 | 12,958 | $ | 3 | 61,195 | ||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 650 | 650 | ||||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 28,824 | $ | 19,327 | $ | 2,658 | $ | 13,152 | $ | 3 | $ | 63,964 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 16,108 | $ | 23,963 | $ | 4,022 | $ | 44,093 | ||||||||||||||||||||||
Collectively evaluated for impairment | 1,011,122 | 1,796,797 | $ | 73,400 | 925,282 | $ | 1,106 | 3,807,707 | ||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 9,403 | 59,122 | 4,540 | 73,065 | ||||||||||||||||||||||||||
Loans | $ | 1,036,633 | $ | 1,879,882 | $ | 73,400 | $ | 933,844 | $ | 1,106 | $ | 3,924,865 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Commercial | Commercial | Consumer | Residential | Finance | Total | |||||||||||||||||||||||||
Real Estate | Leases | |||||||||||||||||||||||||||||
Allowance balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 585 | $ | 763 | $ | 6 | $ | 1,354 | ||||||||||||||||||||||
Collectively evaluated for impairment | 26,493 | 22,208 | $ | 2,515 | 15,071 | 66,287 | ||||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 98 | 131 | 229 | |||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 27,176 | $ | 23,102 | $ | 2,515 | $ | 15,077 | $ | 67,870 | ||||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,240 | $ | 29,007 | $ | 2,820 | $ | 42,067 | ||||||||||||||||||||||
Collectively evaluated for impairment | 882,794 | 1,690,285 | $ | 69,783 | 867,094 | $ | 1,545 | 3,511,501 | ||||||||||||||||||||||
Loans acquired with deteriorated credit quality | 7,548 | 69,599 | 1,694 | 78,841 | ||||||||||||||||||||||||||
Loans | $ | 900,582 | $ | 1,788,891 | $ | 69,783 | $ | 871,608 | $ | 1,545 | $ | 3,632,409 | ||||||||||||||||||
Summary of Non-Accrual Loans by Loan class | The following table summarizes the Corporation’s non-accrual loans by loan class for the years indicated: | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 7,048 | $ | 9,283 | ||||||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 5,800 | 30 | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 1,439 | 4,978 | ||||||||||||||||||||||||||||
Commercial and farmland | 19,350 | 28,095 | ||||||||||||||||||||||||||||
Residential | 12,933 | 12,068 | ||||||||||||||||||||||||||||
Home equity | 1,988 | 1,667 | ||||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 231 | 117 | ||||||||||||||||||||||||||||
Other loans | 164 | |||||||||||||||||||||||||||||
Total | $ | 48,789 | $ | 56,402 | ||||||||||||||||||||||||||
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 years indicated: | |||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Balance | Investment | Allowance | ||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 35,514 | $ | 18,029 | $ | 18,711 | $ | 362 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 26 | 22 | 26 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 12,956 | 9,318 | 9,837 | 427 | ||||||||||||||||||||||||||
Commercial and farmland | 95,856 | 68,187 | 70,844 | 3,389 | ||||||||||||||||||||||||||
Residential | 10,591 | 6,839 | 6,987 | 119 | ||||||||||||||||||||||||||
Home equity | 3,590 | 398 | 402 | |||||||||||||||||||||||||||
Other loans | 30 | |||||||||||||||||||||||||||||
Total | $ | 158,563 | $ | 102,793 | $ | 106,807 | $ | 4,297 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,766 | $ | 1,684 | $ | 1,055 | $ | 1,721 | $ | 40 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 6,777 | 5,777 | 400 | 8,044 | 1 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 7,159 | 4,971 | 1,120 | 4,999 | 24 | |||||||||||||||||||||||||
Residential | 1,001 | 998 | 194 | 1,000 | ||||||||||||||||||||||||||
Total | $ | 16,703 | $ | 13,430 | $ | 2,769 | $ | 15,764 | $ | 65 | ||||||||||||||||||||
Total Impaired Loans | $ | 175,266 | $ | 116,223 | $ | 2,769 | $ | 122,571 | $ | 4,362 | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Balance | Investment | Allowance | ||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 35,066 | $ | 16,371 | $ | 19,209 | $ | 192 | ||||||||||||||||||||||
Agriculture production financing and other loans to farmers | 32 | 30 | 32 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 16,109 | 10,625 | 11,621 | 117 | ||||||||||||||||||||||||||
Commercial and farmland | 128,073 | 83,033 | 84,057 | 1,663 | ||||||||||||||||||||||||||
Residential | 6,746 | 3,910 | 4,236 | 75 | ||||||||||||||||||||||||||
Home equity | 3,299 | 112 | 225 | |||||||||||||||||||||||||||
Other loans | 454 | 172 | 181 | 1 | ||||||||||||||||||||||||||
Total | $ | 189,779 | $ | 114,253 | $ | 119,561 | $ | 2,048 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 1,390 | $ | 1,216 | $ | 683 | $ | 1,240 | $ | 9 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||
Commercial and farmland | 4,657 | 4,215 | 894 | 4,291 | 9 | |||||||||||||||||||||||||
Residential | 74 | 71 | 6 | 76 | ||||||||||||||||||||||||||
Total | $ | 6,121 | $ | 5,502 | $ | 1,583 | $ | 5,607 | $ | 18 | ||||||||||||||||||||
Total Impaired Loans | $ | 195,900 | $ | 119,755 | $ | 1,583 | $ | 125,168 | $ | 2,066 | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||
Unpaid Principal | Recorded | Related | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||||||||||||
Balance | Investment | Allowance | ||||||||||||||||||||||||||||
Impaired loans with no related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 28,532 | $ | 11,730 | $ | 15,089 | $ | 124 | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 9,787 | 5,164 | 6,471 | 66 | ||||||||||||||||||||||||||
Commercial and farmland | 58,173 | 43,204 | 46,788 | 1,211 | ||||||||||||||||||||||||||
Residential | 8,820 | 6,215 | 7,129 | 83 | ||||||||||||||||||||||||||
Home equity | 4,199 | 1,006 | 1,022 | 13 | ||||||||||||||||||||||||||
Other loans | 83 | 14 | 18 | 1 | ||||||||||||||||||||||||||
Total | $ | 109,594 | $ | 67,333 | $ | 76,517 | $ | 1,498 | ||||||||||||||||||||||
Impaired loans with related allowance: | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 4,415 | $ | 4,155 | $ | 1,628 | $ | 4,225 | $ | 33 | ||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 1,202 | 1,058 | 105 | 1,175 | ||||||||||||||||||||||||||
Commercial and farmland | 5,579 | 5,182 | 2,460 | 5,239 | 95 | |||||||||||||||||||||||||
Residential | 1,722 | 1,451 | 50 | 1,458 | 75 | |||||||||||||||||||||||||
Total | $ | 12,918 | $ | 11,846 | $ | 4,243 | $ | 12,097 | $ | 203 | ||||||||||||||||||||
Total Impaired Loans | $ | 122,512 | $ | 79,179 | $ | 4,243 | $ | 88,614 | $ | 1,701 | ||||||||||||||||||||
Credit Quality of Loan Portfolio by Loan Class | The following tables summarize the credit quality of the Corporation’s loan portfolio, by loan class for the years 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. Loans that evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected are included in the applicable categories below. | |||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Commercial Pass | Commercial Special Mention | Commercial Substandard | Commercial Doubtful | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Non Performing | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 823,732 | $ | 24,455 | $ | 48,226 | $ | 275 | $ | 896,688 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 96,155 | 1,195 | 7,577 | 104,927 | ||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 185,394 | 3,164 | 2,928 | $ | 15,588 | $ | 147 | 207,221 | ||||||||||||||||||||||
Commercial and farmland | 1,552,781 | 29,484 | 90,161 | 235 | 1,672,661 | |||||||||||||||||||||||||
Residential | 149,430 | 6,321 | 10,918 | 470,972 | 9,674 | 647,315 | ||||||||||||||||||||||||
Home equity | 6,368 | 12 | 690 | 277,571 | 1,888 | 286,529 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 73,165 | 235 | 73,400 | |||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 998 | 108 | 1,106 | |||||||||||||||||||||||||||
Other loans | 35,018 | 35,018 | ||||||||||||||||||||||||||||
Loans | $ | 2,849,876 | $ | 64,631 | $ | 160,608 | $ | 275 | $ | 837,296 | $ | 12,179 | $ | 3,924,865 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Commercial Pass | Commercial Special Mention | Commercial Substandard | Commercial Doubtful | Commercial Loss | Consumer Performing | Consumer | Total | |||||||||||||||||||||||
Non Performing | ||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 708,835 | $ | 11,332 | $ | 41,013 | $ | 525 | $ | 761,705 | ||||||||||||||||||||
Agriculture production financing and other loans to farmers | 114,318 | 30 | 114,348 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 162,976 | 1,132 | 12,029 | $ | 945 | 177,082 | ||||||||||||||||||||||||
Commercial and farmland | 1,473,714 | 57,676 | 80,184 | 235 | 1,611,809 | |||||||||||||||||||||||||
Residential | 143,657 | 2,232 | 11,494 | 136 | $ | 448,494 | 10,372 | 616,385 | ||||||||||||||||||||||
Home equity | 6,194 | 35 | 1,184 | 246,101 | 1,709 | 255,223 | ||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 69,666 | 117 | 69,783 | |||||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,420 | 125 | 1,545 | |||||||||||||||||||||||||||
Other loans | 24,334 | 195 | 24,529 | |||||||||||||||||||||||||||
Loans | $ | 2,635,448 | $ | 72,407 | $ | 146,254 | $ | 661 | $ | 764,261 | $ | 13,378 | $ | 3,632,409 | ||||||||||||||||
Past Due Aging of Loan Portfolio by Loan Class | The following tables illustrate the past due aging of the Corporation’s loan portfolio, by loan class, for the years indicated: | |||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
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 | $ | 882,596 | $ | 4,006 | $ | 53 | $ | 2,985 | $ | 7,048 | $ | 14,092 | $ | 896,688 | ||||||||||||||||
Agriculture production financing and other loans to farmers | 98,236 | 891 | 5,800 | 6,691 | 104,927 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 204,683 | 1,017 | 82 | 1,439 | 2,538 | 207,221 | ||||||||||||||||||||||||
Commercial and farmland | 1,642,016 | 9,846 | 778 | 671 | 19,350 | 30,645 | 1,672,661 | |||||||||||||||||||||||
Residential | 626,821 | 4,876 | 1,831 | 854 | 12,933 | 20,494 | 647,315 | |||||||||||||||||||||||
Home equity | 282,828 | 1,213 | 352 | 148 | 1,988 | 3,701 | 286,529 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 72,853 | 258 | 53 | 5 | 231 | 547 | 73,400 | |||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,106 | 1,106 | ||||||||||||||||||||||||||||
Other loans | 35,018 | 35,018 | ||||||||||||||||||||||||||||
Loans | $ | 3,846,157 | $ | 22,107 | $ | 3,149 | $ | 4,663 | $ | 48,789 | $ | 78,708 | $ | 3,924,865 | ||||||||||||||||
December 31, 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 | $ | 749,020 | $ | 2,628 | $ | 774 | $ | 9,283 | $ | 12,685 | $ | 761,705 | ||||||||||||||||||
Agriculture production financing and other loans to farmers | 114,305 | 13 | 30 | 43 | 114,348 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Construction | 171,046 | 1,058 | 4,978 | 6,036 | 177,082 | |||||||||||||||||||||||||
Commercial and farmland | 1,573,403 | 3,807 | 5,801 | $ | 703 | 28,095 | 38,406 | 1,611,809 | ||||||||||||||||||||||
Residential | 595,192 | 7,156 | 1,475 | 494 | 12,068 | 21,193 | 616,385 | |||||||||||||||||||||||
Home equity | 251,188 | 1,652 | 563 | 153 | 1,667 | 4,035 | 255,223 | |||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 69,061 | 550 | 55 | 117 | 722 | 69,783 | ||||||||||||||||||||||||
Lease financing receivables, net of unearned income | 1,545 | 1,545 | ||||||||||||||||||||||||||||
Other loans | 24,365 | 164 | 164 | 24,529 | ||||||||||||||||||||||||||
Loans | $ | 3,549,125 | $ | 16,864 | $ | 8,668 | $ | 1,350 | $ | 56,402 | $ | 83,284 | $ | 3,632,409 | ||||||||||||||||
Schedules of Troubled Debt Restructuring | The following tables summarize troubled debt restructures that occurred during the twelve months ended December 31, 2014 and 2013, 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. | |||||||||||||||||||||||||||||
Twelve Months Ended December 31, 2014 | ||||||||||||||||||||||||||||||
Number of Loans | Recorded Balance | |||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Residential | 1 | $ | 70 | |||||||||||||||||||||||||||
Total | 1 | $ | 70 | |||||||||||||||||||||||||||
Twelve Months Ended December 31, 2013 | ||||||||||||||||||||||||||||||
Number of Loans | Recorded Balance | |||||||||||||||||||||||||||||
Commercial and industrial loans | 3 | $ | 173 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 2 | 1,034 | ||||||||||||||||||||||||||||
Total | 5 | $ | 1,207 | |||||||||||||||||||||||||||
The following tables summarize troubled debt restructurings that occurred during the periods ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | ||||||||||||||||||||||||||||
Recorded Balance | Recorded Balance | of Loans | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | $ | 259 | $ | 259 | 1 | |||||||||||||||||||||||||
Residential | 632 | 622 | 9 | |||||||||||||||||||||||||||
Home equity | 320 | 350 | 11 | |||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 26 | 26 | 2 | |||||||||||||||||||||||||||
Total | $ | 1,237 | $ | 1,257 | 23 | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Number | ||||||||||||||||||||||||||||
Recorded Balance | Recorded Balance | of Loans | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 295 | $ | 316 | 5 | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 6,506 | 5,492 | 11 | |||||||||||||||||||||||||||
Residential | 809 | 804 | 12 | |||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 143 | 145 | 4 | |||||||||||||||||||||||||||
Total | $ | 7,753 | $ | 6,757 | 32 | |||||||||||||||||||||||||
The following tables show the recorded investment of troubled debt restructurings, by modification type, that occurred during the years indicated: | ||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | $ | 288 | $ | 288 | ||||||||||||||||||||||||||
Residential | 31 | $ | 218 | $ | 360 | 609 | ||||||||||||||||||||||||
Home equity | 100 | 243 | 343 | |||||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 23 | 23 | ||||||||||||||||||||||||||||
Total | $ | 319 | $ | 318 | $ | 626 | $ | 1,263 | ||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||
Term | Rate | Combination | Total | |||||||||||||||||||||||||||
Modification | Modification | Modification | ||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 207 | $ | 60 | $ | 267 | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||
Commercial and farmland | 1,388 | 1,985 | 3,373 | |||||||||||||||||||||||||||
Residential | 167 | $ | 237 | 351 | 755 | |||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 61 | 38 | 25 | 124 | ||||||||||||||||||||||||||
Total | $ | 1,823 | $ | 275 | $ | 2,421 | $ | 4,519 | ||||||||||||||||||||||
Accounting_For_Certain_Loans_A1
Accounting For Certain Loans Acquired In a Purchase (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||
Schedule of Carrying Values of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities | The following table includes the outstanding balance and carrying amount of all the performing and non-performing acquired loans, which are included in the Corporation's balance sheet at December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | |||||||||||||||||||||||||||||||
Community | CFS | SCB | Total | CFS | SCB | Total | ||||||||||||||||||||||||||
Outstanding Balance: | ||||||||||||||||||||||||||||||||
Commercial and industrial loans | $ | 8,168 | $ | 64,897 | $ | 6,059 | $ | 79,124 | $ | 81,303 | $ | 8,184 | $ | 89,487 | ||||||||||||||||||
Agricultural production financing and other loans to farmers | 1,100 | 893 | 1,993 | 1,161 | 1,161 | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||||||
Construction | 19,063 | 9,113 | 28,176 | 17,962 | 17,962 | |||||||||||||||||||||||||||
Commercial and farmland | 74,600 | 251,002 | 15,593 | 341,195 | 311,631 | 23,418 | 335,049 | |||||||||||||||||||||||||
Residential | 28,863 | 144,396 | 7,384 | 180,643 | 166,754 | 9,359 | 176,113 | |||||||||||||||||||||||||
Home Equity | 9,881 | 39,244 | 15,758 | 64,883 | 49,042 | 18,236 | 67,278 | |||||||||||||||||||||||||
Individuals' loans for household and other personal expenditures | 1,314 | 922 | 121 | 2,357 | 2,360 | 269 | 2,629 | |||||||||||||||||||||||||
Other Loans | 86 | 86 | $ | 132 | $ | 407 | $ | 539 | ||||||||||||||||||||||||
Total | $ | 142,989 | $ | 509,660 | $ | 45,808 | $ | 698,457 | $ | 629,184 | $ | 61,034 | $ | 690,218 | ||||||||||||||||||
Carrying Amount | $ | 134,198 | $ | 484,949 | $ | 39,324 | $ | 658,471 | $ | 585,913 | $ | 50,269 | $ | 636,182 | ||||||||||||||||||
Allowance | 650 | 650 | 229 | 229 | ||||||||||||||||||||||||||||
Carrying Amount Net of Allowance | $ | 134,198 | $ | 484,299 | $ | 39,324 | $ | 657,821 | $ | 585,913 | $ | 50,040 | $ | 635,953 | ||||||||||||||||||
Schedule of Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement | ccretable yield, or income expected to be collected, and reclassifications from nonaccretable yield, are identified in the table below. | |||||||||||||||||||||||||||||||
Twelve months ended | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||
Community | CFS | SCB | Total | CFS | SCB | Total | SCB | |||||||||||||||||||||||||
Beginning balance | $ | 13,435 | $ | 5,864 | $ | 19,299 | $ | 5,142 | $ | 5,142 | $ | — | ||||||||||||||||||||
Additions | $ | 5,687 | 5,687 | $ | 13,599 | 13,599 | ||||||||||||||||||||||||||
Accretion | (394 | ) | (6,431 | ) | (2,058 | ) | (8,883 | ) | (164 | ) | (2,071 | ) | (2,235 | ) | 9,774 | |||||||||||||||||
Reclassification from nonaccretable | 119 | 4,501 | 799 | 5,419 | 2,888 | 2,888 | (4,632 | ) | ||||||||||||||||||||||||
Disposals | (1,594 | ) | (492 | ) | (2,086 | ) | (95 | ) | (95 | ) | — | |||||||||||||||||||||
Ending balance | $ | 5,412 | $ | 9,911 | $ | 4,113 | $ | 19,436 | $ | 13,435 | $ | 5,864 | $ | 19,299 | $ | 5,142 | ||||||||||||||||
Schedule Of Loans Acquired During Period For Which Contractually Required Payments Would Not Be Collected | The following table presents loans acquired during the periods ending December 31, 2014 and 2013, for which it was probable at acquisition that all contractually required payments would not be collected: | |||||||||||||||||||||||||||||||
Community - 2014 | CFS - 2013 | |||||||||||||||||||||||||||||||
Contractually required payments receivable at acquisition date | $ | 26,032 | $ | 109,839 | ||||||||||||||||||||||||||||
Nonaccretable difference | 3,498 | 22,679 | ||||||||||||||||||||||||||||||
Expected cash flows at acquisition date | 22,534 | 87,160 | ||||||||||||||||||||||||||||||
Accretable difference | 2,234 | 3,502 | ||||||||||||||||||||||||||||||
Basis in loans at acquisition date | $ | 20,300 | $ | 83,658 | ||||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of Premises and Equipment | The following table summarizes the Corporation's premises and equipment as of December 31, 2014 and 2013: | |||||||
2014 | 2013 | |||||||
Cost at December 31: | ||||||||
Land | $ | 19,373 | $ | 17,992 | ||||
Buildings and Leasehold Improvements | 99,451 | 92,693 | ||||||
Equipment | 56,606 | 54,274 | ||||||
Total Cost | 175,430 | 164,959 | ||||||
Accumulated Depreciation and Amortization | (97,739 | ) | (90,505 | ) | ||||
Net | $ | 77,691 | $ | 74,454 | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum rental commitments required under the operating leases in effect at December 31, 2014, expiring at various dates through the year 2028 are as follows for the years ending December 31: | |||||||
Future Minimum Rental Commitments | ||||||||
2015 | $ | 2,778 | ||||||
2016 | 2,207 | |||||||
2017 | 1,514 | |||||||
2018 | 844 | |||||||
2019 | 537 | |||||||
After 2019 | 2,724 | |||||||
Total Future Minimum Obligations | $ | 10,604 | ||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill Disclosure [Abstract] | ||||||||
Schedule of Goodwill | For additional details related to impairment testing, see the “GOODWILL” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as Item 7 of this Annual Report on Form 10-K. | |||||||
2014 | 2013 | |||||||
Balance, January 1 | $ | 188,948 | $ | 141,375 | ||||
Goodwill acquired | 13,776 | 47,573 | ||||||
Balance, December 31 | $ | 202,724 | $ | 188,948 | ||||
Core_Deposit_and_Other_Intangi1
Core Deposit and Other Intangibles (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||||||
