Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
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 | ' | 7,421,472 |
CONSOLIDATED_STATEMENTS_OF_CON
CONSOLIDATED STATEMENTS OF CONDITION (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $59,450 | $51,355 |
Securities: | ' | ' |
Available-for-sale securities, at fair value | 771,806 | 808,477 |
Held-to-maturity securities, at amortized cost | 11,490 | 0 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 20,379 | 19,724 |
Total securities | 803,675 | 828,201 |
Trading account assets | 2,418 | 2,488 |
Loans | 1,726,227 | 1,580,402 |
Less: allowance for loan losses | -21,585 | -21,590 |
Net loans | 1,704,642 | 1,558,812 |
Bank-owned life insurance | 57,338 | 46,363 |
Goodwill and other intangible assets | 48,458 | 49,319 |
Premises and equipment, net | 24,370 | 25,727 |
Deferred tax assets | 14,987 | 16,047 |
Interest receivable | 6,162 | 5,808 |
Other real estate owned | 1,566 | 2,195 |
Other assets | 18,923 | 17,514 |
Total assets | 2,741,989 | 2,603,829 |
Deposits: | ' | ' |
Demand | 281,811 | 241,866 |
Interest checking | 484,259 | 453,909 |
Savings and money market | 661,803 | 675,679 |
Certificates of deposit | 321,704 | 343,034 |
Brokered deposits | 178,966 | 99,336 |
Total deposits | 1,928,543 | 1,813,824 |
Federal Home Loan Bank advances | 56,058 | 56,112 |
Other borrowed funds | 441,171 | 430,058 |
Junior subordinated debentures | 43,998 | 43,922 |
Accrued interest and other liabilities | 32,307 | 28,817 |
Total liabilities | 2,502,077 | 2,372,733 |
Commitments and contingencies (Notes 6, 7, and 9) | ' | ' |
Shareholders’ Equity | ' | ' |
Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 7,421,595 and 7,579,913 shares as of September 30, 2014 and December 31, 2013, respectively | 41,238 | 47,783 |
Retained earnings | 208,125 | 195,660 |
Accumulated other comprehensive loss: | ' | ' |
Net unrealized losses on available-for-sale securities, net of tax | -3,151 | -7,964 |
Net unrealized losses on derivative instruments, net of tax | -4,530 | -2,542 |
Net unrecognized losses on postretirement plans, net of tax | -1,770 | -1,841 |
Total accumulated other comprehensive loss | -9,451 | -12,347 |
Total shareholders’ equity | 239,912 | 231,096 |
Total liabilities and shareholders’ equity | $2,741,989 | $2,603,829 |
CONSOLIDATED_STATEMENTS_OF_CON1
CONSOLIDATED STATEMENTS OF CONDITION (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Common stock, no par value | $0 | $0 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 7,421,595 | 7,579,913 |
Common stock, outstanding | 7,421,595 | 7,579,913 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest Income | ' | ' | ' | ' |
Interest and fees on loans | $18,112 | $17,470 | $52,649 | $53,324 |
Interest on U.S. government and sponsored enterprise obligations | 3,896 | 4,091 | 12,250 | 12,441 |
Interest on state and political subdivision obligations | 319 | 292 | 927 | 889 |
Interest on federal funds sold and other investments | 95 | 38 | 278 | 144 |
Total interest income | 22,422 | 21,891 | 66,104 | 66,798 |
Interest Expense | ' | ' | ' | ' |
Interest on deposits | 1,562 | 1,780 | 4,678 | 5,427 |
Interest on borrowings | 848 | 767 | 2,500 | 2,352 |
Interest on junior subordinated debentures | 638 | 637 | 1,894 | 1,894 |
Total interest expense | 3,048 | 3,184 | 9,072 | 9,673 |
Net interest income | 19,374 | 18,707 | 57,032 | 57,125 |
Provision for credit losses | 539 | 665 | 1,675 | 2,034 |
Net interest income after provision for credit losses | 18,835 | 18,042 | 55,357 | 55,091 |
Non-Interest Income | ' | ' | ' | ' |
Service charges on deposit accounts | 1,600 | 1,750 | 4,689 | 5,189 |
Other service charges and fees | 1,646 | 1,568 | 4,584 | 4,510 |
Income from fiduciary services | 1,212 | 1,149 | 3,745 | 3,567 |
Brokerage and insurance commissions | 441 | 354 | 1,378 | 1,175 |
Bank-owned life insurance | 377 | 334 | 975 | 986 |
Net gain on sale of securities | 0 | 647 | 451 | 785 |
Mortgage banking income, net | 55 | 93 | 197 | 1,251 |
Other income | 618 | 580 | 2,119 | 1,724 |
Total non-interest income | 5,949 | 6,475 | 18,138 | 19,187 |
Non-Interest Expense | ' | ' | ' | ' |
Salaries and employee benefits | 8,078 | 8,115 | 24,359 | 24,437 |
Furniture, equipment and data processing | 1,704 | 1,668 | 5,236 | 5,203 |
Net occupancy costs | 1,175 | 1,242 | 3,825 | 4,201 |
Consulting and professional fees | 468 | 504 | 1,768 | 1,636 |
Other real estate owned and collection costs | 637 | 489 | 1,665 | 1,355 |
Regulatory assessments | 511 | 496 | 1,477 | 1,495 |
Amortization of intangible assets | 287 | 289 | 861 | 863 |
Branch Acquisition and Divestiture costs | 0 | 47 | 0 | 279 |
Other expenses | 2,319 | 2,349 | 6,905 | 7,878 |
Total non-interest expense | 15,179 | 15,199 | 46,096 | 47,347 |
Income before income taxes | 9,605 | 9,318 | 27,399 | 26,931 |
Income Taxes | 3,154 | 2,952 | 8,917 | 8,572 |
Net Income | $6,451 | $6,366 | $18,482 | $18,359 |
Per Share Data | ' | ' | ' | ' |
Basic earnings per share | $0.87 | $0.83 | $2.47 | $2.40 |
Diluted earnings per share | $0.86 | $0.83 | $2.46 | $2.39 |
Weighted average number of common shares outstanding | 7,421,592 | 7,643,720 | 7,459,972 | 7,636,352 |
Diluted weighted average number of common shares outstanding | 7,439,948 | 7,666,305 | 7,479,327 | 7,651,870 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Net income | $6,451 | $6,366 | $18,482 | $18,359 | ||||
Available-for-sale securities: | ' | ' | ' | ' | ||||
Net unrealized gains (losses) on available-for-sale securities arising during the period, net of tax of $1,189, $1,111, ($2,749) and $9,426, respectively | -2,208 | -2,063 | 5,106 | -17,506 | ||||
Reclassification of gains included in net income, net of tax of $0, $227, $158 and $275, respectively | 0 | [1] | -420 | [1] | -293 | [1] | -510 | [1] |
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | -2,208 | -2,483 | 4,813 | -18,016 | ||||
Net change in unrealized (losses) gains on cash flow hedging derivatives, net of tax of $50, ($239), $1,070 and ($1,933), respectively | -93 | 445 | -1,988 | 3,591 | ||||
Reclassification of amortization of net unrecognized actuarial loss and prior service credit, net of tax of ($13), ($25), ($40) and ($75), respectively | 24 | [2] | 47 | [2] | 71 | [2] | 141 | [2] |
Other comprehensive income (loss) | -2,277 | -1,991 | 2,896 | -14,284 | ||||
Comprehensive income | $4,174 | $4,375 | $21,378 | $4,075 | ||||
[1] | Reclassified into the consolidated statements of income in net gain on sale 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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Unrealized holding losses on securities available-for-sale arising during period, tax effects | $1,189 | $1,111 | ($2,749) | $9,426 |
Reclassification adjustment for gains included in net income, tax effect | 0 | 227 | 158 | 275 |
Unrealized gain on cash flow hedging derivatives, tax effect | 50 | -239 | 1,070 | -1,933 |
Net actuarial gain arising during period, tax effect | ($13) | ($25) | ($40) | ($75) |
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, 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 loss, net of tax | -14,284 | ' | ' | -14,284 |
Stock-based compensation expense | 340 | 340 | ' | ' |
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | ' | 23,914 | ' | ' |
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 258 | 258 | ' | ' |
Cash dividends declared ($0.81 and $0.81 per share) | -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 | ' | ' |
Beginning Balance at Dec. 31, 2013 | 231,096 | 47,783 | 195,660 | -12,347 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 7,579,913 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Net income | 18,482 | ' | 18,482 | ' |
Other comprehensive loss, net of tax | 2,896 | ' | ' | 2,896 |
Stock-based compensation expense | 453 | 453 | ' | ' |
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | ' | 23,037 | ' | ' |
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 157 | 157 | ' | ' |
Common stock repurchased (in shares) | ' | -181,355 | ' | ' |
Common stock repurchased | -7,155 | -7,155 | ' | ' |
Cash dividends declared ($0.81 and $0.81 per share) | -6,017 | ' | -6,017 | ' |
Ending Balance at Sep. 30, 2014 | $239,912 | $41,238 | $208,125 | ($9,451) |
Ending Balance (in shares) at Sep. 30, 2014 | ' | 7,421,595 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash dividends declared, per share | $0.81 | $0.81 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Activities | ' | ' |
Net income | $18,482 | $18,359 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for credit losses | 1,675 | 2,034 |
Depreciation and amortization expense | 2,199 | 2,300 |
Investment securities amortization and accretion, net | 1,301 | 1,745 |
Stock-based compensation expense | 453 | 340 |
Amortization of intangible assets | 861 | 863 |
Net gain on sale of investment securities | -451 | -785 |
Net increase in other real estate owned valuation allowance and loss on disposition | 222 | 97 |
Originations of mortgage loans held for sale | -399 | -29,515 |
Proceeds from the sale of mortgage loans | 416 | 28,886 |
Gain on sale of mortgage loans | -17 | -684 |
Decrease (increase) in trading assets | 70 | -9 |
Increase in other assets | -3,508 | -87 |
Increase (decrease) in other liabilities | 806 | -2,539 |
Net cash provided by operating activities | 22,110 | 21,005 |
Investing Activities | ' | ' |
Proceeds from sales and maturities of available-for-sale securities | 105,818 | 121,793 |
Purchase of available-for-sale securities | -62,494 | -138,300 |
Purchase of held-to-maturity securities | -11,589 | 0 |
Net increase in loans | -148,967 | -29,168 |
Purchase of bank-owned life insurance | -10,000 | 0 |
Purchase of Federal Home Loan Bank stock | -706 | 0 |
Proceeds from sale of Federal Home Loan Bank and Federal Reserve Bank stock | 51 | 1,310 |
Proceeds from the sale of other real estate owned | 1,591 | 530 |
Recoveries of previously charged-off loans | 538 | 436 |
Cash settlement in Branch Acquisition | 0 | -3,278 |
Purchase of premises and equipment | -831 | -1,203 |
Net cash used by investing activities | -126,589 | -47,880 |
Financing Activities | ' | ' |
Net increase in deposits | 114,850 | 44,210 |
Repayments on Federal Home Loan Bank long-term advances | -54 | -271 |
Net increase (decrease) in other borrowed funds | 11,171 | -12,479 |
Common stock repurchased | -7,475 | 0 |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | 157 | 258 |
Cash dividends paid on common stock | -6,075 | -6,047 |
Net cash provided by financing activities | 112,574 | 25,671 |
Net increase (decrease) in cash and cash equivalents | 8,095 | -1,204 |
Cash and cash equivalents at beginning of year | 51,355 | 58,290 |
Cash and cash equivalents at end of period | 59,450 | 57,086 |
Supplemental information | ' | ' |
Interest paid | 9,129 | 9,952 |
Income taxes paid | 10,147 | 8,750 |
Transfer from loans to other real estate owned | 1,184 | 1,116 |
Securities purchased but unsettled | $0 | $14,363 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
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 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 as of September 30, 2014 and December 31, 2013, the consolidated statements of income for the three and nine months ended September 30, 2014 and 2013, the consolidated statements of comprehensive income for the three and nine months ended September 30, 2014 and 2013, the consolidated statements of changes in shareholders' equity for the nine months ended September 30, 2014 and 2013, and the consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013. 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 ended September 30, 2014 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 year ended December 31, 2013 Annual Report on Form 10-K. | |||||
The acronyms and abbreviations identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q. | |||||
Acadia Trust: | Acadia Trust, N.A., a wholly-owned subsidiary of Camden National Corporation | DCRP: | Defined Contribution Retirement Plan | ||
Act: | Medicare Prescription Drug, Improvement and Modernization Act | EPS: | Earnings per share | ||
