Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CAC | ' |
Entity Registrant Name | 'CAMDEN NATIONAL CORP | ' |
Entity Central Index Key | '0000750686 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 7,646,964 |
CONSOLIDATED_STATEMENTS_OF_CON
CONSOLIDATED STATEMENTS OF CONDITION (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $57,086 | $58,290 |
Securities | ' | ' |
Securities available-for-sale, at fair value | 783,243 | 781,050 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 19,724 | 21,034 |
Total securities | 802,967 | 802,084 |
Trading account assets | 2,309 | 2,300 |
Loans held for sale | 1,313 | 0 |
Loans | 1,589,946 | 1,563,866 |
Less allowance for loan losses | -22,661 | -23,044 |
Net loans | 1,567,285 | 1,540,822 |
Goodwill and other intangible assets | 52,436 | 53,299 |
Bank-owned life insurance | 46,039 | 45,053 |
Premises and equipment, net | 26,751 | 28,059 |
Deferred tax asset | 16,035 | 7,663 |
Interest receivable | 5,678 | 6,215 |
Other real estate owned | 1,802 | 1,313 |
Other assets | 17,554 | 19,659 |
Total assets | 2,597,255 | 2,564,757 |
Deposits | ' | ' |
Demand | 282,023 | 240,749 |
Interest checking, savings and money market | 1,208,691 | 1,169,148 |
Retail certificates of deposit | 379,281 | 418,442 |
Brokered deposits | 103,369 | 101,130 |
Total deposits | 1,973,364 | 1,929,469 |
Federal Home Loan Bank advances | 96,130 | 56,404 |
Other borrowed funds | 207,326 | 259,940 |
Junior subordinated debentures | 43,896 | 43,819 |
Accrued interest and other liabilities | 44,257 | 41,310 |
Total liabilities | 2,364,973 | 2,330,942 |
Shareholders’ Equity | ' | ' |
Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 7,646,664 and 7,622,750 shares on September 30, 2013 and December 31, 2012, respectively | 50,265 | 49,667 |
Retained earnings | 193,304 | 181,151 |
Accumulated other comprehensive income (loss) | ' | ' |
Net unrealized (losses) gains on securities available-for-sale, net of tax | -5,073 | 12,943 |
Net unrealized losses on derivative instruments, at fair value, net of tax | -3,614 | -7,205 |
Net unrecognized losses on postretirement plans, net of tax | -2,600 | -2,741 |
Total accumulated other comprehensive income (loss) | -11,287 | 2,997 |
Total shareholders’ equity | 232,282 | 233,815 |
Total liabilities and shareholders’ equity | $2,597,255 | $2,564,757 |
CONSOLIDATED_STATEMENTS_OF_CON1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, no par value | $0 | $0 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 7,646,664 | 7,622,750 |
Common stock, outstanding | 7,646,664 | 7,622,750 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income | ' | ' | ' | ' |
Interest and fees on loans | $17,470 | $18,084 | $53,324 | $54,787 |
Interest on U.S. government and sponsored enterprise obligations | 4,091 | 4,153 | 12,441 | 12,387 |
Interest on state and political subdivision obligations | 292 | 344 | 889 | 1,064 |
Interest on federal funds sold and other investments | 38 | 55 | 144 | 160 |
Total interest income | 21,891 | 22,636 | 66,798 | 68,398 |
Interest Expense | ' | ' | ' | ' |
Interest on deposits | 1,780 | 2,218 | 5,427 | 7,146 |
Interest on borrowings | 767 | 1,337 | 2,352 | 4,164 |
Interest on junior subordinated debentures | 637 | 634 | 1,894 | 1,904 |
Total interest expense | 3,184 | 4,189 | 9,673 | 13,214 |
Net interest income | 18,707 | 18,447 | 57,125 | 55,184 |
Provision for credit losses | 665 | 868 | 2,034 | 2,708 |
Net interest income after provision for credit losses | 18,042 | 17,579 | 55,091 | 52,476 |
Non-Interest Income | ' | ' | ' | ' |
Service charges on deposit accounts | 1,750 | 1,386 | 5,189 | 3,857 |
Other service charges and fees | 1,568 | 1,003 | 4,510 | 2,804 |
Income from fiduciary services | 1,149 | 1,155 | 3,567 | 3,883 |
Mortgage banking income, net | 93 | 8 | 1,251 | 476 |
Brokerage and insurance commissions | 354 | 360 | 1,175 | 1,109 |
Bank-owned life insurance | 334 | 353 | 986 | 1,034 |
Net gain on sale of securities and other-than-temporary impairment of securities | 647 | 187 | 785 | 1,059 |
Other income | 580 | 586 | 1,724 | 1,798 |
Total non-interest income | 6,475 | 5,038 | 19,187 | 16,020 |
Non-Interest Expenses | ' | ' | ' | ' |
Salaries and employee benefits | 8,115 | 7,270 | 24,437 | 21,150 |
Furniture, equipment and data processing | 1,668 | 1,131 | 5,203 | 3,555 |
Net occupancy | 1,242 | 930 | 4,201 | 3,061 |
Other real estate owned and collection costs, net | 489 | 571 | 1,355 | 1,694 |
Consulting and professional fees | 504 | 408 | 1,636 | 1,351 |
Regulatory assessments | 496 | 450 | 1,495 | 1,317 |
Amortization of intangible assets | 289 | 144 | 863 | 433 |
Branch acquisition/divestiture costs | 47 | 396 | 279 | 704 |
Other expenses | 2,349 | 2,070 | 7,878 | 7,003 |
Total non-interest expenses | 15,199 | 13,370 | 47,347 | 40,268 |
Income before income taxes | 9,318 | 9,247 | 26,931 | 28,228 |
Income Taxes | 2,952 | 2,992 | 8,572 | 8,978 |
Net Income | $6,366 | $6,255 | $18,359 | $19,250 |
Per Share Data | ' | ' | ' | ' |
Basic earnings per share | $0.83 | $0.82 | $2.40 | $2.51 |
Diluted earnings per share | $0.83 | $0.82 | $2.39 | $2.50 |
Weighted average number of common shares outstanding | 7,643,720 | 7,619,411 | 7,636,352 | 7,655,619 |
Diluted weighted average number of common shares outstanding | 7,666,305 | 7,639,434 | 7,651,870 | 7,669,763 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income | $6,366 | $6,255 | $18,359 | $19,250 | ||||
Unrealized gains (losses) on securities available-for-sale: | ' | ' | ' | ' | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during period, net of related tax effects of $1,111, ($2,343), $9,426 and ($3,162), respectively | -2,063 | 4,350 | -17,506 | 5,871 | ||||
Less: reclassification adjustment for gains included in net income, net of related tax effects of $227, $66, $275 and $371, respectively(1) | -420 | [1] | -121 | [1] | -510 | [1] | -688 | [1] |
Net unrealized gains (losses) on securities available-for-sale | -2,483 | 4,229 | -18,016 | 5,183 | ||||
Unrealized gain (loss) on cash flow hedging derivatives, net of related tax effects of ($239), ($59), ($1,933) and $347, respectively | 445 | 109 | 3,591 | -645 | ||||
Postretirement plans: | ' | ' | ' | ' | ||||
Net actuarial gain arising during period, net of related tax effects of ($22), ($14), ($64) and ($40), respectively | 39 | 23 | 118 | 71 | ||||
Plus: amortization of prior service cost included in net periodic cost, net of related tax effects of ($4), ($3) ($12) and ($6), respectively(2) | 8 | [2] | 3 | [2] | 23 | [2] | 9 | [2] |
Net gain on postretirement plans | 47 | 26 | 141 | 80 | ||||
Other comprehensive income (loss) | -1,991 | 4,364 | -14,284 | 4,618 | ||||
Comprehensive income | $4,375 | $10,619 | $4,075 | $23,868 | ||||
[1] | Reclassified into the consolidated statements of income in net gain on sale of securities and other-than-temporary impairment of securities. | |||||||
[2] | Reclassified into the consolidated statements of income in salaries and employee benefits. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Unrealized holding losses on securities available-for-sale arising during period, tax effects | $1,111 | ($2,343) | $9,426 | ($3,162) |
Reclassification adjustment for gains included in net income, tax effect | 227 | 66 | 275 | 371 |
Unrealized gain on cash flow hedging derivatives, tax effect | -239 | -59 | -1,933 | 347 |
Net actuarial gain arising during period, tax effect | -22 | -14 | -64 | -40 |
Amortization of prior service cost included in net periodic cost, tax effect | ($4) | ($3) | ($12) | ($6) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income |
In Thousands, except Share data, unless otherwise specified | ||||
Beginning Balance at Dec. 31, 2011 | $218,876 | $51,438 | $165,377 | $2,061 |
Beginning Balance (in shares) at Dec. 31, 2011 | ' | 7,664,975 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net income | 19,250 | ' | 19,250 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Change in fair value of securities available-for-sale | 5,183 | ' | ' | 5,183 |
Change in fair value of cash flow hedges | -645 | ' | ' | -645 |
Change in net unrecognized gains on postretirement plans | 80 | ' | ' | 80 |
Comprehensive income | 23,868 | ' | 19,250 | 4,618 |
Stock-based compensation expense | 355 | 355 | ' | ' |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | ' | 20,677 | ' | ' |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | -241 | -241 | ' | ' |
Common stock repurchased (in shares) | ' | -65,580 | ' | ' |
Common stock repurchased | -2,097 | -2,097 | ' | ' |
Cash dividends declared | 5,783 | ' | 5,783 | ' |
Ending Balance at Sep. 30, 2012 | 234,978 | 49,455 | 178,844 | 6,679 |
Ending Balance (in shares) at Sep. 30, 2012 | ' | 7,620,072 | ' | ' |
Beginning Balance at Dec. 31, 2012 | 233,815 | 49,667 | 181,151 | 2,997 |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 7,622,750 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net income | 18,359 | ' | 18,359 | ' |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Change in fair value of securities available-for-sale | -18,016 | ' | ' | -18,016 |
Change in fair value of cash flow hedges | 3,591 | ' | ' | 3,591 |
Change in net unrecognized gains on postretirement plans | 141 | ' | ' | 141 |
Comprehensive income | 4,075 | ' | 18,359 | -14,284 |
Stock-based compensation expense | 340 | 340 | ' | ' |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | ' | 23,914 | ' | ' |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | 258 | 258 | ' | ' |
Cash dividends declared | 6,206 | ' | 6,206 | ' |
Ending Balance at Sep. 30, 2013 | $232,282 | $50,265 | $193,304 | ($11,287) |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 7,646,664 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash dividends declared, per share | $0.81 | $0.75 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net income | $18,359 | $19,250 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for credit losses | 2,034 | 2,708 |
Depreciation and amortization | 2,300 | 1,849 |
Accretion (Amortization) of Discounts and Premiums, Investments | 1,745 | 1,494 |
Stock-based compensation expense | 340 | 355 |
Decrease in interest receivable | 537 | 58 |
Amortization of intangible assets | 863 | 433 |
Net investment securities gains and other-than-temporary impairment of securities | -785 | -1,059 |
Increase in other real estate owned valuation allowance and loss on disposition | 97 | 465 |
Originations of mortgage loans held for sale | -29,515 | -12,775 |
Proceeds from the sale of mortgage loans | 28,886 | 19,104 |
Gain on sale of mortgage loans | -684 | -268 |
(Increase) decrease in other assets | -633 | 720 |
(Decrease) increase in other liabilities | -2,539 | 474 |
Net cash provided by operating activities | 21,005 | 32,808 |
Investing Activities | ' | ' |
Proceeds from sales and maturities of securities available-for-sale | 121,793 | 154,708 |
Purchase of securities available-for-sale | -138,300 | -267,533 |
Net increase in loans | -29,168 | -30,544 |
Proceeds from sale of Federal Home Loan Bank stock | 1,310 | 928 |
Proceeds from the sale of other real estate owned | 530 | 1,665 |
Proceeds from previously charged-off loans | 436 | 530 |
Cash settlement in branch acquisition | -3,278 | 0 |
Purchase of premises and equipment | -1,203 | -2,662 |
Net cash used by investing activities | -47,880 | -142,908 |
Financing Activities | ' | ' |
Net increase in deposits | 44,210 | 97,952 |
Repayments on Federal Home Loan Bank long-term advances | -271 | -10,335 |
Net change in short-term Federal Home Loan Bank borrowings | 40,000 | 45,000 |
Net decrease in other borrowed funds | -52,479 | -4,815 |
Common stock repurchase | 0 | -2,097 |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | 258 | -241 |
Cash dividends paid on common stock | -6,047 | -5,756 |
Net cash provided by financing activities | 25,671 | 119,708 |
Net (decrease) increase in cash and cash equivalents | -1,204 | 9,608 |
Cash and cash equivalents at beginning of year | 58,290 | 39,325 |
Cash and cash equivalents at end of period | 57,086 | 48,933 |
Supplemental information | ' | ' |
Interest paid | 9,952 | 13,402 |
Income taxes paid | 8,750 | 4,560 |
Securities purchased but unsettled | 14,363 | 20,231 |
Transfer from loans and premises and equipment to other real estate owned | $1,116 | $1,044 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation (the “Company”) as of September 30, 2013 and December 31, 2012, the consolidated statements of income for the three and nine months ended September 30, 2013 and 2012, the consolidated statements of comprehensive income for the three and nine months ended September 30, 2013 and 2012, the consolidated statements of changes in shareholders' equity for the nine months ended September 30, 2013 and 2012, and the consolidated statements of cash flows for the nine months ended ended September 30, 2013 and 2012. All significant intercompany transactions and balances are eliminated in consolidation. Certain items from the prior year were reclassified to conform to the current year presentation. The income reported for the three and nine months period ended September 30, 2013 is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Annual Report for the year ended December 31, 2012, Form 10-K. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
EARNINGS PER SHARE | |||||||||||||||||
The following is an analysis of basic and diluted earnings per share (“EPS”), reflecting the application of the two-class method, as described below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 6,366 | $ | 6,255 | $ | 18,359 | $ | 19,250 | |||||||||
Dividends and undistributed earnings allocated to participating securities (1) | (20 | ) | (18 | ) | (50 | ) | (48 | ) | |||||||||
Net income available to common shareholders | $ | 6,346 | $ | 6,237 | $ | 18,309 | $ | 19,202 | |||||||||
Weighted-average common shares outstanding for basic EPS | 7,643,720 | 7,619,411 | 7,636,352 | 7,655,619 | |||||||||||||
Dilutive effect of stock-based awards (2) | 22,585 | 20,023 | 15,518 | 14,144 | |||||||||||||
Weighted-average common and potential common shares for diluted EPS | 7,666,305 | 7,639,434 | 7,651,870 | 7,669,763 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic EPS | $ | 0.83 | $ | 0.82 | $ | 2.4 | $ | 2.51 | |||||||||
Diluted EPS | $ | 0.83 | $ | 0.82 | $ | 2.39 | $ | 2.5 | |||||||||
-1 | Represents dividends paid and undistributed earnings allocated to nonvested restricted stock awards. | ||||||||||||||||
-2 | Represents the effect of the assumed exercise of stock options, vesting of restricted shares, and vesting of restricted stock units, based on the treasury stock method. | ||||||||||||||||
Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested restricted stock awards qualify as participating securities. | |||||||||||||||||
Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested restricted shares. | |||||||||||||||||
Diluted EPS is computed in a similar manner, except that first the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. | |||||||||||||||||
For the three and nine months ended September 30, 2013, options to purchase 14,250 and 31,000 shares, respectively, of common stock were not considered in the computation of potential common shares for purposes of diluted EPS, since the exercise prices of the options were greater than the average market price of the common stock for the respective periods. For the three and nine months ended September 30, 2012, options to purchase 18,250 and 49,500 shares, respectively, of common stock were not considered in the computation of potential common shares for purposes of diluted EPS, since the exercise prices of the options were greater than the average market price of the common stock for the respective periods. |
SECURITIES
SECURITIES | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||||||
SECURITIES | ||||||||||||||||||||||||
The following tables summarize the amortized costs and estimated fair values of securities available-for-sale (“AFS”), as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 27,848 | $ | 1,352 | $ | — | $ | 29,200 | ||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | 358,436 | 6,384 | (4,612 | ) | 360,208 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | 397,064 | 1,045 | (11,763 | ) | 386,346 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 7,700 | 31 | (242 | ) | 7,489 | |||||||||||||||||||
Total securities available-for-sale | $ | 791,048 | $ | 8,812 | $ | (16,617 | ) | $ | 783,243 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 31,112 | $ | 1,928 | $ | — | $ | 33,040 | ||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | 345,528 | 12,699 | (79 | ) | 358,148 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | 375,627 | 6,181 | (120 | ) | 381,688 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 8,871 | — | (697 | ) | 8,174 | |||||||||||||||||||
Total securities available-for-sale | $ | 761,138 | $ | 20,808 | $ | (896 | ) | $ | 781,050 | |||||||||||||||
Net unrealized gains (losses) on securities AFS at September 30, 2013 and December 31, 2012 and included in accumulated other comprehensive income (loss) amounted to $(5.1) million and $12.9 million, net of a deferred tax benefit of $2.7 million and liability of $7.0 million, respectively. | ||||||||||||||||||||||||
Impaired Securities | ||||||||||||||||||||||||
Management periodically reviews the Company’s investment portfolio to determine the cause, magnitude and duration of declines in the fair value of each security. Thorough evaluations of the causes of the unrealized losses are performed to determine whether the impairment is temporary or other-than-temporary in nature. Considerations such as the ability of the securities to meet cash flow requirements, levels of credit enhancements, risk of curtailment, recoverability of invested amount over a reasonable period of time and the length of time the security is in a loss position, for example, are applied in determining other-than-temporary impairment (“OTTI”). Once a decline in value is determined to be other-than-temporary, the value of the security is reduced to fair value and a corresponding charge to earnings is recognized. | ||||||||||||||||||||||||
