Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST MERCHANTS CORP | |
Entity Central Index Key | 712,534 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FRME | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 40,749,494 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 85,738 | $ 102,170 |
Interest-bearing time deposits | 77,453 | 32,315 |
Investment securities available for sale | 636,785 | 658,400 |
Investment securities held to maturity (fair value of $655,445 and $632,380) | 633,992 | 618,599 |
Loans held for sale | 3,628 | 9,894 |
Loans, net of allowance for loan losses of $62,086 and $62,453 | 4,647,821 | 4,631,369 |
Premises and equipment | 96,494 | 97,648 |
Federal Reserve and Federal Home Loan Bank stock | 37,553 | 37,633 |
Interest receivable | 22,836 | 24,415 |
Core deposit intangibles | 17,799 | 16,635 |
Goodwill | 244,000 | 243,129 |
Cash surrender value of life insurance | 200,549 | 200,539 |
Other real estate owned | 15,626 | 17,257 |
Tax asset, deferred and receivable | 47,982 | 46,977 |
Other assets | 30,283 | 24,023 |
TOTAL ASSETS | 6,798,539 | 6,761,003 |
Deposits: | ||
Noninterest-bearing | 1,282,462 | 1,266,027 |
Interest-bearing | 4,028,608 | 4,023,620 |
Total Deposits | 5,311,070 | 5,289,647 |
Borrowings: | ||
Federal funds purchased | 602 | 49,721 |
Securities sold under repurchase agreements | 150,134 | 155,325 |
Federal Home Loan Bank advances | 263,588 | 235,652 |
Subordinated debentures and term loans | 127,523 | 127,846 |
Total Borrowings | 541,847 | 568,544 |
Interest payable | 3,910 | 3,092 |
Other liabilities | 74,449 | 49,211 |
Total Liabilities | $ 5,931,276 | $ 5,910,494 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS' EQUITY | ||
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 - 40,749,340 and 40,664,259 shares | 5,094 | 5,083 |
Additional paid-in capital | 504,661 | 504,530 |
Retained earnings | 355,317 | 342,133 |
Accumulated other comprehensive income (loss) | 2,066 | (1,362) |
Total Stockholders' Equity | 867,263 | 850,509 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,798,539 | $ 6,761,003 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity - fair value | $ 655,445 | $ 632,380 |
Loans - allowance for loan losses | $ 62,086 | $ 62,453 |
Common Stock, stated value (in dollars per share) | $ 0.125 | $ 0.125 |
Common Stock, Authorized (in shares) | 50,000,000 | 50,000,000 |
Common Stock, Issued (in shares) | 40,749,340 | 40,664,259 |
Common Stock, Outstanding (in shares) | 40,749,340 | 40,664,259 |
Preferred Stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred Stock, Authorized (in shares) | 600 | 600 |
Preferred Stock, Issued (in shares) | 125 | 125 |
Preferred Stock, Outstanding (in shares) | 125 | 125 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Loans receivable: | ||
Taxable | $ 50,489 | $ 43,551 |
Tax exempt | 1,315 | 248 |
Investment securities: | ||
Taxable | 4,328 | 4,723 |
Tax exempt | 4,509 | 3,835 |
Deposits with financial institutions | 106 | 37 |
Federal Reserve and Federal Home Loan Bank stock | 480 | 550 |
Total Interest Income | 61,227 | 52,944 |
INTEREST EXPENSE | ||
Deposits | 4,063 | 3,516 |
Federal funds purchased | 28 | 23 |
Securities sold under repurchase agreements | 100 | 78 |
Federal Home Loan Bank advances | 796 | 691 |
Subordinated debentures and term loans | 1,785 | 1,660 |
Total Interest Expense | 6,772 | 5,968 |
NET INTEREST INCOME | 54,455 | $ 46,976 |
Provision for loan losses | 550 | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 53,905 | $ 46,976 |
OTHER INCOME | ||
Service charges on deposit accounts | 4,145 | 3,548 |
Fiduciary activities | 2,494 | 2,507 |
Other customer fees | $ 5,059 | 3,667 |
Commission income | 2,328 | |
Earnings on cash surrender value of life insurance | $ 1,476 | 747 |
Net gains and fees on sales of loans | 1,460 | 1,489 |
Net realized gains on sales of available for sale securities | 997 | 1,025 |
Other income | 690 | 921 |
Total Other Income | 16,321 | 16,232 |
OTHER EXPENSES | ||
Salaries and employee benefits | 27,337 | 24,541 |
Net occupancy | 4,022 | 3,790 |
Equipment | 3,238 | 2,566 |
Marketing | 737 | 780 |
Outside data processing fees | 2,069 | 1,717 |
Printing and office supplies | 364 | 364 |
Core deposit amortization | 978 | 721 |
FDIC assessments | 950 | 863 |
Other real estate owned and foreclosure expenses | 1,235 | 1,229 |
Professional and other outside services | 2,162 | 1,491 |
Other expenses | 3,867 | 3,140 |
Total Other Expenses | 46,959 | 41,202 |
INCOME BEFORE INCOME TAX | 23,267 | 22,006 |
Income tax expense | 5,574 | 5,834 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 17,693 | $ 16,172 |
Per Share Data: | ||
Basic Net Income Available to Common Stockholders (in dollars per share) | $ 0.43 | $ 0.43 |
Diluted Net Income Available to Common Stockholders (in dollars per share) | 0.43 | 0.43 |
Cash Dividends Paid (in dollars per share) | $ 0.11 | $ 0.08 |
Average Diluted Shares Outstanding (in shares) | 40,916,972 | 38,000,074 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 17,693 | $ 16,172 |
Other comprehensive income net of tax: | ||
Unrealized holding gain on securities available for sale arising during the period, net of tax of $2,765 and $528 | 5,135 | 980 |
Unrealized loss on cash flow hedges arising during the period, net of tax of $684 and $447 | (1,270) | (829) |
Reclassification adjustment for gains included in net income, net of tax of $236 and $235 | (437) | (436) |
Period change | 3,428 | (285) |
Comprehensive income | $ 21,121 | $ 15,887 |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gain on securities available for sale arising during the period, tax | $ 2,765 | $ 528 |
Unrealized loss on cash flow hedges arising during the period, tax | (684) | (447) |
Reclassification adjustment for gains included in net income, tax | $ 236 | $ 235 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2014 | $ (1,630) | |||||
Comprehensive income | ||||||
Net income | $ 16,172 | |||||
Other comprehensive income, net of tax | (285) | (285) | ||||
Ending balance at Mar. 31, 2015 | (1,915) | |||||
Beginning balance (in shares) at Dec. 31, 2015 | 125 | 40,664,259 | ||||
Beginning balance at Dec. 31, 2015 | 850,509 | $ 125 | $ 5,083 | $ 504,530 | $ 342,133 | (1,362) |
Comprehensive income | ||||||
Net income | 17,693 | 17,693 | ||||
Other comprehensive income, net of tax | 3,428 | 3,428 | ||||
Cash dividends on common stock ($.11 per share) | (4,509) | (4,509) | ||||
Share-based compensation (in shares) | 101,984 | |||||
Share-based compensation | 593 | $ 13 | 580 | |||
Stock issued under employee benefit plans (in shares) | 5,932 | |||||
Stock issued under employee benefit plans | 119 | $ 1 | 118 | |||
Stock issued under dividend reinvestment and stock purchase plan (in shares) | 7,030 | |||||
Stock issued under dividend reinvestment and stock purchase plan | $ 165 | $ 1 | 164 | |||
Stock options exercised (in shares) | 6,700 | 6,700 | ||||
Stock options exercised | $ 76 | $ 1 | 75 | |||
Stock redeemed (in shares) | (36,565) | |||||
Stock redeemed | (811) | $ (5) | (806) | |||
Ending balance (in shares) at Mar. 31, 2016 | 125 | 40,749,340 | ||||
Ending balance at Mar. 31, 2016 | $ 867,263 | $ 125 | $ 5,094 | $ 504,661 | $ 355,317 | $ 2,066 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock (in dollars per share) | $ 0.11 | $ 0.08 |
CONSOLIDATED CONDENSED STATEME9
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flow From Operating Activities: | ||
Net income | $ 17,693 | $ 16,172 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 550 | |
Depreciation and amortization | 1,835 | $ 1,534 |
Change in deferred taxes | 3,324 | 3,643 |
Share-based compensation | 593 | 517 |
Tax benefit from stock options exercised | (3) | (14) |
Loans originated for sale | (87,689) | (69,384) |
Proceeds from sales of loans | 93,955 | 70,227 |
Gains on sales of securities available for sale | (997) | (1,025) |
Change in interest receivable | 1,579 | 427 |
Change in interest payable | 818 | 484 |
Other adjustments | (6,862) | (4,883) |
Net cash provided by operating activities | 24,796 | 17,698 |
Cash Flows from Investing Activities: | ||
Net change in interest-bearing deposits | (45,138) | (35,708) |
Purchases of: | ||
Securities available for sale | (32,632) | (20,193) |
Securities held to maturity | (35,086) | (39,542) |
Proceeds from sales of securities available for sale | 69,623 | 38,198 |
Proceeds from maturities of: | ||
Securities available for sale | 13,137 | 14,887 |
Securities held to maturity | 19,134 | 18,685 |
Change in Federal Reserve and Federal Home Loan Bank stock | 80 | 80 |
Net change in loans | (20,235) | (43,939) |
Proceeds from the sale of other real estate owned | 2,084 | 2,799 |
Other adjustments | (1,226) | (1,311) |
Net cash used in investing activities | (30,259) | (66,044) |
Net change in : | ||
Demand and savings deposits | 44,902 | (4,643) |
Certificates of deposit and other time deposits | (24,650) | 12,024 |
Borrowings | 110,060 | 59,484 |
Repayment of borrowings | (136,321) | (44,319) |
Cash dividends on common stock | (4,509) | (3,049) |
Stock issued under employee benefit plans | 119 | 129 |
Stock issued under dividend reinvestment and stock purchase plans | 165 | 135 |
Stock options exercised | 73 | 355 |
Tax benefit from stock options exercised | 3 | 14 |
Stock redeemed | (811) | (1,157) |
Net cash provided by (used in) financing activities | (10,969) | 18,973 |
Net Change in Cash and Cash Equivalents | (16,432) | (29,373) |
Cash and Cash Equivalents at beginning of period | 102,170 | 118,616 |
Cash and Cash Equivalents at end of period | 85,738 | 89,243 |
Additional cash flow information: | ||
Interest paid | 5,954 | 5,484 |
Income tax paid | 3,500 | 500 |
Loans transferred to other real estate owned | 32 | $ 2,109 |
Fixed assets transferred to other real estate owned | 360 | |
Non-cash investing activities using trade date accounting | $ 19,935 | $ 20,424 |
General
General | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL Financial Statement Preparation The significant accounting policies followed by First Merchants Corporation (the “Corporation”) and its wholly owned subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments, which are of a normal recurring nature and are in the opinion of management necessary for a fair statement of the results for the periods reported, have been included in the accompanying consolidated condensed financial statements. The Consolidated Condensed Balance Sheet of the Corporation as of December 31, 2015 , has been derived from the audited consolidated balance sheet of the Corporation as of that date. Certain information and note disclosures normally included in the Corporation’s annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America, have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission. The results of operations for the three months ended March 31, 2016 , are not necessarily indicative of the results to be expected for the year. Reclassifications have been made to prior financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Acquisition - Ameriana Bancorp, Inc. On December 31, 2015, the Corporation acquired 100 percent of Ameriana Bancorp, Inc. ("Ameriana"). Ameriana merged with and into the Corporation (the "Ameriana Merger") whereupon the separate corporate existence of Ameriana ceased and the Corporation survived. Immediately following the Ameriana Merger, Ameriana Bank, an Indiana bank and wholly-owned subsidiary of Ameriana, merged with and into First Merchants Bank, National Association, a national bank and wholly-owned subsidiary of the Corporation (the "Bank"), with the Bank continuing as the surviving bank. Ameriana was headquartered in New Castle, Indiana and had 13 banking centers serving central and east central Indiana. Pursuant to the merger agreement, each Ameriana shareholder received 0.9037 shares of the Corporation's common stock for each outstanding share of Ameriana common stock held. The Corporation issued approximately 2.8 million shares of common stock, which was valued at approximately $70.4 million . The Corporation engaged in this transaction with the expectation that it would be accretive and expand the existing footprint in central and east central Indiana. Goodwill resulted from this transaction due to the expected synergies and economies of scale that are expected. 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 Ameriana acquisition is detailed in the following table. If prior to the end of the one year measurement period for finalizing the purchase price allocation, 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 $ 4,068 Interest-bearing time deposits 8,790 Investment securities 61,754 Loans 316,929 Premises and equipment 13,946 Federal Home Loan Bank stock 2,693 Other real estate owned 5,613 Interest receivable 1,306 Cash surrender value of life insurance 28,188 Other assets 6,713 Deposits (383,718 ) Interest payable (24 ) Federal Home Loan Bank Advances (24,884 ) Subordinated debentures (5,487 ) Other liabilities (9,451 ) Net tangible assets acquired 26,436 Core deposit intangible 5,342 Goodwill 38,624 Purchase price $ 70,402 Of the total purchase price, $5,342,000 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. Acquisition - C Financial Corporation On April 17, 2015, the Corporation acquired 100 percent of C Financial Corporation, ("C Financial"). C Financial merged with and into the Corporation (the “C Financial Merger”) whereupon the separate corporate existence of C Financial ceased and the Corporation survived. Immediately following the C Financial Merger, Cooper State Bank, an Ohio state bank and wholly-owned subsidiary of C Financial, merged with and into the Bank, with the Bank continuing as the surviving bank. C Financial was headquartered in Columbus, Ohio and had 6 full service banking centers serving the Columbus, Ohio market. As part of the $14.5 million C Financial Merger, shareholders of C Financial received $6.738 in cash for each share of C Financial common stock held. The Corporation expects the transaction to be accretive to income and expand the existing footprint in Columbus, Ohio. Goodwill resulted from this transaction due to the synergies and economies of scale that were expected. The purchase price of the C Financial acquisition was allocated as follows: Fair Value Cash and cash equivalents $ 2,496 Federal Funds sold 7,018 Interest-bearing time deposits 922 Loans 110,625 Premises and equipment 7,290 Federal Home Loan Bank stock 855 Interest receivable 292 Other assets 119 Deposits (105,326 ) Interest payable (29 ) Federal Home Loan Bank Advances (18,958 ) Other liabilities (2,911 ) Net tangible assets acquired 2,393 Core deposit intangible 981 Goodwill 11,126 Purchase price $ 14,500 Of the total purchase price, $981,000 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 deductible for tax purposes because the transaction was considered a taxable exchange. Subsidiary Divestiture - First Merchants Insurance Services, Inc. On June 12, 2015, the Corporation sold all of its stock in First Merchants Insurance Services, Inc., an Indiana corporation ("FMIG"), to USI Insurance Services LLC, a Delaware limited liability company. The sale price was $18 million , of which $16 million was paid at closing with the remaining $2 million paid through a two -year promissory note. The sale of FMIG generated a gain on sale of $8.3 million . |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses and approximate fair value of the investment securities portfolio at the dates indicated were: Amortized Gross Gross Fair Available for sale at March 31, 2016 U.S. Government-sponsored agency securities $ 100 $ 3 $ 103 State and municipal 312,516 17,711 $ 107 330,120 U.S. Government-sponsored mortgage-backed securities 295,443 7,183 40 302,586 Corporate obligations 31 31 Equity securities 3,882 63 3,945 Total available for sale 611,972 24,960 147 636,785 Held to maturity at March 31, 2016 Federal agencies 13,978 22 14,000 State and municipal 218,374 9,244 49 227,569 U.S. Government-sponsored mortgage-backed securities 401,640 12,261 25 413,876 Total held to maturity 633,992 21,527 74 655,445 Total Investment Securities $ 1,245,964 $ 46,487 $ 221 $ 1,292,230 Amortized Gross Gross Fair Available for sale at December 31, 2015 U.S. Government-sponsored agency securities $ 100 $ 4 $ 104 State and municipal 291,730 14,241 $ 60 305,911 U.S. Government-sponsored mortgage-backed securities 342,550 4,234 518 346,266 Corporate obligations 31 31 Equity securities 3,912 3,912 Certificates of deposit 2,176 2,176 Total available for sale 640,499 18,479 578 658,400 Held to maturity at December 31, 2015 State and municipal 219,767 6,982 15 226,734 U.S. Government-sponsored mortgage-backed securities 398,832 7,601 787 405,646 Total held to maturity 618,599 14,583 802 632,380 Total Investment Securities $ 1,259,098 $ 33,062 $ 1,380 $ 1,290,780 The amortized cost and fair value of available for sale and held to maturity securities at March 31, 2016 , 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 March 31, 2016: Due in one year or less $ 3,963 $ 3,990 $ 2,533 $ 2,541 Due after one through five years 17,175 18,087 32,527 34,282 Due after five through ten years 54,387 57,310 90,434 92,992 Due after ten years 237,122 250,867 106,858 111,754 $ 312,647 $ 330,254 $ 232,352 $ 241,569 U.S. Government-sponsored mortgage-backed securities 295,443 302,586 401,640 413,876 Equity securities 3,882 3,945 Total Investment Securities $ 611,972 $ 636,785 $ 633,992 $ 655,445 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2015 Due in one year or less $ 4,658 $ 4,704 $ 4,144 $ 4,148 Due after one through five years 13,725 14,295 28,054 29,175 Due after five through ten years 52,878 55,375 81,483 83,646 Due after ten years 220,600 231,672 106,086 109,765 $ 291,861 $ 306,046 $ 219,767 $ 226,734 U.S. Government-sponsored mortgage-backed securities 342,550 346,266 398,832 405,646 Equity securities 3,912 3,912 Certificates of deposit 2,176 2,176 Total Investment Securities $ 640,499 $ 658,400 $ 618,599 $ 632,380 The carrying value of securities pledged as collateral, to secure borrowings and for other purposes, was $625,319,000 at March 31, 2016 , and $637,358,000 at December 31, 2015 . The book value of securities sold under agreements to repurchase amounted to $145,639,000 at March 31, 2016 , and $153,789,000 at December 31, 2015 . Gross gains on the sales and redemptions of available for sale securities for the three months ended March 31, 2016 and 2015 are shown below. Three Months Ended 2016 2015 Sales and Redemptions of Available for Sale Securities: Gross gains $ 997 $ 1,025 Gross losses Other-than-temporary impairment losses The following table shows investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 , and December 31, 2015 : Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at March 31, 2016 State and municipal $ 8,375 $ 98 $ 1,197 $ 9 $ 9,572 $ 107 U.S. Government-sponsored mortgage-backed securities 1,131 5 $ 3,845 $ 35 4,976 40 Total Temporarily Impaired Available for Sale Securities 9,506 103 5,042 44 14,548 147 Temporarily Impaired Held to Maturity Securities at March 31, 2016 State and municipal 3,179 48 673 1 3,852 49 U.S. Government-sponsored mortgage-backed securities 4,784 25 4,784 25 Total Temporarily Impaired Held to Maturity Securities 3,179 48 5,457 26 8,636 74 Total Temporarily Impaired Investment Securities $ 12,685 $ 151 $ 10,499 $ 70 $ 23,184 $ 221 Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2015 State and municipal $ 7,558 $ 60 $ 7,558 $ 60 U.S. Government-sponsored mortgage-backed securities 83,396 445 2,101 73 85,497 518 Total Temporarily Impaired Available for Sale Securities 90,954 505 2,101 73 93,055 578 Temporarily Impaired Held to Maturity Securities at December 31, 2015 State and municipal 1,982 15 1,982 15 U.S. Government-sponsored mortgage-backed securities 69,641 519 12,906 268 82,547 787 Total Temporarily Impaired Held to Maturity Securities 69,641 519 14,888 283 84,529 802 Total Temporarily Impaired Investment Securities $ 160,595 $ 1,024 $ 16,989 $ 356 $ 177,584 $ 1,380 Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below. March 31, 2016 December 31, 2015 Investments reported at less than historical cost: Historical cost $ 23,406 $ 178,964 Fair value $ 23,184 $ 177,584 Percent of the Corporation's available for sale and held to maturity portfolio 1.8 % 13.9 % 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 is identified. The Corporation’s management has evaluated all securities with unrealized losses for other-than temporary impairment as of March 31, 2016 . 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 1 and Level 2 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 was classifying these securities based upon these inputs. From these discussions, the Corporation’s management is comfortable that the classifications are proper. The Corporation has gained trust in the data for two reasons: (a) independent spot testing of the data is conducted by the Corporation through obtaining market quotes from various brokers on a periodic basis and (b) actual gains or losses resulting from the sale of certain securities has proven the data to be accurate over time. The 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. State and Municipal and U.S. Government-Sponsored Mortgage-Backed Securities The unrealized losses on the Corporation’s investments in securities of state and political subdivisions and U.S. Government-sponsored mortgage-backed securities were caused by changes in interest rates and not credit quality. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Corporation does not intend to sell the investments and more likely than not the Corporation won't be required to sell the investments before recovery of its lower amortized cost basis, which may be maturity. The Corporation does not consider the investment securities to be other-than-temporarily impaired at March 31, 2016 . Credit Losses Recognized on Investments Certain corporate obligations experienced fair value deterioration due to credit losses and other market factors. The following table provides information about those securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income. Accumulated Accumulated Credit losses on debt securities held: Balance, January 1 $ 500 Reductions for previous other-than-temporary losses realized on securities sold during the year (500 ) Balance, March 31 $ — $ — In the first quarter of 2015, the Corporation sold its remaining trust preferred security which had no remaining book value as a result of other than temporary impairment of approximately $500,000 taken in 2009. The sale of this security resulted in a gain of $45,000 , which is included in the Consolidated Condensed Statement of Income for the three months ended March 31, 2015. |
