Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 05, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | FIRST FINANCIAL CORP /IN/ | ||
Entity Central Index Key | 714562 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding (shares) | 12,942,175 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $392,711,526 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $78,102 | $71,033 |
Federal funds sold | 8,000 | 4,276 |
Securities available-for-sale | 897,053 | 914,560 |
Loans, net of allowance of $18,839 in 2014 and $20,068 in 2013 | 1,762,589 | 1,771,360 |
Restricted Stock | 16,404 | 21,057 |
Accrued interest receivable | 11,593 | 11,554 |
Premises and equipment, net | 51,802 | 51,449 |
Bank-owned life insurance | 80,730 | 79,035 |
Goodwill | 39,489 | 39,489 |
Other intangible assets | 3,901 | 4,935 |
Other real estate owned | 3,965 | 5,291 |
FDIC Indemnification Asset | -74 | 1,055 |
Other assets | 48,931 | 43,624 |
TOTAL ASSETS | 3,002,485 | 3,018,718 |
Deposits: | ||
Non-interest-bearing | 556,389 | 506,815 |
Interest-bearing: | ||
Certificates of deposit that meet or exceed the FDIC insurance limit | 53,733 | 63,263 |
Other interest-bearing deposits | 1,847,075 | 1,888,713 |
Total Deposits | 2,457,197 | 2,458,791 |
Short-term borrowings | 48,015 | 59,592 |
Other borrowings | 12,886 | 58,288 |
Other liabilities | 90,173 | 55,852 |
TOTAL LIABILITIES | 2,608,271 | 2,632,523 |
Shareholders’ equity | ||
Common stock, $1.25 stated value per share, Authorized shares- 40,000,000, Issued shares - 14,538,132 in 2014 and 14,516,113 in 2013, Outstanding shares - 12,942,175 in 2014 and 13,343,029 in 2013 | 1,815 | 1,811 |
Additional paid-in capital | 72,405 | 71,074 |
Retained earnings | 377,970 | 357,083 |
Accumulated other comprehensive income (loss) | -14,529 | -13,969 |
Less: Treasury shares at cost-1,595,957 in 2014 and 1,173,084 in 2013 | -43,447 | -29,804 |
TOTAL SHAREHOLDERS’ EQUITY | 394,214 | 386,195 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $3,002,485 | $3,018,718 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for loan losses (in dollars) | $18,839 | $20,068 |
Common stock, stated value per share (usd per share) | $0.13 | $0.13 |
Common stock, Authorized shares (shares) | 40,000,000 | 40,000,000 |
Common stock, Issued shares (shares) | 14,538,132 | 14,516,113 |
Common stock, Outstanding shares (shares) | 12,942,175 | 13,343,029 |
Treasury stock (shares) | 1,595,957 | 1,173,084 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST AND DIVIDEND INCOME: | |||
Loans, including related fees | $87,530 | $91,242 | $99,196 |
Securities: | |||
Taxable | 17,015 | 16,157 | 13,542 |
Tax-exempt | 7,084 | 7,046 | 7,246 |
Other | 1,729 | 1,776 | 2,321 |
TOTAL INTEREST AND DIVIDEND INCOME | 113,358 | 116,221 | 122,305 |
INTEREST EXPENSE: | |||
Deposits | 4,624 | 5,886 | 8,520 |
Short-term borrowings | 99 | 78 | 140 |
Other borrowings | 803 | 2,997 | 4,733 |
TOTAL INTEREST EXPENSE | 5,526 | 8,961 | 13,393 |
NET INTEREST INCOME | 107,832 | 107,260 | 108,912 |
Net Provision for loan losses | 5,072 | 7,860 | 8,773 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 102,760 | 99,400 | 100,139 |
NON-INTEREST INCOME: | |||
Trust and financial services | 5,860 | ||
Service charges and fees on deposit accounts | 9,742 | ||
Other service charges and fees | 11,697 | 11,081 | 9,710 |
Securities gain (loss), net | -3 | 423 | 886 |
Other-than-temporary loss | |||
Total impairment loss | 0 | 0 | -11 |
Loss recognized in other comprehensive income | 0 | 0 | 0 |
Net impairment loss recognized in earnings | 0 | 0 | -11 |
Insurance commissions | 7,646 | 7,750 | 7,422 |
Gain on sale of mortgage loans | 1,849 | 3,052 | 4,590 |
Other | 2,964 | 1,952 | 1,404 |
TOTAL NON-INTEREST INCOME | 40,785 | 40,455 | 39,547 |
NON-INTEREST EXPENSES: | |||
Salaries and employee benefits | 55,936 | 55,097 | 56,211 |
Occupancy expense | 7,218 | 6,102 | 5,746 |
Equipment expense | 7,269 | 6,348 | 5,489 |
Federal Deposit Insurance | 1,931 | 2,052 | 1,949 |
Other | 23,230 | 24,955 | 23,661 |
TOTAL NON-INTEREST EXPENSE | 95,584 | 94,554 | 93,056 |
INCOME BEFORE INCOME TAXES | 47,961 | 45,301 | 46,630 |
Provision for income taxes | 14,189 | 13,767 | 13,818 |
NET INCOME | 33,772 | 31,534 | 32,812 |
OTHER COMPREHENSIVE INCOME | |||
Change in unrealized gains/losses on securities, net of reclassifications and taxes | 13,913 | -17,066 | 691 |
Change in funded status of post-retirement benefits, net of taxes | -14,473 | 10,569 | 2,331 |
COMPREHENSIVE INCOME | 33,212 | ||
EARNINGS PER SHARE: | |||
BASIC AND DILUTED (in dollars per share) | $2.55 | $2.37 | $2.48 |
Weighted average number of shares outstanding (in shares) | 13,226 | 13,310 | 13,240 |
Trust and Financial Services | 6,035 | 5,804 | |
Fees and Commissions Depositor Accounts Excluding Atm Fees | $10,772 | $10,162 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Capital | Retained earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $346,961 | $1,806 | $69,328 | $318,130 | ($10,494) | ($31,809) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 32,812 | 0 | 0 | 32,812 | 0 | 0 |
Other comprehensive income (loss) | 3,022 | 0 | 0 | 0 | 3,022 | 0 |
Contribution of shares to ESOP | 488 | 2 | 486 | 0 | 0 | 0 |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | 1,439 | 0 | 175 | 0 | 0 | 1,264 |
Cash Dividends | -12,600 | 0 | 0 | -12,600 | 0 | 0 |
Balance at Dec. 31, 2012 | 372,122 | 1,808 | 69,989 | 338,342 | -7,472 | -30,545 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 31,534 | 0 | 0 | 31,534 | 0 | 0 |
Other comprehensive income (loss) | -6,497 | 0 | 0 | 0 | -6,497 | 0 |
Contribution of shares to ESOP | 611 | 3 | 770 | 0 | 0 | -162 |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | 1,218 | 0 | 315 | 0 | 0 | 903 |
Cash Dividends | -12,793 | 0 | 0 | -12,793 | 0 | 0 |
Balance at Dec. 31, 2013 | 386,195 | 1,811 | 71,074 | 357,083 | -13,969 | -29,804 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,772 | 0 | 0 | 33,772 | 0 | 0 |
Other comprehensive income (loss) | -560 | 0 | 0 | 0 | -560 | 0 |
Treasury Stock, Value, Acquired, Cost Method | -14,633 | 0 | 0 | 0 | 0 | -14,633 |
Contribution of shares to ESOP | 1,072 | 4 | 1,068 | 0 | 0 | 0 |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | 1,253 | 0 | 263 | 0 | 0 | 990 |
Cash Dividends | -12,885 | 0 | 0 | -12,885 | 0 | 0 |
Balance at Dec. 31, 2014 | $394,214 | $1,815 | $72,405 | $377,970 | ($14,529) | ($43,447) |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Contribution to ESOP shares (shares) | 36,368 | 35,531 | 49,825 |
Cash Dividends (in dollars per share) | $0.98 | $0.96 | $0.95 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income | $33,772 | $31,534 | $32,812 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net (accretion) amortization on securities | 3,405 | 2,712 | 3,492 |
Provision for loan losses | 5,072 | 7,860 | 8,773 |
Securities impairment loss recognized in earnings | 0 | 0 | 11 |
Securities (gains) losses | 3 | -423 | -886 |
Depreciation and amortization | 5,977 | 5,482 | 5,105 |
Provision for deferred income taxes | 2,873 | -39 | -143 |
Net change in accrued interest receivable | -39 | 470 | 923 |
Contribution of shares to ESOP | 1,253 | 1,218 | 1,439 |
Stock compensation expense | 1,072 | 773 | 488 |
Gain on sale of mortgage loans | -1,849 | -3,052 | -4,590 |
Loss on sales of other real estate | -357 | 182 | 69 |
Origination of loans held for sale | -66,300 | -112,483 | -167,303 |
Proceeds from loans held for sale | 68,438 | 121,092 | 167,227 |
Other, net | 4,524 | 7,371 | 7,160 |
NET CASH FROM OPERATING ACTIVITIES | 57,844 | 62,697 | 54,577 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Sales of securities available-for-sale | 356 | 5,110 | 25,812 |
Calls, maturities and principal reductions on securities available-for-sale | 136,141 | 158,317 | 142,475 |
Purchases of securities available-for-sale | -99,954 | -417,997 | -194,475 |
Loans made to customers, net of payments | 325 | 41,643 | 29,619 |
Net change in federal funds sold | -3,724 | 16,524 | -9,075 |
Purchase of bank owned life insurance | 0 | 0 | -1,551 |
Redemption of bank owned life insurance | 0 | 0 | 9,180 |
Redemption of restricted stock | 4,670 | 250 | 1,185 |
Purchase of restricted stock | -17 | -15 | -186 |
Purchase of customer list | 0 | 0 | -114 |
Cash received (disbursed) from acquisitions | 0 | 177,610 | 0 |
Sale of other real estate | 3,034 | 4,714 | 4,285 |
Additions to premises and equipment | -5,296 | -2,522 | -10,945 |
NET CASH FROM INVESTING ACTIVITIES | 35,535 | -16,366 | -3,790 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net change in deposits | -2,151 | -7,544 | 149 |
Net change in short-term borrowings | -11,577 | 19,041 | -59,471 |
Dividends paid | -12,949 | -12,766 | -12,425 |
Purchases of treasury stock | -14,633 | -162 | 0 |
Proceeds from other borrowings | 572,000 | 135,000 | 0 |
Repayments on other borrowings | -617,000 | -196,097 | -26,090 |
NET CASH FROM FINANCING ACTIVITIES | -86,310 | -62,528 | -97,837 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 7,069 | -16,197 | -47,050 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 71,033 | 87,230 | 134,280 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 78,102 | 71,033 | 87,230 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW AND NONCASH INFORMATION: | |||
Interest | 5,527 | 9,375 | 13,837 |
Income Taxes | $9,354 | $13,822 | $12,638 |
BUSINESS_AND_SIGNIFICANT_ACCOU
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: |
BUSINESS | |
Organization: The consolidated financial statements of First Financial Corporation and its subsidiaries (the Corporation) include the parent company and its wholly-owned subsidiaries, First Financial Bank, N.A. headquartered in Vigo County, Indiana, The Morris Plan Company of Terre Haute (Morris Plan), Forrest Sherer Inc., a full-line insurance agency headquartered in Terre Haute, Indiana, and FFB Risk Management Co., Inc., a captive insurance subsidiary headquartered in Las Vegas, Nevada. Inter-company transactions and balances have been eliminated. | |
First Financial Bank also has two investment subsidiaries, Portfolio Management Specialists A (Specialists A) and Portfolio Management Specialists B (Specialists B), which were established to hold and manage certain assets as part of a strategy to better manage various income streams and provide opportunities for capital creation as needed. Specialists A and Specialists B subsequently entered into a limited partnership agreement, Global Portfolio Limited Partners. Portfolio Management Specialists B also owns First Financial Real Estate, LLC. At December 31, 2014, $690.1 million of securities and loans were owned by these subsidiaries. Specialists A, Specialists B, Global Portfolio Limited Partners and First Financial Real Estate LLC are included in the consolidated financial statements. | |
The Corporation, which is headquartered in Terre Haute, Indiana, offers a wide variety of financial services including commercial, mortgage and consumer lending, lease financing, trust account services and depositor services through its four subsidiaries. The Corporation's primary source of revenue is derived from loans to customers, primarily middle-income individuals, and investment activities. | |
The Corporation operates 71 branches in west-central Indiana and east-central Illinois. First Financial Bank is the largest bank in Vigo County. It operates 11 full-service banking branches within the county; one in Daviess County, Indiana.; four in Clay County, Indiana; one in Gibson County, Indiana.; one in Greene County, Indiana; three in Knox County, Indiana; five in Parke County, Indiana; one in Putnam County, Indiana; four in Sullivan County, Indiana; one in Vanderburgh County, Indiana,; four in Vermillion County, Indiana; five in Champaign County, Illinois; one in Clark County, Illinois; three in Coles County, Illinois; two in Crawford County, Illinois; two in Franklin County, Illinois; one in Jasper County, Illinois; two in Jefferson County, Illinois; one in Lawrence County, Illinois; two in Livingston County, Illinois; two in Marion County, Illinois; three in McLean County, Illinois; one in Montgomery County, Illinois; two in Richland County, Illinois; seven in Vermilion County, Illinois; and one in Wayne County, Illinois. It also has a main office in downtown Terre Haute and an operations center/office building in southern Terre Haute. | |
Regulatory Agencies: First Financial Corporation is a multi-bank holding company and as such is regulated by various banking agencies. The holding company is regulated by the Seventh District of the Federal Reserve System. The national bank subsidiary is regulated by the Office of the Comptroller of the Currency. The state bank subsidiary is jointly regulated by the state banking organization and the Federal Deposit Insurance Corporation. FFB Risk Management Company is regulated by the State of Nevada Division of Insurance. | |
SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. | |
Cash Flows: Cash and cash equivalents include cash and demand deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. Non-cash transactions include loans transferred to other real estate of $1.4 million, $2.5 million and $7.1 million for the years ended December 31, 2014, 2013 and 2012 respectively. | |
Securities: The Corporation classifies all securities as "available for sale." Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value with unrealized holdings gains and losses, net of taxes, reported in other comprehensive income within shareholders' equity. | |
Interest income includes amortization of purchase premium or discount. Premiums and discounts are amortized on the level yield method without anticipating prepayments. Mortgage-backed securities are amortized over the expected life. Realized gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. | |
Loans: Loans that management has the intent and ability to hold for the foreseeable future until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and allowance for loan losses. Loans held for sale are reported at the lower of cost or market, on an aggregate basis. Interest income is accrued on the unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term without anticipating prepayments. The recorded investment in loans includes accrued interest receivable and net deferred loan fees and costs. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired or payments are significantly past due. Past-due status is based on the contractual terms of the loan. | |
All interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. In all cases, loans are placed on non-accrual or charged-off if collection of principal or interest is considered doubtful. The above policies are consistent for all segments of loans. | |
Certain Purchased Loans: The Corporation purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of amount paid are recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). | |
Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a provision for loan loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | |
Concentration of Credit Risk: Most of the Corporation's business activity is with customers located within west central Indiana and east central Illinois. Therefore, the Corporation's exposure to credit risk is significantly affected by changes in the economy of this area. A major economic downturn in this area would have a negative effect on the Corporation's loan portfolio. | |
The risk characteristics of each loan portfolio segment are as follows: | |
Commercial | |
Commercial loans are predominately loans to expand a business or finance asset purchases. The underlying risk in the Commercial loan segment is primarily a function of the reliability and sustainability of the cash flows of the borrower and secondarily on the underlying collateral securing the transaction. From time to time, the cash flows of borrowers may be less than historical or as planned. In addition, the underlying collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets financed or other business assets and most commercial loans are further supported by a personal guarantee. However, in some instances, short term loans are made on an unsecured basis. Agriculture production loans are typically secured by growing crops and generally secured by other assets such as farm equipment. Production loans are subject to weather and market pricing risks. The Corporation has established underwriting standards and guidelines for all commercial loan types. | |
The Corporation strives to maintain a geographically diverse commercial real estate portfolio. Commercial real estate loans are primarily underwritten based upon the cash flows of the underlying real estate or from the cash flows of the business conducted at the real estate. Generally, these types of loans will be fully guaranteed by the principal owners of the real estate and loan amounts must be supported by adequate collateral value. Commercial real estate loans may be adversely affected by factors in the local market, the regional economy, or industry specific factors. In addition, Commercial Construction loans are a specific type of commercial real estate loan which inherently carry more risk than loans for completed projects. Since these types of loans are underwritten utilizing estimated costs, feasibility studies, and estimated absorption rates, the underlying value of the project may change based upon the inaccuracy of these projections. Commercial construction loans are closely monitored, subject to industry standards, and disbursements are controlled during the construction process. | |
Residential | |
Retail real estate mortgages that are secured by 1-4 family residences are generally owner occupied and include residential real estate and residential real estate construction loans. The Corporation typically establishes a maximum loan-to-value ratio and generally requires private mortgage insurance if the ratio is exceeded. The Corporation sells substantially all of its long-term fixed mortgages to secondary market purchasers. Mortgages sold to secondary market purchasers are underwritten to specific guidelines. The Corporation originates some mortgages that are maintained in the bank’s loan portfolio. Portfolio loans are generally adjustable rate mortgages and are underwritten to conform to Qualified Mortgage standards. Several factors are considered in underwriting all Mortgages including the value of the underlying real estate, debt-to-income ratio and credit history of the borrower. Repayment is primarily dependent upon the personal income of the borrower and can be impacted by changes in borrower’s circumstances such as changes in employment status and changes in real estate property values. Risk is mitigated by the sale of substantially all long-term fixed rate mortgages, the underwriting of portfolio loans to Qualified Mortgage standards and the fact that mortgages are generally smaller individual amounts spread over a large number of borrowers. | |
Consumer | |
The consumer portfolio primarily consists of home equity loans and lines (typically secured by a subordinate lien on a 1-4 family residence), secured loans (typically secured by automobiles, boats, recreational vehicles, or motorcycles), cash/CD secured, and unsecured loans. Pricing, loan terms, and loan to value guidelines vary by product line. The underlying value of collateral dependent loans may vary based on a number of economic conditions, including fluctuations in home prices and unemployment levels. Underwriting of consumer loans is based on the individual credit profile and analysis of the debt repayment capacity for each borrower. Payments for consumer loans is typically set-up on equal monthly installments, however, future repayment may be impacted by a change in economic conditions or a change in the personal income levels of individual customers. Overall risks within the consumer portfolio are mitigated by the mix of various loan products, lending in various markets and the overall make-up of the portfolio (small loan sizes and a large number of individual borrowers). | |
Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management's judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. | |
A loan is impaired when full payment under the loan terms is not expected. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Impairment is evaluated in total for smaller-balance loans of similar nature such as residential mortgages and consumer loans, and on an individual basis for other loans. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows, using the loan's existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. | |
The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. The historical loss experience is based on the actual loss history experienced over the most recent four years, using a weighted average which places more emphasis on the more current years within the loss history window. This actual loss experience is supplemented with other current factors based on the risks present for each portfolio segment. These current factors include consideration of the following: levels of and trends in delinquent, classified, and impaired loans; levels of and trends in charge-offs and recoveries; national and local economic trends and conditions; changes in lending policies and procedures; trends in volume and terms of loans; experience, ability, and depth of lending management and other relevant staff; credit concentrations; value of underlying collateral for collateral dependent loans; and other external factors such as competition and legal and regulatory requirements. The following portfolio segments have been identified: commercial loans, residential loans and consumer loans. A characteristic of the commercial loan segment is that the loans are for business purchases. A characteristic of the residential loan segment is that the loans are secured by residential properties. A characteristic of the consumer loan segment is that the loans are for automobiles and other consumer purchases. Commercial loans are generally well secured, which mitigates the risk of loss and has contributed to the low historical loss rate. However, concentrations in commercial real estate, along with the potential impact of rising interest rates to commercial real estate, raises the risk of loss on commercial loans. For these reasons, commercial loans have the highest adjustment to the historical loss rate. Continued weakness in local economic conditions along with declining auto values resulted in consumer loans having the next highest level of adjustment to the historical loss rate. The residential loan portfolio segment had the lowest level of adjustment to the historical loss rate. | |
Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |
FDIC Indemnification Asset: The FDIC indemnification asset results from the loss share agreements in the 2009 FDIC-assisted transaction. The asset is measured separately from the related covered assets as they are not contractually embedded in the assets and are not transferable with the assets should the Corporation choose to dispose of them. It represents the acquisition date fair value of expected reimbursements from the FDIC which was determined to be $12.1 million. Pursuant to the terms of the loss sharing agreement, covered loans and other real estate are subject to a stated loss threshold whereby the FDIC will reimburse the Corporation for up to 95% of losses incurred. These expected reimbursements do not include reimbursable amounts related to future covered expenditures. These cash flows are discounted to reflect a metric of uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. This asset decreases when losses are realized and claims are paid by the FDIC or when customers repay their loans in full and expected losses do not occur. This asset also increases when estimated future losses increase. When estimated future losses increase, the Corporation records a provision for loan losses and increases its allowance for loan losses accordingly. The related increase or decrease in the FDIC indemnification asset is recorded as an (increase) or offset to the provision for loan losses. During 2014, 2013 and 2012, the provision for loan losses was (increased)/ offset by ($687 thousand), ($1.4 million )and $2.2 million related to the changes in the FDIC indemnification asset. | |
Foreclosed Assets: Assets acquired through or instead of loan foreclosures are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. | |
Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the useful lives of the assets, which range from 3 to 5 years for furniture and equipment and 33 to 39 years for buildings and leasehold improvements. | |
Restricted Stock: Restricted stock includes Federal Home Loan Bank (FHLB) of Indianapolis and Chicago and Federal Reserve stock. This restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on third-party valuations that incorporate assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds and default rates and losses. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. | |
Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with Other Service Fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. | |
Servicing fee income, which is included in Other Service Fees on the income statement, is for fees earned for servicing loans. | |
The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Servicing fees totaled $1.4 million, $1.4 million and $1.3 million for the years ended December 31, 2014, 2013 and 2012. Late fees and ancillary fees related to loan servicing are not material. | |
Stock based compensation: Compensation cost is recognized for restricted stock awards and units issued to employees based on the fair value of these awards at the date of grant. Market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the requisite service period. | |
Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Bank-Owned Life Insurance: The Corporation has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Income on the investments in life insurance is included in other interest income. | |
Goodwill and Other Intangible Assets: Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 represents the future economic benefits arising from other assets acquired that are not individually identified and separately recognized. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. | |
Other intangible assets consist of core deposit and acquired customer list intangible assets arising from the whole bank, insurance agency and branch acquisitions. They are initially measured at fair value and then are amortized on an accelerated basis over their estimated useful lives, which are 10 and 12 years, respectively. | |
Long-Term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
Benefit Plans: Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The amount contributed is determined by a formula as decided by the Board of Directors. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. | |
Employee Stock Ownership Plan: Shares of treasury stock are issued to the ESOP and compensation expense is recognized based upon the total market price of shares when contributed. | |
Deferred Compensation Plan: A deferred compensation plan covers all directors. Under the plan, the Corporation pays each director, or their beneficiary, the amount of fees deferred plus interest over 10 years, beginning when the director achieves age 65. A liability is accrued for the obligation under these plans. The expense incurred for the deferred compensation for each of the last three years was $138 thousand, $149 thousand and $142 thousand, resulting in a deferred compensation liability of $2.4 million at December 31, 2014 and $2.6 million at December 31, 2013. | |
Incentive Plans: A long-term incentive plan established in 2000 provides for the payment of incentive rewards as a 15-year annuity to all directors and certain key officers. That plan was in place through December 31, 2009, and compensation expense is recognized over the service period. Payments under the plan generally did not begin until the earlier of January 1, 2015, or the January 1 immediately following the year in which the participant reaches age 65. There was no compensation expense related to this plan for 2014, 2013 and 2012. There is a liability of $14.0 million and $14.5 million as of year-end 2014 and 2013. In 2011 the Corporation adopted the 2011 Short-term Incentive Plan and the 2011 Omnibus Equity Incentive Plan designed to reward key officers based on certain performance measures. The short-term portion of the plan is paid out within 75 days of year end and the long-term plan vests over a three year period and is paid out within 75 days of the end of each vesting period. The compensation expense related to the plans in 2014, 2013 and 2012 was $654 thousand, $856 thousand and $1.3 million, respectively, and resulted in a liability of $782 thousand at December 31, 2014 and $1.2 million at December 31, 2013. | |
The Omnibus Equity Incentive Plan is a long term incentive plan that was designed to align the interests of participants with the interest of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. | |
Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |
A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded | |
The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. | |
Loan Commitments and Related Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. | |
Earnings Per Share: Earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. The Corporation does not have any potentially dilutive securities. Earnings and dividends per share are restated for stock splits and dividends through the date of issue of the financial statements. | |
Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the retirement plans, which are also recognized as separate components of equity. | |
Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of range of loss can be reasonably estimated. Management does not believe there are currently such matters that will have a material effect on the financial statements. | |
Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. | |
Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or market conditions could significantly affect the estimates. | |
Operating Segment: While the Corporation's chief decision-makers monitor the revenue streams of the various products and services, the operating results of significant segments are similar and operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all of the Corporation's financial service operations are considered by management to be aggregated in one reportable operating segment, which is banking. | |
Adoption of New Accounting Standards: ASU 2014-04 “Receivables (Topic 310) - Troubled Debt Restructurings by Creditors” (“ASU 2014-04”) amends Topic 310 “Receivables” to clarify the terms defining when an in substance repossession or foreclosure occurs, which determines when the receivable should be derecognized and the real estate property is recognized. ASU 2013-04 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. It is not expected to have a significant impact on our financial statements. | |
In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2016; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Corporation is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Corporation's Consolidated Financial Statements. | |
In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized if certain conditions are met in the case of government guarantees. The amendments are effective for annual periods, and interim periods within those years, beginning after December 15, 2014. The adoption of this ASU is not expected to have a significant impact on the Corporation's financial statements. |
FAIR_VALUES_OF_FINANCIAL_INSTR
FAIR VALUES OF FINANCIAL INSTRUMENTS: | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS: | ||||||||||||||||||||
Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
Level 1: Quoted prices (unadjusted) of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||
The fair value of securities available-for-sale is determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). | |||||||||||||||||||||
For those securities that cannot be priced using quoted market prices or observable inputs, a Level 3 valuation is determined. These securities are primarily trust preferred securities, which are priced using Level 3 due to current market illiquidity, and state and municipal securities. The fair value of the trust preferred securities is obtained from a third party provider without adjustment. Management obtains values from other pricing sources to validate the Standard & Poors pricing that they currently utilize. The fair value of state and municipal obligations are derived by comparing the securities to current market rates plus an appropriate credit spread to determine an estimated value. Illiquidity spreads are then considered. Credit reviews are performed on each of the issuers. The significant unobservable inputs used in the fair value measurement of the Corporation’s state and municipal obligations are credit spreads related to specific issuers. Significantly higher credit spread assumptions would result in significantly lower fair value measurement. Conversely, significantly lower credit spreads would result in a significantly higher fair value measurement. | |||||||||||||||||||||
The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs). | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
(Dollar amounts in thousands) | Level 1 | Level 2 | Level 3 | Carrying Value | |||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | — | $ | 1,467 | $ | — | $ | 1,467 | |||||||||||||
Mortgage-backed securities, residential | — | 187,936 | — | 187,936 | |||||||||||||||||
Mortgage-backed securities, commercial | — | 17 | — | 17 | |||||||||||||||||
Collateralized mortgage obligations | — | 484,655 | — | 484,655 | |||||||||||||||||
State and municipal obligations | — | 201,775 | 5,900 | 207,675 | |||||||||||||||||
Collateralized debt obligations | — | — | 15,303 | 15,303 | |||||||||||||||||
TOTAL | $ | — | $ | 875,850 | $ | 21,203 | $ | 897,053 | |||||||||||||
Derivative Assets | $ | 1,062 | |||||||||||||||||||
Derivative Liabilities | (1,062 | ) | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
(Dollar amounts in thousands) | Level 1 | Level 2 | Level 3 | Carrying Value | |||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | — | $ | 1,633 | $ | — | $ | 1,633 | |||||||||||||
Mortgage-backed securities, residential | — | 197,764 | — | 197,764 | |||||||||||||||||
Mortgage-backed securities, commercial | — | 4,391 | — | 4,391 | |||||||||||||||||
Collateralized mortgage obligations | — | 506,741 | — | 506,741 | |||||||||||||||||
State and municipal obligations | — | 190,462 | 4,525 | 194,987 | |||||||||||||||||
Collateralized debt obligations | — | — | 9,044 | 9,044 | |||||||||||||||||
TOTAL | $ | — | $ | 900,991 | $ | 13,569 | $ | 914,560 | |||||||||||||
Derivative Assets | $ | 1,195 | |||||||||||||||||||
Derivative Liabilities | (1,195 | ) | |||||||||||||||||||
There were no transfers between Level 1 and Level 2 during 2014 and 2013. | |||||||||||||||||||||
The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2014 and 2013. | |||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
State and municipal obligations | Collateralized debt obligations | Total | |||||||||||||||||||
Beginning balance, January 1 | $ | 4,525 | $ | 9,044 | $ | 13,569 | |||||||||||||||
Total realized/unrealized gains or losses | |||||||||||||||||||||
Included in earnings | — | — | — | ||||||||||||||||||
Included in other comprehensive income | — | 7,100 | 7,100 | ||||||||||||||||||
Purchases | 4,000 | — | 4,000 | ||||||||||||||||||
Settlements | (2,625 | ) | (841 | ) | (3,466 | ) | |||||||||||||||
Ending balance, December 31 | $ | 5,900 | $ | 15,303 | $ | 21,203 | |||||||||||||||
Fair Value Measurements Using SignificantUnobservable Inputs (Level 3) | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
State and | Collateralized | Total | |||||||||||||||||||
municipal | debt | ||||||||||||||||||||
obligations | obligations | ||||||||||||||||||||
Beginning balance, January 1 | $ | 9,911 | $ | 6,122 | $ | 16,033 | |||||||||||||||
Total realized/unrealized gains or losses | |||||||||||||||||||||
Included in earnings | — | 904 | 904 | ||||||||||||||||||
Included in other comprehensive income | — | 3,155 | 3,155 | ||||||||||||||||||
Transfers | (1,186 | ) | — | (1,186 | ) | ||||||||||||||||
Settlements | (4,200 | ) | (1,137 | ) | (5,337 | ) | |||||||||||||||
Ending balance, December 31 | $ | 4,525 | $ | 9,044 | $ | 13,569 | |||||||||||||||
There were no unrealized gains and losses recorded in earnings for the years ended December 31, 2014 or 2013. | |||||||||||||||||||||
Certain local municipal securities with a fair value of $4.0 million as of December 31, 2014 were purchased and added to Level 3 because we were unable to obtain observable market data from our provider for these investments. Certain local municipal securities with a fair value of $1.2 million as of December 31, 2013 were transferred from Level 3 to Level 2 because we were able to obtain observable market data from our provider for these investments that was not available the previous year. | |||||||||||||||||||||