Schedule of Core Deposit and Other Intangibles | The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below. | |||||||
2014 | 2013 | |||||||
Gross carrying amount | $ | 53,702 | $ | 46,389 | ||||
Core deposit intangible and other intangibles acquired | 4,658 | 7,313 | ||||||
Accumulated amortization | (42,329 | ) | (39,884 | ) | ||||
Core Deposit and Other Intangibles | $ | 16,031 | $ | 13,818 | ||||
Schedule of Estimated Amortization Expense | Estimated future amortization expense is summarized as follows: | |||||||
Amortization Expense | ||||||||
2015 | $ | 2,884 | ||||||
2016 | 2,817 | |||||||
2017 | 2,723 | |||||||
2018 | 1,542 | |||||||
2019 | 1,293 | |||||||
After 2019 | 4,772 | |||||||
Total Future Minimum Obligations | $ | 16,031 | ||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Banking and Thrift [Abstract] | ||||||||
Schedule Of Deposits | The composition of the deposit portfolio is included in the table below for the years indicated: | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
Demand deposits | $ | 2,146,492 | $ | 2,018,650 | ||||
Savings deposits | 1,376,707 | 1,257,994 | ||||||
Certificates and other time deposits of $100,000 or more | 260,685 | 272,660 | ||||||
Other certificates and time deposits | 523,010 | 595,110 | ||||||
Brokered deposits | 333,800 | 87,054 | ||||||
Total deposits | $ | 4,640,694 | $ | 4,231,468 | ||||
Schedule of Deposit Contractual Maturities, Excluding Demand and Savings | At December 31, 2014, the contractual maturities of time deposits are summarized as follows: | |||||||
Certificates and Other Time Deposits | ||||||||
2015 | $ | 469,352 | ||||||
2016 | 256,921 | |||||||
2017 | 144,348 | |||||||
2018 | 87,234 | |||||||
2019 | 52,792 | |||||||
After 2019 | 106,848 | |||||||
$ | 1,117,495 | |||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Schedule of Debt | The following table summarizes the Corporation's borrowings as of December 31, 2014 and 2013: | |||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Federal funds purchased | $ | 15,381 | $ | 125,645 | ||||||||
Securities sold under repurchase agreements | 124,539 | 148,672 | ||||||||||
Federal Home Loan Bank advances | 145,264 | 122,140 | ||||||||||
Subordinated debentures and term loans | 126,810 | 126,807 | ||||||||||
Total Borrowings | $ | 411,994 | $ | 523,264 | ||||||||
Schedule of Maturities of Long-term Debt | Maturities of securities sold under repurchase agreements; Federal Home Loan Bank Advances, subordinated debentures and term loans as of December 31, 2014, are as follows: | |||||||||||
Maturities in Years Ending December 31: | Securities Sold | Federal Home | Subordinated | |||||||||
Under Repurchase Agreements | Loan Bank | Debentures and | ||||||||||
Advances | Term Loans | |||||||||||
2015 | $ | 124,539 | $ | 30,780 | $ | 108 | ||||||
2016 | 41,225 | |||||||||||
2017 | 15,018 | |||||||||||
2018 | 25,637 | |||||||||||
2019 | 12,503 | |||||||||||
After 2019 | 20,101 | 126,702 | ||||||||||
$ | 124,539 | $ | 145,264 | $ | 126,810 | |||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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 December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | Balance Sheet Location | Fair | |||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 137 | Other Assets | $ | 1,162 | Other Liabilities | $ | 2,650 | Other Liabilities | $ | 1,021 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||
Interest rate contracts | Other Assets | $ | 3,730 | Other Assets | $ | 2,847 | Other Liabilities | $ | 3,887 | Other Liabilities | $ | 2,932 | ||||||||||||
Effect of Derivative Financial Instruments on Income Statement | The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||
Derivatives Not | Location of Gain | Amount of Gain (Loss) | Amount of Gain (Loss) | Amount of Gain (Loss) | ||||||||||||||||||||
Designated as Hedging | (Loss) Recognized in | Recognized in Income on | Recognized in Income on | Recognized in Income on | ||||||||||||||||||||
Instruments under | Income on Derivative | Derivative for the Year Ended December 31, 2014 | Derivative for the Year Ended December 31, 2013 | Derivative for the Year Ended December 31, 2012 | ||||||||||||||||||||
FASB ASC 815-10 | ||||||||||||||||||||||||
Interest rate contracts | Other income | $ | (73 | ) | $ | 247 | $ | (79 | ) | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative | Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) | Amount of Loss Reclassified from Other Comprehensive Income into Income | |||||||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||||||||
For the Year Ended | For the Year Ended | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Interest rate products | $ | (3,996 | ) | $ | 2,374 | Interest expense | $ | (1,411 | ) | $ | (935 | ) | $ | (217 | ) | |||||||||
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2014 and 2013. | |||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2014 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available for sale securities: | ||||||||||||||||
U.S. Government-sponsored agency securities | $ | 109 | $ | 109 | ||||||||||||
State and municipal | 228,593 | 221,982 | $ | 6,611 | ||||||||||||
U.S. Government-sponsored mortgage-backed securities | 319,104 | 319,104 | ||||||||||||||
Corporate obligations | 31 | 31 | ||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||
Interest rate swap asset | 3,730 | 3,730 | ||||||||||||||
Interest rate cap | 137 | 137 | ||||||||||||||
Interest rate swap liability | 6,537 | 6,537 | ||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2013 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Available for sale securities: | ||||||||||||||||
U.S. Treasury | $ | 15,973 | $ | 15,973 | ||||||||||||
U.S. Government-sponsored agency securities | 3,545 | 3,545 | ||||||||||||||
State and municipal | 230,987 | 223,752 | $ | 7,235 | ||||||||||||
U.S. Government-sponsored mortgage-backed securities | 281,252 | 281,252 | ||||||||||||||
Corporate obligations | 2,738 | 2,738 | ||||||||||||||
Equity securities | 1,706 | 1,702 | 4 | |||||||||||||
Interest rate swap asset | 3,619 | 3,619 | ||||||||||||||
Interest rate cap | 390 | 390 | ||||||||||||||
Interest rate swap liability | 3,953 | 3,953 | ||||||||||||||
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 accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2014 and 2013. | |||||||||||||||
Available for Sale Securities | ||||||||||||||||
For The Year Ended | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Beginning Balance | $ | 9,977 | $ | 18,328 | ||||||||||||
Included in other comprehensive income | 3,656 | 1,330 | ||||||||||||||
Purchases, issuances, and settlements | 7,590 | |||||||||||||||
Transfers in/(out) of Level 3 | (16,434 | ) | ||||||||||||||
Principal payments | (6,987 | ) | (837 | ) | ||||||||||||
Ending balance | $ | 6,646 | $ | 9,977 | ||||||||||||
Transfer Between Levels 1, 2 and 3 and Reasons For Transfers | TRANSFERS BETWEEN LEVELS | |||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | Reason for Transfer | ||||||||||||
Transfers to/(from) Level: | ||||||||||||||||
Available for sale securities | $ | (350 | ) | $ | 350 | Selected state and municipal securities were transferred from Level 2 to Level 3 due to limited availability of similar securities in active markets. | ||||||||||
Available for sale securities transferred to held to maturity | $ | (16,784 | ) | Selected state and municipal securities were transferred from available for sale to held to maturity. These securities are valued at amortized cost and are no longer classified within the fair value hierarchy. | ||||||||||||
Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in Consolidated Condensed Balance Sheets | Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2014 and 2013. | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2014 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans (collateral dependent) | $ | 17,134 | $ | 17,134 | ||||||||||||
Other real estate owned | $ | 5,155 | $ | 5,155 | ||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in Active | Significant Other Observable Inputs | Significant | ||||||||||||||
Markets for Identical Assets | Unobservable Inputs | |||||||||||||||
December 31, 2013 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Impaired Loans (collateral dependent) | $ | 12,117 | $ | 12,117 | ||||||||||||
Other real estate owned | $ | 6,877 | $ | 6,877 | ||||||||||||
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 December 31, 2014 and 2013. | |||||||||||||||
December 31, 2014 | Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted-Average) | ||||||||||||
State and municipal securities | $ | 6,611 | Discounted cash flow | Maturity Call Date | 1 month to 15 years | |||||||||||
US Muni BQ curve | A- to BBB- | |||||||||||||||
Discount rate | .90% - 5% | |||||||||||||||
Corporate obligations and Equity securities | $ | 35 | Discounted cash flow | Risk free rate | 3 month LIBOR | |||||||||||
plus Premium for illiquidity | plus 200 bps | |||||||||||||||
Impaired loans (collateral dependent) | $ | 17,134 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | 0% - 50% (3%) | |||||||||||
Other real estate owned | $ | 5,155 | Appraisals | Discount to reflect current market conditions | 0% - 20% (7%) | |||||||||||
December 31, 2013 | Fair Value | Valuation Technique | Unobservable Inputs | Range (Weighted-Average) | ||||||||||||
State and municipal securities | $ | 7,235 | Discounted cash flow | Maturity Call Date | 1 month to 15 years | |||||||||||
US Muni BQ curve | A- to BBB- | |||||||||||||||
Discount rate | 1% - 5% | |||||||||||||||
Corporate obligations and Equity securities | $ | 2,742 | Discounted cash flow | Risk free rate | 3 month LIBOR | |||||||||||
plus Premium for illiquidity | plus 200 bps | |||||||||||||||
Impaired loans (collateral dependent) | $ | 12,117 | Collateral based measurements | Discount to reflect current market conditions and ultimate collectability | 0% - 50% (3%) | |||||||||||
Other real estate owned | $ | 6,877 | Appraisals | Discount to reflect current market conditions | 0% - 20% (2%) | |||||||||||
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 December 31, 2014 and 2013. | |||||||||||||||
2014 | ||||||||||||||||
Carrying | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets at December 31: | ||||||||||||||||
Cash and cash equivalents | $ | 118,616 | $ | 118,616 | ||||||||||||
Interest-bearing time deposits | 47,520 | 47,520 | ||||||||||||||
Investment securities available for sale | 549,543 | $ | 542,897 | $ | 6,646 | |||||||||||
Investment securities held to maturity | 631,088 | 614,457 | 33,266 | |||||||||||||
Loans held for sale | 7,235 | 7,235 | ||||||||||||||
Loans | 3,860,901 | 3,810,912 | ||||||||||||||
FRB and FHLB stock | 41,353 | 41,353 | ||||||||||||||
Interest rate swap asset | 3,867 | 3,867 | ||||||||||||||
Interest receivable | 19,984 | 19,984 | ||||||||||||||
Liabilities at December 31: | ||||||||||||||||
Deposits | $ | 4,640,694 | $ | 3,523,199 | $ | 1,099,610 | ||||||||||
Borrowings: | ||||||||||||||||
Federal funds purchased | 15,381 | 15,381 | ||||||||||||||
Securities sold under repurchase agreements | 124,539 | 124,539 | ||||||||||||||
FHLB Advances | 145,264 | 146,669 | ||||||||||||||
Subordinated debentures and term loans | 126,810 | 92,802 | ||||||||||||||
Interest rate swap liability | 6,537 | 6,537 | ||||||||||||||
Interest payable | 3,201 | 3,201 | ||||||||||||||
2013 | ||||||||||||||||
Carrying | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||
Amount | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets at December 31: | ||||||||||||||||
Cash and cash equivalents | $ | 109,434 | $ | 109,434 | ||||||||||||
Interest-bearing time deposits | 55,069 | 55,069 | ||||||||||||||
Investment securities available for sale | 536,201 | $ | 526,224 | $ | 9,977 | |||||||||||
Investment securities held to maturity | 559,378 | 525,998 | 34,849 | |||||||||||||
Loans held for sale | 5,331 | 5,331 | ||||||||||||||
Loans | 3,564,539 | 3,506,615 | ||||||||||||||
FRB and FHLB stock | 38,990 | 38,990 | ||||||||||||||
Interest rate swap asset | 4,009 | 4,009 | ||||||||||||||
Interest receivable | 18,672 | 18,672 | ||||||||||||||
Liabilities at December 31: | ||||||||||||||||
Deposits | $ | 4,231,468 | $ | 3,082,117 | $ | 934,937 | ||||||||||
Borrowings: | ||||||||||||||||
Federal funds purchased | 125,645 | 125,645 | ||||||||||||||
Securities sold under repurchase agreements | 148,672 | 148,852 | ||||||||||||||
FHLB Advances | 122,140 | 122,962 | ||||||||||||||
Subordinated debentures and term loans | 126,807 | 82,607 | ||||||||||||||
Interest rate swap liability | 3,953 | 3,953 | ||||||||||||||
Interest payable | 1,771 | 1,771 | ||||||||||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Schedule of Fair Value, Off-balance Sheet Risks | Financial instruments, whose contract amount represents credit risk as of December 31, were as follows: | |||||||
2014 | 2013 | |||||||
Amounts of commitments: | ||||||||
Loan commitments to extend credit | $ | 1,617,552 | $ | 1,216,470 | ||||
Standby letters of credit | $ | 52,655 | $ | 41,508 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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 December 31, 2014 and 2013: | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
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, 2013 | $ | 1,566 | $ | (1,847 | ) | $ | (501 | ) | $ | (5,628 | ) | $ | (6,410 | ) | ||||||
Other comprehensive income before reclassifications | 14,860 | 1,847 | (2,599 | ) | (7,580 | ) | 6,528 | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2,328 | ) | 918 | (338 | ) | (1,748 | ) | |||||||||||||
Period change | 12,532 | 1,847 | (1,681 | ) | (7,918 | ) | 4,780 | |||||||||||||
Balance at December 31, 2014 | $ | 14,098 | $ | — | $ | (2,182 | ) | $ | (13,546 | ) | $ | (1,630 | ) | |||||||
Balance at December 31, 2012 | $ | 17,904 | $ | (3,272 | ) | $ | (2,652 | ) | $ | (17,479 | ) | $ | (5,499 | ) | ||||||
Other comprehensive income before reclassifications | (16,021 | ) | 1,425 | 1,543 | 10,704 | (2,349 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income | (317 | ) | 608 | 1,147 | 1,438 | |||||||||||||||
Period change | (16,338 | ) | 1,425 | 2,151 | 11,851 | (911 | ) | |||||||||||||
Balance at December 31, 2013 | $ | 1,566 | $ | (1,847 | ) | $ | (501 | ) | $ | (5,628 | ) | $ | (6,410 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | 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 twelve months ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Year Ended December 31, | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | 2014 | 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 | $ | 3,581 | $ | 487 | $ | 2,389 | Other income - net realized gains on sales of available for sale securities | |||||||||||||
Related income tax expense | (1,253 | ) | (170 | ) | (835 | ) | Income tax expense | |||||||||||||
$ | 2,328 | $ | 317 | $ | 1,554 | |||||||||||||||
Unrealized gains (losses) on cash flow hedges (2) | ||||||||||||||||||||
Interest rate contracts | $ | (1,411 | ) | $ | (935 | ) | $ | (217 | ) | Interest expense - subordinated debentures and term loans | ||||||||||
Related income tax benefit | 493 | 327 | 76 | Income tax expense | ||||||||||||||||
$ | (918 | ) | $ | (608 | ) | $ | (141 | ) | ||||||||||||
Unrealized gains (losses) on defined benefit plans | ||||||||||||||||||||
Amortization of net loss and prior service costs | $ | 520 | $ | (1,765 | ) | $ | 100 | Other expenses - salaries and employee benefits | ||||||||||||
Related income tax benefit (expense) | (182 | ) | 618 | (35 | ) | Income tax expense | ||||||||||||||
$ | 338 | $ | (1,147 | ) | $ | 65 | ||||||||||||||
Total reclassifications for the period, net of tax | $ | 1,748 | $ | (1,438 | ) | 1,478 | ||||||||||||||
(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 5. 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 13. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. |
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual and required capital amounts and ratios are listed below. | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
Required For | Required For | |||||||||||||||||||||||||||
Actual | Adequate Capital | Actual | Adequate Capital | |||||||||||||||||||||||||
December 31, | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Total Capital (to Risk-weighted Assets) | ||||||||||||||||||||||||||||
First Merchants Corporation | $ | 685,507 | 15.34 | % | $ | 357,581 | 8 | % | $ | 599,966 | 14.54 | % | $ | 330,107 | 8 | % | ||||||||||||
First Merchants Bank | 653,169 | 14.64 | 356,884 | 8 | 599,272 | 14.56 | 329,344 | 8 | ||||||||||||||||||||
Tier I Capital (to Risk-weighted Assets) | ||||||||||||||||||||||||||||
First Merchants Corporation | $ | 564,535 | 12.63 | % | $ | 178,791 | 4 | % | $ | 483,186 | 11.71 | % | $ | 165,053 | 4 | % | ||||||||||||
First Merchants Bank | 597,305 | 13.39 | 178,442 | 4 | 547,655 | 13.3 | 164,672 | 4 | ||||||||||||||||||||
Tier I Capital (to Average Assets) | ||||||||||||||||||||||||||||
First Merchants Corporation | $ | 564,535 | 10.15 | % | $ | 222,533 | 4 | % | $ | 483,186 | 10.2 | % | $ | 189,485 | 4 | % | ||||||||||||
First Merchants Bank | 597,305 | 10.56 | 226,339 | 4 | 547,655 | 11.58 | 189,095 | 4 | ||||||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||
Assumptions Used In 2012 Black Scholes Model | The estimated fair value of the stock options granted during 2014, 2013, and 2012 was calculated using a Black-Scholes option pricing model. The following summarizes the assumptions used in the Black-Scholes model: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 2.41 | % | 1.25 | % | 1.36 | % | ||||||
Expected price volatility | 45.05 | % | 45.68 | % | 46.22 | % | ||||||
Dividend yield | 2.73 | % | 2.96 | % | 3.29 | % | ||||||
Forfeiture rate | 5.46 | % | 4.73 | % | 4.77 | % | ||||||
Weighted-average expected life, until exercise | 7.74 | years | 7.27 | years | 7.2 | years | ||||||
Components of Share Based Compensation Awards | The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense: | |||||||||||
Year Ended | Year Ended | Year Ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Stock and ESPP Options | ||||||||||||
Pre-tax compensation expense | $ | 237 | $ | 253 | $ | 284 | ||||||
Income tax benefit | (47 | ) | (16 | ) | (23 | ) | ||||||
Stock and ESPP option expense, net of income taxes | $ | 190 | $ | 237 | $ | 261 | ||||||
Restricted Stock Awards | ||||||||||||
Pre-tax compensation expense | $ | 1,940 | $ | 1,520 | $ | 1,208 | ||||||
Income tax benefit | (679 | ) | (531 | ) | (428 | ) | ||||||
Restricted stock awards expense, net of income taxes | $ | 1,261 | $ | 989 | $ | 780 | ||||||
Total Share-Based Compensation: | ||||||||||||
Pre-tax compensation expense | $ | 2,177 | $ | 1,773 | $ | 1,492 | ||||||
Income tax benefit | (726 | ) | (547 | ) | (451 | ) | ||||||
Total share-based compensation expense, net of income taxes | $ | 1,451 | $ | 1,226 | $ | 1,041 | ||||||
Stock Option Activity Under Stock Option Plans | Stock option activity under the Corporation's stock option plans, as of December 31, 2014, and changes during the year ended December 31, 2014, were as follows: | |||||||||||
Number of | Weighted-Average | Weighted Average | Aggregate | |||||||||
Shares | Exercise Price | Remaining Contractual | Intrinsic Value | |||||||||
Term (in Years) | ||||||||||||
Outstanding at January 1, 2014 | 958,786 | $ | 21.32 | |||||||||
Granted | 13,500 | $ | 21.65 | |||||||||
Exercised | (41,249 | ) | $ | 12.21 | ||||||||
Canceled | (193,106 | ) | $ | 24.42 | ||||||||
Outstanding December 31, 2014 | 737,931 | $ | 20.99 | 3.08 | 2,645,356 | |||||||
Vested and Expected to Vest at December 31, 2014 | 737,931 | $ | 20.99 | 3.08 | 2,645,356 | |||||||
Exercisable at December 31, 2014 | 715,431 | $ | 21.05 | 2.9 | 2,563,636 | |||||||
Unvested RSAs Outstanding | The following table summarizes information on unvested RSAs outstanding as of December 31, 2014: | |||||||||||
Number of | Weighted-Average | |||||||||||
Shares | Grant Date Fair Value | |||||||||||
Unvested RSAs at January 1, 2014 | 429,002 | $ | 12.51 | |||||||||