Loans and Allowance
Loans and Allowance | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans and Allowance | 90 Days Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,054,549 $ 2,017 $ 239 $ 60 $ 3,694 $ 6,010 $ 1,060,559 Agriculture production financing and other loans to farmers 90,452 150 1,535 1,685 92,137 Real estate Loans: Construction 385,222 5,668 731 6,399 391,621 Commercial and farmland 1,788,591 1,355 9 16,440 17,804 1,806,395 Residential 753,121 3,565 539 693 11,674 16,471 769,592 Home equity 349,986 1,298 107 106 2,449 3,960 353,946 Individuals' loans for household and other personal expenditures 73,053 168 101 104 196 569 73,622 Lease financing receivables, net of unearned income 461 461 Other commercial loans 161,574 161,574 Loans $ 4,657,009 $ 14,221 $ 995 $ 963 $ 36,719 $ 52,898 $ 4,709,907 December 31, 2015 Current 30-59 Days 60-89 Days Loans > 90 Days Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,052,275 $ 166 $ 4,634 $ 4,800 $ 1,057,075 Agriculture production financing and other loans to farmers 96,884 827 827 97,711 Real estate Loans: Construction 362,084 3,884 736 4,620 366,704 Commercial and farmland 1,786,092 5,552 11,277 16,829 1,802,921 Residential 765,634 6,090 $ 2,061 $ 502 11,818 20,471 786,105 Home equity 344,344 1,433 560 324 1,952 4,269 348,613 Individuals' loans for household and other personal expenditures 73,990 445 56 81 145 727 74,717 Lease financing receivables, net of unearned income 588 588 Other commercial loans 159,324 64 64 159,388 Loans $ 4,641,215 $ 17,570 $ 2,741 $ 907 $ 31,389 $ 52,607 $ 4,693,822 See the information regarding the analysis of loan loss experience in the "LOAN QUALITY/PROVISION FOR LOAN LOSSES" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as ITEM 2 of this Quarterly Report on Form 10-Q. On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect its earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all 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 in the Corporation's loan portfolio that occurred during the periods indicated: Three Months Ended March 31, 2016 Pre-Modification Post-Modification Number Commercial and industrial loans $ 260 $ 260 3 Agriculture production financing and other loans to farmers 465 331 2 Real estate Loans: Commercial and farmland 352 352 1 Residential 113 133 3 Individuals' loans for household and other personal expenditures 13 13 1 Total $ 1,203 $ 1,089 10 Three Months Ended March 31, 2015 Pre-Modification Post-Modification Number Commercial and industrial loans $ 2,362 $ 1,361 4 Real estate Loans: Construction 79 80 1 Commercial and farmland 1,743 1 Residential 24 24 1 Total $ 2,465 $ 3,208 7 The following tables summarize the recorded investment of troubled debt restructurings, by modification type, that occurred during the periods indicated: Three Months Ended March 31, 2016 Term Rate Combination Total Commercial and industrial loans $ 260 $ 260 Agriculture production financing and other loans to farmers $ 331 331 Real estate Loans: Commercial and farmland 351 351 Residential 123 123 Individuals' loans for household and other personal expenditures 13 13 Total $ 467 $ 611 $ 1,078 Three Months Ended March 31, 2015 Term Rate Combination Total Commercial and industrial loans $ 253 $ 1,079 $ 1,332 Real estate Loans: Construction 2 2 Commercial and farmland 1,548 1,548 Residential $ 26 26 Total $ 1,803 $ 26 $ 1,079 $ 2,908 Agriculture production financing and other loans to farmers made up 48 percent of the post-modification balance of troubled debt restructured loans made in the three months ended March 31, 2016 . The following tables summarize troubled debt restructures that occurred during the twelve months ended March 31, 2016 and March 31, 2015 , that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this discussion, a loan is considered in default if it is 30 or more days past due. Three Months Ended March 31, 2016 Number of Recorded Commercial and industrial loans 3 $ 260 Real estate Loans: Commercial and farmland 1 717 Total 4 $ 977 Three Months Ended March 31, 2015 Number of Recorded Home Equity 1 $ 6 Total 1 $ 6 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. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $3,208,000 and $1,391,000 at March 31, 2016 and December 31, 2015, respectively. 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." id="sjs-B4">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 aspects, all excluding loans held for sale. Loans held for sale as of March 31, 2016 , and December 31, 2015 , were $3,628,000 and $9,894,000 , respectively. The following table shows the composition of the Corporation’s loan portfolio by loan class for the periods indicated: March 31, 2016 December 31, 2015 Commercial and industrial loans $ 1,060,559 $ 1,057,075 Agricultural production financing and other loans to farmers 92,137 97,711 Real estate loans: Construction 391,621 366,704 Commercial and farmland 1,806,395 1,802,921 Residential 769,592 786,105 Home Equity 353,946 348,613 Individuals' loans for household and other personal expenditures 73,622 74,717 Lease financing receivables, net of unearned income 461 588 Other commercial loans 161,574 159,388 Loans $ 4,709,907 $ 4,693,822 Allowance for loan losses (62,086 ) (62,453 ) Net Loans $ 4,647,821 $ 4,631,369 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 the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio at March 31, 2016. 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 it 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, portfolio mix and collateral values. The allowance for loan losses is maintained through the provision for loan losses, which is a charge against earnings. The allowance is increased by provision expense 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 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 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. 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 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 ensure that losses inherent in the portfolio are reflected in the allowance for loan losses. The environmental component adjusts the historical loss allocations for non-impaired 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. 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 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 following tables summarize changes in the allowance for loan losses by loan segment for the three months ended March 31, 2016 , and March 31, 2015 : Three Months Ended March 31, 2016 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, January 1 $ 26,478 $ 22,145 $ 2,689 $ 11,139 $ 2 $ 62,453 Provision for losses 139 214 33 164 550 Recoveries on loans 292 952 78 312 1,634 Loans charged off (645 ) (994 ) (153 ) (759 ) (2,551 ) Balances, March 31, 2016 $ 26,264 $ 22,317 $ 2,647 $ 10,856 $ 2 $ 62,086 Three Months Ended March 31, 2015 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, January 1 $ 28,824 $ 19,327 $ 2,658 $ 13,152 $ 3 $ 63,964 Provision for losses 1,834 (2,896 ) 527 534 1 Recoveries on loans 450 412 78 132 1,072 Loans charged off (1,101 ) (460 ) (125 ) (549 ) (2,235 ) Balances, March 31, 2015 $ 30,007 $ 16,383 $ 3,138 $ 13,269 $ 4 $ 62,801 The following tables show the Corporation’s allowance for loan losses and loan portfolio by segment as of the periods indicated: March 31, 2016 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 967 $ 192 $ 59 $ 1,218 Collectively evaluated for impairment 25,229 22,075 $ 2,647 10,760 $ 2 60,713 Loans Acquired with Deteriorated Credit Quality 68 50 37 155 Total Allowance for Loan Losses $ 26,264 $ 22,317 $ 2,647 $ 10,856 $ 2 $ 62,086 Loan Balances: Individually evaluated for impairment $ 7,899 $ 22,411 $ 4,136 $ 34,446 Collectively evaluated for impairment 1,299,488 2,127,038 $ 73,622 1,114,759 $ 461 4,615,368 Loans Acquired with Deteriorated Credit Quality 6,883 48,567 4,643 60,093 Loans $ 1,314,270 $ 2,198,016 $ 73,622 $ 1,123,538 $ 461 $ 4,709,907 December 31, 2015 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 1,277 $ 243 $ 169 $ 1,689 Collectively evaluated for impairment 25,201 21,753 $ 2,689 10,966 $ 2 60,611 Loans Acquired with Deteriorated Credit Quality 149 $ 4 153 Total Allowance for Loan Losses $ 26,478 $ 22,145 $ 2,689 $ 11,139 $ 2 $ 62,453 Loan Balances: Individually evaluated for impairment $ 7,877 $ 16,670 $ 4,020 $ 28,567 Collectively evaluated for impairment 1,298,988 2,096,089 $ 74,717 1,125,316 $ 588 4,595,698 Loans Acquired with Deteriorated Credit Quality 7,309 56,866 5,382 69,557 Loans $ 1,314,174 $ 2,169,625 $ 74,717 $ 1,134,718 $ 588 $ 4,693,822 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 as of the periods indicated: March 31, 2016 December 31, 2015 Commercial and industrial loans $ 3,694 $ 4,634 Agriculture production financing and other loans to farmers 1,535 827 Real estate Loans: Construction 731 736 Commercial and farmland 16,440 11,277 Residential 11,674 11,818 Home Equity 2,449 1,952 Individuals' loans for household and other personal expenditures 196 145 Total $ 36,719 $ 31,389 Commercial impaired loans include non-accrual loans, loans accounted for under ASC 310-30, and loans risk graded as substandard, doubtful and loss 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 as of the periods indicated: March 31, 2016 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 21,751 $ 11,559 Agriculture production financing and other loans to farmers 724 716 Real estate Loans: Construction 8,482 4,300 Commercial and farmland 88,293 64,710 Residential 11,991 7,317 Home equity 296 225 Other commercial loans 18 Total $ 131,555 $ 88,827 Impaired loans with related allowance: Commercial and industrial loans $ 1,610 $ 1,357 $ 620 Agriculture production financing and other loans to farmers 1,150 1,150 415 Real estate Loans: Commercial and farmland 1,907 1,738 242 Residential 946 877 96 Total $ 5,613 $ 5,122 $ 1,373 Total Impaired Loans $ 137,168 $ 93,949 $ 1,373 December 31, 2015 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 22,151 $ 11,669 Agriculture production financing and other loans to farmers 370 361 Real estate Loans: Construction 4,551 2,336 Commercial and farmland 95,930 69,024 Residential 11,262 7,338 Home equity 297 247 Other commercial loans 20 Total $ 134,581 $ 90,975 Impaired loans with related allowance: Commercial and industrial loans $ 3,043 $ 2,690 $ 1,247 Agriculture production financing and other loans to farmers 466 466 30 Real estate Loans: Commercial and farmland 2,144 1,933 392 Residential 2,300 1,463 173 Total $ 7,953 $ 6,552 $ 1,842 Total Impaired Loans $ 142,534 $ 97,527 $ 1,842 Three Months Ended March 31, 2016 Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 12,052 $ 109 Agriculture production financing and other loans to farmers 716 1 Real estate Loans: Construction 4,262 85 Commercial and farmland 65,461 871 Residential 7,746 58 Home equity 225 Total $ 90,462 $ 1,124 Impaired loans with related allowance: Commercial and industrial loans $ 1,363 $ 9 Agriculture production financing and other loans to farmers 1,315 Real estate Loans: Commercial and farmland 1,756 Residential 879 Total $ 5,313 $ 9 Total Impaired Loans $ 95,775 $ 1,133 Three Months Ended March 31, 2015 Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 16,150 $ 139 Agriculture production financing and other loans to farmers 303 Real estate Loans: Construction 8,542 104 Commercial and farmland 69,036 878 Residential 8,528 48 Home equity 533 3 Total $ 103,092 $ 1,172 Impaired loans with related allowance: Commercial and industrial loans $ 4,379 $ 10 Agriculture production financing and other loans to farmers 3,991 Real estate Loans: Commercial and farmland 3,113 Residential 1,761 Total $ 13,244 $ 10 Total Impaired Loans $ 116,336 $ 1,182 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 periods indicated. Consumer non-performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. 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. March 31, 2016 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 984,052 $ 46,952 $ 29,555 $ 1,060,559 Agriculture production financing and other loans to farmers 48,604 22,829 20,704 92,137 Real estate Loans: Construction 365,808 4,021 3,441 $ 18,272 $ 79 391,621 Commercial and farmland 1,669,322 55,336 81,737 1,806,395 Residential 158,931 8,095 10,706 584,262 7,598 769,592 Home equity 7,164 72 568 343,812 2,330 353,946 Individuals' loans for household and other personal expenditures 73,322 300 73,622 Lease financing receivables, net of unearned income 371 90 461 Other commercial loans 161,564 10 161,574 Loans $ 3,395,816 $ 137,315 $ 146,801 $ 1,019,668 $ 10,307 $ 4,709,907 December 31, 2015 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 962,340 $ 48,432 $ 45,984 $ 319 $ 1,057,075 Agriculture production financing and other loans to farmers 77,884 6,665 13,162 97,711 Real estate Loans: Construction 345,449 1,271 1,790 $ 18,114 $ 80 366,704 Commercial and farmland 1,679,141 46,442 77,338 1,802,921 Residential 171,576 3,107 10,428 593,533 7,461 786,105 Home equity 8,218 48 600 337,718 2,029 348,613 Individuals' loans for household and other personal expenditures 74,491 226 74,717 Lease financing receivables, net of unearned income 495 93 588 Other commercial loans 159,388 159,388 Loans $ 3,404,491 $ 105,965 $ 149,395 $ 319 $ 1,023,856 $ 9,796 $ 4,693,822 The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of March 31, 2016 , and December 31, 2015 . March 31, 2016 Current 30-59 Days 60-89 Days Loans > 90 Days Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,054,549 $ 2,017 $ 239 $ 60 $ 3,694 $ 6,010 $ 1,060,559 Agriculture production financing and other loans to farmers 90,452 150 1,535 1,685 92,137 Real estate Loans: Construction 385,222 5,668 731 6,399 391,621 Commercial and farmland 1,788,591 1,355 9 16,440 17,804 1,806,395 Residential 753,121 3,565 539 693 11,674 16,471 769,592 Home equity 349,986 1,298 107 106 2,449 3,960 353,946 Individuals' loans for household and other personal expenditures 73,053 168 101 104 196 569 73,622 Lease financing receivables, net of unearned income 461 461 Other commercial loans 161,574 161,574 Loans $ 4,657,009 $ 14,221 $ 995 $ 963 $ 36,719 $ 52,898 $ 4,709,907 December 31, 2015 Current 30-59 Days 60-89 Days Loans > 90 Days Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,052,275 $ 166 $ 4,634 $ 4,800 $ 1,057,075 Agriculture production financing and other loans to farmers 96,884 827 827 97,711 Real estate Loans: Construction 362,084 3,884 736 4,620 366,704 Commercial and farmland 1,786,092 5,552 11,277 16,829 1,802,921 Residential 765,634 6,090 $ 2,061 $ 502 11,818 20,471 786,105 Home equity 344,344 1,433 560 324 1,952 4,269 348,613 Individuals' loans for household and other personal expenditures 73,990 445 56 81 145 727 74,717 Lease financing receivables, net of unearned income 588 588 Other commercial loans 159,324 64 64 159,388 Loans $ 4,641,215 $ 17,570 $ 2,741 $ 907 $ 31,389 $ 52,607 $ 4,693,822 See the information regarding the analysis of loan loss experience in the "LOAN QUALITY/PROVISION FOR LOAN LOSSES" section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included as ITEM 2 of this Quarterly Report on Form 10-Q. On occasion, borrowers experience declines in income and cash flow. As a result, these borrowers seek to reduce contractual cash outlays including debt payments. Concurrently, in an effort to preserve and protect its earning assets, specifically troubled loans, the Corporation works to maintain its relationship with certain customers who are experiencing financial difficulty by contractually modifying the borrower's debt agreement with the Corporation. In certain loan restructuring situations, the Corporation may grant a concession to a debtor experiencing financial difficulty, resulting in a trouble debt restructuring. A concession is deemed to be granted when, as a result of the restructuring, the Corporation does not expect to collect all 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 in the Corporation's loan portfolio that occurred during the periods indicated: Three Months Ended March 31, 2016 Pre-Modification Post-Modification Number Commercial and industrial loans $ 260 $ 260 3 Agriculture production financing and other loans to farmers 465 331 2 Real estate Loans: Commercial and farmland 352 352 1 Residential 113 133 3 Individuals' loans for household and other personal expenditures 13 13 1 Total $ 1,203 $ 1,089 10 Three Months Ended March 31, 2015 Pre-Modification Post-Modification Number Commercial and industrial loans $ 2,362 $ 1,361 4 Real estate Loans: Construction 79 80 1 Commercial and farmland 1,743 1 Residential 24 24 1 Total $ 2,465 $ 3,208 7 The following tables summarize the recorded investment of troubled debt restructurings, by modification type, that occurred during the periods indicated: Three Months Ended March 31, 2016 Term Rate Combination Total Commercial and industrial loans $ 260 $ 260 Agriculture production financing and other loans to farmers $ 331 331 Real estate Loans: Commercial and farmland 351 351 Residential 123 123 Individuals' loans for household and other personal expenditures 13 13 Total $ 467 $ 611 $ 1,078 Three Months Ended March 31, 2015 Term Rate Combination Total Commercial and industrial loans $ 253 $ 1,079 $ 1,332 Real estate Loans: Construction 2 2 Commercial and farmland 1,548 1,548 Residential $ 26 26 Total $ 1,803 $ 26 $ 1,079 $ 2,908 Agriculture production financing and other loans to farmers made up 48 percent of the post-modification balance of troubled debt restructured loans made in the three months ended March 31, 2016 . The following tables summarize troubled debt restructures that occurred during the twelve months ended March 31, 2016 and March 31, 2015 , that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this discussion, a loan is considered in default if it is 30 or more days past due. Three Months Ended March 31, 2016 Number of Recorded Commercial and industrial loans 3 $ 260 Real estate Loans: Commercial and farmland 1 717 Total 4 $ 977 Three Months Ended March 31, 2015 Number of Recorded Home Equity 1 $ 6 Total 1 $ 6 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. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $3,208,000 and $1,391,000 at March 31, 2016 and December 31, 2015, respectively. 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 Ac
Accounting for Certain Loans Acquired in a Purchase | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounting for Certain Loans Acquired in a Purchase | ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A PURCHASE The acquired loans detailed in the tables below are included in NOTE 4. LOANS AND ALLOWANCE, in the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q. As described in NOTE 4, 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 acquired loans which were included in the Corporation's balance sheet at March 31, 2016 , and December 31, 2015 . March 31, 2016 Ameriana C Financial Community CFS SCB Total Commercial and industrial loans $ 23,363 $ 99 $ 7,224 $ 50,476 $ 4,351 $ 85,513 Agricultural production financing and other loans to farmers 2,472 1,263 3,735 Real estate loans: Construction 30,414 6,928 9,681 862 47,885 Commercial and farmland 131,371 25,729 47,190 175,692 12,494 392,476 Residential 116,116 52,720 19,212 113,633 5,645 307,326 Home Equity 13,390 8,824 7,445 30,705 13,000 73,364 Individuals' loans for household and other personal expenditures 1,433 8 306 348 43 2,138 Other commercial loans 1,840 70 1,910 Total $ 317,927 $ 94,308 $ 93,530 $ 371,786 $ 36,796 $ 914,347 Carrying Amount $ 304,615 $ 92,097 $ 87,523 $ 353,882 $ 32,390 $ 870,507 Allowance 105 50 155 Carrying Amount Net of Allowance $ 304,615 $ 92,097 $ 87,418 $ 353,832 $ 32,390 $ 870,352 December 31, 2015 Ameriana C Financial Community CFS SCB Total Commercial and industrial loans $ 21,888 $ 104 $ 6,769 $ 52,060 $ 4,620 $ 85,441 Agricultural production financing and other loans to farmers 1,761 1,288 3,049 Real estate loans: Construction 23,365 6,214 10,436 976 40,991 Commercial and farmland 144,514 27,838 49,997 189,372 13,293 425,014 Residential 123,231 55,856 21,886 118,105 6,063 325,141 Home Equity 14,261 9,144 8,231 31,986 13,431 77,053 Individuals' loans for household and other personal expenditures 1,731 10 461 443 48 2,693 Other commercial loans 1,928 72 2,000 Total $ 330,918 $ 99,166 $ 99,541 $ 393,014 $ 38,743 $ 961,382 Carrying Amount $ 319,664 $ 96,829 $ 93,355 $ 373,649 $ 34,092 $ 917,589 Allowance 4 149 153 Carrying Amount Net of Allowance $ 319,664 $ 96,829 $ 93,351 $ 373,500 $ 34,092 $ 917,436 The outstanding balance and related carrying amount of loans acquired and accounted for under ASC 310-30 as of March 31, 2016 were $84.5 million and $60.1 million , respectively. Additionally, the outstanding balance and related carrying amount of those loans as of December 31, 2015 were $95.8 million and $69.6 million , 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. The table reflects only purchased loans accounted for under ASC 310-30 and not the entire portfolio of purchased loans. Three Months Ended March 31, 2016 Ameriana C Financial Community CFS SCB Total Beginning balance $ 2,160 $ 114 $ 1,508 $ 1,188 $ 642 $ 5,612 Additions Accretion (40 ) (15 ) (63 ) (1,290 ) (88 ) (1,496 ) Reclassification from nonaccretable 1 11 1,135 36 1,183 Disposals Ending balance $ 2,120 $ 100 $ 1,456 $ 1,033 $ 590 $ 5,299 Three Months Ended March 31, 2015 Community CFS SCB Total Beginning balance $ 2,122 $ 2,400 $ 868 $ 5,390 Additions Accretion (179 ) (1,341 ) (185 ) (1,705 ) Reclassification from nonaccretable 47 950 135 1,132 Disposals Ending balance $ 1,990 $ 2,009 $ 818 $ 4,817 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL 2016 2015 Balance, January 1 $ 243,129 $ 202,724 Measurement period adjustment 871 Balance, March 31 $ 244,000 $ 202,724 Goodwill is recorded on the acquisition date of an entity. During the measurement period, the Corporation may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. There was a $871,000 measurement period adjustment recorded during the three months ended March 31, 2016 related to the Ameriana acquisition. |
Core Deposit and Other Intangib