Impaired loans disclosed in footnote 7, which are measured for impairment using the fair value of collateral, are valued at Level 3. They are carried at a fair value of $11.5 million, after a valuation allowance of $1.9 million at December 31, 2014 and at a fair value of $13.8 million, net of a valuation allowance of $3.1 million at December 31, 2013. The impact to the provision for loan losses for the twelve months ended December 31, 2014 and December 31, 2013 was a $1.2 million decrease and a $0.9 million decrease, respectively. Other real estate owned is valued at Level 3. Other real estate owned at December 31, 2014 with a value of $4.0 million was reduced $1.1 million for fair value adjustment. At December 31, 2014 other real estate owned was comprised of $3.0 million from commercial loans and $1.0 million from residential loans. Other real estate owned at December 31, 2013 with a value of $5.3 million was reduced $1.1 million for fair value adjustment. At December 31, 2013 other real estate owned was comprised of $3.9 million from commercial loans and $1.4 million from residential loans. | |||||||||||||||||||||
Fair value is measured based on the value of the collateral securing those loans, and is determined using several methods. Generally the fair value of real estate is determined based on appraisals by qualified licensed appraisers. Appraisals for real estate generally use three methods to derive value: cost, sales or market comparison and income approach. The cost method bases value on the cost to replace current property. The market comparison evaluates the sales price of similar properties in the same market area. The income approach considers net operating income generated by the property and the investor’s required return. The final fair value is based on a reconciliation of these three approaches. If an appraisal is not available, the fair value may be determined by using a cash flow analysis, a broker’s opinion of value, the net present value of future cash flows, or an observable market price from an active market. Fair value of other real estate is based upon the current appraised values of the properties as determined by qualified licensed appraisers and the Company’s judgment of other relevant market conditions. Appraisals are obtained annually and reductions in value are recorded as a valuation through a charge to expense. The primary unobservable input used by management in estimating fair value are additional discounts to the appraised value to consider market conditions and the age of the appraisal, which are based on management’s past experience in resolving these types of properties. These discounts range from 0% to 50%. Values for non-real estate collateral, such as business equipment, are based on appraisals performed by qualified licensed appraisers or the customers financial statements. Values for non real estate collateral use much higher discounts than real estate collateral. Other real estate and impaired loans carried at fair value are primarily comprised of smaller balance properties. | |||||||||||||||||||||
The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2014 and 2013. | |||||||||||||||||||||
2014 | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | |||||||||||||||||
State and municipal obligations | $ | 5,900 | Discounted cash flow | Discount rate | 3.05%-5.50% | ||||||||||||||||
Probability of default | — | % | |||||||||||||||||||
Other real estate | $ | 3,965 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 5.00%-20.00% | ||||||||||||||||
Impaired Loans | $ | 11,477 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 0.00%-50.00% | ||||||||||||||||
2013 | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | |||||||||||||||||
State and municipal obligations | $ | 4,525 | Discounted cash flow | Discount rate | 3.05%-5.50% | ||||||||||||||||
Probability of default | — | % | |||||||||||||||||||
Other real estate | $ | 5,291 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 5.00%-20.00% | ||||||||||||||||
Impaired Loans | $ | 13,765 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 0.00%-50.00% | ||||||||||||||||
The following tables present impaired collateral dependent loans measured at fair value on a non-recurring basis by class of loans as of December 31, 2014 and 2013. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollar amounts in thousands) | Carrying Value | Allowance | Fair Value | ||||||||||||||||||
for Loan | |||||||||||||||||||||
Losses | |||||||||||||||||||||
Allocated | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Commercial & Industrial | $ | 5,874 | $ | 1,056 | $ | 4,818 | |||||||||||||||
Farmland | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 6,654 | 753 | 5,901 | ||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||
All Other Commercial | 827 | 102 | 725 | ||||||||||||||||||
Residential | |||||||||||||||||||||
First Liens | 33 | — | 33 | ||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||
TOTAL | $ | 13,388 | $ | 1,911 | $ | 11,477 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollar amounts in thousands) | Carrying Value | Allowance | Fair Value | ||||||||||||||||||
for Loan | |||||||||||||||||||||
Losses | |||||||||||||||||||||
Allocated | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Commercial & Industrial | $ | 8,620 | $ | 1,612 | $ | 7,008 | |||||||||||||||
Farmland | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 7,204 | 1,500 | 5,704 | ||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||
All Other Commercial | 1,062 | 46 | 1,016 | ||||||||||||||||||
Residential | |||||||||||||||||||||
First Liens | 37 | — | 37 | ||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||
TOTAL | $ | 16,923 | $ | 3,158 | $ | 13,765 | |||||||||||||||
The carrying amounts and estimated fair values of financial instruments are shown below. Carrying amount is the estimated fair value for cash and due from banks, federal funds sold, accrued interest receivable and payable, demand deposits, short-term and certain other borrowings, and variable-rate loans or deposits that reprice frequently and fully. Security fair values are determined as previously described. It is not practicable to determine the fair value of restricted stock due to restrictions placed on their transferability. For the FDIC indemnification asset the carrying value is the estimated fair value as it represents amounts to be received from or paid to the FDIC in the near term. For fixed-rate loans or deposits, variable rate loans or deposits with infrequent repricing or repricing limits, and for longer-term borrowings, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance sheet items is not considered material. | |||||||||||||||||||||
The carrying amount and estimated fair value of assets and liabilities are presented in the table below and were determined based on the above assumptions: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash and due from banks | $ | 78,102 | $ | 22,597 | $ | 55,505 | $ | — | $ | 78,102 | |||||||||||
Federal funds sold | 8,000 | — | 8,000 | — | 8,000 | ||||||||||||||||
Securities available-for-sale | 897,053 | — | 875,850 | 21,203 | 897,053 | ||||||||||||||||
Restricted stock | 16,404 | n/a | n/a | n/a | n/a | ||||||||||||||||
Loans, net | 1,762,589 | — | — | 1,810,885 | 1,810,885 | ||||||||||||||||
FDIC Indemnification Asset | (74 | ) | — | (74 | ) | — | (74 | ) | |||||||||||||
Accrued interest receivable | 11,593 | — | 3,183 | 8,410 | 11,593 | ||||||||||||||||
Deposits | (2,457,197 | ) | — | (2,459,703 | ) | — | (2,459,703 | ) | |||||||||||||
Short-term borrowings | (48,015 | ) | — | (48,015 | ) | — | (48,015 | ) | |||||||||||||
Federal Home Loan Bank advances | (12,886 | ) | — | (13,605 | ) | — | (13,605 | ) | |||||||||||||
Accrued interest payable | (456 | ) | — | (456 | ) | — | (456 | ) | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash and due from banks | $ | 71,033 | $ | 22,455 | $ | 48,578 | $ | — | $ | 71,033 | |||||||||||
Federal funds sold | 4,276 | — | 4,276 | — | 4,276 | ||||||||||||||||
Securities available-for-sale | 914,560 | — | 900,991 | 13,569 | 914,560 | ||||||||||||||||
Restricted stock | 21,057 | n/a | n/a | n/a | n/a | ||||||||||||||||
Loans, net | 1,771,360 | — | — | 1,816,726 | 1,816,726 | ||||||||||||||||
FDIC Indemnification Asset | 1,055 | — | 1,055 | — | 1,055 | ||||||||||||||||
Accrued interest receivable | 11,554 | — | 3,279 | 8,275 | 11,554 | ||||||||||||||||
Deposits | (2,458,791 | ) | — | (2,463,330 | ) | — | (2,463,330 | ) | |||||||||||||
Short-term borrowings | (59,592 | ) | — | (59,592 | ) | — | (59,592 | ) | |||||||||||||
Federal Home Loan Bank advances | (58,288 | ) | — | (60,258 | ) | — | (60,258 | ) | |||||||||||||
Accrued interest payable | (750 | ) | — | (750 | ) | — | (750 | ) | |||||||||||||
RESTRICTIONS_ON_CASH_AND_DUE_F
RESTRICTIONS ON CASH AND DUE FROM BANKS: | 12 Months Ended |
Dec. 31, 2014 | |
Restrictions On Cash and Due From Banks Disclosure [Abstract] | |
RESTRICTIONS ON CASH AND DUE FROM BANKS | RESTRICTIONS ON CASH AND DUE FROM BANKS: |
Certain affiliate banks are required to maintain average reserve balances with the Federal Reserve Bank. The amount of those reserve balances was approximately $10.5 million and $11.5 million at December 31, 2014 and 2013, respectively. |
SECURITIES
SECURITIES: | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
SECURITIES | SECURITIES: | ||||||||||||||||||||||||
The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Unrealized | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | 1,411 | $ | 56 | $ | — | $ | 1,467 | |||||||||||||||||
Mortgage-backed securities, residential | 180,673 | 7,593 | (330 | ) | 187,936 | ||||||||||||||||||||
Mortgage-backed securities, commercial | 17 | — | — | 17 | |||||||||||||||||||||
Collateralized mortgage obligations | 489,765 | 2,513 | (7,623 | ) | 484,655 | ||||||||||||||||||||
State and municipal obligations | 198,875 | 9,019 | (219 | ) | 207,675 | ||||||||||||||||||||
Collateralized debt obligations | 10,205 | 5,115 | (17 | ) | 15,303 | ||||||||||||||||||||
TOTAL | $ | 880,946 | $ | 24,296 | $ | (8,189 | ) | $ | 897,053 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Unrealized | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | 1,623 | $ | 10 | $ | — | $ | 1,633 | |||||||||||||||||
Mortgage-backed securities, residential | 191,995 | 7,761 | (1,992 | ) | 197,764 | ||||||||||||||||||||
Mortgage-backed securities, commercial | 4,642 | 1 | (252 | ) | 4,391 | ||||||||||||||||||||
Collateralized mortgage obligations | 521,148 | 1,492 | (15,899 | ) | 506,741 | ||||||||||||||||||||
State and municipal obligations | 190,521 | 6,388 | (1,922 | ) | 194,987 | ||||||||||||||||||||
Collateralized debt obligations | 10,968 | 4,695 | (6,619 | ) | 9,044 | ||||||||||||||||||||
TOTAL | $ | 920,897 | $ | 20,347 | $ | (26,684 | ) | $ | 914,560 | ||||||||||||||||
As of December 31, 2014, the Corporation does not have any securities from any issuer, other than the U.S. Government, with an aggregate book or fair value that exceeds ten percent of shareholders' equity. | |||||||||||||||||||||||||
Securities with a carrying value of approximately $412.5 million and $361.9 million at December 31, 2014 and 2013, respectively, were pledged as collateral for short-term borrowings and for other purposes. | |||||||||||||||||||||||||
Below is a summary of the gross gains and losses realized by the Corporation on investment sales during the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Proceeds | $ | 356 | $ | 5,110 | $ | 25,812 | |||||||||||||||||||
Gross gains | — | 423 | 891 | ||||||||||||||||||||||
Gross losses | (1 | ) | — | (5 | ) | ||||||||||||||||||||
Additional gains of $2 thousand and losses of $4 thousand in 2014 and gains of $5 thousand and losses of $5 thousand in 2013 and gains of $2 thousand in 2012 resulted from redemption premiums on called securities. | |||||||||||||||||||||||||
Contractual maturities of debt securities at year-end 2014 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately. | |||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 7,607 | $ | 7,700 | |||||||||||||||||||||
Due after one but within five years | 37,409 | 38,891 | |||||||||||||||||||||||
Due after five but within ten years | 86,911 | 90,908 | |||||||||||||||||||||||
Due after ten years | 78,564 | 86,946 | |||||||||||||||||||||||
210,491 | 224,445 | ||||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations | 670,455 | 672,608 | |||||||||||||||||||||||
TOTAL | $ | 880,946 | $ | 897,053 | |||||||||||||||||||||
The following tables show the securities' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2014 and 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
(Dollar amounts in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
Mortgage-backed securities, residential | $ | — | $ | — | $ | 23,849 | $ | (330 | ) | $ | 23,849 | $ | (330 | ) | |||||||||||
Collateralized mortgage obligations | 50,832 | (128 | ) | 264,940 | (7,495 | ) | 315,772 | (7,623 | ) | ||||||||||||||||
State and municipal obligations | 6,500 | (35 | ) | 10,547 | (184 | ) | 17,047 | (219 | ) | ||||||||||||||||
Collateralized debt obligations | — | — | 200 | (17 | ) | 200 | (17 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 57,332 | $ | (163 | ) | $ | 299,536 | $ | (8,026 | ) | $ | 356,868 | $ | (8,189 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
(Dollar amounts in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
Mortgage-backed securities, residential | $ | 52,524 | $ | (1,645 | ) | $ | 6,022 | $ | (347 | ) | $ | 58,546 | $ | (1,992 | ) | ||||||||||
Mortgage-backed securities, commercial | — | — | 4,357 | (252 | ) | 4,357 | (252 | ) | |||||||||||||||||
Collateralized mortgage obligations | 406,291 | (13,979 | ) | 29,588 | (1,920 | ) | 435,879 | (15,899 | ) | ||||||||||||||||
State and municipal obligations | 43,899 | (1,746 | ) | 2,305 | (176 | ) | 46,204 | (1,922 | ) | ||||||||||||||||
Collateralized debt obligations | — | — | 3,686 | (6,619 | ) | 3,686 | (6,619 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 502,714 | $ | (17,370 | ) | $ | 45,958 | $ | (9,314 | ) | $ | 548,672 | $ | (26,684 | ) | ||||||||||
The Corporation held 108 investment securities with an amortized cost greater than fair value as of December 31, 2014. The unrealized losses on collateralized mortgage obligations, mortgage-backed securities and state and municipal obligations represent negative adjustments to fair value relative to the rate of interest paid on the securities and not losses related to the creditworthiness of the issuer. Gross unrealized losses on investment securities were $8.2 million as of December 31, 2014 and $26.7 million as of December 31, 2013. Management does not intend to sell and it is not more likely than not that management would be required to sell the securities prior to their anticipated recovery. Management believes the value will recover as the securities approach maturity or market rates change. | |||||||||||||||||||||||||
Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. | |||||||||||||||||||||||||
Investment securities are generally evaluated for OTTI under FASB ASC 320, Investments—Debt and Equity Securities. However, certain purchased beneficial interests, including non-agency mortgage-backed securities, asset-backed securities, and collateralized debt obligations, that had credit ratings at the time of purchase of below AA are evaluated using the model outlined in FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. | |||||||||||||||||||||||||
In determining OTTI under the FASB ASC-320 model, management considers many factors, including: (1)the length of time and the extent to which the fair value has been less than cost, (2)the financial condition and near-term prospects of the issuer, (3) whether the fair value decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. | |||||||||||||||||||||||||
The second segment of the portfolio uses the OTTI guidance provided by FASB ASC-325 that is specific to purchase beneficial interests that, on the purchase date, were rated below AA. Under the FASB ASC-325 model, the Corporation compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |||||||||||||||||||||||||
When OTTI occurs under either model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment's amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. | |||||||||||||||||||||||||
In prior years, a significant portion of the total unrealized losses relates to collateralized debt obligations that were separately evaluated under FASB ASC 325-40, Beneficial Interests in Securitized Financial Assets. Based upon qualitative considerations, such as a downgrade in credit rating or further defaults of underlying issuers during the year, and an analysis of expected cash flows, we determined that three CDOs included in collateralized debt obligations were other-than-temporarily impaired. Those three CDO’s have a contractual balance of $25.8 million at December 31, 2014 which has been reduced to $15.1 million by $1.8 million of interest payments received, $14.0 million of cumulative OTTI charges recorded through earnings to date and increased by $5.1 million recorded in other comprehensive income. The severity of the OTTI recorded varies by security, based on the analysis described below, and ranges, at December 31, 2014 from 28% to 93%. The temporary impairment recorded in other comprehensive income is due to factors other than credit loss, mainly current market illiquidity. These securities are collateralized by trust preferred securities issued primarily by bank holding companies, but certain pools do include a limited number of insurance companies. The Corporation uses the OTTI evaluation model to compare the present value of expected cash flows to the previous estimate to determine if there are adverse changes in cash flows during the year. The OTTI model considers the structure and term of the CDO and the financial condition of the underlying issuers. Specifically, the model details interest rates, principal balances of note classes and underlying issuers, the timing and amount of interest and principal payments of the underlying issuers, and the allocation of the payments to the note classes. Cash flows are projected using a forward rate LIBOR curve, as these CDOs are variable-rate instruments. An average rate is then computed using this same forward rate curve to determine an appropriate discount rate (3 month LIBOR plus margin ranging from 160 to 180 basis points). The current estimate of expected cash flows is based on the most recent trustee reports and any other relevant market information, including announcements of interest payment deferrals or defaults of underlying trust preferred securities. Assumptions used in the model include expected future default rates and prepayments. We assume no recoveries on defaults and treat all interest payment deferrals as defaults. In addition we use the model to “stress” each CDO, or make assumptions more severe than expected activity, to determine the degree to which assumptions could deteriorate before the CDO could no longer fully support repayment of the Corporation’s note class. In the current year the fair value of these securities exceeds their carrying value so managment determined there was no OTTI. | |||||||||||||||||||||||||
In the third quarter of 2013, the Corporation received a $1.3 million payment on a CDO that had a book value of $0.2 million. The payment in excess of book value is recognized as interest income. This CDO had the highest severity of recorded impairment and while a payment by the issuer was expected, such payment was not projected until maturity in the OTTI evaluation at June 30, 2013. The future payments, if any, on this CDO cannot be predicted with enough accuracy that such future payments will be recorded as interest income when received. | |||||||||||||||||||||||||
Collateralized debt obligations include one additional investment in a CDO consisting of pooled trust preferred securities in which the issuers are primarily banks. This CDO, with an amortized cost of $218 thousand and a fair value of $200 thousand, is currently rated BAA3 and is the senior tranche, is not in the scope of FASB ASC 325 as it was rated high investment grade at purchase, and is not considered to be other-than-temporarily impaired based on its credit quality. Its fair value is negatively impacted by the factors described above. | |||||||||||||||||||||||||
Management has consistently used Standard & Poors pricing to value these investments. There are a number of other pricing sources available to determine fair value for these investments. These sources utilize a variety of methods to determine fair value. The result is a wide range of estimates of fair value for these securities. The Standard & Poors pricing ranges from 45.44 to 92.06 while Moody’s Investor Service pricing ranges from 7.22 to 96.04, with others falling somewhere in between. We recognize that the Standard & Poors pricing utilized is likely a conservative estimate, but have been consistent in using this source and its estimate of fair value. | |||||||||||||||||||||||||
The table below presents a rollforward of the credit losses recognized in earnings for the years presented: | |||||||||||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Beginning balance, January 1, | $ | 14,079 | $ | 14,983 | $ | 15,180 | |||||||||||||||||||
Amounts related to credit loss for which other-than- | |||||||||||||||||||||||||
temporary impairment was not previously recognized | 11 | ||||||||||||||||||||||||
Amounts realized for securities sold during the period | (208 | ) | |||||||||||||||||||||||
Reductions for increase in cash flows expected to be collected | |||||||||||||||||||||||||
that are recognized over the remaining life of the security | (29 | ) | (904 | ) | — | ||||||||||||||||||||
Increases to the amount related to the credit loss for which other- | |||||||||||||||||||||||||
than-temporary impairment was previously recognized | — | — | — | ||||||||||||||||||||||
Ending balance, December 31, | $ | 14,050 | $ | 14,079 | $ | 14,983 | |||||||||||||||||||
LOANS
LOANS: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loans Receivable, Net [Abstract] | |||||||||||||
LOANS | |||||||||||||
Loans are summarized as follows: | |||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
Commercial | $ | 1,044,522 | $ | 1,042,138 | |||||||||
Residential | 469,172 | 482,377 | |||||||||||
Consumer | 266,656 | 268,033 | |||||||||||
Total gross loans | 1,780,350 | 1,792,548 | |||||||||||
Less (plus): deferred (fees) costs | 1,078 | (1,120 | ) | ||||||||||
Allowance for loan losses | (18,839 | ) | (20,068 | ) | |||||||||
TOTAL | $ | 1,762,589 | $ | 1,771,360 | |||||||||
Loans in the above summary include loans totaling $7.3 million and $18.5 million at December 31, 2014 and 2013 that are subject to the FDIC loss share arrangement (“covered loans”) discussed in footnote 6. | |||||||||||||
The Corporation periodically sells residential mortgage loans it originates based on the overall loan demand of the Corporation and the outstanding balances in the residential mortgage portfolio. At December 31, 2014 and 2013, loans held for sale included $3.0 million and $3.3 million, respectively, and are included in the totals above. | |||||||||||||
In the normal course of business, the Corporation’s subsidiary banks make loans to directors and executive officers and to their associates. In 2014, the aggregate dollar amount of these loans to directors and executive officers who held office amounted to $55.6 million at the beginning of the year. During 2014, advances of $13.7 million, repayments of $28.5 million and decreases of $0.2 million resulting from changes in personnel were made with respect to related party loans for an aggregate dollar amount outstanding of $40.6 million at December 31, 2014. | |||||||||||||
Loans serviced for others, which are not reported as assets, total $521.7 million and $539.0 million at year-end 2014 and 2013. Custodial escrow balances maintained in connection with serviced loans were $2.59 million and $2.61 million at year-end 2014 and 2013. | |||||||||||||
Activity for capitalized mortgage servicing rights (included in other assets) was as follows: | |||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Servicing rights: | |||||||||||||
Beginning of year | $ | 2,065 | $ | 2,225 | $ | 2,429 | |||||||
Additions | 414 | 588 | 868 | ||||||||||
Amortized to expense | (616 | ) | (748 | ) | (1,072 | ) | |||||||
End of year | $ | 1,863 | $ | 2,065 | $ | 2,225 | |||||||
Third party valuations are conducted periodically for mortgage servicing rights. Based on these valuations, fair values were approximately $2.9 million and $3.0 million at year end 2014 and 2013. There was no valuation allowance in 2014 or 2013. | |||||||||||||
Fair value for 2014 was determined using a discount rate of 10%, prepayment speeds ranging from 112% to 403%, depending on the stratification of the specific right. Fair value at year end 2013 was determined using a discount rate of 10%, prepayment speeds ranging from 110% to 550%, depending on the stratification of the specific right. Mortgage servicing rights are amortized over 8 years, the expected life of the sold loans. |
ACQUISITIONS_AND_FDIC_INDEMNIF
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET | ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: | ||||||||||||
On August 16, 2013, the Bank completed a Purchase and Assumption Agreement with Bank of America, National Association. Under the terms of the Agreement, First Financial Bank purchased certain assets and assumed certain liabilities of 7 branch offices and 2 drive-up facilities of Bank of America in central and southern Illinois. The acquisition was beneficial in increasing the presence of the bank in the Illinois market. First Financial received cash in the amount of $177.7 million. The acquisition consisted of loans with a fair value of $1.9 million, fixed assets with a value of $5.9 million, a customer related core deposit intangible asset of $2.2 million, deposits with a value of $189.3 million and other liabilities of $0.3 million. Based upon the acquisition date fair values of the net assets acquired, goodwill of $1.9 million was recorded, all of which is expected to be tax deductible. | |||||||||||||
On December 30, 2011, the Bank completed a purchase and assumption agreement with PNB Holding Co (PNB), an Illinois corporation, to purchase all of the issued and outstanding stock of Freestar Bank, National Association, and assume certain liabilities of PNB (the “Transaction”). Immediately following the acquisition of the stock of Freestar Bank, First Financial merged Freestar Bank with and into its wholly-owned subsidiary, First Financial Bank, National Association. This acquisition provided a strategic entry into the Champaign-Urbana, Bloomington-Normal and Pontiac, Illinois markets. Each of these markets are characterized by higher growth rates. | |||||||||||||
On July 2, 2009, the Bank entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation (“FDIC”) to assume all of the deposits (excluding brokered deposits) and certain assets of The First National Bank of Danville, a full-service commercial bank headquartered in Danville, Illinois, that had failed and been placed in receivership with the FDIC. Under the loss-sharing agreement (“LSA”), the Bank will share in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $29 million, the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $29 million, the FDIC agreed to reimburse the Bank for 95% of the losses. The loss-sharing agreement is subject to following servicing procedures as specified in the agreement with the FDIC. Loans acquired that are subject to the loss-sharing agreement with the FDIC are referred to as covered loans for disclosure purposes. Since the acquisition date the Bank has been reimbursed $24.2 million for losses and carrying expenses. In 2014 the non-single family (NSF) loss period ended eliminating future loss reimbursements only to the extent of recoveries received. There is no estimate for the loans subject to the loss-sharing agreement identified in the allowance for loan loss evaluation as future potential losses at December 31, 2014. Loans covered by the loss share agreement excluding AS 310-30 loans at December 31, 2014 and 2013 totaled $7.3 million and $18.5 million, respectively. | |||||||||||||
FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, applies to a loan with evidence of deterioration of credit quality since origination, acquired by completion of a transfer for which it is probable, at acquisition, that the investor will be unable to collect all contractually required payments receivable. FASB ASC 310-30 prohibits carrying over or creating an allowance for loan losses upon initial recognition. The Freestar and Danville acquisitions resulted in loans accounted for following this standard. The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at December 31, 2014 and 2013, are shown in the following tables: | |||||||||||||
2014 | |||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | ||||||||||
Beginning balance | $ | 7,676 | $ | 2,409 | $ | 10,085 | |||||||
Discount accretion | — | — | — | ||||||||||
Disposals | (2,873 | ) | (838 | ) | (3,711 | ) | |||||||
ASC 310-30 Loans | $ | 4,803 | $ | 1,571 | $ | 6,374 | |||||||
2013 | |||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | ||||||||||
Beginning balance | $ | 13,654 | $ | 3,464 | $ | 17,118 | |||||||
Discount accretion | (24 | ) | (12 | ) | (36 | ) | |||||||
Disposals | (5,954 | ) | (1,043 | ) | (6,997 | ) | |||||||
ASC 310-30 Loans | $ | 7,676 | $ | 2,409 | $ | 10,085 | |||||||
The rollforward of the FDIC Indemnification asset is as follows: | |||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
Beginning balance | $ | 1,055 | $ | 2,632 | |||||||||
Accretion | — | — | |||||||||||
Net changes in losses and expenses added | (79 | ) | (1,225 | ) | |||||||||
Reimbursements from the FDIC | (1,050 | ) | (352 | ) | |||||||||
TOTAL | $ | (74 | ) | $ | 1,055 | ||||||||
ALLOWANCE_FOR_LOAN_LOSSES
ALLOWANCE FOR LOAN LOSSES: | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Allowance For Loan Losses Disclosure [Abstract] | |||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Allowance for Loan Losses: | 31-Dec-14 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Beginning balance | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | |||||||||||||||
Provision for loan losses* | 1,053 | 134 | 3,401 | (203 | ) | 4,385 | |||||||||||||||||||
Loans charged -off | (3,522 | ) | (1,143 | ) | (4,785 | ) | — | (9,450 | ) | ||||||||||||||||
Recoveries | 934 | 798 | 2,104 | — | 3,836 | ||||||||||||||||||||
Ending Balance | $ | 10,915 | $ | 1,374 | $ | 4,370 | $ | 2,180 | $ | 18,839 | |||||||||||||||
* Provision before increase of $687 thousand in 2014 for decrease in FDIC indemnification asset | |||||||||||||||||||||||||
Allowance for Loan Losses: | 31-Dec-13 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Beginning balance | $ | 10,987 | $ | 5,426 | $ | 3,879 | $ | 1,666 | $ | 21,958 | |||||||||||||||
Provision for loan losses* | 3,144 | 629 | 1,985 | 717 | 6,475 | ||||||||||||||||||||
Loans charged -off | (4,830 | ) | (4,942 | ) | (3,615 | ) | — | (13,387 | ) | ||||||||||||||||
Recoveries | 3,149 | 472 | 1,401 | — | 5,022 | ||||||||||||||||||||
Ending Balance | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | |||||||||||||||
* Provision before increase of $1.4 million in 2013 for increase in FDIC indemnification asset | |||||||||||||||||||||||||
Allowance for Loan Losses: | 31-Dec-12 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Beginning balance | $ | 12,119 | $ | 2,728 | $ | 3,889 | $ | 505 | $ | 19,241 | |||||||||||||||
Provision for loan losses* | 2,400 | 5,196 | 2,243 | 1,161 | 11,000 | ||||||||||||||||||||
Loans charged -off | (4,176 | ) | (2,598 | ) | (3,640 | ) | — | (10,414 | ) | ||||||||||||||||
Recoveries | 644 | 100 | 1,387 | — | 2,131 | ||||||||||||||||||||
Ending Balance | $ | 10,987 | $ | 5,426 | $ | 3,879 | $ | 1,666 | $ | 21,958 | |||||||||||||||
* Provision before decrease of $2.2 million in 2012 for increase in FDIC indemnification asset | |||||||||||||||||||||||||
The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2014 and 2013: | |||||||||||||||||||||||||
Allowance for Loan Losses: | December 31, 2014 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,911 | $ | — | $ | — | $ | — | $ | 1,911 | |||||||||||||||
Collectively evaluated for impairment | 8,733 | 1,365 | 4,370 | 2,180 | 16,648 | ||||||||||||||||||||
Acquired with deteriorated credit quality | 271 | 9 | — | — | 280 | ||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 10,915 | $ | 1,374 | $ | 4,370 | $ | 2,180 | $ | 18,839 | |||||||||||||||
Loans | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
Individually evaluated for impairment | $ | 14,573 | $ | 33 | $ | — | $ | 14,606 | |||||||||||||||||
Collectively evaluated for impairment | 1,030,949 | 468,872 | 267,880 | 1,767,701 | |||||||||||||||||||||
Acquired with deteriorated credit quality | 4,887 | 1,631 | — | 6,518 | |||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 1,050,409 | $ | 470,536 | $ | 267,880 | $ | 1,788,825 | |||||||||||||||||
Allowance for Loan Losses: | 31-Dec-13 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Individually evaluated for impairment | $ | 3,158 | $ | — | $ | — | $ | — | $ | 3,158 | |||||||||||||||
Collectively evaluated for impairment | 8,421 | 1,408 | 3,650 | 2,383 | 15,862 | ||||||||||||||||||||
Acquired with deteriorated credit quality | 871 | 177 | — | — | 1,048 | ||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | |||||||||||||||
Loans | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
Individually evaluated for impairment | $ | 18,825 | $ | 37 | $ | — | $ | 18,862 | |||||||||||||||||
Collectively evaluated for impairment | 1,020,771 | 481,439 | 269,352 | 1,771,562 | |||||||||||||||||||||
Acquired with deteriorated credit quality | 8,001 | 2,397 | — | 10,398 | |||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 1,047,597 | $ | 483,873 | $ | 269,352 | $ | 1,800,822 | |||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loan. | |||||||||||||||||||||||||
31-Dec-14 | Allowance | Cash Basis | |||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | Interest | |||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | Income | ||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 1,200 | $ | 926 | $ | — | $ | 2,589 | $ | — | $ | — | |||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||
Non Farm, Non Residential | — | — | — | 58 | — | — | |||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | 292 | 292 | — | 58 | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | — | — | — | 5 | — | — | |||||||||||||||||||
Home Equity | — | — | — | — | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | — | |||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | 7,388 | 5,874 | 1,056 | 6,177 | — | — | |||||||||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||
Non Farm, Non Residential | 6,654 | 6,654 | 753 | 6,698 | — | ||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | 827 | 827 | 102 | 1,112 | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 33 | 33 | — | 35 | — | — | |||||||||||||||||||
Home Equity | — | — | — | — | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | ||||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 16,394 | $ | 14,606 | $ | 1,911 | $ | 16,732 | $ | — | $ | — | |||||||||||||
31-Dec-13 | Allowance | Cash Basis | |||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | Interest | |||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | Income | ||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 2,120 | $ | 1,918 | $ | — | $ | 1,555 | $ | — | $ | — | |||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||
Non Farm, Non Residential | 271 | 105 | — | 26 | — | — | |||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | — | — | — | — | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | — | — | — | 7 | — | — | |||||||||||||||||||
Home Equity | — | — | — | — | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | — | |||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | 10,134 | 8,620 | 1,612 | 13,029 | 217 | 217 | |||||||||||||||||||
Farmland | — | — | — | 356 | 113 | 113 | |||||||||||||||||||
Non Farm, Non Residential | 7,664 | 7,204 | 1,500 | 7,921 | — | ||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | 1,062 | 1,062 | 46 | 2,979 | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 37 | 37 | — | 524 | — | — | |||||||||||||||||||
Home Equity | — | — | — | 113 | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | ||||||||||||||||||||
Multifamily | — | — | — | 2,216 | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 21,288 | $ | 18,946 | $ | 3,158 | $ | 28,726 | $ | 330 | $ | 330 | |||||||||||||
31-Dec-12 | Cash Basis | ||||||||||||||||||||||||
Average | Interest | Interest | |||||||||||||||||||||||