AFS: | Available-for-sale | FASB: | Financial Accounting Standards Board | ||
ALCO: | Asset/Liability Committee | FDIC: | Federal Deposit Insurance Corporation | ||
ALL: | Allowance for loan losses | FHLB: | Federal Home Loan Bank | ||
AOCI: | Accumulated other comprehensive income (loss) | FHLBB: | Federal Home Loan Bank of Boston | ||
ASC: | Accounting Standards Codification | FRB: | Federal Reserve Bank | ||
ASU: | Accounting Standards Update | Freddie Mac: | Federal Home Loan Mortgage Corporation | ||
Bank: | Camden National Bank, a wholly-owned subsidiary of Camden National Corporation | GAAP: | Generally accepted accounting principles in the United States | ||
BOLI: | Bank-owned life insurance | HTM: | Held-to-maturity | ||
Board ALCO: | Board of Directors' Asset/Liability Committee | IRS: | Internal Revenue Service | ||
bp or bps: | Basis point(s) | LIBOR: | London Interbank Offered Rate | ||
Branch Acquisition: | The acquisition of 14 branches from Bank of America, N.A. in 2012, after divesting of one branch as required by the Department of Justice | LTIP: | Long-Term Performance Share Plan | ||
Branch Divestiture: | The divestiture of five Franklin County branches in 2013 | MaineHousing: | Maine State Housing Authority | ||
BSA: | Bank Secrecy Act | Management ALCO: | Management Asset/Liability Committee | ||
CCTA: | Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation | MBS: | Mortgage-backed security | ||
CSV: | Cash surrender value | MSPP: | Management Stock Purchase Plan | ||
CMO: | Collateralized mortgage obligation | MSRs: | Mortgage servicing rights | ||
Company: | Camden National Corporation | NIM: | Net interest margin on a fully-taxable basis | ||
N/M: | Not meaningful | TDR: | Troubled-debt restructured loan | ||
Non-Agency: | Non-agency private issue collateralized mortgage obligation | UBCT: | Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation | ||
OCC: | Office of the Comptroller of the Currency | U.S.: | United States of America | ||
OCI: | Other comprehensive income (loss) | 2003 Plan: | 2003 Stock Option and Incentive Plan | ||
OFAC: | Office of Foreign Assets Control | 2012 Plan: | 2012 Equity and Incentive Plan | ||
OREO: | Other real estate owned | 2012 Repurchase Program: | 2012 Common Stock Repurchase Program, approved by the Company's Board of Directors | ||
OTTI: | Other-than-temporary impairment | 2013 Repurchase Program: | 2013 Common Stock Repurchase Program, approved by the Company's Board of Directors | ||
SERP: | Supplemental executive retirement plans |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
EPS | |||||||||||||||||
The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income | $ | 6,451 | $ | 6,366 | $ | 18,482 | $ | 18,359 | |||||||||
Dividends and undistributed earnings allocated to participating securities(1) | (20 | ) | (20 | ) | (57 | ) | (50 | ) | |||||||||
Net income available to common shareholders | $ | 6,431 | $ | 6,346 | $ | 18,425 | $ | 18,309 | |||||||||
Weighted-average common shares outstanding for basic EPS | 7,421,592 | 7,643,720 | 7,459,972 | 7,636,352 | |||||||||||||
Dilutive effect of stock-based awards(2) | 18,356 | 22,585 | 19,355 | 15,518 | |||||||||||||
Weighted-average common and potential common shares for diluted EPS | 7,439,948 | 7,666,305 | 7,479,327 | 7,651,870 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic EPS | $ | 0.87 | $ | 0.83 | $ | 2.47 | $ | 2.4 | |||||||||
Diluted EPS | $ | 0.86 | $ | 0.83 | $ | 2.46 | $ | 2.39 | |||||||||
Awards excluded from the calculation of diluted EPS(3): | |||||||||||||||||
Stock options | 30,750 | 14,250 | 14,750 | 31,000 | |||||||||||||
(1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. | |||||||||||||||||
(2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method. | |||||||||||||||||
(3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock. | |||||||||||||||||
Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS 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 stock-based 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 stock-based awards. | |||||||||||||||||
Diluted EPS is computed in a similar manner, except that 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. |
SECURITIES
SECURITIES | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||||||
SECURITIES | ||||||||||||||||||||||||
The following tables summarize the amortized cost and estimated fair values of AFS and HTM securities, as of the dates indicated: | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $ | 4,960 | $ | 22 | $ | — | $ | 4,982 | ||||||||||||||||
Obligations of states and political subdivisions | 27,240 | 806 | — | 28,046 | ||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 377,375 | 5,108 | (4,279 | ) | 378,204 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 360,830 | 867 | (7,384 | ) | 354,313 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 6,249 | 76 | (64 | ) | 6,261 | |||||||||||||||||||
Total AFS securities | $ | 776,654 | $ | 6,879 | $ | (11,727 | ) | $ | 771,806 | |||||||||||||||
HTM Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 11,490 | $ | 210 | $ | (41 | ) | $ | 11,659 | |||||||||||||||
Total HTM securities | $ | 11,490 | $ | 210 | $ | (41 | ) | $ | 11,659 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 30,143 | $ | 1,075 | $ | (11 | ) | $ | 31,207 | |||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 397,409 | 5,528 | (7,034 | ) | 395,903 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 385,847 | 912 | (12,324 | ) | 374,435 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 7,329 | 10 | (407 | ) | 6,932 | |||||||||||||||||||
Total AFS securities | $ | 820,728 | $ | 7,525 | $ | (19,776 | ) | $ | 808,477 | |||||||||||||||
Net unrealized losses on AFS securities at September 30, 2014 and December 31, 2013 included in AOCI amounted to $3.2 million and $8.0 million, net of a deferred tax benefit of $1.7 million and $4.3 million, respectively. | ||||||||||||||||||||||||
During the first nine months of 2014, the Company purchased investment securities totaling $74.1 million. The Company designated $62.5 million as AFS securities and $11.6 million as HTM securities. The Company did not carry any HTM securities at December 31, 2013. | ||||||||||||||||||||||||
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 OTTI. Once a decline in value is determined to be other-than-temporary, the value of the security is permanently reduced 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, 2014 and December 31, 2013, 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, 2014 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | $ | 61,223 | $ | (460 | ) | $ | 127,219 | $ | (3,819 | ) | $ | 188,442 | $ | (4,279 | ) | |||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 80,475 | (393 | ) | 195,373 | (6,991 | ) | 275,848 | (7,384 | ) | |||||||||||||||
Private issue collateralized mortgage obligations | 4,719 | (64 | ) | — | — | 4,719 | (64 | ) | ||||||||||||||||
Total AFS securities | $ | 146,417 | $ | (917 | ) | $ | 322,592 | $ | (10,810 | ) | $ | 469,009 | $ | (11,727 | ) | |||||||||
HTM Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 3,401 | $ | (41 | ) | $ | — | $ | — | $ | 3,401 | $ | (41 | ) | ||||||||||
Total HTM securities | $ | 3,401 | $ | (41 | ) | $ | — | $ | — | $ | 3,401 | $ | (41 | ) | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,143 | $ | (11 | ) | $ | — | $ | — | $ | 2,143 | $ | (11 | ) | ||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 145,424 | (4,189 | ) | 43,915 | (2,845 | ) | 189,339 | (7,034 | ) | |||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 239,278 | (7,738 | ) | 73,376 | (4,586 | ) | 312,654 | (12,324 | ) | |||||||||||||||
Private issue collateralized mortgage obligations | 122 | (4 | ) | 4,945 | (403 | ) | 5,067 | (407 | ) | |||||||||||||||
Total AFS securities | $ | 386,967 | $ | (11,942 | ) | $ | 122,236 | $ | (7,834 | ) | $ | 509,203 | $ | (19,776 | ) | |||||||||
At September 30, 2014, the Company held 83 investment securities with a fair value of $472.4 million with unrealized losses totaling $11.8 million that are considered temporary. Of these, the Company had 49 MBS and CMO investments with a fair value of $322.6 million that have been in an unrealized loss position for 12 months or more. The decline in the fair value of securities is reflective of current interest rates in excess of the yield received on investments and is not indicative of an overall credit deterioration or other factors with the Company's investment portfolio. At September 30, 2014, the Company had no Non-Agency investments in an unrealized loss position for 12 months or more. | ||||||||||||||||||||||||
Stress tests are performed monthly on the Company's Non-Agency investments, 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 2014 indicated potential future credit losses that were lower than previously recorded OTTI and, as such, no additional OTTI was recorded during the first nine months of 2014. | ||||||||||||||||||||||||
Sale of Securities | ||||||||||||||||||||||||
The following table details the Company’s sales of AFS securities for the period indicated below: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Proceeds from sales of securities | $ | — | $ | 12,738 | $ | 25,695 | $ | 17,613 | ||||||||||||||||
Gross realized gains | — | 647 | 451 | 785 | ||||||||||||||||||||
Gross realized losses | — | — | — | — | ||||||||||||||||||||
For the three months ended September 30, 2014, the Company did not sell any securities. For the three months ended September 30, 2013, the Company sold certain AFS securities with a total carrying value of $12.1 million and recorded net gains on the sale of AFS securities of $647,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. | ||||||||||||||||||||||||
For the nine months ended September 30, 2014 and 2013, the Company sold certain AFS securities with a total carrying value of $25.2 million and $16.8 million, respectively. For the nine months ended September 30, 2014 and 2013, the Company recorded net gains on the sale of AFS securities of $451,000 and $785,000, respectively, within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. | ||||||||||||||||||||||||
The cost basis of securities sold is measured on a specific identification basis. | ||||||||||||||||||||||||
Securities Pledged | ||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, securities with an amortized cost of $480.5 million and $479.2 million and estimated fair values of $478.9 million and $474.7 million, respectively, were pledged to secure FHLBB 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, 2014, 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. | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
AFS Securities | ||||||||||||||||||||||||
Due in one year or less | $ | 2,186 | $ | 2,209 | ||||||||||||||||||||
Due after one year through five years | 82,230 | 82,383 | ||||||||||||||||||||||
Due after five years through ten years | 112,277 | 113,046 | ||||||||||||||||||||||
Due after ten years | 579,961 | 574,168 | ||||||||||||||||||||||
$ | 776,654 | $ | 771,806 | |||||||||||||||||||||
HTM Securities | ||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||||||||||||
Due after one year through five years | — | — | ||||||||||||||||||||||
Due after five years through ten years | 2,334 | 2,358 | ||||||||||||||||||||||
Due after ten years | 9,156 | 9,301 | ||||||||||||||||||||||
$ | 11,490 | $ | 11,659 | |||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
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 at September 30, 2014 and December 31, 2013 was as follows: | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Residential real estate loans | $ | 577,515 | $ | 570,391 | ||||||||||||||||||||||||||||
Commercial real estate loans | 613,510 | 541,099 | ||||||||||||||||||||||||||||||
Commercial loans | 245,612 | 179,203 | ||||||||||||||||||||||||||||||
Home equity loans | 271,858 | 272,630 | ||||||||||||||||||||||||||||||
Consumer loans | 18,149 | 17,651 | ||||||||||||||||||||||||||||||
Deferred loan fees, net of costs | (417 | ) | (572 | ) | ||||||||||||||||||||||||||||