The following table presents the estimated fair values and gross unrealized losses of investment securities that were in a continuous loss position at September 30, 2013 and December 31, 2012, by length of time that individual securities in each category have been in a continuous loss position: | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 149,819 | $ | (4,612 | ) | $ | 13 | $ | — | $ | 149,832 | $ | (4,612 | ) | ||||||||||
Collateralized mortgage obligations | 307,640 | (11,763 | ) | — | — | 307,640 | (11,763 | ) | ||||||||||||||||
Private issue collateralized mortgage obligations | 131 | (2 | ) | 5,357 | (240 | ) | 5,488 | (242 | ) | |||||||||||||||
Total | $ | 457,590 | $ | (16,377 | ) | $ | 5,370 | $ | (240 | ) | $ | 462,960 | $ | (16,617 | ) | |||||||||
December 31, 2012 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 42,782 | $ | (79 | ) | $ | — | $ | — | $ | 42,782 | $ | (79 | ) | ||||||||||
Collateralized mortgage obligations | 73,098 | (120 | ) | — | — | 73,098 | (120 | ) | ||||||||||||||||
Private issue collateralized mortgage obligations | — | — | 8,174 | (697 | ) | 8,174 | (697 | ) | ||||||||||||||||
Total | $ | 115,880 | $ | (199 | ) | $ | 8,174 | $ | (697 | ) | $ | 124,054 | $ | (896 | ) | |||||||||
At September 30, 2013, the Company held $463.0 million in investment securities with unrealized losses that are considered temporary. Included in the unrealized losses were non-agency private issue collateralized mortgage obligations (“non-agency”). At September 30, 2013, the Company held $7.5 million in non-agencies of which $5.4 million had unrealized losses for twelve months or longer. Management believes the unrealized losses for the non-agencies are the result of current market conditions and the underestimation of their value in the market. Management currently has the intent and ability to retain these investment securities with unrealized losses until the decline in value has been recovered. Stress tests are performed monthly on the non-agencies, which are higher risk bonds, within the investment portfolio using current statistical data to determine expected cash flows and forecast potential losses. The results of the stress tests during the first nine months of 2013 indicated expected future cash flows in excess of cost, and, as such the non-agencies are not considered to be OTTI. | ||||||||||||||||||||||||
Security Gains and Losses and Other-Than-Temporary Impairment of Securities | ||||||||||||||||||||||||
The following table details the Company’s sales of investment securities, the gross realized gains and losses, and impairment of securities: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
Available-for-sale | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Proceeds from sales of securities | $ | 12,738 | $ | 7,337 | $ | 17,613 | $ | 38,701 | ||||||||||||||||
Gross realized gains | 647 | 198 | 785 | 1,302 | ||||||||||||||||||||
Gross realized (losses) | — | (1 | ) | — | (204 | ) | ||||||||||||||||||
Other-than-temporary impairment of securities | — | (10 | ) | — | (39 | ) | ||||||||||||||||||
For the three and nine months ended September 30, 2013, the Company sold certain securities AFS with a total carrying value of $12.7 million and $17.6 million, respectively. For the three and nine months ended September 30, 2013, the Company recorded net gains of $647,000 and $785,000, respectively, in the consolidated statements of income in net gain on sale of securities and other-than-temporary impairment of securities. | ||||||||||||||||||||||||
For the three and nine months ended September 30, 2012, the Company sold certain securities AFS with a total carrying value of $7.3 million and $38.7 million, respectively. For the three and nine months ended September 30, 2012, the Company recorded net gains of $187,000 and $1.1 million, respectively, in the consolidated statements of income in net gain on sale of securities and other-than-temporary impairment of securities. | ||||||||||||||||||||||||
The cost basis of securities sold is measured on a specific identification basis. | ||||||||||||||||||||||||
Securities Pledged | ||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, securities with an amortized cost of $487.0 million and $465.0 million and a fair value of $484.9 million and $482.4 million, respectively, were pledged to secure Federal Home Loan Bank (“FHLB”) advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law. | ||||||||||||||||||||||||
Contractual Maturities | ||||||||||||||||||||||||
The amortized cost and estimated fair values of debt securities by contractual maturity at September 30, 2013, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||
Available-for-sale | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 1,739 | $ | 1,765 | ||||||||||||||||||||
Due after one year through five years | 24,679 | 25,403 | ||||||||||||||||||||||
Due after five years through ten years | 150,623 | 152,200 | ||||||||||||||||||||||
Due after ten years | 614,007 | 603,875 | ||||||||||||||||||||||
$ | 791,048 | $ | 783,243 | |||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ' | |||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||
The composition of the Company’s loan portfolio, excluding residential loans held for sale, at September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Residential real estate loans | $ | 564,933 | $ | 572,768 | ||||||||||||||||||||||||||||
Commercial real estate loans | 522,610 | 506,231 | ||||||||||||||||||||||||||||||
Commercial loans | 177,855 | 190,454 | ||||||||||||||||||||||||||||||
Home equity loans | 306,303 | 278,375 | ||||||||||||||||||||||||||||||
Consumer loans | 18,626 | 16,633 | ||||||||||||||||||||||||||||||
Deferred loan fees net of costs | (381 | ) | (595 | ) | ||||||||||||||||||||||||||||
Total loans | $ | 1,589,946 | $ | 1,563,866 | ||||||||||||||||||||||||||||
The Company’s lending activities are primarily conducted in Maine. The Company originates single family and multi-family residential loans, commercial real estate loans, business loans, municipal loans and a variety of consumer loans. In addition, the Company makes loans for the construction of residential homes, multi-family properties and commercial real estate properties. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographic area and the general economy. During the first nine months of 2013 and 2012, the Company sold $28.2 million and $18.8 million, respectively, of fixed-rate residential mortgage loans on the secondary market that resulted in net gains on the sale of loans of $684,000 and $268,000, respectively. | ||||||||||||||||||||||||||||||||
In connection with a branch acquisition in 2012, the Company acquired $6.0 million in performing commercial loans. The loans were recorded at fair value, which was determined by estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. As a result of this analysis, the Company recorded a fair value mark of $317,000, which will amortize over the estimated lives of the loans. Additionally, the acquired loans did not have any related allowance for loan losses (“ALL”) as they were recorded at fair value; however, an ALL will be established should the credit quality of these loans deteriorate subsequent to the acquisition. Based on the immateriality of the acquired loans and fair value mark, additional disclosures related to the acquired loans are not required. | ||||||||||||||||||||||||||||||||
The ALL is management’s best estimate of the inherent risk of loss in the Company’s loan portfolio as of the consolidated statement of condition date. Management makes various assumptions and judgments about the collectability of the loan portfolio and provides an allowance for potential losses based on a number of factors including historical losses. If those assumptions are incorrect, the ALL may not be sufficient to cover losses and may cause an increase in the allowance in the future. Among the factors that could affect the Company’s ability to collect loans and require an increase to the ALL in the future are: (i) general real estate and economic conditions; (ii) regional credit concentration; (iii) industry concentration, for example in the hospitality, tourism and recreation industries; and (iv) a requirement by federal and state regulators to increase the provision for loan losses or recognize additional charge-offs. | ||||||||||||||||||||||||||||||||
The board of directors monitors credit risk management through the Directors’ Loan Committee and the Corporate Risk Management group. The Directors’ Loan Committee reviews large exposure credit requests, monitors asset quality on a regular basis and has approval authority for credit granting policies. The Corporate Risk Management group oversees management’s systems and procedures to monitor the credit quality of the loan portfolio, conduct a loan review program, maintain the integrity of the loan rating system and determine the adequacy of the ALL. The Company’s practice is to identify credit problems early and take charge-offs as promptly as practicable. In addition, management continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. For purposes of determining the ALL, the Company disaggregates its portfolio loans into portfolio segments, which include residential real estate, commercial real estate, commercial, home equity, and consumer. | ||||||||||||||||||||||||||||||||
The following table presents activity in the ALL for the three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,232 | $ | 3,590 | $ | 5,788 | $ | 3,428 | $ | 221 | $ | 4,062 | $ | 23,321 | ||||||||||||||||||
Loans charged off | (340 | ) | (591 | ) | (379 | ) | (86 | ) | (42 | ) | — | (1,438 | ) | |||||||||||||||||||
Recoveries | — | 14 | 77 | 8 | 12 | — | 111 | |||||||||||||||||||||||||
Provision (reduction) | 709 | 547 | 465 | 137 | 40 | (1,231 | ) | 667 | ||||||||||||||||||||||||
Ending balance | $ | 6,601 | $ | 3,560 | $ | 5,951 | $ | 3,487 | $ | 231 | $ | 2,831 | $ | 22,661 | ||||||||||||||||||
The following table presents activity in the ALL for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,996 | $ | 4,549 | $ | 5,933 | $ | 2,520 | $ | 184 | $ | 2,862 | $ | 23,044 | ||||||||||||||||||
Loans charged off | (687 | ) | (762 | ) | (823 | ) | (423 | ) | (175 | ) | — | (2,870 | ) | |||||||||||||||||||
Recoveries | 5 | 106 | 275 | 10 | 40 | — | 436 | |||||||||||||||||||||||||
Provision (reduction) | 287 | (333 | ) | 566 | 1,380 | 182 | (31 | ) | 2,051 | |||||||||||||||||||||||
Ending balance | $ | 6,601 | $ | 3,560 | $ | 5,951 | $ | 3,487 | $ | 231 | $ | 2,831 | $ | 22,661 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,655 | $ | 686 | $ | 177 | $ | 449 | $ | 81 | $ | — | $ | 3,048 | ||||||||||||||||||
Collectively evaluated for impairment | 4,946 | 2,874 | 5,774 | 3,038 | 150 | 2,831 | 19,613 | |||||||||||||||||||||||||
Total ending ALL | $ | 6,601 | $ | 3,560 | $ | 5,951 | $ | 3,487 | $ | 231 | $ | 2,831 | $ | 22,661 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,059 | $ | 11,016 | $ | 3,369 | $ | 1,521 | $ | 498 | $ | — | $ | 30,463 | ||||||||||||||||||
Collectively evaluated for impairment | 550,493 | 511,594 | 174,486 | 304,782 | 18,128 | — | 1,559,483 | |||||||||||||||||||||||||
Total ending loans balance | $ | 564,552 | $ | 522,610 | $ | 177,855 | $ | 306,303 | $ | 18,626 | $ | — | $ | 1,589,946 | ||||||||||||||||||
The following table presents activity in the ALL for the three months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,352 | $ | 4,837 | $ | 6,368 | $ | 2,319 | $ | 164 | $ | 3,222 | $ | 23,262 | ||||||||||||||||||
Loans charged off | (578 | ) | — | (730 | ) | (70 | ) | (38 | ) | — | (1,416 | ) | ||||||||||||||||||||
Recoveries | 5 | 53 | 85 | 1 | 2 | — | 146 | |||||||||||||||||||||||||
Provision (reduction) | 860 | (215 | ) | 73 | 108 | 34 | (1 | ) | 859 | |||||||||||||||||||||||
Ending balance | $ | 6,639 | $ | 4,675 | $ | 5,796 | $ | 2,358 | $ | 162 | $ | 3,221 | $ | 22,851 | ||||||||||||||||||
The following table presents activity in the ALL for the nine months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,398 | $ | 5,702 | $ | 4,846 | $ | 2,704 | $ | 420 | $ | 2,941 | $ | 23,011 | ||||||||||||||||||
Loans charged off | (1,024 | ) | (209 | ) | (1,146 | ) | (921 | ) | (66 | ) | — | (3,366 | ) | |||||||||||||||||||
Recoveries | 73 | 219 | 205 | 21 | 12 | — | 530 | |||||||||||||||||||||||||
Provision (reduction) | 1,192 | (1,037 | ) | 1,891 | 554 | (204 | ) | 280 | 2,676 | |||||||||||||||||||||||
Ending balance | $ | 6,639 | $ | 4,675 | $ | 5,796 | $ | 2,358 | $ | 162 | $ | 3,221 | $ | 22,851 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,071 | $ | 343 | $ | 376 | $ | 265 | $ | 39 | $ | — | $ | 3,094 | ||||||||||||||||||
Collectively evaluated for impairment | 4,568 | 4,332 | 5,420 | 2,093 | 123 | 3,221 | 19,757 | |||||||||||||||||||||||||
Total ending ALL | $ | 6,639 | $ | 4,675 | $ | 5,796 | $ | 2,358 | $ | 162 | $ | 3,221 | $ | 22,851 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,554 | $ | 7,121 | $ | 3,829 | $ | 1,668 | $ | 263 | $ | — | $ | 25,435 | ||||||||||||||||||
Collectively evaluated for impairment | 558,739 | 494,162 | 174,454 | 272,508 | 15,302 | — | 1,515,165 | |||||||||||||||||||||||||
Total ending loans balance | $ | 571,293 | $ | 501,283 | $ | 178,283 | $ | 274,176 | $ | 15,565 | $ | — | $ | 1,540,600 | ||||||||||||||||||
The following table presents the activity in the ALL for the year ended December 31, 2012: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,398 | $ | 5,702 | $ | 4,846 | $ | 2,704 | $ | 420 | $ | 2,941 | $ | 23,011 | ||||||||||||||||||
Loans charged off | (1,197 | ) | (593 | ) | (1,393 | ) | (1,234 | ) | (85 | ) | — | (4,502 | ) | |||||||||||||||||||
Recoveries | 73 | 222 | 406 | 23 | 20 | — | 744 | |||||||||||||||||||||||||
Provision (reduction) | 1,722 | (782 | ) | 2,074 | 1,027 | (171 | ) | (79 | ) | 3,791 | ||||||||||||||||||||||
Ending balance | $ | 6,996 | $ | 4,549 | $ | 5,933 | $ | 2,520 | $ | 184 | $ | 2,862 | $ | 23,044 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,255 | $ | 265 | $ | 286 | $ | 261 | $ | 39 | $ | — | $ | 3,106 | ||||||||||||||||||
Collectively evaluated for impairment | 4,741 | 4,284 | 5,647 | 2,259 | 145 | 2,862 | 19,938 | |||||||||||||||||||||||||
Total ending ALL | $ | 6,996 | $ | 4,549 | $ | 5,933 | $ | 2,520 | $ | 184 | $ | 2,862 | $ | 23,044 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13,805 | $ | 7,968 | $ | 3,610 | $ | 1,515 | $ | 259 | $ | — | $ | 27,157 | ||||||||||||||||||
Collectively evaluated for impairment | 558,368 | 498,263 | 186,844 | 276,860 | 16,374 | — | 1,536,709 | |||||||||||||||||||||||||
Total ending loans balance | $ | 572,173 | $ | 506,231 | $ | 190,454 | $ | 278,375 | $ | 16,633 | $ | — | $ | 1,563,866 | ||||||||||||||||||
The ALL for the Company’s portfolio segments is determined based on loan balances and the historical performance factor of each portfolio segment. The significant changes in the ALL at September 30, 2013 compared to December 31, 2012 were within the home equity and commercial real estate portfolio segments. The increase in the allocation of ALL for home equity was primarily due to the 10.0% increase in loan balances and its historical performance, while the decrease in commercial real estate allocation was due to the improvement in that segment's performance factor. | ||||||||||||||||||||||||||||||||
The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To ensure that credit concentrations can be effectively identified, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored by the Credit Risk Policy Committee. As of September 30, 2013, the two most significant industry exposures within the commercial real estate loan portfolio were non-residential building operators (operators of commercial and industrial buildings, retail establishments, theaters, banks and insurance buildings) and lodging (inns, bed & breakfasts, ski lodges, tourist cabins, hotels and motels). At September 30, 2013, exposure to these two industries as a percentage of total commercial real estate loans was 29% and 27%, respectively. | ||||||||||||||||||||||||||||||||
To further identify loans with similar risk profiles, the Company categorizes each portfolio segment into classes by credit risk characteristic and applies a credit quality indicator to each portfolio segment. The indicators for commercial, commercial real estate and residential real estate loans are represented by Grades 1 through 10 as outlined below. In general, risk ratings are adjusted periodically throughout the year as updated analysis and review warrants. This process may include, but is not limited to, annual credit and loan reviews, periodic reviews of loan performance metrics, such as delinquency rates, and quarterly reviews of adversely risk rated loans. The Company uses the following definitions when assessing grades for the purpose of evaluating the risk and adequacy of the ALL: | ||||||||||||||||||||||||||||||||
• | Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties. | |||||||||||||||||||||||||||||||
• | Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company such that they warrant adverse classification. | |||||||||||||||||||||||||||||||
• | Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. This classification is used if borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral. | |||||||||||||||||||||||||||||||
• | Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. | |||||||||||||||||||||||||||||||
• | Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted. | |||||||||||||||||||||||||||||||
Asset quality indicators are periodically reassessed to appropriately reflect the risk composition of the Company’s loan portfolio. Home equity and consumer loans are not individually risk rated, but rather analyzed as groups taking into account delinquency rates and other economic conditions which may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due over 90 days and non-accrual loans are considered non-performing. | ||||||||||||||||||||||||||||||||
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 545,922 | $ | 475,515 | $ | 153,688 | $ | — | $ | — | ||||||||||||||||||||||
Performing | — | — | — | 304,781 | 18,130 | |||||||||||||||||||||||||||
Special Mention (Grade 7) | 3,073 | 8,050 | 10,511 | — | — | |||||||||||||||||||||||||||