Core Deposit and Other Intangibles | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposit and Other Intangibles | CORE DEPOSIT AND OTHER INTANGIBLES The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below. March 31, 2016 March 31, 2015 Gross carrying amount $ 16,635 $ 16,031 Accumulated amortization (978 ) (721 ) Measurement period adjustment 2,142 Core deposit and other intangibles $ 17,799 $ 15,310 Core deposit and other intangibles are recorded on the acquisition date of an entity. During the measurement period, the Corporation may record subsequent adjustments to core deposit and other intangibles for provisional amounts recorded at the acquisition date. There was a $2,142,000 measurement period adjustment recorded during the three months ended March 31, 2016 related to the Ameriana acquisition. Estimated future amortization expense is summarized as follows: Amortization Expense 2016 $ 2,933 2017 3,614 2018 2,299 2019 1,914 2020 1,733 After 2020 5,306 $ 17,799 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Corporation is exposed to certain risks arising from both its business operations and economic conditions. The Corporation principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Corporation manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Corporation’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Corporation’s known or expected cash payments principally related to certain variable-rate liabilities. The Corporation also has derivatives that are a result of a service the Corporation provides to certain qualifying customers, and, therefore, are not used to manage interest rate risk in the Corporation’s assets or liabilities. The Corporation manages a matched book with respect to its derivative instruments offered as a part of this service to its customers in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk The Corporation’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Corporation primarily uses interest rate swaps and interest rate caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of fixed amounts to a counterparty in exchange for the Corporation receiving variable payments over the life of the agreements without exchange of the underlying notional amount. Interest rate caps designated as cash flow hedges involve the receipt of variable amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. As of March 31, 2016 and 2015, the Corporation had five interest rate swaps with a notional amount of $56.0 million and one interest rate cap with a notional amount of $13.0 million that were designated as cash flow hedges. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into interest expense as interest payments are made on the Corporation’s variable-rate liabilities. During the next twelve months, the Corporation expects to reclassify $1,228,000 from accumulated other comprehensive income to interest expense. During 2016 , $26.0 million of the interest rate swaps and the $13.0 million interest rate cap were used to hedge the LIBOR-based variable cash outflows associated with existing trust preferred securities when the outflows converted from a fixed rate to variable rate in September of 2012. In addition, the remaining $30.0 million of interest rate swaps were used to hedge the LIBOR-based variable cash outflows 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 three months ended March 31, 2016 , and 2015 , the Corporation did not recognize any ineffectiveness. 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 March 31, 2016 , the notional amount of customer-facing swaps was approximately $204,667,000 . This amount is offset with third party counterparties, as described above. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Corporation’s derivative financial instruments, as well as their classification on the Balance Sheet, as of March 31, 2016 , and December 31, 2015 . Asset Derivatives Liability Derivatives March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ 12 Other Assets $ 36 Other Liabilities $ 4,565 Other Liabilities $ 2,921 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 8,635 Other Assets $ 4,938 Other Liabilities $ 9,091 Other Liabilities $ 5,149 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 three months ended March 31, 2016, and 2015. Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 Location of Gain (Loss) Recognized Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Three Months Ended Three Months Ended Interest rate contracts Other income $ (245 ) $ (100 ) The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three Months Ended March 31, 2016 March 31, 2015 Interest Rate Products $ (1,954 ) $ (1,276 ) The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income Three Months Ended March 31, 2016 March 31, 2015 Interest Expense $ (324 ) $ (354 ) The Corporation’s exposure to credit risk occurs because of nonperformance by its counterparties. The counterparties approved by the Corporation are usually financial institutions, which are well capitalized and have credit ratings through Moody’s and/or Standard & Poor’s, at or above investment grade. The Corporation’s control of such risk is through quarterly financial reviews, comparing mark-to-mark values with policy limitations, credit ratings and collateral pledging. Credit-risk-related Contingent Features The Corporation has agreements with certain of its derivative counterparties that contain a provision where if the Corporation fails to maintain its status as a well or adequately capitalized institution, then the Corporation could be required to terminate or fully collateralize all outstanding derivative contracts. The Corporation also has agreements with certain of its derivative counterparties that contain a provision where if the Corporation defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Corporation could also be declared in default on its derivative obligations. As of March 31, 2016 , the termination value of derivatives in a net liability position related to these agreements was $13,966,000 . As of March 31, 2016 , the Corporation had minimum collateral posting thresholds with certain of its derivative counterparties and had posted collateral of $15,681,000 . If the Corporation had breached any of these provisions at March 31, 2016 , it could have been required to settle its obligations under the agreements at their termination value. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | DISCLOSURES ABOUT FAIR VALUE OF ASSETS AND LIABILITIES The Corporation used fair value measurements to record fair value adjustments, to certain assets, and liabilities and to determine fair value disclosures. The accounting guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 applies only when other guidance requires or permits assets or liabilities to be measured at fair value; it does not expand the use of fair value in any new circumstances. As defined in ASC 820, fair value is the price to sell an asset or transfer a liability in an orderly transaction between market participants. It represents an exit price at the measurement date. Market participants are buyers and sellers, who are independent, knowledgeable, and willing and able to transact in the principal (or most advantageous) market for the asset or liability being measured. Current market conditions, including imbalances between supply and demand, are considered in determining fair value. The Corporation values its assets and liabilities in the principal market where it sells the particular asset or transfers the liability with the greatest volume and level of activity. In the absence of a principal market, the valuation is based on the most advantageous market for the asset or liability (i.e., the market where the asset could be sold or the liability transferred at a price that maximizes the amount to be received for the asset or minimizes the amount to be paid to transfer the liability). Valuation inputs refer to the assumptions market participants would use in pricing a given asset or liability. Inputs can be observable or unobservable. Observable inputs are those assumptions which market participants would use in pricing the particular asset or liability. These inputs are based on market data and are obtained from a source independent of the Corporation. Unobservable inputs are assumptions based on the Corporation’s own information or estimate of assumptions used by market participants in pricing the asset or liability. Unobservable inputs are based on the best and most current information available on the measurement date. All inputs, whether observable or unobservable, are ranked in accordance with a prescribed fair value hierarchy which gives the highest ranking to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest ranking to unobservable inputs for which there is little or no market activity (Level 3). Fair values for assets or liabilities classified as Level 2 are based on one or a combination of the following factors: (i) quoted prices for similar assets; (ii) observable inputs for the asset or liability, such as interest rates or yield curves; or (iii) inputs derived principally from or corroborated by observable market data. The level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Corporation considers an input to be significant if it drives 10 percent or more of the total fair value of a particular asset or liability. Recurring Measurements Following is a description of the valuation methodologies and inputs used for instruments measured at fair value on a recurring basis and recognized in the accompanying Consolidated Condensed Balance Sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques as of March 31, 2016 . Available for Sale Investment Securities Where quoted, market prices are available in an active market and securities are classified within Level 1 of the valuation hierarchy. There are no securities classified within Level 1 of the hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or a discounted cash flow model. Level 2 securities include agencies, mortgage- backed, state and municipal, and equity securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Level 3 fair value, including corporate obligations, state and municipal and equity securities, was determined using a discounted cash flow model that incorporated market estimates of interest rates and volatility in markets that have not been active. Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities classified within Level 2. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on the investment securities’ relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. Interest Rate Derivative Agreements See information regarding the Corporation's interest rate derivative products in NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS, included within the Notes to Consolidated Condensed Financial Statements of this Quarterly Report on Form 10-Q. The following table presents the fair value measurements of assets and liabilities recognized in the Consolidated Condensed Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2016 , and December 31, 2015 . Fair Value Measurements Using: March 31, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Government-sponsored agency securities $ 103 $ 103 State and municipal 330,120 324,651 $ 5,469 U.S. Government-sponsored mortgage-backed securities 302,586 302,586 Corporate obligations 31 31 Equity securities 3,945 3,941 4 Interest rate swap asset 8,635 8,635 Interest rate cap 12 12 Interest rate swap liability 13,656 13,656 Fair Value Measurements Using: December 31, 2015 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Government-sponsored agency securities $ 104 $ 104 State and municipal 305,911 300,014 $ 5,897 U.S. Government-sponsored mortgage-backed securities 346,266 346,266 Certificates of deposit 2,176 2,176 Corporate obligations 31 31 Equity securities 3,912 3,908 4 Interest rate swap asset 4,938 4,938 Interest rate cap 36 36 Interest rate swap liability 8,070 8,070 Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for three months ended March 31, 2016 and 2015. Available for Sale Securities Three Months Ended Three Months Ended Balance at beginning of the period $ 5,932 $ 6,646 Total realized and unrealized gains and losses: Included in other comprehensive income 38 91 Principal payments (466 ) (539 ) Ending balance $ 5,504 $ 6,198 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 March 31, 2016 or December 31, 2015 . Transfers Between Levels There were no transfers in or out of Level 3 for the three months ended March 31, 2016 and 2015 . Nonrecurring Measurements The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2016 , and December 31, 2015 . Fair Value Measurements Using March 31, 2016 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 9,530 $ 9,530 Other real estate owned 1,287 1,287 Fair Value Measurements Using December 31, 2015 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 7,066 $ 7,066 Other real estate owned 5,529 5,529 Following is a description of valuation methodologies used for instruments measured at fair value on a nonrecurring basis and recognized in the Consolidated Condensed Balance Sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Impaired Loans (collateral dependent) Loans for which it is probable that the Corporation will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to increase, such increase is reported as a component of the provision for loan losses. Loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed. During 2016 , 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 March 31, 2016 and December 31, 2015 . March 31, 2016 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,469 Discounted cash flow Maturity/Call date 1 month to 15 yrs Blend of US Muni BQ curve A- to BBB- Discount rate .69% - 5% Corporate obligations and Equity securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 9,530 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 50% (1%) Other real estate owned $ 1,287 Appraisals Discount to reflect current market conditions 0% - 20% (2%) December 31, 2015 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,897 Discounted cash flow Maturity/Call date 1 month to 15 yrs Blend of US Muni BQ curve A- to BBB- Discount rate .80% - 5% Corporate obligations and Equity securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 7,066 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 50% (2%) Other real estate owned $ 5,529 Appraisals Discount to reflect current market conditions 0% - 20% (2%) Sensitivity of Significant Unobservable Inputs The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and 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. 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 March 31, 2016 , and December 31, 2015 . March 31, 2016 Carrying Quoted Prices in Active Markets Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 85,738 $ 85,738 Interest-bearing time deposits 77,453 77,453 Investment securities available for sale 636,785 $ 631,281 $ 5,504 Investment securities held to maturity 633,992 626,164 29,281 Loans held for sale 3,628 3,628 Loans 4,647,821 4,600,417 Federal Reserve Bank and Federal Home Loan Bank stock 37,553 37,553 Interest rate swap and cap asset 8,647 8,647 Interest receivable 22,836 22,836 Liabilities: Deposits $ 5,311,070 $ 4,139,907 $ 1,158,592 Borrowings: Federal funds purchased 602 602 Securities sold under repurchase agreements 150,134 150,118 Federal Home Loan Bank advances 263,588 265,170 Subordinated debentures and term loans 127,523 98,807 Interest rate swap liability 13,656 13,656 Interest payable 3,910 3,910 December 31, 2015 Carrying Quoted Prices in Active Markets Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 102,170 $ 102,170 Interest-bearing time deposits 32,315 32,315 Investment securities available for sale 658,400 $ 652,468 $ 5,932 Investment securities held to maturity 618,599 598,082 34,298 Loans held for sale 9,894 9,894 Loans 4,631,369 4,539,940 Federal Reserve Bank and Federal Home Loan Bank stock 37,633 37,633 Interest rate swap and cap asset 4,974 4,974 Interest receivable 24,415 24,415 Liabilities: Deposits $ 5,289,647 $ 4,095,004 $ 1,177,142 Borrowings: Federal funds purchased 49,721 49,721 Securities sold under repurchase agreements 155,325 155,325 Federal Home Loan Bank advances 235,652 236,375 Subordinated debentures and term loans 127,846 103,643 Interest rate swap liability 8,070 8,070 Interest payable 3,092 3,092 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. Loans Held For Sale: The carrying amount approximates fair value due to the short duration between origination and date of sale. Loans: The fair value for loans is estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. See Impaired Loans above. Federal Reserve and Federal Home Loan Bank stock : The fair value of Federal Reserve Bank and Federal Home Loan Bank stock is based on the price which it may be resold to the Federal Reserve and Federal Home Loan Bank. Derivative instruments : The fair value of the interest rate swaps reflects the estimated amounts that would have been received to terminate these contracts at the reporting date based upon pricing or valuation models applied to current market information. Interest rate caps are valued using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rose above the strike rate of the caps. The projected cash receipts on the caps are based on an expectation of future interest rates derived from observed market interest rate curves and volatilities. Interest Receivable and Interest Payable : The fair value of interest receivables/payable approximates the carrying amount. Deposits: The fair values of noninterest-bearing and interest-bearing demand accounts and savings deposits are equal to the amount payable on demand at the balance sheet date. The carrying amounts for variable rate, fixed-term certificates of deposit approximate their fair values at the balance sheet date. Fair values for fixed-rate certificates of deposit and other time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to a schedule of aggregated expected monthly maturities on such time deposits. Federal funds purchased : The fair value of Federal Funds purchased approximates the carrying amount. Borrowings: The fair value of borrowings is estimated using a discounted cash flow calculation, based on current rates for similar debt. |
Transfers Accounted for as Secu
Transfers Accounted for as Secured Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Transfers Accounted for as Secured Borrowings | TRANSFERS ACCOUNTED FOR AS SECURED BORROWINGS The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of March 31, 2016 were: Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 127,329 $ 7,559 $ 15,246 $ 150,134 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015 : Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2015 $ 12,325 $ (2,347 ) $ (11,340 ) $ (1,362 ) Other comprehensive income before reclassifications 5,135 (1,270 ) 3,865 Amounts reclassified from accumulated other comprehensive income (648 ) 211 (437 ) Period change 4,487 (1,059 ) — 3,428 Balance at March 31, 2016 $ 16,812 $ (3,406 ) $ (11,340 ) $ 2,066 Balance at December 31, 2014 $ 14,098 $ (2,182 ) $ (13,546 ) $ (1,630 ) Other comprehensive income before reclassifications 980 (829 ) 151 Amounts reclassified from accumulated other comprehensive income (666 ) 230 (436 ) Period change 314 (599 ) — (285 ) Balance at March 31, 2015 $ 14,412 $ (2,781 ) $ (13,546 ) $ (1,915 ) The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Condensed Statements of Income for the three months ended March 31, 2016 and 2015 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, Details about Accumulated Other Comprehensive Income (Loss)Components 2016 2015 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains (losses) reclassified into income $ 997 $ 1,025 Other income - net realized gains on sales of available for sale securities Related income tax expense (349 ) (359 ) Income tax expense $ 648 $ 666 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (324 ) $ (354 ) Interest expense - subordinated debentures and term loans Related income tax benefit 113 124 Income tax expense $ (211 ) $ (230 ) Total reclassifications for the period, net of tax $ 437 $ 436 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