Total loans | $ | 1,726,227 | $ | 1,580,402 | ||||||||||||||||||||||||||||
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. The Company did not sell any loans during the three months ended September 30, 2014. For the three months ended September 30, 2013, the Company sold $7.3 million of fixed-rate residential mortgage loans on the secondary market that resulted in net gains on the sale of loans of $32,000. For the nine months ended September 30, 2014 and 2013, the Company sold $399,000 and $28.2 million, respectively, of fixed-rate residential mortgage loans on the secondary market that resulted in net gains on the sale of loans of $17,000 and $684,000, respectively. | ||||||||||||||||||||||||||||||||
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) financial condition of borrowers; (ii) real estate market changes; (iii) state, regional, and national economic conditions; and (iv) a requirement by federal and state regulators to increase the provision for loan losses or recognize additional charge-offs. | ||||||||||||||||||||||||||||||||
In the second quarter of 2014, the Company made one revision to its ALL methodology specific to the allowance allocation for overdrawn checking accounts. Historically, the allocation was determined using the previous four quarters gross charge-offs. The methodology was revised to calculate the allowance using the previous four quarters net charge-off information, which is now consistent with the Company's overall allowance methodology and approach. The change in methodology was reviewed and approved by the Company's Board of Directors prior to implementation. The change resulted in a decrease of $165,000 in the unallocated portion of the ALL. | ||||||||||||||||||||||||||||||||
The Company's Board of Directors monitors credit risk through the Directors' Loan Review Committee, which reviews large credit exposures, monitors the external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, concentration levels, and the ALL methodology. The Corporate Risk Management Group and the Credit Risk Policy Committee oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, maintain the integrity of the loan rating system, determine the adequacy of the ALL and support the oversight efforts of the Directors' Loan Review Committee and the Board of Directors. The Company's practice is to proactively manage the portfolio such that management can identify problem credits early, assess and implement effective work-out strategies, and take charge-offs as timely as practical. In addition, the Company 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 loans into portfolio segments, which include residential real estate, commercial real estate, commercial, home equity, and consumer. | ||||||||||||||||||||||||||||||||
The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,141 | $ | 4,361 | $ | 6,484 | $ | 2,752 | $ | 318 | $ | 2,849 | $ | 21,905 | ||||||||||||||||||
Loans charged off | (9 | ) | (100 | ) | (675 | ) | (166 | ) | (59 | ) | — | (1,009 | ) | |||||||||||||||||||
Recoveries | 2 | 17 | 117 | 8 | 11 | — | 155 | |||||||||||||||||||||||||
Provision (reduction) | 122 | 82 | 35 | (63 | ) | 23 | 335 | 534 | ||||||||||||||||||||||||
Ending balance | $ | 5,256 | $ | 4,360 | $ | 5,961 | $ | 2,531 | $ | 293 | $ | 3,184 | $ | 21,585 | ||||||||||||||||||
ALL for the nine months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,603 | $ | 4,374 | $ | 6,220 | $ | 2,403 | $ | 319 | $ | 2,671 | $ | 21,590 | ||||||||||||||||||
Loans charged off | (370 | ) | (276 | ) | (1,201 | ) | (272 | ) | (99 | ) | — | (2,218 | ) | |||||||||||||||||||
Recoveries | 136 | 67 | 286 | 19 | 30 | — | 538 | |||||||||||||||||||||||||
Provision (reduction) | (113 | ) | 195 | 656 | 381 | 43 | 513 | 1,675 | ||||||||||||||||||||||||
Ending balance | $ | 5,256 | $ | 4,360 | $ | 5,961 | $ | 2,531 | $ | 293 | $ | 3,184 | $ | 21,585 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,420 | $ | 222 | $ | 121 | $ | 573 | $ | 111 | $ | — | $ | 2,447 | ||||||||||||||||||
Collectively evaluated for impairment | 3,836 | 4,138 | 5,840 | 1,958 | 182 | 3,184 | 19,138 | |||||||||||||||||||||||||
Total ending ALL | $ | 5,256 | $ | 4,360 | $ | 5,961 | $ | 2,531 | $ | 293 | $ | 3,184 | $ | 21,585 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,964 | $ | 6,710 | $ | 3,380 | $ | 1,860 | $ | 309 | $ | — | $ | 23,223 | ||||||||||||||||||
Collectively evaluated for impairment | 566,134 | 606,800 | 242,232 | 269,998 | 17,840 | — | 1,703,004 | |||||||||||||||||||||||||
Total ending loans balance | $ | 577,098 | $ | 613,510 | $ | 245,612 | $ | 271,858 | $ | 18,149 | $ | — | $ | 1,726,227 | ||||||||||||||||||
The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||
ALL for the nine months ended: | ||||||||||||||||||||||||||||||||
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 the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 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 | (1,059 | ) | (952 | ) | (1,426 | ) | (647 | ) | (190 | ) | — | (4,274 | ) | |||||||||||||||||||
Recoveries | 35 | 121 | 495 | 56 | 61 | — | 768 | |||||||||||||||||||||||||
Provision (reduction) | (369 | ) | 656 | 1,218 | 474 | 264 | (191 | ) | 2,052 | |||||||||||||||||||||||
Ending balance | $ | 5,603 | $ | 4,374 | $ | 6,220 | $ | 2,403 | $ | 319 | $ | 2,671 | $ | 21,590 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,750 | $ | 526 | $ | 132 | $ | 433 | $ | 140 | $ | — | $ | 2,981 | ||||||||||||||||||
Collectively evaluated for impairment | 3,853 | 3,848 | 6,088 | 1,970 | 179 | 2,671 | 18,609 | |||||||||||||||||||||||||
Total ending ALL | $ | 5,603 | $ | 4,374 | $ | 6,220 | $ | 2,403 | $ | 319 | $ | 2,671 | $ | 21,590 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,435 | $ | 8,864 | $ | 2,635 | $ | 1,571 | $ | 442 | $ | — | $ | 27,947 | ||||||||||||||||||
Collectively evaluated for impairment | 555,384 | 532,235 | 176,568 | 271,059 | 17,209 | — | 1,552,455 | |||||||||||||||||||||||||
Total ending loans balance | $ | 569,819 | $ | 541,099 | $ | 179,203 | $ | 272,630 | $ | 17,651 | $ | — | $ | 1,580,402 | ||||||||||||||||||
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 Corporate Risk Management Group. As of September 30, 2014 and December 31, 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) at 26% and 28%, respectively, and lodging (inns, bed & breakfasts, ski lodges, tourist cabins, hotels and motels) at 26% and 25%. | ||||||||||||||||||||||||||||||||
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, including TDRs, 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 | Total | |||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 563,276 | $ | 579,266 | $ | 228,019 | $ | — | $ | — | $ | 1,370,561 | ||||||||||||||||||||
Performing | — | — | — | 269,998 | 17,840 | 287,838 | ||||||||||||||||||||||||||
Special Mention (Grade 7) | 3,035 | 3,372 | 8,985 | — | — | 15,392 | ||||||||||||||||||||||||||
Substandard (Grade 8) | 10,787 | 30,872 | 8,608 | — | — | 50,267 | ||||||||||||||||||||||||||
Non-performing | — | — | — | 1,860 | 309 | 2,169 | ||||||||||||||||||||||||||
Total | $ | 577,098 | $ | 613,510 | $ | 245,612 | $ | 271,858 | $ | 18,149 | $ | 1,726,227 | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 551,035 | $ | 496,257 | $ | 155,851 | $ | — | $ | — | $ | 1,203,143 | ||||||||||||||||||||
Performing | — | — | — | 271,059 | 17,210 | 288,269 | ||||||||||||||||||||||||||
Special Mention (Grade 7) | 3,196 | 7,749 | 11,315 | — | — | 22,260 | ||||||||||||||||||||||||||
Substandard (Grade 8) | 15,588 | 37,093 | 12,037 | — | — | 64,718 | ||||||||||||||||||||||||||
Non-performing | — | — | — | 1,571 | 441 | 2,012 | ||||||||||||||||||||||||||
Total | $ | 569,819 | $ | 541,099 | $ | 179,203 | $ | 272,630 | $ | 17,651 | $ | 1,580,402 | ||||||||||||||||||||
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 to the extent 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 but instead 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 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, 2014 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 700 | $ | 355 | $ | 5,693 | $ | 6,748 | $ | 570,350 | $ | 577,098 | $ | — | $ | 7,098 | ||||||||||||||||
Commercial real estate | 1,510 | 324 | 3,729 | 5,563 | 607,947 | 613,510 | — | 5,707 | ||||||||||||||||||||||||
Commercial | 2,226 | 45 | 1,420 | 3,691 | 241,921 | 245,612 | — | 3,051 | ||||||||||||||||||||||||
Home equity | 1,805 | 207 | 1,606 | 3,618 | 268,240 | 271,858 | — | 1,860 | ||||||||||||||||||||||||
Consumer | 46 | 27 | 290 | 363 | 17,786 | 18,149 | — | 309 | ||||||||||||||||||||||||
Total | $ | 6,287 | $ | 958 | $ | 12,738 | $ | 19,983 | $ | 1,706,244 | $ | 1,726,227 | $ | — | $ | 18,025 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 3,218 | $ | 684 | $ | 7,269 | $ | 11,171 | $ | 558,648 | $ | 569,819 | $ | — | $ | 10,520 | ||||||||||||||||
Commercial real estate | 926 | 2,036 | 3,301 | 6,263 | 534,836 | 541,099 | 257 | 7,799 | ||||||||||||||||||||||||
Commercial | 159 | 237 | 1,980 | 2,376 | 176,827 | 179,203 | 198 | 2,146 | ||||||||||||||||||||||||
Home equity | 1,395 | 388 | 1,007 | 2,790 | 269,840 | 272,630 | — | 1,571 | ||||||||||||||||||||||||
Consumer | 63 | 21 | 418 | 502 | 17,149 | 17,651 | — | 441 | ||||||||||||||||||||||||
Total | $ | 5,761 | $ | 3,366 | $ | 13,975 | $ | 23,102 | $ | 1,557,300 | $ | 1,580,402 | $ | 455 | $ | 22,477 | ||||||||||||||||
Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $192,000 and $256,000 for the three months ended September 30, 2014 and 2013, respectively, and $647,000 and $738,000 for the nine months ended September 30, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
The Company takes a conservative approach in credit risk management and remains focused on community lending and reinvesting. The Company 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 remain in a restructured status, even if performing in accordance with the modified terms, until paid in full. | ||||||||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company had specific reserve allowance related to TDRs was $691,000 and $656,000, respectively. The specific reserve component was determined by discounting the total expected future cash flows from the borrower at the original loan interest rate, 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, 2014, the Company had performing and non-performing TDRs of $5.2 million and $1.5 million, respectively. At December 31, 2013, the Company had performing and non-performing TDRs of $5.5 million and $1.6 million, respectively. As of September 30, 2014 and December 31, 2013, the Company did not have any commitments to lend additional funds to borrowers with loans classified as TDRs. | ||||||||||||||||||||||||||||||||
The following is a summary of TDRs by portfolio segment and the associated specific reserve included within the ALL as of September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||
Number of Contracts | Current Balance | Specific Reserve | ||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Residential real estate | 26 | 26 | $ | 4,098 | $ | 4,089 | $ | 667 | $ | 525 | ||||||||||||||||||||||
Commercial real estate | 9 | 10 | 2,141 | 2,558 | 11 | 131 | ||||||||||||||||||||||||||
Commercial | 9 | 7 | 437 | 488 | 13 | — | ||||||||||||||||||||||||||
Home equity and consumer | 1 | 1 | 30 | 1 | — | — | ||||||||||||||||||||||||||
Total | 45 | 44 | $ | 6,706 | $ | 7,136 | $ | 691 | $ | 656 | ||||||||||||||||||||||
The following represents loan modifications qualifying as TDRs by portfolio segment and the associated specific reserve included within the ALL for the three and nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Number of Contracts | Pre-Modification | Post-Modification | Specific Reserve | |||||||||||||||||||||||||||||
Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||
Three months ended: | ||||||||||||||||||||||||||||||||
Residential real estate | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Commercial real estate | 1 | 235 | 235 | — | ||||||||||||||||||||||||||||
Commercial | 3 | 77 | 77 | 9 | ||||||||||||||||||||||||||||
Home equity and consumer | 1 | 40 | 30 | — | ||||||||||||||||||||||||||||