Substandard (Grade 8) | 15,557 | 39,045 | 13,656 | — | — | |||||||||||||||||||||||||||
Non-performing | — | — | — | 1,522 | 496 | |||||||||||||||||||||||||||
Total | $ | 564,552 | $ | 522,610 | $ | 177,855 | $ | 306,303 | $ | 18,626 | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 555,444 | $ | 440,610 | $ | 165,460 | $ | — | $ | — | ||||||||||||||||||||||
Performing | — | — | — | 276,742 | 16,376 | |||||||||||||||||||||||||||
Special Mention (Grade 7) | 1,291 | 17,069 | 7,449 | — | — | |||||||||||||||||||||||||||
Substandard (Grade 8) | 15,438 | 48,552 | 17,545 | — | — | |||||||||||||||||||||||||||
Non-performing | — | — | — | 1,633 | 257 | |||||||||||||||||||||||||||
Total | $ | 572,173 | $ | 506,231 | $ | 190,454 | $ | 278,375 | $ | 16,633 | ||||||||||||||||||||||
The Company closely monitors the performance of its loan portfolio. Loans past due 30 days or more are considered delinquent. In general, consumer loans will be charged off if the loan is delinquent for 90 consecutive days. Commercial and real estate loans are charged off in part or in full if they appear uncollectible. A loan is placed on non-accrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is well-secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is assured by a specific event, such as the closing of a pending sale contract. When one loan to a borrower is placed on non-accrual status, generally all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual status. All previously accrued and unpaid interest is reversed at this time. Interest payments received on non-accrual loans (including impaired loans) are applied as a reduction of principal. A loan remains on non-accrual status until all principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan may be returned to accrual status when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period. Unsecured loans, however, are not normally placed on non-accrual status because they are charged-off once their collectability is in doubt. | ||||||||||||||||||||||||||||||||
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include troubled debt restructured loans (“TDRs”), and loans past due over 90 days and accruing as of the following dates: | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater | Total | Current | Total Loans | Loans > 90 | Non-Accrual | |||||||||||||||||||||||||
Past Due | Past Due | than | Past Due | Outstanding | Days Past | Loans | ||||||||||||||||||||||||||
90 Days | Due and | |||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 774 | $ | 855 | $ | 6,876 | $ | 8,505 | $ | 556,047 | $ | 564,552 | $ | — | $ | 10,224 | ||||||||||||||||
Commercial real estate | 1,971 | 122 | 4,483 | 6,576 | 516,034 | 522,610 | — | 9,847 | ||||||||||||||||||||||||
Commercial | 443 | 230 | 2,568 | 3,241 | 174,614 | 177,855 | 24 | 2,994 | ||||||||||||||||||||||||
Home equity | 1,136 | 171 | 962 | 2,269 | 304,034 | 306,303 | — | 1,522 | ||||||||||||||||||||||||
Consumer | 52 | 19 | 472 | 543 | 18,083 | 18,626 | — | 496 | ||||||||||||||||||||||||
Total | $ | 4,376 | $ | 1,397 | $ | 15,361 | $ | 21,134 | $ | 1,568,812 | $ | 1,589,946 | $ | 24 | $ | 25,083 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 1,459 | $ | 850 | $ | 8,410 | $ | 10,719 | $ | 561,454 | $ | 572,173 | $ | 193 | $ | 10,584 | ||||||||||||||||
Commercial real estate | 896 | 2,227 | 5,380 | 8,503 | 497,728 | 506,231 | 138 | 6,719 | ||||||||||||||||||||||||
Commercial | 1,079 | 68 | 2,969 | 4,116 | 186,338 | 190,454 | 160 | 3,409 | ||||||||||||||||||||||||
Home equity | 2,230 | 355 | 1,105 | 3,690 | 274,685 | 278,375 | 118 | 1,514 | ||||||||||||||||||||||||
Consumer | 342 | 199 | 259 | 800 | 15,833 | 16,633 | 2 | 257 | ||||||||||||||||||||||||
Total | $ | 6,006 | $ | 3,699 | $ | 18,123 | $ | 27,828 | $ | 1,536,038 | $ | 1,563,866 | $ | 611 | $ | 22,483 | ||||||||||||||||
The Company takes a conservative approach in credit risk management and remains focused on community lending and reinvesting. The Company’s Credit Administration group works closely with borrowers experiencing credit problems to assist in loan repayment or term modifications. TDRs consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that it would not otherwise consider. TDRs involve term modifications or a reduction of either interest or principal. Once such an obligation has been restructured, it will continue to remain in a restructured status until paid in full. | ||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the allowance related to TDRs was $604,000 and $494,000, respectively. The specific reserve component was determined by discounting the total expected future cash flows from the borrower, or if the loan is currently collateral-dependent, using the fair value of the underlying collateral, which was obtained through independent appraisals and internal evaluations. At September 30, 2013, the Company did not have any commitments to lend additional funds to borrowers with loans classified as TDRs. | ||||||||||||||||||||||||||||||||
During the first nine months of 2013, the Company modified nine loans as TDRs, which had current balances of $1.2 million at September 30, 2013. During the first nine months of 2012, the Company modified seven loans with current balances of $1.7 million at September 30, 2012. The modification of these loans as TDRs did not have a material financial effect on the Company. Loans restructured due to credit difficulties that are now performing were $5.4 million at September 30, 2013 and $4.7 million at December 31, 2012. The Company had one TDR that subsequently defaulted during the first nine months of 2013, which had a current balance of $550,000 at September 30, 2013. The Company had no TDRs that subsequently defaulted during the first nine months of 2012. | ||||||||||||||||||||||||||||||||
The following is a summary of accruing and non-accruing TDRs by portfolio segment as of the following dates: | ||||||||||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | Current | |||||||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | Balance | |||||||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Residential real estate | 24 | $ | 3,940 | $ | 4,099 | $ | 3,900 | |||||||||||||||||||||||||
Commercial real estate | 9 | 2,844 | 2,897 | 2,574 | ||||||||||||||||||||||||||||
Commercial | 5 | 386 | 386 | 375 | ||||||||||||||||||||||||||||
Consumer | 1 | 3 | 3 | 1 | ||||||||||||||||||||||||||||
Total | 39 | $ | 7,173 | $ | 7,385 | $ | 6,850 | |||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Residential real estate | 20 | $ | 3,305 | $ | 3,434 | $ | 3,286 | |||||||||||||||||||||||||
Commercial real estate | 6 | 2,602 | 2,649 | 2,344 | ||||||||||||||||||||||||||||
Commercial | 3 | 303 | 303 | 236 | ||||||||||||||||||||||||||||
Consumer | 1 | 3 | 3 | 2 | ||||||||||||||||||||||||||||
Total | 30 | $ | 6,213 | $ | 6,389 | $ | 5,868 | |||||||||||||||||||||||||
Impaired loans consist of non-accrual loans and TDRs. The following is a summary of impaired loan balances and associated allowance by portfolio segment as of the following dates and for the periods then ended: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Balance | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 10,746 | $ | 10,746 | $ | 1,655 | $ | 10,457 | $ | 32 | $ | 10,130 | $ | 91 | ||||||||||||||||||
Commercial real estate | 8,497 | 8,497 | 686 | 6,503 | 9 | 4,976 | 18 | |||||||||||||||||||||||||
Commercial | 2,347 | 2,347 | 177 | 2,606 | 3 | 2,721 | 6 | |||||||||||||||||||||||||
Home equity | 1,263 | 1,263 | 449 | 1,245 | — | 1,307 | — | |||||||||||||||||||||||||
Consumer | 480 | 480 | 81 | 481 | — | 466 | — | |||||||||||||||||||||||||
Ending Balance | $ | 23,333 | $ | 23,333 | $ | 3,048 | $ | 21,292 | $ | 44 | $ | 19,600 | $ | 115 | ||||||||||||||||||
Without allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 3,313 | $ | 4,439 | $ | — | $ | 2,816 | $ | 9 | $ | 2,908 | $ | 22 | ||||||||||||||||||
Commercial real estate | 2,519 | 3,167 | — | 3,663 | 10 | 3,750 | 56 | |||||||||||||||||||||||||
Commercial | 1,022 | 1,213 | — | 907 | 2 | 699 | 8 | |||||||||||||||||||||||||
Home equity | 258 | 450 | — | 291 | — | 356 | — | |||||||||||||||||||||||||
Consumer | 18 | 38 | — | 7 | — | 3 | — | |||||||||||||||||||||||||
Ending Balance | $ | 7,130 | $ | 9,307 | $ | — | $ | 7,684 | $ | 21 | $ | 7,716 | $ | 86 | ||||||||||||||||||
Total impaired loans | $ | 30,463 | $ | 32,640 | $ | 3,048 | $ | 28,976 | $ | 65 | $ | 27,316 | $ | 201 | ||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
With related allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 11,021 | $ | 11,021 | $ | 2,255 | $ | 10,585 | $ | 114 | ||||||||||||||||||||||
Commercial real estate | 4,296 | 4,296 | 265 | 5,551 | — | |||||||||||||||||||||||||||
Commercial | 2,971 | 2,971 | 286 | 3,927 | — | |||||||||||||||||||||||||||
Home equity | 1,236 | 1,236 | 261 | 1,289 | — | |||||||||||||||||||||||||||
Consumer | 257 | 257 | 39 | 239 | — | |||||||||||||||||||||||||||
Ending Balance | $ | 19,781 | $ | 19,781 | $ | 3,106 | $ | 21,591 | $ | 114 | ||||||||||||||||||||||
Without related allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 2,784 | $ | 3,841 | $ | — | $ | 2,548 | $ | 26 | ||||||||||||||||||||||
Commercial real estate | 3,672 | 4,127 | — | 2,056 | 33 | |||||||||||||||||||||||||||
Commercial | 639 | 956 | — | 389 | 13 | |||||||||||||||||||||||||||
Home equity | 279 | 550 | — | 617 | — | |||||||||||||||||||||||||||
Consumer | 2 | 2 | — | 6 | — | |||||||||||||||||||||||||||
Ending Balance | $ | 7,376 | $ | 9,476 | $ | — | $ | 5,616 | $ | 72 | ||||||||||||||||||||||
Total impaired loans | $ | 27,157 | $ | 29,257 | $ | 3,106 | $ | 27,207 | $ | 186 | ||||||||||||||||||||||
GOODWILL_CORE_DEPOSIT_AND_TRUS
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES | ' | |||||||||||||||||||||||
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES | ||||||||||||||||||||||||
The Company has recognized goodwill and certain identifiable intangible assets in connection with certain acquisitions of other businesses in prior years. The changes in goodwill, core deposit intangible and trust relationship intangible for the nine months ended September 30, 2013 are shown in the table below: | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Banking | Financial | Total | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 40,902 | $ | 6,734 | $ | 47,636 | ||||||||||||||||||
2013 activity | — | — | — | |||||||||||||||||||||
Balance at September 30, 2013 | $ | 40,902 | $ | 6,734 | $ | 47,636 | ||||||||||||||||||
Core Deposit Intangible | Trust Relationship Intangible | |||||||||||||||||||||||
Total | Accumulated Amortization | Net | Total | Accumulated Amortization | Net | |||||||||||||||||||
Balance at December 31, 2012 | $ | 17,300 | $ | (12,014 | ) | $ | 5,286 | $ | 753 | $ | (376 | ) | $ | 377 | ||||||||||
2013 amortization | — | (806 | ) | (806 | ) | — | (57 | ) | (57 | ) | ||||||||||||||
Balance at September 30, 2013 | $ | 17,300 | $ | (12,820 | ) | $ | 4,480 | $ | 753 | $ | (433 | ) | $ | 320 | ||||||||||
The following table reflects the expected amortization of intangible assets over the remaining estimated useful life (assuming no acquisitions, divestitures, or impairment) as of September 30, 2013: | ||||||||||||||||||||||||
Core Deposit | Trust | |||||||||||||||||||||||
Intangible | Relationship | |||||||||||||||||||||||
Intangible | ||||||||||||||||||||||||
2013 | $ | 268 | $ | 19 | ||||||||||||||||||||
2014 | 1,073 | 75 | ||||||||||||||||||||||
2015 | 1,073 | 75 | ||||||||||||||||||||||
2016 | 1,073 | 75 | ||||||||||||||||||||||
2017 | 993 | 76 | ||||||||||||||||||||||
Total unamortized intangible assets | $ | 4,480 | $ | 320 | ||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||||||
The Company maintains an unfunded, non-qualified supplemental executive retirement plan for certain officers and provides medical and life insurance to certain eligible retired employees. The components of net period benefit cost for the periods ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Supplemental Executive Retirement Plan | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net period benefit cost | ||||||||||||||||
Service cost | $ | 82 | $ | 67 | $ | 246 | $ | 201 | ||||||||
Interest cost | 94 | 102 | 282 | 306 | ||||||||||||
Recognized net actuarial loss | 56 | 29 | 168 | 87 | ||||||||||||
Recognized prior service cost | 5 | 5 | 15 | 15 | ||||||||||||
Net period benefit cost (1) | $ | 237 | $ | 203 | $ | 711 | $ | 609 | ||||||||
Other Postretirement Benefit Plan | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net period benefit cost | ||||||||||||||||
Service cost | $ | 19 | $ | 17 | $ | 57 | $ | 51 | ||||||||
Interest cost | 35 | 37 | 105 | 111 | ||||||||||||
Recognized net actuarial loss | 11 | 8 | 33 | 24 | ||||||||||||
Net period benefit cost (1) | $ | 65 | $ | 62 | $ | 195 | $ | 186 | ||||||||
(1) Presented within the consolidated statements of income in salaries and employee benefits. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
STOCK-BASED COMPENSATION PLANS | ' |
STOCK-BASED COMPENSATION PLANS | |
On February 26, 2013, the Company granted 6,325 restricted stock awards to certain officers of the Company and its subsidiaries under the 2012 Equity and Incentive Plan. The holders of these awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The restricted stock awards have been determined to have a fair value of $33.72 per unit, based on the market price of the Company’s common stock on the date of grant. The restricted stock awards vest over a three-year period. | |
Under the Long-term Performance Share Plan, 6,797 shares vested upon the achievement of certain revenue and expense goals under the 2010-2012 Long-term Performance Share Plan metrics and 4,352 shares, net of taxes, were issued to participants. Under the Management Stock Purchase Plan, 7,801 shares were purchased by employees at a discount in lieu of the management employees’ annual incentive bonus during the first three months of 2013. During the first quarter of 2013, the Company granted 2,304 deferred stock awards under the Defined Contribution Retirement Plan. | |
On March 26, 2013, the Company approved the Amended and Restated Long-Term Performance Share Plan for the 2013 – 2015 performance period (the “2013 – 2015 LTIP”). Pursuant to the 2013 – 2015 LTIP, certain executive officers of the Company are eligible to receive equity compensation based on the attainment of certain performance goals set forth in the 2013 – 2015 LTIP. Performance goals under the 2013-2015 LTIP include specific revenue growth and efficiency ratio goals for threshold, target and superior levels of performance, and a minimum level of performance for the Company’s non-performing asset to total asset ratio at December 31, 2015 and a minimum level of net income growth for the three-year period ending December 31, 2015. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT | ' | |||||||||||||||||||
FAIR VALUE MEASUREMENT AND DISCLOSURE | ||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined using quoted market prices. However, in many instances, quoted market prices are not available. In such instances, fair values are determined using various valuation techniques. Various assumptions and observable inputs must be relied upon in applying these techniques. GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. | ||||||||||||||||||||
GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has elected the fair value option for its loans held for sale. Electing the fair value option for loans held for sale enables the Company’s financial position to more clearly align with the economic value of the actively traded asset. | ||||||||||||||||||||
The fair value hierarchy for valuation of an asset or liability is as follows: | ||||||||||||||||||||
Level 1: Valuation is based upon unadjusted quoted prices in active markets for identical assets and liabilities that the entity has the ability to access as of the measurement date. | ||||||||||||||||||||
Level 2: Valuation is determined from quoted prices for similar assets or liabilities in active markets, from quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market. | ||||||||||||||||||||
Level 3: Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability. | ||||||||||||||||||||
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. | ||||||||||||||||||||
Financial Instruments Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||
Securities Available-for-sale: The fair value of debt securities available-for-sale is reported utilizing prices provided by an independent pricing service based on recent trading activity and other observable information including, but not limited to, dealer quotes, market spreads, cash flows, market interest rate curves, market consensus prepayment speeds, credit information, and the bond’s terms and conditions. The fair value of debt securities is classified as Level 2. | ||||||||||||||||||||
Trading Account Assets: Trading account assets are invested in mutual funds and classified as Level 1 based upon quoted prices. | ||||||||||||||||||||
Loans Held for Sale: The fair value of loans held for sale is determined using quoted secondary market prices or executed sales agreements and classified as Level 2. | ||||||||||||||||||||
Derivatives: The fair value of interest rate swaps is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2013 and December 31, 2012, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings. | ||||||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||||||||
Readily | Observable | Company | Total | |||||||||||||||||
Available | Market | Determined | ||||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | 29,200 | $ | — | $ | 29,200 | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | — | 360,208 | — | 360,208 | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | — | 386,346 | — | 386,346 | ||||||||||||||||
Private issue collateralized mortgage obligations | — | 7,489 | — | 7,489 | ||||||||||||||||
Trading account assets | 2,309 | — | — | 2,309 | ||||||||||||||||
Loans held for sale | — | 1,313 | — | 1,313 | ||||||||||||||||
Customer interest rate swap agreements | — | 192 | — | 192 | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | — | 5,560 | — | 5,560 | ||||||||||||||||