Recorded | Income | Income | |||||||||||||||||||||||
Investment | Recognized | Recognized | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 1,013 | $ | — | $ | — | |||||||||||||||||||
Farmland | — | — | — | ||||||||||||||||||||||
Non Farm, Non Residential | 1,679 | — | — | ||||||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||||||
All Other Commercial | — | — | — | ||||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 150 | — | — | ||||||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||||||
Junior Liens | — | — | — | ||||||||||||||||||||||
Multifamily | 50 | — | — | ||||||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | 16,738 | — | — | ||||||||||||||||||||||
Farmland | 891 | — | — | ||||||||||||||||||||||
Non Farm, Non Residential | 5,000 | 179 | — | ||||||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||||||
All Other Commercial | 1,362 | — | — | ||||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 1,230 | — | — | ||||||||||||||||||||||
Home Equity | 75 | — | — | ||||||||||||||||||||||
Junior Liens | 176 | — | — | ||||||||||||||||||||||
Multifamily | 2,216 | — | — | ||||||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||||||
TOTAL | $ | 30,580 | $ | 179 | $ | — | |||||||||||||||||||
The following table presents the recorded investment in nonperforming loans by class of loans. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Loans Past | Troubled Debt | ||||||||||||||||||||||||
Due Over | Restructured | ||||||||||||||||||||||||
90 Day Still | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Accruing | Accrual | Non-accrual | Non-accrual | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | — | $ | 7 | $ | 4,961 | $ | 3,720 | |||||||||||||||||
Farmland | — | — | — | 79 | |||||||||||||||||||||
Non Farm, Non Residential | — | 10 | 3,987 | 3,388 | |||||||||||||||||||||
Agriculture | — | — | — | 767 | |||||||||||||||||||||
All Other Commercial | — | — | — | 1,258 | |||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 603 | 4,357 | 842 | 3,861 | |||||||||||||||||||||
Home Equity | 88 | — | — | 404 | |||||||||||||||||||||
Junior Liens | 12 | — | — | 275 | |||||||||||||||||||||
Multifamily | — | — | — | — | |||||||||||||||||||||
All Other Residential | 5 | — | — | 111 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 162 | 257 | 83 | 210 | |||||||||||||||||||||
All Other Consumer | 3 | 1 | 269 | 961 | |||||||||||||||||||||
TOTAL | $ | 873 | $ | 4,632 | $ | 10,142 | $ | 15,034 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Loans Past | Troubled Debt | ||||||||||||||||||||||||
Due Over | Restructured | ||||||||||||||||||||||||
90 Day Still | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Accruing | Accrual | Non-accrual | Non-accrual | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 240 | $ | — | $ | 6,578 | $ | 6,861 | |||||||||||||||||
Farmland | — | — | — | 99 | |||||||||||||||||||||
Non Farm, Non Residential | 489 | 11 | 5,676 | 4,918 | |||||||||||||||||||||
Agriculture | — | — | — | 134 | |||||||||||||||||||||
All Other Commercial | — | — | — | 1,412 | |||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 1,100 | 3,752 | 531 | 4,047 | |||||||||||||||||||||
Home Equity | 40 | — | — | 195 | |||||||||||||||||||||
Junior Liens | 147 | — | — | 390 | |||||||||||||||||||||
Multifamily | — | — | 61 | 433 | |||||||||||||||||||||
All Other Residential | 1 | — | — | 130 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 187 | 370 | 256 | 186 | |||||||||||||||||||||
All Other Consumer | 3 | 17 | — | 974 | |||||||||||||||||||||
TOTAL | $ | 2,207 | $ | 4,150 | $ | 13,102 | $ | 19,779 | |||||||||||||||||
The commercial and industrial loans and non farm, non residential loans included in restructured loans above are also on non-accrual. | |||||||||||||||||||||||||
Covered loans included in loans past due over 90 days still on accrual are $37 thousand at December 31, 2014 and $580 thousand at December 31, 2013. Covered loans included in non-accrual loans are $274 thousand at December 31, 2014 and $1.1 million at December 31, 2013. No covered loans are deemed impaired at December 31, 2014. On December 31, 2013 there were $84 thousand of covered loans deemed impaired that had no allowance for loan loss allocated to them. Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | |||||||||||||||||||||||||
During the years ending December 31, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
January 1, | $ | 12,327 | $ | 4,330 | $ | 644 | $ | 17,301 | |||||||||||||||||
Added | 441 | 1,523 | 347 | 2,311 | |||||||||||||||||||||
Charged Off | (1,069 | ) | (93 | ) | (109 | ) | (1,271 | ) | |||||||||||||||||
Payments | (2,744 | ) | (571 | ) | (268 | ) | (3,583 | ) | |||||||||||||||||
December 31, | $ | 8,955 | $ | 5,189 | $ | 614 | $ | 14,758 | |||||||||||||||||
2013 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
January 1, | $ | 16,474 | $ | 4,107 | $ | 704 | $ | 21,285 | |||||||||||||||||
Added | 1,561 | 841 | 270 | 2,672 | |||||||||||||||||||||
Charged Off | — | (32 | ) | (50 | ) | (82 | ) | ||||||||||||||||||
Payments | (5,708 | ) | (586 | ) | (280 | ) | (6,574 | ) | |||||||||||||||||
December 31, | $ | 12,327 | $ | 4,330 | $ | 644 | $ | 17,301 | |||||||||||||||||
Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modification in 2014 or 2013 resulted in the permanent reduction of the recorded investment in the loan. Modifications involving a reduction of the stated interest rate of the loan were for periods ranging from twelve months to five years. Modifications involving an extension of the maturity date were for periods ranging from twelve months to ten years. | |||||||||||||||||||||||||
During the years ended December 31, 2014 and 2013 the Corporation modified 69 and 32 loans respectively. In 2014 there were 40 of the 69 loans modified that were smaller balance consumer loans and in 2013 there were 30 of the 32 loans modified that were consumer in nature. There were 2 loans that were charged off within 12 months of the modification for the 2013 that were insignificant to the allowance for loans losses and had no impact on the provision for loan losses. There were no loans that were charged off within 12 months of the modification for the 2014. | |||||||||||||||||||||||||
The Corporation has allocated $0.7 million and $2.6 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings at both December 31, 2014 and 2013, respectively. The Corporation has not committed to lend additional amounts as of December 31, 2014 and 2013 to customers with outstanding loans that are classified as troubled debt restructurings. | |||||||||||||||||||||||||
The following table presents the aging of the recorded investment in loans by past due category and class of loans. | |||||||||||||||||||||||||
Greater | |||||||||||||||||||||||||
31-Dec-14 | 30-59 Days | 60-89 Days | than 90 days | Total | |||||||||||||||||||||
(Dollar amounts in thousands) | Past Due | Past Due | Past Due | Past Due | Current | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 574 | $ | 416 | $ | 3,046 | $ | 4,036 | $ | 451,549 | $ | 455,585 | |||||||||||||
Farmland | — | — | — | — | 95,452 | 95,452 | |||||||||||||||||||
Non Farm, Non Residential | 1,528 | 68 | 202 | 1,798 | 232,440 | 234,238 | |||||||||||||||||||
Agriculture | 246 | 18 | 502 | 766 | 149,099 | 149,865 | |||||||||||||||||||
All Other Commercial | 255 | — | — | 255 | 115,014 | 115,269 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 6,011 | 963 | 1,522 | 8,496 | 308,068 | 316,564 | |||||||||||||||||||
Home Equity | 141 | 33 | 310 | 484 | 40,043 | 40,527 | |||||||||||||||||||
Junior Liens | 270 | 83 | 217 | 570 | 31,487 | 32,057 | |||||||||||||||||||
Multifamily | — | — | — | — | 72,310 | 72,310 | |||||||||||||||||||
All Other Residential | 112 | — | 5 | 117 | 8,961 | 9,078 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 3,026 | 557 | 180 | 3,763 | 242,406 | 246,169 | |||||||||||||||||||
All Other Consumer | 114 | 7 | 3 | 124 | 21,587 | 21,711 | |||||||||||||||||||
TOTAL | $ | 12,277 | $ | 2,145 | $ | 5,987 | $ | 20,409 | $ | 1,768,416 | $ | 1,788,825 | |||||||||||||
Greater | |||||||||||||||||||||||||
31-Dec-13 | 30-59 Days | 60-89 Days | than 90 days | Total | |||||||||||||||||||||
(Dollar amounts in thousands) | Past Due | Past Due | Past Due | Past Due | Current | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 1,076 | $ | 266 | $ | 7,900 | $ | 9,242 | $ | 459,076 | $ | 468,318 | |||||||||||||
Farmland | — | — | — | — | 92,602 | 92,602 | |||||||||||||||||||
Non Farm, Non Residential | 362 | — | 2,042 | 2,404 | 239,183 | 241,587 | |||||||||||||||||||
Agriculture | 31 | 32 | — | 63 | 136,388 | 136,451 | |||||||||||||||||||
All Other Commercial | 50 | 217 | 188 | 455 | 108,184 | 108,639 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 5,594 | 1,513 | 1,701 | 8,808 | 324,141 | 332,949 | |||||||||||||||||||
Home Equity | 307 | 7 | 40 | 354 | 41,350 | 41,704 | |||||||||||||||||||
Junior Liens | 392 | 170 | 471 | 1,033 | 32,269 | 33,302 | |||||||||||||||||||
Multifamily | 103 | 19 | 400 | 522 | 66,138 | 66,660 | |||||||||||||||||||
All Other Residential | 88 | — | 1 | 89 | 9,169 | 9,258 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 3,579 | 612 | 227 | 4,418 | 243,146 | 247,564 | |||||||||||||||||||
All Other Consumer | 123 | 22 | 7 | 152 | 21,636 | 21,788 | |||||||||||||||||||
TOTAL | $ | 11,705 | $ | 2,858 | $ | 12,977 | $ | 27,540 | $ | 1,773,282 | $ | 1,800,822 | |||||||||||||
Credit Quality Indicators: | |||||||||||||||||||||||||
The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $100 thousand. Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated. This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings: | |||||||||||||||||||||||||
Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. | |||||||||||||||||||||||||
Substandard: Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral. These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended. They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected. | |||||||||||||||||||||||||
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values. | |||||||||||||||||||||||||
Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard. Loans included in homogeneous pools, such as residential or consumer, may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring. | |||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of December 31, 2014 and 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | |||||||||||||||||||||||||
31-Dec-14 | Special | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | Mention | Substandard | Doubtful | Not Rated | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 393,449 | $ | 29,081 | $ | 24,013 | $ | 2,900 | $ | 4,717 | $ | 454,160 | |||||||||||||
Farmland | 85,772 | 7,618 | 436 | — | 13 | 93,839 | |||||||||||||||||||
Non Farm, Non Residential | 186,346 | 21,765 | 25,613 | 36 | — | 233,760 | |||||||||||||||||||
Agriculture | 138,713 | 7,399 | 1,746 | 177 | 67 | 148,102 | |||||||||||||||||||
All Other Commercial | 101,942 | 4,356 | 7,055 | 33 | 1,275 | 114,661 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 104,854 | 5,929 | 7,733 | 1,035 | 196,008 | 315,559 | |||||||||||||||||||
Home Equity | 12,592 | 375 | 1,374 | 6 | 26,116 | 40,463 | |||||||||||||||||||
Junior Liens | 8,112 | 173 | 561 | 63 | 23,053 | 31,962 | |||||||||||||||||||
Multifamily | 69,080 | 1,801 | 1,249 | — | 3 | 72,133 | |||||||||||||||||||
All Other Residential | 1,799 | — | 28 | — | 7,228 | 9,055 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 11,135 | 402 | 224 | — | 233,302 | 245,063 | |||||||||||||||||||
All Other Consumer | 3,169 | 141 | 87 | 21 | 18,175 | 21,593 | |||||||||||||||||||
TOTAL | $ | 1,116,963 | $ | 79,040 | $ | 70,119 | $ | 4,271 | $ | 509,957 | $ | 1,780,350 | |||||||||||||
31-Dec-13 | Special | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | Mention | Substandard | Doubtful | Not Rated | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 406,650 | $ | 18,968 | $ | 30,986 | $ | 4,069 | $ | 6,426 | $ | 467,099 | |||||||||||||
Farmland | 86,633 | 3,631 | 347 | — | 445 | 91,056 | |||||||||||||||||||
Non Farm, Non Residential | 207,115 | 13,408 | 19,719 | 809 | — | 241,051 | |||||||||||||||||||
Agriculture | 128,137 | 6,482 | 105 | — | 71 | 134,795 | |||||||||||||||||||
All Other Commercial | 93,515 | 2,297 | 10,038 | 44 | 2,243 | 108,137 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 114,074 | 3,834 | 8,498 | 995 | 204,416 | 331,817 | |||||||||||||||||||
Home Equity | 12,883 | 274 | 1,071 | 113 | 27,295 | 41,636 | |||||||||||||||||||
Junior Liens | 8,858 | 60 | 550 | 67 | 23,654 | 33,189 | |||||||||||||||||||
Multifamily | 63,073 | 1,908 | 1,482 | 48 | — | 66,511 | |||||||||||||||||||
All Other Residential | 3,643 | — | 31 | — | 5,550 | 9,224 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 11,447 | 219 | 510 | 9 | 234,210 | 246,395 | |||||||||||||||||||
All Other Consumer | 3,507 | 46 | 79 | 22 | 17,984 | 21,638 | |||||||||||||||||||
TOTAL | $ | 1,139,535 | $ | 51,127 | $ | 73,416 | $ | 6,176 | $ | 522,294 | $ | 1,792,548 | |||||||||||||
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT: | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment, Gross [Abstract] | |||||||||
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT: | ||||||||
Premises and equipment are summarized as follows: | |||||||||
December 31, | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Land | $ | 11,353 | $ | 11,423 | |||||
Building and leasehold improvements | 55,074 | 54,353 | |||||||
Furniture and equipment | 45,602 | 42,546 | |||||||
112,029 | 108,322 | ||||||||
Less accumulated depreciation | (60,227 | ) | (56,873 | ) | |||||
TOTAL | $ | 51,802 | $ | 51,449 | |||||
Aggregate depreciation expense was $4.98 million, $4.29 million and $3.74 million for 2014, 2013 and 2012, respectively. | |||||||||
The Company leases certain branch properties and equipment under operating leases. Rent expense was $0.9 million, $1.0 million, and $1.1 million for 2014, 2013, and 2012. Rent commitments, before considering renewal options that generally are present, were as follows: | |||||||||
2015 | $ | 901 | |||||||
2016 | 720 | ||||||||
2017 | 391 | ||||||||
2018 | 304 | ||||||||
2019 | 204 | ||||||||
Thereafter | 1,188 | ||||||||
$ | 3,708 | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS: | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS: | ||||||||||||||||
The Corporation completed its annual impairment testing of goodwill during the fourth quarter of 2014 and 2013. Management does not believe any amount of goodwill is impaired. | |||||||||||||||||
In July of 2013 First Financial Bank acquired branch locations from Bank of America. The intangible assets purchased included core deposit intangible of $2.2 million. Goodwill of $1.9 million was recorded with the purchase. | |||||||||||||||||
Intangible assets subject to amortization at December 31, 2014 and 2013 are as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
(Dollar amounts in thousands) | Amount | Amortization | Amount | Amortization | |||||||||||||
Customer list intangible | $ | 4,669 | $ | 4,227 | $ | 4,669 | $ | 4,120 | |||||||||
Core deposit intangible | 10,836 | 7,377 | 10,836 | 6,450 | |||||||||||||
$ | 15,505 | $ | 11,604 | $ | 15,505 | $ | 10,570 | ||||||||||
Aggregate amortization expense was $1.03 million, $1.20 million and $1.36 million for 2014, 2013 and 2012, respectively. | |||||||||||||||||
Estimated amortization expense for the next five years is as follows: | |||||||||||||||||
In thousands | |||||||||||||||||
2015 | $ | 820 | |||||||||||||||
2016 | 679 | ||||||||||||||||
2017 | 550 | ||||||||||||||||
2018 | 505 | ||||||||||||||||
2019 | 421 | ||||||||||||||||
DEPOSITS
DEPOSITS: | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Maturities of Time Deposits [Abstract] | ||||
DEPOSITS | DEPOSITS: | |||
Scheduled maturities of time deposits for the next five years are as follows: | ||||
(dollar amounts in thousands) | ||||
2015 | $ | 276,729 | ||
2016 | 81,933 | |||
2017 | 62,879 | |||
2018 | 33,960 | |||
2019 | 16,505 | |||
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS: | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short Term Borrowings Disclosure [Abstract] | |||||||||
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS: | ||||||||
A summary of the carrying value of the Corporation's short-term borrowings at December 31, 2014 and 2013 is presented below: | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Federal funds purchased | $ | 21,192 | $ | 30,679 | |||||
Repurchase-agreements | 26,823 | 28,913 | |||||||
$ | 48,015 | $ | 59,592 | ||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Average amount outstanding | $ | 45,697 | $ | 37,990 | |||||
Maximum amount outstanding at a month end | 96,452 | 83,452 | |||||||
Average interest rate during year | 0.22 | % | 0.2 | % | |||||
Interest rate at year-end | 0.2 | % | 0.12 | % | |||||
Federal funds purchased are generally due in one day and bear interest at market rates. Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance. The Corporation maintains possession of and control over these securities. |
OTHER_BORROWINGS
OTHER BORROWINGS: | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Borrowings Disclosure [Abstract] | |||||||||
OTHER BORROWINGS | OTHER BORROWINGS: | ||||||||
Other borrowings at December 31, 2014 and 2013 are summarized as follows: | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
FHLB advances | $ | 12,886 | $ | 58,288 | |||||
The aggregate minimum annual retirements of other borrowings are as follows: | |||||||||
2015 | $ | 2,297 | |||||||
2016 | 10,223 | ||||||||
2017 | 366 | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
Thereafter | — | ||||||||
$ | 12,886 | ||||||||
The Corporation's subsidiary banks are members of the Federal Home Loan Bank (FHLB) and accordingly are permitted to obtain advances. The advances from the FHLB, aggregating $12.9 million, including $12.4 million at December 31, 2014 contractually due and a purchase premium of $519 thousand, and $58.3 million, including $57.5 million at December 31, 2013 contractually due and a purchase premium of $816 thousand, accrue interest, payable monthly, at annual rates, primarily fixed, varying from 3.1% to 6.6% in 2014 and 3.1% to 6.6% in 2013. The advances are due at various dates through August 2017. FHLB advances are, generally, due in full at maturity. They are secured by eligible securities totaling $83.6 million at December 31, 2014, and $15.9 million at December 31, 2013, and a blanket pledge on real estate loan collateral. Based on this collateral and the Corporation's holdings of FHLB stock, the Corporation is eligible to borrow up to $210.6 million at year end 2014. Certain advances may be prepaid, without penalty, prior to maturity. The FHLB can adjust the interest rate from fixed to variable on certain advances, but those advances may then be prepaid, without penalty. |
INCOME_TAXES
INCOME TAXES: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | INCOME TAXES: | ||||||||||||
Income tax expense is summarized as follows: | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Federal: | |||||||||||||
Currently payable | $ | 9,388 | $ | 10,177 | $ | 12,074 | |||||||
Deferred | 2,120 | 740 | (455 | ) | |||||||||
11,508 | 10,917 | 11,619 | |||||||||||
State: | |||||||||||||
Currently payable | 1,928 | 3,629 | 1,887 | ||||||||||
Deferred | 753 | (779 | ) | 312 | |||||||||
2,681 | 2,850 | 2,199 | |||||||||||
TOTAL | $ | 14,189 | $ | 13,767 | $ | 13,818 | |||||||
The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes is summarized as follows: | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Federal income taxes computed at the statutory rate | $ | 16,786 | $ | 15,856 | $ | 16,320 | |||||||
Add (deduct) tax effect of: | |||||||||||||
Tax exempt income | (4,016 | ) | (3,760 | ) | (3,864 | ) | |||||||
ESOP dividend deduction | (284 | ) | (105 | ) | (258 | ) | |||||||
State tax, net of federal benefit | 1,743 | 1,852 | 1,444 | ||||||||||
Affordable housing credits | (148 | ) | (148 | ) | (148 | ) | |||||||
Other, net | 108 | 72 | 324 | ||||||||||
TOTAL | $ | 14,189 | $ | 13,767 | $ | 13,818 | |||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2014 and 2013, are as follows: | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Other than temporary impairment | $ | 5,417 | $ | 5,820 | |||||||||
Net unrealized losses on retirement plans | 16,068 | 6,815 | |||||||||||
Net unrealized losses on securities available for sale | — | 2,701 | |||||||||||
Loan loss provisions | 7,232 | 7,845 | |||||||||||
Deferred compensation | 6,637 | 7,118 | |||||||||||
Compensated absences | 894 | 857 | |||||||||||
Post-retirement benefits | 2,014 | 2,045 | |||||||||||
Deferred loss on acquisition | 1,377 | 929 | |||||||||||
Other | 2,185 | 2,771 | |||||||||||
GROSS DEFERRED ASSETS | 41,824 | 36,901 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Net unrealized gains on securities available-for-sale | (5,831 | ) | — | ||||||||||
Depreciation | (2,423 | ) | (2,528 | ) | |||||||||
Mortgage servicing rights | (561 | ) | (752 | ) | |||||||||
Pensions | (2,182 | ) | (1,818 | ) | |||||||||
Intangibles | (1,652 | ) | (1,086 | ) | |||||||||
Other | (2,173 | ) | (1,563 | ) | |||||||||
GROSS DEFERRED LIABILITIES | (14,822 | ) | (7,747 | ) | |||||||||
NET DEFERRED TAX ASSETS (LIABILITIES) | $ | 27,002 | $ | 29,154 | |||||||||
Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance at January 1 | $ | 676 | $ | 777 | $ | 862 | |||||||
Additions based on tax positions related to the current year | 72 | 65 | 86 | ||||||||||
Additions based on tax positions related to prior years | — | — | — | ||||||||||
Reductions due to the statute of limitations | (159 | ) | (166 | ) | (171 | ) | |||||||
Balance at December 31 | $ | 589 | $ | 676 | $ | 777 | |||||||
Of this total, $589 represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods. The Corporation does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next 12 months. | |||||||||||||
The total amount of interest and penalties recorded in the income statement for the years ended December 31, 2014, 2013 and 2012 was an expense decrease of $21, $31 and $2, respectively. The amount accrued for interest and penalties at December 31, 2014, 2013 and 2012 was $44, $65 and $96, respectively. | |||||||||||||
The Corporation and its subsidiaries are subject to U.S. federal income tax as well as income tax of the states of Indiana and Illinois. The Corporation is no longer subject to examination by taxing authorities for years before 2011. |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: | ||||||||
The Corporation is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include conditional commitments and commercial letters of credit. The financial instruments involve to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the financial statements. The Corporation's maximum exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to make loans is limited generally by the contractual amount of those instruments. The Corporation follows the same credit policy to make such commitments as is followed for those loans recorded in the consolidated financial statements. | |||||||||
Commitment and contingent liabilities are summarized as follows at December 31: | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Home Equity | $ | 54,388 | $ | 58,447 | |||||
Commercial Operating Lines | 249,354 | 265,910 | |||||||
Other Commitments | 50,850 | 51,113 | |||||||
TOTAL | $ | 354,592 | $ | 375,470 | |||||
Commercial letters of credit | $ | 7,684 | $ | 7,642 | |||||
The majority of commercial operating lines and home equity lines are variable rate, while the majority of other commitments to fund loans are fixed rate. Fixed rate commitments had a range of interest rates from 3.25% to 5.25% in 2014. In 2013 this range of rates was from 3.25% to 6.50%. Since many commitments to make loans expire without being used, these amounts do not necessarily represent future cash commitments. Collateral obtained upon exercise of the commitment is determined using management's credit evaluation of the borrower, and may include accounts receivable, inventory, property, land and other items. The approximate duration of these commitments is generally one year or less. | |||||||||
Derivatives: The Corporation enters into derivative instruments for the benefit of its customers. At the inception of a derivative contract, the Corporation designates the derivative as an instrument with no hedging designation ("standalone derivative"). Changes in the fair value of derivatives are reported currently in earnings as non-interest income. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in non-interest income. | |||||||||
First Financial Bank offers clients the ability on certain transactions to enter into interest rate swaps. Typically, these are pay fixed, receive floating swaps used in conjunction with commercial loans. These derivative contracts do not qualify for hedge accounting. The Bank hedges the exposure to these contracts by entering into offsetting contracts with substantially matching terms. The notional amount of these interest rate swaps was $13.1 and $14.1 million at December 31, 2014 and 2013. The fair value of these contracts combined was zero, as gains offset losses. The gross gain and loss associated with these interest rate swaps was $1.1 million and $1.2 million at December 31, 2014 and 2013. |
RETIREMENT_PLANS
RETIREMENT PLANS: | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS: | ||||||||||||||||
Employees of the Corporation are covered by a retirement program that consists of a defined benefit plan and an employee stock ownership plan (ESOP). Plan assets consist primarily of the Corporation's stock and obligations of U.S. Government agencies. Benefits under the defined benefit plan are actuarially determined based on an employee's service and compensation, as defined, and funded as necessary. This plan was frozen for the majority of employees as of December 31, 2013.Those employees will be eligible to participate in a 401K plan that the Corporation can contribute a discretionary match of the pay contributed by the employee. In addition the ESOP plan will continue in place for all employees. | |||||||||||||||||
Assets in the ESOP are considered in calculating the funding to the defined benefit plan required to provide such benefits. Any shortfall of benefits under the ESOP are to be provided by the defined benefit plan. The ESOP may provide benefits beyond those determined under the defined benefit plan. Contributions to the ESOP are determined by the Corporation's Board of Directors. The Corporation made contributions to the defined benefit plan of $3.24 million, $2.11 million and $3.64 million in 2014, 2013 and 2012. The Corporation contributed $1.25 million, $1.22 million and $1.44 million to the ESOP in 2014, 2013 and 2012. There were contributions of $716 thousand and $629 thousand to the ESOP for employees no longer participating in the defined benefit plan in 2014 and 2013 respectively. | |||||||||||||||||
The Corporation uses a measurement date of December 31. | |||||||||||||||||
Net periodic benefit cost and other amounts recognized in other comprehensive income included the following components: | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Service cost - benefits earned | $ | 2,040 | $ | 2,238 | $ | 4,872 | |||||||||||
Interest cost on projected benefit obligation | 3,756 | 3,383 | 3,667 | ||||||||||||||
Loss due to settlement | 2,676 | — | — | ||||||||||||||
Expected return on plan assets | (3,794 | ) | (3,309 | ) | (3,258 | ) | |||||||||||
Net amortization and deferral | 750 | 2,075 | 2,434 | ||||||||||||||
Net periodic pension cost | 5,428 | 4,387 | 7,715 | ||||||||||||||
Net loss (gain) during the period | 23,111 | (14,697 | ) | 3,842 | |||||||||||||
Adjustment to loss due to settlement | (2,676 | ) | — | — | |||||||||||||
Settlement | (7,148 | ) | — | — | |||||||||||||
Curtailment gain | — | — | (5,700 | ) | |||||||||||||
Amortization of prior service cost | 9 | 16 | (166 | ) | |||||||||||||
Amortization of unrecognized gain (loss) | (759 | ) | (2,091 | ) | (2,270 | ) | |||||||||||
Total recognized in other comprehensive (income) loss | 12,537 | (16,772 | ) | (4,294 | ) | ||||||||||||
Total recognized net periodic pension cost and other comprehensive income | $ | 17,965 | $ | (12,385 | ) | $ | 3,421 | ||||||||||
The estimated net loss and prior service costs (credits) for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $2.1 million and $1 thousand. | |||||||||||||||||
The information below sets forth the change in projected benefit obligation, reconciliation of plan assets, and the funded status of the Corporation's retirement program. Actuarial present value of benefits is based on service to date and present pay levels. | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at January 1 | $ | 81,469 | $ | 86,807 | |||||||||||||
Service cost | 2,040 | 2,238 | |||||||||||||||
Interest cost | 3,756 | 3,383 | |||||||||||||||
Actuarial (gain) loss | 22,274 | (7,098 | ) | ||||||||||||||
Settlement | (7,148 | ) | — | ||||||||||||||
Benefits paid | (4,256 | ) | (3,861 | ) | |||||||||||||
Benefit obligation at December 31 | 98,135 | 81,469 | |||||||||||||||
Reconciliation of fair value of plan assets: | |||||||||||||||||
Fair value of plan assets at January 1 | 67,233 | 57,491 | |||||||||||||||
Actual return on plan assets | 2,957 | 10,909 | |||||||||||||||
Employer contributions | 3,779 | 2,694 | |||||||||||||||
Settlement | (7,148 | ) | — | ||||||||||||||
Benefits paid | (4,256 | ) | (3,861 | ) | |||||||||||||
Fair value of plan assets at December 31 | 62,565 | 67,233 | |||||||||||||||
Funded status at December 31 (plan assets less benefit obligation) | $ | (35,570 | ) | $ | (14,236 | ) | |||||||||||
Amounts recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of: | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||
Net loss (gain) | $ | 23,111 | $ | (14,697 | ) | ||||||||||||
Prior service cost (credit) | 9 | 16 | |||||||||||||||
$ | 23,120 | $ | (14,681 | ) | |||||||||||||
The accumulated benefit obligation for the defined benefit pension plan was $91.5 million and $75.7 million at year-end | |||||||||||||||||
2014 and 2013. | |||||||||||||||||
Principal assumptions used to determine pension benefit obligation at year end: | 2014 | 2013 | |||||||||||||||
Discount rate | 3.95 | % | 4.95 | % | |||||||||||||
Rate of increase in compensation levels | 3 | 3.5 | |||||||||||||||
Principal assumptions used to determine net periodic pension cost: | 2014 | 2013 | |||||||||||||||
Discount rate | 4.95 | % | 4.05 | % | |||||||||||||
Rate of increase in compensation levels | 3.5 | 3.5 | |||||||||||||||
Expected long-term rate of return on plan assets | 6 | 6 | |||||||||||||||
The expected long-term rate of return was estimated using market benchmarks for equities and bonds applied to the plan's target asset allocation. Management estimated the rate by which plan assets would perform based on historical experience as adjusted for changes in asset allocations and expectations for future return on equities as compared to past periods. | |||||||||||||||||
Plan Assets — The Corporation's pension plan weighted-average asset allocation for the years 2014 and 2013 by asset category are as follows: | |||||||||||||||||
Pension Plan | ESOP | Pension | ESOP | ||||||||||||||
Target Allocation | Target Allocation | Pecentage of Plan | Pecentage of Plan | ||||||||||||||
Assets at December 31, | Assets at December 31, | ||||||||||||||||
ASSET CATEGORY | 2014 | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Equity securities | 40-65% | 95-99% | 59 | % | 64 | % | 99 | % | 99 | % | |||||||
Debt securities | 35-60% | 0-0% | 38 | % | 34 | % | — | % | — | % | |||||||
Other | 0-10% | 0-5% | 3 | % | 2 | % | 1 | % | 1 | % | |||||||
TOTAL | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Fair Value of Plan Assets — Fair value is the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||
The Corporation used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: | |||||||||||||||||
Equity, Debt, Investment Funds and Other Securities — The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). | |||||||||||||||||
The fair value of the plan assets at December 31, 2014 and 2013, by asset category, is as follows: | |||||||||||||||||
Fair Value Measurments at | |||||||||||||||||
December 31, 2014 Using: | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Observable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Dollar amounts in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Plan assets | |||||||||||||||||
Equity securities | $ | 44,732 | $ | 44,732 | $ | — | $ | — | |||||||||
Debt securities | 15,245 | — | 15,245 | — | |||||||||||||
Investment Funds | 2,588 | 2,588 | — | — | |||||||||||||
Total plan assets | $ | 62,565 | $ | 47,320 | $ | 15,245 | $ | — | |||||||||
Fair Value Measurments at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Observable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Dollar amounts in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Plan assets | |||||||||||||||||
Equity securities | $ | 53,112 | $ | 53,112 | $ | — | $ | — | |||||||||
Debt securities | 12,015 | — | 12,015 | — | |||||||||||||
Investment Funds | 2,106 | 2,106 | — | — | |||||||||||||
Total plan assets | $ | 67,233 | $ | 55,218 | $ | 12,015 | $ | — | |||||||||
The investment objective for the retirement program is to maximize total return without exposure to undue risk. Asset allocation favors equities. This target includes the Corporation's ESOP, which is fully invested in corporate stock. Other investment allocations include fixed income securities and cash. | |||||||||||||||||
The plan is prohibited from investing in the following: private placement equity and debt transactions; letter stock and uncovered options; short-sale margin transactions and other specialized investment activity; and fixed income or interest rate futures. All other investments not prohibited by the plan are permitted. | |||||||||||||||||
Equity securities in the defined benefit plan include First Financial Corporation common stock in the amount of $22.5 million (36 percent of total plan assets) and $31.4 million (47 percent of total plan assets) at December 31, 2014 and 2013, respectively. In addition the ESOP for non plan participants holds an estimated $1.4 million and $671 thousand of First Financial Corporation stock at December 31, 2014 and December 31, 2013 respectively. Other equity securities are predominantly stocks in large cap U.S. companies. | |||||||||||||||||
Contributions — The Corporation expects to contribute $1.8 million to its pension plan and $1.1 million to its ESOP in 2015. | |||||||||||||||||
Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: | |||||||||||||||||
PENSION BENEFITS | |||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||
2015 | $ | 4,730 | |||||||||||||||
2016 | 4,891 | ||||||||||||||||
2017 | 5,022 | ||||||||||||||||
2018 | 5,143 | ||||||||||||||||
2019 | 5,403 | ||||||||||||||||
2020-2024 | 29,658 | ||||||||||||||||
Supplemental Executive Retirement Plan — The Corporation has established a Supplemental Executive Retirement Plan (SERP) for certain executive officers. The provisions of the SERP allow the Plan's participants who are also participants in the Corporation's defined benefit pension plan to receive supplemental retirement benefits to help recompense for benefits lost due to the imposition of IRS limitations on benefits under the Corporation's tax qualified defined benefit pension plan. Expenses related to the plan were $268 thousand in 2014 and $341 thousand in 2013. The plan is unfunded and has a measurement date of December 31. The amounts recognized in other comprehensive income in the current year are as follows: | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Net loss (gain) during the period | $ | 932 | $ | (333 | ) | $ | 442 | ||||||||||
Amortization of prior service cost | — | — | — | ||||||||||||||
Amortization of unrecognized gain (loss) | (7 | ) | (68 | ) | (79 | ) | |||||||||||
Total recognized in other comprehensive (income) loss | $ | 925 | $ | (401 | ) | $ | 363 | ||||||||||
The Corporation has $3.6 million and $2.4 million recognized in the balance sheet as a liability at December 31, 2014 and 2013. Amounts in accumulated other comprehensive income consist of $1.2 million net loss at December 31, 2014 and $316 thousand net loss at December 31, 2013. The estimated loss for the SERP that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $88 thousand. | |||||||||||||||||
Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: | |||||||||||||||||
(Dollar amounts on thousands) | |||||||||||||||||
2015 | $ | — | |||||||||||||||
2016 | 293 | ||||||||||||||||
2017 | 289 | ||||||||||||||||
2018 | 284 | ||||||||||||||||
2019 | 280 | ||||||||||||||||
2020-2024 | 1,316 | ||||||||||||||||
Post-retirement medical benefits — | |||||||||||||||||
The Corporation also provides medical benefits to certain employees subsequent to their retirement. The Corporation uses a measurement date of December 31. Accrued post-retirement benefits as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at January 1 | $ | 4,088 | $ | 4,395 | |||||||||||||