Granted | 98,611 | $ | 20.54 | |||||||||
Forfeited | (9,717 | ) | $ | 15.78 | ||||||||
Vested | (132,446 | ) | $ | 9.16 | ||||||||
Unvested RSAs at December 31, 2014 | 385,450 | $ | 15.65 | |||||||||
Pension_and_Other_Post_Retirem1
Pension and Other Post Retirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Schedule of Changes in Benefit Obligation, Changes in Plan Assets and the Funded Status of the Pension Plan and Other Post Retirement Benefit Plans | The table below sets forth the plans’ funded status and amounts recognized in the consolidated balance sheets at December 31, using measurement dates of December 31, 2014 and 2013. | |||||||||||||||
2014 | 2013 | |||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||
Benefit obligation at beginning of year | $ | 62,270 | $ | 69,166 | ||||||||||||
Service cost | 73 | 131 | ||||||||||||||
Interest cost | 3,235 | 2,670 | ||||||||||||||
Actuarial loss (gain) | 12,968 | (5,597 | ) | |||||||||||||
Benefits paid | (5,541 | ) | (4,100 | ) | ||||||||||||
Net transfers in from CFS acquisition | 7,645 | |||||||||||||||
Benefit obligation at end of year | $ | 80,650 | $ | 62,270 | ||||||||||||
Change in Plan Assets: | ||||||||||||||||
Fair value of plan assets at beginning of year | $ | 69,871 | $ | 62,865 | ||||||||||||
Actual return on plan assets | 5,232 | 10,610 | ||||||||||||||
Employer contributions | 504 | 496 | ||||||||||||||
Benefits paid | (5,541 | ) | (4,100 | ) | ||||||||||||
CFS acquisition | 7,073 | |||||||||||||||
End of year | 77,139 | 69,871 | ||||||||||||||
Funded status at end of year | $ | (3,511 | ) | $ | 7,601 | |||||||||||
Assets and Liabilities Recognized in the Balance Sheets: | ||||||||||||||||
Deferred tax asset | $ | 8,541 | $ | 4,266 | ||||||||||||
Assets | $ | 1,329 | $ | 12,383 | ||||||||||||
Liabilities | $ | 4,840 | $ | 4,782 | ||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic (Benefit) Cost Consist of: | ||||||||||||||||
Accumulated loss | $ | (15,863 | ) | $ | (7,922 | ) | ||||||||||
Prior service credit | (346 | ) | (28 | ) | ||||||||||||
$ | (16,209 | ) | $ | (7,950 | ) | |||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets is included in the table below. | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Projected benefit obligation | $ | 4,840 | $ | 4,782 | ||||||||||||
Accumulated benefit obligation | $ | 4,840 | $ | 4,782 | ||||||||||||
Fair value of plan assets | ||||||||||||||||
Schedule of Net Periodic Pension Costs | The following table shows the components of net periodic pension costs: | |||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||
Service cost | $ | 73 | $ | 131 | $ | 161 | ||||||||||
Interest cost | 3,235 | 2,670 | 2,990 | |||||||||||||
Expected return on plan assets | (4,467 | ) | (4,265 | ) | (4,216 | ) | ||||||||||
Amortization of prior service costs | 81 | 25 | 25 | |||||||||||||
Amortization of net loss | 478 | 2,131 | 2,207 | |||||||||||||
Net periodic pension (benefit) cost | $ | (600 | ) | $ | 692 | $ | 1,167 | |||||||||
Schedule of Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income, Net of Tax | Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||||||||
Net periodic pension (benefit) cost | $ | (600 | ) | $ | 692 | $ | 1,167 | |||||||||
Net gain (loss) | (12,203 | ) | 11,942 | (1,242 | ) | |||||||||||
Amortization of loss | 478 | 2,131 | 2,207 | |||||||||||||
Amortization of prior service cost | 81 | 25 | 25 | |||||||||||||
Total recognized in other comprehensive income (loss) | (11,644 | ) | 14,098 | 990 | ||||||||||||
Total recognized in net periodic pension cost and other comprehensive income (loss) | $ | (11,044 | ) | $ | 13,406 | $ | (177 | ) | ||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated net loss and transition obligation for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic pension cost over the next fiscal year are: | |||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||||||
Amortization of net loss | $ | (1,770 | ) | $ | (533 | ) | $ | (2,158 | ) | |||||||
Amortization of prior service cost | (64 | ) | (25 | ) | (25 | ) | ||||||||||
Total | $ | (1,834 | ) | $ | (558 | ) | $ | (2,183 | ) | |||||||
Schedule of Assumptions Used | Significant assumptions include: | |||||||||||||||
31-Dec-14 | 31-Dec-13 | December 31, 2012 | ||||||||||||||
Weighted-average Assumptions Used to Determine Benefit Obligation: | ||||||||||||||||
Discount rate | 4 | % | 4.8 | % | 4 | % | ||||||||||
Rate of compensation increase for accruing active participants | 3 | % | 3 | % | 3 | % | ||||||||||
Weighted-average Assumptions Used to Determine Cost: | ||||||||||||||||
Discount rate | 4.8 | % | 4 | % | 4.5 | % | ||||||||||
Expected return on plan assets | 6 | % | 7 | % | 7 | % | ||||||||||
Rate of compensation increase for accruing active participants | 3 | % | 3 | % | 4 | % | ||||||||||
Schedule of Expected Benefit Payments | The minimum contribution required in 2015 will likely be zero but the Corporation may decide to make a discretionary contribution during the year. | |||||||||||||||
2015 | $ | 4,761 | ||||||||||||||
2016 | 4,757 | |||||||||||||||
2017 | 4,751 | |||||||||||||||
2018 | 4,783 | |||||||||||||||
2019 | 4,997 | |||||||||||||||
After 2019 | 25,125 | |||||||||||||||
$ | 49,174 | |||||||||||||||
Schedule of Allocation of Plan Assets | Plan assets are re-balanced quarterly. At December 31, 2014 and 2013, plan assets by category are as follows: | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Actual | Target | Actual | Target | |||||||||||||
Cash and cash equivalents | 2.6 | % | 2 | % | 2.7 | % | 2 | % | ||||||||
Equity securities | 58.7 | 60 | 62.2 | 60 | ||||||||||||
Debt securities | 36.5 | 36 | 33.2 | 36 | ||||||||||||
Alternative investments | 2.2 | 2 | 1.9 | 2 | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % | |||||||||
There are no assets classified within Level 3 of the hierarchy at December 31, 2014 and 2013. | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other Observable Inputs | Significant | ||||||||||||||
Active Markets for | Unobservable | |||||||||||||||
Identical Assets | Inputs | |||||||||||||||
December 31, 2014 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash & Cash Equivalents | $ | 2,032 | $ | 2,032 | ||||||||||||
Corporate Bonds and Notes | 9,384 | 9,384 | ||||||||||||||
Government Agency and Municipal Bonds and Notes | 8,252 | $ | 8,252 | |||||||||||||
Certificates of Deposit | 1,001 | 1,001 | ||||||||||||||
Party-in-Interest Investments | ||||||||||||||||
Common Stock | 1,376 | 1,376 | ||||||||||||||
Common Bond Fund | 4,615 | 4,615 | ||||||||||||||
Common Equity Fund | 5,858 | 5,858 | ||||||||||||||
Mutual Funds | ||||||||||||||||
Taxable Bond | 4,987 | 4,987 | ||||||||||||||
Large Cap Equity | 21,185 | 21,185 | ||||||||||||||
Mid Cap Equity | 9,434 | 9,434 | ||||||||||||||
Small Cap Equity | 3,872 | 3,872 | ||||||||||||||
International Equity | 3,474 | 3,474 | ||||||||||||||
Specialty Alternative Equity | 1,669 | 1,669 | ||||||||||||||
$ | 77,139 | $ | 57,413 | $ | 19,726 | $ | — | |||||||||
Fair Value Measurements Using | ||||||||||||||||
Quoted Prices in | Significant Other Observable Inputs | Significant | ||||||||||||||
Active Markets for | Unobservable | |||||||||||||||
Identical Assets | Inputs | |||||||||||||||
December 31, 2013 | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Cash & Cash Equivalents | $ | 1,864 | $ | 1,864 | ||||||||||||
Corporate Bonds and Notes | 6,076 | 6,076 | ||||||||||||||
Government Agency and Municipal Bonds and Notes | 8,263 | $ | 8,263 | |||||||||||||
Certificates of Deposit | 607 | 607 | ||||||||||||||
Party-in-Interest Investments | ||||||||||||||||
Common Stock | 1,375 | 1,375 | ||||||||||||||
Common Bond Fund | 5,318 | 5,318 | ||||||||||||||
Common Equity Fund | 4,507 | 4,507 | ||||||||||||||
Mutual Funds | ||||||||||||||||
Taxable Bond | 3,901 | 3,901 | ||||||||||||||
Large Cap Equity | 20,617 | 20,617 | ||||||||||||||
Mid Cap Equity | 8,721 | 8,721 | ||||||||||||||
Small Cap Equity | 3,584 | 3,584 | ||||||||||||||
International Equity | 3,727 | 3,727 | ||||||||||||||
Specialty Alternative Equity | 1,311 | 1,311 | ||||||||||||||
$ | 69,871 | $ | 51,176 | $ | 18,695 | $ | — | |||||||||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income tax | The reconciliation between the statutory and actual income tax expense (benefit) is summarized in the following table for the years indicated: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Income Tax Expense for the Year Ended December 31: | ||||||||||||
Currently Payable: | ||||||||||||
Federal | $ | (1,661 | ) | $ | 738 | $ | (23 | ) | ||||
State | ||||||||||||
Deferred: | ||||||||||||
Federal | 22,541 | 13,939 | 15,890 | |||||||||
State | 510 | |||||||||||
Total Income Tax Expense | $ | 21,390 | $ | 14,677 | $ | 15,867 | ||||||
Reconciliation of Federal Statutory to Actual Tax Expense: | ||||||||||||
Federal Statutory Income Tax at 35% | $ | 28,543 | $ | 20,722 | $ | 21,347 | ||||||
Tax-exempt Interest Income | (5,148 | ) | (3,923 | ) | (3,716 | ) | ||||||
Stock Compensation | 36 | 50 | 76 | |||||||||
Earnings on Life Insurance | (1,271 | ) | (905 | ) | (1,187 | ) | ||||||
Tax Credits | (911 | ) | (857 | ) | (73 | ) | ||||||
Other | 141 | (410 | ) | (580 | ) | |||||||
Actual Tax Expense | $ | 21,390 | $ | 14,677 | $ | 15,867 | ||||||
Deferred Tax Assets and Liabilities | The tax effects of temporary differences related to deferred taxes shown on the balance sheets were: | |||||||||||
2014 | 2013 | |||||||||||
Deferred Tax Asset at December 31: | ||||||||||||
Assets: | ||||||||||||
Differences in Accounting for Loan Losses | $ | 26,665 | $ | 28,064 | ||||||||
Differences in Accounting for Loan Fees | 747 | 736 | ||||||||||
Differences in Accounting for Loans and Securities | 9,910 | 13,579 | ||||||||||
Deferred Compensation | 5,234 | 5,479 | ||||||||||
Difference in Accounting for Pensions and Other Employee Benefits | 1,084 | |||||||||||
Federal & State Income Tax Loss Carryforward and Credits | 23,977 | 24,981 | ||||||||||
Net Unrealized Loss on Securities Available for Sale | 151 | |||||||||||
Other | 8,535 | 12,828 | ||||||||||
Total Assets | 76,152 | 85,818 | ||||||||||
Liabilities: | ||||||||||||
Differences in Depreciation Methods | 8,220 | 8,008 | ||||||||||
Difference in Accounting for Pensions and Other Employee Benefits | 1,096 | |||||||||||
State Income Tax | 591 | 354 | ||||||||||
Net Unrealized Gain on Securities Available for Sale | 7,591 | |||||||||||
Gain on FDIC Modified Whole Bank Transaction | 1,694 | 2,147 | ||||||||||
Other | 1,096 | 1,257 | ||||||||||
Total Liabilities | 19,192 | 12,862 | ||||||||||
Net Deferred Tax Asset Before Valuation Allowance | 56,960 | 72,956 | ||||||||||
Valuation allowance: | ||||||||||||
Beginning Balance | (17,171 | ) | (13,859 | ) | ||||||||
Decrease/(Increase) During the Year | (397 | ) | (3,312 | ) | ||||||||
Ending Balance | (17,568 | ) | (17,171 | ) | ||||||||
Net Deferred Tax Asset | $ | 39,392 | $ | 55,785 | ||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||
Net Income Per Share | The following table reconciles basic and diluted net income per share for the years indicated: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Weighted-Average Shares | Weighted-Average Shares | Weighted-Average Shares | |||||||||||||||||||||||||||||||
Basic net income per share: | $ | 60,162 | $ | 44,530 | $ | 45,122 | |||||||||||||||||||||||||||
Preferred stock dividends | (2,380 | ) | (4,539 | ) | |||||||||||||||||||||||||||||
Net income available to common stockholders | 60,162 | 36,266,356 | $ | 1.66 | 42,150 | 29,731,420 | $ | 1.42 | 40,583 | 28,632,915 | $ | 1.42 | |||||||||||||||||||||
Effect of dilutive stock options and warrants | 288,253 | 276,960 | 213,769 | ||||||||||||||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 60,162 | 36,554,609 | $ | 1.65 | $ | 42,150 | 30,008,380 | $ | 1.41 | $ | 40,583 | 28,846,684 | $ | 1.41 | ||||||||||||||||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) | The following table sets forth certain quarterly results for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||||||||
Interest income | $ | 51,009 | $ | 51,527 | $ | 53,290 | $ | 53,053 | $ | 43,738 | $ | 40,653 | $ | 40,736 | $ | 45,707 | ||||||||||||||||
Interest expense | 5,117 | 5,408 | 5,424 | 5,893 | 4,280 | 4,003 | 3,714 | 4,572 | ||||||||||||||||||||||||
Net interest income | 45,892 | 46,119 | 47,866 | 47,160 | 39,458 | 36,650 | 37,022 | 41,135 | ||||||||||||||||||||||||
Provision for loan losses | 1,600 | 960 | 2,102 | 1,997 | 1,533 | 1,016 | ||||||||||||||||||||||||||
Net interest income after provision for loan losses | 45,892 | 46,119 | 46,266 | 46,200 | 37,356 | 34,653 | 35,489 | 40,119 | ||||||||||||||||||||||||
Non-interest income | 15,186 | 15,933 | 18,294 | 16,254 | 13,877 | 14,059 | 11,800 | 15,073 | ||||||||||||||||||||||||
Non-interest expense | 43,089 | 41,250 | 42,576 | 41,677 | 34,700 | 33,742 | 34,219 | 40,558 | ||||||||||||||||||||||||
Income before income tax expense | 17,989 | 20,802 | 21,984 | 20,777 | 16,533 | 14,970 | 13,070 | 14,634 | ||||||||||||||||||||||||
Income tax expense | 4,369 | 5,642 | 5,862 | 5,517 | 4,668 | 4,155 | 2,667 | 3,187 | ||||||||||||||||||||||||
Net income | 13,620 | 15,160 | 16,122 | 15,260 | 11,865 | 10,815 | 10,403 | 11,447 | ||||||||||||||||||||||||
Preferred stock dividends | (857 | ) | (852 | ) | (430 | ) | (241 | ) | ||||||||||||||||||||||||
Net income available to common stockholders | $ | 13,620 | $ | 15,160 | $ | 16,122 | $ | 15,260 | $ | 11,008 | $ | 9,963 | $ | 9,973 | $ | 11,206 | ||||||||||||||||
Basic EPS | $ | 0.38 | $ | 0.42 | $ | 0.45 | $ | 0.41 | $ | 0.38 | $ | 0.35 | $ | 0.35 | $ | 0.34 | ||||||||||||||||
Diluted EPS | $ | 0.38 | $ | 0.41 | $ | 0.45 | $ | 0.41 | $ | 0.38 | $ | 0.34 | $ | 0.35 | $ | 0.34 | ||||||||||||||||
Average Shares Outstanding: | ||||||||||||||||||||||||||||||||
Basic | 35,956,436 | 36,026,763 | 36,054,867 | 37,018,014 | 28,716,987 | 28,783,407 | 28,806,809 | 32,597,145 | ||||||||||||||||||||||||
Diluted | 36,260,624 | 36,294,149 | 36,328,981 | 37,323,276 | 28,971,238 | 29,023,513 | 29,081,472 | 32,912,605 | ||||||||||||||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information (parent company only) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Schedule Of Parent Company Information Balance Sheet | Condensed Balance Sheets | |||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Assets | ||||||||||||
Cash | $ | 36,044 | $ | 13,228 | ||||||||
Investment in subsidiaries | 820,123 | 745,818 | ||||||||||
Goodwill | 448 | 448 | ||||||||||
Other assets | 6,281 | 8,695 | ||||||||||
Total assets | $ | 862,896 | $ | 768,189 | ||||||||
Liabilities | ||||||||||||
Borrowings | $ | 126,702 | $ | 126,702 | ||||||||
Other liabilities | 9,367 | 6,564 | ||||||||||
Total liabilities | 136,069 | 133,266 | ||||||||||
Stockholders' equity | 726,827 | 634,923 | ||||||||||
Total liabilities and stockholders' equity | $ | 862,896 | $ | 768,189 | ||||||||
Schedule Of Parent Company Information Income Statement | Condensed Statements of Income and Comprehensive Income | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | ||||||||||
Income | ||||||||||||
Dividends from subsidiaries | $ | 53,231 | $ | 63,732 | $ | 30,096 | ||||||
Other income | 538 | 45 | 85 | |||||||||
Total income | 53,769 | 63,777 | 30,181 | |||||||||
Expenses | ||||||||||||
Interest expense | 6,616 | 3,531 | 4,655 | |||||||||
Salaries and employee benefits | 3,128 | 3,284 | 3,194 | |||||||||
Net occupancy and equipment expenses | 442 | 258 | 312 | |||||||||
Telephone expenses | 27 | 42 | 30 | |||||||||
Postage and courier expenses | 1 | |||||||||||
Other expenses | 1,972 | 2,617 | 1,502 | |||||||||
Total expenses | 12,185 | 9,732 | 9,694 | |||||||||
Income before income tax benefit and equity in undistributed income of subsidiaries | 41,584 | 54,045 | 20,487 | |||||||||
Income tax benefit | 3,999 | 3,153 | 3,316 | |||||||||
Income before equity in undistributed income of subsidiaries | 45,583 | 57,198 | 23,803 | |||||||||
Equity in undistributed (distributions in excess of) income of subsidiaries | 14,579 | (12,668 | ) | 21,319 | ||||||||
Net income | 60,162 | 44,530 | 45,122 | |||||||||
Preferred stock dividends and discount accretion | (2,380 | ) | (4,539 | ) | ||||||||
Net income available to common stockholders | $ | 60,162 | $ | 42,150 | $ | 40,583 | ||||||
Net income | $ | 60,162 | $ | 44,530 | $ | 45,122 | ||||||
Other comprehensive income (loss) | 4,780 | (911 | ) | (1,897 | ) | |||||||
Comprehensive income | $ | 64,942 | $ | 43,619 | $ | 43,225 | ||||||
Schedule Of Parent Company Information Cash Flow | Condensed Statement of Cash Flows | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash Flow From Operating Activities: | ||||||||||||
Net income | $ | 60,162 | $ | 44,530 | $ | 45,122 | ||||||
Adjustments to Reconcile Net Income to Net Cash: | ||||||||||||
Share-based compensation | 887 | 778 | 632 | |||||||||
Distributions in excess of (equity in undistributed) income of subsidiaries | (14,579 | ) | 12,668 | (21,319 | ) | |||||||
Net Change in: | ||||||||||||
Other assets | 2,425 | (1,354 | ) | 1,902 | ||||||||
Other liabilities | 1,466 | (8,438 | ) | 1,122 | ||||||||
Investment in subsidiaries - operating activities | (4,517 | ) | 12,991 | (1,755 | ) | |||||||
Net cash provided by operating activities | $ | 45,844 | $ | 61,175 | $ | 25,704 | ||||||
Cash Flow From Investing Activities: | ||||||||||||
Investment in subsidiaries | $ | (126 | ) | |||||||||
Net cash paid in acquisition | $ | (12,832 | ) | |||||||||
Other | $ | 240 | ||||||||||
Net cash provided (used) in investing activities | $ | (12,832 | ) | $ | 240 | $ | (126 | ) | ||||
Cash Flow From Financing Activities: | ||||||||||||
Cash dividends | $ | (10,694 | ) | $ | (7,992 | ) | $ | (7,442 | ) | |||
Repayment of borrowings | (55,000 | ) | (4,124 | ) | ||||||||
Proceeds from issuance of long-term debt | 70,000 | |||||||||||
Preferred stock redemption under small business lending fund | (90,783 | ) | ||||||||||
Stock issued under employee benefit plans | 478 | 479 | 449 | |||||||||
Stock issued under dividend reinvestment and stock purchase plan | 523 | 325 | 202 | |||||||||
Stock options exercised | 564 | 115 | 78 | |||||||||
Stock redeemed | (1,067 | ) | (491 | ) | (235 | ) | ||||||
Net cash used by financing activities | $ | (10,196 | ) | $ | (83,347 | ) | $ | (11,072 | ) | |||
Net change in cash | 22,816 | (21,932 | ) | 14,506 | ||||||||
Cash, beginning of the year | 13,228 | 35,160 | 20,654 | |||||||||
Cash, end of year | $ | 36,044 | $ | 13,228 | $ | 35,160 | ||||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies - Allowance for Loan Losses (Details) | 12 Months Ended |
Dec. 31, 2014 | |
key_element | |
Accounting Policies [Abstract] | |
Number of key element used in assessing the appropriateness of the allowance for loan losses | 3 |
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Premises and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Maximum | |
Premises and Equipment [Line Items] | |
Estimated useful lives of assets | 40 years |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Intangible Assets [Abstract] | |
Estimated useful lives of intangible assets | 3 years |
Maximum | |
Intangible Assets [Abstract] | |
Estimated useful lives of intangible assets | 20 years |
Nature_of_Operations_and_Summa4
Nature of Operations and Summary of Significant Accounting Policies - Requisite Service Period, Stock Award Plans (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Schedule of Stock Options and Restricted Stock Award Plans [Line Items] | |
Requisite service period | 2 years |
Maximum | |
Schedule of Stock Options and Restricted Stock Award Plans [Line Items] | |
Requisite service period | 3 years |
Purchase_and_Assumption_Narrat
Purchase and Assumption - Narrative (Detail) (USD $) | Feb. 10, 2012 |
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 |
Loans | 113,000,000 |
Premises and equipment | 2,100,000 |
Liabilities absorbed | 135,700,000 |
Customer deposits | 125,900,000 |
Other borrowed money | 9,600,000 |
Other liabilities | 402,000 |
Assets acquired, discount | 29,000,000 |
Difference between the purchase price of the assets acquired and the value of the liabilities assumed | 17,200,000 |