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 RSAs 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 have elected to defer payment of compensation under the Corporation's 2008 Equity Compensation Plan for Non-employee Directors. DSUs credited are equal to the restricted shares that the non-employee director would have received under the plan. As of March 31, 2016 , there were no outstanding DSUs. The Corporation’s 2009 Employee Stock Purchase Plan (“ESPP”) provides eligible employees of the Corporation and its subsidiaries an opportunity to purchase shares of common stock of the Corporation through quarterly offerings financed by payroll deductions. The price of the stock to be paid by the employees shall be equal to 85 percent of the average of the closing price of the Corporation’s common stock on each trading day during the offering period. However, in no event shall such purchase price be less than the lesser of an amount equal to 85 percent of the market price of the Corporation’s stock on the offering date or an amount equal to 85 percent of the market value on the date of purchase. Common stock purchases are made quarterly and are paid through advance payroll deductions up to a calendar year maximum of $25,000 . Compensation expense related to unvested share-based awards is recorded by recognizing the unamortized grant date fair value of these awards over the remaining service periods of those awards, with no change in historical reported fair values and earnings. Awards are valued at fair value in accordance with provisions of share-based compensation guidance and are recognized on a straight-line basis over the service periods of each award. To complete the exercise of vested stock options, RSA’s and ESPP options, the Corporation generally issues new shares from its authorized but unissued share pool. Share-based compensation for the three months ended March 31, 2016 was $593,000 compared to $517,000 for the three months ended March 31, 2015 . Share-based compensation has been recognized as a component of salaries and benefits expense in the accompanying Consolidated Condensed Statements of Income. The estimated fair value of the stock options granted during 2014 and in prior years was calculated using a Black Scholes option pricing model. There have been no stock options granted since 2014. The Black Scholes model incorporates assumptions to value share-based awards. The risk-free rate of interest, for periods equal to the expected life of the option, is based on a U.S. government instrument over a similar contractual term of the equity instrument. Expected price volatility is based on historical volatility of the Corporation’s common stock. In addition, the Corporation generally uses historical information to determine the dividend yield and weighted-average expected life of the options until exercise. Separate groups of employees that have similar historical exercise behavior with regard to option exercise timing and forfeiture rates are considered separately for valuation and attribution purposes. Share-based compensation expense recognized in the Consolidated Condensed Statements of Income is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Share-based compensation guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Pre-vesting forfeitures were estimated to be approximately 3.8 percent for the three months ended March 31, 2016 , based on historical experience. The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense: Three Months Ended 2016 2015 Stock and ESPP Options Pre-tax compensation expense $ 15 $ 27 Income tax expense (benefit) (1 ) Stock and ESPP option expense, net of income taxes $ 15 $ 26 Restricted Stock Awards Pre-tax compensation expense $ 578 $ 490 Income tax benefit (202 ) (168 ) Restricted stock awards expense, net of income taxes $ 376 $ 322 Total Share-Based Compensation Pre-tax compensation expense $ 593 $ 517 Income tax benefit (202 ) (169 ) Total share-based compensation expense, net of income taxes $ 391 $ 348 As of March 31, 2016 , unrecognized compensation expense related to RSAs was $5,277,000 and is expected to be recognized over a weighted-average period of 1.93 years. The Corporation did not have any unrecognized compensation expense related to stock options as of March 31, 2016 . Stock option activity under the Corporation's stock option plans as of March 31, 2016 and changes during the three months ended March 31, 2016 , were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2016 442,012 $ 19.99 Granted — Exercised (6,700 ) $ 10.80 Canceled (49,500 ) $ 25.14 Outstanding March 31, 2016 385,812 $ 19.49 3.23 1,992,120 Vested and Expected to Vest at March 31, 2016 385,812 $ 19.49 3.23 1,992,120 Exercisable at March 31, 2016 385,812 $ 19.49 3.23 1,992,120 There were no options granted during the three months ended March 31, 2016 and March 31, 2015 . The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Corporation's closing stock price on the last trading day of the first three months of 2016 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 March 31, 2016 . 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 three months ended March 31, 2016 and 2015 was $77,000 and $188,000 , respectively. Cash receipts of stock options exercised during this same period were $73,000 and $355,000 , respectively. The following table summarizes information on unvested RSAs outstanding as of March 31, 2016 : Number of Shares Weighted-Average Unvested RSAs at January 1, 2016 354,504 $ 19.65 Granted 110,623 $ 23.41 Vested (101,984 ) $ 15.32 Forfeited (419 ) $ 21.60 Unvested RSAs at March 31, 2016 362,724 $ 22.31 The grant date fair value of ESPP options was estimated at the beginning of the January 1, 2016 quarterly offering period of approximately $15,000 . The ESPP options vested during the three months ending March 31, 2016 , leaving no unrecognized compensation expense related to unvested ESPP options at March 31, 2016 . |
Income Tax
Income Tax | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax | INCOME TAX The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 35% $ 8,143 $ 7,702 Tax-exempt interest income (2,026 ) (1,429 ) Stock compensation 5 8 Earnings on life insurance (517 ) (262 ) Tax credits (129 ) (144 ) Other 98 (41 ) Actual Tax Expense $ 5,574 $ 5,834 Effective Tax Rate 24.0 % 26.5 % |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average shares outstanding during the reporting period. Diluted net income per share is computed by dividing net income by the combination of all dilutive common share equivalents, comprised of shares issuable under the Corporation’s share-based compensation plans, and the weighted-average shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of share-based awards, the amount of compensation expense, if any, for future service that the Corporation has not yet recognized, and the amount of estimated tax benefits that would be recorded in additional paid-in capital when share-based awards are exercised, are assumed to be used to repurchase common stock in the current period. The following table reconciles basic and diluted net income per share for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, 2016 2015 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders 17,693 40,690,573 $ 0.43 16,172 37,709,883 $ 0.43 Effect of dilutive stock options and warrants 226,399 290,191 Diluted net income per share $ 17,693 40,916,972 $ 0.43 $ 16,172 38,000,074 $ 0.43 Stock options to purchase 153,721 and 367,576 shares for the three months ended March 31, 2016 and 2015 , respectively, were not included in the earnings per share calculation because the exercise price exceeded the average market price. |
Impact of Accounting Changes
Impact of Accounting Changes | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Accounting Changes | IMPACT OF ACCOUNTING CHANGES FASB Accounting Standards Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Summary - The amendments in ASU 2016-09 simplify several aspects of accounting for employee share-based payments including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some areas of the simplification apply only to nonpublic entities. The new guidance will require all income tax effects of awards to be recognized as income tax expense or benefit in the income statement when the awards vest or are settled and additional paid in capital pools will be eliminated. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. Companies will be required to account for forfeitures of share-based payments by recognizing forfeitures of awards as they occur or estimating the number of awards expected to be forfeited and adjusting the estimate when it is likely to change, as currently required, through an accounting policy election. The guidance will increase the amount an employer can withhold to cover income taxes on awards and still qualify for the exception to liability classification for shares used to satisfy the employer's income tax withholding obligation. The guidance requires an employer to classify the cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation as a financing activity on the statement of cash flows. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption will be permitted in any interim or annual period for which financial statements have not yet been issued or have not been made available for issuance, however all of the guidance must be adopted in the same period. If early adoption is elected in an interim period, any adjustments should be reflected as of the beginning of the annual period that includes that interim period. Adoption of this ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-07, Investments -Equity Method and Joint Ventures (Topic 323) Summary - The FASB has issued Accounting Standards Update (ASU) No. 2016-07, Investments - Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting . The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. Adoption of this ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments Summary - The FASB has issued Accounting Standards Update No. 2016-06, Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. Topic 815, Derivatives and Hedging, requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met. One of those criteria is that the economic characteristics and risks of the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contract (the “clearly and closely related” criterion). U.S. GAAP provides specific guidance for assessing whether call (put) options that can accelerate the repayment of principal on a debt instrument meet the clearly and closely related criterion. The guidance states that for contingent call (put) options to be considered clearly and closely related, they can be indexed only to interest rates or credit risk. The amendments clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. If an entity early adopts the new requirements in an interim period, it must reflect any adjustments as of the beginning of the fiscal year that includes that interim period. Adoption of this ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships Summary - The FASB has issued Accounting Standards Update (ASU) No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The amendments apply to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. The term novation, as it relates to derivative instruments, refers to replacing one of the parties to a derivative instrument with a new party. In practice, derivative instrument novations may occur for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The derivative instrument that is the subject of a novation may be the hedging instrument in a hedging relationship that has been designated under Topic 815, Derivatives and Hedging. The issue is whether a change in the counterparty to a derivative instrument that has been designated as a hedging instrument, in and of itself, results in a requirement to dedesignate that hedging relationship and therefore discontinue the application of hedge accounting. The guidance in Topic 815 is not explicitly clear about the effect on an existing hedging relationship, if any, of a change in the counterparty to a derivative instrument that has been designated as a hedging instrument. Furthermore, the existing guidance, which is limited, is interpreted and applied inconsistently in practice. The amendments clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria. The amendments are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments may be applied on either a prospective basis or a modified retrospective basis. Adoption of this ASU is not expected to have a significant effect on the Corporation’s consolidated financial statements. FASB Accounting Standards Update No. 2016-02 - Leases (Topic 842) Summary - The FASB has issued its new lease accounting guidance in Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: • A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Corporation is evaluating the effect of this ASU on its consolidated financial statements. FASB Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers Summary - The FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers , which implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective on January 1, 2018 and is not expected to have a significant impact on the Corporation's financial statements. |
General Litigation and Regulato
General Litigation and Regulatory Examinations | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
General Litigation and Regulatory Examinations | GENERAL LITIGATION AND REGULATORY EXAMINATIONS The Corporation is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Corporation is subject to periodic examinations by various regulatory agencies. It is the opinion of management that the disposition or ultimate resolution of such claims, lawsuits, and examinations 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 | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 1, 2016, the Board of Directors of First Merchants Bank, National Association (the “Bank”), a wholly-owned subsidiary of First Merchants Corporation, adopted final resolutions approving the conversion of the Bank’s banking charter from a national association to an Indiana state-chartered bank. The initial application to convert was filed with the Indiana Department of Financial Institutions (the “Indiana DFI”) on February 9, 2016. Between the date of initial application and adoption of the final resolutions by the Bank’s Board, the Indiana DFI and the Federal Deposit Insurance Corporation (the “FDIC”) conducted a joint exam of the Bank and its banking activities. Final regulatory approval of the application was obtained at the meeting of the Members of the Indiana DFI on April 14, 2016. The Bank filed official conversion documents effective April 15, 2016. As a result of the conversion, the Indiana DFI became the Bank’s primary regulator and the FDIC became the Bank’s primary federal regulator. Upon conversion, the Bank’s official name changed from “First Merchants Bank, National Association” to “First Merchants Bank.” The Bank intends to continue operating under the following trade names in certain geographic markets: Lafayette Bank and Trust and First Merchants Private Wealth Advisors (each as a division of First Merchants Bank). The conversion is not expected to affect the Bank’s operations or customers in any way, and Bank customers will continue to receive identical protection on deposits through the FDIC’s deposit insurance program. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Ameriana | |
Business Acquisition [Line Items] | |
Schedule of preliminary valuations of the fair value of assets acquired and liabilities assumed | 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 Ameriana acquisition is detailed in the following table. If prior to the end of the one year measurement period for finalizing the purchase price allocation, 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 $ 4,068 Interest-bearing time deposits 8,790 Investment securities 61,754 Loans 316,929 Premises and equipment 13,946 Federal Home Loan Bank stock 2,693 Other real estate owned 5,613 Interest receivable 1,306 Cash surrender value of life insurance 28,188 Other assets 6,713 Deposits (383,718 ) Interest payable (24 ) Federal Home Loan Bank Advances (24,884 ) Subordinated debentures (5,487 ) Other liabilities (9,451 ) Net tangible assets acquired 26,436 Core deposit intangible 5,342 Goodwill 38,624 Purchase price $ 70,402 |
C Financial | |
Business Acquisition [Line Items] | |
Schedule of preliminary valuations of the fair value of assets acquired and liabilities assumed | The purchase price of the C Financial acquisition was allocated as follows: Fair Value Cash and cash equivalents $ 2,496 Federal Funds sold 7,018 Interest-bearing time deposits 922 Loans 110,625 Premises and equipment 7,290 Federal Home Loan Bank stock 855 Interest receivable 292 Other assets 119 Deposits (105,326 ) Interest payable (29 ) Federal Home Loan Bank Advances (18,958 ) Other liabilities (2,911 ) Net tangible assets acquired 2,393 Core deposit intangible 981 Goodwill 11,126 Purchase price $ 14,500 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of investment securities | The amortized cost, gross unrealized gains and losses and approximate fair value of the investment securities portfolio at the dates indicated were: Amortized Gross Gross Fair Available for sale at March 31, 2016 U.S. Government-sponsored agency securities $ 100 $ 3 $ 103 State and municipal 312,516 17,711 $ 107 330,120 U.S. Government-sponsored mortgage-backed securities 295,443 7,183 40 302,586 Corporate obligations 31 31 Equity securities 3,882 63 3,945 Total available for sale 611,972 24,960 147 636,785 Held to maturity at March 31, 2016 Federal agencies 13,978 22 14,000 State and municipal 218,374 9,244 49 227,569 U.S. Government-sponsored mortgage-backed securities 401,640 12,261 25 413,876 Total held to maturity 633,992 21,527 74 655,445 Total Investment Securities $ 1,245,964 $ 46,487 $ 221 $ 1,292,230 Amortized Gross Gross Fair Available for sale at December 31, 2015 U.S. Government-sponsored agency securities $ 100 $ 4 $ 104 State and municipal 291,730 14,241 $ 60 305,911 U.S. Government-sponsored mortgage-backed securities 342,550 4,234 518 346,266 Corporate obligations 31 31 Equity securities 3,912 3,912 Certificates of deposit 2,176 2,176 Total available for sale 640,499 18,479 578 658,400 Held to maturity at December 31, 2015 State and municipal 219,767 6,982 15 226,734 U.S. Government-sponsored mortgage-backed securities 398,832 7,601 787 405,646 Total held to maturity 618,599 14,583 802 632,380 Total Investment Securities $ 1,259,098 $ 33,062 $ 1,380 $ 1,290,780 |
Schedule of amortized cost and fair value of available for sale securities and held to maturity securities | The amortized cost and fair value of available for sale and held to maturity securities at March 31, 2016 , 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 March 31, 2016: Due in one year or less $ 3,963 $ 3,990 $ 2,533 $ 2,541 Due after one through five years 17,175 18,087 32,527 34,282 Due after five through ten years 54,387 57,310 90,434 92,992 Due after ten years 237,122 250,867 106,858 111,754 $ 312,647 $ 330,254 $ 232,352 $ 241,569 U.S. Government-sponsored mortgage-backed securities 295,443 302,586 401,640 413,876 Equity securities 3,882 3,945 Total Investment Securities $ 611,972 $ 636,785 $ 633,992 $ 655,445 Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Maturity Distribution at December 31, 2015 Due in one year or less $ 4,658 $ 4,704 $ 4,144 $ 4,148 Due after one through five years 13,725 14,295 28,054 29,175 Due after five through ten years 52,878 55,375 81,483 83,646 Due after ten years 220,600 231,672 106,086 109,765 $ 291,861 $ 306,046 $ 219,767 $ 226,734 U.S. Government-sponsored mortgage-backed securities 342,550 346,266 398,832 405,646 Equity securities 3,912 3,912 Certificates of deposit 2,176 2,176 Total Investment Securities $ 640,499 $ 658,400 $ 618,599 $ 632,380 |
Schedule of gross gains on sales and redemptions of available for sale securities | Gross gains on the sales and redemptions of available for sale securities for the three months ended March 31, 2016 and 2015 are shown below. Three Months Ended 2016 2015 Sales and Redemptions of Available for Sale Securities: Gross gains $ 997 $ 1,025 Gross losses Other-than-temporary impairment losses |
Schedule of investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | The following table shows investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 , and December 31, 2015 : Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at March 31, 2016 State and municipal $ 8,375 $ 98 $ 1,197 $ 9 $ 9,572 $ 107 U.S. Government-sponsored mortgage-backed securities 1,131 5 $ 3,845 $ 35 4,976 40 Total Temporarily Impaired Available for Sale Securities 9,506 103 5,042 44 14,548 147 Temporarily Impaired Held to Maturity Securities at March 31, 2016 State and municipal 3,179 48 673 1 3,852 49 U.S. Government-sponsored mortgage-backed securities 4,784 25 4,784 25 Total Temporarily Impaired Held to Maturity Securities 3,179 48 5,457 26 8,636 74 Total Temporarily Impaired Investment Securities $ 12,685 $ 151 $ 10,499 $ 70 $ 23,184 $ 221 Less than 12 Months Total Fair Gross Fair Gross Fair Gross Temporarily Impaired Available for Sale Securities at December 31, 2015 State and municipal $ 7,558 $ 60 $ 7,558 $ 60 U.S. Government-sponsored mortgage-backed securities 83,396 445 2,101 73 85,497 518 Total Temporarily Impaired Available for Sale Securities 90,954 505 2,101 73 93,055 578 Temporarily Impaired Held to Maturity Securities at December 31, 2015 State and municipal 1,982 15 1,982 15 U.S. Government-sponsored mortgage-backed securities 69,641 519 12,906 268 82,547 787 Total Temporarily Impaired Held to Maturity Securities 69,641 519 14,888 283 84,529 802 Total Temporarily Impaired Investment Securities $ 160,595 $ 1,024 $ 16,989 $ 356 $ 177,584 $ 1,380 |
Schedule of investments in debt and equity securities reported in the financial statements at an amount less than their historical cost | Certain investments in debt and equity securities are reported in the financial statements at an amount less than their historical cost as indicated in the table below. March 31, 2016 December 31, 2015 Investments reported at less than historical cost: Historical cost $ 23,406 $ 178,964 Fair value $ 23,184 $ 177,584 Percent of the Corporation's available for sale and held to maturity portfolio 1.8 % 13.9 % |
Schedule of securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income | The following table provides information about those securities for which only a credit loss was recognized in income and other losses were recorded in other comprehensive income. Accumulated Accumulated Credit losses on debt securities held: Balance, January 1 $ 500 Reductions for previous other-than-temporary losses realized on securities sold during the year (500 ) Balance, March 31 $ — $ — |
Loans and Allowance (Tables)
Loans and Allowance (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Composition of loan portfolio by loan class | The following table shows the composition of the Corporation’s loan portfolio by loan class for the periods indicated: March 31, 2016 December 31, 2015 Commercial and industrial loans $ 1,060,559 $ 1,057,075 Agricultural production financing and other loans to farmers 92,137 97,711 Real estate loans: Construction 391,621 366,704 Commercial and farmland 1,806,395 1,802,921 Residential 769,592 786,105 Home Equity 353,946 348,613 Individuals' loans for household and other personal expenditures 73,622 74,717 Lease financing receivables, net of unearned income 461 588 Other commercial loans 161,574 159,388 Loans $ 4,709,907 $ 4,693,822 Allowance for loan losses (62,086 ) (62,453 ) Net Loans $ 4,647,821 $ 4,631,369 |
Changes in allowance for loan losses | The following tables summarize changes in the allowance for loan losses by loan segment for the three months ended March 31, 2016 , and March 31, 2015 : Three Months Ended March 31, 2016 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, January 1 $ 26,478 $ 22,145 $ 2,689 $ 11,139 $ 2 $ 62,453 Provision for losses 139 214 33 164 550 Recoveries on loans 292 952 78 312 1,634 Loans charged off (645 ) (994 ) (153 ) (759 ) (2,551 ) Balances, March 31, 2016 $ 26,264 $ 22,317 $ 2,647 $ 10,856 $ 2 $ 62,086 Three Months Ended March 31, 2015 Commercial Commercial Consumer Residential Finance Total Allowance for loan losses: Balances, January 1 $ 28,824 $ 19,327 $ 2,658 $ 13,152 $ 3 $ 63,964 Provision for losses 1,834 (2,896 ) 527 534 1 Recoveries on loans 450 412 78 132 1,072 Loans charged off (1,101 ) (460 ) (125 ) (549 ) (2,235 ) Balances, March 31, 2015 $ 30,007 $ 16,383 $ 3,138 $ 13,269 $ 4 $ 62,801 |