Total | 5 | $ | 352 | $ | 342 | $ | 9 | |||||||||||||||||||||||||
Nine months ended: | ||||||||||||||||||||||||||||||||
Residential real estate | 1 | $ | 136 | $ | 149 | $ | 44 | |||||||||||||||||||||||||
Commercial real estate | 1 | 235 | 235 | — | ||||||||||||||||||||||||||||
Commercial | 3 | 77 | 77 | 9 | ||||||||||||||||||||||||||||
Home equity and consumer | 1 | 40 | 30 | — | ||||||||||||||||||||||||||||
Total | 6 | $ | 488 | $ | 491 | $ | 53 | |||||||||||||||||||||||||
The following represents loan modifications qualifying as TDRs by portfolio segment and the associated specific reserve included within the ALL for the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Number of Contracts | Pre-Modification | Post-Modification | Specific Reserve | |||||||||||||||||||||||||||||
Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
Residential real estate | 2 | $ | 359 | $ | 379 | $ | — | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||
Commercial | — | — | — | — | ||||||||||||||||||||||||||||
Home equity and consumer | — | — | — | — | ||||||||||||||||||||||||||||
Total | 2 | $ | 359 | $ | 379 | $ | — | |||||||||||||||||||||||||
Nine months ended | ||||||||||||||||||||||||||||||||
Residential real estate | 4 | $ | 636 | $ | 665 | $ | 5 | |||||||||||||||||||||||||
Commercial real estate | 2 | 279 | 286 | 2 | ||||||||||||||||||||||||||||
Commercial | 3 | 236 | 236 | 1 | ||||||||||||||||||||||||||||
Home equity and consumer | — | — | — | — | ||||||||||||||||||||||||||||
Total | 9 | $ | 1,151 | $ | 1,187 | $ | 8 | |||||||||||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, there were no loans modified as a TDR within the previous 12 months and for which the borrower subsequently defaulted. | ||||||||||||||||||||||||||||||||
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 and for the three and nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Balance | Investment | Recognized(1) | Investment | Recognized | ||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 9,441 | $ | 9,441 | $ | 1,420 | $ | 9,236 | $ | 38 | $ | 9,928 | $ | 102 | ||||||||||||||||||
Commercial real estate | 2,987 | 2,987 | 222 | 3,142 | 1 | 5,588 | 2 | |||||||||||||||||||||||||
Commercial | 1,562 | 1,562 | 121 | 2,724 | (2 | ) | 2,653 | 8 | ||||||||||||||||||||||||
Home equity | 1,510 | 1,510 | 573 | 1,486 | — | 1,571 | — | |||||||||||||||||||||||||
Consumer | 292 | 292 | 111 | 333 | — | 392 | — | |||||||||||||||||||||||||
Ending Balance | 15,792 | 15,792 | 2,447 | 16,921 | 37 | 20,132 | 112 | |||||||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | 1,523 | 1,880 | — | 1,751 | 2 | 2,340 | 5 | |||||||||||||||||||||||||
Commercial real estate | 3,723 | 4,116 | — | 3,490 | 14 | 2,230 | 43 | |||||||||||||||||||||||||
Commercial | 1,818 | 2,318 | — | 870 | 6 | 609 | 8 | |||||||||||||||||||||||||
Home equity | 350 | 477 | — | 403 | — | 415 | — | |||||||||||||||||||||||||
Consumer | 17 | 37 | — | 17 | — | 17 | — | |||||||||||||||||||||||||
Ending Balance | 7,431 | 8,828 | — | 6,531 | 22 | 5,611 | 56 | |||||||||||||||||||||||||
Total impaired loans | $ | 23,223 | $ | 24,620 | $ | 2,447 | $ | 23,452 | $ | 59 | $ | 25,743 | $ | 168 | ||||||||||||||||||
(1) Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. | ||||||||||||||||||||||||||||||||
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 an 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 | ||||||||||||||||||
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 11,902 | $ | 11,902 | $ | 1,750 | $ | 10,411 | $ | 118 | ||||||||||||||||||||||
Commercial real estate | 6,805 | 6,805 | 526 | 5,517 | 20 | |||||||||||||||||||||||||||
Commercial | 1,876 | 1,876 | 132 | 2,543 | 10 | |||||||||||||||||||||||||||
Home equity | 1,228 | 1,228 | 433 | 1,291 | — | |||||||||||||||||||||||||||
Consumer | 425 | 425 | 140 | 460 | — | |||||||||||||||||||||||||||
Ending Balance | 22,236 | 22,236 | 2,981 | 20,222 | 148 | |||||||||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | 2,533 | 3,846 | — | 2,925 | 28 | |||||||||||||||||||||||||||
Commercial real estate | 2,059 | 2,782 | — | 3,362 | 55 | |||||||||||||||||||||||||||
Commercial | 759 | 871 | — | 765 | 8 | |||||||||||||||||||||||||||
Home equity | 343 | 479 | — | 334 | — | |||||||||||||||||||||||||||
Consumer | 17 | 37 | — | 11 | — | |||||||||||||||||||||||||||
Ending Balance | 5,711 | 8,015 | — | 7,397 | 91 | |||||||||||||||||||||||||||
Total impaired loans | $ | 27,947 | $ | 30,251 | $ | 2,981 | $ | 27,619 | $ | 239 | ||||||||||||||||||||||
The Company records its properties obtained through foreclosure or deed-in-lieu of foreclosure as OREO properties on the consolidated statements of condition at fair value of the real estate, less the estimated cost to sell (i.e. net realizable value). If a write-down of the recorded investment at the time of transfer to OREO is necessary, the write-down is charged to the ALL. If a subsequent write-down of the property is necessary due to a further decline in the fair value of the property then the write-down is recorded through a valuation allowance on the OREO property and charged to other non-interest expense in the consolidated statements of income. At September 30, 2014, the Company had 11 residential real estate properties and 6 commercial properties with a carrying value of $554,000 and $1.0 million, respectively, within OREO. At December 31, 2013, the Company had 10 residential real estate properties and 6 commercial properties with a carrying value of $1.0 million and $1.2 million, respectively, within OREO. | ||||||||||||||||||||||||||||||||
At September 30, 2014 and December 31, 2013, the Company had $6.0 million and $4.4 million, respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSESTS | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||||||||
The Company has recognized goodwill and certain identifiable intangible assets in connection with certain business acquisitions in prior years. | ||||||||||||||||||||||||
Goodwill as of September 30, 2014 and December 31, 2013 are shown in the table below: | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Banking | Financial | Total | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||
September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||
Goodwill, gross | $ | 40,902 | $ | 7,474 | $ | 48,376 | ||||||||||||||||||
Accumulated impairment losses | — | (3,570 | ) | (3,570 | ) | |||||||||||||||||||
Reported goodwill at September 30, 2014 and December 31, 2013 | $ | 40,902 | $ | 3,904 | $ | 44,806 | ||||||||||||||||||
The changes in core deposit and trust relationship intangible assets for the nine months ended September 30, 2014 are shown in the table below: | ||||||||||||||||||||||||
Core Deposit Intangible | Trust Relationship Intangible | |||||||||||||||||||||||
Total | Accumulated Amortization | Net | Total | Accumulated Amortization | Net | |||||||||||||||||||
Balance at December 31, 2013 | $ | 17,300 | $ | (13,088 | ) | $ | 4,212 | $ | 753 | $ | (452 | ) | $ | 301 | ||||||||||
2014 amortization | — | (805 | ) | (805 | ) | — | (56 | ) | (56 | ) | ||||||||||||||
Balance at September 30, 2014 | $ | 17,300 | $ | (13,893 | ) | $ | 3,407 | $ | 753 | $ | (508 | ) | $ | 245 | ||||||||||
It is estimated that core deposit and trust relationship intangible assets will be fully amortized as of December 31, 2017. The following table reflects the expected amortization of core deposit and trust relationship intangible assets over their respective estimated remaining useful lives as of September 30, 2014: | ||||||||||||||||||||||||
Core Deposit | Trust | |||||||||||||||||||||||
Intangible | Relationship | |||||||||||||||||||||||
Intangible | ||||||||||||||||||||||||
2014 | $ | 268 | $ | 19 | ||||||||||||||||||||
2015 | 1,073 | 75 | ||||||||||||||||||||||
2016 | 1,073 | 75 | ||||||||||||||||||||||
2017 | 993 | 76 | ||||||||||||||||||||||
Total | $ | 3,407 | $ | 245 | ||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | ||||||||||||||||
EMPLOYEE BENEFIT PLANS | |||||||||||||||||
The Company sponsors unfunded, non-qualified SERPs 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, 2014 and 2013 were as follows: | |||||||||||||||||
Supplemental Executive Retirement Plan: | |||||||||||||||||
Three Months Ended | Nine Months Ended September 30, | ||||||||||||||||
September 30, | |||||||||||||||||
Net period benefit cost | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 67 | $ | 82 | $ | 201 | $ | 246 | |||||||||
Interest cost | 114 | 94 | 342 | 282 | |||||||||||||
Recognized net actuarial loss | 35 | 56 | 105 | 168 | |||||||||||||
Recognized prior service cost | 5 | 5 | 15 | 15 | |||||||||||||
Net period benefit cost(1) | $ | 221 | $ | 237 | $ | 663 | $ | 711 | |||||||||
(1) Presented within the consolidated statements of income within salaries and employee benefits. | |||||||||||||||||
Other Postretirement Benefit Plan: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Net period benefit cost | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 11 | $ | 19 | $ | 33 | $ | 57 | |||||||||
Interest cost | 33 | 35 | 99 | 105 | |||||||||||||
Recognized net actuarial loss | 2 | 11 | 6 | 33 | |||||||||||||
Recognized prior service credit | (5 | ) | — | (15 | ) | — | |||||||||||
Net period benefit cost(1) | $ | 41 | $ | 65 | $ | 123 | $ | 195 | |||||||||
(1) Presented within the consolidated statements of income within salaries and employee benefits. | |||||||||||||||||
In the first quarter of 2014, the Company amended its terms of the postretirement plan impacting the eligibility of employees. The amendment to the plan does not have a material effect on the Company's consolidated financial statements. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
STOCK-BASED COMPENSATION PLANS | ' |
STOCK-BASED COMPENSATION PLANS | |
On February 25, 2014, 7,181 shares vested upon the achievement of certain revenue and expense goals under the 2011 – 2013 LTIP, and 4,881 shares, net of taxes, were issued to participants. | |
On March 7, 2014, the Company granted 5,400 restricted stock awards to certain officers of the Company and its subsidiaries under the 2012 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 $39.57 per unit, based on the closing market price of the Company’s common stock on the grant date. The restricted stock awards vest pro-rata over a three-year period. | |
On March 7, 2014, 5,055 shares were purchased by certain officers of the Company and its subsidiaries at a one-third discount, based on the closing market price of the Company's common stock on the date of grant, $39.57, in lieu of the employees' annual incentive bonus under the MSPP. The shares fully vest after two years of service from the grant date. | |
On March 17, 2014, the Company granted 2,020 deferred stock awards under the DCRP to certain executive officers. The stock awards have been determined to have a fair value of $40.00 per unit, based on the closing market price of the Company's common stock on the grant date. | |
On March 25, 2014, the Company approved the Amended and Restated LTIP for the 2014 – 2016 performance period. Pursuant to the 2014 – 2016 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 2014 – 2016 LTIP. Performance goals under the 2014 – 2016 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 assets to total assets ratio at December 31, 2016 and a minimum level of net income growth for the three-year period ending December 31, 2016. | |
On May 1, 2014, the Company granted 2,831 unrestricted stock awards and restricted stock units to the Directors of the Company and Bank under the Independent Directors' Equity Compensation Program, a component of the 2012 Plan. The unrestricted stock awards fully vested on the grant date and have voting and dividend rights. The restricted stock units are deferred until termination or retirement and have no voting or dividend rights. The fair value of the share awards issued to the Directors was determined using the closing market price of the Company's stock on the grant date, $37.50 per unit. The Company recorded $106,000 of expense associated with the issuance. The expense is recorded within consulting and professional fees on the consolidated statements of income. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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 Company did not have any loans held for sale at September 30, 2014 or December 31, 2013. | ||||||||||||||||||||