Loans Receivable | |
Business Acquisition [Line Items] | |
Loans | 86,300,000 |
Loan portfolio acquired, fair value discount | 19,200,000 |
Performing portion of loan portfolio, fair value | $76,500,000 |
Purchase_and_Assumption_Assets
Purchase and Assumption - Assets and Liabilities of SCB Recorded at Provisional Fair Value (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 10, 2012 |
Assets | |||
Investment securities, available for sale | $18,900 | ||
Federal Home Loan Bank stock | 1,800 | ||
Loans: | |||
Total Assets Purchased | 147,700 | ||
Deposits: | |||
Total Liabilities Assumed | 135,700 | ||
Net Gain on Acquisition | 9,124 | ||
Cash received from FDIC | 17,200 | ||
SCB Bank | |||
Assets | |||
Cash and due from banks | 29,113 | ||
Investment securities, available for sale | 18,896 | ||
Federal Home Loan Bank stock | 1,761 | ||
Loans: | |||
Total Loans | 93,793 | ||
Premises | 1,516 | ||
Core deposit intangible | 484 | ||
Other assets | 560 | ||
Total Assets Purchased | 146,123 | ||
Deposits: | |||
Total Deposits | 125,909 | ||
Federal Home Loan Bank advances | 10,286 | ||
Other liabilities | 804 | ||
Total Liabilities Assumed | 136,999 | ||
Net Gain on Acquisition | 9,124 | ||
SCB Bank | Non-interest bearing | |||
Deposits: | |||
Total Deposits | 13,715 | ||
SCB Bank | NOW accounts | |||
Deposits: | |||
Total Deposits | 14,746 | ||
SCB Bank | Savings and money market | |||
Deposits: | |||
Total Deposits | 25,843 | ||
SCB Bank | Certificate of deposit | |||
Deposits: | |||
Total Deposits | 71,605 | ||
SCB Bank | Commercial | |||
Loans: | |||
Total Loans | 51,042 | ||
SCB Bank | Residential mortgage | |||
Loans: | |||
Total Loans | 11,181 | ||
SCB Bank | Installment | |||
Loans: | |||
Total Loans | $31,570 |
Purchase_and_Assumption_Acquir
Purchase and Assumption - Acquired Loans Accounted With ASC 310 30 (Detail) (USD $) | Feb. 10, 2012 |
In Thousands, unless otherwise specified | |
Business Combinations [Abstract] | |
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 |
Business_Combination_Narrative
Business Combination - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 07, 2014 | Nov. 12, 2013 | |
bank_branch | bank_branch | |||
Business Acquisition [Line Items] | ||||
Value of stock issued as a part of acquisition | $34,981,000 | $135,642,000 | ||
Common Stock | ||||
Business Acquisition [Line Items] | ||||
Stock issued as a part of acquisition (in shares) | 1,574,298 | 7,079,457 | ||
Value of stock issued as a part of acquisition | 197,000 | 885,000 | ||
Merger with Community Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Number of banking centers acquired | 10 | |||
Number of shares of common stock | 4.0926 | |||
Share price | $85.94 | |||
Cash paid in acquisition | 14,200,000 | |||
Stock issued as a part of acquisition (in shares) | 1,600,000 | |||
Value of stock issued as a part of acquisition | 35,000,000 | |||
Total purchase price | 49,189,000 | |||
Core deposit intangible | 4,658,000 | |||
Acquired intangible asset, expected useful life | 10 years | |||
Pro forma revenue | 1,600,000 | |||
Pro forma nonrecurring expense | 1,800,000 | |||
Merger with Community Bancshares, Inc. | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Number of shares of common stock | 4.0926 | |||
Merger with CFS Bancorp, Inc. (Citizens) | ||||
Business Acquisition [Line Items] | ||||
Percentage of interest acquired | 100.00% | |||
Number of banking centers acquired | 20 | |||
Stock issued as a part of acquisition (in shares) | 7,100,000 | |||
Value of stock issued as a part of acquisition | 135,600,000 | |||
Total purchase price | 135,642,000 | |||
Core deposit intangible | 7,313,000 | |||
Acquired intangible asset, expected useful life | 10 years | |||
Pro forma revenue | 4,900,000 | |||
Pro forma nonrecurring expense | $9,500,000 | |||
Merger with CFS Bancorp, Inc. (Citizens) | CFS Bancorp | ||||
Business Acquisition [Line Items] | ||||
Percentage of common stock received per shares owned through acquisition | 0.65% |
Business_Combination_Assets_Ac
Business Combination - Assets Acquired and Liabilities Assumed (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 10, 2012 | Nov. 07, 2014 | Nov. 12, 2013 |
In Thousands, unless otherwise specified | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $11,900 | |||||
Investment securities | 18,900 | |||||
Premises and equipment | 2,100 | |||||
Goodwill | 202,724 | 188,948 | 141,375 | |||
Merger with Community Bancshares, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 4,124 | |||||
Interest-bearing time deposits | 16,526 | |||||
Loans | 145,064 | |||||
Premises and equipment | 3,610 | |||||
Federal Home Loan Bank stock | 1,950 | |||||
Interest receivable | 767 | |||||
Cash surrender value of life insurance | 3,266 | |||||
Other real estate owned | 6,662 | |||||
Tax asset, deferred and receivable | 3,348 | |||||
Other assets | 167 | |||||
Deposits | -228,424 | |||||
Interest payable | -98 | |||||
Other liabilities | -3,014 | |||||
Net tangible assets acquired | 30,755 | |||||
Core deposit intangible | 4,658 | |||||
Goodwill | 13,776 | |||||
Purchase price | 49,189 | |||||
Merger with Community Bancshares, Inc. | Available for Sale Securities | ||||||
Business Acquisition [Line Items] | ||||||
Investment securities | 76,807 | |||||
Merger with CFS Bancorp, Inc. (Citizens) | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 10,992 | |||||
Interest-bearing time deposits | 213,379 | |||||
Mortgage loans held for sale | 189 | |||||
Loans | 603,114 | |||||
Premises and equipment | 19,643 | |||||
Federal Home Loan Bank stock | 6,188 | |||||
Interest receivable | 1,770 | |||||
Cash surrender value of life insurance | 36,555 | |||||
Other real estate owned | 12,857 | |||||
Tax asset, deferred and receivable | 30,717 | |||||
Other assets | 111,656 | |||||
Deposits | -955,432 | |||||
Securities sold under repurchase agreements | -9,830 | |||||
Federal Home Loan Bank advances | -15,000 | |||||
Interest payable | -294 | |||||
Other liabilities | -16,033 | |||||
Net tangible assets acquired | 80,756 | |||||
Core deposit intangible | 7,313 | |||||
Goodwill | 47,573 | |||||
Purchase price | 135,642 | |||||
Merger with CFS Bancorp, Inc. (Citizens) | Available for Sale Securities | ||||||
Business Acquisition [Line Items] | ||||||
Investment securities | 15,913 | |||||
Merger with CFS Bancorp, Inc. (Citizens) | Held to Maturity Securities | ||||||
Business Acquisition [Line Items] | ||||||
Investment securities | $14,372 |
Business_Combination_Pro_Forma
Business Combination - Pro Forma Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Total revenue (net interest income plus other income) | $263,070 | $253,668 | $266,034 |
Net income | 61,572 | 39,979 | 50,092 |
Net income available to common shareholders | $61,572 | $37,599 | $45,553 |
Earnings per share: | |||
Basic | $1.63 | $0.98 | $1.28 |
Diluted | $1.61 | $0.97 | $1.27 |
Restriction_on_Cash_and_Due_Fr1
Restriction on Cash and Due From Banks (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Cash balance, Federal Home Loan Bank And Federal Reserve Bank | $13,910 |
Cash reserve with Federal Reserve Bank | 22,595 |
Interest-bearing Deposits | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Cash amount that exceeded federally insured limits | $103,154 |
Investment_Securities_Amortize
Investment Securities - Amortized Cost and Approximate Fair Values of Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | $529,212 | $537,848 |
Gross Unrealized Gains | 20,581 | 7,896 |
Gross Unrealized Losses | 250 | 9,543 |
Investment securities available for sale | 549,543 | 536,201 |
Amortized Cost | 631,088 | 559,378 |
Gross Unrealized Gains | 17,243 | 5,282 |
Gross Unrealized Losses | 608 | 3,813 |
Fair Value | 647,723 | 560,847 |
Amortized Cost | 1,160,300 | 1,097,226 |
Gross Unrealized Gains | 37,824 | 13,178 |
Gross Unrealized Losses | 858 | 13,356 |
Fair Value | 1,197,266 | 1,097,048 |
U.S. Treasury | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 15,914 | |
Gross Unrealized Gains | 80 | |
Gross Unrealized Losses | 21 | |
Investment securities available for sale | 15,973 | |
Government Agency and Municipal Bonds and Notes | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 100 | 3,550 |
Gross Unrealized Gains | 9 | 12 |
Gross Unrealized Losses | 17 | |
Investment securities available for sale | 109 | 3,545 |
State and municipal | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 216,915 | 231,005 |
Gross Unrealized Gains | 11,801 | 3,878 |
Gross Unrealized Losses | 123 | 3,896 |
Investment securities available for sale | 228,593 | 230,987 |
Amortized Cost | 204,443 | 145,941 |
Gross Unrealized Gains | 5,716 | 62 |
Gross Unrealized Losses | 96 | 91 |
Fair Value | 210,063 | 145,912 |
U.S. Government-sponsored mortgage-backed securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 310,460 | 279,299 |
Gross Unrealized Gains | 8,771 | 3,926 |
Gross Unrealized Losses | 127 | 1,973 |
Investment securities available for sale | 319,104 | 281,252 |
Amortized Cost | 426,645 | 413,437 |
Gross Unrealized Gains | 11,527 | 5,220 |
Gross Unrealized Losses | 512 | 3,722 |
Fair Value | 437,660 | 414,935 |
Corporate obligations | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 31 | 6,374 |
Gross Unrealized Losses | 3,636 | |
Investment securities available for sale | 31 | 2,738 |
Equity securities | ||
Gain (Loss) on Investments [Line Items] | ||
Amortized Cost | 1,706 | 1,706 |
Investment securities available for sale | $1,706 | $1,706 |
Investment_Securities_Narrativ
Investment Securities - Narrative (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Fair value | $72,390,000 | $477,132,000 | ||
Gross Unrealized Losses | 250,000 | 9,543,000 | ||
Gross Unrealized Losses | 608,000 | 3,813,000 | ||
Amortized Cost | 529,212,000 | 537,848,000 | ||
Carrying value of securities pledged as collateral | 449,408,000 | 373,533,000 | 345,866,000 | |
Gross gains on securities sold | 3,581,000 | 487,000 | 2,389,000 | |
Gross losses | 0 | 0 | 0 | |
Gross Unrealized Losses | 250,000 | 9,543,000 | ||
Corporate obligations | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Amortized Cost | 6,400,000 | |||
Gross gains on securities sold | 1,900,000 | |||
Gross Unrealized Losses | 3,636,000 | |||
Accumulated OTTI on securities | 9,400,000 | |||
Net impairment losses recognized in earnings | 500,000 | |||
Investments in Debt and Equity Securities, Reported at Less than Historical Cost | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Historical cost | 73,249,000 | 490,488,000 | ||
Fair value | 72,390,000 | 477,132,000 | ||
Percent of the Corporation's available for sale and held to maturity portfolio | 6.10% | 43.60% | ||
U.S. Treasury Securities | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Gross Unrealized Losses | 21,000 | |||
Amortized Cost | 15,914,000 | |||
U.S. Government-sponsored agency securities | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Gross Unrealized Losses | 17,000 | |||
Amortized Cost | 100,000 | 3,550,000 | ||
U.S. Government-sponsored mortgage-backed securities | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Gross Unrealized Losses | 127,000 | 1,973,000 | ||
Available-for-sale, number of securities in unrealized loss positions | 4 | |||
Gross Unrealized Losses | 512,000 | 3,722,000 | ||
Held-to-maturity, number of securities in unrealized loss positions | 13 | |||
Amortized Cost | 310,460,000 | 279,299,000 | ||
State and municipal | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Gross Unrealized Losses | 123,000 | 3,896,000 | ||
Available-for-sale, number of securities in unrealized loss positions | 22 | |||
Gross Unrealized Losses | 96,000 | 91,000 | ||
Held-to-maturity, number of securities in unrealized loss positions | 16 | |||
Amortized Cost | 216,915,000 | 231,005,000 | ||
Corporate obligations | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Gross Unrealized Losses | 3,636,000 | |||
Amortized Cost | $31,000 | $6,374,000 |
Investment_Securities_Debt_Sec
Investment Securities - Debt Securities Credit Loss Recognized in Income, and Other Losses Recorded in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Credit losses on debt securities held: | ||
Balance, January 1 | $11,355 | $11,355 |
Reductions for previous other-than-temporary losses realized on securities sold during the year | -10,855 | |
Balance, December 31 | $500 | $11,355 |
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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | $3,442 | $237,965 |
Less than 12 Months, Unrealized Losses | 20 | 5,579 |
12 Months or Longer, Fair Value | 15,297 | 5,977 |
12 Months or Longer, Unrealized Losses | 230 | 3,964 |
Total, Fair Value | 18,739 | 243,942 |
Total, Gross Unrealized Losses | 250 | 9,543 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 14,910 | 230,366 |
Less than 12 Months, Gross Unrealized Losses | 178 | 3,553 |
12 Months or Longer, Fair Value | 38,741 | 2,824 |
12 Months or Longer, Gross Unrealized Losses | 430 | 260 |
Total, Fair Value | 53,651 | 233,190 |
Total, Gross Unrealized Losses | 608 | 3,813 |
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||
Less than 12 Months, Fair Value | 18,352 | 468,331 |
Less than 12 Months, Gross Unrealized Losses | 198 | 9,132 |
12 Months or Longer, Fair Value | 54,038 | 8,801 |
12 Months or Longer, Gross Unrealized Losses | 660 | 4,224 |
Total, Fair Value | 72,390 | 477,132 |
Total, Gross Unrealized Losses | 858 | 13,356 |
State and municipal | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 5,119 | 17,318 |
Less than 12 Months, Gross Unrealized Losses | 96 | 91 |
12 Months or Longer, Fair Value | 250 | 184 |
Total, Fair Value | 5,369 | 17,502 |
Total, Gross Unrealized Losses | 96 | 91 |
U.S. Government-sponsored mortgage-backed securities | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 9,791 | 213,048 |
Less than 12 Months, Gross Unrealized Losses | 82 | 3,462 |
12 Months or Longer, Fair Value | 38,491 | 2,640 |
12 Months or Longer, Gross Unrealized Losses | 430 | 260 |
Total, Fair Value | 48,282 | 215,688 |
Total, Gross Unrealized Losses | 512 | 3,722 |
U.S. Treasury | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 4,875 | |
Less than 12 Months, Unrealized Losses | 21 | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 4,875 | |
Total, Gross Unrealized Losses | 21 | |
Government Agency and Municipal Bonds and Notes | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 3,433 | |
Less than 12 Months, Unrealized Losses | 17 | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 3,433 | |
Total, Gross Unrealized Losses | 17 | |
State and municipal | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 1,256 | 111,791 |
Less than 12 Months, Unrealized Losses | 7 | 3,840 |
12 Months or Longer, Fair Value | 9,850 | 583 |
12 Months or Longer, Unrealized Losses | 116 | 56 |
Total, Fair Value | 11,106 | 112,374 |
Total, Gross Unrealized Losses | 123 | 3,896 |
U.S. Government-sponsored mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 2,186 | 117,866 |
Less than 12 Months, Unrealized Losses | 13 | 1,701 |
12 Months or Longer, Fair Value | 5,447 | 2,683 |
12 Months or Longer, Unrealized Losses | 114 | 272 |
Total, Fair Value | 7,633 | 120,549 |
Total, Gross Unrealized Losses | 127 | 1,973 |
Corporate obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
12 Months or Longer, Fair Value | 2,711 | |
12 Months or Longer, Unrealized Losses | 3,636 | |
Total, Fair Value | 2,711 | |
Total, Gross Unrealized Losses | $3,636 |
Investment_Securities_Amortize1
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Due in one year or less | $3,127 | |
Due after one through five years | 9,565 | |
Due after five through ten years | 48,675 | |
Due after ten years | 155,679 | |
Available-For-Sale Securities, Debt Maturity, with Single Maturity Date, Amortized Cost, Total | 217,046 | |
Total Investment Securities | 529,212 | |
Due in one year or less | 3,153 | |
Due after one through five years | 9,840 | |
Due after five through ten years | 50,889 | |
Due after ten years | 164,851 | |
Available-For-Sale Securities, Debt Maturity, with Single Maturity Date, Fair Value, Total | 228,733 | |
Total Investment Securities | 549,543 | |
Due in one year or less | 6,258 | |
Due after one through five years | 18,440 | |
Due after five through ten years | 85,997 | |
Due after ten years | 93,748 | |
Held-To-Maturity Securities, Debt Maturities, with Single Maturity Date, Net Carrying Amount, Total | 204,443 | |
Amortized Cost | 631,088 | 559,378 |
Due in one year or less | 6,329 | |
Due after one through five years | 18,930 | |
Due after five through ten years | 87,903 | |
Due after ten years | 96,901 | |
Held-To-Maturity Securities, Debt Maturity, with Single Maturity Date, Fair Value, Total | 210,063 | |
Fair Value | 647,723 | 560,847 |
U.S. Government-sponsored mortgage-backed securities | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Without single maturity date | 310,460 | |
Without single maturity date | 319,104 | |
Amortized Cost | 426,645 | 413,437 |
Fair Value | 437,660 | 414,935 |
Equity securities | ||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||
Without single maturity date | 1,706 | |
Without single maturity date | $1,706 |
Loans_and_Allowance_Narrative_
Loans and Allowance - Narrative (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans held for sale | $7,235 | $5,331 | $7,235 | $5,331 | ||||||||
Allowance for loan losses | 63,964 | 67,870 | 63,964 | 67,870 | 69,366 | 70,898 | ||||||
Decrease in allowance for loan losses | 3,906 | |||||||||||
Increase in reserve on impaired loans | 1,186 | |||||||||||
Reserve on impaired loans | 2,769 | 1,583 | 2,769 | 1,583 | 4,243 | |||||||
Net charge offs | 6,466 | |||||||||||
Decrease in net charge offs | 1,678 | |||||||||||
Provision for loan losses | 960 | 1,600 | 1,016 | 1,533 | 1,997 | 2,102 | 2,560 | 6,648 | 18,534 | |||
Decrease in provision for loan losses | 4,088 | |||||||||||
Commercial impaired loan total | 116,223 | 119,755 | 116,223 | 119,755 | 79,179 | |||||||
Merger with Community Bancshares, Inc. | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Commercial impaired loan total | 17,027 | 17,027 | ||||||||||
Merger with CFS Bancorp, Inc. (Citizens) | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Commercial impaired loan total | 69,448 | 69,448 | ||||||||||
SCB Bank | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Commercial impaired loan total | 17,334 | |||||||||||
Commercial and farmland | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Reserve on impaired loans | 1,120 | 6 | 1,120 | 6 | 2,460 | |||||||
Percentage of troubled debt restructured loans | 49.00% | |||||||||||
Residential | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Allowance for loan losses | 13,152 | 15,077 | 13,152 | 15,077 | 14,157 | 12,343 | ||||||
Reserve on impaired loans | 194 | 194 | 50 | |||||||||
Provision for loan losses | ($839) | $3,514 | $6,176 | |||||||||
Percentage of troubled debt restructured loans | 28.00% |
Loans_and_Allowance_Compositio
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Loans: | ||||
Loans | $3,924,865 | $3,632,409 | ||
Allowance for loan losses | -63,964 | -67,870 | -69,366 | -70,898 |
Net loans | 3,860,901 | 3,564,539 | ||
Commercial and industrial loans | ||||
Loans: | ||||
Loans | 896,688 | 761,705 | ||
Agricultural production financing and other loans to farmers | ||||
Loans: | ||||
Loans | 104,927 | 114,348 | ||
Construction | ||||
Loans: | ||||
Loans | 207,221 | 177,082 | ||
Commercial and farmland | ||||
Loans: | ||||
Loans | 1,672,661 | 1,611,809 | ||
Residential | ||||
Loans: | ||||
Loans | 647,315 | 616,385 | ||
Allowance for loan losses | -13,152 | -15,077 | -14,157 | -12,343 |
Home equity | ||||
Loans: | ||||
Loans | 286,529 | 255,223 | ||
Individuals' loans for household and other personal expenditures | ||||
Loans: | ||||
Loans | 73,400 | 69,783 | ||
Allowance for loan losses | -2,658 | -2,515 | -2,593 | -2,902 |
Lease financing receivables, net of unearned income | ||||
Loans: | ||||
Loans | 1,106 | 1,545 | ||
Allowance for loan losses | -3 | -3 | ||