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 segment as of the periods indicated: March 31, 2016 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 967 $ 192 $ 59 $ 1,218 Collectively evaluated for impairment 25,229 22,075 $ 2,647 10,760 $ 2 60,713 Loans Acquired with Deteriorated Credit Quality 68 50 37 155 Total Allowance for Loan Losses $ 26,264 $ 22,317 $ 2,647 $ 10,856 $ 2 $ 62,086 Loan Balances: Individually evaluated for impairment $ 7,899 $ 22,411 $ 4,136 $ 34,446 Collectively evaluated for impairment 1,299,488 2,127,038 $ 73,622 1,114,759 $ 461 4,615,368 Loans Acquired with Deteriorated Credit Quality 6,883 48,567 4,643 60,093 Loans $ 1,314,270 $ 2,198,016 $ 73,622 $ 1,123,538 $ 461 $ 4,709,907 December 31, 2015 Commercial Commercial Consumer Residential Finance Total Allowance Balances: Individually evaluated for impairment $ 1,277 $ 243 $ 169 $ 1,689 Collectively evaluated for impairment 25,201 21,753 $ 2,689 10,966 $ 2 60,611 Loans Acquired with Deteriorated Credit Quality 149 $ 4 153 Total Allowance for Loan Losses $ 26,478 $ 22,145 $ 2,689 $ 11,139 $ 2 $ 62,453 Loan Balances: Individually evaluated for impairment $ 7,877 $ 16,670 $ 4,020 $ 28,567 Collectively evaluated for impairment 1,298,988 2,096,089 $ 74,717 1,125,316 $ 588 4,595,698 Loans Acquired with Deteriorated Credit Quality 7,309 56,866 5,382 69,557 Loans $ 1,314,174 $ 2,169,625 $ 74,717 $ 1,134,718 $ 588 $ 4,693,822 |
Summary of non-accrual loans by loan class | The following table summarizes the Corporation’s non-accrual loans by loan class as of the periods indicated: March 31, 2016 December 31, 2015 Commercial and industrial loans $ 3,694 $ 4,634 Agriculture production financing and other loans to farmers 1,535 827 Real estate Loans: Construction 731 736 Commercial and farmland 16,440 11,277 Residential 11,674 11,818 Home Equity 2,449 1,952 Individuals' loans for household and other personal expenditures 196 145 Total $ 36,719 $ 31,389 |
Composition of impaired loans by loan class | The following tables show the composition of the Corporation’s commercial impaired loans by loan class as of the periods indicated: March 31, 2016 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 21,751 $ 11,559 Agriculture production financing and other loans to farmers 724 716 Real estate Loans: Construction 8,482 4,300 Commercial and farmland 88,293 64,710 Residential 11,991 7,317 Home equity 296 225 Other commercial loans 18 Total $ 131,555 $ 88,827 Impaired loans with related allowance: Commercial and industrial loans $ 1,610 $ 1,357 $ 620 Agriculture production financing and other loans to farmers 1,150 1,150 415 Real estate Loans: Commercial and farmland 1,907 1,738 242 Residential 946 877 96 Total $ 5,613 $ 5,122 $ 1,373 Total Impaired Loans $ 137,168 $ 93,949 $ 1,373 December 31, 2015 Unpaid Recorded Related Impaired loans with no related allowance: Commercial and industrial loans $ 22,151 $ 11,669 Agriculture production financing and other loans to farmers 370 361 Real estate Loans: Construction 4,551 2,336 Commercial and farmland 95,930 69,024 Residential 11,262 7,338 Home equity 297 247 Other commercial loans 20 Total $ 134,581 $ 90,975 Impaired loans with related allowance: Commercial and industrial loans $ 3,043 $ 2,690 $ 1,247 Agriculture production financing and other loans to farmers 466 466 30 Real estate Loans: Commercial and farmland 2,144 1,933 392 Residential 2,300 1,463 173 Total $ 7,953 $ 6,552 $ 1,842 Total Impaired Loans $ 142,534 $ 97,527 $ 1,842 Three Months Ended March 31, 2016 Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 12,052 $ 109 Agriculture production financing and other loans to farmers 716 1 Real estate Loans: Construction 4,262 85 Commercial and farmland 65,461 871 Residential 7,746 58 Home equity 225 Total $ 90,462 $ 1,124 Impaired loans with related allowance: Commercial and industrial loans $ 1,363 $ 9 Agriculture production financing and other loans to farmers 1,315 Real estate Loans: Commercial and farmland 1,756 Residential 879 Total $ 5,313 $ 9 Total Impaired Loans $ 95,775 $ 1,133 Three Months Ended March 31, 2015 Average Interest Impaired loans with no related allowance: Commercial and industrial loans $ 16,150 $ 139 Agriculture production financing and other loans to farmers 303 Real estate Loans: Construction 8,542 104 Commercial and farmland 69,036 878 Residential 8,528 48 Home equity 533 3 Total $ 103,092 $ 1,172 Impaired loans with related allowance: Commercial and industrial loans $ 4,379 $ 10 Agriculture production financing and other loans to farmers 3,991 Real estate Loans: Commercial and farmland 3,113 Residential 1,761 Total $ 13,244 $ 10 Total Impaired Loans $ 116,336 $ 1,182 |
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 periods indicated. Consumer non-performing loans include accruing consumer loans 90 plus days delinquent and consumer non-accrual loans. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified date. 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. March 31, 2016 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 984,052 $ 46,952 $ 29,555 $ 1,060,559 Agriculture production financing and other loans to farmers 48,604 22,829 20,704 92,137 Real estate Loans: Construction 365,808 4,021 3,441 $ 18,272 $ 79 391,621 Commercial and farmland 1,669,322 55,336 81,737 1,806,395 Residential 158,931 8,095 10,706 584,262 7,598 769,592 Home equity 7,164 72 568 343,812 2,330 353,946 Individuals' loans for household and other personal expenditures 73,322 300 73,622 Lease financing receivables, net of unearned income 371 90 461 Other commercial loans 161,564 10 161,574 Loans $ 3,395,816 $ 137,315 $ 146,801 $ 1,019,668 $ 10,307 $ 4,709,907 December 31, 2015 Commercial Commercial Commercial Substandard Commercial Commercial Loss Consumer Performing Consumer Total Commercial and industrial loans $ 962,340 $ 48,432 $ 45,984 $ 319 $ 1,057,075 Agriculture production financing and other loans to farmers 77,884 6,665 13,162 97,711 Real estate Loans: Construction 345,449 1,271 1,790 $ 18,114 $ 80 366,704 Commercial and farmland 1,679,141 46,442 77,338 1,802,921 Residential 171,576 3,107 10,428 593,533 7,461 786,105 Home equity 8,218 48 600 337,718 2,029 348,613 Individuals' loans for household and other personal expenditures 74,491 226 74,717 Lease financing receivables, net of unearned income 495 93 588 Other commercial loans 159,388 159,388 Loans $ 3,404,491 $ 105,965 $ 149,395 $ 319 $ 1,023,856 $ 9,796 $ 4,693,822 |
Past due aging of loan portfolio by loan class | The tables below show a past due aging of the Corporation’s loan portfolio, by loan class, as of March 31, 2016 , and December 31, 2015 . March 31, 2016 Current 30-59 Days 60-89 Days Loans > 90 Days Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,054,549 $ 2,017 $ 239 $ 60 $ 3,694 $ 6,010 $ 1,060,559 Agriculture production financing and other loans to farmers 90,452 150 1,535 1,685 92,137 Real estate Loans: Construction 385,222 5,668 731 6,399 391,621 Commercial and farmland 1,788,591 1,355 9 16,440 17,804 1,806,395 Residential 753,121 3,565 539 693 11,674 16,471 769,592 Home equity 349,986 1,298 107 106 2,449 3,960 353,946 Individuals' loans for household and other personal expenditures 73,053 168 101 104 196 569 73,622 Lease financing receivables, net of unearned income 461 461 Other commercial loans 161,574 161,574 Loans $ 4,657,009 $ 14,221 $ 995 $ 963 $ 36,719 $ 52,898 $ 4,709,907 December 31, 2015 Current 30-59 Days 60-89 Days Loans > 90 Days Non-Accrual Total Past Due Total Commercial and industrial loans $ 1,052,275 $ 166 $ 4,634 $ 4,800 $ 1,057,075 Agriculture production financing and other loans to farmers 96,884 827 827 97,711 Real estate Loans: Construction 362,084 3,884 736 4,620 366,704 Commercial and farmland 1,786,092 5,552 11,277 16,829 1,802,921 Residential 765,634 6,090 $ 2,061 $ 502 11,818 20,471 786,105 Home equity 344,344 1,433 560 324 1,952 4,269 348,613 Individuals' loans for household and other personal expenditures 73,990 445 56 81 145 727 74,717 Lease financing receivables, net of unearned income 588 588 Other commercial loans 159,324 64 64 159,388 Loans $ 4,641,215 $ 17,570 $ 2,741 $ 907 $ 31,389 $ 52,607 $ 4,693,822 |
Schedules of troubled debt restructurings | The following tables summarize troubled debt restructurings in the Corporation's loan portfolio that occurred during the periods indicated: Three Months Ended March 31, 2016 Pre-Modification Post-Modification Number Commercial and industrial loans $ 260 $ 260 3 Agriculture production financing and other loans to farmers 465 331 2 Real estate Loans: Commercial and farmland 352 352 1 Residential 113 133 3 Individuals' loans for household and other personal expenditures 13 13 1 Total $ 1,203 $ 1,089 10 Three Months Ended March 31, 2015 Pre-Modification Post-Modification Number Commercial and industrial loans $ 2,362 $ 1,361 4 Real estate Loans: Construction 79 80 1 Commercial and farmland 1,743 1 Residential 24 24 1 Total $ 2,465 $ 3,208 7 The following tables summarize the recorded investment of troubled debt restructurings, by modification type, that occurred during the periods indicated: Three Months Ended March 31, 2016 Term Rate Combination Total Commercial and industrial loans $ 260 $ 260 Agriculture production financing and other loans to farmers $ 331 331 Real estate Loans: Commercial and farmland 351 351 Residential 123 123 Individuals' loans for household and other personal expenditures 13 13 Total $ 467 $ 611 $ 1,078 Three Months Ended March 31, 2015 Term Rate Combination Total Commercial and industrial loans $ 253 $ 1,079 $ 1,332 Real estate Loans: Construction 2 2 Commercial and farmland 1,548 1,548 Residential $ 26 26 Total $ 1,803 $ 26 $ 1,079 $ 2,908 |
Troubled debt restructurings that subsequently defaulted | The following tables summarize troubled debt restructures that occurred during the twelve months ended March 31, 2016 and March 31, 2015 , that subsequently defaulted during the period indicated and remained in default at period end. For purposes of this discussion, a loan is considered in default if it is 30 or more days past due. Three Months Ended March 31, 2016 Number of Recorded Commercial and industrial loans 3 $ 260 Real estate Loans: Commercial and farmland 1 717 Total 4 $ 977 Three Months Ended March 31, 2015 Number of Recorded Home Equity 1 $ 6 Total 1 $ 6 |
Accounting for Certain Loans 30
Accounting for Certain Loans Acquired in a Purchase (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of outstanding balance and carrying amount of loans acquired during the period | The following table includes the outstanding balance and carrying amount of all acquired loans which were included in the Corporation's balance sheet at March 31, 2016 , and December 31, 2015 . March 31, 2016 Ameriana C Financial Community CFS SCB Total Commercial and industrial loans $ 23,363 $ 99 $ 7,224 $ 50,476 $ 4,351 $ 85,513 Agricultural production financing and other loans to farmers 2,472 1,263 3,735 Real estate loans: Construction 30,414 6,928 9,681 862 47,885 Commercial and farmland 131,371 25,729 47,190 175,692 12,494 392,476 Residential 116,116 52,720 19,212 113,633 5,645 307,326 Home Equity 13,390 8,824 7,445 30,705 13,000 73,364 Individuals' loans for household and other personal expenditures 1,433 8 306 348 43 2,138 Other commercial loans 1,840 70 1,910 Total $ 317,927 $ 94,308 $ 93,530 $ 371,786 $ 36,796 $ 914,347 Carrying Amount $ 304,615 $ 92,097 $ 87,523 $ 353,882 $ 32,390 $ 870,507 Allowance 105 50 155 Carrying Amount Net of Allowance $ 304,615 $ 92,097 $ 87,418 $ 353,832 $ 32,390 $ 870,352 December 31, 2015 Ameriana C Financial Community CFS SCB Total Commercial and industrial loans $ 21,888 $ 104 $ 6,769 $ 52,060 $ 4,620 $ 85,441 Agricultural production financing and other loans to farmers 1,761 1,288 3,049 Real estate loans: Construction 23,365 6,214 10,436 976 40,991 Commercial and farmland 144,514 27,838 49,997 189,372 13,293 425,014 Residential 123,231 55,856 21,886 118,105 6,063 325,141 Home Equity 14,261 9,144 8,231 31,986 13,431 77,053 Individuals' loans for household and other personal expenditures 1,731 10 461 443 48 2,693 Other commercial loans 1,928 72 2,000 Total $ 330,918 $ 99,166 $ 99,541 $ 393,014 $ 38,743 $ 961,382 Carrying Amount $ 319,664 $ 96,829 $ 93,355 $ 373,649 $ 34,092 $ 917,589 Allowance 4 149 153 Carrying Amount Net of Allowance $ 319,664 $ 96,829 $ 93,351 $ 373,500 $ 34,092 $ 917,436 |
Schedule of accretable yield, or income expected to be collected, and reclassifications from nonaccretable yield | The accretable yield, or income expected to be collected, and reclassifications from nonaccretable yield, are identified in the table below. The table reflects only purchased loans accounted for under ASC 310-30 and not the entire portfolio of purchased loans. Three Months Ended March 31, 2016 Ameriana C Financial Community CFS SCB Total Beginning balance $ 2,160 $ 114 $ 1,508 $ 1,188 $ 642 $ 5,612 Additions Accretion (40 ) (15 ) (63 ) (1,290 ) (88 ) (1,496 ) Reclassification from nonaccretable 1 11 1,135 36 1,183 Disposals Ending balance $ 2,120 $ 100 $ 1,456 $ 1,033 $ 590 $ 5,299 Three Months Ended March 31, 2015 Community CFS SCB Total Beginning balance $ 2,122 $ 2,400 $ 868 $ 5,390 Additions Accretion (179 ) (1,341 ) (185 ) (1,705 ) Reclassification from nonaccretable 47 950 135 1,132 Disposals Ending balance $ 1,990 $ 2,009 $ 818 $ 4,817 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | 2016 2015 Balance, January 1 $ 243,129 $ 202,724 Measurement period adjustment 871 Balance, March 31 $ 244,000 $ 202,724 |
Core Deposit and Other Intang32
Core Deposit and Other Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of core deposit and other intangibles | The carrying basis and accumulated amortization of recognized core deposit and other intangibles are noted below. March 31, 2016 March 31, 2015 Gross carrying amount $ 16,635 $ 16,031 Accumulated amortization (978 ) (721 ) Measurement period adjustment 2,142 Core deposit and other intangibles $ 17,799 $ 15,310 |
Schedule of estimated future amortization expense | Estimated future amortization expense is summarized as follows: Amortization Expense 2016 $ 2,933 2017 3,614 2018 2,299 2019 1,914 2020 1,733 After 2020 5,306 $ 17,799 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , and December 31, 2015 . Asset Derivatives Liability Derivatives March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Balance Fair Balance Fair Balance Fair Balance Fair Derivatives designated as hedging instruments: Interest rate contracts Other Assets $ 12 Other Assets $ 36 Other Liabilities $ 4,565 Other Liabilities $ 2,921 Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 8,635 Other Assets $ 4,938 Other Liabilities $ 9,091 Other Liabilities $ 5,149 |
Schedule of derivative instruments, gain (loss) in Income Statement | The tables below present the effect of the Corporation’s derivative financial instruments on the Income Statement for the three months ended March 31, 2016, and 2015. Derivatives Not Designated as Hedging Instruments under FASB ASC 815-10 Location of Gain (Loss) Recognized Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative Three Months Ended Three Months Ended Interest rate contracts Other income $ (245 ) $ (100 ) The amount of gain (loss) recognized in other comprehensive income is included in the table below for the periods indicated. Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative Three Months Ended March 31, 2016 March 31, 2015 Interest Rate Products $ (1,954 ) $ (1,276 ) The amount of gain (loss) reclassified from other comprehensive income into income is included in the table below for the periods indicated. Location of Loss Reclassified from Accumulated Other Comprehensive Income (Effective Portion) Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income Three Months Ended March 31, 2016 March 31, 2015 Interest Expense $ (324 ) $ (354 ) |
Disclosures About Fair Value 34
Disclosures About Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements of assets and liabilities recognized in Consolidated Condensed Balance Sheets measured at fair value | The following table presents the fair value measurements of assets and liabilities recognized in the Consolidated Condensed Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2016 , and December 31, 2015 . Fair Value Measurements Using: March 31, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Significant Available for sale securities: U.S. Government-sponsored agency securities $ 103 $ 103 State and municipal 330,120 324,651 $ 5,469 U.S. Government-sponsored mortgage-backed securities 302,586 302,586 Corporate obligations 31 31 Equity securities 3,945 3,941 4 Interest rate swap asset 8,635 8,635 Interest rate cap 12 12 Interest rate swap liability 13,656 13,656 Fair Value Measurements Using: December 31, 2015 Fair Value Quoted Prices in Significant Other Observable Inputs Significant Available for sale securities: U.S. Government-sponsored agency securities $ 104 $ 104 State and municipal 305,911 300,014 $ 5,897 U.S. Government-sponsored mortgage-backed securities 346,266 346,266 Certificates of deposit 2,176 2,176 Corporate obligations 31 31 Equity securities 3,912 3,908 4 Interest rate swap asset 4,938 4,938 Interest rate cap 36 36 Interest rate swap liability 8,070 8,070 |
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in Consolidated Condensed Balance Sheets using significant unobservable Level 3 inputs | The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the Consolidated Condensed Balance Sheets using significant unobservable (Level 3) inputs for three months ended March 31, 2016 and 2015. Available for Sale Securities Three Months Ended Three Months Ended Balance at beginning of the period $ 5,932 $ 6,646 Total realized and unrealized gains and losses: Included in other comprehensive income 38 91 Principal payments (466 ) (539 ) Ending balance $ 5,504 $ 6,198 |
Description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in Consolidated Condensed Balance Sheets | The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2016 , and December 31, 2015 . Fair Value Measurements Using March 31, 2016 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 9,530 $ 9,530 Other real estate owned 1,287 1,287 Fair Value Measurements Using December 31, 2015 Fair Value Quoted Prices in Significant Other Significant Unobservable Impaired loans (collateral dependent) $ 7,066 $ 7,066 Other real estate owned 5,529 5,529 |
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 March 31, 2016 and December 31, 2015 . March 31, 2016 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,469 Discounted cash flow Maturity/Call date 1 month to 15 yrs Blend of US Muni BQ curve A- to BBB- Discount rate .69% - 5% Corporate obligations and Equity securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 9,530 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 50% (1%) Other real estate owned $ 1,287 Appraisals Discount to reflect current market conditions 0% - 20% (2%) December 31, 2015 Fair Value Valuation Technique Unobservable Inputs Range (Weighted-Average) State and municipal securities $ 5,897 Discounted cash flow Maturity/Call date 1 month to 15 yrs Blend of US Muni BQ curve A- to BBB- Discount rate .80% - 5% Corporate obligations and Equity securities $ 35 Discounted cash flow Risk free rate 3 month LIBOR plus premium for illiquidity plus 200bps Impaired loans (collateral dependent) $ 7,066 Collateral based measurements Discount to reflect current market conditions and ultimate collectability 0% - 50% (2%) Other real estate owned $ 5,529 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 March 31, 2016 , and December 31, 2015 . March 31, 2016 Carrying Quoted Prices in Active Markets Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 85,738 $ 85,738 Interest-bearing time deposits 77,453 77,453 Investment securities available for sale 636,785 $ 631,281 $ 5,504 Investment securities held to maturity 633,992 626,164 29,281 Loans held for sale 3,628 3,628 Loans 4,647,821 4,600,417 Federal Reserve Bank and Federal Home Loan Bank stock 37,553 37,553 Interest rate swap and cap asset 8,647 8,647 Interest receivable 22,836 22,836 Liabilities: Deposits $ 5,311,070 $ 4,139,907 $ 1,158,592 Borrowings: Federal funds purchased 602 602 Securities sold under repurchase agreements 150,134 150,118 Federal Home Loan Bank advances 263,588 265,170 Subordinated debentures and term loans 127,523 98,807 Interest rate swap liability 13,656 13,656 Interest payable 3,910 3,910 December 31, 2015 Carrying Quoted Prices in Active Markets Significant Significant Unobservable (Level 1) (Level 2) (Level 3) Assets: Cash and cash equivalents $ 102,170 $ 102,170 Interest-bearing time deposits 32,315 32,315 Investment securities available for sale 658,400 $ 652,468 $ 5,932 Investment securities held to maturity 618,599 598,082 34,298 Loans held for sale 9,894 9,894 Loans 4,631,369 4,539,940 Federal Reserve Bank and Federal Home Loan Bank stock 37,633 37,633 Interest rate swap and cap asset 4,974 4,974 Interest receivable 24,415 24,415 Liabilities: Deposits $ 5,289,647 $ 4,095,004 $ 1,177,142 Borrowings: Federal funds purchased 49,721 49,721 Securities sold under repurchase agreements 155,325 155,325 Federal Home Loan Bank advances 235,652 236,375 Subordinated debentures and term loans 127,846 103,643 Interest rate swap liability 8,070 8,070 Interest payable 3,092 3,092 |
Transfers Accounted for as Se35
Transfers Accounted for as Secured Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of collateral pledged for all repurchase agreements accounted for as secured borrowings | The collateral pledged for all repurchase agreements that are accounted for as secured borrowings as of March 31, 2016 were: Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30-90 Days Greater Than 90 Days Total U.S. Government-sponsored mortgage-backed securities $ 127,329 $ 7,559 $ 15,246 $ 150,134 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015 : Accumulated Other Comprehensive Income (Loss) Unrealized Gains (Losses) on Securities Available for Sale Unrealized Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Defined Benefit Plans Total Balance at December 31, 2015 $ 12,325 $ (2,347 ) $ (11,340 ) $ (1,362 ) Other comprehensive income before reclassifications 5,135 (1,270 ) 3,865 Amounts reclassified from accumulated other comprehensive income (648 ) 211 (437 ) Period change 4,487 (1,059 ) — 3,428 Balance at March 31, 2016 $ 16,812 $ (3,406 ) $ (11,340 ) $ 2,066 Balance at December 31, 2014 $ 14,098 $ (2,182 ) $ (13,546 ) $ (1,630 ) Other comprehensive income before reclassifications 980 (829 ) 151 Amounts reclassified from accumulated other comprehensive income (666 ) 230 (436 ) Period change 314 (599 ) — (285 ) Balance at March 31, 2015 $ 14,412 $ (2,781 ) $ (13,546 ) $ (1,915 ) |