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 | ||||||||||||||||||||
AFS securities: The fair value 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. | ||||||||||||||||||||
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, 2014 and December 31, 2013, 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, 2014 and December 31, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||||||||
Fair | Readily | Observable | Company | |||||||||||||||||
Value | Available | Market | Determined | |||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
AFS securities: | ||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $ | 4,982 | $ | — | $ | 4,982 | $ | — | ||||||||||||
Obligations of states and political subdivisions | 28,046 | — | 28,046 | — | ||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 378,204 | — | 378,204 | — | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 354,313 | — | 354,313 | — | ||||||||||||||||
Private issue collateralized mortgage obligations | 6,261 | — | 6,261 | — | ||||||||||||||||
Trading account assets | 2,418 | 2,418 | — | — | ||||||||||||||||
Customer interest rate swap agreements | 506 | — | 506 | — | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | 6,969 | — | 6,969 | — | ||||||||||||||||
Customer interest rate swap agreements | 506 | — | 506 | — | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
AFS securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 31,207 | $ | — | $ | 31,207 | $ | — | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 395,903 | — | 395,903 | — | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 374,435 | — | 374,435 | — | ||||||||||||||||
Private issue collateralized mortgage obligations | 6,932 | — | 6,932 | — | ||||||||||||||||
Trading account assets | 2,488 | 2,488 | — | — | ||||||||||||||||
Customer interest rate swap agreements | 114 | — | 114 | — | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | 3,911 | — | 3,911 | — | ||||||||||||||||
Customer interest rate swap agreements | 114 | — | 114 | — | ||||||||||||||||
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, 2014. The Company’s policy 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. The Company's policy is to individually evaluate for impairment loans with a principal balance greater than $250,000 and are risk rate 8 or higher or are on non-accrual status. Once the population of loans is identified for individual impairment assessment, the Company measures these loans for impairment by comparing the estimated fair value of the collateral, less the estimated costs to sell (i.e. net realizable value), to the carrying value of the loan. If the estimated net realizable value of the loan is less than the carrying value of the loan, then a loss is recognized as part of the ALL to adjust the loan's carrying value to the estimated net realizable value. Accordingly, certain collateral-dependent impaired loans are subject to measurement at fair value (or net realizable 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. | ||||||||||||||||||||
MSRs: 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. MSRs 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. Furthermore, the Company does not have any non-financial liabilities measured at fair value on a non-recurring basis. Non-financial assets measured at fair value on a non-recurring basis consist of OREO and goodwill. | ||||||||||||||||||||
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 (i.e. net realizable value). Any write-down of the recorded investment in the related loan is charged to the ALL upon transfer to OREO. Upon acquisition of a property, a current appraisal or a broker’s opinion is used to substantiate fair value of the property. After foreclosure, management periodically, but at least annually, obtains updated valuations of the OREO properties 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 within the consolidated statements of income. As management considers appropriate, adjustments are made to the appraisal obtained for the OREO property to account for recent sales activity of comparable properties, changes in the condition of the property, and changes in market conditions. These adjustments are not observable in an active market and classified as Level 3. | ||||||||||||||||||||
Goodwill: Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. The fair value of goodwill is estimated by utilizing several standard valuation techniques, including discounted cash flow analyses, bank merger multiples, and/or an estimation of the impact of business conditions and investor activities on the long-term value of the goodwill. Should an impairment of either reporting units' goodwill occur the associated goodwill is written-down to fair value and the impairment charge is recorded within non-interest expense in the consolidated statements of income. | ||||||||||||||||||||
As of and for the nine months ended September 30, 2014, there have been no indications or triggering events for which management believes that it is more-likely-than-not that goodwill is impaired. In the fourth quarter of 2013, the Company recorded a goodwill impairment of $2.8 million to write-down the financial services reporting unit to fair value of $3.9 million. As such, goodwill for the financial services reporting unit at December 31, 2013 is recorded at fair value. The banking reporting unit was not deemed impaired. | ||||||||||||||||||||
The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis as of September 30, 2014 and December 31, 2013. Not included in the table below because they are not recorded at fair value at September 30, 2014 and December 31, 2013 are: (i) impaired loans of $20.2 million and $19.4 million, respectively; (ii) MSRs reported of $359,000 and $322,000, respectively; and (iii) OREO properties of $305,000 and $612,000, respectively. | ||||||||||||||||||||
Fair | Readily | Observable | Company | |||||||||||||||||
Value | Available | Market | Determined | |||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Collateral-dependent impaired loans | $ | 3,022 | $ | — | $ | — | $ | 3,022 | ||||||||||||
MSRs(1) | 179 | — | 179 | — | ||||||||||||||||
Non-financial assets: | ||||||||||||||||||||
OREO | 1,261 | — | — | 1,261 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Collateral-dependent impaired loans | $ | 8,557 | $ | — | $ | — | $ | 8,557 | ||||||||||||
MSRs(1) | 404 | — | 404 | — | ||||||||||||||||
Non-financial assets: | ||||||||||||||||||||
OREO | 1,583 | — | — | 1,583 | ||||||||||||||||
Goodwill - financial services reporting unit | 3,904 | — | — | 3,904 | ||||||||||||||||
(1) Represents MSRs deemed to be impaired and a valuation allowance established to carry at fair value. | ||||||||||||||||||||
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, 2014 and December 31, 2013: | ||||||||||||||||||||
Fair Value | Valuation Methodology | Unobservable input | Discount Range | |||||||||||||||||
(Weighted-Average) | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Collateral-dependent impaired loans: | ||||||||||||||||||||
Partially charged-off | $ | 808 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 46% | -8% | ||||||||||||||
Specifically reserved(1) | 2,214 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 - 69% | -37% | |||||||||||||||
OREO | 1,261 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 41% | -18% | |||||||||||||||
Estimated selling cost | 6 - 10% | -9% | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Collateral-dependent impaired loans: | ||||||||||||||||||||
Partially charged-off | $ | 1,874 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 85% | -14% | ||||||||||||||
Specifically reserved(1) | 6,683 | Market approach appraisal of collateral | Management adjustment of appraisal | 7 - 90% | -22% | |||||||||||||||
OREO | 1,583 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 41% | -16% | |||||||||||||||
Estimated selling cost | 6 - 10% | -10% | ||||||||||||||||||
Goodwill | 3,904 | Discounted cash flow | Revenue growth rate | 5.00% | — | |||||||||||||||
Margin percentage | 8.30% | — | ||||||||||||||||||
Discount rate | 16.50% | — | ||||||||||||||||||
Fair value weighting | 50.00% | — | ||||||||||||||||||
Market approach | Fair value weighting | 50.00% | — | |||||||||||||||||
(1) The specific reserve for collateral-dependent impaired loans is determined by any loan-to-value ratio in excess of 80% for consumer loans and any loan-to-value ratio in excess of 75% for commercial loans. Appraisals are received on impaired loans in accordance with the Company's internal policy. As such, adjustments to the appraised fair value are made, as necessary, should the appraisal not be current. Adjustments are made to the appraised fair value to reflect changes in known factors, including, but not limited to, property condition, property location, and costs to sell the collateral. | ||||||||||||||||||||
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 statements of condition approximate fair value. | ||||||||||||||||||||
HTM securities: The fair value is estimated 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 is classified as Level 2. | ||||||||||||||||||||
FHLB and FRB and Investments in CCTA and UBCT: 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, 2014: | ||||||||||||||||||||
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 | $ | 59,450 | $ | 59,450 | $ | 59,450 | $ | — | $ | — | ||||||||||
AFS securities | 771,806 | 771,806 | — | 771,806 | — | |||||||||||||||
HTM securities | 11,490 | 11,659 | — | 11,659 | — | |||||||||||||||
FHLB and FRB stock | 20,379 | 20,379 | 20,379 | — | — | |||||||||||||||
Trading account assets | 2,418 | 2,418 | 2,418 | — | — | |||||||||||||||
Residential real estate loans | 570,933 | 580,261 | — | — | 580,261 | |||||||||||||||
Commercial real estate loans | 608,396 | 604,195 | — | — | 604,195 | |||||||||||||||
Commercial loans | 238,619 | 235,131 | — | — | 235,131 | |||||||||||||||
Home equity loans | 268,889 | 270,112 | — | — | 270,112 | |||||||||||||||
Consumer loans | 17,805 | 18,005 | — | — | 18,005 | |||||||||||||||
MSRs(1) | 538 | 1,526 | — | 1,526 | — | |||||||||||||||
Interest receivable | 6,162 | 6,162 | — | 6,162 | — | |||||||||||||||
Investments in CCTA and UBCT | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 506 | 506 | — | 506 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,928,543 | $ | 1,930,182 | $ | 1,389,977 | $ | 540,205 | $ | — | ||||||||||
FHLB advances | 56,058 | 58,244 | — | 58,244 | — | |||||||||||||||
Commercial repurchase agreements | 30,109 | 31,591 | — | 31,591 | — | |||||||||||||||
Other borrowed funds | 411,062 | 411,125 | 411,125 | — | — | |||||||||||||||
Junior subordinated debentures | 43,998 | 43,998 | — | 43,998 | — | |||||||||||||||
Interest payable | 510 | 510 | 510 | — | — | |||||||||||||||
Interest rate swap agreements | 6,969 | 6,969 | — | 6,969 | — | |||||||||||||||
Customer interest rate swap agreements | 506 | 506 | — | 506 | — | |||||||||||||||
(1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. | ||||||||||||||||||||
The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 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 | $ | 51,355 | $ | 51,355 | $ | 51,355 | $ | — | $ | — | ||||||||||
AFS securities | 808,477 | 808,477 | — | 808,477 | — | |||||||||||||||
FHLB and FRB stock | 19,724 | 19,724 | 19,724 | — | — | |||||||||||||||
Trading account assets | 2,488 | 2,488 | 2,488 | — | — | |||||||||||||||
Residential real estate loans | 563,425 | 577,153 | — | — | 577,153 | |||||||||||||||
Commercial real estate loans | 536,107 | 535,961 | — | — | 535,961 | |||||||||||||||
Commercial loans | 172,105 | 171,432 | — | — | 171,432 | |||||||||||||||
Home equity loans | 269,888 | 271,041 | — | — | 271,041 | |||||||||||||||
Consumer loans | 17,287 | 17,662 | — | — | 17,662 | |||||||||||||||
MSRs(1) | 726 | 1,494 | — | 1,494 | — | |||||||||||||||