Customer interest rate swap agreements | — | 192 | — | 192 | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | 33,040 | $ | — | $ | 33,040 | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | — | 358,148 | — | 358,148 | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | — | 381,688 | — | 381,688 | ||||||||||||||||
Private issue collateralized mortgage obligations | — | 8,174 | — | 8,174 | ||||||||||||||||
Trading account assets | 2,300 | — | — | 2,300 | ||||||||||||||||
Customer interest rate swap agreements | — | 496 | — | 496 | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | — | 11,084 | — | 11,084 | ||||||||||||||||
Customer interest rate swap agreements | — | 496 | — | 496 | ||||||||||||||||
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2013. The Company’s procedure for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. | ||||||||||||||||||||
Financial Instruments Recorded at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||
The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. | ||||||||||||||||||||
Collateral-Dependent Impaired Loans: Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, the Company measures impairment in accordance with GAAP. Impaired loans are measured using one of three methods: (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; (iii) or the fair value of the collateral. If the measure is less than an impaired loan’s recorded investment, an impairment loss is recognized as part of the ALL. Accordingly, certain impaired loans may be subject to measurement at fair value on a non-recurring basis. Management has estimated the fair values of these assets using Level 2 inputs, such as the fair value of collateral based on independent third-party market approach appraisals for collateral-dependent loans, and Level 3 inputs where circumstances warrant an adjustment to the appraised value based on the age of the appraisal and/or comparable sales, condition of the collateral, and market conditions. | ||||||||||||||||||||
Mortgage Servicing Rights: The Company accounts for mortgage servicing assets at cost, subject to impairment testing. When the carrying value exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The model utilizes a variety of observable inputs for its assumptions, the most significant of which are loan prepayment assumptions and the discount rate used to discount future cash flows. Other assumptions include delinquency rates, servicing cost inflation and annual unit loan cost. Mortgage servicing rights are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||||||
Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value | ||||||||||||||||||||
The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis consist of other real estate owned (“OREO”). | ||||||||||||||||||||
OREO properties acquired through foreclosure or deed in lieu of foreclosure are recorded at the fair value of the real estate, less costs to sell. Any write-down of the recorded investment in the related loan is charged to the allowance for loan losses upon transfer to OREO. Upon acquisition of a property, a current appraisal or a broker’s opinion is used to substantiate fair value for the property. After foreclosure, management periodically obtains updated valuations of the OREO assets and, if additional impairments are deemed necessary, the subsequent write-downs for declines in value are recorded through a valuation allowance and a provision for losses charged to other non-interest expense on the consolidated statements of income. Certain assets require assumptions, such as expected future cash flows, that are not observable in an active market in determination of fair value and are classified as Level 3. | ||||||||||||||||||||
Assets measured at fair value on a non-recurring basis as of September 30, 2013 and December 31, 2012 are included below: | ||||||||||||||||||||
Readily | Observable | Company | Total | |||||||||||||||||
Available | Market | Determined | ||||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral-dependent impaired loans (1) | $ | — | $ | — | $ | 13,006 | $ | 13,006 | ||||||||||||
Other real estate owned | — | — | 1,802 | 1,802 | ||||||||||||||||
Mortgage servicing rights | — | 1,463 | — | 1,463 | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral-dependent impaired loans (1) | $ | — | $ | — | $ | 9,183 | $ | 9,183 | ||||||||||||
Other real estate owned | — | — | 1,313 | 1,313 | ||||||||||||||||
Mortgage servicing rights | — | 879 | — | 879 | ||||||||||||||||
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2013: | ||||||||||||||||||||
Fair Value | Valuation Methodology | Unobservable input | Discount Range | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Collateral-dependent impaired loans: (1) | ||||||||||||||||||||
Partially charged-off | $ | 4,246 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | ||||||||||||||
Specifically reserved | 8,760 | Market approach appraisal of collateral | Management adjustment of appraisal | — | -2 | |||||||||||||||
Other real estate owned | 1,802 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | |||||||||||||||
Estimated selling cost | 6 – 10 | % | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Collateral-dependent impaired loans:(1) | ||||||||||||||||||||
Partially charged-off | $ | 3,524 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | ||||||||||||||
Specifically reserved | 5,659 | Market approach appraisal of collateral | Management adjustment of appraisal | — | -2 | |||||||||||||||
Other real estate owned | 1,313 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | |||||||||||||||
Estimated selling cost | 6 – 10 | % | ||||||||||||||||||
-1 | Does not include impaired loans that are measured by the present value of expected future cash flows discounted at the loan’s effective interest rate. | |||||||||||||||||||
-2 | The specific reserve for collateral-dependent impaired loans is determined by any deficit of 75% of collateral value over the recorded investment. | |||||||||||||||||||
GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments. | ||||||||||||||||||||
Cash and Due from Banks: The carrying amounts reported in the consolidated statement of condition approximate fair value. | ||||||||||||||||||||
FHLB and Federal Reserve Bank Stock and Investments in Trust Preferred Securities Affiliates: The carrying amounts reported in the consolidated statements of condition approximate fair value. | ||||||||||||||||||||
Loans: For variable rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair value of other loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | ||||||||||||||||||||
Interest Receivable and Payable: The carrying amounts reported in the consolidated statements of condition approximate fair value. | ||||||||||||||||||||
Deposits: The fair value of deposits with no stated maturity is equal to the carrying amount. The fair value of certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates and remaining maturities for currently offered certificates of deposit. | ||||||||||||||||||||
Borrowings: The carrying amounts of short-term borrowings from the FHLB, securities sold under repurchase agreements, notes payable and other short-term borrowings approximate fair value. The fair values of long-term borrowings and commercial repurchase agreements are based on the discounted cash flows using current rates for advances of similar remaining maturities. | ||||||||||||||||||||
Junior Subordinated Debentures: The carrying amounts reported in the consolidated statements of condition approximate fair value. | ||||||||||||||||||||
The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at September 30, 2013: | ||||||||||||||||||||
Carrying | Fair Value | Readily | Observable | Company | ||||||||||||||||
Amount | Available | Market | Determined | |||||||||||||||||
Market | Prices | Market | ||||||||||||||||||
Prices | (Level 2) | Prices | ||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 57,086 | $ | 57,086 | $ | 57,086 | $ | — | $ | — | ||||||||||
Securities available-for-sale | 783,243 | 783,243 | — | 783,243 | — | |||||||||||||||
FHLB and Federal Reserve Bank stock | 19,724 | 19,724 | 19,724 | — | — | |||||||||||||||
Trading account assets | 2,309 | 2,309 | 2,309 | — | — | |||||||||||||||
Loans held for sale | 1,313 | 1,313 | — | 1,313 | — | |||||||||||||||
Residential real estate loans | 557,009 | 572,253 | — | — | 572,253 | |||||||||||||||
Commercial real estate loans | 518,542 | 519,587 | — | — | 519,587 | |||||||||||||||
Commercial loans | 171,054 | 170,846 | — | — | 170,846 | |||||||||||||||
Home equity loans | 302,318 | 303,794 | — | — | 303,794 | |||||||||||||||
Consumer loans | 18,362 | 18,743 | — | — | 18,743 | |||||||||||||||
Mortgage servicing rights | 730 | 1,463 | — | 1,463 | — | |||||||||||||||
Interest receivable | 5,678 | 5,678 | — | 5,678 | — | |||||||||||||||
Investment in trust preferred securities affiliates | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 192 | 192 | — | 192 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 1,973,364 | 1,977,585 | 1,439,307 | 538,278 | — | |||||||||||||||
FHLB advances | 96,130 | 99,374 | — | 99,374 | — | |||||||||||||||
Commercial repurchase agreements | 30,154 | 32,311 | — | 32,311 | — | |||||||||||||||
Other borrowed funds | 177,172 | 177,172 | 177,172 | — | — | |||||||||||||||
Junior subordinated debentures | 43,896 | 43,896 | — | 43,896 | — | |||||||||||||||
Interest payable | 560 | 560 | 560 | — | — | |||||||||||||||
Interest rate swap agreements | 5,560 | 5,560 | — | 5,560 | — | |||||||||||||||
Customer interest rate swap agreements | 192 | 192 | — | 192 | — | |||||||||||||||
The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 2012: | ||||||||||||||||||||
Carrying | Fair Value | Readily | Observable | Company | ||||||||||||||||
Amount | Available | Market | Determined | |||||||||||||||||
Market | Prices | Market | ||||||||||||||||||
Prices | (Level 2) | Prices | ||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 58,290 | $ | 58,290 | $ | 58,290 | $ | — | $ | — | ||||||||||
Securities available-for-sale | 781,050 | 781,050 | — | 781,050 | — | |||||||||||||||
FHLB and Federal Reserve Bank stock | 21,034 | 21,034 | 21,034 | — | — | |||||||||||||||
Trading account assets | 2,300 | 2,300 | 2,300 | — | — | |||||||||||||||
Residential real estate loans | 564,184 | 591,139 | — | — | 591,139 | |||||||||||||||
Commercial real estate loans | 501,037 | 492,602 | — | — | 492,602 | |||||||||||||||
Commercial loans | 183,680 | 179,519 | — | — | 179,519 | |||||||||||||||
Home equity loans | 275,498 | 277,194 | — | — | 277,194 | |||||||||||||||
Consumer loans | 16,423 | 16,866 | — | — | 16,866 | |||||||||||||||
Mortgage servicing rights | 542 | 879 | — | 879 | — | |||||||||||||||
Interest receivable | 6,215 | 6,215 | — | 6,215 | — | |||||||||||||||
Investment in trust preferred securities affiliates | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 496 | 496 | — | 496 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 1,929,469 | 1,936,446 | 1,339,290 | 597,156 | — | |||||||||||||||
FHLB advances | 56,404 | 60,813 | — | 60,813 | — | |||||||||||||||
Commercial repurchase agreements | 66,187 | 69,067 | — | 69,067 | — | |||||||||||||||
Other borrowed funds | 193,753 | 193,753 | 193,753 | — | — | |||||||||||||||
Junior subordinated debentures | 43,819 | 43,819 | — | 43,819 | — | |||||||||||||||
Interest payable | 905 | 905 | 905 | — | — | |||||||||||||||
Interest rate swap agreements | 11,084 | 11,084 | — | 11,084 | — | |||||||||||||||
Customer interest rate swap agreements | 496 | 496 | — | 496 | — | |||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Legal Contingencies | ||||||||
In the normal course of business, the Company and its subsidiaries are subject to pending and threatened legal actions. Although the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions with counsel, management believes that based on the information currently available the outcome of such actions, individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position as a whole. | ||||||||
Reserves are established for legal claims only when losses associated with the claims are judged to be probable and the loss can be reasonably estimated. In many lawsuits and arbitrations, it is not possible to determine whether a liability has been incurred or to estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case a reserve will not be recognized until that time. | ||||||||
As of September 30, 2013, the Company did not have any loss contingencies that were both probable and reasonably estimable and, therefore, has not accrued for any legal contingencies on the consolidated statements of condition. | ||||||||
Financial Instruments | ||||||||
In the normal course of business, the Company is a party to both on-balance sheet and off-balance sheet financial instruments involving, to varying degrees, elements of credit risk and interest rate risk in addition to the amounts recognized in the consolidated statements of condition. | ||||||||
A summary of the contractual and notional amounts of the Company’s financial instruments follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Lending-Related Instruments: | ||||||||
Loan origination commitments and unadvanced lines of credit: | ||||||||
Home equity | $ | 320,993 | $ | 277,373 | ||||
Commercial and commercial real estate | 15,072 | 20,016 | ||||||
Residential | 12,600 | 9,497 | ||||||
Letters of credit | 2,106 | 1,836 | ||||||
Other commitments | 2,228 | 16,845 | ||||||
Derivative Financial Instruments: | ||||||||
Forward mortgage loan sale commitments | 3,259 | — | ||||||
Derivative mortgage loan commitments | 2,000 | — | ||||||
Customer loan swaps | 15,802 | 16,093 | ||||||
Interest rate swaps | 43,000 | 43,000 | ||||||
Lending-Related Instruments | ||||||||
The contractual amounts of the Company’s lending-related financial instruments do not necessarily represent future cash requirements since certain of these instruments may expire without being funded and others may not be fully drawn upon. These instruments are subject to the Company’s credit approval process, including an evaluation of the customer’s creditworthiness and related collateral requirements. Commitments generally have fixed expiration dates or other termination clauses. | ||||||||
Derivative Financial Instruments | ||||||||
The Company uses derivative financial instruments for risk management purposes (primarily interest rate risk) and not for trading or speculative purposes. The Company controls the credit risk of these instruments through collateral, credit approvals and monitoring procedures. | ||||||||
Interest Rate Swaps | ||||||||
The Company’s interest rate swap arrangements contain provisions that require the Company to post cash collateral with the counterparty for contracts that are in a net liability position based on their fair values and the Company’s credit rating. The Company had a notional amount of $43.0 million in variable- for fixed- interest rate swap agreements on its junior subordinated debentures and $6.0 million in cash held as collateral. The terms of the interest rate swap agreements are as follows: | ||||||||
Notional Amount | Fixed-Rate | Maturity Date | ||||||
$ | 10,000 | 5.09% | June 30, 2021 | |||||
10,000 | 5.84% | June 30, 2029 | ||||||
10,000 | 5.71% | June 30, 2030 | ||||||
5,000 | 4.35% | March 30, 2031 | ||||||
8,000 | 4.14% | July 7, 2031 | ||||||
The fair value of the swap agreements on the junior subordinated debentures at September 30, 2013 was a liability of $5.6 million. As this instrument qualifies as a highly effective cash flow hedge, the change in the fair value of the interest rate swaps for the nine months ended September 30, 2013 of $3.6 million, net of tax, was recorded in other comprehensive income on the consolidated statements of comprehensive income. Net payments under the swap transactions were $1.3 million in the first nine months of 2013, and have been classified as cash flows from operating activities in the consolidated statements of cash flows. | ||||||||
Customer Derivatives | ||||||||
The Company has a notional amount of $7.9 million in interest rate swap agreements with commercial customers and interest rate swap agreements of equal notional amounts with a dealer bank related to the Company’s commercial loan level derivative program. As the swap agreements have substantially equivalent and offsetting terms, they do not materially change the Company’s interest rate risk. | ||||||||
Forward Commitments to Sell Residential Mortgage Loans | ||||||||
The Company enters into forward commitments to sell residential mortgages in order to reduce the market risk associated with originating loans for sale in the secondary market. At September 30, 2013, the Company had $3.3 million of forward commitments to sell residential mortgages. At September 30, 2013, these forward commitments were in an unrealized loss position of $38,000 and recognized within the consolidated statements of income. At December 31, 2012, the Company had no outstanding commitments to sell mortgages. | ||||||||
As part of originating residential mortgage and commercial loans, the Company may enter into rate lock agreements with customers, and may issue commitment letters to customers, which are considered interest rate locks or forward commitments. At September 30, 2013, the Company had $2.0 million of mortgage loans with rate lock commitments. At September 30, 2013, these interest rate locks were in an unrealized gain position of $38,000 and were recognized within the consolidated statements of income as the Company intends to sell the related loans. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In January 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. This guidance is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. The clarifications provided in ASU No. 2013-01 did not have a material effect on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. This ASU improves the reporting of reclassifications out of accumulated other comprehensive income. The amendments in the ASU seek to attain that objective by requiring an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This guidance is effective for reporting periods beginning after December 15, 2012, with early adoption permitted. Other than matters of presentation, the adoption of this new guidance did not have a material effect on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. This ASU amends Topic 815 to permit the Fed Funds Effective Swap Rate to be used as a United States benchmark interest rate for hedge accounting purposes. The ASU seeks to provide another acceptable United States benchmark interest rate to provide risk managers with a more comprehensive spectrum of interest rate resets to utilize as the designated benchmark interest rate when applying the guidance of Topic 815. The amendments are effectively prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The amendments provided in ASU No. 2013-10 did not have a material effect on the Company's consolidated financial statements. |