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 three months ended March 31, 2016 and 2015 : Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, Details about Accumulated Other Comprehensive Income (Loss)Components 2016 2015 Affected Line Item in the Statements of Income Unrealized gains (losses) on available for sale securities (1) Realized securities gains (losses) reclassified into income $ 997 $ 1,025 Other income - net realized gains on sales of available for sale securities Related income tax expense (349 ) (359 ) Income tax expense $ 648 $ 666 Unrealized gains (losses) on cash flow hedges (2) Interest rate contracts $ (324 ) $ (354 ) Interest expense - subordinated debentures and term loans Related income tax benefit 113 124 Income tax expense $ (211 ) $ (230 ) Total reclassifications for the period, net of tax $ 437 $ 436 (1) For additional detail related to unrealized gains (losses) on available for sale securities and related amounts reclassified from accumulated other comprehensive income see NOTE 3. INVESTMENT SECURITIES. (2) For additional detail related to unrealized gains (losses) on cash flow hedges and related amounts reclassified from accumulated other comprehensive income see NOTE 8. DERIVATIVE FINANCIAL INSTRUMENTS. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Components of share-based compensation awards | The following table summarizes the components of the Corporation's share-based compensation awards recorded as expense: Three Months Ended 2016 2015 Stock and ESPP Options Pre-tax compensation expense $ 15 $ 27 Income tax expense (benefit) (1 ) Stock and ESPP option expense, net of income taxes $ 15 $ 26 Restricted Stock Awards Pre-tax compensation expense $ 578 $ 490 Income tax benefit (202 ) (168 ) Restricted stock awards expense, net of income taxes $ 376 $ 322 Total Share-Based Compensation Pre-tax compensation expense $ 593 $ 517 Income tax benefit (202 ) (169 ) Total share-based compensation expense, net of income taxes $ 391 $ 348 |
Stock option activity under stock option plans | Stock option activity under the Corporation's stock option plans as of March 31, 2016 and changes during the three months ended March 31, 2016 , were as follows: Number of Weighted-Average Exercise Price Weighted Average Remaining Aggregate Outstanding at January 1, 2016 442,012 $ 19.99 Granted — Exercised (6,700 ) $ 10.80 Canceled (49,500 ) $ 25.14 Outstanding March 31, 2016 385,812 $ 19.49 3.23 1,992,120 Vested and Expected to Vest at March 31, 2016 385,812 $ 19.49 3.23 1,992,120 Exercisable at March 31, 2016 385,812 $ 19.49 3.23 1,992,120 |
Unvested RSAs outstanding | The following table summarizes information on unvested RSAs outstanding as of March 31, 2016 : Number of Shares Weighted-Average Unvested RSAs at January 1, 2016 354,504 $ 19.65 Granted 110,623 $ 23.41 Vested (101,984 ) $ 15.32 Forfeited (419 ) $ 21.60 Unvested RSAs at March 31, 2016 362,724 $ 22.31 |
Income Tax (Tables)
Income Tax (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of differences between income taxes at federal statutory tax rate and effective tax rate | The following table summarizes the major components creating differences between income taxes at the federal statutory and the effective tax rate recorded in the consolidated statements of income for the three months ended March 31, 2016 and 2015 : Three Months Ended 2016 2015 Reconciliation of Federal Statutory to Actual Tax Expense: Federal statutory income tax at 35% $ 8,143 $ 7,702 Tax-exempt interest income (2,026 ) (1,429 ) Stock compensation 5 8 Earnings on life insurance (517 ) (262 ) Tax credits (129 ) (144 ) Other 98 (41 ) Actual Tax Expense $ 5,574 $ 5,834 Effective Tax Rate 24.0 % 26.5 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net income per share | The following table reconciles basic and diluted net income per share for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, 2016 2015 Net Income Weighted-Average Shares Per Share Net Income Weighted-Average Shares Per Share Net income available to common stockholders 17,693 40,690,573 $ 0.43 16,172 37,709,883 $ 0.43 Effect of dilutive stock options and warrants 226,399 290,191 Diluted net income per share $ 17,693 40,916,972 $ 0.43 $ 16,172 38,000,074 $ 0.43 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 31, 2015USD ($)bankshares | Apr. 17, 2015USD ($)bank$ / shares |
Ameriana | ||
Business Acquisition [Line Items] | ||
Percentage of interest acquired | 100.00% | |
Number of banking centers acquired | bank | 13 | |
Stock issued as a part of acquisition (in shares) | shares | 2.8 | |
Common stock issued, value | $ 70,400 | |
Core deposit intangible | $ 5,342 | |
Acquired intangible asset, expected useful life | 10 years | |
Purchase price | $ 70,402 | |
Ameriana | Common Stock | ||
Business Acquisition [Line Items] | ||
Number of shares of common stock | 0.9037 | |
C Financial | ||
Business Acquisition [Line Items] | ||
Percentage of interest acquired | 100.00% | |
Number of banking centers acquired | bank | 6 | |
Core deposit intangible | $ 981 | |
Acquired intangible asset, expected useful life | 10 years | |
Purchase price | $ 14,500 | |
Cash received by shareholders for each share of common stock held (usd per share) | $ / shares | $ 6.738 |
Acquisitions and Divestitures41
Acquisitions and Divestitures - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Apr. 17, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 244,000 | $ 243,129 | $ 202,724 | $ 202,724 | |
Ameriana | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | 4,068 | ||||
Interest-bearing time deposits | 8,790 | ||||
Investment securities | 61,754 | ||||
Loans | 316,929 | ||||
Premises and equipment | 13,946 | ||||
Federal Home Loan Bank stock | 2,693 | ||||
Other real estate owned | 5,613 | ||||
Interest receivable | 1,306 | ||||
Cash surrender value of life insurance | 28,188 | ||||
Other assets | 6,713 | ||||
Deposits | (383,718) | ||||
Interest payable | (24) | ||||
Federal Home Loan Bank Advances | (24,884) | ||||
Subordinated debentures | (5,487) | ||||
Other liabilities | (9,451) | ||||
Net tangible assets acquired | 26,436 | ||||
Core deposit intangible | 5,342 | ||||
Goodwill | 38,624 | ||||
Purchase price | $ 70,402 | ||||
C Financial | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 2,496 | ||||
Federal Funds sold | 7,018 | ||||
Interest-bearing time deposits | 922 | ||||
Loans | 110,625 | ||||
Premises and equipment | 7,290 | ||||
Federal Home Loan Bank stock | 855 | ||||
Interest receivable | 292 | ||||
Other assets | 119 | ||||
Deposits | (105,326) | ||||
Interest payable | (29) | ||||
Federal Home Loan Bank Advances | (18,958) | ||||
Other liabilities | (2,911) | ||||
Net tangible assets acquired | 2,393 | ||||
Core deposit intangible | 981 | ||||
Goodwill | 11,126 | ||||
Purchase price | $ 14,500 |
Acquisitions and Divestitures42
Acquisitions and Divestitures - Subsidiary Divestiture Narrative (Details) - FMIG $ in Millions | Jun. 12, 2015USD ($) |
Noncash or Part Noncash Divestitures [Line Items] | |
Purchase price | $ 18 |
Amount paid at closing | 16 |
Promissory note | $ 2 |
Term of promissory note (in years) | 2 years |
Gain on sale of subsidiary | $ 8.3 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Approximate Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Available for sale securities | ||
Amortized Cost | $ 611,972 | $ 640,499 |
Gross Unrealized Gains | 24,960 | 18,479 |
Gross Unrealized Losses | 147 | 578 |
Fair Value | 636,785 | 658,400 |
Held to maturity securities | ||
Amortized Cost | 633,992 | 618,599 |
Gross Unrealized Gains | 21,527 | 14,583 |
Gross Unrealized Losses | 74 | 802 |
Fair Value | 655,445 | 632,380 |
Amortized Cost | 1,245,964 | 1,259,098 |
Gross Unrealized Gains | 46,487 | 33,062 |
Gross Unrealized Losses | 221 | 1,380 |
Fair Value | 1,292,230 | 1,290,780 |
U.S. Government-sponsored agency securities | ||
Available for sale securities | ||
Amortized Cost | 100 | 100 |
Gross Unrealized Gains | $ 3 | $ 4 |
Gross Unrealized Losses | ||
Fair Value | $ 103 | $ 104 |
State and municipal | ||
Available for sale securities | ||
Amortized Cost | 312,516 | 291,730 |
Gross Unrealized Gains | 17,711 | 14,241 |
Gross Unrealized Losses | 107 | 60 |
Fair Value | 330,120 | 305,911 |
Held to maturity securities | ||
Amortized Cost | 218,374 | 219,767 |
Gross Unrealized Gains | 9,244 | 6,982 |
Gross Unrealized Losses | 49 | 15 |
Fair Value | 227,569 | 226,734 |
U.S. Government-sponsored mortgage-backed securities | ||
Available for sale securities | ||
Amortized Cost | 295,443 | 342,550 |
Gross Unrealized Gains | 7,183 | 4,234 |
Gross Unrealized Losses | 40 | 518 |
Fair Value | 302,586 | 346,266 |
Held to maturity securities | ||
Amortized Cost | 401,640 | 398,832 |
Gross Unrealized Gains | 12,261 | 7,601 |
Gross Unrealized Losses | 25 | 787 |
Fair Value | 413,876 | 405,646 |
Corporate obligations | ||
Available for sale securities | ||
Amortized Cost | $ 31 | $ 31 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 31 | $ 31 |
Equity securities | ||
Available for sale securities | ||
Amortized Cost | 3,882 | $ 3,912 |
Gross Unrealized Gains | $ 63 | |
Gross Unrealized Losses | ||
Fair Value | $ 3,945 | $ 3,912 |
Federal agencies | ||
Held to maturity securities | ||
Amortized Cost | 13,978 | |
Gross Unrealized Gains | $ 22 | |
Gross Unrealized Losses | ||
Fair Value | $ 14,000 | |
Certificates of deposit | ||
Available for sale securities | ||
Amortized Cost | $ 2,176 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 2,176 |
Investment Securities - Amort44
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities and Held to Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Due in one year or less - Amortized Cost | $ 3,963 | $ 4,658 |
Due after one through five years - Amortized Cost | 17,175 | 13,725 |
Due after five through ten years - Amortized Cost | 54,387 | 52,878 |
Due after ten years - Amortized Cost | 237,122 | 220,600 |
Total debt securities with a single maturity date - Amortized Cost | 312,647 | 291,861 |
Total Investment Securities - Amortized Cost | 611,972 | 640,499 |
Fair Value | ||
Due in one year or less - Fair Value | 3,990 | 4,704 |
Due after one through five years - Fair Value | 18,087 | 14,295 |
Due after five through ten years - Fair Value | 57,310 | 55,375 |
Due after ten years - Fair Value | 250,867 | 231,672 |
Total debt securities with a single maturity date - Fair Value | 330,254 | 306,046 |
Total Investment Securities - Fair Value | 636,785 | 658,400 |
Amortized Cost | ||
Due in one year or less - Amortized Cost | 2,533 | 4,144 |
Due after one through five years - Amortized Cost | 32,527 | 28,054 |
Due after five through ten years - Amortized Cost | 90,434 | 81,483 |
Due after ten years - Amortized Cost | 106,858 | 106,086 |
Total debt securities with a single maturity date - Amortized Cost | 232,352 | 219,767 |
Fair Value | ||
Due in one year or less - Fair Value | 2,541 | 4,148 |
Due after one through five years - Fair Value | 34,282 | 29,175 |
Due after five through ten years - Fair Value | 92,992 | 83,646 |
Due after ten years - Fair Value | 111,754 | 109,765 |
Total debt securities with a single maturity date - Fair Value | 241,569 | 226,734 |
Investment securities held to maturity - fair value | 655,445 | 632,380 |
U.S. Government-sponsored mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date - Amortized Cost | 295,443 | 342,550 |
Fair Value | ||
Without single maturity date - Fair Value | 302,586 | 346,266 |
Amortized Cost | ||
Without single maturity date - Amortized Cost | 401,640 | 398,832 |
Fair Value | ||
Without single maturity date - Fair Value | 413,876 | 405,646 |
Investment securities held to maturity - fair value | 413,876 | 405,646 |
Equity securities | ||
Amortized Cost | ||
Without single maturity date - Amortized Cost | 3,882 | 3,912 |
Fair Value | ||
Without single maturity date - Fair Value | $ 3,945 | $ 3,912 |
Amortized Cost | ||
Without single maturity date - Amortized Cost | ||
Fair Value | ||
Without single maturity date - Fair Value | ||
Certificates of deposit | ||
Amortized Cost | ||
Without single maturity date - Amortized Cost | $ 2,176 | |
Fair Value | ||
Without single maturity date - Fair Value | $ 2,176 | |
Amortized Cost | ||
Without single maturity date - Amortized Cost | ||
Fair Value | ||
Without single maturity date - Fair Value |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2009 | Dec. 31, 2015 | |
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Carrying value of securities pledged as collateral | $ 625,319 | $ 637,358 | ||
Book value of securities sold under agreements to repurchase | 145,639 | $ 153,789 | ||
Net realized gains on sales of available for sale securities | $ 997 | $ 1,025 | ||
Corporate obligations | ||||
Schedule of Available for sale Securities and Held to maturity Securities [Line Items] | ||||
Net impairment losses recognized in earnings | $ 500 | |||
Net realized gains on sales of available for sale securities | $ 45 |
Investment Securities - Gross G
Investment Securities - Gross Gains on Sales and Redemptions of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Sales and Redemptions of Available for Sale Securities: | ||
Gross gains | $ 997 | $ 1,025 |
Gross losses | ||
Other-than-temporary impairment losses |
Investment Securities - Investm
Investment Securities - Investments' Gross Unrealized Losses and Fair Value Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Less than 12 Months | $ 9,506 | $ 90,954 |
12 Months or Longer | 5,042 | 2,101 |
Total | 14,548 | 93,055 |
Gross Unrealized Losses | ||
Less than 12 Months | 103 | 505 |
12 Months or Longer | 44 | 73 |
Total | 147 | 578 |
Fair Value | ||
Less than 12 Months | 3,179 | 69,641 |
12 Months or Longer | 5,457 | 14,888 |
Total | 8,636 | 84,529 |
Gross Unrealized Losses | ||
Less than 12 Months | 48 | 519 |
12 Months or Longer | 26 | 283 |
Total | 74 | 802 |
Available-for-sale Securities and Held-to-maturity Securities [Abstract] | ||
Less than 12 Months, Fair Value | 12,685 | 160,595 |
12 Months or Longer, Fair Value | 10,499 | 16,989 |
Total, Fair Value | 23,184 | 177,584 |
Less than 12 Months, Gross Unrealized Losses | 151 | 1,024 |
12 Months or Longer, Gross Unrealized Losses | 70 | 356 |
Total, Gross Unrealized Losses | 221 | 1,380 |
State and municipal | ||
Fair Value | ||
Less than 12 Months | 8,375 | $ 7,558 |
12 Months or Longer | 1,197 | |
Total | 9,572 | $ 7,558 |
Gross Unrealized Losses | ||
Less than 12 Months | 98 | $ 60 |
12 Months or Longer | 9 | |
Total | 107 | $ 60 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 1,131 | 83,396 |
12 Months or Longer | 3,845 | 2,101 |
Total | 4,976 | 85,497 |
Gross Unrealized Losses | ||
Less than 12 Months | 5 | 445 |
12 Months or Longer | 35 | 73 |
Total | 40 | $ 518 |
State and municipal | ||
Fair Value | ||
Less than 12 Months | 3,179 | |
12 Months or Longer | 673 | $ 1,982 |
Total | 3,852 | $ 1,982 |
Gross Unrealized Losses | ||
Less than 12 Months | 48 | |
12 Months or Longer | 1 | $ 15 |
Total | $ 49 | 15 |
U.S. Government-sponsored mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 69,641 | |
12 Months or Longer | $ 4,784 | 12,906 |
Total | $ 4,784 | 82,547 |
Gross Unrealized Losses | ||
Less than 12 Months | 519 | |
12 Months or Longer | $ 25 | 268 |
Total | $ 25 | $ 787 |
Investment Securities - Inves48
Investment Securities - Investments in Debt and Equity Securities Reported Less than Historical Cost (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Fair value | $ 23,184 | $ 177,584 |
Investments reported at less than historical cost | ||
Schedule of Investments [Line Items] | ||
Historical cost | 23,406 | 178,964 |
Fair value | $ 23,184 | $ 177,584 |
Percent of the Corporation's available for sale and held to maturity portfolio | 1.80% | 13.90% |
Investment Securities - Debt Se
Investment Securities - Debt Securities Credit Loss Recognized in Income, and Other Losses Recorded in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Credit losses on debt securities held: | ||
Beginning balance | $ 500 | |
Reductions for previous other-than-temporary losses realized on securities sold during the year | (500) | |
Ending balance | $ 0 | $ 0 |
Loans and Allowance - Additiona
Loans and Allowance - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 3,628 | $ 9,894 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans with formal foreclosure proceedings | $ 3,208 | $ 1,391 |
Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of troubled debt restructured loans | 48.00% |
Loans and Allowance - Compositi
Loans and Allowance - Composition of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 4,709,907 | $ 4,693,822 | ||
Allowance for loan losses | (62,086) | (62,453) | $ (62,801) | $ (63,964) |
Net Loans | 4,647,821 | 4,631,369 | ||
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,060,559 | 1,057,075 | ||
Agricultural production financing and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 92,137 | 97,711 | ||
Real estate loans - Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 391,621 | 366,704 | ||
Real estate loans - Commercial and farmland | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 1,806,395 | 1,802,921 | ||
Real estate loans - Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 769,592 | 786,105 | ||
Allowance for loan losses | (10,856) | (11,139) | (13,269) | (13,152) |
Real estate loans - Home Equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 353,946 | 348,613 | ||
Individuals' loans for household and other personal expenditures | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 73,622 | 74,717 | ||
Allowance for loan losses | (2,647) | (2,689) | (3,138) | (2,658) |
Lease financing receivables, net of unearned income | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 461 | 588 | ||
Allowance for loan losses | (2) | (2) | $ (4) | $ (3) |
Other commercial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 161,574 | $ 159,388 |
Loans and Allowance - Changes i
Loans and Allowance - Changes in Allowance for Loan Losses by Loan Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for loan losses: | ||
Beginning balance | $ 62,453 | $ 63,964 |
Provision for losses | 550 | |
Recoveries on loans | 1,634 | $ 1,072 |
Loans charged off | (2,551) | (2,235) |
Ending balance | 62,086 | 62,801 |
Commercial | ||
Allowance for loan losses: | ||
Beginning balance | 26,478 | 28,824 |
Provision for losses | 139 | 1,834 |
Recoveries on loans | 292 | 450 |
Loans charged off | (645) | (1,101) |
Ending balance | 26,264 | 30,007 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 22,145 | 19,327 |
Provision for losses | 214 | (2,896) |
Recoveries on loans | 952 | 412 |
Loans charged off | (994) | (460) |
Ending balance | 22,317 | 16,383 |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 2,689 | 2,658 |
Provision for losses | 33 | 527 |
Recoveries on loans | 78 | 78 |
Loans charged off | (153) | (125) |
Ending balance | 2,647 | 3,138 |
Residential | ||
Allowance for loan losses: | ||
Beginning balance | 11,139 | 13,152 |
Provision for losses | 164 | 534 |
Recoveries on loans | 312 | 132 |
Loans charged off | (759) | (549) |
Ending balance | 10,856 | 13,269 |
Finance Leases | ||
Allowance for loan losses: | ||
Beginning balance | $ 2 | 3 |
Provision for losses | $ 1 | |
Recoveries on loans | ||
Loans charged off | ||
Ending balance | $ 2 | $ 4 |
Loans and Allowance - Allowance
Loans and Allowance - Allowance for Credit Losses and Loan Portfolio by Loan Segment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | $ 1,218 | $ 1,689 | ||
Allowance balances - Collectively evaluated for impairment | 60,713 | 60,611 | ||
Total Allowance for Loan Losses | 62,086 | 62,453 | $ 62,801 | $ 63,964 |
Loan balances - Individually evaluated for impairment | 34,446 | 28,567 | ||
Loan balances - Collectively evaluated for impairment | 4,615,368 | 4,595,698 | ||
Loans | 4,709,907 | 4,693,822 | ||
Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Allowance for Loan Losses | 155 | 153 | ||
Loans | 60,093 | 69,557 | ||
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 967 | 1,277 | ||
Allowance balances - Collectively evaluated for impairment | 25,229 | 25,201 | ||
Total Allowance for Loan Losses | 26,264 | 26,478 | 30,007 | 28,824 |
Loan balances - Individually evaluated for impairment | 7,899 | 7,877 | ||
Loan balances - Collectively evaluated for impairment | 1,299,488 | 1,298,988 | ||
Loans | 1,314,270 | $ 1,314,174 | ||
Commercial | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Allowance for Loan Losses | 68 | |||
Loans | 6,883 | $ 7,309 | ||
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | 192 | 243 | ||
Allowance balances - Collectively evaluated for impairment | 22,075 | 21,753 | ||
Total Allowance for Loan Losses | 22,317 | 22,145 | 16,383 | 19,327 |
Loan balances - Individually evaluated for impairment | 22,411 | 16,670 | ||
Loan balances - Collectively evaluated for impairment | 2,127,038 | 2,096,089 | ||
Loans | 2,198,016 | 2,169,625 | ||
Commercial Real Estate | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Allowance for Loan Losses | 50 | 149 | ||
Loans | $ 48,567 | $ 56,866 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | ||||
Allowance balances - Collectively evaluated for impairment | $ 2,647 | $ 2,689 | ||
Total Allowance for Loan Losses | $ 2,647 | $ 2,689 | 3,138 | 2,658 |
Loan balances - Individually evaluated for impairment | ||||
Loan balances - Collectively evaluated for impairment | $ 73,622 | $ 74,717 | ||
Loans | $ 73,622 | $ 74,717 | ||
Consumer | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Allowance for Loan Losses | ||||
Loans | ||||
Residential | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | $ 59 | $ 169 | ||
Allowance balances - Collectively evaluated for impairment | 10,760 | 10,966 | ||
Total Allowance for Loan Losses | 10,856 | 11,139 | 13,269 | 13,152 |
Loan balances - Individually evaluated for impairment | 4,136 | 4,020 | ||
Loan balances - Collectively evaluated for impairment | 1,114,759 | 1,125,316 | ||
Loans | 1,123,538 | 1,134,718 | ||
Residential | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Allowance for Loan Losses | 37 | 4 | ||
Loans | $ 4,643 | $ 5,382 | ||
Finance Leases | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance balances - Individually evaluated for impairment | ||||