Interest receivable | 5,808 | 5,808 | — | 5,808 | — | |||||||||||||||
Investments in CCTA and UBCT | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 114 | 114 | — | 114 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,813,824 | $ | 1,817,199 | $ | 1,324,221 | $ | 492,978 | $ | — | ||||||||||
FHLB advances | 56,112 | 59,118 | — | 59,118 | — | |||||||||||||||
Commercial repurchase agreements | 30,142 | 32,038 | — | 32,038 | — | |||||||||||||||
Other borrowed funds | 399,916 | 400,144 | 400,144 | — | — | |||||||||||||||
Junior subordinated debentures | 43,922 | 43,922 | — | 43,922 | — | |||||||||||||||
Interest payable | 567 | 567 | 567 | — | — | |||||||||||||||
Interest rate swap agreements | 3,911 | 3,911 | — | 3,911 | — | |||||||||||||||
Customer interest rate swap agreements | 114 | 114 | — | 114 | — | |||||||||||||||
(1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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, 2014, the Company did not have any loss contingencies that were both probable and reasonably estimable and, therefore, has not accrued for any legal contingencies within 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, | |||||||
2014 | 2013 | |||||||
Lending-Related Instruments: | ||||||||
Loan origination commitments and unadvanced lines of credit: | ||||||||
Home equity | $ | 309,641 | $ | 276,671 | ||||
Commercial and commercial real estate | 52,040 | 26,688 | ||||||
Residential | 15,638 | 6,408 | ||||||
Letters of credit | 3,762 | 1,789 | ||||||
Other commitments | 743 | 437 | ||||||
Derivative Financial Instruments: | ||||||||
Interest rate swaps | 43,000 | 43,000 | ||||||
Customer loan swaps | 30,607 | 15,702 | ||||||
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 $8.1 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, 2014 was a liability of $7.0 million. As each instrument qualifies as a highly effective cash flow hedge, the decrease in the fair value of the interest rate swaps for the nine months ended September 30, 2014 of $2.0 million, net of tax, was recorded in OCI. Net payments have been classified as cash flows from operating activities in the consolidated statements of cash flows. The Company would reclassify unrealized gains or losses accounted for within AOCI into earnings if the interest rate swaps were to become ineffective or the arrangements were to terminate. In the next 12 months, the Company does not believe it will reclassify any related unrealized gains or losses accounted for within AOCI into earnings. | ||||||||
Customer Loan Swaps: | ||||||||
The Company has a notional amount of $15.3 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 or have any net impact on the Company's net income. | ||||||||
Interest Rate Locks: | ||||||||
As part of originating residential mortgages, the Company may enter into rate lock agreements with customers, which are considered interest rate lock commitments. At September 30, 2014 and December 31, 2013, based upon the pipeline of mortgage loans with rate lock commitments, the fair value of these commitments is immaterial to the Company's consolidated financial statements. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In January 2014, the FASB issued ASU No. 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The ASU amends current guidance to permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The amendments in this ASU are to be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply such method to those preexisting investments. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The ASU does not have a material effect on the Company's consolidated financial statements. | |
In January 2014, the FASB issued ASU No. 2014-04, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The ASU was issued to clarify that if an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the ASU amendments require interim and annual disclosure of both (i) the amount of foreclosed residential real estate property held by the creditor and (ii) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, with early adoption permitted. The ASU has been adopted using a prospective transition method. The Company has provided for the required disclosures within its consolidated financial statements and the other changes within the ASU do not have a material effect on the Company's consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU was issued to clarify the principles for recognizing revenue and to develop a common revenue standard. The ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the potential impact of the ASU on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The ASU was issued to respond to concerns about current accounting and disclosures for repurchase agreements and similar transactions. The concern was that under current accounting guidance there is an unnecessary distinction between the accounting for different types of repurchase agreements. Under current guidance, the repurchase-to-maturity transactions are accounted for as sales with forward agreements, whereas repurchase agreements that settle before the maturity of the transferred financial asset are accounted for as secured borrowings. The ASU amendments require new disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secure borrowings. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The ASU will not have a material effect on the Company's consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The ASU was issued because current U.S. GAAP does not contain explicit guidance on how to account for share-based payments when a performance target could be achieved after the requisite service period. The ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The ASU will not have a material effect on the Company's consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-14, Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The ASU was issued to provide specific guidance on how to classify or measure foreclosed mortgage loans that are government guaranteed. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014, and the Company expects to adopt using the prospective transition method. The ASU is not expected to have a material effect on the Company's consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. The ASU was issued to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The ASU is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. The ASU is not expected to have a material effect on the Company's consolidated financial statements. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Analysis of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net income | $ | 6,451 | $ | 6,366 | $ | 18,482 | $ | 18,359 | |||||||||
Dividends and undistributed earnings allocated to participating securities(1) | (20 | ) | (20 | ) | (57 | ) | (50 | ) | |||||||||
Net income available to common shareholders | $ | 6,431 | $ | 6,346 | $ | 18,425 | $ | 18,309 | |||||||||
Weighted-average common shares outstanding for basic EPS | 7,421,592 | 7,643,720 | 7,459,972 | 7,636,352 | |||||||||||||
Dilutive effect of stock-based awards(2) | 18,356 | 22,585 | 19,355 | 15,518 | |||||||||||||
Weighted-average common and potential common shares for diluted EPS | 7,439,948 | 7,666,305 | 7,479,327 | 7,651,870 | |||||||||||||
Earnings per common share: | |||||||||||||||||
Basic EPS | $ | 0.87 | $ | 0.83 | $ | 2.47 | $ | 2.4 | |||||||||
Diluted EPS | $ | 0.86 | $ | 0.83 | $ | 2.46 | $ | 2.39 | |||||||||
Awards excluded from the calculation of diluted EPS(3): | |||||||||||||||||
Stock options | 30,750 | 14,250 | 14,750 | 31,000 | |||||||||||||
(1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. | |||||||||||||||||
(2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method. | |||||||||||||||||
(3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock. |
SECURITIES_Tables
SECURITIES (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
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 cost and estimated fair values of AFS and HTM securities, as of the dates indicated: | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $ | 4,960 | $ | 22 | $ | — | $ | 4,982 | ||||||||||||||||
Obligations of states and political subdivisions | 27,240 | 806 | — | 28,046 | ||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 377,375 | 5,108 | (4,279 | ) | 378,204 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 360,830 | 867 | (7,384 | ) | 354,313 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 6,249 | 76 | (64 | ) | 6,261 | |||||||||||||||||||
Total AFS securities | $ | 776,654 | $ | 6,879 | $ | (11,727 | ) | $ | 771,806 | |||||||||||||||
HTM Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 11,490 | $ | 210 | $ | (41 | ) | $ | 11,659 | |||||||||||||||
Total HTM securities | $ | 11,490 | $ | 210 | $ | (41 | ) | $ | 11,659 | |||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 30,143 | $ | 1,075 | $ | (11 | ) | $ | 31,207 | |||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 397,409 | 5,528 | (7,034 | ) | 395,903 | |||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 385,847 | 912 | (12,324 | ) | 374,435 | |||||||||||||||||||
Private issue collateralized mortgage obligations | 7,329 | 10 | (407 | ) | 6,932 | |||||||||||||||||||
Total AFS securities | $ | 820,728 | $ | 7,525 | $ | (19,776 | ) | $ | 808,477 | |||||||||||||||
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, 2014 and December 31, 2013, 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, 2014 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | $ | 61,223 | $ | (460 | ) | $ | 127,219 | $ | (3,819 | ) | $ | 188,442 | $ | (4,279 | ) | |||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 80,475 | (393 | ) | 195,373 | (6,991 | ) | 275,848 | (7,384 | ) | |||||||||||||||
Private issue collateralized mortgage obligations | 4,719 | (64 | ) | — | — | 4,719 | (64 | ) | ||||||||||||||||
Total AFS securities | $ | 146,417 | $ | (917 | ) | $ | 322,592 | $ | (10,810 | ) | $ | 469,009 | $ | (11,727 | ) | |||||||||
HTM Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 3,401 | $ | (41 | ) | $ | — | $ | — | $ | 3,401 | $ | (41 | ) | ||||||||||
Total HTM securities | $ | 3,401 | $ | (41 | ) | $ | — | $ | — | $ | 3,401 | $ | (41 | ) | ||||||||||
December 31, 2013 | ||||||||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,143 | $ | (11 | ) | $ | — | $ | — | $ | 2,143 | $ | (11 | ) | ||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 145,424 | (4,189 | ) | 43,915 | (2,845 | ) | 189,339 | (7,034 | ) | |||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 239,278 | (7,738 | ) | 73,376 | (4,586 | ) | 312,654 | (12,324 | ) | |||||||||||||||
Private issue collateralized mortgage obligations | 122 | (4 | ) | 4,945 | (403 | ) | 5,067 | (407 | ) | |||||||||||||||
Total AFS securities | $ | 386,967 | $ | (11,942 | ) | $ | 122,236 | $ | (7,834 | ) | $ | 509,203 | $ | (19,776 | ) | |||||||||
Company's Sales of Securities | ' | |||||||||||||||||||||||
The following table details the Company’s sales of AFS securities for the period indicated below: | ||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Proceeds from sales of securities | $ | — | $ | 12,738 | $ | 25,695 | $ | 17,613 | ||||||||||||||||
Gross realized gains | — | 647 | 451 | 785 | ||||||||||||||||||||
Gross realized losses | — | — | — | — | ||||||||||||||||||||
Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | ' | |||||||||||||||||||||||
The amortized cost and estimated fair values of debt securities by contractual maturity at September 30, 2014, 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. | ||||||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||||||
Cost | Value | |||||||||||||||||||||||
AFS Securities | ||||||||||||||||||||||||
Due in one year or less | $ | 2,186 | $ | 2,209 | ||||||||||||||||||||
Due after one year through five years | 82,230 | 82,383 | ||||||||||||||||||||||
Due after five years through ten years | 112,277 | 113,046 | ||||||||||||||||||||||
Due after ten years | 579,961 | 574,168 | ||||||||||||||||||||||
$ | 776,654 | $ | 771,806 | |||||||||||||||||||||
HTM Securities | ||||||||||||||||||||||||
Due in one year or less | $ | — | $ | — | ||||||||||||||||||||