SUBSEQUENT_BRANCH_DIVESTITURE
SUBSEQUENT BRANCH DIVESTITURE | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT BRANCH DIVESTITURE | ' |
SUBSEQUENT BRANCH DIVESTITURE | |
On October 4, 2013, Camden National Bank (the "Bank"), a subsidiary of Camden National Corporation, completed its divestiture of its Farmington, Kingfield, Phillips, Rangeley and Stratton branches. Included in the transaction are branch deposits of $85.9 million, business loans and certain consumer loans of $46.0 million and real estate and equipment of $602,000. The purchase price represents a 3.5% premium on deposits, par value on the loan portfolio and book value for the real estate. The Company will recognize approximately $3.0 million of additional pre-tax income in the fourth quarter of 2013. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Analysis of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following is an analysis of basic and diluted earnings per share (“EPS”), reflecting the application of the two-class method, as described below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income | $ | 6,366 | $ | 6,255 | $ | 18,359 | $ | 19,250 | |||||||||
Dividends and undistributed earnings allocated to participating securities (1) | (20 | ) | (18 | ) | (50 | ) | (48 | ) | |||||||||
Net income available to common shareholders | $ | 6,346 | $ | 6,237 | $ | 18,309 | $ | 19,202 | |||||||||
Weighted-average common shares outstanding for basic EPS | 7,643,720 | 7,619,411 | 7,636,352 | 7,655,619 | |||||||||||||
Dilutive effect of stock-based awards (2) | 22,585 | 20,023 | 15,518 | 14,144 | |||||||||||||
Weighted-average common and potential common shares for diluted EPS | 7,666,305 | 7,639,434 | 7,651,870 | 7,669,763 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic EPS | $ | 0.83 | $ | 0.82 | $ | 2.4 | $ | 2.51 | |||||||||
Diluted EPS | $ | 0.83 | $ | 0.82 | $ | 2.39 | $ | 2.5 | |||||||||
-1 | Represents dividends paid and undistributed earnings allocated to nonvested restricted stock awards. | ||||||||||||||||
-2 | Represents the effect of the assumed exercise of stock options, vesting of restricted shares, and vesting of restricted stock units, based on the treasury stock method. |
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities | ' | |||||||||||||||||||||||
The following tables summarize the amortized costs and estimated fair values of securities available-for-sale (“AFS”), as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 27,848 | $ | 1,352 | $ | — | $ | 29,200 | ||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | 358,436 | 6,384 | (4,612 | ) | 360,208 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | 397,064 | 1,045 | (11,763 | ) | 386,346 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 7,700 | 31 | (242 | ) | 7,489 | |||||||||||||||||||
Total securities available-for-sale | $ | 791,048 | $ | 8,812 | $ | (16,617 | ) | $ | 783,243 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 31,112 | $ | 1,928 | $ | — | $ | 33,040 | ||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | 345,528 | 12,699 | (79 | ) | 358,148 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | 375,627 | 6,181 | (120 | ) | 381,688 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 8,871 | — | (697 | ) | 8,174 | |||||||||||||||||||
Total securities available-for-sale | $ | 761,138 | $ | 20,808 | $ | (896 | ) | $ | 781,050 | |||||||||||||||
Unrealized Gross Losses and Estimated Fair Values of Investment Securities by Length of Time that Individual Securities in Each Category in Continuous Loss Position | ' | |||||||||||||||||||||||
The following table presents the estimated fair values and gross unrealized losses of investment securities that were in a continuous loss position at September 30, 2013 and December 31, 2012, by length of time that individual securities in each category have been in a continuous loss position: | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 149,819 | $ | (4,612 | ) | $ | 13 | $ | — | $ | 149,832 | $ | (4,612 | ) | ||||||||||
Collateralized mortgage obligations | 307,640 | (11,763 | ) | — | — | 307,640 | (11,763 | ) | ||||||||||||||||
Private issue collateralized mortgage obligations | 131 | (2 | ) | 5,357 | (240 | ) | 5,488 | (242 | ) | |||||||||||||||
Total | $ | 457,590 | $ | (16,377 | ) | $ | 5,370 | $ | (240 | ) | $ | 462,960 | $ | (16,617 | ) | |||||||||
December 31, 2012 | ||||||||||||||||||||||||
Mortgage-backed securities | $ | 42,782 | $ | (79 | ) | $ | — | $ | — | $ | 42,782 | $ | (79 | ) | ||||||||||
Collateralized mortgage obligations | 73,098 | (120 | ) | — | — | 73,098 | (120 | ) | ||||||||||||||||
Private issue collateralized mortgage obligations | — | — | 8,174 | (697 | ) | 8,174 | (697 | ) | ||||||||||||||||
Total | $ | 115,880 | $ | (199 | ) | $ | 8,174 | $ | (697 | ) | $ | 124,054 | $ | (896 | ) | |||||||||
Company's Sales of Securities | ' | |||||||||||||||||||||||
The following table details the Company’s sales of investment securities, the gross realized gains and losses, and impairment of securities: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
Available-for-sale | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Proceeds from sales of securities | $ | 12,738 | $ | 7,337 | $ | 17,613 | $ | 38,701 | ||||||||||||||||
Gross realized gains | 647 | 198 | 785 | 1,302 | ||||||||||||||||||||
Gross realized (losses) | — | (1 | ) | — | (204 | ) | ||||||||||||||||||
Other-than-temporary impairment of securities | — | (10 | ) | — | (39 | ) | ||||||||||||||||||
Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | ' | |||||||||||||||||||||||
Available-for-sale | Amortized | Fair | ||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
Due in one year or less | $ | 1,739 | $ | 1,765 | ||||||||||||||||||||
Due after one year through five years | 24,679 | 25,403 | ||||||||||||||||||||||
Due after five years through ten years | 150,623 | 152,200 | ||||||||||||||||||||||
Due after ten years | 614,007 | 603,875 | ||||||||||||||||||||||
$ | 791,048 | $ | 783,243 | |||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | ' | |||||||||||||||||||||||||||||||
The composition of the Company’s loan portfolio, excluding residential loans held for sale, at September 30, 2013 and December 31, 2012 was as follows: | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Residential real estate loans | $ | 564,933 | $ | 572,768 | ||||||||||||||||||||||||||||
Commercial real estate loans | 522,610 | 506,231 | ||||||||||||||||||||||||||||||
Commercial loans | 177,855 | 190,454 | ||||||||||||||||||||||||||||||
Home equity loans | 306,303 | 278,375 | ||||||||||||||||||||||||||||||
Consumer loans | 18,626 | 16,633 | ||||||||||||||||||||||||||||||
Deferred loan fees net of costs | (381 | ) | (595 | ) | ||||||||||||||||||||||||||||
Total loans | $ | 1,589,946 | $ | 1,563,866 | ||||||||||||||||||||||||||||
Summary of Activity in Allowance for Loan Losses | ' | |||||||||||||||||||||||||||||||
The following table presents activity in the ALL for the three months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,232 | $ | 3,590 | $ | 5,788 | $ | 3,428 | $ | 221 | $ | 4,062 | $ | 23,321 | ||||||||||||||||||
Loans charged off | (340 | ) | (591 | ) | (379 | ) | (86 | ) | (42 | ) | — | (1,438 | ) | |||||||||||||||||||
Recoveries | — | 14 | 77 | 8 | 12 | — | 111 | |||||||||||||||||||||||||
Provision (reduction) | 709 | 547 | 465 | 137 | 40 | (1,231 | ) | 667 | ||||||||||||||||||||||||
Ending balance | $ | 6,601 | $ | 3,560 | $ | 5,951 | $ | 3,487 | $ | 231 | $ | 2,831 | $ | 22,661 | ||||||||||||||||||
The following table presents activity in the ALL for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,996 | $ | 4,549 | $ | 5,933 | $ | 2,520 | $ | 184 | $ | 2,862 | $ | 23,044 | ||||||||||||||||||
Loans charged off | (687 | ) | (762 | ) | (823 | ) | (423 | ) | (175 | ) | — | (2,870 | ) | |||||||||||||||||||
Recoveries | 5 | 106 | 275 | 10 | 40 | — | 436 | |||||||||||||||||||||||||
Provision (reduction) | 287 | (333 | ) | 566 | 1,380 | 182 | (31 | ) | 2,051 | |||||||||||||||||||||||
Ending balance | $ | 6,601 | $ | 3,560 | $ | 5,951 | $ | 3,487 | $ | 231 | $ | 2,831 | $ | 22,661 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,655 | $ | 686 | $ | 177 | $ | 449 | $ | 81 | $ | — | $ | 3,048 | ||||||||||||||||||
Collectively evaluated for impairment | 4,946 | 2,874 | 5,774 | 3,038 | 150 | 2,831 | 19,613 | |||||||||||||||||||||||||
Total ending ALL | $ | 6,601 | $ | 3,560 | $ | 5,951 | $ | 3,487 | $ | 231 | $ | 2,831 | $ | 22,661 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,059 | $ | 11,016 | $ | 3,369 | $ | 1,521 | $ | 498 | $ | — | $ | 30,463 | ||||||||||||||||||
Collectively evaluated for impairment | 550,493 | 511,594 | 174,486 | 304,782 | 18,128 | — | 1,559,483 | |||||||||||||||||||||||||
Total ending loans balance | $ | 564,552 | $ | 522,610 | $ | 177,855 | $ | 306,303 | $ | 18,626 | $ | — | $ | 1,589,946 | ||||||||||||||||||
The following table presents activity in the ALL for the three months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,352 | $ | 4,837 | $ | 6,368 | $ | 2,319 | $ | 164 | $ | 3,222 | $ | 23,262 | ||||||||||||||||||
Loans charged off | (578 | ) | — | (730 | ) | (70 | ) | (38 | ) | — | (1,416 | ) | ||||||||||||||||||||
Recoveries | 5 | 53 | 85 | 1 | 2 | — | 146 | |||||||||||||||||||||||||
Provision (reduction) | 860 | (215 | ) | 73 | 108 | 34 | (1 | ) | 859 | |||||||||||||||||||||||
Ending balance | $ | 6,639 | $ | 4,675 | $ | 5,796 | $ | 2,358 | $ | 162 | $ | 3,221 | $ | 22,851 | ||||||||||||||||||
The following table presents activity in the ALL for the nine months ended September 30, 2012: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,398 | $ | 5,702 | $ | 4,846 | $ | 2,704 | $ | 420 | $ | 2,941 | $ | 23,011 | ||||||||||||||||||
Loans charged off | (1,024 | ) | (209 | ) | (1,146 | ) | (921 | ) | (66 | ) | — | (3,366 | ) | |||||||||||||||||||
Recoveries | 73 | 219 | 205 | 21 | 12 | — | 530 | |||||||||||||||||||||||||
Provision (reduction) | 1,192 | (1,037 | ) | 1,891 | 554 | (204 | ) | 280 | 2,676 | |||||||||||||||||||||||
Ending balance | $ | 6,639 | $ | 4,675 | $ | 5,796 | $ | 2,358 | $ | 162 | $ | 3,221 | $ | 22,851 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,071 | $ | 343 | $ | 376 | $ | 265 | $ | 39 | $ | — | $ | 3,094 | ||||||||||||||||||
Collectively evaluated for impairment | 4,568 | 4,332 | 5,420 | 2,093 | 123 | 3,221 | 19,757 | |||||||||||||||||||||||||
Total ending ALL | $ | 6,639 | $ | 4,675 | $ | 5,796 | $ | 2,358 | $ | 162 | $ | 3,221 | $ | 22,851 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,554 | $ | 7,121 | $ | 3,829 | $ | 1,668 | $ | 263 | $ | — | $ | 25,435 | ||||||||||||||||||
Collectively evaluated for impairment | 558,739 | 494,162 | 174,454 | 272,508 | 15,302 | — | 1,515,165 | |||||||||||||||||||||||||
Total ending loans balance | $ | 571,293 | $ | 501,283 | $ | 178,283 | $ | 274,176 | $ | 15,565 | $ | — | $ | 1,540,600 | ||||||||||||||||||
The following table presents the activity in the ALL for the year ended December 31, 2012: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 6,398 | $ | 5,702 | $ | 4,846 | $ | 2,704 | $ | 420 | $ | 2,941 | $ | 23,011 | ||||||||||||||||||
Loans charged off | (1,197 | ) | (593 | ) | (1,393 | ) | (1,234 | ) | (85 | ) | — | (4,502 | ) | |||||||||||||||||||
Recoveries | 73 | 222 | 406 | 23 | 20 | — | 744 | |||||||||||||||||||||||||
Provision (reduction) | 1,722 | (782 | ) | 2,074 | 1,027 | (171 | ) | (79 | ) | 3,791 | ||||||||||||||||||||||
Ending balance | $ | 6,996 | $ | 4,549 | $ | 5,933 | $ | 2,520 | $ | 184 | $ | 2,862 | $ | 23,044 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,255 | $ | 265 | $ | 286 | $ | 261 | $ | 39 | $ | — | $ | 3,106 | ||||||||||||||||||
Collectively evaluated for impairment | 4,741 | 4,284 | 5,647 | 2,259 | 145 | 2,862 | 19,938 | |||||||||||||||||||||||||
Total ending ALL | $ | 6,996 | $ | 4,549 | $ | 5,933 | $ | 2,520 | $ | 184 | $ | 2,862 | $ | 23,044 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13,805 | $ | 7,968 | $ | 3,610 | $ | 1,515 | $ | 259 | $ | — | $ | 27,157 | ||||||||||||||||||
Collectively evaluated for impairment | 558,368 | 498,263 | 186,844 | 276,860 | 16,374 | — | 1,536,709 | |||||||||||||||||||||||||
Total ending loans balance | $ | 572,173 | $ | 506,231 | $ | 190,454 | $ | 278,375 | $ | 16,633 | $ | — | $ | 1,563,866 | ||||||||||||||||||
Credit Risk Exposure Indicators by Portfolio Segment | ' | |||||||||||||||||||||||||||||||
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 545,922 | $ | 475,515 | $ | 153,688 | $ | — | $ | — | ||||||||||||||||||||||
Performing | — | — | — | 304,781 | 18,130 | |||||||||||||||||||||||||||
Special Mention (Grade 7) | 3,073 | 8,050 | 10,511 | — | — | |||||||||||||||||||||||||||
Substandard (Grade 8) | 15,557 | 39,045 | 13,656 | — | — | |||||||||||||||||||||||||||
Non-performing | — | — | — | 1,522 | 496 | |||||||||||||||||||||||||||
Total | $ | 564,552 | $ | 522,610 | $ | 177,855 | $ | 306,303 | $ | 18,626 | ||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 555,444 | $ | 440,610 | $ | 165,460 | $ | — | $ | — | ||||||||||||||||||||||
Performing | — | — | — | 276,742 | 16,376 | |||||||||||||||||||||||||||
Special Mention (Grade 7) | 1,291 | 17,069 | 7,449 | — | — | |||||||||||||||||||||||||||
Substandard (Grade 8) | 15,438 | 48,552 | 17,545 | — | — | |||||||||||||||||||||||||||
Non-performing | — | — | — | 1,633 | 257 | |||||||||||||||||||||||||||
Total | $ | 572,173 | $ | 506,231 | $ | 190,454 | $ | 278,375 | $ | 16,633 | ||||||||||||||||||||||
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing | ' | |||||||||||||||||||||||||||||||
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include troubled debt restructured loans (“TDRs”), and loans past due over 90 days and accruing as of the following dates: | ||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Greater | Total | Current | Total Loans | Loans > 90 | Non-Accrual | |||||||||||||||||||||||||
Past Due | Past Due | than | Past Due | Outstanding | Days Past | Loans | ||||||||||||||||||||||||||
90 Days | Due and | |||||||||||||||||||||||||||||||
Accruing | ||||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 774 | $ | 855 | $ | 6,876 | $ | 8,505 | $ | 556,047 | $ | 564,552 | $ | — | $ | 10,224 | ||||||||||||||||
Commercial real estate | 1,971 | 122 | 4,483 | 6,576 | 516,034 | 522,610 | — | 9,847 | ||||||||||||||||||||||||
Commercial | 443 | 230 | 2,568 | 3,241 | 174,614 | 177,855 | 24 | 2,994 | ||||||||||||||||||||||||
Home equity | 1,136 | 171 | 962 | 2,269 | 304,034 | 306,303 | — | 1,522 | ||||||||||||||||||||||||
Consumer | 52 | 19 | 472 | 543 | 18,083 | 18,626 | — | 496 | ||||||||||||||||||||||||
Total | $ | 4,376 | $ | 1,397 | $ | 15,361 | $ | 21,134 | $ | 1,568,812 | $ | 1,589,946 | $ | 24 | $ | 25,083 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 1,459 | $ | 850 | $ | 8,410 | $ | 10,719 | $ | 561,454 | $ | 572,173 | $ | 193 | $ | 10,584 | ||||||||||||||||
Commercial real estate | 896 | 2,227 | 5,380 | 8,503 | 497,728 | 506,231 | 138 | 6,719 | ||||||||||||||||||||||||
Commercial | 1,079 | 68 | 2,969 | 4,116 | 186,338 | 190,454 | 160 | 3,409 | ||||||||||||||||||||||||
Home equity | 2,230 | 355 | 1,105 | 3,690 | 274,685 | 278,375 | 118 | 1,514 | ||||||||||||||||||||||||
Consumer | 342 | 199 | 259 | 800 | 15,833 | 16,633 | 2 | 257 | ||||||||||||||||||||||||
Total | $ | 6,006 | $ | 3,699 | $ | 18,123 | $ | 27,828 | $ | 1,536,038 | $ | 1,563,866 | $ | 611 | $ | 22,483 | ||||||||||||||||
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment | ' | |||||||||||||||||||||||||||||||
The following is a summary of accruing and non-accruing TDRs by portfolio segment as of the following dates: | ||||||||||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | Current | |||||||||||||||||||||||||||||
Contracts | Outstanding | Outstanding | Balance | |||||||||||||||||||||||||||||
Recorded | Recorded | |||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
Residential real estate | 24 | $ | 3,940 | $ | 4,099 | $ | 3,900 | |||||||||||||||||||||||||
Commercial real estate | 9 | 2,844 | 2,897 | 2,574 | ||||||||||||||||||||||||||||
Commercial | 5 | 386 | 386 | 375 | ||||||||||||||||||||||||||||
Consumer | 1 | 3 | 3 | 1 | ||||||||||||||||||||||||||||
Total | 39 | $ | 7,173 | $ | 7,385 | $ | 6,850 | |||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||
Residential real estate | 20 | $ | 3,305 | $ | 3,434 | $ | 3,286 | |||||||||||||||||||||||||
Commercial real estate | 6 | 2,602 | 2,649 | 2,344 | ||||||||||||||||||||||||||||
Commercial | 3 | 303 | 303 | 236 | ||||||||||||||||||||||||||||
Consumer | 1 | 3 | 3 | 2 | ||||||||||||||||||||||||||||
Total | 30 | $ | 6,213 | $ | 6,389 | $ | 5,868 | |||||||||||||||||||||||||
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment | ' | |||||||||||||||||||||||||||||||
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of the following dates and for the periods then ended: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Balance | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 10,746 | $ | 10,746 | $ | 1,655 | $ | 10,457 | $ | 32 | $ | 10,130 | $ | 91 | ||||||||||||||||||
Commercial real estate | 8,497 | 8,497 | 686 | 6,503 | 9 | 4,976 | 18 | |||||||||||||||||||||||||
Commercial | 2,347 | 2,347 | 177 | 2,606 | 3 | 2,721 | 6 | |||||||||||||||||||||||||
Home equity | 1,263 | 1,263 | 449 | 1,245 | — | 1,307 | — | |||||||||||||||||||||||||
Consumer | 480 | 480 | 81 | 481 | — | 466 | — | |||||||||||||||||||||||||