Other loans | ||||
Loans: | ||||
Loans | $35,018 | $24,529 |
Loans_and_Allowance_Changes_in
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | |||||||||||
Beginning balance | $67,870 | $69,366 | $67,870 | $69,366 | $70,898 | ||||||
Provision for losses | 960 | 1,600 | 1,016 | 1,533 | 1,997 | 2,102 | 2,560 | 6,648 | 18,534 | ||
Recoveries on loans | 10,916 | 9,990 | 7,206 | ||||||||
Loans charged off | -17,382 | -18,134 | -27,272 | ||||||||
Ending balance | 63,964 | 67,870 | 63,964 | 67,870 | 69,366 | ||||||
Commercial | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 27,176 | 25,913 | 27,176 | 25,913 | 17,731 | ||||||
Provision for losses | 3,459 | 2,794 | 14,749 | ||||||||
Recoveries on loans | 5,435 | 4,586 | 1,744 | ||||||||
Loans charged off | -7,246 | -6,117 | -8,311 | ||||||||
Ending balance | 28,824 | 27,176 | 28,824 | 27,176 | 25,913 | ||||||
Commercial Real Estate | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 23,102 | 26,703 | 23,102 | 26,703 | 37,919 | ||||||
Provision for losses | -464 | 340 | -2,546 | ||||||||
Recoveries on loans | 3,297 | 3,552 | 3,652 | ||||||||
Loans charged off | -6,608 | -7,493 | -12,322 | ||||||||
Ending balance | 19,327 | 23,102 | 19,327 | 23,102 | 26,703 | ||||||
Consumer | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 2,515 | 2,593 | 2,515 | 2,593 | 2,902 | ||||||
Provision for losses | 423 | -11 | 126 | ||||||||
Recoveries on loans | 377 | 556 | 695 | ||||||||
Loans charged off | -657 | -623 | -1,130 | ||||||||
Ending balance | 2,658 | 2,515 | 2,658 | 2,515 | 2,593 | ||||||
Residential | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 15,077 | 14,157 | 15,077 | 14,157 | 12,343 | ||||||
Provision for losses | -839 | 3,514 | 6,176 | ||||||||
Recoveries on loans | 1,783 | 1,292 | 1,113 | ||||||||
Loans charged off | -2,869 | -3,886 | -5,475 | ||||||||
Ending balance | 13,152 | 15,077 | 13,152 | 15,077 | 14,157 | ||||||
Finance Leases | |||||||||||
Allowance for loan losses: | |||||||||||
Beginning balance | 3 | ||||||||||
Provision for losses | -19 | 11 | 29 | ||||||||
Recoveries on loans | 24 | 4 | 2 | ||||||||
Loans charged off | -2 | -15 | -34 | ||||||||
Ending balance | $3 | $3 |
Loans_and_Allowance_Allowance_
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | $2,119 | $1,354 | ||
Allowance balances - Collectively evaluated for impairment | 61,195 | 66,287 | ||
Allowance balances - Loans Acquired with Deteriorated Credit Quality | 650 | 229 | ||
Total Allowance for Loan Losses | 63,964 | 67,870 | 69,366 | 70,898 |
Loan balances - Individually evaluated for impairment | 44,093 | 42,067 | ||
Loan balances - Collectively evaluated for impairment | 3,807,707 | 3,511,501 | ||
Loan balances - Loans Acquired with Deteriorated Credit Quality | 73,065 | 78,841 | ||
Loans | 3,924,865 | 3,632,409 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 1,455 | 585 | ||
Allowance balances - Collectively evaluated for impairment | 27,369 | 26,493 | ||
Allowance balances - Loans Acquired with Deteriorated Credit Quality | 98 | |||
Total Allowance for Loan Losses | 28,824 | 27,176 | 25,913 | 17,731 |
Loan balances - Individually evaluated for impairment | 16,108 | 10,240 | ||
Loan balances - Collectively evaluated for impairment | 1,011,122 | 882,794 | ||
Loan balances - Loans Acquired with Deteriorated Credit Quality | 9,403 | 7,548 | ||
Loans | 1,036,633 | 900,582 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 470 | 763 | ||
Allowance balances - Collectively evaluated for impairment | 18,207 | 22,208 | ||
Allowance balances - Loans Acquired with Deteriorated Credit Quality | 650 | 131 | ||
Total Allowance for Loan Losses | 19,327 | 23,102 | 26,703 | 37,919 |
Loan balances - Individually evaluated for impairment | 23,963 | 29,007 | ||
Loan balances - Collectively evaluated for impairment | 1,796,797 | 1,690,285 | ||
Loan balances - Loans Acquired with Deteriorated Credit Quality | 59,122 | 69,599 | ||
Loans | 1,879,882 | 1,788,891 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Collectively evaluated for impairment | 2,658 | 2,515 | ||
Total Allowance for Loan Losses | 2,658 | 2,515 | 2,593 | 2,902 |
Loan balances - Collectively evaluated for impairment | 73,400 | 69,783 | ||
Loans | 73,400 | 69,783 | ||
Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 194 | 6 | ||
Allowance balances - Collectively evaluated for impairment | 12,958 | 15,071 | ||
Total Allowance for Loan Losses | 13,152 | 15,077 | 14,157 | 12,343 |
Loan balances - Individually evaluated for impairment | 4,022 | 2,820 | ||
Loan balances - Collectively evaluated for impairment | 925,282 | 867,094 | ||
Loan balances - Loans Acquired with Deteriorated Credit Quality | 4,540 | 1,694 | ||
Loans | 933,844 | 871,608 | ||
Finance Leases | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Collectively evaluated for impairment | 3 | |||
Total Allowance for Loan Losses | 3 | 3 | ||
Loan balances - Collectively evaluated for impairment | 1,106 | 1,545 | ||
Loans | $1,106 | $1,545 |
Loans_and_Allowance_Summary_of
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $48,789 | $56,402 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 7,048 | 9,283 |
Agriculture production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 5,800 | 30 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,439 | 4,978 |
Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 19,350 | 28,095 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 12,933 | 12,068 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,988 | 1,667 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 231 | 117 |
Other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $164 |
Loans_and_Allowance_Compositio1
Loans and Allowance - Composition of Impaired Loans by Loan Class (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | $158,563 | $189,779 | $109,594 |
Recorded Investment | 102,793 | 114,253 | 67,333 |
Average Recorded Investment | 106,807 | 119,561 | 76,517 |
Interest Income Recognized | 4,297 | 2,048 | 1,498 |
Unpaid Principal Balance | 16,703 | 6,121 | 12,918 |
Recorded Investment | 13,430 | 5,502 | 11,846 |
Related Allowance | 2,769 | 1,583 | 4,243 |
Average Recorded Investment | 15,764 | 5,607 | 12,097 |
Interest Income Recognized | 65 | 18 | 203 |
Impaired Financing Receivable, Unpaid Principal Balance | 175,266 | 195,900 | 122,512 |
Impaired Financing Receivable, Recorded Investment | 116,223 | 119,755 | 79,179 |
Average Recorded Investment | 122,571 | 125,168 | 88,614 |
Interest Income Recognized | 4,362 | 2,066 | 1,701 |
Commercial and industrial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 35,514 | 35,066 | 28,532 |
Recorded Investment | 18,029 | 16,371 | 11,730 |
Average Recorded Investment | 18,711 | 19,209 | 15,089 |
Interest Income Recognized | 362 | 192 | 124 |
Unpaid Principal Balance | 1,766 | 1,390 | 4,415 |
Recorded Investment | 1,684 | 1,216 | 4,155 |
Related Allowance | 1,055 | 683 | 1,628 |
Average Recorded Investment | 1,721 | 1,240 | 4,225 |
Interest Income Recognized | 40 | 9 | 33 |
Agriculture production financing and other loans to farmers | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 26 | 32 | |
Recorded Investment | 22 | 30 | |
Average Recorded Investment | 26 | 32 | |
Unpaid Principal Balance | 6,777 | ||
Recorded Investment | 5,777 | ||
Related Allowance | 400 | ||
Average Recorded Investment | 8,044 | ||
Interest Income Recognized | 1 | ||
Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 12,956 | 16,109 | 9,787 |
Recorded Investment | 9,318 | 10,625 | 5,164 |
Average Recorded Investment | 9,837 | 11,621 | 6,471 |
Interest Income Recognized | 427 | 117 | 66 |
Unpaid Principal Balance | 4,657 | 1,202 | |
Recorded Investment | 4,215 | 1,058 | |
Related Allowance | 894 | 105 | |
Average Recorded Investment | 4,291 | 1,175 | |
Interest Income Recognized | 9 | ||
Commercial and farmland | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 95,856 | 128,073 | 58,173 |
Recorded Investment | 68,187 | 83,033 | 43,204 |
Average Recorded Investment | 70,844 | 84,057 | 46,788 |
Interest Income Recognized | 3,389 | 1,663 | 1,211 |
Unpaid Principal Balance | 7,159 | 74 | 5,579 |
Recorded Investment | 4,971 | 71 | 5,182 |
Related Allowance | 1,120 | 6 | 2,460 |
Average Recorded Investment | 4,999 | 76 | 5,239 |
Interest Income Recognized | 24 | 95 | |
Residential | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 10,591 | 6,746 | 8,820 |
Recorded Investment | 6,839 | 3,910 | 6,215 |
Average Recorded Investment | 6,987 | 4,236 | 7,129 |
Interest Income Recognized | 119 | 75 | 83 |
Unpaid Principal Balance | 1,001 | 1,722 | |
Recorded Investment | 998 | 1,451 | |
Related Allowance | 194 | 50 | |
Average Recorded Investment | 1,000 | 1,458 | |
Interest Income Recognized | 75 | ||
Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,590 | 3,299 | 4,199 |
Recorded Investment | 398 | 112 | 1,006 |
Average Recorded Investment | 402 | 225 | 1,022 |
Interest Income Recognized | 13 | ||
Other loans | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 30 | 454 | 83 |
Recorded Investment | 172 | 14 | |
Average Recorded Investment | 181 | 18 | |
Interest Income Recognized | $1 | $1 |
Loans_and_Allowance_Credit_Qua
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $3,924,865 | $3,632,409 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 896,688 | 761,705 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 104,927 | 114,348 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 207,221 | 177,082 |
Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,672,661 | 1,611,809 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 647,315 | 616,385 |
Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 286,529 | 255,223 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,400 | 69,783 |
Finance Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,106 | 1,545 |
Other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 35,018 | 24,529 |
Commercial Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,849,876 | 2,635,448 |
Commercial Pass | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 823,732 | 708,835 |
Commercial Pass | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 96,155 | 114,318 |
Commercial Pass | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 185,394 | 162,976 |
Commercial Pass | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,552,781 | 1,473,714 |
Commercial Pass | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 149,430 | 143,657 |
Commercial Pass | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,368 | 6,194 |
Commercial Pass | Finance Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 998 | 1,420 |
Commercial Pass | Other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 35,018 | 24,334 |
Commercial Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 64,631 | 72,407 |
Commercial Special Mention | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 24,455 | 11,332 |
Commercial Special Mention | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,195 | |
Commercial Special Mention | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,164 | 1,132 |
Commercial Special Mention | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 29,484 | 57,676 |
Commercial Special Mention | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,321 | 2,232 |
Commercial Special Mention | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12 | 35 |
Commercial Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 160,608 | 146,254 |
Commercial Substandard | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 48,226 | 41,013 |
Commercial Substandard | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,577 | 30 |
Commercial Substandard | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,928 | 12,029 |
Commercial Substandard | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 90,161 | 80,184 |
Commercial Substandard | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,918 | 11,494 |
Commercial Substandard | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 690 | 1,184 |
Commercial Substandard | Finance Leases | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 108 | 125 |
Commercial Substandard | Other loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 195 | |
Commercial Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 275 | 661 |
Commercial Doubtful | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 275 | 525 |
Commercial Doubtful | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 136 | |
Consumer Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 837,296 | 764,261 |
Consumer Performing | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 15,588 | |
Consumer Performing | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 470,972 | 448,494 |
Consumer Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 277,571 | 246,101 |
Consumer Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,165 | 69,666 |
Consumer Non Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 12,179 | 13,378 |
Consumer Non Performing | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 147 | 945 |
Consumer Non Performing | Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 235 | 235 |
Consumer Non Performing | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,674 | 10,372 |
Consumer Non Performing | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,888 | 1,709 |
Consumer Non Performing | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $235 | $117 |
Loans_and_Allowance_Past_Due_A
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $3,846,157 | $3,549,125 |
30-59 Days Past Due | 22,107 | 16,864 |
60-89 Days Past Due | 3,149 | 8,668 |
Loans 90 Days And Accruing | 4,663 | 1,350 |
Non-Accrual | 48,789 | 56,402 |
Total Past Due & Non-Accrual | 78,708 | 83,284 |
Total Loans | 3,924,865 | 3,632,409 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 882,596 | 749,020 |
30-59 Days Past Due | 4,006 | 2,628 |
60-89 Days Past Due | 53 | 774 |
Loans 90 Days And Accruing | 2,985 | |
Non-Accrual | 7,048 | 9,283 |
Total Past Due & Non-Accrual | 14,092 | 12,685 |
Total Loans | 896,688 | 761,705 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 98,236 | 114,305 |
30-59 Days Past Due | 891 | 13 |
60-89 Days Past Due | ||
Loans 90 Days And Accruing | ||
Non-Accrual | 5,800 | 30 |
Total Past Due & Non-Accrual | 6,691 | 43 |
Total Loans | 104,927 | 114,348 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 204,683 | 171,046 |
30-59 Days Past Due | 1,017 | 1,058 |
60-89 Days Past Due | 82 | |
Non-Accrual | 1,439 | 4,978 |
Total Past Due & Non-Accrual | 2,538 | 6,036 |
Total Loans | 207,221 | 177,082 |
Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,642,016 | 1,573,403 |
30-59 Days Past Due | 9,846 | 3,807 |
60-89 Days Past Due | 778 | 5,801 |
Loans 90 Days And Accruing | 671 | 703 |
Non-Accrual | 19,350 | 28,095 |
Total Past Due & Non-Accrual | 30,645 | 38,406 |
Total Loans | 1,672,661 | 1,611,809 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 626,821 | 595,192 |
30-59 Days Past Due | 4,876 | 7,156 |
60-89 Days Past Due | 1,831 | 1,475 |
Loans 90 Days And Accruing | 854 | 494 |
Non-Accrual | 12,933 | 12,068 |
Total Past Due & Non-Accrual | 20,494 | 21,193 |
Total Loans | 647,315 | 616,385 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 282,828 | 251,188 |
30-59 Days Past Due | 1,213 | 1,652 |
60-89 Days Past Due | 352 | 563 |
Loans 90 Days And Accruing | 148 | 153 |
Non-Accrual | 1,988 | 1,667 |
Total Past Due & Non-Accrual | 3,701 | 4,035 |
Total Loans | 286,529 | 255,223 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 72,853 | 69,061 |
30-59 Days Past Due | 258 | 550 |
60-89 Days Past Due | 53 | 55 |
Loans 90 Days And Accruing | 5 | |
Non-Accrual | 231 | 117 |
Total Past Due & Non-Accrual | 547 | 722 |
Total Loans | 73,400 | 69,783 |
Finance Leases | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,106 | 1,545 |
Non-Accrual | ||
Total Past Due & Non-Accrual | ||
Total Loans | 1,106 | 1,545 |
Other loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 35,018 | 24,365 |
Non-Accrual | 164 | |
Total Past Due & Non-Accrual | 164 | |
Total Loans | $35,018 | $24,529 |
Loans_and_Allowance_Summary_of1
Loans and Allowance - Summary of Troubled Debt Restructurings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $1,237 | $7,753 |
Post-Modification Recorded Balance | 1,257 | 6,757 |
Number of Loans | 23 | 32 |
Commercial and industrial loans | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | 295 | |
Post-Modification Recorded Balance | 316 | |
Number of Loans | 5 | |
Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | 259 | 6,506 |
Post-Modification Recorded Balance | 259 | 5,492 |
Number of Loans | 1 | 11 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | 632 | 809 |
Post-Modification Recorded Balance | 622 | 804 |
Number of Loans | 9 | 12 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | 320 | |
Post-Modification Recorded Balance | 350 | |
Number of Loans | 11 | |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | 26 | 143 |
Post-Modification Recorded Balance | $26 | $145 |
Number of Loans | 2 | 4 |
Loans_and_Allowance_Summary_of2
Loans and Allowance - Summary of Troubled Debt Restructurings by Modification (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $1,263 | $4,519 |
Troubled Debt Restructurings, Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 319 | 1,823 |
Troubled Debt Restructurings, Rate Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 318 | 275 |
Troubled Debt Restructurings, Rate and Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 626 | 2,421 |
Commercial and industrial loans | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 267 | |
Commercial and industrial loans | Troubled Debt Restructurings, Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 207 | |
Commercial and industrial loans | Troubled Debt Restructurings, Rate and Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 60 | |
Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 288 | 3,373 |
Commercial and farmland | Troubled Debt Restructurings, Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 288 | 1,388 |
Commercial and farmland | Troubled Debt Restructurings, Rate Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Commercial and farmland | Troubled Debt Restructurings, Rate and Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 1,985 | |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 609 | 755 |
Residential | Troubled Debt Restructurings, Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 31 | 167 |
Residential | Troubled Debt Restructurings, Rate Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 218 | 237 |
Residential | Troubled Debt Restructurings, Rate and Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 360 | 351 |
Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 343 | |
Home equity | Troubled Debt Restructurings, Rate Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 100 | |
Home equity | Troubled Debt Restructurings, Rate and Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 243 | |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 23 | 124 |
Consumer | Troubled Debt Restructurings, Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 61 | |
Consumer | Troubled Debt Restructurings, Rate Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 38 | |
Consumer | Troubled Debt Restructurings, Rate and Term Modifications | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $23 | $25 |
Loans_and_Allowance_Subsequent
Loans and Allowance - Subsequent Default (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | 1 | 5 |
Recorded Balance | $70 | $1,207 |
Commercial and industrial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | 3 | |
Recorded Balance | 173 | |
Commercial and farmland | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | 2 | |
Recorded Balance | 1,034 | |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Number of Loans | 1 | |
Recorded Balance | $70 |
Accounting_For_Certain_Loans_A2
Accounting For Certain Loans Acquired In a Purchase - Carrying Amount of Loans Included in Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | $698,457 | $690,218 |
Carrying Amount | 658,471 | 636,182 |