Due after one year through five years | — | — | ||||||||||||||||||||||
Due after five years through ten years | 2,334 | 2,358 | ||||||||||||||||||||||
Due after ten years | 9,156 | 9,301 | ||||||||||||||||||||||
$ | 11,490 | $ | 11,659 | |||||||||||||||||||||
LOANS_AND_ALLOWANCE_FOR_LOAN_L1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | ' | |||||||||||||||||||||||||||||||
The composition of the Company’s loan portfolio at September 30, 2014 and December 31, 2013 was as follows: | ||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Residential real estate loans | $ | 577,515 | $ | 570,391 | ||||||||||||||||||||||||||||
Commercial real estate loans | 613,510 | 541,099 | ||||||||||||||||||||||||||||||
Commercial loans | 245,612 | 179,203 | ||||||||||||||||||||||||||||||
Home equity loans | 271,858 | 272,630 | ||||||||||||||||||||||||||||||
Consumer loans | 18,149 | 17,651 | ||||||||||||||||||||||||||||||
Deferred loan fees, net of costs | (417 | ) | (572 | ) | ||||||||||||||||||||||||||||
Total loans | $ | 1,726,227 | $ | 1,580,402 | ||||||||||||||||||||||||||||
Summary of Activity in Allowance for Loan Losses | ' | |||||||||||||||||||||||||||||||
The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,141 | $ | 4,361 | $ | 6,484 | $ | 2,752 | $ | 318 | $ | 2,849 | $ | 21,905 | ||||||||||||||||||
Loans charged off | (9 | ) | (100 | ) | (675 | ) | (166 | ) | (59 | ) | — | (1,009 | ) | |||||||||||||||||||
Recoveries | 2 | 17 | 117 | 8 | 11 | — | 155 | |||||||||||||||||||||||||
Provision (reduction) | 122 | 82 | 35 | (63 | ) | 23 | 335 | 534 | ||||||||||||||||||||||||
Ending balance | $ | 5,256 | $ | 4,360 | $ | 5,961 | $ | 2,531 | $ | 293 | $ | 3,184 | $ | 21,585 | ||||||||||||||||||
ALL for the nine months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,603 | $ | 4,374 | $ | 6,220 | $ | 2,403 | $ | 319 | $ | 2,671 | $ | 21,590 | ||||||||||||||||||
Loans charged off | (370 | ) | (276 | ) | (1,201 | ) | (272 | ) | (99 | ) | — | (2,218 | ) | |||||||||||||||||||
Recoveries | 136 | 67 | 286 | 19 | 30 | — | 538 | |||||||||||||||||||||||||
Provision (reduction) | (113 | ) | 195 | 656 | 381 | 43 | 513 | 1,675 | ||||||||||||||||||||||||
Ending balance | $ | 5,256 | $ | 4,360 | $ | 5,961 | $ | 2,531 | $ | 293 | $ | 3,184 | $ | 21,585 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,420 | $ | 222 | $ | 121 | $ | 573 | $ | 111 | $ | — | $ | 2,447 | ||||||||||||||||||
Collectively evaluated for impairment | 3,836 | 4,138 | 5,840 | 1,958 | 182 | 3,184 | 19,138 | |||||||||||||||||||||||||
Total ending ALL | $ | 5,256 | $ | 4,360 | $ | 5,961 | $ | 2,531 | $ | 293 | $ | 3,184 | $ | 21,585 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,964 | $ | 6,710 | $ | 3,380 | $ | 1,860 | $ | 309 | $ | — | $ | 23,223 | ||||||||||||||||||
Collectively evaluated for impairment | 566,134 | 606,800 | 242,232 | 269,998 | 17,840 | — | 1,703,004 | |||||||||||||||||||||||||
Total ending loans balance | $ | 577,098 | $ | 613,510 | $ | 245,612 | $ | 271,858 | $ | 18,149 | $ | — | $ | 1,726,227 | ||||||||||||||||||
The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
Residential | Commercial | Commercial | Home | Consumer | Unallocated | Total | ||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||
ALL for the nine months ended: | ||||||||||||||||||||||||||||||||
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 the activity in the ALL and select loan information by portfolio segment for the year ended December 31, 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 | (1,059 | ) | (952 | ) | (1,426 | ) | (647 | ) | (190 | ) | — | (4,274 | ) | |||||||||||||||||||
Recoveries | 35 | 121 | 495 | 56 | 61 | — | 768 | |||||||||||||||||||||||||
Provision (reduction) | (369 | ) | 656 | 1,218 | 474 | 264 | (191 | ) | 2,052 | |||||||||||||||||||||||
Ending balance | $ | 5,603 | $ | 4,374 | $ | 6,220 | $ | 2,403 | $ | 319 | $ | 2,671 | $ | 21,590 | ||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,750 | $ | 526 | $ | 132 | $ | 433 | $ | 140 | $ | — | $ | 2,981 | ||||||||||||||||||
Collectively evaluated for impairment | 3,853 | 3,848 | 6,088 | 1,970 | 179 | 2,671 | 18,609 | |||||||||||||||||||||||||
Total ending ALL | $ | 5,603 | $ | 4,374 | $ | 6,220 | $ | 2,403 | $ | 319 | $ | 2,671 | $ | 21,590 | ||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,435 | $ | 8,864 | $ | 2,635 | $ | 1,571 | $ | 442 | $ | — | $ | 27,947 | ||||||||||||||||||
Collectively evaluated for impairment | 555,384 | 532,235 | 176,568 | 271,059 | 17,209 | — | 1,552,455 | |||||||||||||||||||||||||
Total ending loans balance | $ | 569,819 | $ | 541,099 | $ | 179,203 | $ | 272,630 | $ | 17,651 | $ | — | $ | 1,580,402 | ||||||||||||||||||
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 | Total | |||||||||||||||||||||||||||
Real Estate | Real Estate | Equity | ||||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 563,276 | $ | 579,266 | $ | 228,019 | $ | — | $ | — | $ | 1,370,561 | ||||||||||||||||||||
Performing | — | — | — | 269,998 | 17,840 | 287,838 | ||||||||||||||||||||||||||
Special Mention (Grade 7) | 3,035 | 3,372 | 8,985 | — | — | 15,392 | ||||||||||||||||||||||||||
Substandard (Grade 8) | 10,787 | 30,872 | 8,608 | — | — | 50,267 | ||||||||||||||||||||||||||
Non-performing | — | — | — | 1,860 | 309 | 2,169 | ||||||||||||||||||||||||||
Total | $ | 577,098 | $ | 613,510 | $ | 245,612 | $ | 271,858 | $ | 18,149 | $ | 1,726,227 | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 551,035 | $ | 496,257 | $ | 155,851 | $ | — | $ | — | $ | 1,203,143 | ||||||||||||||||||||
Performing | — | — | — | 271,059 | 17,210 | 288,269 | ||||||||||||||||||||||||||
Special Mention (Grade 7) | 3,196 | 7,749 | 11,315 | — | — | 22,260 | ||||||||||||||||||||||||||
Substandard (Grade 8) | 15,588 | 37,093 | 12,037 | — | — | 64,718 | ||||||||||||||||||||||||||
Non-performing | — | — | — | 1,571 | 441 | 2,012 | ||||||||||||||||||||||||||
Total | $ | 569,819 | $ | 541,099 | $ | 179,203 | $ | 272,630 | $ | 17,651 | $ | 1,580,402 | ||||||||||||||||||||
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 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, 2014 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 700 | $ | 355 | $ | 5,693 | $ | 6,748 | $ | 570,350 | $ | 577,098 | $ | — | $ | 7,098 | ||||||||||||||||
Commercial real estate | 1,510 | 324 | 3,729 | 5,563 | 607,947 | 613,510 | — | 5,707 | ||||||||||||||||||||||||
Commercial | 2,226 | 45 | 1,420 | 3,691 | 241,921 | 245,612 | — | 3,051 | ||||||||||||||||||||||||
Home equity | 1,805 | 207 | 1,606 | 3,618 | 268,240 | 271,858 | — | 1,860 | ||||||||||||||||||||||||
Consumer | 46 | 27 | 290 | 363 | 17,786 | 18,149 | — | 309 | ||||||||||||||||||||||||
Total | $ | 6,287 | $ | 958 | $ | 12,738 | $ | 19,983 | $ | 1,706,244 | $ | 1,726,227 | $ | — | $ | 18,025 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 3,218 | $ | 684 | $ | 7,269 | $ | 11,171 | $ | 558,648 | $ | 569,819 | $ | — | $ | 10,520 | ||||||||||||||||
Commercial real estate | 926 | 2,036 | 3,301 | 6,263 | 534,836 | 541,099 | 257 | 7,799 | ||||||||||||||||||||||||
Commercial | 159 | 237 | 1,980 | 2,376 | 176,827 | 179,203 | 198 | 2,146 | ||||||||||||||||||||||||
Home equity | 1,395 | 388 | 1,007 | 2,790 | 269,840 | 272,630 | — | 1,571 | ||||||||||||||||||||||||
Consumer | 63 | 21 | 418 | 502 | 17,149 | 17,651 | — | 441 | ||||||||||||||||||||||||
Total | $ | 5,761 | $ | 3,366 | $ | 13,975 | $ | 23,102 | $ | 1,557,300 | $ | 1,580,402 | $ | 455 | $ | 22,477 | ||||||||||||||||
Troubled Debt Restructuring and Specific Reserve Related to TDRs [Table Text Block] | ' | |||||||||||||||||||||||||||||||
The following is a summary of TDRs by portfolio segment and the associated specific reserve included within the ALL as of September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||||||||
Number of Contracts | Current Balance | Specific Reserve | ||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | 30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Residential real estate | 26 | 26 | $ | 4,098 | $ | 4,089 | $ | 667 | $ | 525 | ||||||||||||||||||||||
Commercial real estate | 9 | 10 | 2,141 | 2,558 | 11 | 131 | ||||||||||||||||||||||||||
Commercial | 9 | 7 | 437 | 488 | 13 | — | ||||||||||||||||||||||||||
Home equity and consumer | 1 | 1 | 30 | 1 | — | — | ||||||||||||||||||||||||||
Total | 45 | 44 | $ | 6,706 | $ | 7,136 | $ | 691 | $ | 656 | ||||||||||||||||||||||
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment | ' | |||||||||||||||||||||||||||||||
Number of Contracts | Pre-Modification | Post-Modification | Specific Reserve | |||||||||||||||||||||||||||||
Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
Residential real estate | 2 | $ | 359 | $ | 379 | $ | — | |||||||||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||||||||
Commercial | — | — | — | — | ||||||||||||||||||||||||||||
Home equity and consumer | — | — | — | — | ||||||||||||||||||||||||||||
Total | 2 | $ | 359 | $ | 379 | $ | — | |||||||||||||||||||||||||
Nine months ended | ||||||||||||||||||||||||||||||||
Residential real estate | 4 | $ | 636 | $ | 665 | $ | 5 | |||||||||||||||||||||||||
Commercial real estate | 2 | 279 | 286 | 2 | ||||||||||||||||||||||||||||
Commercial | 3 | 236 | 236 | 1 | ||||||||||||||||||||||||||||
Home equity and consumer | — | — | — | — | ||||||||||||||||||||||||||||
Total | 9 | $ | 1,151 | $ | 1,187 | $ | 8 | |||||||||||||||||||||||||
The following represents loan modifications qualifying as TDRs by portfolio segment and the associated specific reserve included within the ALL for the three and nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Number of Contracts | Pre-Modification | Post-Modification | Specific Reserve | |||||||||||||||||||||||||||||
Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||
Three months ended: | ||||||||||||||||||||||||||||||||
Residential real estate | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||
Commercial real estate | 1 | 235 | 235 | — | ||||||||||||||||||||||||||||
Commercial | 3 | 77 | 77 | 9 | ||||||||||||||||||||||||||||
Home equity and consumer | 1 | 40 | 30 | — | ||||||||||||||||||||||||||||
Total | 5 | $ | 352 | $ | 342 | $ | 9 | |||||||||||||||||||||||||
Nine months ended: | ||||||||||||||||||||||||||||||||
Residential real estate | 1 | $ | 136 | $ | 149 | $ | 44 | |||||||||||||||||||||||||
Commercial real estate | 1 | 235 | 235 | — | ||||||||||||||||||||||||||||
Commercial | 3 | 77 | 77 | 9 | ||||||||||||||||||||||||||||
Home equity and consumer | 1 | 40 | 30 | — | ||||||||||||||||||||||||||||
Total | 6 | $ | 488 | $ | 491 | $ | 53 | |||||||||||||||||||||||||
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 and for the three and nine months ended September 30, 2014: | ||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Balance | Investment | Recognized(1) | Investment | Recognized | ||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 9,441 | $ | 9,441 | $ | 1,420 | $ | 9,236 | $ | 38 | $ | 9,928 | $ | 102 | ||||||||||||||||||
Commercial real estate | 2,987 | 2,987 | 222 | 3,142 | 1 | 5,588 | 2 | |||||||||||||||||||||||||
Commercial | 1,562 | 1,562 | 121 | 2,724 | (2 | ) | 2,653 | 8 | ||||||||||||||||||||||||
Home equity | 1,510 | 1,510 | 573 | 1,486 | — | 1,571 | — | |||||||||||||||||||||||||
Consumer | 292 | 292 | 111 | 333 | — | 392 | — | |||||||||||||||||||||||||
Ending Balance | 15,792 | 15,792 | 2,447 | 16,921 | 37 | 20,132 | 112 | |||||||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | 1,523 | 1,880 | — | 1,751 | 2 | 2,340 | 5 | |||||||||||||||||||||||||
Commercial real estate | 3,723 | 4,116 | — | 3,490 | 14 | 2,230 | 43 | |||||||||||||||||||||||||
Commercial | 1,818 | 2,318 | — | 870 | 6 | 609 | 8 | |||||||||||||||||||||||||
Home equity | 350 | 477 | — | 403 | — | 415 | — | |||||||||||||||||||||||||
Consumer | 17 | 37 | — | 17 | — | 17 | — | |||||||||||||||||||||||||
Ending Balance | 7,431 | 8,828 | — | 6,531 | 22 | 5,611 | 56 | |||||||||||||||||||||||||
Total impaired loans | $ | 23,223 | $ | 24,620 | $ | 2,447 | $ | 23,452 | $ | 59 | $ | 25,743 | $ | 168 | ||||||||||||||||||
(1) Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. | ||||||||||||||||||||||||||||||||