Ending Balance | $ | 23,333 | $ | 23,333 | $ | 3,048 | $ | 21,292 | $ | 44 | $ | 19,600 | $ | 115 | ||||||||||||||||||
Without allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 3,313 | $ | 4,439 | $ | — | $ | 2,816 | $ | 9 | $ | 2,908 | $ | 22 | ||||||||||||||||||
Commercial real estate | 2,519 | 3,167 | — | 3,663 | 10 | 3,750 | 56 | |||||||||||||||||||||||||
Commercial | 1,022 | 1,213 | — | 907 | 2 | 699 | 8 | |||||||||||||||||||||||||
Home equity | 258 | 450 | — | 291 | — | 356 | — | |||||||||||||||||||||||||
Consumer | 18 | 38 | — | 7 | — | 3 | — | |||||||||||||||||||||||||
Ending Balance | $ | 7,130 | $ | 9,307 | $ | — | $ | 7,684 | $ | 21 | $ | 7,716 | $ | 86 | ||||||||||||||||||
Total impaired loans | $ | 30,463 | $ | 32,640 | $ | 3,048 | $ | 28,976 | $ | 65 | $ | 27,316 | $ | 201 | ||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||
With related allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 11,021 | $ | 11,021 | $ | 2,255 | $ | 10,585 | $ | 114 | ||||||||||||||||||||||
Commercial real estate | 4,296 | 4,296 | 265 | 5,551 | — | |||||||||||||||||||||||||||
Commercial | 2,971 | 2,971 | 286 | 3,927 | — | |||||||||||||||||||||||||||
Home equity | 1,236 | 1,236 | 261 | 1,289 | — | |||||||||||||||||||||||||||
Consumer | 257 | 257 | 39 | 239 | — | |||||||||||||||||||||||||||
Ending Balance | $ | 19,781 | $ | 19,781 | $ | 3,106 | $ | 21,591 | $ | 114 | ||||||||||||||||||||||
Without related allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 2,784 | $ | 3,841 | $ | — | $ | 2,548 | $ | 26 | ||||||||||||||||||||||
Commercial real estate | 3,672 | 4,127 | — | 2,056 | 33 | |||||||||||||||||||||||||||
Commercial | 639 | 956 | — | 389 | 13 | |||||||||||||||||||||||||||
Home equity | 279 | 550 | — | 617 | — | |||||||||||||||||||||||||||
Consumer | 2 | 2 | — | 6 | — | |||||||||||||||||||||||||||
Ending Balance | $ | 7,376 | $ | 9,476 | $ | — | $ | 5,616 | $ | 72 | ||||||||||||||||||||||
Total impaired loans | $ | 27,157 | $ | 29,257 | $ | 3,106 | $ | 27,207 | $ | 186 | ||||||||||||||||||||||
GOODWILL_CORE_DEPOSIT_AND_TRUS1
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Changes in Goodwill | ' | |||||||||||||||||||||||
The changes in goodwill, core deposit intangible and trust relationship intangible for the nine months ended September 30, 2013 are shown in the table below: | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Banking | Financial | Total | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 40,902 | $ | 6,734 | $ | 47,636 | ||||||||||||||||||
2013 activity | — | — | — | |||||||||||||||||||||
Balance at September 30, 2013 | $ | 40,902 | $ | 6,734 | $ | 47,636 | ||||||||||||||||||
Changes in Core Deposit Intangible and Trust Relationship Intangible | ' | |||||||||||||||||||||||
Core Deposit Intangible | Trust Relationship Intangible | |||||||||||||||||||||||
Total | Accumulated Amortization | Net | Total | Accumulated Amortization | Net | |||||||||||||||||||
Balance at December 31, 2012 | $ | 17,300 | $ | (12,014 | ) | $ | 5,286 | $ | 753 | $ | (376 | ) | $ | 377 | ||||||||||
2013 amortization | — | (806 | ) | (806 | ) | — | (57 | ) | (57 | ) | ||||||||||||||
Balance at September 30, 2013 | $ | 17,300 | $ | (12,820 | ) | $ | 4,480 | $ | 753 | $ | (433 | ) | $ | 320 | ||||||||||
Expected Amortization Schedule for Intangible Assets | ' | |||||||||||||||||||||||
The following table reflects the expected amortization of intangible assets over the remaining estimated useful life (assuming no acquisitions, divestitures, or impairment) as of September 30, 2013: | ||||||||||||||||||||||||
Core Deposit | Trust | |||||||||||||||||||||||
Intangible | Relationship | |||||||||||||||||||||||
Intangible | ||||||||||||||||||||||||
2013 | $ | 268 | $ | 19 | ||||||||||||||||||||
2014 | 1,073 | 75 | ||||||||||||||||||||||
2015 | 1,073 | 75 | ||||||||||||||||||||||
2016 | 1,073 | 75 | ||||||||||||||||||||||
2017 | 993 | 76 | ||||||||||||||||||||||
Total unamortized intangible assets | $ | 4,480 | $ | 320 | ||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Components of Net Period Benefit Cost | ' | |||||||||||||||
The components of net period benefit cost for the periods ended September 30, 2013 and 2012 were as follows: | ||||||||||||||||
Supplemental Executive Retirement Plan | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net period benefit cost | ||||||||||||||||
Service cost | $ | 82 | $ | 67 | $ | 246 | $ | 201 | ||||||||
Interest cost | 94 | 102 | 282 | 306 | ||||||||||||
Recognized net actuarial loss | 56 | 29 | 168 | 87 | ||||||||||||
Recognized prior service cost | 5 | 5 | 15 | 15 | ||||||||||||
Net period benefit cost (1) | $ | 237 | $ | 203 | $ | 711 | $ | 609 | ||||||||
Other Postretirement Benefit Plan | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net period benefit cost | ||||||||||||||||
Service cost | $ | 19 | $ | 17 | $ | 57 | $ | 51 | ||||||||
Interest cost | 35 | 37 | 105 | 111 | ||||||||||||
Recognized net actuarial loss | 11 | 8 | 33 | 24 | ||||||||||||
Net period benefit cost (1) | $ | 65 | $ | 62 | $ | 195 | $ | 186 | ||||||||
(1) Presented within the consolidated statements of income in salaries and employee benefits. |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||||||||
Readily | Observable | Company | Total | |||||||||||||||||
Available | Market | Determined | ||||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | 29,200 | $ | — | $ | 29,200 | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | — | 360,208 | — | 360,208 | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | — | 386,346 | — | 386,346 | ||||||||||||||||
Private issue collateralized mortgage obligations | — | 7,489 | — | 7,489 | ||||||||||||||||
Trading account assets | 2,309 | — | — | 2,309 | ||||||||||||||||
Loans held for sale | — | 1,313 | — | 1,313 | ||||||||||||||||
Customer interest rate swap agreements | — | 192 | — | 192 | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | — | 5,560 | — | 5,560 | ||||||||||||||||
Customer interest rate swap agreements | — | 192 | — | 192 | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | 33,040 | $ | — | $ | 33,040 | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | — | 358,148 | — | 358,148 | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | — | 381,688 | — | 381,688 | ||||||||||||||||
Private issue collateralized mortgage obligations | — | 8,174 | — | 8,174 | ||||||||||||||||
Trading account assets | 2,300 | — | — | 2,300 | ||||||||||||||||
Customer interest rate swap agreements | — | 496 | — | 496 | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | — | 11,084 | — | 11,084 | ||||||||||||||||
Customer interest rate swap agreements | — | 496 | — | 496 | ||||||||||||||||
Summary of Assets Measured at Fair Value on Non Recurring Basis | ' | |||||||||||||||||||
Assets measured at fair value on a non-recurring basis as of September 30, 2013 and December 31, 2012 are included below: | ||||||||||||||||||||
Readily | Observable | Company | Total | |||||||||||||||||
Available | Market | Determined | ||||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral-dependent impaired loans (1) | $ | — | $ | — | $ | 13,006 | $ | 13,006 | ||||||||||||
Other real estate owned | — | — | 1,802 | 1,802 | ||||||||||||||||
Mortgage servicing rights | — | 1,463 | — | 1,463 | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Collateral-dependent impaired loans (1) | $ | — | $ | — | $ | 9,183 | $ | 9,183 | ||||||||||||
Other real estate owned | — | — | 1,313 | 1,313 | ||||||||||||||||
Mortgage servicing rights | — | 879 | — | 879 | ||||||||||||||||
Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis | ' | |||||||||||||||||||
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2013: | ||||||||||||||||||||
Fair Value | Valuation Methodology | Unobservable input | Discount Range | |||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Collateral-dependent impaired loans: (1) | ||||||||||||||||||||
Partially charged-off | $ | 4,246 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | ||||||||||||||
Specifically reserved | 8,760 | Market approach appraisal of collateral | Management adjustment of appraisal | — | -2 | |||||||||||||||
Other real estate owned | 1,802 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | |||||||||||||||
Estimated selling cost | 6 – 10 | % | ||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Collateral-dependent impaired loans:(1) | ||||||||||||||||||||
Partially charged-off | $ | 3,524 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | ||||||||||||||
Specifically reserved | 5,659 | Market approach appraisal of collateral | Management adjustment of appraisal | — | -2 | |||||||||||||||
Other real estate owned | 1,313 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 – 30 | % | |||||||||||||||
Estimated selling cost | 6 – 10 | % | ||||||||||||||||||
-1 | Does not include impaired loans that are measured by the present value of expected future cash flows discounted at the loan’s effective interest rate. | |||||||||||||||||||
-2 | The specific reserve for collateral-dependent impaired loans is determined by any deficit of 75% of collateral value over the recorded investment. | |||||||||||||||||||
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities | ' | |||||||||||||||||||
The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at September 30, 2013: | ||||||||||||||||||||
Carrying | Fair Value | Readily | Observable | Company | ||||||||||||||||
Amount | Available | Market | Determined | |||||||||||||||||
Market | Prices | Market | ||||||||||||||||||
Prices | (Level 2) | Prices | ||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 57,086 | $ | 57,086 | $ | 57,086 | $ | — | $ | — | ||||||||||
Securities available-for-sale | 783,243 | 783,243 | — | 783,243 | — | |||||||||||||||
FHLB and Federal Reserve Bank stock | 19,724 | 19,724 | 19,724 | — | — | |||||||||||||||
Trading account assets | 2,309 | 2,309 | 2,309 | — | — | |||||||||||||||
Loans held for sale | 1,313 | 1,313 | — | 1,313 | — | |||||||||||||||
Residential real estate loans | 557,009 | 572,253 | — | — | 572,253 | |||||||||||||||
Commercial real estate loans | 518,542 | 519,587 | — | — | 519,587 | |||||||||||||||
Commercial loans | 171,054 | 170,846 | — | — | 170,846 | |||||||||||||||
Home equity loans | 302,318 | 303,794 | — | — | 303,794 | |||||||||||||||
Consumer loans | 18,362 | 18,743 | — | — | 18,743 | |||||||||||||||
Mortgage servicing rights | 730 | 1,463 | — | 1,463 | — | |||||||||||||||
Interest receivable | 5,678 | 5,678 | — | 5,678 | — | |||||||||||||||
Investment in trust preferred securities affiliates | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 192 | 192 | — | 192 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 1,973,364 | 1,977,585 | 1,439,307 | 538,278 | — | |||||||||||||||
FHLB advances | 96,130 | 99,374 | — | 99,374 | — | |||||||||||||||
Commercial repurchase agreements | 30,154 | 32,311 | — | 32,311 | — | |||||||||||||||
Other borrowed funds | 177,172 | 177,172 | 177,172 | — | — | |||||||||||||||
Junior subordinated debentures | 43,896 | 43,896 | — | 43,896 | — | |||||||||||||||
Interest payable | 560 | 560 | 560 | — | — | |||||||||||||||
Interest rate swap agreements | 5,560 | 5,560 | — | 5,560 | — | |||||||||||||||
Customer interest rate swap agreements | 192 | 192 | — | 192 | — | |||||||||||||||
The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 2012: | ||||||||||||||||||||
Carrying | Fair Value | Readily | Observable | Company | ||||||||||||||||
Amount | Available | Market | Determined | |||||||||||||||||
Market | Prices | Market | ||||||||||||||||||
Prices | (Level 2) | Prices | ||||||||||||||||||
(Level 1) | (Level 3) | |||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and due from banks | $ | 58,290 | $ | 58,290 | $ | 58,290 | $ | — | $ | — | ||||||||||
Securities available-for-sale | 781,050 | 781,050 | — | 781,050 | — | |||||||||||||||
FHLB and Federal Reserve Bank stock | 21,034 | 21,034 | 21,034 | — | — | |||||||||||||||
Trading account assets | 2,300 | 2,300 | 2,300 | — | — | |||||||||||||||
Residential real estate loans | 564,184 | 591,139 | — | — | 591,139 | |||||||||||||||
Commercial real estate loans | 501,037 | 492,602 | — | — | 492,602 | |||||||||||||||
Commercial loans | 183,680 | 179,519 | — | — | 179,519 | |||||||||||||||
Home equity loans | 275,498 | 277,194 | — | — | 277,194 | |||||||||||||||
Consumer loans | 16,423 | 16,866 | — | — | 16,866 | |||||||||||||||
Mortgage servicing rights | 542 | 879 | — | 879 | — | |||||||||||||||
Interest receivable | 6,215 | 6,215 | — | 6,215 | — | |||||||||||||||
Investment in trust preferred securities affiliates | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 496 | 496 | — | 496 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | 1,929,469 | 1,936,446 | 1,339,290 | 597,156 | — | |||||||||||||||
FHLB advances | 56,404 | 60,813 | — | 60,813 | — | |||||||||||||||
Commercial repurchase agreements | 66,187 | 69,067 | — | 69,067 | — | |||||||||||||||
Other borrowed funds | 193,753 | 193,753 | 193,753 | — | — | |||||||||||||||
Junior subordinated debentures | 43,819 | 43,819 | — | 43,819 | — | |||||||||||||||
Interest payable | 905 | 905 | 905 | — | — | |||||||||||||||
Interest rate swap agreements | 11,084 | 11,084 | — | 11,084 | — | |||||||||||||||
Customer interest rate swap agreements | 496 | 496 | — | 496 | — | |||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Summary of Contractual and Notional Amounts of Financial Instruments | ' | |||||||
A summary of the contractual and notional amounts of the Company’s financial instruments follows: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Lending-Related Instruments: | ||||||||
Loan origination commitments and unadvanced lines of credit: | ||||||||
Home equity | $ | 320,993 | $ | 277,373 | ||||
Commercial and commercial real estate | 15,072 | 20,016 | ||||||
Residential | 12,600 | 9,497 | ||||||
Letters of credit | 2,106 | 1,836 | ||||||
Other commitments | 2,228 | 16,845 | ||||||
Derivative Financial Instruments: | ||||||||
Forward mortgage loan sale commitments | 3,259 | — | ||||||
Derivative mortgage loan commitments | 2,000 | — | ||||||
Customer loan swaps | 15,802 | 16,093 | ||||||
Interest rate swaps | 43,000 | 43,000 | ||||||
Summary of Derivative Financial Instruments | ' | |||||||
The terms of the interest rate swap agreements are as follows: | ||||||||
Notional Amount | Fixed-Rate | Maturity Date | ||||||
$ | 10,000 | 5.09% | June 30, 2021 | |||||
10,000 | 5.84% | June 30, 2029 | ||||||
10,000 | 5.71% | June 30, 2030 | ||||||
5,000 | 4.35% | March 30, 2031 | ||||||
8,000 | 4.14% | July 7, 2031 | ||||||
EARNINGS_PER_SHARE_Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Net income | $6,366 | $6,255 | $18,359 | $19,250 | ||||
Dividends and undistributed earnings allocated to participating securities | -20 | [1] | -18 | [1] | -50 | [1] | -48 | [1] |
Net income loss available to common shareholders | $6,346 | $6,237 | $18,309 | $19,202 | ||||
Weighted-average common shares outstanding for basic EPS | 7,643,720 | 7,619,411 | 7,636,352 | 7,655,619 | ||||
Dilutive effect of stock-based awards | 22,585 | [2] | 20,023 | [2] | 15,518 | [2] | 14,144 | [2] |
Weighted-average common and potential common shares for diluted EPS | 7,666,305 | 7,639,434 | 7,651,870 | 7,669,763 | ||||
Basic EPS | $0.83 | $0.82 | $2.40 | $2.51 | ||||
Diluted EPS | $0.83 | $0.82 | $2.39 | $2.50 | ||||
[1] | Represents dividends paid and undistributed earnings allocated to nonvested restricted stock awards. | |||||||
[2] | Represents the effect of the assumed exercise of stock options, vesting of restricted shares, and vesting of restricted stock units, based on the treasury stock method. |
EARNINGS_PER_SHARE_Narrative_D
EARNINGS PER SHARE (Narrative) (Details) (Stock Options) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares that were not considered in computation of potential common shares for purposes of diluted EPS | 14,250 | 18,250 | 31,000 | 49,500 |
SECURITIES_Summary_of_Amortize
SECURITIES (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | $791,048 | $761,138 |
Available-for-sale, Unrealized Gains | 8,812 | 20,808 |
Available-for-sale, Unrealized Losses | -16,617 | -896 |
Available-for-sale, Fair Value | 783,243 | 781,050 |
Obligations of states and political subdivisions | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 27,848 | 31,112 |
Available-for-sale, Unrealized Gains | 1,352 | 1,928 |
Available-for-sale, Fair Value | 29,200 | 33,040 |
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 358,436 | 345,528 |
Available-for-sale, Unrealized Gains | 6,384 | 12,699 |
Available-for-sale, Unrealized Losses | -4,612 | -79 |
Available-for-sale, Fair Value | 360,208 | 358,148 |
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 397,064 | 375,627 |
Available-for-sale, Unrealized Gains | 1,045 | 6,181 |
Available-for-sale, Unrealized Losses | -11,763 | -120 |
Available-for-sale, Fair Value | 386,346 | 381,688 |
Private issue collateralized mortgage obligations | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 7,700 | 8,871 |
Available-for-sale, Unrealized Gains | 31 | ' |
Available-for-sale, Unrealized Losses | -242 | -697 |
Available-for-sale, Fair Value | $7,489 | $8,174 |
SECURITIES_Schedule_of_Unreali
SECURITIES (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | $457,590 | $115,880 |
Unrealized Losses - Less Than 12 Months | -16,377 | -199 |
Fair Value - 12 Months of More | 5,370 | 8,174 |
Unrealized Losses - 12 Months or More | -240 | -697 |
Fair Value | 462,960 | 124,054 |
Unrealized losses | -16,617 | -896 |
Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | 149,819 | 42,782 |
Unrealized Losses - Less Than 12 Months | -4,612 | -79 |
Fair Value - 12 Months of More | 13 | ' |
Fair Value | 149,832 | 42,782 |
Unrealized losses | -4,612 | -79 |
Collateralized mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | 307,640 | 73,098 |
Unrealized Losses - Less Than 12 Months | -11,763 | -120 |
Fair Value | 307,640 | 73,098 |
Unrealized losses | -11,763 | -120 |
Private issue collateralized mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | 131 | ' |
Unrealized Losses - Less Than 12 Months | -2 | ' |
Fair Value - 12 Months of More | 5,357 | 8,174 |
Unrealized Losses - 12 Months or More | -240 | -697 |