Allowance | 650 | 229 |
Carrying Amount | 657,821 | 635,953 |
Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 142,989 | |
Carrying Amount | 134,198 | |
Allowance | ||
Carrying Amount | 134,198 | |
Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 509,660 | 629,184 |
Carrying Amount | 484,949 | 585,913 |
Allowance | 650 | |
Carrying Amount | 484,299 | 585,913 |
SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 45,808 | 61,034 |
Carrying Amount | 39,324 | 50,269 |
Allowance | 229 | |
Carrying Amount | 39,324 | 50,040 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 79,124 | 89,487 |
Commercial and industrial loans | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 8,168 | |
Commercial and industrial loans | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 64,897 | 81,303 |
Commercial and industrial loans | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 6,059 | 8,184 |
Agriculture production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,993 | 1,161 |
Agriculture production financing and other loans to farmers | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,100 | |
Agriculture production financing and other loans to farmers | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | ||
Agriculture production financing and other loans to farmers | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 893 | 1,161 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 28,176 | 17,962 |
Construction | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 19,063 | |
Construction | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 9,113 | 17,962 |
Construction | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | ||
Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 341,195 | 335,049 |
Commercial and farmland | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 74,600 | |
Commercial and farmland | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 251,002 | 311,631 |
Commercial and farmland | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 15,593 | 23,418 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 180,643 | 176,113 |
Residential | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 28,863 | |
Residential | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 144,396 | 166,754 |
Residential | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 7,384 | 9,359 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 64,883 | 67,278 |
Home equity | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 9,881 | |
Home equity | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 39,244 | 49,042 |
Home equity | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 15,758 | 18,236 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 2,357 | 2,629 |
Individuals' loans for household and other personal expenditures | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,314 | |
Individuals' loans for household and other personal expenditures | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 922 | 2,360 |
Individuals' loans for household and other personal expenditures | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 121 | 269 |
Other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 86 | 539 |
Other loans | Merger with Community Bancshares, Inc. | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | ||
Other loans | Merger with CFS Bancorp, Inc. (Citizens) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 86 | 132 |
Other loans | SCB Bank | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | $407 |
Accounting_For_Certain_Loans_A3
Accounting For Certain Loans Acquired In a Purchase - Accretable Yield or Income Expected to be Collected (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | $19,299 | $5,142 | |
Additions | 5,687 | 13,599 | |
Accretion | -8,883 | -2,235 | |
Reclassification from nonaccretable | 5,419 | 2,888 | |
Disposals | -2,086 | -95 | |
Ending balance | 19,436 | 19,299 | |
Merger with Community Bancshares, Inc. | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | |||
Additions | 5,687 | ||
Accretion | -394 | ||
Reclassification from nonaccretable | 119 | ||
Disposals | |||
Ending balance | 5,412 | ||
Merger with CFS Bancorp, Inc. (Citizens) | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | 13,435 | ||
Additions | 13,599 | ||
Accretion | -6,431 | -164 | |
Reclassification from nonaccretable | 4,501 | ||
Disposals | -1,594 | ||
Ending balance | 9,911 | 13,435 | |
SCB Bank | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | 5,864 | 5,142 | 0 |
Additions | |||
Accretion | -2,058 | -2,071 | 9,774 |
Reclassification from nonaccretable | 799 | 2,888 | -4,632 |
Disposals | -492 | -95 | 0 |
Ending balance | $4,113 | $5,864 | $5,142 |
Accounting_For_Certain_Loans_A4
Accounting For Certain Loans Acquired In a Purchase - Contractually Required Payments (Details) (USD $) | Feb. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Contractually required payments receivable at acquisition date | $31,143 | ||
Nonaccretable difference | 9,688 | ||
Accretable difference | 4,152 | ||
Basis in loans at acquisition date | 17,303 | ||
Merger with Community Bancshares, Inc. | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Contractually required payments receivable at acquisition date | 26,032 | ||
Nonaccretable difference | 3,498 | ||
Expected cash flows at acquisition date | 22,534 | ||
Accretable difference | 2,234 | ||
Basis in loans at acquisition date | 20,300 | ||
Merger with CFS Bancorp, Inc. (Citizens) | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Contractually required payments receivable at acquisition date | 109,839 | ||
Nonaccretable difference | 22,679 | ||
Expected cash flows at acquisition date | 87,160 | ||
Accretable difference | 3,502 | ||
Basis in loans at acquisition date | $83,658 |
Premises_and_Equipment_Details
Premises and Equipment - (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Premises and Equipment [Line Items] | ||
Premises and Equipment | $175,430 | $164,959 |
Accumulated Depreciation and Amortization | -97,739 | -90,505 |
Net | 77,691 | 74,454 |
Land | ||
Premises and Equipment [Line Items] | ||
Premises and Equipment | 19,373 | 17,992 |
Buildings and Leasehold Improvements | ||
Premises and Equipment [Line Items] | ||
Premises and Equipment | 99,451 | 92,693 |
Equipment | ||
Premises and Equipment [Line Items] | ||
Premises and Equipment | $56,606 | $54,274 |
Premises_and_Equipment_Narrati
Premises and Equipment - Narrative (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Rent expense | $3,258 | $2,608 | $2,812 |
Premises_and_Equipment_Schedul
Premises and Equipment - Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment [Abstract] | |
2015 | $2,778 |
2016 | 2,207 |
2017 | 1,514 |
2018 | 844 |
2019 | 537 |
After 2019 | 2,724 |
Total Future Minimum Obligations | $10,604 |
Goodwill_Narrative_Details
Goodwill - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 07, 2014 | Nov. 12, 2013 | |
Business Acquisition [Line Items] | ||||
Goodwill acquired | $13,776,000 | $47,573,000 | ||
Goodwill impairment loss | 0 | 0 | ||
Merger with Community Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired | 13,776,000 | |||
Merger with CFS Bancorp, Inc. (Citizens) | ||||
Business Acquisition [Line Items] | ||||
Goodwill acquired | $47,573,000 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Goodwill Beginning Balance | $188,948 | $141,375 |
Goodwill acquired | 13,776 | 47,573 |
Goodwill Ending Balance | $202,724 | $188,948 |
Core_Deposit_and_Other_Intangi2
Core Deposit and Other Intangibles - Narrative (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 07, 2014 | Nov. 12, 2013 |
Business Acquisition [Line Items] | |||||
Core deposit amortization | $2,445 | $1,649 | $1,927 | ||
Merger with Community Bancshares, Inc. | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | 4,658 | ||||
Merger with CFS Bancorp, Inc. (Citizens) | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | $7,313 |
Core_Deposit_and_Other_Intangi3
Core Deposit and Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | $53,702 | $46,389 |
Core deposit intangible and other intangibles acquired | 4,658 | 7,313 |
Accumulated amortization | -42,329 | -39,884 |
Core Deposit and Other Intangibles | $16,031 | $13,818 |
Core_Deposit_and_Other_Intangi4
Core Deposit and Other Intangibles - Schedule of Estimated Amortization Expense (details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2015 | $2,884 | |
2016 | 2,817 | |
2017 | 2,723 | |
2018 | 1,542 | |
2019 | 1,293 | |
After 2019 | 4,772 | |
Core Deposit and Other Intangibles | $16,031 | $13,818 |
Deposits_Schedule_of_Deposits_
Deposits - Schedule of Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Demand deposits | $2,146,492 | $2,018,650 |
Savings deposits | 1,376,707 | 1,257,994 |
Certificates and other time deposits of $100,000 or more | 260,685 | 272,660 |
Other certificates and time deposits | 523,010 | 595,110 |
Brokered deposits | 333,800 | 87,054 |
Total Deposits | $4,640,694 | $4,231,468 |
Deposits_Schedule_of_Contractu
Deposits - Schedule of Contractual Maturities of Time Deposits (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Time Deposits, Fiscal Year Maturity [Abstract] | |
2015 | $469,352 |
2016 | 256,921 |
2017 | 144,348 |
2018 | 87,234 |
2019 | 52,792 |
After 2019 | 106,848 |
Total | $1,117,495 |
Borrowings_Schedule_of_Debt_De
Borrowings - Schedule of Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Federal funds purchased | $15,381 | $125,645 |
Securities sold under repurchase agreements | 124,539 | 148,672 |
Federal Home Loan Bank advances | 145,264 | 122,140 |
Subordinated debentures and term loans | 126,810 | 126,807 |
Total Borrowings | $411,994 | $523,264 |
Borrowings_Schedule_of_Maturit
Borrowings - Schedule of Maturities of Long Term Debt (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities Sold Under Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
2015 | $124,539 | |
2016 | ||
Total | 124,539 | |
Maximum Amount Outstanding During Period | 155,941 | 161,814 |
Average Outstanding Amount | 130,910 | 140,126 |
Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
2015 | 30,780 | |
2016 | 41,225 | |
2017 | 15,018 | |
2018 | 25,637 | |
2019 | 12,503 | |
After 2019 | 20,101 | |
Total | 145,264 | |
Subordinated Debentures and Term Loans | ||
Debt Instrument [Line Items] | ||
2015 | 108 | |
2017 | ||
After 2019 | 126,702 | |
Total | $126,810 | $126,807 |
Borrowings_Narrative_Details
Borrowings - Narrative (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2013 | Sep. 15, 2012 | Jul. 02, 2007 | |
investor | |||||
Debt Instrument [Line Items] | |||||
Required value of assets pledged as collateral as a percentage to outstanding advances | 146.00% | ||||
Interest Rate, Minimum | 0.43% | ||||
Interest Rate, Maximum | 6.81% | ||||
Total available remaining borrowing capacity from FHLB | $399,188,000 | ||||
Private debt issuance, number of institutional investors | 4 | ||||
US Bank, NA | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Line of credit maximum borrowing capacity | 20,000,000 | ||||
Line of credit | 0 | ||||
5% Senior Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | 5,000,000 | ||||
Interest rate on notes | 5.00% | ||||
6.75% Subordinated Notes Due 2028 | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | 65,000,000 | ||||
Interest rate on notes | 6.75% | ||||
Subordinated Debentures and Term Loans | |||||
Debt Instrument [Line Items] | |||||
Total Debt | 126,810,000 | 126,807,000 | |||
Subordinated Debt | First Merchant Capital Trust II | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | 70,000,000 | 56,702,000 | |||
Interest rate on notes | 1.80% | 1.70% | 6.50% | ||
Basis spread on variable rate | 1.56% | ||||
Revolving Credit Facility | Line of Credit | Bank Of America, N.A. | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | 55,000,000 | 55,000,000 | |||
Term Loan | Line of Credit | Bank Of America, N.A. | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | 5,000,000 | ||||
Subordinated Debt | Line of Credit | Bank Of America, N.A. | |||||
Debt Instrument [Line Items] | |||||
Line of credit maximum borrowing capacity | 50,000,000 | ||||
Three Month LIBOR | Subordinated Debt | First Merchant Capital Trust II | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.56% | ||||
One Month LIBOR | US Bank, NA | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Detail) (Interest Rate Contract, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | $137 | $1,162 |
Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | 2,650 | 1,021 |
Not Designated as Hedging Instrument | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives | 3,730 | 2,847 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives | $3,887 | $2,932 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Narrative (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Derivative [Line Items] | |
Termination value of derivatives in a net liability position | $6,785 |
Derivative collateral posted | 7,411 |
Not Designated as Hedging Instrument | |
Derivative [Line Items] | |
Notional amount of interest rate derivatives | 155,891 |
Cash Flow Hedging | |
Derivative [Line Items] | |
Estimated amount to be transferred from OCI to earnings | 1,341 |
Interest Rate Swap | |
Derivative [Line Items] | |
Number of Interest Rate Derivatives Held | 5 |
Notional amount of interest rate derivatives | 56,000 |
Interest Rate Swap | Cash Flow Hedging | Federal Home Loan Bank Advances | |
Derivative [Line Items] | |
Notional amount of interest rate derivatives | 30,000 |
Interest rate cap | |
Derivative [Line Items] | |
Number of Interest Rate Derivatives Held | 1 |
Notional amount of interest rate derivatives | 13,000 |
Trust Preferred Securities | Interest Rate Swap | Cash Flow Hedging | |
Derivative [Line Items] | |
Notional amount of interest rate derivatives | 26,000 |
Trust Preferred Securities | Interest rate cap | Cash Flow Hedging | |
Derivative [Line Items] | |
Notional amount of interest rate derivatives | $13,000 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Income Statement (Detail) (Interest Rate Contract, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Amount of Loss Recognized in Other Comprehensive Income on Derivative (Effective Portion) | ($3,996) | $2,374 | |
Cash Flow Hedging | Interest Expense | |||
Derivative [Line Items] | |||
Amount of Loss Reclassified from Other Comprehensive Income Into Income (Effective Portion) | -1,411 | -935 | -217 |
Not Designated as Hedging Instrument | Other Income | |||
Derivative [Line Items] | |||
Amount of Gain (Loss) Recognized Income on Derivative | ($73) | $247 | ($79) |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments - Narrative (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross gains on securities sold | $3,581,000 | $487,000 | $2,389,000 | |
Investment securities available for sale | 549,543,000 | 536,201,000 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities available for sale | 6,646,000 | 9,977,000 | ||
Significant Unobservable Inputs (Level 3) | Available for Sale Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfer between Levels 1, 2 and 3 | 350,000 | |||
Significant Unobservable Inputs (Level 3) | Held to Maturity Securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Transfer between Levels 1, 2 and 3 | -16,784,000 | |||
Corporate obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross gains on securities sold | 1,900,000 | |||
Accumulated OTTI on securities | 9,400,000 | |||
Net impairment losses recognized in earnings | $500,000 |
Fair_Values_of_Financial_Instr3
Fair Values of Financial Instruments - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | $549,543 | $536,201 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 542,897 | 526,224 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 6,646 | 9,977 |
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 | 6,537 | 3,953 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 15,973 | |
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 | 109 | 3,545 |
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 | 221,982 | 223,752 |
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 | 319,104 | 281,252 |
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 | 3,730 | 3,619 |
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 | 137 | 390 |
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 | 6,611 | 7,235 |
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 | 31 | 2,738 |
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 | Fair Value, Measurements, Recurring | Interest rate swap liability | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liability derivatives | 6,537 | 3,953 |
Fair Value | Fair Value, Measurements, Recurring | U.S. Treasury | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 15,973 | |
Fair Value | Fair Value, Measurements, Recurring | U.S. Government-sponsored agency securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 109 | 3,545 |
Fair Value | Fair Value, Measurements, Recurring | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 228,593 | 230,987 |
Fair Value | Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 319,104 | 281,252 |
Fair Value | Fair Value, Measurements, Recurring | Corporate obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 31 | 2,738 |
Fair Value | Fair Value, Measurements, Recurring | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities available for sale | 1,706 | 1,706 |
Fair Value | Fair Value, Measurements, Recurring | Interest rate swap asset | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 3,730 | 3,619 |
Fair Value | Fair Value, Measurements, Recurring | Interest rate cap | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | $137 | $390 |
Fair_Values_of_Financial_Instr4
Fair Values of Financial Instruments - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Detail) (Fair Value, Measurements, Recurring, Available for Sale Securities, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Measurements, Recurring | Available for Sale Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $9,977 | $18,328 |
Included in other comprehensive income | 3,656 | 1,330 |
Purchases, issuances, and settlements | 7,590 | |
Transfers in/(out) of Level 3 | -16,434 | |
Principal (payments)/additions | -6,987 | -837 |
Ending balance | $6,646 | $9,977 |
Fair_Values_of_Financial_Instr5
Fair Values of Financial Instruments - Transfer Between Levels 1, 2 and 3 and Reasons For Those Transfers (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Available-for-sale securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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. |
Held to Maturity Securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Reason for Transfer | Selected state and municipal securities were transferred from available for sale to held to maturity. These securities are valued at amortized cost and are no longer classified within the fair value hierarchy. |
Significant Other Observable Inputs (Level 2) | Available-for-sale securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Transfer between Levels 1, 2 and 3 | -350 |
Significant Other Observable Inputs (Level 2) | Held to Maturity Securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Transfer between Levels 1, 2 and 3 | |
Significant Unobservable Inputs (Level 3) | Available-for-sale securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Transfer between Levels 1, 2 and 3 | 350 |
Significant Unobservable Inputs (Level 3) | Held to Maturity Securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Transfer between Levels 1, 2 and 3 | -16,784 |
Fair_Values_of_Financial_Instr6
Fair Values of Financial Instruments - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
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 | $17,134 | $12,117 |
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 | 5,155 | 6,877 |
Fair Value | Impaired Loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | 17,134 | 12,117 |
Fair Value | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset fair value | $5,155 | $6,877 |
Fair_Values_of_Financial_Instr7