Allowance balances - Collectively evaluated for impairment | $ 2 | $ 2 | ||
Total Allowance for Loan Losses | $ 2 | $ 2 | $ 4 | $ 3 |
Loan balances - Individually evaluated for impairment | ||||
Loan balances - Collectively evaluated for impairment | $ 461 | $ 588 | ||
Loans | $ 461 | $ 588 | ||
Finance Leases | Loans Acquired with Deteriorated Credit Quality | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Total Allowance for Loan Losses | ||||
Loans |
Loans and Allowance - Summary o
Loans and Allowance - Summary of Non-Accrual Loans by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 36,719 | $ 31,389 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 3,694 | 4,634 |
Agricultural production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 1,535 | 827 |
Real estate loans - Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 731 | 736 |
Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 16,440 | 11,277 |
Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 11,674 | 11,818 |
Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,449 | 1,952 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 196 | $ 145 |
Loans and Allowance - Composi55
Loans and Allowance - Composition of Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 131,555 | $ 134,581 | |
Impaired loans with related allowance | 5,613 | 7,953 | |
Total Impaired Loans | 137,168 | 142,534 | |
Recorded Investment | |||
Impaired loans with no related allowance | 88,827 | 90,975 | |
Impaired loans with related allowance | 5,122 | 6,552 | |
Total Impaired Loans | 93,949 | 97,527 | |
Related Allowance | 1,373 | 1,842 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 90,462 | $ 103,092 | |
Impaired loans with related allowance | 5,313 | 13,244 | |
Total Impaired Loans | 95,775 | 116,336 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 1,124 | 1,172 | |
Impaired loans with related allowance | 9 | 10 | |
Total Impaired Loans | 1,133 | 1,182 | |
Commercial and industrial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 21,751 | 22,151 | |
Impaired loans with related allowance | 1,610 | 3,043 | |
Recorded Investment | |||
Impaired loans with no related allowance | 11,559 | 11,669 | |
Impaired loans with related allowance | 1,357 | 2,690 | |
Related Allowance | 620 | 1,247 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 12,052 | 16,150 | |
Impaired loans with related allowance | 1,363 | 4,379 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 109 | 139 | |
Impaired loans with related allowance | 9 | 10 | |
Agricultural production financing and other loans to farmers | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 724 | 370 | |
Impaired loans with related allowance | 1,150 | 466 | |
Recorded Investment | |||
Impaired loans with no related allowance | 716 | 361 | |
Impaired loans with related allowance | 1,150 | 466 | |
Related Allowance | 415 | 30 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 716 | 303 | |
Impaired loans with related allowance | 1,315 | $ 3,991 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 1 | ||
Impaired loans with related allowance | |||
Real estate loans - Construction | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 8,482 | 4,551 | |
Recorded Investment | |||
Impaired loans with no related allowance | 4,300 | 2,336 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 4,262 | $ 8,542 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | 85 | 104 | |
Real estate loans - Commercial and farmland | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | 88,293 | 95,930 | |
Impaired loans with related allowance | 1,907 | 2,144 | |
Recorded Investment | |||
Impaired loans with no related allowance | 64,710 | 69,024 | |
Impaired loans with related allowance | 1,738 | 1,933 | |
Related Allowance | 242 | 392 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 65,461 | 69,036 | |
Impaired loans with related allowance | 1,756 | 3,113 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 871 | $ 878 | |
Impaired loans with related allowance | |||
Real estate loans - Residential | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 11,991 | 11,262 | |
Impaired loans with related allowance | 946 | 2,300 | |
Recorded Investment | |||
Impaired loans with no related allowance | 7,317 | 7,338 | |
Impaired loans with related allowance | 877 | 1,463 | |
Related Allowance | 96 | 173 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | 7,746 | $ 8,528 | |
Impaired loans with related allowance | 879 | 1,761 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 58 | $ 48 | |
Impaired loans with related allowance | |||
Real estate loans - Home equity | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 296 | 297 | |
Recorded Investment | |||
Impaired loans with no related allowance | 225 | 247 | |
Average Recorded Investment | |||
Impaired loans with no related allowance | $ 225 | $ 533 | |
Interest Income Recognized | |||
Impaired loans with no related allowance | $ 3 | ||
Other commercial loans | |||
Unpaid Principal Balance | |||
Impaired loans with no related allowance | $ 18 | $ 20 | |
Recorded Investment | |||
Impaired loans with no related allowance |
Loans and Allowance - Credit Qu
Loans and Allowance - Credit Quality of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 4,709,907 | $ 4,693,822 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,060,559 | 1,057,075 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 92,137 | 97,711 |
Real estate loans - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 391,621 | 366,704 |
Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,806,395 | 1,802,921 |
Real estate loans - Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 769,592 | 786,105 |
Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 353,946 | 348,613 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,622 | 74,717 |
Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 461 | 588 |
Other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 161,574 | 159,388 |
Commercial Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,395,816 | 3,404,491 |
Commercial Pass | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 984,052 | 962,340 |
Commercial Pass | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 48,604 | 77,884 |
Commercial Pass | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 365,808 | 345,449 |
Commercial Pass | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,669,322 | 1,679,141 |
Commercial Pass | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 158,931 | 171,576 |
Commercial Pass | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,164 | 8,218 |
Commercial Pass | Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 371 | 495 |
Commercial Pass | Other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 161,564 | 159,388 |
Commercial Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 137,315 | 105,965 |
Commercial Special Mention | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 46,952 | 48,432 |
Commercial Special Mention | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 22,829 | 6,665 |
Commercial Special Mention | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,021 | 1,271 |
Commercial Special Mention | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55,336 | 46,442 |
Commercial Special Mention | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 8,095 | 3,107 |
Commercial Special Mention | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 72 | 48 |
Commercial Special Mention | Other commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10 | |
Commercial Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 146,801 | 149,395 |
Commercial Substandard | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 29,555 | 45,984 |
Commercial Substandard | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 20,704 | 13,162 |
Commercial Substandard | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,441 | 1,790 |
Commercial Substandard | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 81,737 | 77,338 |
Commercial Substandard | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,706 | 10,428 |
Commercial Substandard | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 568 | 600 |
Commercial Substandard | Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 90 | 93 |
Commercial Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 319 | |
Commercial Doubtful | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 319 | |
Commercial Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Consumer Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,019,668 | $ 1,023,856 |
Consumer Performing | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 18,272 | 18,114 |
Consumer Performing | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 584,262 | 593,533 |
Consumer Performing | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 343,812 | 337,718 |
Consumer Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,322 | 74,491 |
Consumer Non-Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 10,307 | 9,796 |
Consumer Non-Performing | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 79 | $ 80 |
Consumer Non-Performing | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | ||
Consumer Non-Performing | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 7,598 | $ 7,461 |
Consumer Non-Performing | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,330 | 2,029 |
Consumer Non-Performing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 300 | $ 226 |
Loans and Allowance - Past Due
Loans and Allowance - Past Due Aging of Loan Portfolio by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 4,657,009 | $ 4,641,215 |
Non-Accrual | 36,719 | 31,389 |
Total Past Due & Non-Accrual | 52,898 | 52,607 |
Total | 4,709,907 | 4,693,822 |
Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,054,549 | 1,052,275 |
Non-Accrual | 3,694 | 4,634 |
Total Past Due & Non-Accrual | 6,010 | 4,800 |
Total | 1,060,559 | 1,057,075 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 90,452 | 96,884 |
Non-Accrual | 1,535 | 827 |
Total Past Due & Non-Accrual | 1,685 | 827 |
Total | 92,137 | 97,711 |
Real estate loans - Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 385,222 | 362,084 |
Non-Accrual | 731 | 736 |
Total Past Due & Non-Accrual | 6,399 | 4,620 |
Total | 391,621 | 366,704 |
Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,788,591 | 1,786,092 |
Non-Accrual | 16,440 | 11,277 |
Total Past Due & Non-Accrual | 17,804 | 16,829 |
Total | 1,806,395 | 1,802,921 |
Real estate loans - Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 753,121 | 765,634 |
Non-Accrual | 11,674 | 11,818 |
Total Past Due & Non-Accrual | 16,471 | 20,471 |
Total | 769,592 | 786,105 |
Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 349,986 | 344,344 |
Non-Accrual | 2,449 | 1,952 |
Total Past Due & Non-Accrual | 3,960 | 4,269 |
Total | 353,946 | 348,613 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 73,053 | 73,990 |
Non-Accrual | 196 | 145 |
Total Past Due & Non-Accrual | 569 | 727 |
Total | 73,622 | 74,717 |
Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 461 | $ 588 |
Total Past Due & Non-Accrual | ||
Total | $ 461 | $ 588 |
Other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 161,574 | 159,324 |
Total Past Due & Non-Accrual | 64 | |
Total | $ 161,574 | 159,388 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 14,221 | 17,570 |
30-59 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 2,017 | $ 166 |
30-59 Days Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 150 | |
30-59 Days Past Due | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 5,668 | $ 3,884 |
30-59 Days Past Due | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,355 | 5,552 |
30-59 Days Past Due | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 3,565 | 6,090 |
30-59 Days Past Due | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 1,298 | 1,433 |
30-59 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 168 | 445 |
30-59 Days Past Due | Lease financing receivables, net of unearned income | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
30-59 Days Past Due | Other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 995 | $ 2,741 |
60-89 Days Past Due | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 239 | |
60-89 Days Past Due | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
60-89 Days Past Due | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
60-89 Days Past Due | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 9 | |
60-89 Days Past Due | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 539 | $ 2,061 |
60-89 Days Past Due | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 107 | 560 |
60-89 Days Past Due | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 101 | 56 |
60-89 Days Past Due | Other commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 64 | |
Loans 90 Days And Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 963 | $ 907 |
Loans 90 Days And Accruing | Commercial and industrial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 60 | |
Loans 90 Days And Accruing | Agricultural production financing and other loans to farmers | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Loans 90 Days And Accruing | Real estate loans - Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Loans 90 Days And Accruing | Real estate loans - Commercial and farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | ||
Loans 90 Days And Accruing | Real estate loans - Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 693 | $ 502 |
Loans 90 Days And Accruing | Real estate loans - Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | 106 | 324 |
Loans 90 Days And Accruing | Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due | $ 104 | $ 81 |
Loans and Allowance - Summary58
Loans and Allowance - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)loan | Mar. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 1,203 | $ 2,465 |
Post-Modification Recorded Balance | $ 1,089 | $ 3,208 |
Number of Loans | loan | 10 | 7 |
Commercial and industrial loans | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 260 | $ 2,362 |
Post-Modification Recorded Balance | $ 260 | $ 1,361 |
Number of Loans | loan | 3 | 4 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 465 | |
Post-Modification Recorded Balance | $ 331 | |
Number of Loans | loan | 2 | |
Real estate loans - Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 79 | |
Post-Modification Recorded Balance | $ 80 | |
Number of Loans | loan | 1 | |
Real estate loans - Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 352 | |
Post-Modification Recorded Balance | $ 352 | $ 1,743 |
Number of Loans | loan | 1 | 1 |
Real estate loans - Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 113 | $ 24 |
Post-Modification Recorded Balance | $ 133 | $ 24 |
Number of Loans | loan | 3 | 1 |
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Balance | $ 13 | |
Post-Modification Recorded Balance | $ 13 | |
Number of Loans | loan | 1 |
Loans and Allowance - Summary59
Loans and Allowance - Summary of Troubled Debt Restructurings by Modification Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 1,078 | $ 2,908 |
Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 1,803 | |
Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 467 | 26 |
Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 611 | 1,079 |
Commercial and industrial loans | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 260 | 1,332 |
Commercial and industrial loans | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 253 | |
Commercial and industrial loans | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Commercial and industrial loans | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 260 | 1,079 |
Agricultural production financing and other loans to farmers | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 331 | |
Agricultural production financing and other loans to farmers | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 331 | |
Real estate loans - Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | 2 | |
Real estate loans - Construction | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 2 | |
Real estate loans - Construction | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Real estate loans - Construction | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Real estate loans - Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 351 | $ 1,548 |
Real estate loans - Commercial and farmland | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 1,548 | |
Real estate loans - Commercial and farmland | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Real estate loans - Commercial and farmland | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 351 | |
Real estate loans - Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 123 | $ 26 |
Real estate loans - Residential | Term Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Real estate loans - Residential | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 123 | $ 26 |
Real estate loans - Residential | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | ||
Individuals' loans for household and other personal expenditures | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 13 | |
Individuals' loans for household and other personal expenditures | Rate Modification | ||
Financing Receivable, Modifications [Line Items] | ||
Modification | $ 13 | |
Individuals' loans for household and other personal expenditures | Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Modification |
Loans and Allowance - Subsequen
Loans and Allowance - Subsequent Default (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)loan | Mar. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 4 | 1 |
Recorded Balance | $ | $ 977 | $ 6 |
Commercial and industrial loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 3 | |
Recorded Balance | $ | $ 260 | |
Real estate loans - Commercial and farmland | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Recorded Balance | $ | $ 717 | |
Home Equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Recorded Balance | $ | $ 6 |
Accounting for Certain Loans 61
Accounting for Certain Loans Acquired in a Purchase - Carrying Amount of Loans Included in Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | $ 914,347 | $ 961,382 |
Carrying Amount | 870,507 | 917,589 |
Allowance | 155 | 153 |
Carrying Amount Net of Allowance | 870,352 | 917,436 |
Loans acquired and accounted for under ASC 310-30, outstanding balance | 84,500 | 95,800 |
Loans acquired and accounted for under ASC 310-30, carrying amount | 60,100 | 69,600 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 85,513 | 85,441 |
Agricultural production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 3,735 | 3,049 |
Real estate loans - Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 47,885 | 40,991 |
Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 392,476 | 425,014 |
Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 307,326 | 325,141 |
Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 73,364 | 77,053 |
Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 2,138 | 2,693 |
Other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,910 | 2,000 |
Ameriana | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 317,927 | 330,918 |
Carrying Amount | 304,615 | 319,664 |
Carrying Amount Net of Allowance | 304,615 | 319,664 |
Ameriana | Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 23,363 | 21,888 |
Ameriana | Real estate loans - Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 30,414 | 23,365 |
Ameriana | Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 131,371 | 144,514 |
Ameriana | Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 116,116 | 123,231 |
Ameriana | Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 13,390 | 14,261 |
Ameriana | Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,433 | 1,731 |
Ameriana | Other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,840 | 1,928 |
C Financial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 94,308 | 99,166 |
Carrying Amount | 92,097 | 96,829 |
Carrying Amount Net of Allowance | 92,097 | 96,829 |
C Financial | Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 99 | 104 |
C Financial | Real estate loans - Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 6,928 | 6,214 |
C Financial | Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 25,729 | 27,838 |
C Financial | Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 52,720 | 55,856 |
C Financial | Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 8,824 | 9,144 |
C Financial | Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 8 | 10 |
Community | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 93,530 | 99,541 |
Carrying Amount | 87,523 | 93,355 |
Allowance | 105 | 4 |
Carrying Amount Net of Allowance | 87,418 | 93,351 |
Community | Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 7,224 | 6,769 |
Community | Agricultural production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 2,472 | 1,761 |
Community | Real estate loans - Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 9,681 | 10,436 |
Community | Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 47,190 | 49,997 |
Community | Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 19,212 | 21,886 |
Community | Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 7,445 | 8,231 |
Community | Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 306 | 461 |
CFS | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 371,786 | 393,014 |
Carrying Amount | 353,882 | 373,649 |
Allowance | 50 | 149 |
Carrying Amount Net of Allowance | 353,832 | 373,500 |
CFS | Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 50,476 | 52,060 |
CFS | Real estate loans - Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 862 | 976 |
CFS | Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 175,692 | 189,372 |
CFS | Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 113,633 | 118,105 |
CFS | Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 30,705 | 31,986 |
CFS | Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 348 | 443 |
CFS | Other commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 70 | 72 |
SCB | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 36,796 | 38,743 |
Carrying Amount | 32,390 | 34,092 |
Carrying Amount Net of Allowance | 32,390 | 34,092 |
SCB | Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 4,351 | 4,620 |
SCB | Agricultural production financing and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 1,263 | 1,288 |