Fair Value | 5,488 | 8,174 |
Unrealized losses | ($242) | ($697) |
SECURITIES_Schedule_of_Company
SECURITIES (Schedule of Company's Sales of Securities) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $12,738 | $7,337 | $17,613 | $38,701 |
Available-for-sale Securities, Gross Realized Gains | 647 | 198 | 785 | 1,302 |
Gross realized (losses) | ' | -1 | ' | -204 |
Other-than-temporary impairment of securities | ' | ($10) | ' | ($39) |
SECURITIES_Schedule_of_Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Available-for-sale, Amortized Cost | ' |
Due in one year or less | $1,739 |
Due after one year through five years | 24,679 |
Due after five years through ten years | 150,623 |
Due after ten years | 614,007 |
Amortized cost, total | 791,048 |
Available-for-sale, Fair Value | ' |
Due in one year or less | 1,765 |
Due after one year through five years | 25,403 |
Due after five years through ten years | 152,200 |
Due after ten years | 603,875 |
Fair value, total | $783,243 |
SECURITIES_Narrative_Detail
SECURITIES (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Unrealized gains on securities available-for-sale included in accumulated other comprehensive income, net of deferred taxes | ($5,073,000) | ' | ($5,073,000) | ' | $12,943,000 |
Unrealized gains on securities available-for-sale included in accumulated other comprehensive income, deferred taxes | 2,700,000 | ' | 2,700,000 | ' | ' |
Deferred Tax Liability, Unrealized Gains on Available-for-Sale Securities, Gross | ' | ' | ' | ' | 7,000,000 |
Investment securities with unrealized losses that are considered temporary | 462,960,000 | ' | 462,960,000 | ' | 124,054,000 |
Available-for-sale Securities | 783,243,000 | ' | 783,243,000 | ' | 781,050,000 |
Fair Value - 12 Months of More | 5,370,000 | ' | 5,370,000 | ' | 8,174,000 |
Carrying amount of investment securities sold | 12,700,000 | 7,300,000 | 17,600,000 | 38,700,000 | ' |
Gain (Loss) on Investments | 647,000 | 187,000 | 785,000 | 1,059,000 | ' |
Security pledged as collateral, amortized cost | 487,000,000 | ' | 487,000,000 | ' | 465,000,000 |
Security pledged as collateral, fair value | 484,900,000 | ' | 484,900,000 | ' | 482,400,000 |
Private issue collateralized mortgage obligations | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Investment securities with unrealized losses that are considered temporary | 5,488,000 | ' | 5,488,000 | ' | 8,174,000 |
Available-for-sale Securities | 7,489,000 | ' | 7,489,000 | ' | 8,174,000 |
Fair Value - 12 Months of More | $5,357,000 | ' | $5,357,000 | ' | $8,174,000 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Deferred loan fees net of costs | ($381) | ($595) | ' |
Loans | 1,589,946 | 1,563,866 | 1,540,600 |
Residential real estate loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 564,933 | 572,768 | ' |
Loans | 564,552 | 572,173 | 571,293 |
Commercial real estate loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 522,610 | 506,231 | ' |
Loans | 522,610 | 506,231 | 501,283 |
Commercial loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 177,855 | 190,454 | ' |
Loans | 177,855 | 190,454 | 178,283 |
Home equity loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 306,303 | 278,375 | ' |
Loans | 306,303 | 278,375 | 274,176 |
Consumer loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 18,626 | 16,633 | ' |
Loans | $18,626 | $16,633 | $15,565 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | $23,321 | $23,262 | $23,044 | $23,011 | $23,011 |
Loans charged off | -1,438 | -1,416 | -2,870 | -3,366 | -4,502 |
Recoveries | 111 | 146 | 436 | 530 | 744 |
Provision (reduction) | 667 | 859 | 2,051 | 2,676 | 3,791 |
Ending balance | 22,661 | 22,851 | 22,661 | 22,851 | 23,044 |
Ending Balance: Individually evaluated for impairment | 3,048 | 3,094 | 3,048 | 3,094 | 3,106 |
Ending Balance: Collectively evaluated for impairment | 19,613 | 19,757 | 19,613 | 19,757 | 19,938 |
Ending Balance: Individually evaluated for impairment | 30,463 | 25,435 | 30,463 | 25,435 | 27,157 |
Ending Balance: Collectively evaluated for impairment | 1,559,483 | 1,515,165 | 1,559,483 | 1,515,165 | 1,536,709 |
Loans ending balance | 1,589,946 | 1,540,600 | 1,589,946 | 1,540,600 | 1,563,866 |
Residential real estate loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 6,232 | 6,352 | 6,996 | 6,398 | 6,398 |
Loans charged off | -340 | -578 | -687 | -1,024 | -1,197 |
Recoveries | 0 | 5 | 5 | 73 | 73 |
Provision (reduction) | 709 | 860 | 287 | 1,192 | 1,722 |
Ending balance | 6,601 | 6,639 | 6,601 | 6,639 | 6,996 |
Ending Balance: Individually evaluated for impairment | 1,655 | 2,071 | 1,655 | 2,071 | 2,255 |
Ending Balance: Collectively evaluated for impairment | 4,946 | 4,568 | 4,946 | 4,568 | 4,741 |
Ending Balance: Individually evaluated for impairment | 14,059 | 12,554 | 14,059 | 12,554 | 13,805 |
Ending Balance: Collectively evaluated for impairment | 550,493 | 558,739 | 550,493 | 558,739 | 558,368 |
Loans ending balance | 564,552 | 571,293 | 564,552 | 571,293 | 572,173 |
Commercial real estate loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 3,590 | 4,837 | 4,549 | 5,702 | 5,702 |
Loans charged off | -591 | 0 | -762 | -209 | -593 |
Recoveries | 14 | 53 | 106 | 219 | 222 |
Provision (reduction) | 547 | -215 | -333 | -1,037 | -782 |
Ending balance | 3,560 | 4,675 | 3,560 | 4,675 | 4,549 |
Ending Balance: Individually evaluated for impairment | 686 | 343 | 686 | 343 | 265 |
Ending Balance: Collectively evaluated for impairment | 2,874 | 4,332 | 2,874 | 4,332 | 4,284 |
Ending Balance: Individually evaluated for impairment | 11,016 | 7,121 | 11,016 | 7,121 | 7,968 |
Ending Balance: Collectively evaluated for impairment | 511,594 | 494,162 | 511,594 | 494,162 | 498,263 |
Loans ending balance | 522,610 | 501,283 | 522,610 | 501,283 | 506,231 |
Commercial loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 5,788 | 6,368 | 5,933 | 4,846 | 4,846 |
Loans charged off | -379 | -730 | -823 | -1,146 | -1,393 |
Recoveries | 77 | 85 | 275 | 205 | 406 |
Provision (reduction) | 465 | 73 | 566 | 1,891 | 2,074 |
Ending balance | 5,951 | 5,796 | 5,951 | 5,796 | 5,933 |
Ending Balance: Individually evaluated for impairment | 177 | 376 | 177 | 376 | 286 |
Ending Balance: Collectively evaluated for impairment | 5,774 | 5,420 | 5,774 | 5,420 | 5,647 |
Ending Balance: Individually evaluated for impairment | 3,369 | 3,829 | 3,369 | 3,829 | 3,610 |
Ending Balance: Collectively evaluated for impairment | 174,486 | 174,454 | 174,486 | 174,454 | 186,844 |
Loans ending balance | 177,855 | 178,283 | 177,855 | 178,283 | 190,454 |
Home equity loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 3,428 | 2,319 | 2,520 | 2,704 | 2,704 |
Loans charged off | -86 | -70 | -423 | -921 | -1,234 |
Recoveries | 8 | 1 | 10 | 21 | 23 |
Provision (reduction) | 137 | 108 | 1,380 | 554 | 1,027 |
Ending balance | 3,487 | 2,358 | 3,487 | 2,358 | 2,520 |
Ending Balance: Individually evaluated for impairment | 449 | 265 | 449 | 265 | 261 |
Ending Balance: Collectively evaluated for impairment | 3,038 | 2,093 | 3,038 | 2,093 | 2,259 |
Ending Balance: Individually evaluated for impairment | 1,521 | 1,668 | 1,521 | 1,668 | 1,515 |
Ending Balance: Collectively evaluated for impairment | 304,782 | 272,508 | 304,782 | 272,508 | 276,860 |
Loans ending balance | 306,303 | 274,176 | 306,303 | 274,176 | 278,375 |
Consumer loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 221 | 164 | 184 | 420 | 420 |
Loans charged off | -42 | -38 | -175 | -66 | -85 |
Recoveries | 12 | 2 | 40 | 12 | 20 |
Provision (reduction) | 40 | 34 | 182 | -204 | -171 |
Ending balance | 231 | 162 | 231 | 162 | 184 |
Ending Balance: Individually evaluated for impairment | 81 | 39 | 81 | 39 | 39 |
Ending Balance: Collectively evaluated for impairment | 150 | 123 | 150 | 123 | 145 |
Ending Balance: Individually evaluated for impairment | 498 | 263 | 498 | 263 | 259 |
Ending Balance: Collectively evaluated for impairment | 18,128 | 15,302 | 18,128 | 15,302 | 16,374 |
Loans ending balance | 18,626 | 15,565 | 18,626 | 15,565 | 16,633 |
Unallocated | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 4,062 | 3,222 | 2,862 | 2,941 | 2,941 |
Provision (reduction) | -1,231 | -1 | -31 | 280 | -79 |
Ending balance | 2,831 | 3,221 | 2,831 | 3,221 | 2,862 |
Ending Balance: Collectively evaluated for impairment | 2,831 | 3,221 | 2,831 | 3,221 | 2,862 |
Loans ending balance | ' | ' | ' | ' | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Credit Risk Exposure Indicators by Portfolio Segment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | $1,589,946 | $1,563,866 | $1,540,600 |
Residential real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 564,552 | 572,173 | 571,293 |
Residential real estate loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 545,922 | 555,444 | ' |
Residential real estate loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 3,073 | 1,291 | ' |
Residential real estate loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 15,557 | 15,438 | ' |
Commercial real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 522,610 | 506,231 | 501,283 |
Commercial real estate loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 475,515 | 440,610 | ' |
Commercial real estate loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 8,050 | 17,069 | ' |
Commercial real estate loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 39,045 | 48,552 | ' |
Commercial loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 177,855 | 190,454 | 178,283 |
Commercial loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 153,688 | 165,460 | ' |
Commercial loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 10,511 | 7,449 | ' |
Commercial loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 13,656 | 17,545 | ' |
Home equity loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 306,303 | 278,375 | 274,176 |
Home equity loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 304,781 | 276,742 | ' |
Home equity loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 1,522 | 1,633 | ' |
Consumer loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 18,626 | 16,633 | 15,565 |
Consumer loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 18,130 | 16,376 | ' |
Consumer loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | $496 | $257 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Aging Analysis by Portfolio Segment) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 days Past Due | $4,376 | $6,006 | ' |
60-89 days Past Due | 1,397 | 3,699 | ' |
Greater Than 90 Days | 15,361 | 18,123 | ' |
Total Past Due | 21,134 | 27,828 | ' |
Current | 1,568,812 | 1,536,038 | ' |
Loans ending balance | 1,589,946 | 1,563,866 | 1,540,600 |
Loans > 90 Days Past Due and Accruing | 24 | 611 | ' |
Non-Accrual Loans | 25,083 | 22,483 | ' |
Residential real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 days Past Due | 774 | 1,459 | ' |
60-89 days Past Due | 855 | 850 | ' |
Greater Than 90 Days | 6,876 | 8,410 | ' |
Total Past Due | 8,505 | 10,719 | ' |
Current | 556,047 | 561,454 | ' |
Loans ending balance | 564,552 | 572,173 | 571,293 |
Loans > 90 Days Past Due and Accruing | ' | 193 | ' |
Non-Accrual Loans | 10,224 | 10,584 | ' |
Commercial real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 days Past Due | 1,971 | 896 | ' |
60-89 days Past Due | 122 | 2,227 | ' |
Greater Than 90 Days | 4,483 | 5,380 | ' |
Total Past Due | 6,576 | 8,503 | ' |
Current | 516,034 | 497,728 | ' |
Loans ending balance | 522,610 | 506,231 | 501,283 |
Loans > 90 Days Past Due and Accruing | ' | 138 | ' |
Non-Accrual Loans | 9,847 | 6,719 | ' |
Commercial loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 days Past Due | 443 | 1,079 | ' |
60-89 days Past Due | 230 | 68 | ' |
Greater Than 90 Days | 2,568 | 2,969 | ' |
Total Past Due | 3,241 | 4,116 | ' |
Current | 174,614 | 186,338 | ' |
Loans ending balance | 177,855 | 190,454 | 178,283 |
Loans > 90 Days Past Due and Accruing | 24 | 160 | ' |
Non-Accrual Loans | 2,994 | 3,409 | ' |
Home equity loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 days Past Due | 1,136 | 2,230 | ' |
60-89 days Past Due | 171 | 355 | ' |
Greater Than 90 Days | 962 | 1,105 | ' |
Total Past Due | 2,269 | 3,690 | ' |
Current | 304,034 | 274,685 | ' |
Loans ending balance | 306,303 | 278,375 | 274,176 |
Loans > 90 Days Past Due and Accruing | ' | 118 | ' |
Non-Accrual Loans | 1,522 | 1,514 | ' |
Consumer loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 days Past Due | 52 | 342 | ' |
60-89 days Past Due | 19 | 199 | ' |
Greater Than 90 Days | 472 | 259 | ' |
Total Past Due | 543 | 800 | ' |
Current | 18,083 | 15,833 | ' |
Loans ending balance | 18,626 | 16,633 | 15,565 |
Loans > 90 Days Past Due and Accruing | ' | 2 | ' |
Non-Accrual Loans | $496 | $257 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of All Troubled Debt Restructuring Loans) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
loans | loans | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 39 | 30 |
Pre-Modification Outstanding Recorded Investment | $7,173 | $6,213 |
Post-Modification Outstanding Recorded Investment | 7,385 | 6,389 |
Current Balance | 6,850 | 5,868 |
Residential real estate loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 24 | 20 |
Pre-Modification Outstanding Recorded Investment | 3,940 | 3,305 |
Post-Modification Outstanding Recorded Investment | 4,099 | 3,434 |
Current Balance | 3,900 | 3,286 |
Commercial real estate loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 9 | 6 |
Pre-Modification Outstanding Recorded Investment | 2,844 | 2,602 |
Post-Modification Outstanding Recorded Investment | 2,897 | 2,649 |
Current Balance | 2,574 | 2,344 |
Commercial loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 5 | 3 |
Pre-Modification Outstanding Recorded Investment | 386 | 303 |
Post-Modification Outstanding Recorded Investment | 386 | 303 |
Current Balance | 375 | 236 |
Consumer loans | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | 3 | 3 |
Post-Modification Outstanding Recorded Investment | 3 | 3 |
Current Balance | $1 | $2 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment - with an allowance recorded | $23,333 | $23,333 | $19,781 |
Recorded Investment - without allowance recorded | 7,130 | 7,130 | 7,376 |
Recorded Investment | 30,463 | 30,463 | 27,157 |
Unpaid Principal Balance - with an allowance recorded | 23,333 | 23,333 | 19,781 |
Unpaid Principal Balance - without allowance recorded | 9,307 | 9,307 | 9,476 |
Unpaid Principal Balance | 32,640 | 32,640 | 29,257 |
Related Allowance | 3,048 | 3,048 | 3,106 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 3,048 | 3,048 | 3,106 |
Average Recorded Investment - with an allowance recorded | 21,292 | 19,600 | 21,591 |
Average Recorded Investment - without allowance recorded | 7,684 | 7,716 | 5,616 |
Average Recorded Investment | 28,976 | 27,316 | 27,207 |
Interest Income Recognized - with an allowance recorded | 44 | 115 | 114 |
Interest Income Recognized - without allowance recorded | 21 | 86 | 72 |
Interest Income Recognized | 65 | 201 | 186 |
Residential real estate loans | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment - with an allowance recorded | 10,746 | 10,746 | 11,021 |
Recorded Investment - without allowance recorded | 3,313 | 3,313 | 2,784 |
Unpaid Principal Balance - with an allowance recorded | 10,746 | 10,746 | 11,021 |
Unpaid Principal Balance - without allowance recorded | 4,439 | 4,439 | 3,841 |
Related Allowance | 1,655 | 1,655 | 2,255 |
Average Recorded Investment - with an allowance recorded | 10,457 | 10,130 | 10,585 |
Average Recorded Investment - without allowance recorded | 2,816 | 2,908 | 2,548 |
Interest Income Recognized - with an allowance recorded | 32 | 91 | 114 |
Interest Income Recognized - without allowance recorded | 9 | 22 | 26 |
Commercial real estate loans | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment - with an allowance recorded | 8,497 | 8,497 | 4,296 |
Recorded Investment - without allowance recorded | 2,519 | 2,519 | 3,672 |
Unpaid Principal Balance - with an allowance recorded | 8,497 | 8,497 | 4,296 |
Unpaid Principal Balance - without allowance recorded | 3,167 | 3,167 | 4,127 |
Related Allowance | 686 | 686 | 265 |
Average Recorded Investment - with an allowance recorded | 6,503 | 4,976 | 5,551 |
Average Recorded Investment - without allowance recorded | 3,663 | 3,750 | 2,056 |
Interest Income Recognized - with an allowance recorded | 9 | 18 | ' |
Interest Income Recognized - without allowance recorded | 10 | 56 | 33 |
Commercial loans | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment - with an allowance recorded | 2,347 | 2,347 | 2,971 |
Recorded Investment - without allowance recorded | 1,022 | 1,022 | 639 |
Unpaid Principal Balance - with an allowance recorded | 2,347 | 2,347 | 2,971 |
Unpaid Principal Balance - without allowance recorded | 1,213 | 1,213 | 956 |
Related Allowance | 177 | 177 | 286 |
Average Recorded Investment - with an allowance recorded | 2,606 | 2,721 | 3,927 |
Average Recorded Investment - without allowance recorded | 907 | 699 | 389 |
Interest Income Recognized - with an allowance recorded | 3 | 6 | ' |
Interest Income Recognized - without allowance recorded | 2 | 8 | 13 |
Home equity loans | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment - with an allowance recorded | 1,263 | 1,263 | 1,236 |
Recorded Investment - without allowance recorded | 258 | 258 | 279 |
Unpaid Principal Balance - with an allowance recorded | 1,263 | 1,263 | 1,236 |
Unpaid Principal Balance - without allowance recorded | 450 | 450 | 550 |
Related Allowance | 449 | 449 | 261 |
Average Recorded Investment - with an allowance recorded | 1,245 | 1,307 | 1,289 |
Average Recorded Investment - without allowance recorded | 291 | 356 | 617 |
Interest Income Recognized - with an allowance recorded | ' | ' | ' |
Consumer loans | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment - with an allowance recorded | 480 | 480 | 257 |
Recorded Investment - without allowance recorded | 18 | 18 | 2 |
Unpaid Principal Balance - with an allowance recorded | 480 | 480 | 257 |
Unpaid Principal Balance - without allowance recorded | 38 | 38 | 2 |
Related Allowance | 81 | 81 | 39 |
Average Recorded Investment - with an allowance recorded | 481 | 466 | 239 |