Fair Values of Financial Instruments - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Discounted Cash Flow | State and municipal securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 6,611 | 7,235 |
Discounted Cash Flow | State and municipal securities | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Maturity/Call date | 1 month | 1 month |
Blend of US Muni BQ curve | A- | A- |
Discount rate | 0.90% | 1.00% |
Discounted Cash Flow | State and municipal securities | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Maturity/Call date | 15 years | 15 years |
Blend of US Muni BQ curve | BBB- | BBB- |
Discount rate | 5.00% | 5.00% |
Discounted Cash Flow | Corporate obligations and Equity securities | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 35 | 2,742 |
Discounted Cash Flow | Corporate obligations and Equity securities | Three Month LIBOR | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Premium for illiquidity | 2.00% | 2.00% |
Collateral Based Measurements | Impaired loans (collateral dependent) | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 17,134 | 12,117 |
Collateral Based Measurements | Impaired loans (collateral dependent) | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.00% | 0.00% |
Collateral Based Measurements | Impaired loans (collateral dependent) | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 50.00% | 50.00% |
Collateral Based Measurements | Impaired loans (collateral dependent) | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 3.00% | 3.00% |
Appraisals | Other real estate owned | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | 5,155 | 6,877 |
Appraisals | Other real estate owned | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions | 0.00% | 0.00% |
Appraisals | Other real estate owned | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions | 20.00% | 20.00% |
Appraisals | Other real estate owned | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions | 7.00% | 2.00% |
Fair_Values_of_Financial_Instr8
Fair Values of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Investment securities available for sale | $549,543 | $536,201 |
Investment securities held to maturity | 647,723 | 560,847 |
Loans held for sale | 7,235 | 5,331 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 118,616 | 109,434 |
Interest-bearing time deposits | 47,520 | 55,069 |
Investment securities available for sale | 549,543 | 536,201 |
Investment securities held to maturity | 631,088 | 559,378 |
Loans held for sale | 7,235 | 5,331 |
Loans | 3,860,901 | 3,564,539 |
FRB and FHLB stock | 41,353 | 38,990 |
Interest rate swap asset | 3,867 | 4,009 |
Interest receivable | 19,984 | 18,672 |
Liabilities: | ||
Deposits | 4,640,694 | 4,231,468 |
Borrowings: | ||
Federal funds purchased | 15,381 | 125,645 |
Securities sold under repurchase agreements | 124,539 | 148,672 |
FHLB Advances | 145,264 | 122,140 |
Subordinated debentures and term loans | 126,810 | 126,807 |
Interest rate swap liability | 6,537 | 3,953 |
Interest payable | 3,201 | 1,771 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 118,616 | 109,434 |
Interest-bearing time deposits | 47,520 | 55,069 |
Liabilities: | ||
Deposits | 3,523,199 | 3,082,117 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investment securities available for sale | 542,897 | 526,224 |
Investment securities held to maturity | 614,457 | 525,998 |
Loans held for sale | 7,235 | 5,331 |
FRB and FHLB stock | 41,353 | 38,990 |
Interest rate swap asset | 3,867 | 4,009 |
Interest receivable | 19,984 | 18,672 |
Liabilities: | ||
Deposits | 1,099,610 | 934,937 |
Borrowings: | ||
Federal funds purchased | 15,381 | 125,645 |
Securities sold under repurchase agreements | 124,539 | 148,852 |
FHLB Advances | 146,669 | 122,962 |
Subordinated debentures and term loans | 92,802 | 82,607 |
Interest rate swap liability | 6,537 | 3,953 |
Interest payable | 3,201 | 1,771 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investment securities available for sale | 6,646 | 9,977 |
Investment securities held to maturity | 33,266 | 34,849 |
Loans | $3,810,912 | $3,506,615 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loan commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $1,617,552 | $1,216,470 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Amounts of commitments | $52,655 | $41,508 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 12, 2013 | Nov. 07, 2014 | Nov. 22, 2013 | Jul. 02, 2013 | Jan. 03, 2013 | Sep. 22, 2011 | Dec. 31, 2011 | |
Class of Stock [Line Items] | ||||||||||
Stockholders' equity | $726,827,000 | $634,923,000 | $552,236,000 | $514,467,000 | ||||||
Dividend reinvestment and stock purchase plan, stockholder's maximum amount of cash payments per quarter in purchase of common stock | 2,500 | |||||||||
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 | ||||||||
Price of preferred stock redeemed | 1,067,000 | 491,000 | 235,000 | |||||||
Preferred stock, shares outstanding | 125 | 125 | ||||||||
Value of stock issued as a part of acquisition | 34,981,000 | 135,642,000 | ||||||||
Merger with CFS Bancorp, Inc. (Citizens) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage of interest acquired | 100.00% | |||||||||
Stock issued as a part of acquisition (in shares) | 7,100,000 | |||||||||
Value of stock issued as a part of acquisition | 135,600,000 | |||||||||
Total purchase price | 135,642,000 | |||||||||
Merger with Community Bancshares, Inc. | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage of interest acquired | 100.00% | |||||||||
Stock issued as a part of acquisition (in shares) | 1,600,000 | |||||||||
Value of stock issued as a part of acquisition | 35,000,000 | |||||||||
Number of shares of common stock | 4.0926 | |||||||||
Share price | $85.94 | |||||||||
Cash paid in acquisition | 14,200,000 | |||||||||
Total purchase price | 49,189,000 | |||||||||
Series B Preferred Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of new stock issued during the period (shares) | 90,782.94 | |||||||||
Preferred stock, liquidation value (in dollars per share) | $1,000 | |||||||||
Number of new stock issued during the period value | 90,782,940 | |||||||||
Preferred stock redeemed (in shares) | 34,043 | 34,044 | 22,695.94 | |||||||
Price of preferred stock redeemed | 34,043,000 | 34,044,000 | 22,695,940 | |||||||
Preferred stock, shares outstanding | 0 | 34,043 | 68,087 | |||||||
Series B Preferred Stock remaining liquidation amount | 34,000,000 | 68,000,000 | ||||||||
Subsidiaries | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount available for dividends | 23,340,000 | |||||||||
Stockholders' equity | 818,420,000 | |||||||||
Stockholders' equity restricted from dividend distribution | $795,080,000 | |||||||||
CFS Bancorp | Merger with CFS Bancorp, Inc. (Citizens) | ||||||||||
Class of Stock [Line Items] | ||||||||||
Percentage of common stock received per shares owned through acquisition | 0.65% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income [Roll Forward] | |||
AOCI - beginning balance | ($6,410) | ($5,499) | |
Other comprehensive income before reclassifications | 6,528 | -2,349 | |
Amounts reclassified from accumulated other comprehensive income | -1,748 | 1,438 | |
Period change | 4,780 | -911 | -1,897 |
AOCI - ending balance | -1,630 | -6,410 | -5,499 |
Unrealized Gains (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
AOCI - beginning balance | 1,566 | 17,904 | |
Other comprehensive income before reclassifications | 14,860 | -16,021 | |
Amounts reclassified from accumulated other comprehensive income | -2,328 | -317 | |
Period change | 12,532 | -16,338 | |
AOCI - ending balance | 14,098 | 1,566 | |
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 | -1,847 | -3,272 | |
Other comprehensive income before reclassifications | 1,847 | 1,425 | |
Amounts reclassified from accumulated other comprehensive income | |||
Period change | 1,847 | 1,425 | |
AOCI - ending balance | 0 | -1,847 | |
Unrealized Gains (Losses) on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
AOCI - beginning balance | -501 | -2,652 | |
Other comprehensive income before reclassifications | -2,599 | 1,543 | |
Amounts reclassified from accumulated other comprehensive income | 918 | 608 | |
Period change | -1,681 | 2,151 | |
AOCI - ending balance | -2,182 | -501 | |
Unrealized Gains (Losses) on Defined Benefit Plans | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||
AOCI - beginning balance | -5,628 | -17,479 | |
Other comprehensive income before reclassifications | -7,580 | 10,704 | |
Amounts reclassified from accumulated other comprehensive income | -338 | 1,147 | |
Period change | -7,918 | 11,851 | |
AOCI - ending balance | ($13,546) | ($5,628) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense - subordinated debentures and term loans | ($6,616) | ($3,531) | ($5,213) | ||||||||
Other expenses - salaries and employee benefits | -96,499 | -85,413 | -79,398 | ||||||||
Income tax expense | -5,517 | -5,862 | -5,642 | -4,369 | -3,187 | -2,667 | -4,155 | -4,668 | -21,390 | -14,677 | -15,867 |
NET INCOME | 15,260 | 16,122 | 15,160 | 13,620 | 11,447 | 10,403 | 10,815 | 11,865 | 60,162 | 44,530 | 45,122 |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | |||||||||||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
NET INCOME | 1,748 | -1,438 | 1,478 | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 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 | 3,581 | 487 | 2,389 | ||||||||
Income tax expense | -1,253 | -170 | -835 | ||||||||
NET INCOME | 2,328 | 317 | 1,554 | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 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 | -1,411 | -935 | -217 | ||||||||
Income tax expense | 493 | 327 | 76 | ||||||||
NET INCOME | -918 | -608 | -141 | ||||||||
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) 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 | 520 | -1,765 | 100 | ||||||||
Income tax expense | -182 | 618 | -35 | ||||||||
NET INCOME | $338 | ($1,147) | $65 |
Regulatory_Capital_Details
Regulatory Capital (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Capital [Abstract] | ||
Total Capital (to Risk-weighted Assets), Actual Amount | $685,507 | $599,966 |
Total Capital (to Risk-weighted Assets) Required for Adequate Capital, Amount | 357,581 | 330,107 |
Tier One Risk Based Capital [Abstract] | ||
Tier I Capital (to Risk-weighted Assets), Actual Amount | 564,535 | 483,186 |
Tier I Capital (to Risk-weighted Assets) Required for Adequate Capital, Amount | 178,791 | 165,053 |
Tier One Leverage Capital [Abstract] | ||
Tier I Capital (to Average Assets), Actual | 564,535 | 483,186 |
Tier I Capital (to Average Assets) Required for Adequate Capital, Amount | 222,533 | 189,485 |
Risk Based Ratios [Abstract] | ||
Total Capital (to Risk-weighted Assets) Actual Ratio | 15.34% | 14.54% |
Total Capital (to Risk-weighted Assets) Required for Adequate Capital, Ratio | 8.00% | 8.00% |
Tier I Capital (to Risk-weighted Assets), Ratio | 12.63% | 11.71% |
Tier I Capital (to Risk-weighted Assets) Required for Adequate Capital, Ratio | 4.00% | 4.00% |
Leverage Ratios [Abstract] | ||
Tier I Capital (to Average Assets), Ratio | 10.15% | 10.20% |
Tier I Capital (to Average Assets) Required for Adequate Capital, Ratio | 4.00% | 4.00% |
First Merchants Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to Risk-weighted Assets) Well Capitalized Ratio | 10.00% | |
Tier I Capital (to Risk-weighted Assets) Well Capitalized Ratio | 6.00% | |
Tier I Capital (to Average Assets) Well Capitalized Ratio | 5.00% | |
Capital [Abstract] | ||
Total Capital (to Risk-weighted Assets), Actual Amount | 653,169 | 599,272 |
Total Capital (to Risk-weighted Assets) Required for Adequate Capital, Amount | 356,884 | 329,344 |
Tier One Risk Based Capital [Abstract] | ||
Tier I Capital (to Risk-weighted Assets), Actual Amount | 597,305 | 547,655 |
Tier I Capital (to Risk-weighted Assets) Required for Adequate Capital, Amount | 178,442 | 164,672 |
Tier One Leverage Capital [Abstract] | ||
Tier I Capital (to Average Assets), Actual | 597,305 | 547,655 |
Tier I Capital (to Average Assets) Required for Adequate Capital, Amount | $226,339 | $189,095 |
Risk Based Ratios [Abstract] | ||
Total Capital (to Risk-weighted Assets) Actual Ratio | 14.64% | 14.56% |
Total Capital (to Risk-weighted Assets) Required for Adequate Capital, Ratio | 8.00% | 8.00% |
Tier I Capital (to Risk-weighted Assets), Ratio | 13.39% | 13.30% |
Tier I Capital (to Risk-weighted Assets) Required for Adequate Capital, Ratio | 4.00% | 4.00% |
Leverage Ratios [Abstract] | ||
Tier I Capital (to Average Assets), Ratio | 10.56% | 11.58% |
Tier I Capital (to Average Assets) Required for Adequate Capital, Ratio | 4.00% | 4.00% |
Loan_Servicing_Details
Loan Servicing (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Banking and Thrift [Abstract] | |||
Unpaid balance of loans serviced for others | $254,223 | $271,871 | $167,879 |
ShareBased_Compensation_Narrat
Share-Based Compensation - Narrative (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
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 | $2,177,000 | $1,773,000 | $1,492,000 | |
Estimated pre-vesting forfeiture rate | 5.50% | |||
Weighted-average grant date fair value for stock options (in dollars per share) | $8.13 | $5.73 | $3.97 | |
Aggregate intrinsic value of stock options exercised | 392,000 | 143,000 | ||
Stock options exercised | 504,000 | 115,000 | 78,000 | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock purchases through advance payroll deductions in a calendar year | 25,000 | |||
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 | 5.46% | 4.73% | 4.77% | |
Unrecognized compensation expense | 4,000 | 4,000 | ||
Unrecognized compensation expense expected recognition period | 0 years 1 month 20 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 | 2,618,000 | 2,618,000 | ||
Unrecognized compensation expense expected recognition period | 1 year 1 month 28 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 | $20,000 |
ShareBased_Compensation_Assump
Share-Based Compensation - Assumptions Used (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Forfeiture rate | 5.50% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.41% | 1.25% | 1.36% |
Expected price volatility | 45.05% | 45.68% | 46.22% |
Dividend yield | 2.73% | 2.96% | 3.29% |
Forfeiture rate | 5.46% | 4.73% | 4.77% |
Weighted-average expected life, until exercise | 7 years 8 months 28 days | 7 years 3 months 9 days | 7 years 2 months 12 days |
ShareBased_Compensation_Compon
Share-Based Compensation - Components of Awards (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | $2,177 | $1,773 | $1,492 |
Income tax benefit | -726 | -547 | -451 |
Total share-based compensation expense, net of income taxes | 1,451 | 1,226 | 1,041 |
Stock and ESPP Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 237 | 253 | 284 |
Income tax benefit | -47 | -16 | -23 |
Total share-based compensation expense, net of income taxes | 190 | 237 | 261 |
Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | 1,940 | 1,520 | 1,208 |
Income tax benefit | -679 | -531 | -428 |
Total share-based compensation expense, net of income taxes | $1,261 | $989 | $780 |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | |
Number of Shares | ||
Beginning balance | 958,786 | |
Granted | 13,500 | |
Exercised | -41,249 | |
Canceled | -193,106 | |
Ending balance | 737,931 | |
Vested and Expected to Vest, Number of Shares | 737,931 | |
Exercisable, Number of Shares | 715,431 | |
Weighted-Average Exercise Price | ||
Beginning balance | $21.32 | $21.58 |
Granted | $21.65 | |
Exercised | $12.21 | |
Canceled | $24.42 | |
Ending balance | $20.99 | $21.58 |
Vested and Expected to Vest, Weighted-Average Exercise Price | $20.99 | |
Exercisable, Weighted-Average Exercise Price | $21.05 | |
Weighted Average Remaining Contractual Term (in Years) | ||
Outstanding (in years) | 3 years 1 month 0 days | |
Vested and Expected to Vest (in years) | 3 years 1 month 0 days | |
Exercisable (in years) | 2 years 10 months 25 days | |
Aggregate Intrinsic Value | ||
Outstanding | $2,645,356 | |
Vested and Expected to Vest | 2,645,356 | |
Exercisable | $2,563,636 |
ShareBased_Compensation_Unvest
Share-Based Compensation - Unvested RSAs Outstanding (Detail) (Restricted Stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Number of Shares | |
Unvested RSAs, Beginning Balance | 429,002 |
Granted | 98,611 |
Forfeited | -9,717 |
Vested | -132,446 |
Unvested RSAs, Ending Balance | 385,450 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning Balance | $12.51 |
Granted | $20.54 |
Forfeited | $15.78 |
Vested | $9.16 |
Unvested RSAs, Ending Balance | $15.65 |
Pension_and_Other_Post_Retirem2
Pension and Other Post Retirement Benefit Plans - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 01, 2005 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of employees covered by plan | 25.00% | |||
Minimum participant attained age | 55 years | |||
Requisite service period | 10 years | |||
Discount rate | 4.00% | 4.80% | 4.00% | |
Percentage of the premiums paid by plan participants | 100.00% | |||
Accumulated benefit obligation | $80,650 | $62,263 | ||
Amount of discretionary contributions made by employer to defined contribution plan, percent | 50.00% | |||
Maximum annual contribution percentage per employee | 6.00% | |||
Requisite service period | 1000 hours | |||
Employer percentage contribution | 2.00% | |||
Vesting period | 5 years | |||
Expense recognized in the period | 3,396 | 3,138 | 2,914 | |
Obligations payable | 1,811 | 1,534 | ||
Post retirement plan expense | 97 | 519 | 477 | |
Fair value of plan assets | 77,139 | 69,871 | 62,865 | |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Age of plan participants | 55 years | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Age of plan participants | 65 years | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 57,413 | 51,176 | ||
Significant Other Observable Inputs (Level 2) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $19,726 | $18,695 | ||
Debt securities | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maturities of debt securities | 15 days | 2 days | ||
Debt securities | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maturities of debt securities | 9 years 7 months 3 days | 9 years 7 months 10 days | ||
Debt securities | Weighted Average | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Maturities of debt securities | 5 years 0 months 7 days | 4 years 7 months 18 days |
Pension_and_Other_Post_Retirem3
Pension and Other Post Retirement Benefit Plans - Schedule of Changes in Benefit Obligation, and Plan Assets, Funded Status of the Plan, Assets and Liabilities Recognized in the Balance Sheets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in Benefit Obligation: | |||
Benefit obligation at beginning of year | $62,270 | $69,166 | |
Service cost | 73 | 131 | 161 |
Interest cost | 3,235 | 2,670 | 2,990 |
Actuarial loss (gain) | 12,968 | -5,597 | |
Benefits paid | -5,541 | -4,100 | |
Net transfers in from CFS acquisition | 7,645 | ||
Benefit obligation at end of year | 80,650 | 62,270 | 69,166 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 69,871 | 62,865 | |
Actual return on plan assets | 5,232 | 10,610 | |
Employer contributions | 504 | 496 | |
Benefits paid | -5,541 | -4,100 | |
CFS acquisition | 7,073 | ||
End of year | 77,139 | 69,871 | 62,865 |
Funded status at end of year | -3,511 | 7,601 | |
Assets and Liabilities Recognized in the Balance Sheets: | |||
Deferred tax asset | 8,541 | 4,266 | |
Assets | 1,329 | 12,383 | |
Liabilities | 4,840 | 4,782 | |
Amounts Recognized in Accumulated Other Comprehensive Income Not Yet Recognized as Components of Net Periodic (Benefit) Cost Consist of: | |||
Accumulated loss | -15,863 | -7,922 | |
Prior service credit | -346 | -28 | |
Total | ($16,209) | ($7,950) |
Pension_and_Other_Post_Retirem4
Pension and Other Post Retirement Benefit Plans - Schedule of Accumulated Benefit Obligation in Excess of Plan Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $4,840 | $4,782 |
Accumulated benefit obligation | 4,840 | 4,782 |
Fair value of plan assets |
Pension_and_Other_Post_Retirem5