SCB | Real estate loans - Commercial and farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 12,494 | 13,293 |
SCB | Real estate loans - Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 5,645 | 6,063 |
SCB | Real estate loans - Home Equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | 13,000 | 13,431 |
SCB | Individuals' loans for household and other personal expenditures | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Acquired | $ 43 | $ 48 |
Accounting for Certain Loans 62
Accounting for Certain Loans Acquired in a Purchase - Accretable Yield or Income Expected to be Collected (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 5,612 | $ 5,390 |
Accretion | (1,496) | (1,705) |
Reclassification from nonaccretable | 1,183 | 1,132 |
Ending balance | 5,299 | 4,817 |
Ameriana | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | 2,160 | |
Accretion | (40) | |
Ending balance | 2,120 | |
C Financial | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | 114 | |
Accretion | (15) | |
Reclassification from nonaccretable | 1 | |
Ending balance | 100 | |
Community | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | 1,508 | 2,122 |
Accretion | (63) | (179) |
Reclassification from nonaccretable | 11 | 47 |
Ending balance | 1,456 | 1,990 |
CFS | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | 1,188 | 2,400 |
Accretion | (1,290) | (1,341) |
Reclassification from nonaccretable | 1,135 | 950 |
Ending balance | 1,033 | 2,009 |
SCB | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | 642 | 868 |
Accretion | (88) | (185) |
Reclassification from nonaccretable | 36 | 135 |
Ending balance | $ 590 | $ 818 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 243,129 | $ 202,724 |
Measurement period adjustment | 871 | |
Goodwill, ending balance | $ 244,000 | $ 202,724 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill [Line Items] | ||
Goodwill, measurement period adjustment | $ 871 | |
Ameriana | ||
Goodwill [Line Items] | ||
Goodwill, measurement period adjustment | $ 871 |
Core Deposit and Other Intang65
Core Deposit and Other Intangibles - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross carrying amount | $ 16,635 | $ 16,031 |
Accumulated amortization | (978) | $ (721) |
Measurement period adjustment | 2,142 | |
Core deposit and other intangibles | $ 17,799 | $ 15,310 |
Core Deposit and Other Intang66
Core Deposit and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Measurement period adjustment | $ 2,142 | |
Ameriana | ||
Finite-Lived Intangible Assets [Line Items] | ||
Measurement period adjustment | $ 2,142 |
Core Deposit and Other Intang67
Core Deposit and Other Intangibles - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Amortization Expense | ||
2,016 | $ 2,933 | |
2,017 | 3,614 | |
2,018 | 2,299 | |
2,019 | 1,914 | |
2,020 | 1,733 | |
After 2,020 | 5,306 | |
Core deposit and other intangibles | $ 17,799 | $ 15,310 |
Derivative Financial Instrume68
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)interest_rate_swapinterest_rate_capinstrument | Mar. 31, 2015USD ($)interest_rate_swapinterest_rate_cap | |
Derivative [Line Items] | ||
Estimated amount to be transferred from accumulated other comprehensive income to earnings | $ 1,228 | |
Termination value of derivatives in a net liability position | 13,966 | |
Derivative collateral posted | 15,681 | |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 204,667 | |
Federal Home Loan Bank Advances | ||
Derivative [Line Items] | ||
Number of debt instruments held | instrument | 3 | |
Cash Flow Hedging | Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_swap | 5 | 5 |
Notional amount of interest rate derivatives | $ 56,000 | $ 56,000 |
Cash Flow Hedging | Interest Rate Swap | Trust Preferred Debt | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | 26,000 | |
Cash Flow Hedging | Interest Rate Swap | Federal Home Loan Bank Advances | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 30,000 | |
Cash Flow Hedging | Interest Rate Cap | ||
Derivative [Line Items] | ||
Number of interest rate derivatives held | interest_rate_cap | 1 | 1 |
Notional amount of interest rate derivatives | $ 13,000 | $ 13,000 |
Cash Flow Hedging | Interest Rate Cap | Trust Preferred Debt | ||
Derivative [Line Items] | ||
Notional amount of interest rate derivatives | $ 13,000 |
Derivative Financial Instrume69
Derivative Financial Instruments - Fair Value of Derivative Financial Instruments and Their Classification on Balance Sheet (Details) - Interest rate contracts - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 12 | $ 36 |
Derivatives designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 4,565 | 2,921 |
Derivatives not designated as hedging instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 8,635 | 4,938 |
Derivatives not designated as hedging instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 9,091 | $ 5,149 |
Derivative Financial Instrume70
Derivative Financial Instruments - Effect of Derivative Financial Instruments on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest Expense | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from Other Comprehensive Income into Income (Effective Portion) | $ (324) | $ (354) |
Interest rate contracts | Not Designated as Hedging Instrument | Other income | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Income on Derivative | (245) | (100) |
Interest rate contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivative (Effective Portion) | $ (1,954) | $ (1,276) |
Disclosures About Fair Value 71
Disclosures About Fair Value of Assets and Liabilities - Fair Value Measurements of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | $ 636,785 | $ 658,400 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 631,281 | 652,468 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 5,504 | 5,932 |
Fair Value, Measurements, Recurring | Interest rate swap liability | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 13,656 | 8,070 |
Fair Value, Measurements, Recurring | Interest rate swap liability | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate swap liability | 13,656 | 8,070 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored agency securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 103 | 104 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored agency securities | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 103 | 104 |
Fair Value, Measurements, Recurring | State and municipal | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 324,651 | 300,014 |
Fair Value, Measurements, Recurring | State and municipal | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 5,469 | 5,897 |
Fair Value, Measurements, Recurring | State and municipal | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 330,120 | 305,911 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 302,586 | 346,266 |
Fair Value, Measurements, Recurring | U.S. Government-sponsored mortgage-backed securities | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 302,586 | 346,266 |
Fair Value, Measurements, Recurring | Certificates of deposit | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 2,176 | |
Fair Value, Measurements, Recurring | Certificates of deposit | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 2,176 | |
Fair Value, Measurements, Recurring | Corporate obligations | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 31 | 31 |
Fair Value, Measurements, Recurring | Corporate obligations | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 31 | 31 |
Fair Value, Measurements, Recurring | Equity securities | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 3,941 | 3,908 |
Fair Value, Measurements, Recurring | Equity securities | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 4 | 4 |
Fair Value, Measurements, Recurring | Equity securities | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale securities | 3,945 | 3,912 |
Fair Value, Measurements, Recurring | Interest rate swap asset | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 8,635 | 4,938 |
Fair Value, Measurements, Recurring | Interest rate swap asset | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 8,635 | 4,938 |
Fair Value, Measurements, Recurring | Interest rate cap | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | 12 | 36 |
Fair Value, Measurements, Recurring | Interest rate cap | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate derivatives | $ 12 | $ 36 |
Disclosures About Fair Value 72
Disclosures About Fair Value of Assets and Liabilities - Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements using Significant Unobservable Level 3 Inputs (Details) - Fair Value, Measurements, Recurring - Available for Sale Securities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of the period | $ 5,932 | $ 6,646 |
Total realized and unrealized gains and losses: | ||
Included in other comprehensive income | 38 | 91 |
Principal payments | (466) | (539) |
Ending balance | $ 5,504 | $ 6,198 |
Disclosures About Fair Value 73
Disclosures About Fair Value of Assets and Liabilities - Transfers Between Levels (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Transfers in or out of Level 3 | $ 0 | $ 0 |
Disclosures About Fair Value 74
Disclosures About Fair Value of Assets and Liabilities - Valuation Methodologies Used for Instruments Measured at Fair Value on Non-Recurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Impaired loans (collateral dependent) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 9,530 | $ 7,066 |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,530 | 7,066 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,287 | 5,529 |
Other real estate owned | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,287 | $ 5,529 |
Disclosures About Fair Value 75
Disclosures About Fair Value of Assets and Liabilities - Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other Than Goodwill (Details) - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
State and municipal | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 5,469 | $ 5,897 |
State and municipal | Discounted cash flow | 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 | 0.69% | 0.80% |
State and municipal | Discounted cash flow | 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% |
Corporate obligations and Equity securities | Discounted cash flow | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 35 | $ 35 |
Risk free rate | 3 month LIBOR | 3 month LIBOR |
Discount to reflect current market conditions | 2.00% | 2.00% |
Impaired loans (collateral dependent) | Collateral based measurements | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 9,530 | $ 7,066 |
Impaired loans (collateral dependent) | Collateral based measurements | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 0.00% | 0.00% |
Impaired loans (collateral dependent) | Collateral based measurements | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 50.00% | 50.00% |
Impaired loans (collateral dependent) | Collateral based measurements | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions and ultimate collectability | 1.00% | 2.00% |
Other real estate owned | Appraisals | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 1,287 | $ 5,529 |
Other real estate owned | Appraisals | Minimum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions | 0.00% | 0.00% |
Other real estate owned | Appraisals | Maximum | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions | 20.00% | 20.00% |
Other real estate owned | Appraisals | Weighted Average | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Discount to reflect current market conditions | 2.00% | 2.00% |
Disclosures About Fair Value 76
Disclosures About Fair Value of Assets and Liabilities - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Investment securities available for sale | $ 636,785 | $ 658,400 |
Investment securities held to maturity | 655,445 | 632,380 |
Loans held for sale | 3,628 | 9,894 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 85,738 | 102,170 |
Interest-bearing time deposits | 77,453 | 32,315 |
Liabilities: | ||
Deposits | 4,139,907 | 4,095,004 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Investment securities available for sale | 631,281 | 652,468 |
Investment securities held to maturity | 626,164 | 598,082 |
Loans held for sale | 3,628 | 9,894 |
Federal Reserve Bank and Federal Home Loan Bank stock | 37,553 | 37,633 |
Interest rate swap and cap asset | 8,647 | 4,974 |
Interest receivable | 22,836 | 24,415 |
Liabilities: | ||
Deposits | 1,158,592 | 1,177,142 |
Borrowings: | ||
Federal funds purchased | 602 | 49,721 |
Securities sold under repurchase agreements | 150,118 | 155,325 |
Federal Home Loan Bank advances | 265,170 | 236,375 |
Subordinated debentures and term loans | 98,807 | 103,643 |
Interest rate swap liability | 13,656 | 8,070 |
Interest payable | 3,910 | 3,092 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Investment securities available for sale | 5,504 | 5,932 |
Investment securities held to maturity | 29,281 | 34,298 |
Loans | 4,600,417 | 4,539,940 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | 85,738 | 102,170 |
Interest-bearing time deposits | 77,453 | 32,315 |
Investment securities available for sale | 636,785 | 658,400 |
Investment securities held to maturity | 633,992 | 618,599 |
Loans held for sale | 3,628 | 9,894 |
Loans | 4,647,821 | 4,631,369 |
Federal Reserve Bank and Federal Home Loan Bank stock | 37,553 | 37,633 |
Interest rate swap and cap asset | 8,647 | 4,974 |
Interest receivable | 22,836 | 24,415 |
Liabilities: | ||
Deposits | 5,311,070 | 5,289,647 |
Borrowings: | ||
Federal funds purchased | 602 | 49,721 |
Securities sold under repurchase agreements | 150,134 | 155,325 |
Federal Home Loan Bank advances | 263,588 | 235,652 |
Subordinated debentures and term loans | 127,523 | 127,846 |
Interest rate swap liability | 13,656 | 8,070 |
Interest payable | $ 3,910 | $ 3,092 |
Transfers Accounted for as Se77
Transfers Accounted for as Secured Borrowings (Details) - U.S. Government-sponsored mortgage-backed securities $ in Thousands | Mar. 31, 2016USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 150,134 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 127,329 |
Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Collateral pledged for all repurchase agreements accounted for as secured borrowings | 7,559 |
30-90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Collateral pledged for all repurchase agreements accounted for as secured borrowings | $ 15,246 |
Greater Than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Collateral pledged for all repurchase agreements accounted for as secured borrowings |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income (Loss) - Changes in Balances of Each Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | $ 850,509 | |
Amounts reclassified from accumulated other comprehensive income | (437) | $ (436) |
Period change | 3,428 | (285) |
Ending balance | 867,263 | |
Total | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (1,362) | (1,630) |
Other comprehensive income before reclassifications | 3,865 | 151 |
Amounts reclassified from accumulated other comprehensive income | (437) | (436) |
Period change | 3,428 | (285) |
Ending balance | 2,066 | (1,915) |
Unrealized Gains (Losses) on Securities Available for Sale | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | 12,325 | 14,098 |
Other comprehensive income before reclassifications | 5,135 | 980 |
Amounts reclassified from accumulated other comprehensive income | (648) | (666) |
Period change | 4,487 | 314 |
Ending balance | 16,812 | 14,412 |
Unrealized Gains (Losses) on Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | (2,347) | (2,182) |
Other comprehensive income before reclassifications | (1,270) | (829) |
Amounts reclassified from accumulated other comprehensive income | 211 | 230 |
Period change | (1,059) | (599) |
Ending balance | (3,406) | (2,781) |
Unrealized Gains (Losses) on Defined Benefit Plans | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balance | $ (11,340) | $ (13,546) |
Other comprehensive income before reclassifications | ||
Amounts reclassified from accumulated other comprehensive income | ||
Period change | $ 0 | $ 0 |
Ending balance | $ (11,340) | $ (13,546) |
Accumulated Other Comprehensi79
Accumulated Other Comprehensive Income (Loss) - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||
Other income - net realized gains on sales of available for sale securities | $ 997 | $ 1,025 |
Interest expense - subordinated debentures and term loans | (1,785) | (1,660) |
Income tax expense | (5,574) | (5,834) |
Net income | 17,693 | 16,172 |
Total reclassifications for the period, net of tax | 437 | 436 |
Unrealized gains (losses) on available for sale securities | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | 648 | 666 |
Unrealized gains (losses) on cash flow hedges | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications for the period, net of tax | (211) | (230) |
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 | 997 | 1,025 |
Income tax expense | (349) | (359) |
Net income | 648 | 666 |
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] | ||
Income tax expense | 113 | 124 |
Net income | (211) | (230) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) for the Period | Unrealized gains (losses) on cash flow hedges | Interest rate contracts | ||
Reclassification Adjustments out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest expense - subordinated debentures and term loans | $ (324) | $ (354) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of average closing price to be paid by employees | 85.00% | ||
Maximum common stock purchases through advance payroll deductions in a calendar year | $ 25,000 | ||
Share-based compensation | $ 593,000 | $ 517,000 | |
Options granted (in shares) | 0 | 0 | |
Forfeiture rate | 3.80% | ||
Aggregate intrinsic value of stock options exercised | $ 77,000 | $ 188,000 | |
Cash receipts of stock options exercised | $ 73,000 | $ 355,000 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option term | 10 years | ||
Stock options vesting percentage | 100.00% | ||
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 | ||
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested period | 3 years | ||
Outstanding DSUs (in shares) | 362,724 | 354,504 | |
Unrecognized compensation expense | $ 5,277,000 | ||
Unrecognized compensation expense expected recognition period | 1 year 11 months 5 days | ||
DSUs | Non-employee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding DSUs (in shares) | 0 | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 0 | ||
Grant date fair value of ESPP options | $ 15,000 |
Share-Based Compensation - Comp
Share-Based Compensation - Components of Share-Based Compensation Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | $ 593 | $ 517 |
Income tax expense (benefit) | (202) | (169) |
Total share-based compensation expense, net of income taxes | 391 | 348 |
Stock and ESPP Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | $ 15 | 27 |
Income tax expense (benefit) | (1) | |
Total share-based compensation expense, net of income taxes | $ 15 | 26 |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Pre-tax compensation expense | 578 | 490 |
Income tax expense (benefit) | (202) | (168) |
Total share-based compensation expense, net of income taxes | $ 376 | $ 322 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity under Stock Option Plans (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Shares | ||
Beginning balance (in shares) | 442,012 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (6,700) | |
Cancelled (in shares) | (49,500) | |
Ending balance (in shares) | 385,812 | |
Vested and Expected to Vest (in shares) | 385,812 | |
Exercisable (in shares) | 385,812 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 19.99 | |
Granted (in dollars per share) | ||
Exercised (in dollars per share) | $ 10.80 | |
Cancelled (in dollars per share) | 25.14 | |
Ending balance (in dollars per share) | 19.49 | |
Vested and Expected to Vest (in dollars per share) | 19.49 | |
Exercisable (in dollars per share) | $ 19.49 | |
Weighted Average Remaining Contractual Term (in Years) | ||
Outstanding | 3 years 2 months 22 days | |
Vested and Expected to Vest | 3 years 2 months 22 days | |
Exercisable | 3 years 2 months 22 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 1,992,120 | |
Vested and Expected to Vest | 1,992,120 | |
Exercisable | $ 1,992,120 |
Share-Based Compensation - Unve
Share-Based Compensation - Unvested RSAs Outstanding (Details) - RSAs | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Shares | |
Unvested RSAs, Beginning Balance (in shares) | shares | 354,504 |
Granted (in shares) | shares | 110,623 |
Vested (in shares) | shares | (101,984) |
Forfeited (in shares) | shares | (419) |
Unvested RSAs, Ending Balance (in shares) | shares | 362,724 |
Weighted-Average Grant Date Fair Value | |
Unvested RSAs, Beginning Balance (in dollars per share) | $ / shares | $ 19.65 |
Granted (in dollars per share) | $ / shares | 23.41 |
Vested (in dollars per share) | $ / shares | 15.32 |
Forfeited (in dollars per share) | $ / shares | 21.60 |
Unvested RSAs, Ending Balance (in dollars per share) | $ / shares | $ 22.31 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Federal Statutory to Actual Tax Expense: | ||
Federal statutory income tax rate | 35.00% | 35.00% |
Federal statutory income tax at 35% | $ 8,143 | $ 7,702 |
Tax-exempt interest income | (2,026) | (1,429) |
Stock compensation | 5 | 8 |
Earnings on life insurance | (517) | (262) |
Tax credits | (129) | (144) |
Other | 98 | (41) |
Actual Tax Expense | $ 5,574 | $ 5,834 |
Effective Tax Rate | 24.00% | 26.50% |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Income | ||
Net income available to common stockholders | $ 17,693 | $ 16,172 |
Diluted net income per share | $ 17,693 | $ 16,172 |
Weighted-Average Shares | ||
Net income available to common stockholders (in shares) | 40,690,573 | 37,709,883 |
Effect of dilutive stock options and warrants (in shares) | 226,399 | 290,191 |
Diluted net income per share (in shares) | 40,916,972 | 38,000,074 |
Per Share Amount | ||
Net income available to common stockholders (in dollars per share) | $ 0.43 | $ 0.43 |
Diluted net income per share (in dollars per share) | $ 0.43 | $ 0.43 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options not included in the earnings per share calculation (in shares) | 153,721 | 367,576 |