Average Recorded Investment - without allowance recorded | $7 | $3 | $6 |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
loans | loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gain (loss) on sale of mortgage loans | $684,000 | $268,000 | ' |
Gross performing commercial loans acquired in business acquisition | ' | ' | 6,000,000 |
Fair value mark recognized on commercial loans acquired in business acquisition | ' | ' | 317,000 |
Non-residential building operator loans expressed as a percentage of the total commercial real estate loans | 29.00% | ' | ' |
Lodging loans expressed as a percentage of the total commercial real estate loans | 27.00% | ' | ' |
Number of Contracts | 39 | ' | 30 |
Current Balance | 6,850,000 | ' | 5,868,000 |
Fixed Rate Residential Mortgage | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Mortgage Loans sold on secondary market | 28,200,000 | 18,800,000 | ' |
Gain (loss) on sale of mortgage loans | 684,000 | 268,000 | ' |
Home equity loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans Receivable, Percentage Increase In Loan Balances By Sector | 10.00% | ' | ' |
Loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Allowance for credit Losses related to troubled debt restructuring | 604,000 | ' | 494,000 |
Number of Contracts | 9 | 7 | ' |
Current Balance | 1,200,000 | 1,685,000 | ' |
Loans restructured due to credit difficulties that are now performing | 5,379,000 | ' | 4,700,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | 0 | ' |
Financing Receivables Impaired Troubled Debt Restructuring Non-Performing | $550,000 | ' | ' |
GOODWILL_CORE_DEPOSIT_AND_TRUS2
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES (Schedule of Changes in Goodwill) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill [Roll Forward] | ' | ' |
Beginning balance | $47,636 | $47,636 |
Ending balance | 47,636 | 47,636 |
Banking | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | 40,902 | 40,902 |
Ending balance | 40,902 | 40,902 |
Financial Services | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Beginning balance | 6,734 | 6,734 |
Ending balance | $6,734 | $6,734 |
GOODWILL_CORE_DEPOSIT_AND_TRUS3
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES (Schedule of Changes in Core Deposit Intangible and Trust Relationship Intangibles) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Amortization | ' | ' | ' | ' |
2013 amortization | ($289) | ($144) | ($863) | ($433) |
Net | ' | ' | ' | ' |
2013 amortization | -289 | -144 | -863 | -433 |
Core Deposit Intangible | ' | ' | ' | ' |
Total | ' | ' | ' | ' |
Beginning Balance | ' | ' | 17,300 | ' |
Ending Balance | 17,300 | ' | 17,300 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | -12,014 | ' |
2013 amortization | ' | ' | -806 | ' |
Ending Balance | -12,820 | ' | -12,820 | ' |
Net | ' | ' | ' | ' |
Beginning Balance | ' | ' | 5,286 | ' |
2013 amortization | ' | ' | -806 | ' |
Ending Balance | 4,480 | ' | 4,480 | ' |
Trust Relationship Intangible | ' | ' | ' | ' |
Total | ' | ' | ' | ' |
Beginning Balance | ' | ' | 753 | ' |
Ending Balance | 753 | ' | 753 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | -376 | ' |
2013 amortization | ' | ' | -57 | ' |
Ending Balance | -433 | ' | -433 | ' |
Net | ' | ' | ' | ' |
Beginning Balance | ' | ' | 377 | ' |
2013 amortization | ' | ' | -57 | ' |
Ending Balance | $320 | ' | $320 | ' |
GOODWILL_CORE_DEPOSIT_AND_TRUS4
GOODWILL, CORE DEPOSIT AND TRUST RELATIONSHIP INTANGIBLES (Schedule of Expected Amortization of Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Core Deposit Intangible | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2013 | $268 | ' |
2014 | 1,073 | ' |
2015 | 1,073 | ' |
2016 | 1,073 | ' |
2017 | 993 | ' |
Total unamortized intangible assets | 4,480 | 5,286 |
Trust Relationship Intangible | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2013 | 19 | ' |
2014 | 75 | ' |
2015 | 75 | ' |
2016 | 75 | ' |
2017 | 76 | ' |
Total unamortized intangible assets | $320 | $377 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Executive Retirement Plan | ' | ' | ' | ' |
Net period benefit cost | ' | ' | ' | ' |
Service cost | $82 | $67 | $246 | $201 |
Interest cost | 94 | 102 | 282 | 306 |
Recognized net actuarial loss | 56 | 29 | 168 | 87 |
Recognized prior service cost | 5 | 5 | 15 | 15 |
Net period benefit cost (1) | 237 | 203 | 711 | 609 |
Other Postretirement Benefit Plan | ' | ' | ' | ' |
Net period benefit cost | ' | ' | ' | ' |
Service cost | 19 | 17 | 57 | 51 |
Interest cost | 35 | 37 | 105 | 111 |
Recognized net actuarial loss | 11 | 8 | 33 | 24 |
Net period benefit cost (1) | $65 | $62 | $195 | $186 |
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Long Term Performance Share Plan 2010-2012 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based compensation, number of shares vested | 6,797 | ' |
Stock based compensation, shares granted | 4,352 | ' |
Management Stock Purchase Plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based compensation, shares granted | 7,801 | ' |
Defined Contribution Retirement Plan | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based compensation, shares granted | 2,304 | ' |
2013-2015 LTIP | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Performance period over which net income growth is measured | ' | '3 years |
Restricted Stock | Equity and Incentive Plan 2012 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock based compensation, option granted | 6,325 | ' |
Stock based compensation, option granted, grant date fair value | $33.72 | ' |
Stock based compensation, vesting period | ' | '3 years |
FAIR_VALUE_MEASUREMENT_Summary
FAIR VALUE MEASUREMENT (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ' | ' |
Securities available-for-sale | $783,243 | $781,050 |
Trading account assets | 2,309 | 2,300 |
Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 29,200 | 33,040 |
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 360,208 | 358,148 |
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 386,346 | 381,688 |
Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 7,489 | 8,174 |
Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | 2,309 | 2,300 |
Loans held for sale | 1,313 | ' |
Customer interest rate swap agreements | 192 | 496 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 5,560 | 11,084 |
Customer interest rate swap agreements | 192 | 496 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 29,200 | 33,040 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 360,208 | 358,148 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 386,346 | 381,688 |
Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 7,489 | 8,174 |
Readily Available Market Prices (Level 1) | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | 2,309 | 2,300 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | 2,309 | 2,300 |
Observable Market Data (Level 2) | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 783,243 | 781,050 |
Loans held for sale | 1,313 | ' |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 5,560 | 11,084 |
Customer interest rate swap agreements | 192 | 496 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Loans held for sale | 1,313 | ' |
Customer interest rate swap agreements | 192 | 496 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 5,560 | 11,084 |
Customer interest rate swap agreements | 192 | 496 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 29,200 | 33,040 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 360,208 | 358,148 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | 386,346 | 381,688 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Securities available-for-sale | $7,489 | $8,174 |
FAIR_VALUE_MEASUREMENT_Summary1
FAIR VALUE MEASUREMENT (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Observable Market Data (Level 2) | ' | ' |
Assets: | ' | ' |
Mortgage servicing rights | $1,463 | $879 |
Fair Value, Measurements, Nonrecurring | ' | ' |
Assets: | ' | ' |
Collateral-dependent impaired loans | 13,006 | 9,183 |
Other real estate owned | 1,802 | 1,313 |
Mortgage servicing rights | 1,463 | 879 |
Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | ' | ' |
Assets: | ' | ' |
Mortgage servicing rights | 1,463 | 879 |
Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | ' | ' |
Assets: | ' | ' |
Collateral-dependent impaired loans | 13,006 | 9,183 |
Other real estate owned | $1,802 | $1,313 |
FAIR_VALUE_MEASUREMENT_Schedul
FAIR VALUE MEASUREMENT (Schedule of Valuation Methodology and Unobservable Inputs) (Details) (Company Determined Fair Value (Level 3), USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Market Approach Valuation Technique | Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Estimated selling cost | 6.00% | 6.00% | ||
Market Approach Valuation Technique | Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Estimated selling cost | 10.00% | 10.00% | ||
Impaired Loans Partially Charged Off | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 4,246 | [1] | 3,524 | [1] |
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 10.00% | 10.00% | ||
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 30.00% | 30.00% | ||
Impaired Loans Specifically Reserved | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 8,760 | [1] | 5,659 | [1] |
Management adjustment of appraisal | ' | [2] | ' | [2] |
Other real estate owned | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 1,802 | [1] | 1,313 | [1] |
Other real estate owned | Market Approach Valuation Technique | Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 10.00% | 10.00% | ||
Other real estate owned | Market Approach Valuation Technique | Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 30.00% | 30.00% | ||
[1] | Does not include impaired loans that are measured by the present value of expected future cash flows discounted at the loan’s effective interest rate. | |||
[2] | The specific reserve for collateral-dependent impaired loans is determined by any deficit of 75% of collateral value over the recorded investment. |
FAIR_VALUE_MEASUREMENT_Schedul1
FAIR VALUE MEASUREMENT (Schedule of Valuation Methodology and Unobservable Inputs for Level Three Assets) (Parenthetical) (Details) | Dec. 31, 2012 | Sep. 30, 2013 |
Company Determined Fair Value (Level 3) | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Percentage of collateral value | 75.00% | 75.00% |
FAIR_VALUE_MEASUREMENT_Schedul2
FAIR VALUE MEASUREMENT (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Available-for-sale Securities | $783,243 | $781,050 |
Trading account assets | 2,309 | 2,300 |
Readily Available Market Prices (Level 1) | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 57,086 | 58,290 |
FHLB and Federal Reserve Bank stock | 19,724 | 21,034 |
Trading account assets | 2,309 | 2,300 |
Financial liabilities: | ' | ' |
Deposits | 1,439,307 | 1,339,290 |
Other borrowed funds | 177,172 | 193,753 |
Interest payable | 560 | 905 |
Observable Market Data (Level 2) | ' | ' |
Financial assets: | ' | ' |
Available-for-sale Securities | 783,243 | 781,050 |
Loans held for sale | 1,313 | ' |
Mortgage servicing rights | 1,463 | 879 |
Interest receivable | 5,678 | 6,215 |
Customer interest rate swap agreements | 192 | 496 |
Financial liabilities: | ' | ' |
Deposits | 538,278 | 597,156 |
FHLB advances | 99,374 | 60,813 |
Commercial repurchase agreements | 32,311 | 69,067 |
Junior subordinated debentures | 43,896 | 43,819 |
Interest rate swap agreements | 5,560 | 11,084 |
Customer interest rate swap agreements | 192 | 496 |
Company Determined Fair Value (Level 3) | ' | ' |
Financial assets: | ' | ' |
Investment in trust preferred securities affiliates | 1,331 | 1,331 |
Company Determined Fair Value (Level 3) | Residential real estate loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 572,253 | 591,139 |
Company Determined Fair Value (Level 3) | Commercial real estate loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 519,587 | 492,602 |
Company Determined Fair Value (Level 3) | Commercial loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 170,846 | 179,519 |
Company Determined Fair Value (Level 3) | Home equity loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 303,794 | 277,194 |
Company Determined Fair Value (Level 3) | Consumer loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 18,743 | 16,866 |
Carrying Amount | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 57,086 | 58,290 |
Available-for-sale Securities | 783,243 | 781,050 |
FHLB and Federal Reserve Bank stock | 19,724 | 21,034 |
Trading account assets | 2,309 | 2,300 |
Loans held for sale | 1,313 | ' |
Mortgage servicing rights | 730 | 542 |
Interest receivable | 5,678 | 6,215 |
Investment in trust preferred securities affiliates | 1,331 | 1,331 |
Customer interest rate swap agreements | 192 | 496 |
Financial liabilities: | ' | ' |
Deposits | 1,973,364 | 1,929,469 |
FHLB advances | 96,130 | 56,404 |
Commercial repurchase agreements | 30,154 | 66,187 |
Other borrowed funds | 177,172 | 193,753 |
Junior subordinated debentures | 43,896 | 43,819 |
Interest payable | 560 | 905 |
Interest rate swap agreements | 5,560 | 11,084 |
Customer interest rate swap agreements | 192 | 496 |
Carrying Amount | Residential real estate loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 557,009 | 564,184 |
Carrying Amount | Commercial real estate loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 518,542 | 501,037 |
Carrying Amount | Commercial loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 171,054 | 183,680 |
Carrying Amount | Home equity loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 302,318 | 275,498 |
Carrying Amount | Consumer loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 18,362 | 16,423 |
Fair Value | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks | 57,086 | 58,290 |
Available-for-sale Securities | 783,243 | 781,050 |
FHLB and Federal Reserve Bank stock | 19,724 | 21,034 |
Trading account assets | 2,309 | 2,300 |
Loans held for sale | 1,313 | ' |
Mortgage servicing rights | 1,463 | 879 |
Interest receivable | 5,678 | 6,215 |
Investment in trust preferred securities affiliates | 1,331 | 1,331 |
Customer interest rate swap agreements | 192 | 496 |
Financial liabilities: | ' | ' |
Deposits | 1,977,585 | 1,936,446 |
FHLB advances | 99,374 | 60,813 |
Commercial repurchase agreements | 32,311 | 69,067 |
Other borrowed funds | 177,172 | 193,753 |
Junior subordinated debentures | 43,896 | 43,819 |
Interest payable | 560 | 905 |
Interest rate swap agreements | 5,560 | 11,084 |
Customer interest rate swap agreements | 192 | 496 |
Fair Value | Residential real estate loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 572,253 | 591,139 |
Fair Value | Commercial real estate loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 519,587 | 492,602 |
Fair Value | Commercial loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 170,846 | 179,519 |
Fair Value | Home equity loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | 303,794 | 277,194 |
Fair Value | Consumer loans | ' | ' |
Financial assets: | ' | ' |
Loans receivable, net of allowance | $18,743 | $16,866 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Forward mortgage loan sale commitments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | $3,259 | ' |
Derivative mortgage loan commitments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 2,000 | ' |
Customer loan swaps | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 15,802 | 16,093 |
Interest rate swaps | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 43,000 | 43,000 |
Home Equity | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Contractual amounts of financial instrument | 320,993 | 277,373 |
Commercial and commercial real estate | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Contractual amounts of financial instrument | 15,072 | 20,016 |
Residential | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Contractual amounts of financial instrument | 12,600 | 9,497 |
Letters of Credit | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Contractual amounts of financial instrument | 2,106 | 1,836 |
Other Commitments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Contractual amounts of financial instrument | $2,228 | $16,845 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Schedule of Swapped Variable Cost for Fixed Cost and Terms of Interest Rate Swap Agreements) (Details) (Interest rate swaps, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Contract, One | Contract, Two | Contract, Three | Contract, Four | Contract, Five | ||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | $43,000 | $43,000 | $10,000 | $10,000 | $10,000 | $5,000 | $8,000 |
Fixed Cost | ' | ' | 5.09% | 5.84% | 5.71% | 4.35% | 4.14% |
Maturity Date | ' | ' | 30-Jun-21 | 30-Jun-29 | 30-Jun-30 | 30-Mar-31 | 7-Jul-31 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Other Liabilities | Interest rate swaps | Interest rate swaps | Interest rate swaps | Forward mortgage loan sale commitments | Derivative mortgage loan commitments | ||
Commercial Loan | |||||||
Legal Proceedings [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Notional amount of derivative | ' | ' | $43,000,000 | $43,000,000 | $7,900,000 | $3,259,000 | $2,000,000 |
Cash held as collateral | 6,000,000 | ' | ' | ' | ' | ' | ' |
Fair value derivative liability | ' | ' | 5,600,000 | ' | ' | 38,000 | ' |
Increase in fair value of swap agreement classified as other liabilities | ' | 3,600,000 | ' | ' | ' | ' | ' |
Net payment on derivatives | ' | ' | 1,300,000 | ' | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | ' | ' | ' | ' | ' | ' | $38,000 |
SUBSEQUENT_BRANCH_DIVESTITURE_
SUBSEQUENT BRANCH DIVESTITURE (Details) (Subsequent Event [Member], Branches To Be Disposed Of [Member], USD $) | 0 Months Ended |
Oct. 04, 2013 | |
Subsequent Event [Member] | Branches To Be Disposed Of [Member] | ' |
Business Acquisition [Line Items] | ' |
Disposal Group, Including Discontinued Operation, Other Liabilities | $85,900,000 |
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 46,000,000 |
Disposal Group, Including Discontinued Operation, Property, Plant, and Equipment, Net | 602,000 |
Premium on deposits sold | 3.50% |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $3,000,000 |