Pension and Other Post Retirement Benefit Plans - Schedule of Net Periodic Benefit Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $73 | $131 | $161 |
Interest cost | 3,235 | 2,670 | 2,990 |
Expected return on plan assets | -4,467 | -4,265 | -4,216 |
Amortization of prior service costs | 81 | 25 | 25 |
Amortization of net loss | 478 | 2,131 | 2,207 |
Net periodic pension (benefit) cost | ($600) | $692 | $1,167 |
Pension_and_Other_Post_Retirem6
Pension and Other Post Retirement Benefit Plans - Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension (benefit) cost | $600 | ($692) | ($1,167) |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension (benefit) cost | -600 | 692 | 1,167 |
Net gain (loss) | -12,203 | 11,942 | -1,242 |
Amortization of loss | 478 | 2,131 | 2,207 |
Amortization of prior service cost | 81 | 25 | 25 |
Total recognized in other comprehensive income (loss) | -11,644 | 14,098 | 990 |
Total recognized in net periodic pension cost and other comprehensive income (loss) | ($11,044) | $13,406 | ($177) |
Pension_and_Other_Post_Retirem7
Pension and Other Post Retirement Benefit Plans - Amount To Be Amortized From Accumulated Other Comprehensive Income, Next Fiscal Year (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |||
Amortization of net loss | ($1,770) | ($533) | ($2,158) |
Amortization of prior service cost | -64 | -25 | -25 |
Total | ($1,834) | ($558) | ($2,183) |
Pension_and_Other_Post_Retirem8
Pension and Other Post Retirement Benefit Plans - Schedule of Weighted Average Assumptions Used to Determine Benefit Obligation and Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted-average Assumptions Used to Determine Benefit Obligation: | |||
Discount rate | 4.00% | 4.80% | 4.00% |
Rate of compensation increase for accruing active participants | 3.00% | 3.00% | 3.00% |
Weighted-average Assumptions Used to Determine Cost: | |||
Discount rate | 4.80% | 4.00% | 4.50% |
Expected return on plan assets | 6.00% | 7.00% | 7.00% |
Rate of compensation increase for accruing active participants | 3.00% | 3.00% | 4.00% |
Pension_and_Other_Post_Retirem9
Pension and Other Post Retirement Benefit Plans - Schedule of Expected Future Benefit Payments (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $4,761 |
2016 | 4,757 |
2017 | 4,751 |
2018 | 4,783 |
2019 | 4,997 |
After 2019 | 25,125 |
Total | $49,174 |
Recovered_Sheet1
Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Category (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Plan Asset Allocations | 100.00% | 100.00% |
Target Plan Asset Allocations | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Plan Asset Allocations | 2.60% | 2.70% |
Target Plan Asset Allocations | 2.00% | 2.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Plan Asset Allocations | 58.70% | 62.20% |
Target Plan Asset Allocations | 60.00% | 60.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Plan Asset Allocations | 36.50% | 33.20% |
Target Plan Asset Allocations | 36.00% | 36.00% |
Alternative investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Plan Asset Allocations | 2.20% | 1.90% |
Target Plan Asset Allocations | 2.00% | 2.00% |
Recovered_Sheet2
Pension and Other Post Retirement Benefit Plans - Schedule of Plan Assets by Level (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $77,139 | $69,871 | $62,865 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 57,413 | 51,176 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,032 | 1,864 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 9,384 | 6,076 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,376 | 1,375 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Taxable Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4,987 | 3,901 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Large Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 21,185 | 20,617 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mid Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 9,434 | 8,721 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Small Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,872 | 3,584 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,474 | 3,727 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Specialty Alternative Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,669 | 1,311 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 19,726 | 18,695 | |
Significant Other Observable Inputs (Level 2) | Government Agency and Municipal Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8,252 | 8,263 | |
Significant Other Observable Inputs (Level 2) | Certificates of Deposit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,001 | 607 | |
Significant Other Observable Inputs (Level 2) | Common Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4,615 | 5,318 | |
Significant Other Observable Inputs (Level 2) | Common Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5,858 | 4,507 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 77,139 | 69,871 | |
Fair Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,032 | 1,864 | |
Fair Value | Corporate Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 9,384 | 6,076 | |
Fair Value | Government Agency and Municipal Bonds and Notes | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8,252 | 8,263 | |
Fair Value | Certificates of Deposit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,001 | 607 | |
Fair Value | Common Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,376 | 1,375 | |
Fair Value | Common Bond Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4,615 | 5,318 | |
Fair Value | Common Equity Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 5,858 | 4,507 | |
Fair Value | Taxable Bond | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4,987 | 3,901 | |
Fair Value | Large Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 21,185 | 20,617 | |
Fair Value | Mid Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 9,434 | 8,721 | |
Fair Value | Small Cap Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,872 | 3,584 | |
Fair Value | International Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 3,474 | 3,727 | |
Fair Value | Specialty Alternative Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $1,669 | $1,311 |
Income_Tax_Details
Income Tax (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Currently Payable: | |||||||||||
Federal | ($1,661) | $738 | ($23) | ||||||||
Deferred: | |||||||||||
Federal | 22,541 | 13,939 | 15,890 | ||||||||
State | 510 | ||||||||||
Total Income Tax Expense | 5,517 | 5,862 | 5,642 | 4,369 | 3,187 | 2,667 | 4,155 | 4,668 | 21,390 | 14,677 | 15,867 |
Reconciliation of Federal Statutory to Actual Tax Expense: | |||||||||||
Federal Statutory Income Tax at 35% | 28,543 | 20,722 | 21,347 | ||||||||
Tax-exempt Interest Income | -5,148 | -3,923 | -3,716 | ||||||||
Stock Compensation | 36 | 50 | 76 | ||||||||
Earnings on Life Insurance | -1,271 | -905 | -1,187 | ||||||||
Tax Credits | -911 | -857 | -73 | ||||||||
Other | 141 | -410 | -580 | ||||||||
Total Income Tax Expense | $5,517 | $5,862 | $5,642 | $4,369 | $3,187 | $2,667 | $4,155 | $4,668 | $21,390 | $14,677 | $15,867 |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
Income_Tax_Deferred_Tax_Assets
Income Tax - Deferred Tax Assets and Liabilities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||
Differences in Accounting for Loan Losses | $26,665 | $28,064 |
Differences in Accounting for Loan Fees | 747 | 736 |
Differences in Accounting for Loans and Securities | 9,910 | 13,579 |
Deferred Compensation | 5,234 | 5,479 |
Difference in Accounting for Pensions and Other Employee Benefits | 1,084 | |
Federal & State Income Tax Loss Carryforward and Credits | 23,977 | 24,981 |
Net Unrealized Loss on Securities Available for Sale | 151 | |
Other | 8,535 | 12,828 |
Total Assets | 76,152 | 85,818 |
Liabilities: | ||
Differences in Depreciation Methods | 8,220 | 8,008 |
Difference in Accounting for Pensions and Other Employee Benefits | 1,096 | |
State Income Tax | 591 | 354 |
Net Unrealized Gain on Securities Available for Sale | 7,591 | |
Gain on FDIC Modified Whole Bank Transaction | 1,694 | 2,147 |
Other | 1,096 | 1,257 |
Total Liabilities | 19,192 | 12,862 |
Net Deferred Tax Asset Before Valuation Allowance | 56,960 | 72,956 |
Valuation allowance: | ||
Beginning Balance | -17,171 | -13,859 |
Decrease/(Increase) During the Year | -397 | -3,312 |
Ending Balance | -17,568 | -17,171 |
Net Deferred Tax Asset | $39,392 | $55,785 |
Income_Tax_Narrative_Details
Income Tax - Narrative (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance [Line Items] | |||
Tax expense applicable to security gains and losses, including unrealized losses relating to other-than-temporary charges | $760 | $157 | $759 |
Increase (decrease) in deferred tax assets | 16,393 | ||
Valuation allowance | 17,568 | 17,171 | 13,859 |
Additional paid-in capital | 431,220 | 393,783 | |
Unrecorded deferred tax liability | 4,688 | ||
Merger with CFS Bancorp, Inc. (Citizens) | |||
Valuation Allowance [Line Items] | |||
Additional paid-in capital | 13,393 | ||
State and Local Jurisdiction | |||
Valuation Allowance [Line Items] | |||
Valuation allowance | 17,568 | ||
State tax loss carryforward | 143,467 | ||
Valuation allowance on state loss carryforward | 142,358 | ||
Available-for-sale securities | |||
Valuation Allowance [Line Items] | |||
Increase in deferred tax liability | 7,742 | ||
Deferred Compensation | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in deferred tax assets | -2,180 | ||
Loans | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in deferred tax assets | 3,669 | ||
Other than temporary impairment on securities | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in deferred tax assets | 3,261 | ||
Other real estate owned | |||
Valuation Allowance [Line Items] | |||
Increase (decrease) in deferred tax assets | $1,988 |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income | $15,260 | $16,122 | $15,160 | $13,620 | $11,447 | $10,403 | $10,815 | $11,865 | $60,162 | $44,530 | $45,122 |
Preferred stock dividends | -241 | -430 | -852 | -857 | -2,380 | -4,539 | |||||
Net income available to common stockholders | 15,260 | 16,122 | 15,160 | 13,620 | 11,206 | 9,973 | 9,963 | 11,008 | 60,162 | 42,150 | 40,583 |
Net income available to common stockholders | $60,162 | $42,150 | $40,583 | ||||||||
Weighted-Average Shares | |||||||||||
Net income available to common stockholders | 37,018,014 | 36,054,867 | 36,026,763 | 35,956,436 | 32,597,145 | 28,806,809 | 28,783,407 | 28,716,987 | 36,266,356 | 29,731,420 | 28,632,915 |
Effect of dilutive stock options and warrants | 288,253 | 276,960 | 213,769 | ||||||||
Net income available to common stockholders | 37,323,276 | 36,328,981 | 36,294,149 | 36,260,624 | 32,912,605 | 29,081,472 | 29,023,513 | 28,971,238 | 36,554,609 | 30,008,380 | 28,846,684 |
Basic net income per share: | |||||||||||
Net income available to common stockholders | $0.41 | $0.45 | $0.42 | $0.38 | $0.34 | $0.35 | $0.35 | $0.38 | $1.66 | $1.42 | $1.42 |
Diluted net income per share: | |||||||||||
Net income available to common stockholders | $0.41 | $0.45 | $0.41 | $0.38 | $0.34 | $0.35 | $0.34 | $0.38 | $1.65 | $1.41 | $1.41 |
Net_Income_Per_Share_Narrative
Net Income Per Share - Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Stock options not included in the earnings per share calculation (shares) | 543,514 | 800,674 | 820,706 |
Weighted average exercise price (per share) | $20.99 | $21.32 | $21.58 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $53,053 | $53,290 | $51,527 | $51,009 | $45,707 | $40,736 | $40,653 | $43,738 | $208,879 | $170,834 | $175,949 |
Interest expense | 5,893 | 5,424 | 5,408 | 5,117 | 4,572 | 3,714 | 4,003 | 4,280 | 21,842 | 16,569 | 23,613 |
Net interest income | 47,160 | 47,866 | 46,119 | 45,892 | 41,135 | 37,022 | 36,650 | 39,458 | 187,037 | 154,265 | 152,336 |
Provision for loan losses | 960 | 1,600 | 1,016 | 1,533 | 1,997 | 2,102 | 2,560 | 6,648 | 18,534 | ||
Net interest income after provision for loan losses | 46,200 | 46,266 | 46,119 | 45,892 | 40,119 | 35,489 | 34,653 | 37,356 | 184,477 | 147,617 | 133,802 |
Non-interest income | 16,254 | 18,294 | 15,933 | 15,186 | 15,073 | 11,800 | 14,059 | 13,877 | 65,667 | 54,809 | 64,302 |
Non-interest expense | 41,677 | 42,576 | 41,250 | 43,089 | 40,558 | 34,219 | 33,742 | 34,700 | 168,592 | 143,219 | 137,115 |
Income before income tax expense | 20,777 | 21,984 | 20,802 | 17,989 | 14,634 | 13,070 | 14,970 | 16,533 | 81,552 | 59,207 | 60,989 |
Income tax expense | 5,517 | 5,862 | 5,642 | 4,369 | 3,187 | 2,667 | 4,155 | 4,668 | 21,390 | 14,677 | 15,867 |
Net income | 15,260 | 16,122 | 15,160 | 13,620 | 11,447 | 10,403 | 10,815 | 11,865 | 60,162 | 44,530 | 45,122 |
Preferred stock dividends | -241 | -430 | -852 | -857 | -2,380 | -4,539 | |||||
Net income available to common stockholders | $15,260 | $16,122 | $15,160 | $13,620 | $11,206 | $9,973 | $9,963 | $11,008 | $60,162 | $42,150 | $40,583 |
Basic EPS | $0.41 | $0.45 | $0.42 | $0.38 | $0.34 | $0.35 | $0.35 | $0.38 | $1.66 | $1.42 | $1.42 |
Diluted EPS | $0.41 | $0.45 | $0.41 | $0.38 | $0.34 | $0.35 | $0.34 | $0.38 | $1.65 | $1.41 | $1.41 |
Average Shares Outstanding: | |||||||||||
Basic | 37,018,014 | 36,054,867 | 36,026,763 | 35,956,436 | 32,597,145 | 28,806,809 | 28,783,407 | 28,716,987 | 36,266,356 | 29,731,420 | 28,632,915 |
Diluted | 37,323,276 | 36,328,981 | 36,294,149 | 36,260,624 | 32,912,605 | 29,081,472 | 29,023,513 | 28,971,238 | 36,554,609 | 30,008,380 | 28,846,684 |
Condensed_Financial_Informatio2
Condensed Financial Information (parent company only) - Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Goodwill | $202,724 | $188,948 | $141,375 | |
Other assets | 20,764 | 28,997 | ||
TOTAL ASSETS | 5,824,127 | 5,437,262 | ||
LIABILITIES | ||||
Borrowings | 411,994 | 523,264 | ||
Other liabilities | 41,411 | 45,836 | ||
Total liabilities | 5,097,300 | 4,802,339 | ||
Stockholders' equity | 726,827 | 634,923 | 552,236 | 514,467 |
Total liabilities and stockholders' equity | 5,824,127 | 5,437,262 | ||
Parent | ||||
ASSETS | ||||
Cash | 36,044 | 13,228 | ||
Investment in subsidiaries | 820,123 | 745,818 | ||
Goodwill | 448 | 448 | ||
Other assets | 6,281 | 8,695 | ||
TOTAL ASSETS | 862,896 | 768,189 | ||
LIABILITIES | ||||
Borrowings | 126,702 | 126,702 | ||
Other liabilities | 9,367 | 6,564 | ||
Total liabilities | 136,069 | 133,266 | ||
Stockholders' equity | 726,827 | 634,923 | ||
Total liabilities and stockholders' equity | $862,896 | $768,189 |
Condensed_Financial_Informatio3
Condensed Financial Information (parent company only) - Statement of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income | |||||||||||
Other income | $5,705 | $4,197 | $1,808 | ||||||||
Expenses | |||||||||||
Interest expense | 5,893 | 5,424 | 5,408 | 5,117 | 4,572 | 3,714 | 4,003 | 4,280 | 21,842 | 16,569 | 23,613 |
Salaries and employee benefits | 96,499 | 85,413 | 79,398 | ||||||||
Other expenses | 14,239 | 11,142 | 11,505 | ||||||||
INCOME BEFORE INCOME TAX | 20,777 | 21,984 | 20,802 | 17,989 | 14,634 | 13,070 | 14,970 | 16,533 | 81,552 | 59,207 | 60,989 |
Income tax benefit | -5,517 | -5,862 | -5,642 | -4,369 | -3,187 | -2,667 | -4,155 | -4,668 | -21,390 | -14,677 | -15,867 |
Preferred stock dividends | -241 | -430 | -852 | -857 | -2,380 | -4,539 | |||||
Net income available to common stockholders | 15,260 | 16,122 | 15,160 | 13,620 | 11,206 | 9,973 | 9,963 | 11,008 | 60,162 | 42,150 | 40,583 |
Net income | 15,260 | 16,122 | 15,160 | 13,620 | 11,447 | 10,403 | 10,815 | 11,865 | 60,162 | 44,530 | 45,122 |
Other comprehensive income (loss) | 4,780 | -911 | -1,897 | ||||||||
Comprehensive income | 64,942 | 43,619 | 43,225 | ||||||||
Parent | |||||||||||
Income | |||||||||||
Dividends from subsidiaries | 53,231 | 63,732 | 30,096 | ||||||||
Other income | 538 | 45 | 85 | ||||||||
Total income | 53,769 | 63,777 | 30,181 | ||||||||
Expenses | |||||||||||
Interest expense | 6,616 | 3,531 | 4,655 | ||||||||
Salaries and employee benefits | 3,128 | 3,284 | 3,194 | ||||||||
Net occupancy and equipment expenses | 442 | 258 | 312 | ||||||||
Telephone expenses | 27 | 42 | 30 | ||||||||
Postage and courier expenses | 1 | ||||||||||
Other expenses | 1,972 | 2,617 | 1,502 | ||||||||
Total expenses | 12,185 | 9,732 | 9,694 | ||||||||
INCOME BEFORE INCOME TAX | 41,584 | 54,045 | 20,487 | ||||||||
Income tax benefit | 3,999 | 3,153 | 3,316 | ||||||||
Income before equity in undistributed income of subsidiaries | 45,583 | 57,198 | 23,803 | ||||||||
Equity in undistributed (distributions in excess of) income of subsidiaries | 14,579 | -12,668 | 21,319 | ||||||||
Net income | 60,162 | 44,530 | 45,122 | ||||||||
Preferred stock dividends | -2,380 | -4,539 | |||||||||
Net income available to common stockholders | 60,162 | 42,150 | 40,583 | ||||||||
Net income | 60,162 | 44,530 | 45,122 | ||||||||
Other comprehensive income (loss) | 4,780 | -911 | -1,897 | ||||||||
Comprehensive income | $64,942 | $43,619 | $43,225 |
Condensed_Financial_Informatio4
Condensed Financial Information (parent company only) - Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $60,162 | $44,530 | $45,122 |
Adjustments to Reconcile Net Income to Net Cash: | |||
Share-based compensation | 2,177 | 1,773 | 1,492 |
Net Change in: | |||
Net cash provided by operating activities | 75,840 | 183,131 | 70,269 |
Cash Flows from Investing Activities: | |||
Cash received (paid) in acquisition | -14,208 | 17,200 | |
Other | 5,889 | -2,768 | -2,065 |
Net cash provided by (used in) investing activities | -125,991 | -138,162 | 11,886 |
Cash Flows from Financing Activities: | |||
Repayment of borrowings | -789,563 | -163,838 | -271,005 |
Preferred stock redemption under small business lending fund | -90,783 | ||
Stock issued under employee benefit plans | 478 | 479 | 449 |
Stock issued under dividend reinvestment and stock purchase plan | 523 | 325 | 202 |
Stock options exercised | 504 | 115 | 78 |
Stock redeemed | -1,067 | -491 | -235 |
Net cash provided by (used in) financing activities | 59,333 | -36,995 | -54,007 |
Net change in cash | 9,182 | 7,974 | 28,148 |
Cash and Cash Equivalents, January 1 | 109,434 | 101,460 | 73,312 |
Cash and Cash Equivalents, December 31 | 118,616 | 109,434 | 101,460 |
Parent | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 60,162 | 44,530 | 45,122 |
Adjustments to Reconcile Net Income to Net Cash: | |||
Share-based compensation | 887 | 778 | 632 |
Distributions in excess of (equity in undistributed) income of subsidiaries | -14,579 | 12,668 | -21,319 |
Net Change in: | |||
Other assets | 2,425 | -1,354 | 1,902 |
Other liabilities | 1,466 | -8,438 | 1,122 |
Investment in subsidiaries - operating activities | -4,517 | 12,991 | -1,755 |
Net cash provided by operating activities | 45,844 | 61,175 | 25,704 |
Cash Flows from Investing Activities: | |||
Cash Flow From Investing Activities: | -126 | ||
Cash received (paid) in acquisition | -12,832 | ||
Other | 240 | ||
Net cash provided by (used in) investing activities | -12,832 | 240 | -126 |
Cash Flows from Financing Activities: | |||
Cash dividends | -10,694 | -7,992 | -7,442 |
Repayment of borrowings | -55,000 | -4,124 | |
Proceeds from issuance of long-term debt | 70,000 | ||
Preferred stock redemption under small business lending fund | -90,783 | ||
Stock issued under employee benefit plans | 478 | 479 | 449 |
Stock issued under dividend reinvestment and stock purchase plan | 523 | 325 | 202 |
Stock options exercised | 564 | 115 | 78 |
Stock redeemed | -1,067 | -491 | -235 |
Net cash provided by (used in) financing activities | -10,196 | -83,347 | -11,072 |
Net change in cash | 22,816 | -21,932 | 14,506 |
Cash and Cash Equivalents, January 1 | 13,228 | 35,160 | 20,654 |
Cash and Cash Equivalents, December 31 | $36,044 | $13,228 | $35,160 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Common stock, par value per share | $0.13 | $0.13 | |
C Financial Corporation | |||
Business Acquisition [Line Items] | |||
Common stock, par value per share | $1 | ||
Merger with C Financial Corporation | Scenario, Forecast | |||
Business Acquisition [Line Items] | |||
Cash paid in acquisition | $14,500 |