Service cost | 53 | 68 | |||||||||||||||
Interest cost | 175 | 173 | |||||||||||||||
Plan participants' contributions | 39 | 37 | |||||||||||||||
Actuarial (gain) loss | 456 | (338 | ) | ||||||||||||||
Benefits paid | (252 | ) | (247 | ) | |||||||||||||
Benefit obligation at December 31 | $ | 4,559 | $ | 4,088 | |||||||||||||
Funded status at December 31 | $ | 4,559 | $ | 4,088 | |||||||||||||
Amounts recognized in accumulated other comprehensive income consist of a net loss of $521 thousand at December 31, 2014 and $63 thousand net loss at December 31, 2013. The post-retirement benefits paid in 2014 and 2013 of $252 thousand and $247 thousand, respectively, were fully funded by company and participant contributions. | |||||||||||||||||
There is no estimated transition obligation for the post-retirement benefit plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year. | |||||||||||||||||
Weighted average assumptions at December 31: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 3.95 | % | 4.95 | % | |||||||||||||
Initial weighted health care cost trend rate | 7.5 | 7.5 | |||||||||||||||
Ultimate health care cost trend rate | 5 | 5 | |||||||||||||||
Year that the rate is assumed to stabilize and remain unchanged | 2015 | 2016 | |||||||||||||||
Post-retirement health benefit expense included the following components: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 53 | $ | 68 | $ | 60 | |||||||||||
Interest cost | 175 | 173 | 173 | ||||||||||||||
Amortization of transition obligation | — | 60 | 60 | ||||||||||||||
Recognized actuarial loss | — | — | — | ||||||||||||||
Net periodic benefit cost | 228 | 301 | 293 | ||||||||||||||
Net loss (gain) during the period | 456 | (338 | ) | 311 | |||||||||||||
Amortization of prior service cost | — | (59 | ) | (60 | ) | ||||||||||||
Total recognized in other comprehensive income (loss) | 456 | (397 | ) | 251 | |||||||||||||
Total recognized net periodic benefit cost and other comprehensive income | $ | 684 | $ | (96 | ) | $ | 544 | ||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in the assumed health care cost trend rates would have the following effects: | |||||||||||||||||
1% Point | 1% Point | ||||||||||||||||
(Dollar amounts in thousands) | Increase | Decrease | |||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | 1 | |||||||||||||
Effect on post-retirement benefit obligation | 39 | 35 | |||||||||||||||
Contributions — The Corporation expects to contribute $247 thousand to its other post-retirement benefit plan in 2015. | |||||||||||||||||
Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: | |||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||
2015 | $ | 247 | |||||||||||||||
2016 | 262 | ||||||||||||||||
2017 | 266 | ||||||||||||||||
2018 | 266 | ||||||||||||||||
2019 | 267 | ||||||||||||||||
2020-2024 | 1,378 | ||||||||||||||||
The Corporation's post retirement benefit plans described above were all impacted by the introduction of new mortality tables that were introduced in 2014. Each plan experienced an increase in benefit obligation during 2014 of which approximately $8.5 million is attributable to the adoption of these new tables. |
STOCK_BASED_COMPENSATION
STOCK BASED COMPENSATION: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION: | ||||||||||||
On February 5, 2011, the Corporation's Board of Directors adopted and approved the First Financial Corporation 2011 Omnibus Equity Incentive Plan (the "2011 Stock Incentive Plan") effective upon the approval of the Plan by the Company's shareholders, which occurred on April 20, 2011 at the Corporation’s annual meeting of shareholders. The 2011 Stock Incentive Plan provides for the grant of non qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive awards. An aggregate of 700,000 shares of common stock are reserved for issuance under the 2011 Stock Incentive Plan. Shares issuable under the 2011 Stock Incentive Plan may be authorized and unissued shares of common stock or treasury shares. | |||||||||||||
During the first quarter of 2014 and 2013, the Compensation Committee of the Board of Directors of the Company granted restricted stock awards to certain executive officers pursuant to the Corporation's annual performance-based stock incentive bonus plan. Compensation expense is recognized over the vesting period of the awards based on the fair value of the stock at the grant date. The value of the awards was determined by dividing the award amount by the closing price of a share of Company common stock on the grant dates. The restricted stock awards vest as follows — 33% on the first anniversary, 33% on the second anniversary and the remaining 34% on the third anniversary of the earned date. The Corporation has the right retain shares to satisfy any withholding tax obligation. A total of 91,881 shares of restricted common stock of the Company were granted under the 2011 Stock Incentive Plan. A total of 608,119 remain to be granted under this plan. | |||||||||||||
Restricted Stock | |||||||||||||
Restricted stock awards require certain service-based or performance requirements and have a vesting period of 3 years. Compensation expense is recognized over the vesting period of the award based on the fair value of the stock at the date of issue. Compensation related to the plan was $1.02 million, $733 thousand and $487 thousand in 2014, 2013 and 2012, respectively. | |||||||||||||
2014 | 2013 | ||||||||||||
Number | Weighted Average | Number | Weighted Average | ||||||||||
Grant Date | Grant Date | ||||||||||||
(shares in thousands) | Outstanding | Fair Value | Outstanding | Fair Value | |||||||||
Nonvested balance at January 1, | 30,496 | 33.49 | 26,431 | 36.88 | |||||||||
Granted during the year | 22,019 | 32.17 | 30,219 | 30.55 | |||||||||
Vested during the year | (30,431 | ) | 33.52 | (21,439 | ) | 34.21 | |||||||
Forfeited during the year | — | — | (4,715 | ) | 36.88 | ||||||||
Nonvested balance at December 31, | 22,084 | 31.63 | 30,496 | 33.49 | |||||||||
As of December 31, 2014 and 2013, there was $698 thousand and $1.2 million, respectively of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of the shares vested during the years ended December 31, 2014 and 2013 was $1.1 million and $784 thousand, respectively. |
OTHER_COMPREHENSIVE_INCOME_LOS
OTHER COMPREHENSIVE INCOME (LOSS): | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||||||
The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the years ended December 31, 2014 and 2013. | |||||||||||||
Unrealized | |||||||||||||
gains and | 2014 | ||||||||||||
Losses on | Retirement | ||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | ||||||||||
Beginning balance, January 1 | $ | (3,635 | ) | $ | (10,334 | ) | $ | (13,969 | ) | ||||
Change in other comprehensive income before reclassification | 13,911 | (14,934 | ) | (1,023 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | 2 | 461 | 463 | ||||||||||
Net current period other comprehensive income (loss) | 13,913 | (14,473 | ) | (560 | ) | ||||||||
Ending balance, December 31 | $ | 10,278 | $ | (24,807 | ) | $ | (14,529 | ) | |||||
Unrealized | |||||||||||||
gains and | 2013 | ||||||||||||
Losses on | Retirement | ||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | ||||||||||
Beginning balance, January 1 | $ | 13,431 | $ | (20,903 | ) | $ | (7,472 | ) | |||||
Change in other comprehensive income before reclassification | (16,812 | ) | — | (16,812 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | (254 | ) | 10,569 | 10,315 | |||||||||
Net current period other comprehensive income (loss) | (17,066 | ) | 10,569 | (6,497 | ) | ||||||||
Ending balance, December 31 | $ | (3,635 | ) | $ | (10,334 | ) | $ | (13,969 | ) | ||||
Balance | Current | Balance | |||||||||||
at | Period | at | |||||||||||
(Dollar amounts in thousands) | 1/1/14 | Change | 12/31/14 | ||||||||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
without other than temporary impairment | $ | (2,499 | ) | $ | 9,663 | $ | 7,164 | ||||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
with other than temporary impairment | (1,136 | ) | 4,250 | 3,114 | |||||||||
Total unrealized gain (loss) on securities available-for-sale | $ | (3,635 | ) | $ | 13,913 | $ | 10,278 | ||||||
Unrealized loss on retirement plans | (10,334 | ) | (14,473 | ) | (24,807 | ) | |||||||
TOTAL | $ | (13,969 | ) | $ | (560 | ) | $ | (14,529 | ) | ||||
Balance | Current | Balance | |||||||||||
at | Period | at | |||||||||||
(Dollar amounts in thousands) | 1/1/13 | Change | 12/31/13 | ||||||||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
without other than temporary impairment | $ | 17,044 | $ | (19,543 | ) | $ | (2,499 | ) | |||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
with other than temporary impairment | (3,613 | ) | 2,477 | (1,136 | ) | ||||||||
Total unrealized gain (loss) on securities available-for-sale | $ | 13,431 | $ | (17,066 | ) | $ | (3,635 | ) | |||||
Unrealized loss on retirement plans | (20,903 | ) | 10,569 | (10,334 | ) | ||||||||
TOTAL | $ | (7,472 | ) | $ | (6,497 | ) | $ | (13,969 | ) | ||||
Balance as of December 31, 2014 | |||||||||||||
Details about accumulated | Amount reclassified from | Affected line item in | |||||||||||
other comprehensive | accumulated other | the statement where | |||||||||||
income components | comprehensive income | net income is presented | |||||||||||
(in thousands) | |||||||||||||
Unrealized gains and losses | $ | (3 | ) | Net securities gains (losses) | |||||||||
on available-for-sale | 1 | Income tax expense | |||||||||||
securities | $ | (2 | ) | Net of tax | |||||||||
Amortization of | $ | (756 | ) | (a) | |||||||||
retirement plan items | 295 | Income tax expense | |||||||||||
$ | (461 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (463 | ) | Net of tax | |||||||||
(a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). | |||||||||||||
Balance as of December 31, 2013 | |||||||||||||
Details about accumulated | Amount reclassified from | Affected line item in | |||||||||||
other comprehensive | accumulated other | the statement where | |||||||||||
income components | comprehensive income | net income is presented | |||||||||||
(in thousands) | |||||||||||||
Unrealized gains and losses | $ | 423 | Net securities gains (losses) | ||||||||||
on available-for-sale | (169 | ) | Income tax expense | ||||||||||
securities | $ | 254 | Net of tax | ||||||||||
Amortization of | $ | (17,615 | ) | (a) | |||||||||
retirement plan items | 7,046 | Income tax expense | |||||||||||
$ | (10,569 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (10,315 | ) | Net of tax | |||||||||
(a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). | |||||||||||||
Balance at December 31, 2012 | |||||||||||||
Details about accumulated | Amount reclassified from | Affected line item in | |||||||||||
other comprehensive | accumulated other | the statement where | |||||||||||
income components | comprehensive income | net income is presented | |||||||||||
(in thousands) | |||||||||||||
Unrealized gains and losses | $ | 886 | Net securities gains (losses) | ||||||||||
on available-for-sale | (354 | ) | Income tax expense | ||||||||||
securities | $ | 532 | Net of tax | ||||||||||
Amortization of | $ | (3,885 | ) | (a) | |||||||||
retirement plan items | 1,554 | Income tax expense | |||||||||||
$ | (2,331 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (1,799 | ) | Net of tax | |||||||||
(a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). |
REGULATORY_MATTERS
REGULATORY MATTERS: | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||
REGULATORY MATTERS | REGULATORY MATTERS: | ||||||||||||||||||||
The Corporation and its bank affiliates are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Corporation's financial statements. | |||||||||||||||||||||
Further, the Corporation's primary source of funds to pay dividends to shareholders is dividends from its subsidiary banks and compliance with these capital requirements can affect the ability of the Corporation and its banking affiliates to pay dividends. At December 31, 2014, approximately $51.0 million of undistributed earnings of the subsidiary banks, included in consolidated retained earnings, were available for distribution to the Corporation without regulatory approval. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and Banks must meet specific capital guidelines that involve quantitative measures of the Corporation's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation's and Banks' capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Corporation and Banks to maintain minimum amounts and ratios of Total and Tier I Capital to risk-weighted assets, and of Tier I Capital to average assets. Management believes, as of December 31, 2014 and 2013, that the Corporation meets all capital adequacy requirements to which it is subject. | |||||||||||||||||||||
As of December 31, 2014, the most recent notification from the respective regulatory agencies categorized the subsidiary banks as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the banks must maintain minimum total risk-based, Tier I risk-based and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the banks' category. | |||||||||||||||||||||
The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2014 and 2013. | |||||||||||||||||||||
To Be Well Capitalized | |||||||||||||||||||||
For Capital | Under Prompt Corrective | ||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | |||||||||||||||||||
(Dollar amounts in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total risk-based capital | |||||||||||||||||||||
Corporation – 2014 | $ | 386,622 | 17.86 | % | $ | 173,211 | 8 | % | N/A | N/A | |||||||||||
Corporation – 2013 | $ | 375,601 | 17.13 | % | $ | 175,372 | 8 | % | N/A | N/A | |||||||||||
First Financial Bank – 2014 | 358,631 | 17.13 | % | 167,472 | 8 | % | 209,340 | 10 | % | ||||||||||||
First Financial Bank – 2013 | 349,968 | 16.49 | % | 169,745 | 8 | % | 212,181 | 10 | % | ||||||||||||
Tier I risk-based capital | |||||||||||||||||||||
Corporation – 2014 | $ | 367,783 | 16.99 | % | $ | 86,605 | 4 | % | N/A | N/A | |||||||||||
Corporation – 2013 | $ | 355,533 | 16.22 | % | $ | 87,686 | 4 | % | N/A | N/A | |||||||||||
First Financial Bank – 2014 | 342,452 | 16.36 | % | 83,736 | 4 | % | 125,604 | 6 | % | ||||||||||||
First Financial Bank – 2013 | 332,644 | 15.68 | % | 84,872 | 4 | % | 127,309 | 6 | % | ||||||||||||
Tier I leverage capital | |||||||||||||||||||||
Corporation – 2014 | $ | 367,783 | 12.33 | % | $ | 119,356 | 4 | % | N/A | N/A | |||||||||||
Corporation – 2013 | $ | 355,533 | 11.69 | % | $ | 121,622 | 4 | % | N/A | N/A | |||||||||||
First Financial Bank – 2014 | 342,452 | 11.83 | % | 115,770 | 4 | % | 144,712 | 5 | % | ||||||||||||
First Financial Bank – 2013 | 332,644 | 11.4 | % | 116,711 | 4 | % | 145,889 | 5 | % | ||||||||||||
PARENT_COMPANY_CONDENSED_FINAN
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS | PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: | ||||||||||||
The parent company’s condensed balance sheets as of December 31, 2014 and 2013, and the related condensed statements of income and comprehensive income and cash flows for each of the three years in the period ended December 31, 2014, are as follows: | |||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
ASSETS | |||||||||||||
Cash deposits in affiliated banks | $ | 3,639 | $ | 4,654 | |||||||||
Investments in subsidiaries | 396,486 | 388,937 | |||||||||||
Land and headquarters building, net | 5,791 | 4,688 | |||||||||||
Other | 103 | 258 | |||||||||||
Total Assets | $ | 406,019 | $ | 398,537 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Liabilities | |||||||||||||
Dividends payable | $ | 6,341 | $ | 6,405 | |||||||||
Other liabilities | 5,464 | 5,937 | |||||||||||
TOTAL LIABILITIES | 11,805 | 12,342 | |||||||||||
Shareholders' Equity | 394,214 | 386,195 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 406,019 | $ | 398,537 | |||||||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Dividends from subsidiaries | $ | 26,530 | $ | 7,130 | $ | 16,347 | |||||||
Other income | 724 | 1,144 | 1,149 | ||||||||||
Interest on borrowings | — | — | (225 | ) | |||||||||
Other operating expenses | (2,747 | ) | (3,113 | ) | (3,383 | ) | |||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 24,507 | 5,161 | 13,888 | ||||||||||
Income tax benefit | 1,156 | 988 | 1,267 | ||||||||||
Income before equity in undistributed earnings of subsidiaries | 25,663 | 6,149 | 15,155 | ||||||||||
Equity in undistributed earnings of subsidiaries | 8,109 | 25,385 | 17,657 | ||||||||||
Net income | $ | 33,772 | $ | 31,534 | $ | 32,812 | |||||||
Comprehensive income | $ | 33,212 | $ | 25,037 | $ | 35,834 | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net Income | $ | 33,772 | $ | 31,534 | $ | 32,812 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 196 | 173 | 172 | ||||||||||
Equity in undistributed earnings | (8,109 | ) | (25,385 | ) | (17,657 | ) | |||||||
Contribution of shares to ESOP | 1,253 | 1,218 | 1,439 | ||||||||||
Securities impairment loss recognized in earnings | — | — | 11 | ||||||||||
Securities (gains) losses | — | (420 | ) | (435 | ) | ||||||||
Restricted stock compensation | 1,072 | 611 | 488 | ||||||||||
Increase (decrease) in other liabilities | (473 | ) | (512 | ) | 610 | ||||||||
(Increase) decrease in other assets | 155 | 485 | 188 | ||||||||||
NET CASH FROM OPERATING ACTIVITIES | 27,866 | 7,704 | 17,628 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Sales of securities available-for-sale | — | 740 | 1,700 | ||||||||||
Investment in First Financial Bank Risk Management | — | — | (250 | ) | |||||||||
Purchase of furniture and fixtures | (1,299 | ) | (5 | ) | (24 | ) | |||||||
NET CASH FROM INVESTING ACTIVITIES | (1,299 | ) | 735 | 1,426 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Principal payments on borrowings | — | — | (6,196 | ) | |||||||||
Purchase of treasury stock | (14,633 | ) | — | — | |||||||||
Dividends paid | (12,949 | ) | (12,766 | ) | (12,425 | ) | |||||||
NET CASH FROM FINANCING ACTIVITES | (27,582 | ) | (12,766 | ) | (18,621 | ) | |||||||
NET (DECREASE) INCREASE IN CASH | (1,015 | ) | (4,327 | ) | 433 | ||||||||
CASH, BEGINNING OF YEAR | 4,654 | 8,981 | 8,548 | ||||||||||
CASH, END OF YEAR | $ | 3,639 | $ | 4,654 | $ | 8,981 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||||
Cash paid during the year for: | |||||||||||||
Interest | $ | — | $ | — | $ | 225 | |||||||
Income taxes | $ | 9,354 | $ | 13,822 | $ | 12,638 | |||||||
SELECTED_QUARTERLY_DATA_UNAUDI
SELECTED QUARTERLY DATA (UNAUDITED): | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||
SELECTED QUARTERLY DATA (UNAUDITED) | SELECTED QUARTERLY DATA (UNAUDITED): | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Interest | Interest | Net Interest | Provision | Net Income | Net Income | |||||||||||||||||||
Income | Expense | Income | For Loan | Per Share | |||||||||||||||||||||
Losses | |||||||||||||||||||||||||
31-Mar | $ | 28,824 | $ | 1,682 | $ | 27,142 | $ | 1,960 | $ | 7,831 | $ | 0.59 | |||||||||||||
30-Jun | $ | 28,115 | $ | 1,509 | $ | 26,606 | $ | (356 | ) | $ | 8,488 | $ | 0.63 | ||||||||||||
30-Sep | $ | 28,376 | $ | 1,231 | $ | 27,145 | $ | 1,506 | $ | 8,272 | $ | 0.62 | |||||||||||||
31-Dec | $ | 28,043 | $ | 1,104 | $ | 26,939 | $ | 1,962 | $ | 9,181 | $ | 0.71 | |||||||||||||
2013 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Interest | Interest | Net | Provision | Net Income | Net Income | |||||||||||||||||||
Income | Expense | Interest | For Loan | Per Share | |||||||||||||||||||||
Income | Losses | ||||||||||||||||||||||||
31-Mar | $ | 28,942 | $ | 2,769 | $ | 26,173 | $ | 3,021 | $ | 7,693 | $ | 0.58 | |||||||||||||
30-Jun | $ | 28,305 | $ | 2,567 | $ | 25,738 | $ | 2,960 | $ | 6,446 | $ | 0.48 | |||||||||||||
30-Sep | $ | 29,719 | $ | 1,921 | $ | 27,798 | $ | 495 | $ | 8,472 | $ | 0.64 | |||||||||||||
31-Dec | $ | 29,255 | $ | 1,704 | $ | 27,551 | $ | 1,384 | $ | 8,923 | $ | 0.67 | |||||||||||||
BUSINESS_AND_SIGNIFICANT_ACCOU1
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Share Based Compensation [Policy Text Block] | Stock based compensation: Compensation cost is recognized for restricted stock awards and units issued to employees based on the fair value of these awards at the date of grant. Market price of the Corporation’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the requisite service period. |
Organization | Organization: The consolidated financial statements of First Financial Corporation and its subsidiaries (the Corporation) include the parent company and its wholly-owned subsidiaries, First Financial Bank, N.A. headquartered in Vigo County, Indiana, The Morris Plan Company of Terre Haute (Morris Plan), Forrest Sherer Inc., a full-line insurance agency headquartered in Terre Haute, Indiana, and FFB Risk Management Co., Inc., a captive insurance subsidiary headquartered in Las Vegas, Nevada. Inter-company transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. |
Cash Flows | Cash Flows: Cash and cash equivalents include cash and demand deposits with other financial institutions. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. |
Securities | Securities: The Corporation classifies all securities as "available for sale." Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value with unrealized holdings gains and losses, net of taxes, reported in other comprehensive income within shareholders' equity. |
Interest income includes amortization of purchase premium or discount. Premiums and discounts are amortized on the level yield method without anticipating prepayments. Mortgage-backed securities are amortized over the expected life. Realized gains and losses on sales are based on the amortized cost of the security sold. Management evaluates securities for other-than temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. | |
Loans | Loans: Loans that management has the intent and ability to hold for the foreseeable future until maturity or pay-off are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and allowance for loan losses. Loans held for sale are reported at the lower of cost or market, on an aggregate basis. Interest income is accrued on the unpaid principal balance and includes amortization of net deferred loan fees and costs over the loan term without anticipating prepayments. The recorded investment in loans includes accrued interest receivable and net deferred loan fees and costs. Interest income is not reported when full loan repayment is in doubt, typically when the loan is impaired or payments are significantly past due. Past-due status is based on the contractual terms of the loan. |
All interest accrued but not received for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. In all cases, loans are placed on non-accrual or charged-off if collection of principal or interest is considered doubtful. The above policies are consistent for all segments of loans. | |
Certain Purchased Loans | Certain Purchased Loans: The Corporation purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased loans are accounted for individually. The Corporation estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of amount paid are recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan's contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). |
Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a provision for loan loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | |
Concentration of Credit Risk | Concentration of Credit Risk: Most of the Corporation's business activity is with customers located within west central Indiana and east central Illinois. Therefore, the Corporation's exposure to credit risk is significantly affected by changes in the economy of this area. A major economic downturn in this area would have a negative effect on the Corporation's loan portfolio. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management's judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. |
A loan is impaired when full payment under the loan terms is not expected. Loans for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Impairment is evaluated in total for smaller-balance loans of similar nature such as residential mortgages and consumer loans, and on an individual basis for other loans. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows, using the loan's existing rate, or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and, accordingly, they are not separately identified for impairment disclosures. | |
The general component covers non-classified loans as well as non-impaired classified loans and is based on historical loss experience adjusted for current factors. The historical loss experience is based on the actual loss history experienced over the most recent four years, using a weighted average which places more emphasis on the more current years within the loss history window. This actual loss experience is supplemented with other current factors based on the risks present for each portfolio segment. These current factors include consideration of the following: levels of and trends in delinquent, classified, and impaired loans; levels of and trends in charge-offs and recoveries; national and local economic trends and conditions; changes in lending policies and procedures; trends in volume and terms of loans; experience, ability, and depth of lending management and other relevant staff; credit concentrations; value of underlying collateral for collateral dependent loans; and other external factors such as competition and legal and regulatory requirements. The following portfolio segments have been identified: commercial loans, residential loans and consumer loans. A characteristic of the commercial loan segment is that the loans are for business purchases. A characteristic of the residential loan segment is that the loans are secured by residential properties. A characteristic of the consumer loan segment is that the loans are for automobiles and other consumer purchases. Commercial loans are generally well secured, which mitigates the risk of loss and has contributed to the low historical loss rate. However, concentrations in commercial real estate, along with the potential impact of rising interest rates to commercial real estate, raises the risk of loss on commercial loans. For these reasons, commercial loans have the highest adjustment to the historical loss rate. Continued weakness in local economic conditions along with declining auto values resulted in consumer loans having the next highest level of adjustment to the historical loss rate. The residential loan portfolio segment had the lowest level of adjustment to the historical loss rate. | |
Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan's effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. | |
FDIC Indemnification Asset | FDIC Indemnification Asset: The FDIC indemnification asset results from the loss share agreements in the 2009 FDIC-assisted transaction. The asset is measured separately from the related covered assets as they are not contractually embedded in the assets and are not transferable with the assets should the Corporation choose to dispose of them. It represents the acquisition date fair value of expected reimbursements from the FDIC which was determined to be $12.1 million. Pursuant to the terms of the loss sharing agreement, covered loans and other real estate are subject to a stated loss threshold whereby the FDIC will reimburse the Corporation for up to 95% of losses incurred. These expected reimbursements do not include reimbursable amounts related to future covered expenditures. These cash flows are discounted to reflect a metric of uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. This asset decreases when losses are realized and claims are paid by the FDIC or when customers repay their loans in full and expected losses do not occur. This asset also increases when estimated future losses increase. When estimated future losses increase, the Corporation records a provision for loan losses and increases its allowance for loan losses accordingly. The related increase or decrease in the FDIC indemnification asset is recorded as an (increase) or offset to the provision for loan losses. During 2014, 2013 and 2012, the provision for loan losses was (increased)/ offset by ($687 thousand), ($1.4 million )and $2.2 million related to the changes in the FDIC indemnification asset. |
Foreclosed Assets | Foreclosed Assets: Assets acquired through or instead of loan foreclosures are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines, a valuation allowance is recorded through expense. Costs after acquisition are expensed. |
Premises and Equipment | Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed over the useful lives of the assets, which range from 3 to 5 years for furniture and equipment and 33 to 39 years for buildings and leasehold improvements. |
Restricted Stock | Restricted Stock: Restricted stock includes Federal Home Loan Bank (FHLB) of Indianapolis and Chicago and Federal Reserve stock. This restricted stock is carried at cost and periodically evaluated for impairment. Because this stock is viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Servicing Rights | Servicing Rights: Servicing rights are recognized separately when they are acquired through sales of loans. When mortgage loans are sold, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on third-party valuations that incorporate assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds and default rates and losses. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. |
Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Corporation later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with Other Service Fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. | |
Servicing fee income, which is included in Other Service Fees on the income statement, is for fees earned for servicing loans. | |
The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |
Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Life Insurance Corporate Or Bank Owned Policy [Text Block] | Bank-Owned Life Insurance: The Corporation has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at its cash surrender value, or the amount that can be realized. Income on the investments in life insurance is included in other interest income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009 represents the future economic benefits arising from other assets acquired that are not individually identified and separately recognized. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Corporation has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. |
Other intangible assets consist of core deposit and acquired customer list intangible assets arising from the whole bank, insurance agency and branch acquisitions. They are initially measured at fair value and then are amortized on an accelerated basis over their estimated useful lives, which are 10 and 12 years, respectively. | |
Long-Term Assets | Long-Term Assets: Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Benefit Plans | Benefit Plans: Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. The amount contributed is determined by a formula as decided by the Board of Directors. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan: Shares of treasury stock are issued to the ESOP and compensation expense is recognized based upon the total market price of shares when contributed. |
Deferred Compensation Plan | Deferred Compensation Plan: A deferred compensation plan covers all directors. Under the plan, the Corporation pays each director, or their beneficiary, the amount of fees deferred plus interest over 10 years, beginning when the director achieves age 65. A liability is accrued for the obligation under these plans. |
Incentive Plans | Incentive Plans: A long-term incentive plan established in 2000 provides for the payment of incentive rewards as a 15-year annuity to all directors and certain key officers. That plan was in place through December 31, 2009, and compensation expense is recognized over the service period. Payments under the plan generally did not begin until the earlier of January 1, 2015, or the January 1 immediately following the year in which the participant reaches age 65. There was no compensation expense related to this plan for 2014, 2013 and 2012. There is a liability of $14.0 million and $14.5 million as of year-end 2014 and 2013. In 2011 the Corporation adopted the 2011 Short-term Incentive Plan and the 2011 Omnibus Equity Incentive Plan designed to reward key officers based on certain performance measures. |
Income Taxes | Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. |
A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded | |
The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense. | |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments: Financial instruments include credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Earnings Per Share | Earnings Per Share: Earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. The Corporation does not have any potentially dilutive securities. Earnings and dividends per share are restated for stock splits and dividends through the date of issue of the financial statements. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the retirement plans, which are also recognized as separate components of equity. |
Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount of range of loss can be reasonably estimated. Management does not believe there are currently such matters that will have a material effect on the financial statements. |
Dividend Restriction | Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or market conditions could significantly affect the estimates. |
Operating Segment | Operating Segment: While the Corporation's chief decision-makers monitor the revenue streams of the various products and services, the operating results of significant segments are similar and operations are managed and financial performance is evaluated on a corporate-wide basis. Accordingly, all of the Corporation's financial service operations are considered by management to be aggregated in one reportable operating segment, which is banking. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards: ASU 2014-04 “Receivables (Topic 310) - Troubled Debt Restructurings by Creditors” (“ASU 2014-04”) amends Topic 310 “Receivables” to clarify the terms defining when an in substance repossession or foreclosure occurs, which determines when the receivable should be derecognized and the real estate property is recognized. ASU 2013-04 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. It is not expected to have a significant impact on our financial statements. |
In May 2014, the FASB and the International Accounting Standards Board (the "IASB") jointly issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP and International Financial Reporting Standards ("IFRS"). Previous revenue recognition guidance in GAAP comprised broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes resulted in different accounting for economically similar transactions. In contrast, IFRS provided limited revenue recognition guidance and, consequently, could be difficult to apply to complex transactions. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would: (1) Remove inconsistencies and weaknesses in revenue requirements; (2) Provide a more robust framework for addressing revenue issues; (3) Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets; (4) Provide more useful information to users of financial statements through improved disclosure requirements; and (5) Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. To meet those objectives, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers." The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies generally will be required to use more judgment and make more estimates than under current guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The standard is effective for public entities for interim and annual periods beginning after December 15, 2016; early adoption is not permitted. For financial reporting purposes, the standard allows for either full retrospective adoption, meaning the standard is applied to all of the periods presented, or modified retrospective adoption, meaning the standard is applied only to the most current period presented in the financial statements with the cumulative effect of initially applying the standard recognized at the date of initial application. The Corporation is currently evaluating the provisions of ASU No. 2014-09 and will be closely monitoring developments and additional guidance to determine the potential impact the new standard will have on the Corporation's Consolidated Financial Statements. | |
In August 2014, the FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. This ASU requires that a mortgage loan be derecognized and that a separate other receivable be recognized if certain conditions are met in the case of government guarantees. The amendments are effective for annual periods, and interim periods within those years, beginning after December 15, 2014. The adoption of this ASU is not expected to have a significant impact on the Corporation's financial statements. |
FAIR_VALUES_OF_FINANCIAL_INSTR1
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Schedule of assets and liabilities measured at fair value | The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs). | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
(Dollar amounts in thousands) | Level 1 | Level 2 | Level 3 | Carrying Value | |||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | — | $ | 1,467 | $ | — | $ | 1,467 | |||||||||||||
Mortgage-backed securities, residential | — | 187,936 | — | 187,936 | |||||||||||||||||
Mortgage-backed securities, commercial | — | 17 | — | 17 | |||||||||||||||||
Collateralized mortgage obligations | — | 484,655 | — | 484,655 | |||||||||||||||||
State and municipal obligations | — | 201,775 | 5,900 | 207,675 | |||||||||||||||||
Collateralized debt obligations | — | — | 15,303 | 15,303 | |||||||||||||||||
TOTAL | $ | — | $ | 875,850 | $ | 21,203 | $ | 897,053 | |||||||||||||
Derivative Assets | $ | 1,062 | |||||||||||||||||||
Derivative Liabilities | (1,062 | ) | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
(Dollar amounts in thousands) | Level 1 | Level 2 | Level 3 | Carrying Value | |||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | — | $ | 1,633 | $ | — | $ | 1,633 | |||||||||||||
Mortgage-backed securities, residential | — | 197,764 | — | 197,764 | |||||||||||||||||
Mortgage-backed securities, commercial | — | 4,391 | — | 4,391 | |||||||||||||||||
Collateralized mortgage obligations | — | 506,741 | — | 506,741 | |||||||||||||||||
State and municipal obligations | — | 190,462 | 4,525 | 194,987 | |||||||||||||||||
Collateralized debt obligations | — | — | 9,044 | 9,044 | |||||||||||||||||
TOTAL | $ | — | $ | 900,991 | $ | 13,569 | $ | 914,560 | |||||||||||||
Derivative Assets | $ | 1,195 | |||||||||||||||||||
Derivative Liabilities | (1,195 | ) | |||||||||||||||||||
Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3) | The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2014 and 2013. | ||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
State and municipal obligations | Collateralized debt obligations | Total | |||||||||||||||||||
Beginning balance, January 1 | $ | 4,525 | $ | 9,044 | $ | 13,569 | |||||||||||||||
Total realized/unrealized gains or losses | |||||||||||||||||||||
Included in earnings | — | — | — | ||||||||||||||||||
Included in other comprehensive income | — | 7,100 | 7,100 | ||||||||||||||||||
Purchases | 4,000 | — | 4,000 | ||||||||||||||||||
Settlements | (2,625 | ) | (841 | ) | (3,466 | ) | |||||||||||||||
Ending balance, December 31 | $ | 5,900 | $ | 15,303 | $ | 21,203 | |||||||||||||||
Fair Value Measurements Using SignificantUnobservable Inputs (Level 3) | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
State and | Collateralized | Total | |||||||||||||||||||
municipal | debt | ||||||||||||||||||||
obligations | obligations | ||||||||||||||||||||
Beginning balance, January 1 | $ | 9,911 | $ | 6,122 | $ | 16,033 | |||||||||||||||
Total realized/unrealized gains or losses | |||||||||||||||||||||
Included in earnings | — | 904 | 904 | ||||||||||||||||||
Included in other comprehensive income | — | 3,155 | 3,155 | ||||||||||||||||||
Transfers | (1,186 | ) | — | (1,186 | ) | ||||||||||||||||
Settlements | (4,200 | ) | (1,137 | ) | (5,337 | ) | |||||||||||||||
Ending balance, December 31 | $ | 4,525 | $ | 9,044 | $ | 13,569 | |||||||||||||||
Quantitative information about recurring and non-recurring Level 3 | The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2014 and 2013. | ||||||||||||||||||||
2014 | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | |||||||||||||||||
State and municipal obligations | $ | 5,900 | Discounted cash flow | Discount rate | 3.05%-5.50% | ||||||||||||||||
Probability of default | — | % | |||||||||||||||||||
Other real estate | $ | 3,965 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 5.00%-20.00% | ||||||||||||||||
Impaired Loans | $ | 11,477 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 0.00%-50.00% | ||||||||||||||||
2013 | Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range | |||||||||||||||||
State and municipal obligations | $ | 4,525 | Discounted cash flow | Discount rate | 3.05%-5.50% | ||||||||||||||||
Probability of default | — | % | |||||||||||||||||||
Other real estate | $ | 5,291 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 5.00%-20.00% | ||||||||||||||||
Impaired Loans | $ | 13,765 | Sales comparison/income approach | Discount rate for age of appraisal and market conditions | 0.00%-50.00% | ||||||||||||||||
Schedule of loans identified as impaired by class of loans | The following tables present impaired collateral dependent loans measured at fair value on a non-recurring basis by class of loans as of December 31, 2014 and 2013. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
(Dollar amounts in thousands) | Carrying Value | Allowance | Fair Value | ||||||||||||||||||
for Loan | |||||||||||||||||||||
Losses | |||||||||||||||||||||
Allocated | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Commercial & Industrial | $ | 5,874 | $ | 1,056 | $ | 4,818 | |||||||||||||||
Farmland | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 6,654 | 753 | 5,901 | ||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||
All Other Commercial | 827 | 102 | 725 | ||||||||||||||||||
Residential | |||||||||||||||||||||
First Liens | 33 | — | 33 | ||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||
TOTAL | $ | 13,388 | $ | 1,911 | $ | 11,477 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||
(Dollar amounts in thousands) | Carrying Value | Allowance | Fair Value | ||||||||||||||||||
for Loan | |||||||||||||||||||||
Losses | |||||||||||||||||||||
Allocated | |||||||||||||||||||||
Commercial | |||||||||||||||||||||
Commercial & Industrial | $ | 8,620 | $ | 1,612 | $ | 7,008 | |||||||||||||||
Farmland | — | — | — | ||||||||||||||||||
Non Farm, Non Residential | 7,204 | 1,500 | 5,704 | ||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||
All Other Commercial | 1,062 | 46 | 1,016 | ||||||||||||||||||
Residential | |||||||||||||||||||||
First Liens | 37 | — | 37 | ||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||
Junior Liens | — | — | — | ||||||||||||||||||
Multifamily | — | — | — | ||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||
TOTAL | $ | 16,923 | $ | 3,158 | $ | 13,765 | |||||||||||||||
Schedule of carrying amount and estimated fair value of financial instruments | The carrying amount and estimated fair value of assets and liabilities are presented in the table below and were determined based on the above assumptions: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash and due from banks | $ | 78,102 | $ | 22,597 | $ | 55,505 | $ | — | $ | 78,102 | |||||||||||
Federal funds sold | 8,000 | — | 8,000 | — | 8,000 | ||||||||||||||||
Securities available-for-sale | 897,053 | — | 875,850 | 21,203 | 897,053 | ||||||||||||||||
Restricted stock | 16,404 | n/a | n/a | n/a | n/a | ||||||||||||||||
Loans, net | 1,762,589 | — | — | 1,810,885 | 1,810,885 | ||||||||||||||||
FDIC Indemnification Asset | (74 | ) | — | (74 | ) | — | (74 | ) | |||||||||||||
Accrued interest receivable | 11,593 | — | 3,183 | 8,410 | 11,593 | ||||||||||||||||
Deposits | (2,457,197 | ) | — | (2,459,703 | ) | — | (2,459,703 | ) | |||||||||||||
Short-term borrowings | (48,015 | ) | — | (48,015 | ) | — | (48,015 | ) | |||||||||||||
Federal Home Loan Bank advances | (12,886 | ) | — | (13,605 | ) | — | (13,605 | ) | |||||||||||||
Accrued interest payable | (456 | ) | — | (456 | ) | — | (456 | ) | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
(Dollar amounts in thousands) | Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Cash and due from banks | $ | 71,033 | $ | 22,455 | $ | 48,578 | $ | — | $ | 71,033 | |||||||||||
Federal funds sold | 4,276 | — | 4,276 | — | 4,276 | ||||||||||||||||
Securities available-for-sale | 914,560 | — | 900,991 | 13,569 | 914,560 | ||||||||||||||||
Restricted stock | 21,057 | n/a | n/a | n/a | n/a | ||||||||||||||||
Loans, net | 1,771,360 | — | — | 1,816,726 | 1,816,726 | ||||||||||||||||
FDIC Indemnification Asset | 1,055 | — | 1,055 | — | 1,055 | ||||||||||||||||
Accrued interest receivable | 11,554 | — | 3,279 | 8,275 | 11,554 | ||||||||||||||||
Deposits | (2,458,791 | ) | — | (2,463,330 | ) | — | (2,463,330 | ) | |||||||||||||
Short-term borrowings | (59,592 | ) | — | (59,592 | ) | — | (59,592 | ) | |||||||||||||
Federal Home Loan Bank advances | (58,288 | ) | — | (60,258 | ) | — | (60,258 | ) | |||||||||||||
Accrued interest payable | (750 | ) | — | (750 | ) | — | (750 | ) | |||||||||||||
SECURITIES_Tables
SECURITIES: (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Amortized cost and fair value of investments classified as available-for-sale | The fair value of securities available-for-sale and related gross unrealized gains and losses recognized in accumulated other comprehensive income were as follows: | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Amortized | Unrealized | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | 1,411 | $ | 56 | $ | — | $ | 1,467 | |||||||||||||||||
Mortgage-backed securities, residential | 180,673 | 7,593 | (330 | ) | 187,936 | ||||||||||||||||||||
Mortgage-backed securities, commercial | 17 | — | — | 17 | |||||||||||||||||||||
Collateralized mortgage obligations | 489,765 | 2,513 | (7,623 | ) | 484,655 | ||||||||||||||||||||
State and municipal obligations | 198,875 | 9,019 | (219 | ) | 207,675 | ||||||||||||||||||||
Collateralized debt obligations | 10,205 | 5,115 | (17 | ) | 15,303 | ||||||||||||||||||||
TOTAL | $ | 880,946 | $ | 24,296 | $ | (8,189 | ) | $ | 897,053 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Unrealized | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Gains | Losses | Fair Value | |||||||||||||||||||||
U.S. Government entity mortgage-backed securities | $ | 1,623 | $ | 10 | $ | — | $ | 1,633 | |||||||||||||||||
Mortgage-backed securities, residential | 191,995 | 7,761 | (1,992 | ) | 197,764 | ||||||||||||||||||||
Mortgage-backed securities, commercial | 4,642 | 1 | (252 | ) | 4,391 | ||||||||||||||||||||
Collateralized mortgage obligations | 521,148 | 1,492 | (15,899 | ) | 506,741 | ||||||||||||||||||||
State and municipal obligations | 190,521 | 6,388 | (1,922 | ) | 194,987 | ||||||||||||||||||||
Collateralized debt obligations | 10,968 | 4,695 | (6,619 | ) | 9,044 | ||||||||||||||||||||
TOTAL | $ | 920,897 | $ | 20,347 | $ | (26,684 | ) | $ | 914,560 | ||||||||||||||||
Schedule Of Gross Gain Or Loss realised | Below is a summary of the gross gains and losses realized by the Corporation on investment sales during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Proceeds | $ | 356 | $ | 5,110 | $ | 25,812 | |||||||||||||||||||
Gross gains | — | 423 | 891 | ||||||||||||||||||||||
Gross losses | (1 | ) | — | (5 | ) | ||||||||||||||||||||
Schedule of contractual maturities of debt securities | Contractual maturities of debt securities at year-end 2014 were as follows. Securities not due at a single maturity or with no maturity date, primarily mortgage-backed and collateralized mortgage obligations, are shown separately. | ||||||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 7,607 | $ | 7,700 | |||||||||||||||||||||
Due after one but within five years | 37,409 | 38,891 | |||||||||||||||||||||||
Due after five but within ten years | 86,911 | 90,908 | |||||||||||||||||||||||
Due after ten years | 78,564 | 86,946 | |||||||||||||||||||||||
210,491 | 224,445 | ||||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations | 670,455 | 672,608 | |||||||||||||||||||||||
TOTAL | $ | 880,946 | $ | 897,053 | |||||||||||||||||||||
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position | The following tables show the securities' gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, at December 31, 2014 and 2013. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
(Dollar amounts in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
Mortgage-backed securities, residential | $ | — | $ | — | $ | 23,849 | $ | (330 | ) | $ | 23,849 | $ | (330 | ) | |||||||||||
Collateralized mortgage obligations | 50,832 | (128 | ) | 264,940 | (7,495 | ) | 315,772 | (7,623 | ) | ||||||||||||||||
State and municipal obligations | 6,500 | (35 | ) | 10,547 | (184 | ) | 17,047 | (219 | ) | ||||||||||||||||
Collateralized debt obligations | — | — | 200 | (17 | ) | 200 | (17 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 57,332 | $ | (163 | ) | $ | 299,536 | $ | (8,026 | ) | $ | 356,868 | $ | (8,189 | ) | ||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
(Dollar amounts in thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
Mortgage-backed securities, residential | $ | 52,524 | $ | (1,645 | ) | $ | 6,022 | $ | (347 | ) | $ | 58,546 | $ | (1,992 | ) | ||||||||||
Mortgage-backed securities, commercial | — | — | 4,357 | (252 | ) | 4,357 | (252 | ) | |||||||||||||||||
Collateralized mortgage obligations | 406,291 | (13,979 | ) | 29,588 | (1,920 | ) | 435,879 | (15,899 | ) | ||||||||||||||||
State and municipal obligations | 43,899 | (1,746 | ) | 2,305 | (176 | ) | 46,204 | (1,922 | ) | ||||||||||||||||
Collateralized debt obligations | — | — | 3,686 | (6,619 | ) | 3,686 | (6,619 | ) | |||||||||||||||||
Total temporarily impaired securities | $ | 502,714 | $ | (17,370 | ) | $ | 45,958 | $ | (9,314 | ) | $ | 548,672 | $ | (26,684 | ) | ||||||||||
Rollforward of the credit losses recognized in earnings | The table below presents a rollforward of the credit losses recognized in earnings for the years presented: | ||||||||||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Beginning balance, January 1, | $ | 14,079 | $ | 14,983 | $ | 15,180 | |||||||||||||||||||
Amounts related to credit loss for which other-than- | |||||||||||||||||||||||||
temporary impairment was not previously recognized | 11 | ||||||||||||||||||||||||
Amounts realized for securities sold during the period | (208 | ) | |||||||||||||||||||||||
Reductions for increase in cash flows expected to be collected | |||||||||||||||||||||||||
that are recognized over the remaining life of the security | (29 | ) | (904 | ) | — | ||||||||||||||||||||
Increases to the amount related to the credit loss for which other- | |||||||||||||||||||||||||
than-temporary impairment was previously recognized | — | — | — | ||||||||||||||||||||||
Ending balance, December 31, | $ | 14,050 | $ | 14,079 | $ | 14,983 | |||||||||||||||||||
LOANS_Tables
LOANS: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loans Receivable, Net [Abstract] | |||||||||||||
Summary of Loans | Loans are summarized as follows: | ||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
Commercial | $ | 1,044,522 | $ | 1,042,138 | |||||||||
Residential | 469,172 | 482,377 | |||||||||||
Consumer | 266,656 | 268,033 | |||||||||||
Total gross loans | 1,780,350 | 1,792,548 | |||||||||||
Less (plus): deferred (fees) costs | 1,078 | (1,120 | ) | ||||||||||
Allowance for loan losses | (18,839 | ) | (20,068 | ) | |||||||||
TOTAL | $ | 1,762,589 | $ | 1,771,360 | |||||||||
Capitalized Mortgage Servicing Rights | Activity for capitalized mortgage servicing rights (included in other assets) was as follows: | ||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Servicing rights: | |||||||||||||
Beginning of year | $ | 2,065 | $ | 2,225 | $ | 2,429 | |||||||
Additions | 414 | 588 | 868 | ||||||||||
Amortized to expense | (616 | ) | (748 | ) | (1,072 | ) | |||||||
End of year | $ | 1,863 | $ | 2,065 | $ | 2,225 | |||||||
ACQUISITIONS_AND_FDIC_INDEMNIF1
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Schedule of carrying amount of covered assets | The carrying amount of loans accounted for in accordance with FASB ASC 310-30 at December 31, 2014 and 2013, are shown in the following tables: | ||||||||||||
2014 | |||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | ||||||||||
Beginning balance | $ | 7,676 | $ | 2,409 | $ | 10,085 | |||||||
Discount accretion | — | — | — | ||||||||||
Disposals | (2,873 | ) | (838 | ) | (3,711 | ) | |||||||
ASC 310-30 Loans | $ | 4,803 | $ | 1,571 | $ | 6,374 | |||||||
2013 | |||||||||||||
(Dollar amounts in thousands) | Commercial | Consumer | Total | ||||||||||
Beginning balance | $ | 13,654 | $ | 3,464 | $ | 17,118 | |||||||
Discount accretion | (24 | ) | (12 | ) | (36 | ) | |||||||
Disposals | (5,954 | ) | (1,043 | ) | (6,997 | ) | |||||||
ASC 310-30 Loans | $ | 7,676 | $ | 2,409 | $ | 10,085 | |||||||
Schedule of FDIC Indemnification asset | The rollforward of the FDIC Indemnification asset is as follows: | ||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
Beginning balance | $ | 1,055 | $ | 2,632 | |||||||||
Accretion | — | — | |||||||||||
Net changes in losses and expenses added | (79 | ) | (1,225 | ) | |||||||||
Reimbursements from the FDIC | (1,050 | ) | (352 | ) | |||||||||
TOTAL | $ | (74 | ) | $ | 1,055 | ||||||||
ALLOWANCE_FOR_LOAN_LOSSES_Tabl
ALLOWANCE FOR LOAN LOSSES: (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Allowance For Loan Losses Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of allowances for loan losses by portfolio segment | The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||
Allowance for Loan Losses: | 31-Dec-14 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Beginning balance | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | |||||||||||||||
Provision for loan losses* | 1,053 | 134 | 3,401 | (203 | ) | 4,385 | |||||||||||||||||||
Loans charged -off | (3,522 | ) | (1,143 | ) | (4,785 | ) | — | (9,450 | ) | ||||||||||||||||
Recoveries | 934 | 798 | 2,104 | — | 3,836 | ||||||||||||||||||||
Ending Balance | $ | 10,915 | $ | 1,374 | $ | 4,370 | $ | 2,180 | $ | 18,839 | |||||||||||||||
* Provision before increase of $687 thousand in 2014 for decrease in FDIC indemnification asset | |||||||||||||||||||||||||
Allowance for Loan Losses: | 31-Dec-13 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Beginning balance | $ | 10,987 | $ | 5,426 | $ | 3,879 | $ | 1,666 | $ | 21,958 | |||||||||||||||
Provision for loan losses* | 3,144 | 629 | 1,985 | 717 | 6,475 | ||||||||||||||||||||
Loans charged -off | (4,830 | ) | (4,942 | ) | (3,615 | ) | — | (13,387 | ) | ||||||||||||||||
Recoveries | 3,149 | 472 | 1,401 | — | 5,022 | ||||||||||||||||||||
Ending Balance | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | |||||||||||||||
* Provision before increase of $1.4 million in 2013 for increase in FDIC indemnification asset | |||||||||||||||||||||||||
Allowance for Loan Losses: | 31-Dec-12 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Beginning balance | $ | 12,119 | $ | 2,728 | $ | 3,889 | $ | 505 | $ | 19,241 | |||||||||||||||
Provision for loan losses* | 2,400 | 5,196 | 2,243 | 1,161 | 11,000 | ||||||||||||||||||||
Loans charged -off | (4,176 | ) | (2,598 | ) | (3,640 | ) | — | (10,414 | ) | ||||||||||||||||
Recoveries | 644 | 100 | 1,387 | — | 2,131 | ||||||||||||||||||||
Ending Balance | $ | 10,987 | $ | 5,426 | $ | 3,879 | $ | 1,666 | $ | 21,958 | |||||||||||||||
* Provision before decrease of $2.2 million in 2012 for increase in FDIC indemnification asset | |||||||||||||||||||||||||
Allocation of the allowance for loan losses by portfolio segment based on the impairment method | The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2014 and 2013: | ||||||||||||||||||||||||
Allowance for Loan Losses: | December 31, 2014 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Individually evaluated for impairment | $ | 1,911 | $ | — | $ | — | $ | — | $ | 1,911 | |||||||||||||||
Collectively evaluated for impairment | 8,733 | 1,365 | 4,370 | 2,180 | 16,648 | ||||||||||||||||||||
Acquired with deteriorated credit quality | 271 | 9 | — | — | 280 | ||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 10,915 | $ | 1,374 | $ | 4,370 | $ | 2,180 | $ | 18,839 | |||||||||||||||
Loans | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
Individually evaluated for impairment | $ | 14,573 | $ | 33 | $ | — | $ | 14,606 | |||||||||||||||||
Collectively evaluated for impairment | 1,030,949 | 468,872 | 267,880 | 1,767,701 | |||||||||||||||||||||
Acquired with deteriorated credit quality | 4,887 | 1,631 | — | 6,518 | |||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 1,050,409 | $ | 470,536 | $ | 267,880 | $ | 1,788,825 | |||||||||||||||||
Allowance for Loan Losses: | 31-Dec-13 | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Unallocated | Total | ||||||||||||||||||||
Individually evaluated for impairment | $ | 3,158 | $ | — | $ | — | $ | — | $ | 3,158 | |||||||||||||||
Collectively evaluated for impairment | 8,421 | 1,408 | 3,650 | 2,383 | 15,862 | ||||||||||||||||||||
Acquired with deteriorated credit quality | 871 | 177 | — | — | 1,048 | ||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 12,450 | $ | 1,585 | $ | 3,650 | $ | 2,383 | $ | 20,068 | |||||||||||||||
Loans | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
Individually evaluated for impairment | $ | 18,825 | $ | 37 | $ | — | $ | 18,862 | |||||||||||||||||
Collectively evaluated for impairment | 1,020,771 | 481,439 | 269,352 | 1,771,562 | |||||||||||||||||||||
Acquired with deteriorated credit quality | 8,001 | 2,397 | — | 10,398 | |||||||||||||||||||||
BALANCE AT END OF YEAR | $ | 1,047,597 | $ | 483,873 | $ | 269,352 | $ | 1,800,822 | |||||||||||||||||
Schedule of loans individually evaluated for impairment by class of loans | The following table presents loans individually evaluated for impairment by class of loan. | ||||||||||||||||||||||||
31-Dec-14 | Allowance | Cash Basis | |||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | Interest | |||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | Income | ||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 1,200 | $ | 926 | $ | — | $ | 2,589 | $ | — | $ | — | |||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||
Non Farm, Non Residential | — | — | — | 58 | — | — | |||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | 292 | 292 | — | 58 | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | — | — | — | 5 | — | — | |||||||||||||||||||
Home Equity | — | — | — | — | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | — | |||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | 7,388 | 5,874 | 1,056 | 6,177 | — | — | |||||||||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||
Non Farm, Non Residential | 6,654 | 6,654 | 753 | 6,698 | — | ||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | 827 | 827 | 102 | 1,112 | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 33 | 33 | — | 35 | — | — | |||||||||||||||||||
Home Equity | — | — | — | — | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | ||||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 16,394 | $ | 14,606 | $ | 1,911 | $ | 16,732 | $ | — | $ | — | |||||||||||||
31-Dec-13 | Allowance | Cash Basis | |||||||||||||||||||||||
Unpaid | for Loan | Average | Interest | Interest | |||||||||||||||||||||
Principal | Recorded | Losses | Recorded | Income | Income | ||||||||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | ||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 2,120 | $ | 1,918 | $ | — | $ | 1,555 | $ | — | $ | — | |||||||||||||
Farmland | — | — | — | — | — | — | |||||||||||||||||||
Non Farm, Non Residential | 271 | 105 | — | 26 | — | — | |||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | — | — | — | — | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | — | — | — | 7 | — | — | |||||||||||||||||||
Home Equity | — | — | — | — | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | — | |||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | 10,134 | 8,620 | 1,612 | 13,029 | 217 | 217 | |||||||||||||||||||
Farmland | — | — | — | 356 | 113 | 113 | |||||||||||||||||||
Non Farm, Non Residential | 7,664 | 7,204 | 1,500 | 7,921 | — | ||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||
All Other Commercial | 1,062 | 1,062 | 46 | 2,979 | — | — | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 37 | 37 | — | 524 | — | — | |||||||||||||||||||
Home Equity | — | — | — | 113 | — | — | |||||||||||||||||||
Junior Liens | — | — | — | — | — | ||||||||||||||||||||
Multifamily | — | — | — | 2,216 | — | — | |||||||||||||||||||
All Other Residential | — | — | — | — | — | — | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | — | — | — | |||||||||||||||||||
All Other Consumer | — | — | — | — | — | — | |||||||||||||||||||
TOTAL | $ | 21,288 | $ | 18,946 | $ | 3,158 | $ | 28,726 | $ | 330 | $ | 330 | |||||||||||||
31-Dec-12 | Cash Basis | ||||||||||||||||||||||||
Average | Interest | Interest | |||||||||||||||||||||||
Recorded | Income | Income | |||||||||||||||||||||||
Investment | Recognized | Recognized | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 1,013 | $ | — | $ | — | |||||||||||||||||||
Farmland | — | — | — | ||||||||||||||||||||||
Non Farm, Non Residential | 1,679 | — | — | ||||||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||||||
All Other Commercial | — | — | — | ||||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 150 | — | — | ||||||||||||||||||||||
Home Equity | — | — | — | ||||||||||||||||||||||
Junior Liens | — | — | — | ||||||||||||||||||||||
Multifamily | 50 | — | — | ||||||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | 16,738 | — | — | ||||||||||||||||||||||
Farmland | 891 | — | — | ||||||||||||||||||||||
Non Farm, Non Residential | 5,000 | 179 | — | ||||||||||||||||||||||
Agriculture | — | — | — | ||||||||||||||||||||||
All Other Commercial | 1,362 | — | — | ||||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 1,230 | — | — | ||||||||||||||||||||||
Home Equity | 75 | — | — | ||||||||||||||||||||||
Junior Liens | 176 | — | — | ||||||||||||||||||||||
Multifamily | 2,216 | — | — | ||||||||||||||||||||||
All Other Residential | — | — | — | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | — | — | — | ||||||||||||||||||||||
All Other Consumer | — | — | — | ||||||||||||||||||||||
TOTAL | $ | 30,580 | $ | 179 | $ | — | |||||||||||||||||||
Schedule of non-performing loans | The following table presents the recorded investment in nonperforming loans by class of loans. | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Loans Past | Troubled Debt | ||||||||||||||||||||||||
Due Over | Restructured | ||||||||||||||||||||||||
90 Day Still | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Accruing | Accrual | Non-accrual | Non-accrual | |||||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | — | $ | 7 | $ | 4,961 | $ | 3,720 | |||||||||||||||||
Farmland | — | — | — | 79 | |||||||||||||||||||||
Non Farm, Non Residential | — | 10 | 3,987 | 3,388 | |||||||||||||||||||||
Agriculture | — | — | — | 767 | |||||||||||||||||||||
All Other Commercial | — | — | — | 1,258 | |||||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 603 | 4,357 | 842 | 3,861 | |||||||||||||||||||||
Home Equity | 88 | — | — | 404 | |||||||||||||||||||||
Junior Liens | 12 | — | — | 275 | |||||||||||||||||||||
Multifamily | — | — | — | — | |||||||||||||||||||||
All Other Residential | 5 | — | — | 111 | |||||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 162 | 257 | 83 | 210 | |||||||||||||||||||||
All Other Consumer | 3 | 1 | 269 | 961 | |||||||||||||||||||||
TOTAL | $ | 873 | $ | 4,632 | $ | 10,142 | $ | 15,034 | |||||||||||||||||
Troubled debt restructurings on financing receivables | During the years ending December 31, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's. | ||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
January 1, | $ | 12,327 | $ | 4,330 | $ | 644 | $ | 17,301 | |||||||||||||||||
Added | 441 | 1,523 | 347 | 2,311 | |||||||||||||||||||||
Charged Off | (1,069 | ) | (93 | ) | (109 | ) | (1,271 | ) | |||||||||||||||||
Payments | (2,744 | ) | (571 | ) | (268 | ) | (3,583 | ) | |||||||||||||||||
December 31, | $ | 8,955 | $ | 5,189 | $ | 614 | $ | 14,758 | |||||||||||||||||
2013 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Commercial | Residential | Consumer | Total | |||||||||||||||||||||
January 1, | $ | 16,474 | $ | 4,107 | $ | 704 | $ | 21,285 | |||||||||||||||||
Added | 1,561 | 841 | 270 | 2,672 | |||||||||||||||||||||
Charged Off | — | (32 | ) | (50 | ) | (82 | ) | ||||||||||||||||||
Payments | (5,708 | ) | (586 | ) | (280 | ) | (6,574 | ) | |||||||||||||||||
December 31, | $ | 12,327 | $ | 4,330 | $ | 644 | $ | 17,301 | |||||||||||||||||
Aging of recorded investment in loans by past due category and class of loans | The following table presents the aging of the recorded investment in loans by past due category and class of loans. | ||||||||||||||||||||||||
Greater | |||||||||||||||||||||||||
31-Dec-14 | 30-59 Days | 60-89 Days | than 90 days | Total | |||||||||||||||||||||
(Dollar amounts in thousands) | Past Due | Past Due | Past Due | Past Due | Current | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 574 | $ | 416 | $ | 3,046 | $ | 4,036 | $ | 451,549 | $ | 455,585 | |||||||||||||
Farmland | — | — | — | — | 95,452 | 95,452 | |||||||||||||||||||
Non Farm, Non Residential | 1,528 | 68 | 202 | 1,798 | 232,440 | 234,238 | |||||||||||||||||||
Agriculture | 246 | 18 | 502 | 766 | 149,099 | 149,865 | |||||||||||||||||||
All Other Commercial | 255 | — | — | 255 | 115,014 | 115,269 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 6,011 | 963 | 1,522 | 8,496 | 308,068 | 316,564 | |||||||||||||||||||
Home Equity | 141 | 33 | 310 | 484 | 40,043 | 40,527 | |||||||||||||||||||
Junior Liens | 270 | 83 | 217 | 570 | 31,487 | 32,057 | |||||||||||||||||||
Multifamily | — | — | — | — | 72,310 | 72,310 | |||||||||||||||||||
All Other Residential | 112 | — | 5 | 117 | 8,961 | 9,078 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 3,026 | 557 | 180 | 3,763 | 242,406 | 246,169 | |||||||||||||||||||
All Other Consumer | 114 | 7 | 3 | 124 | 21,587 | 21,711 | |||||||||||||||||||
TOTAL | $ | 12,277 | $ | 2,145 | $ | 5,987 | $ | 20,409 | $ | 1,768,416 | $ | 1,788,825 | |||||||||||||
Greater | |||||||||||||||||||||||||
31-Dec-13 | 30-59 Days | 60-89 Days | than 90 days | Total | |||||||||||||||||||||
(Dollar amounts in thousands) | Past Due | Past Due | Past Due | Past Due | Current | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 1,076 | $ | 266 | $ | 7,900 | $ | 9,242 | $ | 459,076 | $ | 468,318 | |||||||||||||
Farmland | — | — | — | — | 92,602 | 92,602 | |||||||||||||||||||
Non Farm, Non Residential | 362 | — | 2,042 | 2,404 | 239,183 | 241,587 | |||||||||||||||||||
Agriculture | 31 | 32 | — | 63 | 136,388 | 136,451 | |||||||||||||||||||
All Other Commercial | 50 | 217 | 188 | 455 | 108,184 | 108,639 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 5,594 | 1,513 | 1,701 | 8,808 | 324,141 | 332,949 | |||||||||||||||||||
Home Equity | 307 | 7 | 40 | 354 | 41,350 | 41,704 | |||||||||||||||||||
Junior Liens | 392 | 170 | 471 | 1,033 | 32,269 | 33,302 | |||||||||||||||||||
Multifamily | 103 | 19 | 400 | 522 | 66,138 | 66,660 | |||||||||||||||||||
All Other Residential | 88 | — | 1 | 89 | 9,169 | 9,258 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 3,579 | 612 | 227 | 4,418 | 243,146 | 247,564 | |||||||||||||||||||
All Other Consumer | 123 | 22 | 7 | 152 | 21,636 | 21,788 | |||||||||||||||||||
TOTAL | $ | 11,705 | $ | 2,858 | $ | 12,977 | $ | 27,540 | $ | 1,773,282 | $ | 1,800,822 | |||||||||||||
Analysis of risk category of loans by class of loans | As of December 31, 2014 and 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | ||||||||||||||||||||||||
31-Dec-14 | Special | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | Mention | Substandard | Doubtful | Not Rated | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 393,449 | $ | 29,081 | $ | 24,013 | $ | 2,900 | $ | 4,717 | $ | 454,160 | |||||||||||||
Farmland | 85,772 | 7,618 | 436 | — | 13 | 93,839 | |||||||||||||||||||
Non Farm, Non Residential | 186,346 | 21,765 | 25,613 | 36 | — | 233,760 | |||||||||||||||||||
Agriculture | 138,713 | 7,399 | 1,746 | 177 | 67 | 148,102 | |||||||||||||||||||
All Other Commercial | 101,942 | 4,356 | 7,055 | 33 | 1,275 | 114,661 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 104,854 | 5,929 | 7,733 | 1,035 | 196,008 | 315,559 | |||||||||||||||||||
Home Equity | 12,592 | 375 | 1,374 | 6 | 26,116 | 40,463 | |||||||||||||||||||
Junior Liens | 8,112 | 173 | 561 | 63 | 23,053 | 31,962 | |||||||||||||||||||
Multifamily | 69,080 | 1,801 | 1,249 | — | 3 | 72,133 | |||||||||||||||||||
All Other Residential | 1,799 | — | 28 | — | 7,228 | 9,055 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 11,135 | 402 | 224 | — | 233,302 | 245,063 | |||||||||||||||||||
All Other Consumer | 3,169 | 141 | 87 | 21 | 18,175 | 21,593 | |||||||||||||||||||
TOTAL | $ | 1,116,963 | $ | 79,040 | $ | 70,119 | $ | 4,271 | $ | 509,957 | $ | 1,780,350 | |||||||||||||
31-Dec-13 | Special | ||||||||||||||||||||||||
(Dollar amounts in thousands) | Pass | Mention | Substandard | Doubtful | Not Rated | Total | |||||||||||||||||||
Commercial | |||||||||||||||||||||||||
Commercial & Industrial | $ | 406,650 | $ | 18,968 | $ | 30,986 | $ | 4,069 | $ | 6,426 | $ | 467,099 | |||||||||||||
Farmland | 86,633 | 3,631 | 347 | — | 445 | 91,056 | |||||||||||||||||||
Non Farm, Non Residential | 207,115 | 13,408 | 19,719 | 809 | — | 241,051 | |||||||||||||||||||
Agriculture | 128,137 | 6,482 | 105 | — | 71 | 134,795 | |||||||||||||||||||
All Other Commercial | 93,515 | 2,297 | 10,038 | 44 | 2,243 | 108,137 | |||||||||||||||||||
Residential | |||||||||||||||||||||||||
First Liens | 114,074 | 3,834 | 8,498 | 995 | 204,416 | 331,817 | |||||||||||||||||||
Home Equity | 12,883 | 274 | 1,071 | 113 | 27,295 | 41,636 | |||||||||||||||||||
Junior Liens | 8,858 | 60 | 550 | 67 | 23,654 | 33,189 | |||||||||||||||||||
Multifamily | 63,073 | 1,908 | 1,482 | 48 | — | 66,511 | |||||||||||||||||||
All Other Residential | 3,643 | — | 31 | — | 5,550 | 9,224 | |||||||||||||||||||
Consumer | |||||||||||||||||||||||||
Motor Vehicle | 11,447 | 219 | 510 | 9 | 234,210 | 246,395 | |||||||||||||||||||
All Other Consumer | 3,507 | 46 | 79 | 22 | 17,984 | 21,638 | |||||||||||||||||||
TOTAL | $ | 1,139,535 | $ | 51,127 | $ | 73,416 | $ | 6,176 | $ | 522,294 | $ | 1,792,548 | |||||||||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT: (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment, Gross [Abstract] | |||||||||
Schedule of Premises and Equipment | Premises and equipment are summarized as follows: | ||||||||
December 31, | |||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Land | $ | 11,353 | $ | 11,423 | |||||
Building and leasehold improvements | 55,074 | 54,353 | |||||||
Furniture and equipment | 45,602 | 42,546 | |||||||
112,029 | 108,322 | ||||||||
Less accumulated depreciation | (60,227 | ) | (56,873 | ) | |||||
TOTAL | $ | 51,802 | $ | 51,449 | |||||
Schedule of Rent Expense | Rent commitments, before considering renewal options that generally are present, were as follows: | ||||||||
2015 | $ | 901 | |||||||
2016 | 720 | ||||||||
2017 | 391 | ||||||||
2018 | 304 | ||||||||
2019 | 204 | ||||||||
Thereafter | 1,188 | ||||||||
$ | 3,708 | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS: (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Intangible Assets Subject to Amortization | Intangible assets subject to amortization at December 31, 2014 and 2013 are as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross | Accumulated | Gross | Accumulated | ||||||||||||||
(Dollar amounts in thousands) | Amount | Amortization | Amount | Amortization | |||||||||||||
Customer list intangible | $ | 4,669 | $ | 4,227 | $ | 4,669 | $ | 4,120 | |||||||||
Core deposit intangible | 10,836 | 7,377 | 10,836 | 6,450 | |||||||||||||
$ | 15,505 | $ | 11,604 | $ | 15,505 | $ | 10,570 | ||||||||||
Estimated Amortization Expense | Estimated amortization expense for the next five years is as follows: | ||||||||||||||||
In thousands | |||||||||||||||||
2015 | $ | 820 | |||||||||||||||
2016 | 679 | ||||||||||||||||
2017 | 550 | ||||||||||||||||
2018 | 505 | ||||||||||||||||
2019 | 421 | ||||||||||||||||
DEPOSITS_Tables
DEPOSITS: (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Maturities of Time Deposits [Abstract] | ||||
Scheduled Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years are as follows: | |||
(dollar amounts in thousands) | ||||
2015 | $ | 276,729 | ||
2016 | 81,933 | |||
2017 | 62,879 | |||
2018 | 33,960 | |||
2019 | 16,505 | |||
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS: (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Short Term Borrowings Disclosure [Abstract] | |||||||||
Schedule of short-term borrowings | A summary of the carrying value of the Corporation's short-term borrowings at December 31, 2014 and 2013 is presented below: | ||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Federal funds purchased | $ | 21,192 | $ | 30,679 | |||||
Repurchase-agreements | 26,823 | 28,913 | |||||||
$ | 48,015 | $ | 59,592 | ||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Average amount outstanding | $ | 45,697 | $ | 37,990 | |||||
Maximum amount outstanding at a month end | 96,452 | 83,452 | |||||||
Average interest rate during year | 0.22 | % | 0.2 | % | |||||
Interest rate at year-end | 0.2 | % | 0.12 | % |
OTHER_BORROWINGS_Tables
OTHER BORROWINGS: (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Borrowings Disclosure [Abstract] | |||||||||
Schedule of other borrowings | Other borrowings at December 31, 2014 and 2013 are summarized as follows: | ||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
FHLB advances | $ | 12,886 | $ | 58,288 | |||||
Aggregate Minimum Annual Retirements | The aggregate minimum annual retirements of other borrowings are as follows: | ||||||||
2015 | $ | 2,297 | |||||||
2016 | 10,223 | ||||||||
2017 | 366 | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
Thereafter | — | ||||||||
$ | 12,886 | ||||||||
INCOME_TAXES_Tables
INCOME TAXES: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Expense | Income tax expense is summarized as follows: | ||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Federal: | |||||||||||||
Currently payable | $ | 9,388 | $ | 10,177 | $ | 12,074 | |||||||
Deferred | 2,120 | 740 | (455 | ) | |||||||||
11,508 | 10,917 | 11,619 | |||||||||||
State: | |||||||||||||
Currently payable | 1,928 | 3,629 | 1,887 | ||||||||||
Deferred | 753 | (779 | ) | 312 | |||||||||
2,681 | 2,850 | 2,199 | |||||||||||
TOTAL | $ | 14,189 | $ | 13,767 | $ | 13,818 | |||||||
Reconciliation of Income Tax Expense | The reconciliation of income tax expense with the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes is summarized as follows: | ||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Federal income taxes computed at the statutory rate | $ | 16,786 | $ | 15,856 | $ | 16,320 | |||||||
Add (deduct) tax effect of: | |||||||||||||
Tax exempt income | (4,016 | ) | (3,760 | ) | (3,864 | ) | |||||||
ESOP dividend deduction | (284 | ) | (105 | ) | (258 | ) | |||||||
State tax, net of federal benefit | 1,743 | 1,852 | 1,444 | ||||||||||
Affordable housing credits | (148 | ) | (148 | ) | (148 | ) | |||||||
Other, net | 108 | 72 | 324 | ||||||||||
TOTAL | $ | 14,189 | $ | 13,767 | $ | 13,818 | |||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2014 and 2013, are as follows: | ||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Other than temporary impairment | $ | 5,417 | $ | 5,820 | |||||||||
Net unrealized losses on retirement plans | 16,068 | 6,815 | |||||||||||
Net unrealized losses on securities available for sale | — | 2,701 | |||||||||||
Loan loss provisions | 7,232 | 7,845 | |||||||||||
Deferred compensation | 6,637 | 7,118 | |||||||||||
Compensated absences | 894 | 857 | |||||||||||
Post-retirement benefits | 2,014 | 2,045 | |||||||||||
Deferred loss on acquisition | 1,377 | 929 | |||||||||||
Other | 2,185 | 2,771 | |||||||||||
GROSS DEFERRED ASSETS | 41,824 | 36,901 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Net unrealized gains on securities available-for-sale | (5,831 | ) | — | ||||||||||
Depreciation | (2,423 | ) | (2,528 | ) | |||||||||
Mortgage servicing rights | (561 | ) | (752 | ) | |||||||||
Pensions | (2,182 | ) | (1,818 | ) | |||||||||
Intangibles | (1,652 | ) | (1,086 | ) | |||||||||
Other | (2,173 | ) | (1,563 | ) | |||||||||
GROSS DEFERRED LIABILITIES | (14,822 | ) | (7,747 | ) | |||||||||
NET DEFERRED TAX ASSETS (LIABILITIES) | $ | 27,002 | $ | 29,154 | |||||||||
Reconciliation of Unrecognized Tax Benefits | Unrecognized Tax Benefits — A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance at January 1 | $ | 676 | $ | 777 | $ | 862 | |||||||
Additions based on tax positions related to the current year | 72 | 65 | 86 | ||||||||||
Additions based on tax positions related to prior years | — | — | — | ||||||||||
Reductions due to the statute of limitations | (159 | ) | (166 | ) | (171 | ) | |||||||
Balance at December 31 | $ | 589 | $ | 676 | $ | 777 | |||||||
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
Summary of Commitment and Contingent Liabilities | Commitment and contingent liabilities are summarized as follows at December 31: | ||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||
Home Equity | $ | 54,388 | $ | 58,447 | |||||
Commercial Operating Lines | 249,354 | 265,910 | |||||||
Other Commitments | 50,850 | 51,113 | |||||||
TOTAL | $ | 354,592 | $ | 375,470 | |||||
Commercial letters of credit | $ | 7,684 | $ | 7,642 | |||||
RETIREMENT_PLANS_Tables
RETIREMENT PLANS: (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Schedule of Net Benefit Costs | Net periodic benefit cost and other amounts recognized in other comprehensive income included the following components: | ||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Service cost - benefits earned | $ | 2,040 | $ | 2,238 | $ | 4,872 | |||||||||||
Interest cost on projected benefit obligation | 3,756 | 3,383 | 3,667 | ||||||||||||||
Loss due to settlement | 2,676 | — | — | ||||||||||||||
Expected return on plan assets | (3,794 | ) | (3,309 | ) | (3,258 | ) | |||||||||||
Net amortization and deferral | 750 | 2,075 | 2,434 | ||||||||||||||
Net periodic pension cost | 5,428 | 4,387 | 7,715 | ||||||||||||||
Net loss (gain) during the period | 23,111 | (14,697 | ) | 3,842 | |||||||||||||
Adjustment to loss due to settlement | (2,676 | ) | — | — | |||||||||||||
Settlement | (7,148 | ) | — | — | |||||||||||||
Curtailment gain | — | — | (5,700 | ) | |||||||||||||
Amortization of prior service cost | 9 | 16 | (166 | ) | |||||||||||||
Amortization of unrecognized gain (loss) | (759 | ) | (2,091 | ) | (2,270 | ) | |||||||||||
Total recognized in other comprehensive (income) loss | 12,537 | (16,772 | ) | (4,294 | ) | ||||||||||||
Total recognized net periodic pension cost and other comprehensive income | $ | 17,965 | $ | (12,385 | ) | $ | 3,421 | ||||||||||
Schedule of Defined Benefit Plans Disclosures | The information below sets forth the change in projected benefit obligation, reconciliation of plan assets, and the funded status of the Corporation's retirement program. Actuarial present value of benefits is based on service to date and present pay levels. | ||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at January 1 | $ | 81,469 | $ | 86,807 | |||||||||||||
Service cost | 2,040 | 2,238 | |||||||||||||||
Interest cost | 3,756 | 3,383 | |||||||||||||||
Actuarial (gain) loss | 22,274 | (7,098 | ) | ||||||||||||||
Settlement | (7,148 | ) | — | ||||||||||||||
Benefits paid | (4,256 | ) | (3,861 | ) | |||||||||||||
Benefit obligation at December 31 | 98,135 | 81,469 | |||||||||||||||
Reconciliation of fair value of plan assets: | |||||||||||||||||
Fair value of plan assets at January 1 | 67,233 | 57,491 | |||||||||||||||
Actual return on plan assets | 2,957 | 10,909 | |||||||||||||||
Employer contributions | 3,779 | 2,694 | |||||||||||||||
Settlement | (7,148 | ) | — | ||||||||||||||
Benefits paid | (4,256 | ) | (3,861 | ) | |||||||||||||
Fair value of plan assets at December 31 | 62,565 | 67,233 | |||||||||||||||
Funded status at December 31 (plan assets less benefit obligation) | $ | (35,570 | ) | $ | (14,236 | ) | |||||||||||
Schedule of Assumptions Used | The accumulated benefit obligation for the defined benefit pension plan was $91.5 million and $75.7 million at year-end | ||||||||||||||||
2014 and 2013. | |||||||||||||||||
Principal assumptions used to determine pension benefit obligation at year end: | 2014 | 2013 | |||||||||||||||
Discount rate | 3.95 | % | 4.95 | % | |||||||||||||
Rate of increase in compensation levels | 3 | 3.5 | |||||||||||||||
Principal assumptions used to determine net periodic pension cost: | 2014 | 2013 | |||||||||||||||
Discount rate | 4.95 | % | 4.05 | % | |||||||||||||
Rate of increase in compensation levels | 3.5 | 3.5 | |||||||||||||||
Expected long-term rate of return on plan assets | 6 | 6 | |||||||||||||||
Schedule of Allocation of Plan Assets | The Corporation's pension plan weighted-average asset allocation for the years 2014 and 2013 by asset category are as follows: | ||||||||||||||||
Pension Plan | ESOP | Pension | ESOP | ||||||||||||||
Target Allocation | Target Allocation | Pecentage of Plan | Pecentage of Plan | ||||||||||||||
Assets at December 31, | Assets at December 31, | ||||||||||||||||
ASSET CATEGORY | 2014 | 2014 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Equity securities | 40-65% | 95-99% | 59 | % | 64 | % | 99 | % | 99 | % | |||||||
Debt securities | 35-60% | 0-0% | 38 | % | 34 | % | — | % | — | % | |||||||
Other | 0-10% | 0-5% | 3 | % | 2 | % | 1 | % | 1 | % | |||||||
TOTAL | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Schedule Of Fair Value Of Plan Assets | The fair value of the plan assets at December 31, 2014 and 2013, by asset category, is as follows: | ||||||||||||||||
Fair Value Measurments at | |||||||||||||||||
December 31, 2014 Using: | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Observable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Dollar amounts in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Plan assets | |||||||||||||||||
Equity securities | $ | 44,732 | $ | 44,732 | $ | — | $ | — | |||||||||
Debt securities | 15,245 | — | 15,245 | — | |||||||||||||
Investment Funds | 2,588 | 2,588 | — | — | |||||||||||||
Total plan assets | $ | 62,565 | $ | 47,320 | $ | 15,245 | $ | — | |||||||||
Fair Value Measurments at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Quoted Prices | Significant | Significant | |||||||||||||||
in Active | Other | Observable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Dollar amounts in thousands) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Plan assets | |||||||||||||||||
Equity securities | $ | 53,112 | $ | 53,112 | $ | — | $ | — | |||||||||
Debt securities | 12,015 | — | 12,015 | — | |||||||||||||
Investment Funds | 2,106 | 2,106 | — | — | |||||||||||||
Total plan assets | $ | 67,233 | $ | 55,218 | $ | 12,015 | $ | — | |||||||||
Schedule of Expected Benefit Payments | Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: | ||||||||||||||||
PENSION BENEFITS | |||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||
2015 | $ | 4,730 | |||||||||||||||
2016 | 4,891 | ||||||||||||||||
2017 | 5,022 | ||||||||||||||||
2018 | 5,143 | ||||||||||||||||
2019 | 5,403 | ||||||||||||||||
2020-2024 | 29,658 | ||||||||||||||||
Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: | |||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||
2015 | $ | 247 | |||||||||||||||
2016 | 262 | ||||||||||||||||
2017 | 266 | ||||||||||||||||
2018 | 266 | ||||||||||||||||
2019 | 267 | ||||||||||||||||
2020-2024 | 1,378 | ||||||||||||||||
Schedule Of Weighted Average Assumptions | Weighted average assumptions at December 31: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discount rate | 3.95 | % | 4.95 | % | |||||||||||||
Initial weighted health care cost trend rate | 7.5 | 7.5 | |||||||||||||||
Ultimate health care cost trend rate | 5 | 5 | |||||||||||||||
Year that the rate is assumed to stabilize and remain unchanged | 2015 | 2016 | |||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in the assumed health care cost trend rates would have the following effects: | ||||||||||||||||
1% Point | 1% Point | ||||||||||||||||
(Dollar amounts in thousands) | Increase | Decrease | |||||||||||||||
Effect on total of service and interest cost components | $ | 2 | $ | 1 | |||||||||||||
Effect on post-retirement benefit obligation | 39 | 35 | |||||||||||||||
Pension Plan [Member] | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of: | ||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||
Net loss (gain) | $ | 23,111 | $ | (14,697 | ) | ||||||||||||
Prior service cost (credit) | 9 | 16 | |||||||||||||||
$ | 23,120 | $ | (14,681 | ) | |||||||||||||
Postretirement Health Coverage [Member] | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The Corporation uses a measurement date of December 31. Accrued post-retirement benefits as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation at January 1 | $ | 4,088 | $ | 4,395 | |||||||||||||
Service cost | 53 | 68 | |||||||||||||||
Interest cost | 175 | 173 | |||||||||||||||
Plan participants' contributions | 39 | 37 | |||||||||||||||
Actuarial (gain) loss | 456 | (338 | ) | ||||||||||||||
Benefits paid | (252 | ) | (247 | ) | |||||||||||||
Benefit obligation at December 31 | $ | 4,559 | $ | 4,088 | |||||||||||||
Funded status at December 31 | $ | 4,559 | $ | 4,088 | |||||||||||||
Post-retirement health benefit expense included the following components: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Service cost | $ | 53 | $ | 68 | $ | 60 | |||||||||||
Interest cost | 175 | 173 | 173 | ||||||||||||||
Amortization of transition obligation | — | 60 | 60 | ||||||||||||||
Recognized actuarial loss | — | — | — | ||||||||||||||
Net periodic benefit cost | 228 | 301 | 293 | ||||||||||||||
Net loss (gain) during the period | 456 | (338 | ) | 311 | |||||||||||||
Amortization of prior service cost | — | (59 | ) | (60 | ) | ||||||||||||
Total recognized in other comprehensive income (loss) | 456 | (397 | ) | 251 | |||||||||||||
Total recognized net periodic benefit cost and other comprehensive income | $ | 684 | $ | (96 | ) | $ | 544 | ||||||||||
Supplemental Employee Retirement Plans, Defined Benefit | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Schedule of Net Benefit Costs | The amounts recognized in other comprehensive income in the current year are as follows: | ||||||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Net loss (gain) during the period | $ | 932 | $ | (333 | ) | $ | 442 | ||||||||||
Amortization of prior service cost | — | — | — | ||||||||||||||
Amortization of unrecognized gain (loss) | (7 | ) | (68 | ) | (79 | ) | |||||||||||
Total recognized in other comprehensive (income) loss | $ | 925 | $ | (401 | ) | $ | 363 | ||||||||||
Schedule of Expected Benefit Payments | Estimated Future Payments — The following benefit payments, which reflect expected future service, are expected: | ||||||||||||||||
(Dollar amounts on thousands) | |||||||||||||||||
2015 | $ | — | |||||||||||||||
2016 | 293 | ||||||||||||||||
2017 | 289 | ||||||||||||||||
2018 | 284 | ||||||||||||||||
2019 | 280 | ||||||||||||||||
2020-2024 | 1,316 | ||||||||||||||||
STOCK_BASED_COMPENSATION_Table
STOCK BASED COMPENSATION: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | |||||||||||||
2014 | 2013 | ||||||||||||
Number | Weighted Average | Number | Weighted Average | ||||||||||
Grant Date | Grant Date | ||||||||||||
(shares in thousands) | Outstanding | Fair Value | Outstanding | Fair Value | |||||||||
Nonvested balance at January 1, | 30,496 | 33.49 | 26,431 | 36.88 | |||||||||
Granted during the year | 22,019 | 32.17 | 30,219 | 30.55 | |||||||||
Vested during the year | (30,431 | ) | 33.52 | (21,439 | ) | 34.21 | |||||||
Forfeited during the year | — | — | (4,715 | ) | 36.88 | ||||||||
Nonvested balance at December 31, | 22,084 | 31.63 | 30,496 | 33.49 | |||||||||
OTHER_COMPREHENSIVE_INCOME_LOS1
OTHER COMPREHENSIVE INCOME (LOSS): (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes, net of tax within each classification of accumulated other comprehensive income for the years ended December 31, 2014 and 2013. | ||||||||||||
Unrealized | |||||||||||||
gains and | 2014 | ||||||||||||
Losses on | Retirement | ||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | ||||||||||
Beginning balance, January 1 | $ | (3,635 | ) | $ | (10,334 | ) | $ | (13,969 | ) | ||||
Change in other comprehensive income before reclassification | 13,911 | (14,934 | ) | (1,023 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | 2 | 461 | 463 | ||||||||||
Net current period other comprehensive income (loss) | 13,913 | (14,473 | ) | (560 | ) | ||||||||
Ending balance, December 31 | $ | 10,278 | $ | (24,807 | ) | $ | (14,529 | ) | |||||
Unrealized | |||||||||||||
gains and | 2013 | ||||||||||||
Losses on | Retirement | ||||||||||||
available- | |||||||||||||
for-sale | |||||||||||||
(Dollar amounts in thousands) | Securities | plans | Total | ||||||||||
Beginning balance, January 1 | $ | 13,431 | $ | (20,903 | ) | $ | (7,472 | ) | |||||
Change in other comprehensive income before reclassification | (16,812 | ) | — | (16,812 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income | (254 | ) | 10,569 | 10,315 | |||||||||
Net current period other comprehensive income (loss) | (17,066 | ) | 10,569 | (6,497 | ) | ||||||||
Ending balance, December 31 | $ | (3,635 | ) | $ | (10,334 | ) | $ | (13,969 | ) | ||||
Balance | Current | Balance | |||||||||||
at | Period | at | |||||||||||
(Dollar amounts in thousands) | 1/1/14 | Change | 12/31/14 | ||||||||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
without other than temporary impairment | $ | (2,499 | ) | $ | 9,663 | $ | 7,164 | ||||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
with other than temporary impairment | (1,136 | ) | 4,250 | 3,114 | |||||||||
Total unrealized gain (loss) on securities available-for-sale | $ | (3,635 | ) | $ | 13,913 | $ | 10,278 | ||||||
Unrealized loss on retirement plans | (10,334 | ) | (14,473 | ) | (24,807 | ) | |||||||
TOTAL | $ | (13,969 | ) | $ | (560 | ) | $ | (14,529 | ) | ||||
Balance | Current | Balance | |||||||||||
at | Period | at | |||||||||||
(Dollar amounts in thousands) | 1/1/13 | Change | 12/31/13 | ||||||||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
without other than temporary impairment | $ | 17,044 | $ | (19,543 | ) | $ | (2,499 | ) | |||||
Unrealized gains (losses) on securities available-for-sale | |||||||||||||
with other than temporary impairment | (3,613 | ) | 2,477 | (1,136 | ) | ||||||||
Total unrealized gain (loss) on securities available-for-sale | $ | 13,431 | $ | (17,066 | ) | $ | (3,635 | ) | |||||
Unrealized loss on retirement plans | (20,903 | ) | 10,569 | (10,334 | ) | ||||||||
TOTAL | $ | (7,472 | ) | $ | (6,497 | ) | $ | (13,969 | ) | ||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||||
Balance as of December 31, 2014 | |||||||||||||
Details about accumulated | Amount reclassified from | Affected line item in | |||||||||||
other comprehensive | accumulated other | the statement where | |||||||||||
income components | comprehensive income | net income is presented | |||||||||||
(in thousands) | |||||||||||||
Unrealized gains and losses | $ | (3 | ) | Net securities gains (losses) | |||||||||
on available-for-sale | 1 | Income tax expense | |||||||||||
securities | $ | (2 | ) | Net of tax | |||||||||
Amortization of | $ | (756 | ) | (a) | |||||||||
retirement plan items | 295 | Income tax expense | |||||||||||
$ | (461 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (463 | ) | Net of tax | |||||||||
(a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). | |||||||||||||
Balance as of December 31, 2013 | |||||||||||||
Details about accumulated | Amount reclassified from | Affected line item in | |||||||||||
other comprehensive | accumulated other | the statement where | |||||||||||
income components | comprehensive income | net income is presented | |||||||||||
(in thousands) | |||||||||||||
Unrealized gains and losses | $ | 423 | Net securities gains (losses) | ||||||||||
on available-for-sale | (169 | ) | Income tax expense | ||||||||||
securities | $ | 254 | Net of tax | ||||||||||
Amortization of | $ | (17,615 | ) | (a) | |||||||||
retirement plan items | 7,046 | Income tax expense | |||||||||||
$ | (10,569 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (10,315 | ) | Net of tax | |||||||||
(a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). | |||||||||||||
Balance at December 31, 2012 | |||||||||||||
Details about accumulated | Amount reclassified from | Affected line item in | |||||||||||
other comprehensive | accumulated other | the statement where | |||||||||||
income components | comprehensive income | net income is presented | |||||||||||
(in thousands) | |||||||||||||
Unrealized gains and losses | $ | 886 | Net securities gains (losses) | ||||||||||
on available-for-sale | (354 | ) | Income tax expense | ||||||||||
securities | $ | 532 | Net of tax | ||||||||||
Amortization of | $ | (3,885 | ) | (a) | |||||||||
retirement plan items | 1,554 | Income tax expense | |||||||||||
$ | (2,331 | ) | Net of tax | ||||||||||
Total reclassifications for the period | $ | (1,799 | ) | Net of tax | |||||||||
(a) Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS: (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the actual and required capital amounts and related ratios for the Corporation and First Financial Bank, N.A., at year-end 2014 and 2013. | ||||||||||||||||||||
To Be Well Capitalized | |||||||||||||||||||||
For Capital | Under Prompt Corrective | ||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | |||||||||||||||||||
(Dollar amounts in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total risk-based capital | |||||||||||||||||||||
Corporation – 2014 | $ | 386,622 | 17.86 | % | $ | 173,211 | 8 | % | N/A | N/A | |||||||||||
Corporation – 2013 | $ | 375,601 | 17.13 | % | $ | 175,372 | 8 | % | N/A | N/A | |||||||||||
First Financial Bank – 2014 | 358,631 | 17.13 | % | 167,472 | 8 | % | 209,340 | 10 | % | ||||||||||||
First Financial Bank – 2013 | 349,968 | 16.49 | % | 169,745 | 8 | % | 212,181 | 10 | % | ||||||||||||
Tier I risk-based capital | |||||||||||||||||||||
Corporation – 2014 | $ | 367,783 | 16.99 | % | $ | 86,605 | 4 | % | N/A | N/A | |||||||||||
Corporation – 2013 | $ | 355,533 | 16.22 | % | $ | 87,686 | 4 | % | N/A | N/A | |||||||||||
First Financial Bank – 2014 | 342,452 | 16.36 | % | 83,736 | 4 | % | 125,604 | 6 | % | ||||||||||||
First Financial Bank – 2013 | 332,644 | 15.68 | % | 84,872 | 4 | % | 127,309 | 6 | % | ||||||||||||
Tier I leverage capital | |||||||||||||||||||||
Corporation – 2014 | $ | 367,783 | 12.33 | % | $ | 119,356 | 4 | % | N/A | N/A | |||||||||||
Corporation – 2013 | $ | 355,533 | 11.69 | % | $ | 121,622 | 4 | % | N/A | N/A | |||||||||||
First Financial Bank – 2014 | 342,452 | 11.83 | % | 115,770 | 4 | % | 144,712 | 5 | % | ||||||||||||
First Financial Bank – 2013 | 332,644 | 11.4 | % | 116,711 | 4 | % | 145,889 | 5 | % | ||||||||||||
PARENT_COMPANY_CONDENSED_FINAN1
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule of Condensed Balance Sheet | |||||||||||||
December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | |||||||||||
ASSETS | |||||||||||||
Cash deposits in affiliated banks | $ | 3,639 | $ | 4,654 | |||||||||
Investments in subsidiaries | 396,486 | 388,937 | |||||||||||
Land and headquarters building, net | 5,791 | 4,688 | |||||||||||
Other | 103 | 258 | |||||||||||
Total Assets | $ | 406,019 | $ | 398,537 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Liabilities | |||||||||||||
Dividends payable | $ | 6,341 | $ | 6,405 | |||||||||
Other liabilities | 5,464 | 5,937 | |||||||||||
TOTAL LIABILITIES | 11,805 | 12,342 | |||||||||||
Shareholders' Equity | 394,214 | 386,195 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 406,019 | $ | 398,537 | |||||||||
Schedule of Condensed Income Statement | |||||||||||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
Dividends from subsidiaries | $ | 26,530 | $ | 7,130 | $ | 16,347 | |||||||
Other income | 724 | 1,144 | 1,149 | ||||||||||
Interest on borrowings | — | — | (225 | ) | |||||||||
Other operating expenses | (2,747 | ) | (3,113 | ) | (3,383 | ) | |||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 24,507 | 5,161 | 13,888 | ||||||||||
Income tax benefit | 1,156 | 988 | 1,267 | ||||||||||
Income before equity in undistributed earnings of subsidiaries | 25,663 | 6,149 | 15,155 | ||||||||||
Equity in undistributed earnings of subsidiaries | 8,109 | 25,385 | 17,657 | ||||||||||
Net income | $ | 33,772 | $ | 31,534 | $ | 32,812 | |||||||
Comprehensive income | $ | 33,212 | $ | 25,037 | $ | 35,834 | |||||||
Schedule of Condensed Cash Flow Statement | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollar amounts in thousands) | 2014 | 2013 | 2012 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net Income | $ | 33,772 | $ | 31,534 | $ | 32,812 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 196 | 173 | 172 | ||||||||||
Equity in undistributed earnings | (8,109 | ) | (25,385 | ) | (17,657 | ) | |||||||
Contribution of shares to ESOP | 1,253 | 1,218 | 1,439 | ||||||||||
Securities impairment loss recognized in earnings | — | — | 11 | ||||||||||
Securities (gains) losses | — | (420 | ) | (435 | ) | ||||||||
Restricted stock compensation | 1,072 | 611 | 488 | ||||||||||
Increase (decrease) in other liabilities | (473 | ) | (512 | ) | 610 | ||||||||
(Increase) decrease in other assets | 155 | 485 | 188 | ||||||||||
NET CASH FROM OPERATING ACTIVITIES | 27,866 | 7,704 | 17,628 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Sales of securities available-for-sale | — | 740 | 1,700 | ||||||||||
Investment in First Financial Bank Risk Management | — | — | (250 | ) | |||||||||
Purchase of furniture and fixtures | (1,299 | ) | (5 | ) | (24 | ) | |||||||
NET CASH FROM INVESTING ACTIVITIES | (1,299 | ) | 735 | 1,426 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Principal payments on borrowings | — | — | (6,196 | ) | |||||||||
Purchase of treasury stock | (14,633 | ) | — | — | |||||||||
Dividends paid | (12,949 | ) | (12,766 | ) | (12,425 | ) | |||||||
NET CASH FROM FINANCING ACTIVITES | (27,582 | ) | (12,766 | ) | (18,621 | ) | |||||||
NET (DECREASE) INCREASE IN CASH | (1,015 | ) | (4,327 | ) | 433 | ||||||||
CASH, BEGINNING OF YEAR | 4,654 | 8,981 | 8,548 | ||||||||||
CASH, END OF YEAR | $ | 3,639 | $ | 4,654 | $ | 8,981 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||||
Cash paid during the year for: | |||||||||||||
Interest | $ | — | $ | — | $ | 225 | |||||||
Income taxes | $ | 9,354 | $ | 13,822 | $ | 12,638 | |||||||
SELECTED_QUARTERLY_DATA_UNAUDI1
SELECTED QUARTERLY DATA (UNAUDITED): (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Interest | Interest | Net Interest | Provision | Net Income | Net Income | |||||||||||||||||||
Income | Expense | Income | For Loan | Per Share | |||||||||||||||||||||
Losses | |||||||||||||||||||||||||
31-Mar | $ | 28,824 | $ | 1,682 | $ | 27,142 | $ | 1,960 | $ | 7,831 | $ | 0.59 | |||||||||||||
30-Jun | $ | 28,115 | $ | 1,509 | $ | 26,606 | $ | (356 | ) | $ | 8,488 | $ | 0.63 | ||||||||||||
30-Sep | $ | 28,376 | $ | 1,231 | $ | 27,145 | $ | 1,506 | $ | 8,272 | $ | 0.62 | |||||||||||||
31-Dec | $ | 28,043 | $ | 1,104 | $ | 26,939 | $ | 1,962 | $ | 9,181 | $ | 0.71 | |||||||||||||
2013 | |||||||||||||||||||||||||
(Dollar amounts in thousands) | Interest | Interest | Net | Provision | Net Income | Net Income | |||||||||||||||||||
Income | Expense | Interest | For Loan | Per Share | |||||||||||||||||||||
Income | Losses | ||||||||||||||||||||||||
31-Mar | $ | 28,942 | $ | 2,769 | $ | 26,173 | $ | 3,021 | $ | 7,693 | $ | 0.58 | |||||||||||||
30-Jun | $ | 28,305 | $ | 2,567 | $ | 25,738 | $ | 2,960 | $ | 6,446 | $ | 0.48 | |||||||||||||
30-Sep | $ | 29,719 | $ | 1,921 | $ | 27,798 | $ | 495 | $ | 8,472 | $ | 0.64 | |||||||||||||
31-Dec | $ | 29,255 | $ | 1,704 | $ | 27,551 | $ | 1,384 | $ | 8,923 | $ | 0.67 | |||||||||||||
BUSINESS_AND_SIGNIFICANT_ACCOU2
BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES: (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
branch | |||
subsidiary | |||
Property, Plant and Equipment [Line Items] | |||
Number of investment subsidiaries (subsidiary) | 2 | ||
Number of branches entity operates (branches) | 71 | ||
Transfer to other real estate | $1,400,000 | $2,500,000 | $7,100,000 |
Fair value of indemnification assets reimbursement from FDIC | 12,100,000 | ||
FDIC Reimburse (up to 95%) (percent) | 95.00% | ||
Increases (decreases) in the FDIC indemnification asset | -687,000 | 1,400,000 | 2,200,000 |
Servicing fees, net | 1,400,000 | 1,400,000 | 1,300,000 |
Repayment of deferred fees and interest in years | 10 years | ||
Expenses for deferred compensation | 138,000 | 149,000 | 142,000 |
Deferred compensation liability, current | 2,400,000 | 2,600,000 | |
Payment of incentive rewards | 15 years | ||
Compensation liability | 14,000,000 | 14,500,000 | |
Vesting period | 3 years | ||
Officers' compensation expense | 654,000 | 856,000 | 1,300,000 |
Deferred compensation liablity incentive plan | 782,000 | 1,200,000 | |
Income tax examination, description | The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. | ||
Likelihood of unfavorable settlement (percent) | 50.00% | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 10 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Finite-lived intangible asset, useful life | 12 years | ||
Furniture and Fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | P3Y | ||
Furniture and Fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | 5 | ||
Buildings And Leasehold Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | 33 | ||
Buildings And Leasehold Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, estimated useful lives | 39 | ||
Vigo County | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 11 | ||
Daviess County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Clay County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 4 | ||
Gibson County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Greene County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Knox County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 3 | ||
Parke County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 5 | ||
Putnam County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Sullivan County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 4 | ||
Vanderburgh County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Vermillion County, Indiana | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 4 | ||
Champaign County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 5 | ||
Clark County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Coles County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 3 | ||
Crawford County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Franklin County, Illinois [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Jasper County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Lawrence County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Livingston County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Marion County, Illinois [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
McLean County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 3 | ||
Montgomery County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
Richland County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 2 | ||
Vermilion County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 7 | ||
Wayne County, Illinois | |||
Property, Plant and Equipment [Line Items] | |||
Number of branches entity operates (branches) | 1 | ||
First Financial Bank [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Investments in subsidiaries | $690,100,000 |
FAIR_VALUES_OF_FINANCIAL_INSTR2
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value measurement | ||
Securities available-for-sale | $897,053 | $914,560 |
U.S. Government entity mortgage-backed securities | ||
Fair value measurement | ||
Securities available-for-sale | 1,467 | 1,633 |
Mortgage-backed securities, residential | ||
Fair value measurement | ||
Securities available-for-sale | 187,936 | 197,764 |
Mortgage-backed securities, commercial | ||
Fair value measurement | ||
Securities available-for-sale | 17 | 4,391 |
Collateralized mortgage obligations | ||
Fair value measurement | ||
Securities available-for-sale | 484,655 | 506,741 |
State and municipal obligations | ||
Fair value measurement | ||
Securities available-for-sale | 207,675 | 194,987 |
Collateralized debt obligations | ||
Fair value measurement | ||
Securities available-for-sale | 15,303 | 9,044 |
Level 1 | ||
Fair value measurement | ||
Securities available-for-sale | 0 | 0 |
Level 2 | ||
Fair value measurement | ||
Securities available-for-sale | 875,850 | 900,991 |
Derivative Assets | 1,062 | 1,195 |
Derivative Liabilities | -1,062 | -1,195 |
Level 2 | U.S. Government entity mortgage-backed securities | ||
Fair value measurement | ||
Securities available-for-sale | 1,467 | 1,633 |
Level 2 | Mortgage-backed securities, residential | ||
Fair value measurement | ||
Securities available-for-sale | 187,936 | 197,764 |
Level 2 | Mortgage-backed securities, commercial | ||
Fair value measurement | ||
Securities available-for-sale | 17 | 4,391 |
Level 2 | Collateralized mortgage obligations | ||
Fair value measurement | ||
Securities available-for-sale | 484,655 | 506,741 |
Level 2 | State and municipal obligations | ||
Fair value measurement | ||
Securities available-for-sale | 201,775 | 190,462 |
Level 3 | ||
Fair value measurement | ||
Securities available-for-sale | 21,203 | 13,569 |
Level 3 | State and municipal obligations | ||
Fair value measurement | ||
Securities available-for-sale | 5,900 | 4,525 |
Level 3 | Collateralized debt obligations | ||
Fair value measurement | ||
Securities available-for-sale | $15,303 | $9,044 |
FAIR_VALUES_OF_FINANCIAL_INSTR3
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Total realized/unrealized gains or losses | ||
Beginning balance, January 1 | $13,569 | $16,033 |
Included in earnings | 0 | 904 |
Included in other comprehensive income | 7,100 | 3,155 |
Purchases | 4,000 | -1,186 |
Settlements | -3,466 | -5,337 |
Ending balance, December 31 | 21,203 | 13,569 |
State and municipal obligations | ||
Total realized/unrealized gains or losses | ||
Beginning balance, January 1 | 4,525 | 9,911 |
Included in earnings | 0 | |
Included in other comprehensive income | 0 | |
Purchases | 4,000 | -1,186 |
Settlements | -2,625 | -4,200 |
Ending balance, December 31 | 5,900 | 4,525 |
Collateralized debt obligations | ||
Total realized/unrealized gains or losses | ||
Beginning balance, January 1 | 9,044 | 6,122 |
Included in earnings | 0 | 904 |
Included in other comprehensive income | 7,100 | 3,155 |
Settlements | -841 | -1,137 |
Ending balance, December 31 | $15,303 | $9,044 |
FAIR_VALUES_OF_FINANCIAL_INSTR4
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.00% | |
Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 50.00% | |
State and municipal obligations | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $5,900 | $4,525 |
Valuation Technique(s) | Discounted cash flow | Discounted cash flow |
Unobservable Input(s) | Discount rate | Discount rate |
State and municipal obligations | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 3.05% | 3.05% |
State and municipal obligations | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 5.50% | 5.50% |
State And Municipal Obligations | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.00% | 0.00% |
State And Municipal Obligations | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input(s) | Probability of default | Probability of default |
Other Real Estate | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 3,965 | 5,291 |
Valuation Technique(s) | Sales comparison/income approach | Sales comparison/income approach |
Unobservable Input(s) | Discount rate for age of appraisal and market conditions | Discount rate for age of appraisal and market conditions |
Other Real Estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 5.00% | 5.00% |
Other Real Estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 20.00% | 20.00% |
Impaired Loans | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $11,477 | $13,765 |
Valuation Technique(s) | Sales comparison/income approach | Sales comparison/income approach |
Unobservable Input(s) | Discount rate for age of appraisal and market conditions | Discount rate for age of appraisal and market conditions |
Impaired Loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 0.00% | 0.00% |
Impaired Loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of Inputs (percent) | 50.00% | 50.00% |
FAIR_VALUES_OF_FINANCIAL_INSTR5
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans identified as impaired by class of loans | ||
Carrying Value | $13,388 | $16,923 |
Allowance for Loan Losses Allocated | 1,911 | 3,158 |
Fair value | 11,477 | 13,765 |
Commercial & Industrial | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 5,874 | 8,620 |
Allowance for Loan Losses Allocated | 1,056 | 1,612 |
Fair value | 4,818 | 7,008 |
Farmland | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Non Farm, Non Residential | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 6,654 | 7,204 |
Allowance for Loan Losses Allocated | 753 | 1,500 |
Fair value | 5,901 | 5,704 |
Agriculture | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
All Other Commercial | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 827 | 1,062 |
Allowance for Loan Losses Allocated | 102 | 46 |
Fair value | 725 | 1,016 |
First Liens | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 33 | 37 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 33 | 37 |
Home Equity | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Junior Liens | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Multifamily | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
All Other Residential | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
Motor Vehicle | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | 0 | 0 |
All Other Consumer | ||
Loans identified as impaired by class of loans | ||
Carrying Value | 0 | 0 |
Allowance for Loan Losses Allocated | 0 | 0 |
Fair value | $0 | $0 |
FAIR_VALUES_OF_FINANCIAL_INSTR6
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $14,050 | $14,079 | $14,983 | $15,180 |
Securities available-for-sale | 897,053 | 914,560 | ||
Restricted Stock | 16,404 | 21,057 | ||
FDIC Indemnification Asset | -74 | 1,055 | 2,632 | |
Accrued interest receivable | 11,593 | 11,554 | ||
Deposits | -2,457,197 | -2,458,791 | ||
Level 1 | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 22,597 | 22,455 | ||
Securities available-for-sale | 0 | 0 | ||
Level 2 | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 55,505 | 48,578 | ||
Federal funds sold | 8,000 | 4,276 | ||
Securities available-for-sale | 875,850 | 900,991 | ||
FDIC Indemnification Asset | -74 | 1,055 | ||
Accrued interest receivable | 3,183 | 3,279 | ||
Deposits | -2,459,703 | -2,463,330 | ||
Short-term borrowings | -48,015 | -59,592 | ||
Federal Home Loan Bank advances | -13,605 | -60,258 | ||
Accrued interest payable | -456 | -750 | ||
Level 3 | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Securities available-for-sale | 21,203 | 13,569 | ||
Loans, net | 1,810,885 | 1,816,726 | ||
Accrued interest receivable | 8,410 | 8,275 | ||
Reported Value Measurement [Member] | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 78,102 | 71,033 | ||
Federal funds sold | 8,000 | 4,276 | ||
Securities available-for-sale | 897,053 | 914,560 | ||
Restricted Stock | 16,404 | 21,057 | ||
Loans, net | 1,762,589 | 1,771,360 | ||
FDIC Indemnification Asset | -74 | 1,055 | ||
Accrued interest receivable | 11,593 | 11,554 | ||
Deposits | -2,457,197 | -2,458,791 | ||
Short-term borrowings | -48,015 | -59,592 | ||
Federal Home Loan Bank advances | -12,886 | -58,288 | ||
Accrued interest payable | -456 | -750 | ||
Estimate of Fair Value Measurement [Member] | ||||
Carrying amount and estimated fair value of financial instruments | ||||
Cash and due from banks | 78,102 | 71,033 | ||
Federal funds sold | 8,000 | 4,276 | ||
Securities available-for-sale | 897,053 | 914,560 | ||
Loans, net | 1,810,885 | 1,816,726 | ||
FDIC Indemnification Asset | -74 | 1,055 | ||
Accrued interest receivable | 11,593 | 11,554 | ||
Deposits | -2,459,703 | -2,463,330 | ||
Short-term borrowings | -48,015 | -59,592 | ||
Federal Home Loan Bank advances | -13,605 | -60,258 | ||
Accrued interest payable | ($456) | ($750) |
FAIR_VALUES_OF_FINANCIAL_INSTR7
FAIR VALUES OF FINANCIAL INSTRUMENTS: (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Carrying amount and estimated fair value of financial instruments | ||
Gain On Sale Of Securities Net | $2,000 | $5,000 |
Valuation allowance for impaired loans | 1,911,000 | 3,158,000 |
Provision for impaired loan losses | -1,200,000 | 900,000 |
Other Real Estate Commercial loan | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 3,000,000 | 3,900,000 |
Other Real Estate Residential Loan | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 1,000,000 | 1,400,000 |
Municipal Securities | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 4,000,000 | 1,200,000 |
Impaired Loans | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 11,477,000 | 13,765,000 |
Valuation allowance for impaired loans | 1,900,000 | 3,100,000 |
Other Real Estate | Level 3 | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value | 3,965,000 | 5,291,000 |
Assets fair value adjustment increase (decrease) | ($1,100,000) | ($1,100,000) |
Minimum | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0.00% | |
Minimum | Impaired Loans | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 0.00% | 0.00% |
Minimum | Other Real Estate | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 5.00% | 5.00% |
Maximum | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 50.00% | |
Maximum | Impaired Loans | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% |
Maximum | Other Real Estate | ||
Carrying amount and estimated fair value of financial instruments | ||
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
RESTRICTIONS_ON_CASH_AND_DUE_F1
RESTRICTIONS ON CASH AND DUE FROM BANKS: (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Restrictions On Cash and Due From Banks Disclosure [Abstract] | ||
Cash Reserve Balance | $10.50 | $11.50 |
SECURITIES_Details
SECURITIES: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | $880,946 | $920,897 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 24,296 | 20,347 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8,189 | 26,684 |
Securities available-for-sale | 897,053 | 914,560 |
U.S. Government entity mortgage-backed securities | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 1,411 | 1,623 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 56 | 10 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Securities available-for-sale | 1,467 | 1,633 |
Mortgage-backed securities, residential | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 180,673 | 191,995 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 7,593 | 7,761 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 330 | 1,992 |
Securities available-for-sale | 187,936 | 197,764 |
Mortgage-backed securities, commercial | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 17 | 4,642 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 1 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 252 |
Securities available-for-sale | 17 | 4,391 |
Collateralized mortgage obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 489,765 | 521,148 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,513 | 1,492 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 7,623 | 15,899 |
Securities available-for-sale | 484,655 | 506,741 |
State and municipal obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 198,875 | 190,521 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 9,019 | 6,388 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 219 | 1,922 |
Securities available-for-sale | 207,675 | 194,987 |
Collateralized debt obligations | ||
Amortized cost and fair value of investments classified as available for sale | ||
TOTAL | 10,205 | 10,968 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 5,115 | 4,695 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 17 | 6,619 |
Securities available-for-sale | $15,303 | $9,044 |
SECURITIES_Details_1
SECURITIES: (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $356 | $5,110 | $25,812 |
Gross gains | 0 | 423 | 891 |
Gross losses | ($1) | $0 | ($5) |
SECURITIES_Details_2
SECURITIES: (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | ||
Due in one year or less | $7,607 | |
Due after one but within five years | 37,409 | |
Due after five but within ten years | 86,911 | |
Due after ten years | 78,564 | |
Total of securities having specified maturity period | 210,491 | |
Mortgage-backed securities and collateralized mortgage obligations | 670,455 | |
TOTAL | 880,946 | 920,897 |
Fair Value | ||
Due in one year or less | 7,700 | |
Due after one but within five years | 38,891 | |
Due after five but within ten years | 90,908 | |
Due after ten years | 86,946 | |
Total of securities having specified maturities period | 224,445 | |
Mortgage-backed securities and collateralized mortgage obligations | 672,608 | |
TOTAL | $897,053 | $914,560 |
SECURITIES_Details_3
SECURITIES: (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Less Than 12 Months | ||
Fair Value | $57,332 | $502,714 |
Unrealized Losses | -163 | -17,370 |
More Than 12 Months | ||
Fair Value | 299,536 | 45,958 |
Unrealized Losses | -8,026 | -9,314 |
Total | ||
Fair Value | 356,868 | 548,672 |
Unrealized Losses | -8,189 | -26,684 |
Mortgage-backed securities, residential | ||
Less Than 12 Months | ||
Fair Value | 0 | 52,524 |
Unrealized Losses | 0 | -1,645 |
More Than 12 Months | ||
Fair Value | 23,849 | 6,022 |
Unrealized Losses | -330 | -347 |
Total | ||
Fair Value | 23,849 | 58,546 |
Unrealized Losses | -330 | -1,992 |
Mortgage-backed securities, commercial | ||
Less Than 12 Months | ||
Fair Value | 0 | |
Unrealized Losses | 0 | |
More Than 12 Months | ||
Fair Value | 4,357 | |
Unrealized Losses | -252 | |
Total | ||
Fair Value | 4,357 | |
Unrealized Losses | -252 | |
Collateralized mortgage obligations | ||
Less Than 12 Months | ||
Fair Value | 50,832 | 406,291 |
Unrealized Losses | -128 | -13,979 |
More Than 12 Months | ||
Fair Value | 264,940 | 29,588 |
Unrealized Losses | -7,495 | -1,920 |
Total | ||
Fair Value | 315,772 | 435,879 |
Unrealized Losses | -7,623 | -15,899 |
State and municipal obligations | ||
Less Than 12 Months | ||
Fair Value | 6,500 | 43,899 |
Unrealized Losses | -35 | -1,746 |
More Than 12 Months | ||
Fair Value | 10,547 | 2,305 |
Unrealized Losses | -184 | -176 |
Total | ||
Fair Value | 17,047 | 46,204 |
Unrealized Losses | -219 | -1,922 |
Collateralized debt obligations | ||
Less Than 12 Months | ||
Fair Value | 0 | 0 |
Unrealized Losses | 0 | 0 |
More Than 12 Months | ||
Fair Value | 200 | 3,686 |
Unrealized Losses | -17 | -6,619 |
Total | ||
Fair Value | 200 | 3,686 |
Unrealized Losses | ($17) | ($6,619) |
SECURITIES_Details_4
SECURITIES: (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rollforward of the credit losses recognized in earnings | |||
Beginning balance, January 1, | $14,079 | $14,983 | $15,180 |
Amounts related to the credit loss for which other-than-temporary impairment was previously recognized | 11 | ||
Amounts realized for securities sold during the period | -208 | ||
Reductions for increase in cash flows expected to be collected that are recognized over the remaining life of the security | -29 | -904 | 0 |
Increases to the amount related to the credit loss for which other- than-temporary impairment was previously recognized | 0 | 0 | 0 |
Ending balance, December 31, | $14,050 | $14,079 | $14,983 |
SECURITIES_Details_Textual
SECURITIES: (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities pledged as collateral | $412,500,000 | $361,900,000 | |||
Gain on sale of investments | 2,000 | 5,000 | |||
Loss on sale of investments | 4,000 | 2,000 | |||
Number of investment securities with an amortized cost greater than fair value (investments) | 108 | ||||
Cumulative OTTI charges | 14,050,000 | 14,079,000 | 14,983,000 | 15,180,000 | |
Amortized Cost | 880,946,000 | 920,897,000 | |||
Securities available-for-sale | 897,053,000 | 914,560,000 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 8,189,000 | 26,684,000 | |||
Standard Poors | Minimum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Credit quality indicator pricing | 45.44 | ||||
Standard Poors | Maximum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Credit quality indicator pricing | 92.06 | ||||
Moody Investor Service | Minimum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Credit quality indicator pricing | 7.22 | ||||
Moody Investor Service | Maximum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Credit quality indicator pricing | 96.04 | ||||
Other Than Temporarily Impaired Cdo [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Number of CDO's | 3 | ||||
Contractual balance | 25,800,000 | ||||
Reduced balance | 15,100,000 | ||||
Interest payment received | 1,800,000 | ||||
Cumulative OTTI charges | 14,000,000 | ||||
Other comprehensive income net | 5,100,000 | ||||
Base discount rate, which is subject to an additional margin | 3 month LIBOR | ||||
Amortized Cost | 218,000 | ||||
Securities available-for-sale | 200,000 | ||||
Other Than Temporarily Impaired Cdo [Member] | Minimum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Severity of OTTI (as a percent) | 28.00% | ||||
Other Than Temporarily Impaired Cdo [Member] | Maximum | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Severity of OTTI (as a percent) | 93.00% | ||||
Collateralized debt obligations | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Payment received | 1,300,000 | ||||
CDO payment receivable | $200,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Other Than Temporarily Impaired Cdo [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Available For Sale Securities Present Value Of Future Cash Flows Discount Rate, Basis Point Spread on Variable Rate Basis, Minimum | 1.60% | ||||
Available For Sale Securities Present Value Of Future Cash Flows Discount Rate, Basis Point Spread on Variable Rate Basis, Maximum | 1.80% |
LOANS_Details
LOANS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | $1,780,350 | $1,792,548 | ||
Less (plus): deferred (fees) costs | 1,078 | -1,120 | ||
Allowance for loan losses | -18,839 | -20,068 | -21,958 | -19,241 |
TOTAL | 1,762,589 | 1,771,360 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 1,044,522 | 1,042,138 | ||
Residential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | 469,172 | 482,377 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total gross loans | $266,656 | $268,033 |
LOANS_Details_Textual
LOANS: (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $3 | $3.30 |
Loans serviced for others, not reported as assets | 521.7 | 539 |
Escrow deposit | 2.59 | 2.61 |
Fair value, based on valuations | 2.9 | 3 |
Assumptions used to estimate fair value, discount rate (percent) | 10.00% | 10.00% |
Assumptions used to estimate fair value, weighted average life | 8 years | |
Director and Executive Officer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 55.6 | |
Advances | 13.7 | |
Repayments | 28.5 | |
Increase (Decrease) | -0.2 | |
Ending Balance | $40.60 | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assumptions used to estimate fair value, prepayment speed (percent) | 403.00% | 550.00% |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assumptions used to estimate fair value, prepayment speed (percent) | 112.00% | 110.00% |
LOANS_Details_1
LOANS: (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Servicing Rights | ||||
Beginning of year | $2,065 | $2,225 | $2,429 | |
Additions | 414 | 588 | 868 | [1] |
Amortized to expense | -616 | -748 | -1,072 | |
End of year | $1,863 | $2,065 | $2,225 | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjkzYWJjOTFjMTJlNjRlNjVhODMyNjIxNmI4ZTU4NmJkfFRleHRTZWxlY3Rpb246OEIzOUUxODgwOTgxRTE0RDVBQzJBNTNCMDM0MkM3OEUM} |
ACQUISITIONS_AND_FDIC_INDEMNIF2
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Details Textual) (USD $) | 12 Months Ended | 54 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 16, 2013 | |
drive-up_facility | |||||
branch | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $39,489,000 | $39,489,000 | $39,489,000 | ||
Reimbursements from the FDIC | -1,050,000 | -352,000 | -24,200,000 | ||
Outstanding balance for reimbursement of losses | -74,000 | 1,055,000 | 1,055,000 | 2,632,000 | |
Net changes in losses and expenses added | 79,000 | 1,225,000 | |||
Covered loans | 7,300,000 | 18,500,000 | 18,500,000 | ||
Bank of America | |||||
Business Acquisition [Line Items] | |||||
Number of bank branches acquired | 7 | ||||
Number of drive-up facilities acquired | 2 | ||||
Cash and equivalents | 177,700,000 | ||||
Loans | 1,900,000 | ||||
Property, plant, and equipment | 5,900,000 | ||||
Customer related core deposit intangible assets | 2,200,000 | ||||
Deposits | 189,300,000 | ||||
Other liabilities | 300,000 | ||||
Goodwill | 1,900,000 | ||||
Goodwill recorded, which is expected to be tax deductable | 1,900 | ||||
First National Bank Of Danville | |||||
Business Acquisition [Line Items] | |||||
Losses on assets, threshold under loss-sharing agreement (up to $29 million) | $29,000,000 | ||||
Percentage of losses to be reimbursed by the FDIC, on losses up to the threshold amount (percent) | 80.00% | ||||
Percentage of losses to be reimbursed by the FDIC, on losses exceeding the threshold amount (percent) | 95.00% |
ACQUISITIONS_AND_FDIC_INDEMNIF3
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ||
Beginning balance | $10,085 | $17,118 |
Discount accretion | 0 | -36 |
Disposals | -3,711 | -6,997 |
Total Covered Assets | 6,374 | 10,085 |
Commercial | ||
Business Acquisition [Line Items] | ||
Beginning balance | 7,676 | 13,654 |
Discount accretion | 0 | -24 |
Disposals | -2,873 | -5,954 |
Total Covered Assets | 4,803 | 7,676 |
Consumer | ||
Business Acquisition [Line Items] | ||
Beginning balance | 2,409 | 3,464 |
Discount accretion | 0 | -12 |
Disposals | -838 | -1,043 |
Total Covered Assets | $1,571 | $2,409 |
ACQUISITIONS_AND_FDIC_INDEMNIF4
ACQUISITIONS AND FDIC INDEMNIFICATION ASSET: (Details 2) (USD $) | 12 Months Ended | 54 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
FDIC Indemnification Asset [Roll Forward] | |||
Beginning balance | $1,055 | $2,632 | |
Accretion | 0 | 0 | |
Net changes in losses and expenses added | -79 | -1,225 | |
Reimbursements from the FDIC | -1,050 | -352 | -24,200 |
TOTAL | ($74) | $1,055 | $1,055 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta
ALLOWANCE FOR LOAN LOSSES: (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Loan Losses: | ||||||
Beginning balance | $20,068 | $21,958 | $19,241 | |||
Provision for loan losses | 4,385 | [1] | 6,475 | [2] | 11,000 | [3] |
Loans charged -off | -9,450 | -13,387 | -10,414 | |||
Recoveries | 3,836 | 5,022 | 2,131 | |||
Ending Balance | 18,839 | 20,068 | 21,958 | |||
Increase in provision for decrease in FDIC indemnification asset | 687 | 1,400 | 2,200 | |||
Commercial | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 12,450 | 10,987 | 12,119 | |||
Provision for loan losses | 1,053 | [1] | 3,144 | [2] | 2,400 | [3] |
Loans charged -off | -3,522 | -4,830 | -4,176 | |||
Recoveries | 934 | 3,149 | 644 | |||
Ending Balance | 10,915 | 12,450 | 10,987 | |||
Residential | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 1,585 | 5,426 | 2,728 | |||
Provision for loan losses | 134 | [1] | 629 | [2] | 5,196 | [3] |
Loans charged -off | -1,143 | -4,942 | -2,598 | |||
Recoveries | 798 | 472 | 100 | |||
Ending Balance | 1,374 | 1,585 | 5,426 | |||
Consumer | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 3,650 | 3,879 | 3,889 | |||
Provision for loan losses | 3,401 | [1] | 1,985 | [2] | 2,243 | [3] |
Loans charged -off | -4,785 | -3,615 | -3,640 | |||
Recoveries | 2,104 | 1,401 | 1,387 | |||
Ending Balance | 4,370 | 3,650 | 3,879 | |||
Unallocated | ||||||
Allowance for Loan Losses: | ||||||
Beginning balance | 2,383 | 1,666 | 505 | |||
Provision for loan losses | -203 | [1] | 717 | [2] | 1,161 | [3] |
Loans charged -off | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Ending Balance | $2,180 | $2,383 | $1,666 | |||
[1] | Provision before increase of $687 thousand in 2014 for decrease in FDIC indemnification asset | |||||
[2] | Provision before increase of $1.4 million in 2013 for increase in FDIC indemnification asset | |||||
[3] | Provision before decrease of $2.2 million in 2012 for increase in FDIC indemnification asset |
ALLOWANCE_FOR_LOAN_LOSSES_Deta1
ALLOWANCE FOR LOAN LOSSES: (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | $1,911 | $3,158 | ||
Collectively evaluated for impairment | 16,648 | 15,862 | ||
Acquired with deteriorated credit quality | 280 | 1,048 | ||
BALANCE AT END OF YEAR | 18,839 | 20,068 | 21,958 | 19,241 |
Loans | ||||
Individually evaluated for impairment | 14,606 | 18,862 | ||
Collectively evaluated for impairment | 1,767,701 | 1,771,562 | ||
Acquired with deteriorated credit quality | 6,518 | 10,398 | ||
BALANCE AT END OF YEAR | 1,788,825 | 1,800,822 | ||
Commercial | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 1,911 | 3,158 | ||
Collectively evaluated for impairment | 8,733 | 8,421 | ||
Acquired with deteriorated credit quality | 271 | 871 | ||
BALANCE AT END OF YEAR | 10,915 | 12,450 | 10,987 | 12,119 |
Loans | ||||
Individually evaluated for impairment | 14,573 | 18,825 | ||
Collectively evaluated for impairment | 1,030,949 | 1,020,771 | ||
Acquired with deteriorated credit quality | 4,887 | 8,001 | ||
BALANCE AT END OF YEAR | 1,050,409 | 1,047,597 | ||
Residential | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,365 | 1,408 | ||
Acquired with deteriorated credit quality | 9 | 177 | ||
BALANCE AT END OF YEAR | 1,374 | 1,585 | 5,426 | 2,728 |
Loans | ||||
Individually evaluated for impairment | 33 | 37 | ||
Collectively evaluated for impairment | 468,872 | 481,439 | ||
Acquired with deteriorated credit quality | 1,631 | 2,397 | ||
BALANCE AT END OF YEAR | 470,536 | 483,873 | ||
Consumer | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4,370 | 3,650 | ||
Acquired with deteriorated credit quality | 0 | 0 | ||
BALANCE AT END OF YEAR | 4,370 | 3,650 | 3,879 | 3,889 |
Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 267,880 | 269,352 | ||
Acquired with deteriorated credit quality | 0 | 0 | ||
BALANCE AT END OF YEAR | 267,880 | 269,352 | ||
Unallocated | ||||
Ending Balance Attributable to Loans | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,180 | 2,383 | ||
Acquired with deteriorated credit quality | 0 | 0 | ||
BALANCE AT END OF YEAR | $2,180 | $2,383 | $1,666 | $505 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta2
ALLOWANCE FOR LOAN LOSSES: (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unpaid principal balance | |||
With no related allowance recorded | $0 | $0 | |
TOTAL | 16,394 | 21,288 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 13,388 | 16,923 | |
TOTAL | 14,606 | 18,946 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 1,911 | 3,158 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
TOTAL | 16,732 | 28,726 | 30,580 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
TOTAL | 0 | 330 | 179 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
TOTAL | 0 | 330 | 0 |
Commercial & Industrial | |||
Unpaid principal balance | |||
With no related allowance recorded | 1,200 | 2,120 | |
With an allowance recorded | 7,388 | 10,134 | |
Recorded Investment | |||
With no related allowance recorded: | 926 | 1,918 | |
With an allowance recorded: | 5,874 | 8,620 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 1,056 | 1,612 | |
Average recorded investment | |||
With no related allowance recorded: | 2,589 | 1,555 | 1,013 |
With an allowance recorded: | 6,177 | 13,029 | 16,738 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 217 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 217 | 0 |
Farmland | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 356 | 891 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 113 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 113 | 0 |
Non Farm, Non Residential | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 271 | |
With an allowance recorded | 6,654 | 7,664 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 105 | |
With an allowance recorded: | 6,654 | 7,204 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 753 | 1,500 | |
Average recorded investment | |||
With no related allowance recorded: | 58 | 26 | 1,679 |
With an allowance recorded: | 6,698 | 7,921 | 5,000 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 179 | ||
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Agriculture | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
All Other Commercial | |||
Unpaid principal balance | |||
With no related allowance recorded | 292 | 0 | |
With an allowance recorded | 827 | 1,062 | |
Recorded Investment | |||
With no related allowance recorded: | 292 | 0 | |
With an allowance recorded: | 827 | 1,062 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 102 | 46 | |
Average recorded investment | |||
With no related allowance recorded: | 58 | 0 | 0 |
With an allowance recorded: | 1,112 | 2,979 | 1,362 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
First Liens | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 33 | 37 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 33 | 37 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 5 | 7 | 150 |
With an allowance recorded: | 35 | 524 | 1,230 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Home Equity | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 113 | 75 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Junior Liens | |||
Unpaid principal balance | |||
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With an allowance recorded: | 176 | ||
Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
Multifamily | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 50 |
With an allowance recorded: | 0 | 2,216 | 2,216 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
All Other Residential | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
Motor Vehicle | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | 0 | 0 | 0 |
All Other Consumer | |||
Unpaid principal balance | |||
With no related allowance recorded | 0 | 0 | |
With an allowance recorded | 0 | 0 | |
Recorded Investment | |||
With no related allowance recorded: | 0 | 0 | |
With an allowance recorded: | 0 | 0 | |
Allowance for loan losses | |||
Allowance for Loan Losses Allocated | 0 | 0 | |
Average recorded investment | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Interest Income Recognized | |||
With no related allowance recorded: | 0 | 0 | 0 |
With an allowance recorded: | 0 | 0 | 0 |
Cash Basis Interest Income Recognized | |||
With an allowance recorded: | 0 | 0 | 0 |
With no related allowance recorded: | $0 | $0 | $0 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta3
ALLOWANCE FOR LOAN LOSSES: (Details 3) (Nonperforming Financing Receivable, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | $873 |
Accrual | 4,632 |
Non-accrual | 15,034 |
Commercial & Industrial | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 0 |
Accrual | 7 |
Non-accrual | 3,720 |
Farmland | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 0 |
Accrual | 0 |
Non-accrual | 79 |
Non Farm, Non Residential | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 0 |
Accrual | 10 |
Non-accrual | 3,388 |
Agriculture | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 0 |
Accrual | 0 |
Non-accrual | 767 |
All Other Commercial | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 0 |
Accrual | 0 |
Non-accrual | 1,258 |
First Liens | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 603 |
Accrual | 4,357 |
Non-accrual | 3,861 |
Home Equity | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 88 |
Accrual | 0 |
Non-accrual | 404 |
Junior Liens | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 12 |
Accrual | 0 |
Non-accrual | 275 |
Multifamily | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 0 |
Accrual | 0 |
Non-accrual | 0 |
All Other Residential | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 5 |
Accrual | 0 |
Non-accrual | 111 |
Motor Vehicle | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 162 |
Accrual | 257 |
Non-accrual | 210 |
All Other Consumer | |
Aging of recorded investment in loans by past due category and class of loans | |
Loans Past Due Over 90 Day Still Accruing | 3 |
Accrual | 1 |
Non-accrual | $961 |
ALLOWANCE_FOR_LOAN_LOSSES_ALLO
ALLOWANCE FOR LOAN LOSSES: ALLOWANCE FOR LOAN LOSSES: (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | ||
January 1, | $17,301 | $21,285 |
Added | 2,311 | 2,672 |
Charged Off | -1,271 | -82 |
Payments | -3,583 | -6,574 |
December 31, | 14,758 | 17,301 |
Commercial | ||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | ||
January 1, | 12,327 | 16,474 |
Added | 441 | 1,561 |
Charged Off | -1,069 | 0 |
Payments | -2,744 | -5,708 |
December 31, | 8,955 | 12,327 |
Residential | ||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | ||
January 1, | 4,330 | 4,107 |
Added | 1,523 | 841 |
Charged Off | -93 | -32 |
Payments | -571 | -586 |
December 31, | 5,189 | 4,330 |
Consumer | ||
Financing Receivable, Impaired, Troubled Debt Restructuring [Roll Forward] | ||
January 1, | 644 | 704 |
Added | 347 | 270 |
Charged Off | -109 | -50 |
Payments | -268 | -280 |
December 31, | $614 | $644 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta4
ALLOWANCE FOR LOAN LOSSES: (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | $12,277 | $11,705 |
60-89 Days Past Due | 2,145 | 2,858 |
Greater than 90 days Past Due | 5,987 | 12,977 |
Total Past Due | 20,409 | 27,540 |
Current | 1,768,416 | 1,773,282 |
BALANCE AT END OF YEAR | 1,788,825 | 1,800,822 |
Commercial & Industrial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 574 | 1,076 |
60-89 Days Past Due | 416 | 266 |
Greater than 90 days Past Due | 3,046 | 7,900 |
Total Past Due | 4,036 | 9,242 |
Current | 451,549 | 459,076 |
BALANCE AT END OF YEAR | 455,585 | 468,318 |
Farmland | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater than 90 days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 95,452 | 92,602 |
BALANCE AT END OF YEAR | 95,452 | 92,602 |
Non Farm, Non Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 1,528 | 362 |
60-89 Days Past Due | 68 | 0 |
Greater than 90 days Past Due | 202 | 2,042 |
Total Past Due | 1,798 | 2,404 |
Current | 232,440 | 239,183 |
BALANCE AT END OF YEAR | 234,238 | 241,587 |
Agriculture | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 246 | 31 |
60-89 Days Past Due | 18 | 32 |
Greater than 90 days Past Due | 502 | 0 |
Total Past Due | 766 | 63 |
Current | 149,099 | 136,388 |
BALANCE AT END OF YEAR | 149,865 | 136,451 |
All Other Commercial | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 255 | 50 |
60-89 Days Past Due | 0 | 217 |
Greater than 90 days Past Due | 0 | 188 |
Total Past Due | 255 | 455 |
Current | 115,014 | 108,184 |
BALANCE AT END OF YEAR | 115,269 | 108,639 |
First Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 6,011 | 5,594 |
60-89 Days Past Due | 963 | 1,513 |
Greater than 90 days Past Due | 1,522 | 1,701 |
Total Past Due | 8,496 | 8,808 |
Current | 308,068 | 324,141 |
BALANCE AT END OF YEAR | 316,564 | 332,949 |
Home Equity | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 141 | 307 |
60-89 Days Past Due | 33 | 7 |
Greater than 90 days Past Due | 310 | 40 |
Total Past Due | 484 | 354 |
Current | 40,043 | 41,350 |
BALANCE AT END OF YEAR | 40,527 | 41,704 |
Junior Liens | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 270 | 392 |
60-89 Days Past Due | 83 | 170 |
Greater than 90 days Past Due | 217 | 471 |
Total Past Due | 570 | 1,033 |
Current | 31,487 | 32,269 |
BALANCE AT END OF YEAR | 32,057 | 33,302 |
Multifamily | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 0 | 103 |
60-89 Days Past Due | 0 | 19 |
Greater than 90 days Past Due | 0 | 400 |
Total Past Due | 0 | 522 |
Current | 72,310 | 66,138 |
BALANCE AT END OF YEAR | 72,310 | 66,660 |
All Other Residential | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 112 | 88 |
60-89 Days Past Due | 0 | 0 |
Greater than 90 days Past Due | 5 | 1 |
Total Past Due | 117 | 89 |
Current | 8,961 | 9,169 |
BALANCE AT END OF YEAR | 9,078 | 9,258 |
Motor Vehicle | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 3,026 | 3,579 |
60-89 Days Past Due | 557 | 612 |
Greater than 90 days Past Due | 180 | 227 |
Total Past Due | 3,763 | 4,418 |
Current | 242,406 | 243,146 |
BALANCE AT END OF YEAR | 246,169 | 247,564 |
All Other Consumer | ||
Aging of recorded investment in loans by past due category and class of loans | ||
30-59 Days Past Due | 114 | 123 |
60-89 Days Past Due | 7 | 22 |
Greater than 90 days Past Due | 3 | 7 |
Total Past Due | 124 | 152 |
Current | 21,587 | 21,636 |
BALANCE AT END OF YEAR | $21,711 | $21,788 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta5
ALLOWANCE FOR LOAN LOSSES: (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Analysis of risk category of loans by class of loans | ||
Total loans | $1,780,350 | $1,792,548 |
Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 454,160 | 467,099 |
Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 93,839 | 91,056 |
Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 233,760 | 241,051 |
Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 148,102 | 134,795 |
All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 114,661 | 108,137 |
First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 315,559 | 331,817 |
Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 40,463 | 41,636 |
Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 31,962 | 33,189 |
Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 72,133 | 66,511 |
All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 9,055 | 9,224 |
Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 245,063 | 246,395 |
All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 21,593 | 21,638 |
Pass | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,116,963 | 1,139,535 |
Pass | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 393,449 | 406,650 |
Pass | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 85,772 | 86,633 |
Pass | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 186,346 | 207,115 |
Pass | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 138,713 | 128,137 |
Pass | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 101,942 | 93,515 |
Pass | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 104,854 | 114,074 |
Pass | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 12,592 | 12,883 |
Pass | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 8,112 | 8,858 |
Pass | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 69,080 | 63,073 |
Pass | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,799 | 3,643 |
Pass | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 11,135 | 11,447 |
Pass | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 3,169 | 3,507 |
Special Mention | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 79,040 | 51,127 |
Special Mention | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 29,081 | 18,968 |
Special Mention | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,618 | 3,631 |
Special Mention | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 21,765 | 13,408 |
Special Mention | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,399 | 6,482 |
Special Mention | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 4,356 | 2,297 |
Special Mention | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 5,929 | 3,834 |
Special Mention | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 375 | 274 |
Special Mention | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 173 | 60 |
Special Mention | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,801 | 1,908 |
Special Mention | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Special Mention | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 402 | 219 |
Special Mention | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 141 | 46 |
Substandard | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 70,119 | 73,416 |
Substandard | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 24,013 | 30,986 |
Substandard | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 436 | 347 |
Substandard | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 25,613 | 19,719 |
Substandard | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,746 | 105 |
Substandard | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,055 | 10,038 |
Substandard | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,733 | 8,498 |
Substandard | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,374 | 1,071 |
Substandard | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 561 | 550 |
Substandard | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,249 | 1,482 |
Substandard | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 28 | 31 |
Substandard | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 224 | 510 |
Substandard | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 87 | 79 |
Doubtful | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 4,271 | 6,176 |
Doubtful | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 2,900 | 4,069 |
Doubtful | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 36 | 809 |
Doubtful | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 177 | 0 |
Doubtful | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 33 | 44 |
Doubtful | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,035 | 995 |
Doubtful | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 6 | 113 |
Doubtful | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 63 | 67 |
Doubtful | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 48 |
Doubtful | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Doubtful | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 9 |
Doubtful | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 21 | 22 |
Not Rated | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 509,957 | 522,294 |
Not Rated | Commercial & Industrial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 4,717 | 6,426 |
Not Rated | Farmland | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 13 | 445 |
Not Rated | Non Farm, Non Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 0 | 0 |
Not Rated | Agriculture | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 67 | 71 |
Not Rated | All Other Commercial | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 1,275 | 2,243 |
Not Rated | First Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 196,008 | 204,416 |
Not Rated | Home Equity | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 26,116 | 27,295 |
Not Rated | Junior Liens | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 23,053 | 23,654 |
Not Rated | Multifamily | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 3 | 0 |
Not Rated | All Other Residential | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 7,228 | 5,550 |
Not Rated | Motor Vehicle | ||
Analysis of risk category of loans by class of loans | ||
Total loans | 233,302 | 234,210 |
Not Rated | All Other Consumer | ||
Analysis of risk category of loans by class of loans | ||
Total loans | $18,175 | $17,984 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta6
ALLOWANCE FOR LOAN LOSSES: (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan Losses: | ||
Specific reserves allocated to troubled debt restructuring | 700,000 | $2,600,000 |
Impaired loans | 14,606,000 | 18,946,000 |
Allowance for Loan Losses Allocated | 1,911,000 | 3,158,000 |
Minimum outstanding balance of non-homogeneous loans to be individually evaluated as to credit risk | 100,000 | |
Covered Loans | ||
Allowance for Loan Losses: | ||
Loans Past Due Over 90 Day Still Accruing | 37,000 | 580,000 |
Non-accrual | 274,000 | 1,100,000 |
Impaired loans | $84,000 | |
Minimum | ||
Allowance for Loan Losses: | ||
Loan modification, reduction of stated interest rate | 12 months | |
Loan modification, extension of maturity date | 12 months | |
Maximum | ||
Allowance for Loan Losses: | ||
Loan modification, reduction of stated interest rate | 5 years | |
Loan modification, extension of maturity date | 10 years |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Land | $11,353 | $11,423 |
Building and leasehold improvements | 55,074 | 54,353 |
Furniture and equipment | 45,602 | 42,546 |
Property Plant And Equipment Gross | 112,029 | 108,322 |
Less accumulated depreciation | -60,227 | -56,873 |
TOTAL | $51,802 | $51,449 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT: (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment, Gross [Abstract] | |||
Depreciation | $4.98 | $4.29 | $3.74 |
Rent expense | $0.90 | $1 | $1.10 |
PREMISES_AND_EQUIPMENT_Details2
PREMISES AND EQUIPMENT: (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment, Gross [Abstract] | |
2014 | $901 |
2015 | 720 |
2016 | 391 |
2017 | 304 |
2018 | 204 |
Thereafter | 1,188 |
Total future minimum payments due | $3,708 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS: (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Acquired finite-lived intangible asset, amount | $2.20 | |||
Goodwill aquired | 1.9 | |||
Amortization of intangible assets | $1.03 | $1.20 | $1.36 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $15,505 | $15,505 |
Accumulated Amortization | 11,604 | 10,570 |
Customer list intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 4,669 | 4,669 |
Accumulated Amortization | 4,227 | 4,120 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 10,836 | 10,836 |
Accumulated Amortization | $7,377 | $6,450 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS: (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2014 | $820 |
2015 | 679 |
2016 | 550 |
2017 | 505 |
2018 | $421 |
DEPOSITS_Details
DEPOSITS: (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturities of Time Deposits [Abstract] | |
2014 | $276,729 |
2015 | 81,933 |
2016 | 62,879 |
2017 | 33,960 |
2018 | $16,505 |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Short Term Borrowings Disclosure [Abstract] | ||
Federal funds purchased | $21,192 | $30,679 |
Repurchase-agreements | 26,823 | 28,913 |
Short-term borrowings | $48,015 | $59,592 |
SHORTTERM_BORROWINGS_Details_1
SHORT-TERM BORROWINGS: (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Short Term Borrowings Disclosure [Abstract] | ||
Average amount outstanding | $45,697 | $37,990 |
Maximum amount outstanding at a month end | $96,452 | $83,452 |
Average interest rate during year (percent) | 0.22% | 0.20% |
Interest rate at year-end (percent) | 0.20% | 0.12% |
OTHER_BORROWINGS_Details
OTHER BORROWINGS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Borrowings Disclosure [Abstract] | ||
FHLB advances | $12,886 | $58,288 |
OTHER_BORROWINGS_Details_1
OTHER BORROWINGS: (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Borrowings Disclosure [Abstract] | |
2014 | $2,297 |
2015 | 10,223 |
2016 | 366 |
2017 | 0 |
2018 | 0 |
Thereafter | 0 |
Long-term Debt | $12,886 |
OTHER_BORROWINGS_Details_textu
OTHER BORROWINGS: (Details textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
FHLB advances | $12,886,000 | $58,288,000 |
Advances, contractual due | 12,400,000 | 57,500,000 |
Premium of federal home loan bank advance | 519,000 | 816,000 |
General debt obligations, collateral pledged | 83,600,000 | 15,900,000 |
General debt obligations, maximum amount available | $210,600,000 | |
Minimum | ||
Debt Instrument [Line Items] | ||
Branch of FHLB bank, interest rate (percent) | 3.10% | 3.10% |
Maximum | ||
Debt Instrument [Line Items] | ||
Branch of FHLB bank, interest rate (percent) | 6.60% | 6.60% |
INCOME_TAXES_Details
INCOME TAXES: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal: | |||
Currently payable | $9,388 | $10,177 | $12,074 |
Deferred | 2,120 | 740 | -455 |
Federal income tax expense (benefit), continuing operations | 11,508 | 10,917 | 11,619 |
State: | |||
Currently payable | 1,928 | 3,629 | 1,887 |
Deferred | 753 | -779 | 312 |
State and local income tax expense (benefit), continuing operations | 2,681 | 2,850 | 2,199 |
TOTAL | $14,189 | $13,767 | $13,818 |
INCOME_TAXES_Details_1
INCOME TAXES: (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal income taxes computed at the statutory rate | $16,786 | $15,856 | $16,320 |
Add (deduct) tax effect of: | |||
Tax exempt income | -4,016 | -3,760 | -3,864 |
ESOP dividend deduction | -284 | -105 | -258 |
State tax, net of federal benefit | 1,743 | 1,852 | 1,444 |
Affordable housing credits | -148 | -148 | -148 |
Other, net | 108 | 72 | 324 |
TOTAL | $14,189 | $13,767 | $13,818 |
INCOME_TAXES_Details_2
INCOME TAXES: (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Other than temporary impairment | $5,417 | $5,820 |
Net unrealized losses on retirement plans | 16,068 | 6,815 |
Net unrealized losses on securities available for sale | 0 | 2,701 |
Loan loss provisions | 7,232 | 7,845 |
Deferred compensation | 6,637 | 7,118 |
Compensated absences | 894 | 857 |
Post-retirement benefits | 2,014 | 2,045 |
Deferred loss on acquisition | 1,377 | 929 |
Other | 2,185 | 2,771 |
GROSS DEFERRED ASSETS | 41,824 | 36,901 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available-for-sale | -5,831 | 0 |
Depreciation | -2,423 | -2,528 |
Mortgage servicing rights | -561 | -752 |
Pensions | -2,182 | -1,818 |
Intangibles | -1,652 | -1,086 |
Other | -2,173 | -1,563 |
GROSS DEFERRED LIABILITIES | -14,822 | -7,747 |
NET DEFERRED TAX ASSETS (LIABILITIES) | $27,002 | $29,154 |
INCOME_TAXES_Details_3
INCOME TAXES: (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits | |||
Balance at January 1 | $676 | $777 | $862 |
Additions based on tax positions related to the current year | 72 | 65 | 86 |
Additions based on tax positions related to prior years | 0 | 0 | 0 |
Reductions due to the statute of limitations | -159 | -166 | -171 |
Balance at December 31 | $589 | $676 | $777 |
INCOME_TAXES_Details_textual
INCOME TAXES: (Details textual) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate (percent) | 35.00% | |||
Part of unrecognized tax benefits | $589 | $676 | $777 | $862 |
Increase (decrease) in interest and penalities | -21 | -31 | -2 | |
Income tax examination, penalties and interest accrued | $44 | $65 | $96 |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: (Details) (USD $) | 3 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | ||||
Other Commitments | $50,850,000 | $51,113,000 | ||
TOTAL | 354,592,000 | 375,470,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Loans and Leases Receivable, Commitments, Fixed Rates | 0.0325 | 0.0325 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Loans and Leases Receivable, Commitments, Fixed Rates | 0.0525 | 0.065 | ||
Commercial Operating Lines | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | 249,354,000 | 265,910,000 | ||
Commercial letters of credit | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | 7,684,000 | 7,642,000 | ||
Home Equity | ||||
Loss Contingencies [Line Items] | ||||
TOTAL | $54,388,000 | $58,447,000 |
FINANCIAL_INSTRUMENTS_WITH_OFF3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK: (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Risks and Uncertainties [Abstract] | ||
Notional amount of interest rate derivatives | $13.10 | $14.10 |
Gain (loss) on interest rate derivative instruments not designated as hedging instruments | $1.10 | $1.20 |
RETIREMENT_PLANS_Details
RETIREMENT PLANS: (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost - benefits earned | $2,040 | $2,238 | $4,872 |
Interest cost on projected benefit obligation | 3,756 | 3,383 | 3,667 |
Expected return on plan assets | -3,794 | -3,309 | -3,258 |
Net amortization and deferral | 750 | 2,075 | 2,434 |
Net periodic pension cost | 5,428 | 4,387 | 7,715 |
Net loss (gain) during the period | 23,111 | -14,697 | 3,842 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | -2,676 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 2,676 | 0 | 0 |
Defined Benefit Plan, Settlements, Benefit Obligation | -7,148 | 0 | 0 |
Curtailment gain | 0 | 0 | -5,700 |
Amortization of prior service cost | 9 | 16 | -166 |
Amortization of unrecognized gain (loss) | -759 | -2,091 | -2,270 |
Total recognized in other comprehensive (income) loss | -12,537 | 16,772 | 4,294 |
Total recognized net periodic pension cost and other comprehensive income | $17,965 | ($12,385) | $3,421 |
RETIREMENT_PLANS_Details_1
RETIREMENT PLANS: (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in benefit obligation: | |||
Benefit obligation at January 1 | $81,469 | $86,807 | |
Service cost | 2,040 | 2,238 | 4,872 |
Interest cost | 3,756 | 3,383 | 3,667 |
Actuarial (gain) loss | 22,274 | -7,098 | |
Benefits paid | -4,256 | -3,861 | |
Benefit obligation at December 31 | 98,135 | 81,469 | 86,807 |
Reconciliation of fair value of plan assets: | |||
Fair value of plan assets at January 1 | 67,233 | 57,491 | |
Actual return on plan assets | 2,957 | 10,909 | |
Employer contributions | 3,779 | 2,694 | |
Benefits paid | -4,256 | -3,861 | |
Fair value of plan assets at December 31 | 62,565 | 67,233 | 57,491 |
Funded status at December 31 (plan assets less benefit obligation) | -35,570 | -14,236 | |
Defined Benefit Plan, Settlements, Benefit Obligation | -7,148 | ||
Defined Benefit Plan, Settlements, Plan Assets | ($7,148) |
RETIREMENT_PLANS_Details_2
RETIREMENT PLANS: (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Net loss (gain) | $23,111 | ($14,697) | |
Prior service cost (credit) | 9 | 16 | -166 |
Pension and other postretirement benefit plans, adjustment | $23,120 | ($14,681) |
RETIREMENT_PLANS_Details_3
RETIREMENT PLANS: (Details 3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Principal assumptions used (benefit obligation): | ||
Discount rate (percent) | 3.95% | 4.95% |
Rate of increase in compensation levels (percent) | 3.00% | 3.50% |
Principal assumptions used (net periodic benefit): | ||
Discount rate | 4.95% | 4.05% |
Rate of increase in compensation levels | 3.50% | 3.50% |
Expected long-term rate of return on plan assets (percent) | 6.00% | 6.00% |
RETIREMENT_PLANS_Details_4
RETIREMENT PLANS: (Details 4) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 100.00% | 100.00% |
Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 100.00% | 100.00% |
Other Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 3.00% | 2.00% |
Other Securities [Member] | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of plan assets (percent) | 1.00% | 1.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations range minimum (percent) | 40.00% | |
Target plan asset allocations range maximum (percent) | 65.00% | |
Percentage of plan assets (percent) | 59.00% | 64.00% |
Equity Securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations range minimum (percent) | 95.00% | |
Target plan asset allocations range maximum (percent) | 99.00% | |
Percentage of plan assets (percent) | 99.00% | 99.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations range minimum (percent) | 35.00% | |
Target plan asset allocations range maximum (percent) | 60.00% | |
Percentage of plan assets (percent) | 38.00% | 34.00% |
Debt securities | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations range minimum (percent) | 0.00% | |
Target plan asset allocations range maximum (percent) | 0.00% | |
Percentage of plan assets (percent) | 0.00% | 0.00% |
Other Security Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations range minimum (percent) | 0.00% | |
Target plan asset allocations range maximum (percent) | 10.00% | |
Other Security Investments [Member] | Employee Stock Ownership Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocations range minimum (percent) | 0.00% | |
Target plan asset allocations range maximum (percent) | 5.00% |
RETIREMENT_PLANS_Details_5
RETIREMENT PLANS: (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $62,565 | $67,233 | $57,491 |
Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 47,320 | 55,218 | |
Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,245 | 12,015 | |
Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44,732 | 53,112 | |
Equity Securities | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 44,732 | 53,112 | |
Equity Securities | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,245 | 12,015 | |
Debt securities | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Debt securities | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 15,245 | 12,015 | |
Debt securities | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,588 | 2,106 | |
Investment Funds | Quoted Prices in Active Markets for Identical Assets - Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,588 | 2,106 | |
Investment Funds | Significant Other Observable Inputs - Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investment Funds | Significant Observable Inputs - Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $0 | $0 |
RETIREMENT_PLANS_Details_6
RETIREMENT PLANS: (Details 6) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2014 | $4,730 |
2015 | 4,891 |
2016 | 5,022 |
2017 | 5,143 |
2018 | 5,403 |
2019-2023 | $29,658 |
RETIREMENT_PLANS_Details_7
RETIREMENT PLANS: (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net loss (gain) during the period | $23,111 | ($14,697) | $3,842 |
Amortization of prior service cost | 9 | 16 | -166 |
Amortization of unrecognized gain (loss) | -759 | -2,091 | -2,270 |
Total recognized in other comprehensive income (loss) | 12,537 | -16,772 | -4,294 |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net loss (gain) during the period | 932 | -333 | 442 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of unrecognized gain (loss) | -7 | -68 | -79 |
Total recognized in other comprehensive income (loss) | $925 | ($401) | $363 |
RETIREMENT_PLANS_Details_8
RETIREMENT PLANS: (Details 8) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2014 | $4,730 |
2015 | 4,891 |
2016 | 5,022 |
2017 | 5,143 |
2018 | 5,403 |
2019-2023 | 29,658 |
Supplemental Employee Retirement Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2014 | 0 |
2015 | 293 |
2016 | 289 |
2017 | 284 |
2018 | 280 |
2019-2023 | $1,316 |
RETIREMENT_PLANS_Details_9
RETIREMENT PLANS: (Details 9) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in benefit obligation: | |||
Benefit obligation at January 1 | $81,469 | $86,807 | |
Service cost | 2,040 | 2,238 | 4,872 |
Interest cost | 3,756 | 3,383 | 3,667 |
Actuarial (gain) loss | 22,274 | -7,098 | |
Benefits paid | -4,256 | -3,861 | |
Benefit obligation at December 31 | 98,135 | 81,469 | 86,807 |
Funded status at December 31 | -35,570 | -14,236 | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Change in benefit obligation: | |||
Benefit obligation at January 1 | 4,088 | 4,395 | |
Service cost | 53 | 68 | |
Interest cost | 175 | 173 | |
Plan participants' contributions | 39 | 37 | |
Actuarial (gain) loss | 456 | -338 | |
Benefits paid | -252 | -247 | |
Benefit obligation at December 31 | 4,559 | 4,088 | |
Funded status at December 31 | $4,559 | $4,088 |
RETIREMENT_PLANS_Details_10
RETIREMENT PLANS: (Details 10) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Discount rate (percent) | 3.95% | 4.95% |
Initial weighted health care cost trend rate (percent) | 750.00% | 750.00% |
Ultimate health care cost trend rate (percent) | 500.00% | 500.00% |
Year that the rate is assumed to stabilize and remain unchanged (percent) | 2015 |
RETIREMENT_PLANS_Details_11
RETIREMENT PLANS: (Details 11) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $2,040 | $2,238 | $4,872 |
Interest cost | 3,756 | 3,383 | 3,667 |
Recognized actuarial loss | 22,274 | -7,098 | |
Net periodic pension cost | 5,428 | 4,387 | 7,715 |
Net loss (gain) during the period | 23,111 | -14,697 | 3,842 |
Amortization of prior service cost | 9 | 16 | -166 |
Total recognized in other comprehensive income (loss) | 12,537 | -16,772 | -4,294 |
Total recognized net periodic pension cost and other comprehensive income | 17,965 | -12,385 | 3,421 |
Postretirement Health Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 53 | 68 | 60 |
Interest cost | 175 | 173 | 173 |
Amortization of transition obligation | 0 | 60 | 60 |
Recognized actuarial loss | 0 | 0 | 0 |
Net periodic pension cost | 228 | 301 | 293 |
Net loss (gain) during the period | 456 | -338 | 311 |
Amortization of prior service cost | 0 | -59 | -60 |
Total recognized in other comprehensive income (loss) | 456 | -397 | 251 |
Total recognized net periodic pension cost and other comprehensive income | $684 | ($96) | $544 |
RETIREMENT_PLANS_Details_12
RETIREMENT PLANS: (Details 12) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Effect on total of service and interest cost components 1% Point Increase | $2 |
Effect on total of service and interest cost components 1% Point Decrease | 1 |
Effect on post-retirement benefit obligation 1% Point Increase | 39 |
Effect on post-retirement benefit obligation 1% Point Decrease | $35 |
RETIREMENT_PLANS_Details_13
RETIREMENT PLANS: (Details 13) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2014 | $4,730 |
2015 | 4,891 |
2016 | 5,022 |
2017 | 5,143 |
2018 | 5,403 |
2019-2023 | 29,658 |
Postretirement Health Coverage [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2014 | 247 |
2015 | 262 |
2016 | 266 |
2017 | 266 |
2018 | 267 |
2019-2023 | $1,378 |
RETIREMENT_PLANS_Details_Textu
RETIREMENT PLANS: (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 100.00% | 100.00% | |
Employer contributions | $3,779,000 | $2,694,000 | |
Cash contributions to ESOP | 1,253,000 | 1,218,000 | 1,439,000 |
Cash contributions to ESOP for employees no longer participating in plan | 716,000 | 629,000 | |
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 2,100,000 | ||
Amortization of prior service cost (credit) | 1,000 | ||
Pension plans with accumulated benefit obligations in excess of plan assets, aggregate accumulated benefit obligation | 91,500,000 | 75,700,000 | |
Pension and other postretirement defined benefit plans, liabilities | 3,600,000 | 2,400,000 | |
Accumulated other comprehensive income (loss) | -14,529,000 | -13,969,000 | -7,472,000 |
Benefit Obligation Estimate | 8,500,000 | ||
First Financial Corporation Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets equity securities | 22,500,000 | 31,400,000 | |
Percentage of plan assets (percent) | 36.00% | 47.00% | |
Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 59.00% | 64.00% | |
Target plan asset allocations range minimum (percent) | 40.00% | ||
Target plan asset allocations range maximum (percent) | 65.00% | ||
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 38.00% | 34.00% | |
Target plan asset allocations range minimum (percent) | 35.00% | ||
Target plan asset allocations range maximum (percent) | 60.00% | ||
Other Security Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations range minimum (percent) | 0.00% | ||
Target plan asset allocations range maximum (percent) | 10.00% | ||
Other Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 3.00% | 2.00% | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 3,240,000 | 2,110,000 | 3,640,000 |
Expected contributions to pension plan in 2014 | 1,800,000 | ||
Employee Stock Ownership Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 100.00% | 100.00% | |
Cash contributions to ESOP | -1,100,000 | ||
Employee Stock Ownership Plan | First Financial Corporation Common Stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan assets equity securities | 1,400,000 | 671,000 | |
Employee Stock Ownership Plan | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 99.00% | 99.00% | |
Target plan asset allocations range minimum (percent) | 95.00% | ||
Target plan asset allocations range maximum (percent) | 99.00% | ||
Employee Stock Ownership Plan | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 0.00% | 0.00% | |
Target plan asset allocations range minimum (percent) | 0.00% | ||
Target plan asset allocations range maximum (percent) | 0.00% | ||
Employee Stock Ownership Plan | Other Security Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target plan asset allocations range minimum (percent) | 0.00% | ||
Target plan asset allocations range maximum (percent) | 5.00% | ||
Employee Stock Ownership Plan | Other Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Percentage Of Plan Assets | 1.00% | 1.00% | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | 88,000 | ||
Pension expense | 268,000 | 341,000 | |
Accumulated other comprehensive income (loss), after tax | 1,200,000 | 316,000 | |
Accumulated other comprehensive income (loss) | -521,000 | -63,000 | |
Postretirement Health Coverage [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contributions to pension plan in 2014 | 247,000 | ||
Pension expense | 252,000 | 247,000 | |
Amortization of transition obligations (assets) | $0 | $60,000 | $60,000 |
STOCK_BASED_COMPENSATION_Detai
STOCK BASED COMPENSATION: (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 36 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 05, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $1,020 | $733 | $487 | ||||
Stock Incentive Plan 2011 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance (in shares) | 700,000 | ||||||
Granted (shares) | 91,881 | ||||||
Number of additional shares authorized (shares) | 608,119 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (shares) | 22,019,000 | 30,219,000 | |||||
Vesting period | 3 years | ||||||
Total compensation cost not yet recognized, stock options | 698 | 1,200 | 1,200 | ||||
Total compensation cost not yet recognized, period for recognition | 1 year 6 months | ||||||
Options, vested in period, fair value | 1,100 | $784 | |||||
Restricted Stock | First Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock (percent) | 33.00% | ||||||
Restricted Stock | Second Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock (percent) | 33.00% | ||||||
Restricted Stock | Third Anniversary | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Purchase price of common stock (percent) | 34.00% |
STOCK_BASED_COMPENSATION_Detai1
STOCK BASED COMPENSATION: (Details) (Restricted Stock, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock | ||
Shares Outstanding | ||
Nonvested balance at January 1 (shares) | 30,496,000 | 26,431,000 |
Granted during the year (shares) | 22,019,000 | 30,219,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | -30,431,000 | -21,439,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | -4,715,000 |
Novested balance at December 31 (shares) | 22,084,000 | 30,496,000 |
Weighted Average Exercise Price | ||
Nonvested balance at January 1 | $33,490 | $36,880 |
Granted during the year (usd per share) | $32,170 | $30,550 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $33,520 | $34,210 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Weighted Average Grant Date Fair Value | $0 | $36,880 |
Nonvested balance at December 31 | $31,630 | $33,490 |
OTHER_COMPREHENSIVE_INCOME_LOS2
OTHER COMPREHENSIVE INCOME (LOSS)-AOCI (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | ($13,969) | ($7,472) |
Change in other comprehensive income before reclassification | -1,023 | -16,812 |
Amounts reclassified from accumulated other comprehensive income | 463 | 10,315 |
Net current period other comprehensive income (loss) | -560 | -6,497 |
Ending balance, December 31 | -14,529 | -13,969 |
Unrealized Gains and Losses on Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | -3,635 | 13,431 |
Change in other comprehensive income before reclassification | 13,911 | -16,812 |
Amounts reclassified from accumulated other comprehensive income | 2 | -254 |
Net current period other comprehensive income (loss) | 13,913 | -17,066 |
Ending balance, December 31 | 10,278 | -3,635 |
Retirement Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | -10,334 | -20,903 |
Change in other comprehensive income before reclassification | -14,934 | 0 |
Amounts reclassified from accumulated other comprehensive income | 461 | 10,569 |
Net current period other comprehensive income (loss) | -14,473 | 10,569 |
Ending balance, December 31 | ($24,807) | ($10,334) |
OTHER_COMPREHENSIVE_INCOME_LOS3
OTHER COMPREHENSIVE INCOME (LOSS): (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | ($13,969) | ($7,472) |
Current Period Change | -560 | -6,497 |
Ending balance, December 31 | -14,529 | -13,969 |
Unrealized Gains and Losses on Available-for-Sale Securities | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | -3,635 | 13,431 |
Current Period Change | 13,913 | -17,066 |
Ending balance, December 31 | 10,278 | -3,635 |
Unrealized gains losses on securities available-for-sale without other than temporary impairment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | -2,499 | 17,044 |
Current Period Change | 9,663 | -19,543 |
Ending balance, December 31 | 7,164 | -2,499 |
Unrealized gains losses on securities available-for-sale with other than temporary impairment | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | -1,136 | -3,613 |
Current Period Change | 4,250 | 2,477 |
Ending balance, December 31 | 3,114 | -1,136 |
Retirement Plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance, January 1 | -10,334 | -20,903 |
Current Period Change | -14,473 | -10,569 |
Ending balance, December 31 | ($24,807) | ($10,334) |
OTHER_COMPREHENSIVE_INCOME_OTH
OTHER COMPREHENSIVE INCOME : OTHER COMPREHENSIVE INCOME (LOSS)-Reclassifications (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Net securities gains (losses) | ($3) | $423 | $886 | |||||||||||
Income tax expense | -14,189 | -13,767 | -13,818 | |||||||||||
NET INCOME | 9,181 | 8,272 | 8,488 | 7,831 | 8,923 | 8,472 | 6,446 | 7,693 | 33,772 | 31,534 | 32,812 | |||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
NET INCOME | -463 | -10,315 | -1,799 | |||||||||||
Unrealized Gains and Losses on Available-for-Sale Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Net securities gains (losses) | -3 | 423 | 886 | |||||||||||
Income tax expense | 1 | -169 | -354 | |||||||||||
NET INCOME | -2 | 254 | 532 | |||||||||||
Retirement Plans | Reclassification out of Accumulated Other Comprehensive Income | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Change in funded status of post retirement benefits | -756 | [1] | -17,615 | [1] | -3,885 | [1] | ||||||||
Income tax expense | 295 | 7,046 | 1,554 | |||||||||||
NET INCOME | ($461) | ($10,569) | ($2,331) | |||||||||||
[1] | Included in the computation of net periodic benefit cost which is included in salaries and benefits. (see Footnote 15 for additional details). |
REGULATORY_MATTERS_Details_Tex
REGULATORY MATTERS: (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Banking and Thrift [Abstract] | |
Undistributed earnings | $51 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Corporation 2013 | ||
Capital [Abstract] | ||
Capital | $386,622 | |
Capital to Risk Weighted Assets (percent) | 17.86% | |
Capital Required for Capital Adequacy | 173,211 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 8.00% | |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | 367,783 | |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 16.99% | |
Tier One Risk Based Capital Required for Capital Adequacy | 86,605 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 4.00% | |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | 367,783 | |
Tier One Leverage Capital to Average Assets (percent) | 12.33% | |
Tier One Leverage Capital Required for Capital Adequacy | 119,356 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 4.00% | |
Corporation 2012 | ||
Capital [Abstract] | ||
Capital | 375,601 | |
Capital to Risk Weighted Assets (percent) | 17.13% | |
Capital Required for Capital Adequacy | 175,372 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 8.00% | |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | 355,533 | |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 16.22% | |
Tier One Risk Based Capital Required for Capital Adequacy | 87,686 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 4.00% | |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | 355,533 | |
Tier One Leverage Capital to Average Assets (percent) | 11.69% | |
Tier One Leverage Capital Required for Capital Adequacy | 121,622 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 4.00% | |
First Financial Bank 2013 | ||
Capital [Abstract] | ||
Capital | 358,631 | |
Capital to Risk Weighted Assets (percent) | 17.13% | |
Capital Required for Capital Adequacy | 167,472 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 8.00% | |
Capital Required to be Well Capitalized | 209,340 | |
Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 10.00% | |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | 342,452 | |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 16.36% | |
Tier One Risk Based Capital Required for Capital Adequacy | 83,736 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 4.00% | |
Tier One Risk Based Capital Required to be Well Capitalized | 125,604 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 6.00% | |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | 342,452 | |
Tier One Leverage Capital to Average Assets (percent) | 11.83% | |
Tier One Leverage Capital Required for Capital Adequacy | 115,770 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized | 144,712 | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets (percent) | 5.00% | |
First Financial Bank 2012 | ||
Capital [Abstract] | ||
Capital | 349,968 | |
Capital to Risk Weighted Assets (percent) | 16.49% | |
Capital Required for Capital Adequacy | 169,745 | |
Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 8.00% | |
Capital Required to be Well Capitalized | 212,181 | |
Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 10.00% | |
Tier One Risk Based Capital [Abstract] | ||
Tier One Risk Based Capital | 332,644 | |
Tier One Risk Based Capital to Risk Weighted Assets (percent) | 15.68% | |
Tier One Risk Based Capital Required for Capital Adequacy | 84,872 | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets (percent) | 4.00% | |
Tier One Risk Based Capital Required to be Well Capitalized | 127,309 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets (percent) | 6.00% | |
Tier One Leverage Capital [Abstract] | ||
Tier One Leverage Capital | 332,644 | |
Tier One Leverage Capital to Average Assets (percent) | 11.40% | |
Tier One Leverage Capital Required for Capital Adequacy | 116,711 | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets (percent) | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized | $145,889 | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets (percent) | 5.00% |
PARENT_COMPANY_CONDENSED_FINAN2
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash deposits in affiliated banks | $78,102 | $71,033 | ||
Land and headquarters building, net | 51,802 | 51,449 | ||
Other | 48,931 | 43,624 | ||
TOTAL ASSETS | 3,002,485 | 3,018,718 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 90,173 | 55,852 | ||
TOTAL LIABILITIES | 2,608,271 | 2,632,523 | ||
Shareholders' Equity | 394,214 | 386,195 | 372,122 | 346,961 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 3,002,485 | 3,018,718 | ||
Parent | ||||
ASSETS | ||||
Cash deposits in affiliated banks | 3,639 | 4,654 | ||
Investments in subsidiaries | 396,486 | 388,937 | ||
Land and headquarters building, net | 5,791 | 4,688 | ||
Other | 103 | 258 | ||
TOTAL ASSETS | 406,019 | 398,537 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Dividends payable | 6,341 | 6,405 | ||
Other liabilities | 5,464 | 5,937 | ||
TOTAL LIABILITIES | 11,805 | 12,342 | ||
Shareholders' Equity | 394,214 | 386,195 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $406,019 | $398,537 |
PARENT_COMPANY_CONDENSED_FINAN3
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Income tax benefit | ($14,189) | ($13,767) | ($13,818) | |||||||||
NET INCOME | 9,181 | 8,272 | 8,488 | 7,831 | 8,923 | 8,472 | 6,446 | 7,693 | 33,772 | 31,534 | 32,812 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 25,037 | 35,834 | 33,212 | |||||||||
Parent | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Dividends from subsidiaries | 26,530 | 7,130 | 16,347 | |||||||||
Other income | 724 | 1,144 | 1,149 | |||||||||
Interest on borrowings | 0 | 0 | -225 | |||||||||
Other operating expenses | -2,747 | -3,113 | -3,383 | |||||||||
Income before income taxes and equity in undistributed earnings of subsidiaries | 24,507 | 5,161 | 13,888 | |||||||||
Income tax benefit | 1,156 | 988 | 1,267 | |||||||||
Income before equity in undistributed earnings of subsidiaries | 25,663 | 6,149 | 15,155 | |||||||||
Equity in undistributed earnings of subsidiaries | 8,109 | 25,385 | 17,657 | |||||||||
NET INCOME | $33,772 | $31,534 | $32,812 |
PARENT_COMPANY_CONDENSED_FINAN4
PARENT COMPANY CONDENSED FINANCIAL STATEMENTS: (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net Income | $9,181 | $8,272 | $8,488 | $7,831 | $8,923 | $8,472 | $6,446 | $7,693 | $33,772 | $31,534 | $32,812 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Contribution of shares to ESOP | 1,253 | 1,218 | 1,439 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Purchases of treasury stock | -14,633 | -162 | 0 | |||||||||
Dividends paid | -12,949 | -12,766 | -12,425 | |||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 7,069 | -16,197 | -47,050 | |||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 71,033 | 87,230 | 71,033 | 87,230 | 134,280 | |||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 78,102 | 71,033 | 78,102 | 71,033 | 87,230 | |||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest | 5,527 | 9,375 | 13,837 | |||||||||
Income Taxes | 9,354 | 13,822 | 12,638 | |||||||||
Parent | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net Income | 33,772 | 31,534 | 32,812 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 196 | 173 | 172 | |||||||||
Equity in undistributed earnings | -8,109 | -25,385 | -17,657 | |||||||||
Contribution of shares to ESOP | 1,253 | 1,218 | 1,439 | |||||||||
Securities impairment loss recognized in earnings | 0 | 0 | 11 | |||||||||
Securities (gains) losses | 0 | -420 | -435 | |||||||||
Restricted stock compensation | 1,072 | 611 | 488 | |||||||||
Increase (decrease) in other liabilities | -473 | -512 | 610 | |||||||||
(Increase) decrease in other assets | 155 | 485 | 188 | |||||||||
NET CASH FROM OPERATING ACTIVITIES | 27,866 | 7,704 | 17,628 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Sales of securities available-for-sale | 0 | 740 | 1,700 | |||||||||
Investment in First Financial Bank Risk Management | 0 | 0 | -250 | |||||||||
Purchase of furniture and fixtures | -1,299 | -5 | -24 | |||||||||
NET CASH FROM INVESTING ACTIVITIES | -1,299 | 735 | 1,426 | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Principal payments on borrowings | 0 | 0 | -6,196 | |||||||||
Purchases of treasury stock | -14,633 | 0 | 0 | |||||||||
Dividends paid | -12,949 | -12,766 | -12,425 | |||||||||
NET CASH FROM FINANCING ACTIVITES | -27,582 | -12,766 | -18,621 | |||||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | -1,015 | -4,327 | 433 | |||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 4,654 | 8,981 | 4,654 | 8,981 | 8,548 | |||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | 3,639 | 4,654 | 3,639 | 4,654 | 8,981 | 8,548 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest | 0 | 0 | 225 | |||||||||
Income Taxes | $9,354 | $13,822 | $12,638 |
SELECTED_QUARTERLY_DATA_UNAUDI2
SELECTED QUARTERLY DATA (UNAUDITED): (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Interest Income | $28,043 | $28,376 | $28,115 | $28,824 | $29,255 | $29,719 | $28,305 | $28,942 | |||
Interest Expense | 1,104 | 1,231 | 1,509 | 1,682 | 1,704 | 1,921 | 2,567 | 2,769 | 5,526 | 8,961 | 13,393 |
NET INTEREST INCOME | 26,939 | 27,145 | 26,606 | 27,142 | 27,551 | 27,798 | 25,738 | 26,173 | 107,832 | 107,260 | 108,912 |
Provision For Loan Losses | 1,962 | 1,506 | -356 | 1,960 | 1,384 | 495 | 2,960 | 3,021 | 5,072 | 7,860 | 8,773 |
Net income | $9,181 | $8,272 | $8,488 | $7,831 | $8,923 | $8,472 | $6,446 | $7,693 | $33,772 | $31,534 | $32,812 |
Net Income Per Share (in dollars per share) | $0.71 | $0.62 | $0.63 | $0.59 | $0.67 | $0.64 | $0.48 | $0.58 | $2.55 | $2.37 | $2.48 |