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||
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 an 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 | ||||||||||||||||||
The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the year ended December 31, 2013: | ||||||||||||||||||||||||||||||||
Year Ended | ||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 11,902 | $ | 11,902 | $ | 1,750 | $ | 10,411 | $ | 118 | ||||||||||||||||||||||
Commercial real estate | 6,805 | 6,805 | 526 | 5,517 | 20 | |||||||||||||||||||||||||||
Commercial | 1,876 | 1,876 | 132 | 2,543 | 10 | |||||||||||||||||||||||||||
Home equity | 1,228 | 1,228 | 433 | 1,291 | — | |||||||||||||||||||||||||||
Consumer | 425 | 425 | 140 | 460 | — | |||||||||||||||||||||||||||
Ending Balance | 22,236 | 22,236 | 2,981 | 20,222 | 148 | |||||||||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||||||
Residential real estate | 2,533 | 3,846 | — | 2,925 | 28 | |||||||||||||||||||||||||||
Commercial real estate | 2,059 | 2,782 | — | 3,362 | 55 | |||||||||||||||||||||||||||
Commercial | 759 | 871 | — | 765 | 8 | |||||||||||||||||||||||||||
Home equity | 343 | 479 | — | 334 | — | |||||||||||||||||||||||||||
Consumer | 17 | 37 | — | 11 | — | |||||||||||||||||||||||||||
Ending Balance | 5,711 | 8,015 | — | 7,397 | 91 | |||||||||||||||||||||||||||
Total impaired loans | $ | 27,947 | $ | 30,251 | $ | 2,981 | $ | 27,619 | $ | 239 | ||||||||||||||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSESTS (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Changes in Goodwill | ' | |||||||||||||||||||||||
Goodwill as of September 30, 2014 and December 31, 2013 are shown in the table below: | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Banking | Financial | Total | ||||||||||||||||||||||
Services | ||||||||||||||||||||||||
September 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||
Goodwill, gross | $ | 40,902 | $ | 7,474 | $ | 48,376 | ||||||||||||||||||
Accumulated impairment losses | — | (3,570 | ) | (3,570 | ) | |||||||||||||||||||
Reported goodwill at September 30, 2014 and December 31, 2013 | $ | 40,902 | $ | 3,904 | $ | 44,806 | ||||||||||||||||||
Changes in Core Deposit Intangible and Trust Relationship Intangible | ' | |||||||||||||||||||||||
The changes in core deposit and trust relationship intangible assets for the nine months ended September 30, 2014 are shown in the table below: | ||||||||||||||||||||||||
Core Deposit Intangible | Trust Relationship Intangible | |||||||||||||||||||||||
Total | Accumulated Amortization | Net | Total | Accumulated Amortization | Net | |||||||||||||||||||
Balance at December 31, 2013 | $ | 17,300 | $ | (13,088 | ) | $ | 4,212 | $ | 753 | $ | (452 | ) | $ | 301 | ||||||||||
2014 amortization | — | (805 | ) | (805 | ) | — | (56 | ) | (56 | ) | ||||||||||||||
Balance at September 30, 2014 | $ | 17,300 | $ | (13,893 | ) | $ | 3,407 | $ | 753 | $ | (508 | ) | $ | 245 | ||||||||||
Expected Amortization Schedule for Intangible Assets | ' | |||||||||||||||||||||||
The following table reflects the expected amortization of core deposit and trust relationship intangible assets over their respective estimated remaining useful lives as of September 30, 2014: | ||||||||||||||||||||||||
Core Deposit | Trust | |||||||||||||||||||||||
Intangible | Relationship | |||||||||||||||||||||||
Intangible | ||||||||||||||||||||||||
2014 | $ | 268 | $ | 19 | ||||||||||||||||||||
2015 | 1,073 | 75 | ||||||||||||||||||||||
2016 | 1,073 | 75 | ||||||||||||||||||||||
2017 | 993 | 76 | ||||||||||||||||||||||
Total | $ | 3,407 | $ | 245 | ||||||||||||||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Components of Net Period Benefit Cost | ' | ||||||||||||||||
The components of net period benefit cost for the periods ended September 30, 2014 and 2013 were as follows: | |||||||||||||||||
Supplemental Executive Retirement Plan: | |||||||||||||||||
Three Months Ended | Nine Months Ended September 30, | ||||||||||||||||
September 30, | |||||||||||||||||
Net period benefit cost | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 67 | $ | 82 | $ | 201 | $ | 246 | |||||||||
Interest cost | 114 | 94 | 342 | 282 | |||||||||||||
Recognized net actuarial loss | 35 | 56 | 105 | 168 | |||||||||||||
Recognized prior service cost | 5 | 5 | 15 | 15 | |||||||||||||
Net period benefit cost(1) | $ | 221 | $ | 237 | $ | 663 | $ | 711 | |||||||||
(1) Presented within the consolidated statements of income within salaries and employee benefits. | |||||||||||||||||
Other Postretirement Benefit Plan: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Net period benefit cost | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Service cost | $ | 11 | $ | 19 | $ | 33 | $ | 57 | |||||||||
Interest cost | 33 | 35 | 99 | 105 | |||||||||||||
Recognized net actuarial loss | 2 | 11 | 6 | 33 | |||||||||||||
Recognized prior service credit | (5 | ) | — | (15 | ) | — | |||||||||||
Net period benefit cost(1) | $ | 41 | $ | 65 | $ | 123 | $ | 195 | |||||||||
(1) Presented within the consolidated statements of income within salaries and employee benefits. |
FAIR_VALUE_MEASUREMENT_Tables
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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, 2014 and December 31, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: | ||||||||||||||||||||
Fair | Readily | Observable | Company | |||||||||||||||||
Value | Available | Market | Determined | |||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
AFS securities: | ||||||||||||||||||||
Obligations of U.S. government-sponsored enterprises | $ | 4,982 | $ | — | $ | 4,982 | $ | — | ||||||||||||
Obligations of states and political subdivisions | 28,046 | — | 28,046 | — | ||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 378,204 | — | 378,204 | — | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 354,313 | — | 354,313 | — | ||||||||||||||||
Private issue collateralized mortgage obligations | 6,261 | — | 6,261 | — | ||||||||||||||||
Trading account assets | 2,418 | 2,418 | — | — | ||||||||||||||||
Customer interest rate swap agreements | 506 | — | 506 | — | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | 6,969 | — | 6,969 | — | ||||||||||||||||
Customer interest rate swap agreements | 506 | — | 506 | — | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||
AFS securities: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 31,207 | $ | — | $ | 31,207 | $ | — | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 395,903 | — | 395,903 | — | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 374,435 | — | 374,435 | — | ||||||||||||||||
Private issue collateralized mortgage obligations | 6,932 | — | 6,932 | — | ||||||||||||||||
Trading account assets | 2,488 | 2,488 | — | — | ||||||||||||||||
Customer interest rate swap agreements | 114 | — | 114 | — | ||||||||||||||||
Financial Liabilities: | ||||||||||||||||||||
Interest rate swap agreements | 3,911 | — | 3,911 | — | ||||||||||||||||
Customer interest rate swap agreements | 114 | — | 114 | — | ||||||||||||||||
Summary of Assets Measured at Fair Value on Non Recurring Basis | ' | |||||||||||||||||||
The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis as of September 30, 2014 and December 31, 2013. Not included in the table below because they are not recorded at fair value at September 30, 2014 and December 31, 2013 are: (i) impaired loans of $20.2 million and $19.4 million, respectively; (ii) MSRs reported of $359,000 and $322,000, respectively; and (iii) OREO properties of $305,000 and $612,000, respectively. | ||||||||||||||||||||
Fair | Readily | Observable | Company | |||||||||||||||||
Value | Available | Market | Determined | |||||||||||||||||
Market | Data | Fair Value | ||||||||||||||||||
Prices | (Level 2) | (Level 3) | ||||||||||||||||||
(Level 1) | ||||||||||||||||||||
30-Sep-14 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Collateral-dependent impaired loans | $ | 3,022 | $ | — | $ | — | $ | 3,022 | ||||||||||||
MSRs(1) | 179 | — | 179 | — | ||||||||||||||||
Non-financial assets: | ||||||||||||||||||||
OREO | 1,261 | — | — | 1,261 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Collateral-dependent impaired loans | $ | 8,557 | $ | — | $ | — | $ | 8,557 | ||||||||||||
MSRs(1) | 404 | — | 404 | — | ||||||||||||||||
Non-financial assets: | ||||||||||||||||||||
OREO | 1,583 | — | — | 1,583 | ||||||||||||||||
Goodwill - financial services reporting unit | 3,904 | — | — | 3,904 | ||||||||||||||||
(1) Represents MSRs deemed to be impaired and a valuation allowance established to carry at fair value. | ||||||||||||||||||||
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, 2014 and December 31, 2013: | ||||||||||||||||||||
Fair Value | Valuation Methodology | Unobservable input | Discount Range | |||||||||||||||||
(Weighted-Average) | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Collateral-dependent impaired loans: | ||||||||||||||||||||
Partially charged-off | $ | 808 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 46% | -8% | ||||||||||||||
Specifically reserved(1) | 2,214 | Market approach appraisal of collateral | Management adjustment of appraisal | 10 - 69% | -37% | |||||||||||||||
OREO | 1,261 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 41% | -18% | |||||||||||||||
Estimated selling cost | 6 - 10% | -9% | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Collateral-dependent impaired loans: | ||||||||||||||||||||
Partially charged-off | $ | 1,874 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 85% | -14% | ||||||||||||||
Specifically reserved(1) | 6,683 | Market approach appraisal of collateral | Management adjustment of appraisal | 7 - 90% | -22% | |||||||||||||||
OREO | 1,583 | Market approach appraisal of collateral | Management adjustment of appraisal | 0 - 41% | -16% | |||||||||||||||
Estimated selling cost | 6 - 10% | -10% | ||||||||||||||||||
Goodwill | 3,904 | Discounted cash flow | Revenue growth rate | 5.00% | — | |||||||||||||||
Margin percentage | 8.30% | — | ||||||||||||||||||
Discount rate | 16.50% | — | ||||||||||||||||||
Fair value weighting | 50.00% | — | ||||||||||||||||||
Market approach | Fair value weighting | 50.00% | — | |||||||||||||||||
(1) The specific reserve for collateral-dependent impaired loans is determined by any loan-to-value ratio in excess of 80% for consumer loans and any loan-to-value ratio in excess of 75% for commercial loans. Appraisals are received on impaired loans in accordance with the Company's internal policy. As such, adjustments to the appraised fair value are made, as necessary, should the appraisal not be current. Adjustments are made to the appraised fair value to reflect changes in known factors, including, but not limited to, property condition, property location, and costs to sell the collateral. | ||||||||||||||||||||
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, 2014: | ||||||||||||||||||||
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 | $ | 59,450 | $ | 59,450 | $ | 59,450 | $ | — | $ | — | ||||||||||
AFS securities | 771,806 | 771,806 | — | 771,806 | — | |||||||||||||||
HTM securities | 11,490 | 11,659 | — | 11,659 | — | |||||||||||||||
FHLB and FRB stock | 20,379 | 20,379 | 20,379 | — | — | |||||||||||||||
Trading account assets | 2,418 | 2,418 | 2,418 | — | — | |||||||||||||||
Residential real estate loans | 570,933 | 580,261 | — | — | 580,261 | |||||||||||||||
Commercial real estate loans | 608,396 | 604,195 | — | — | 604,195 | |||||||||||||||
Commercial loans | 238,619 | 235,131 | — | — | 235,131 | |||||||||||||||
Home equity loans | 268,889 | 270,112 | — | — | 270,112 | |||||||||||||||
Consumer loans | 17,805 | 18,005 | — | — | 18,005 | |||||||||||||||
MSRs(1) | 538 | 1,526 | — | 1,526 | — | |||||||||||||||
Interest receivable | 6,162 | 6,162 | — | 6,162 | — | |||||||||||||||
Investments in CCTA and UBCT | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 506 | 506 | — | 506 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,928,543 | $ | 1,930,182 | $ | 1,389,977 | $ | 540,205 | $ | — | ||||||||||
FHLB advances | 56,058 | 58,244 | — | 58,244 | — | |||||||||||||||
Commercial repurchase agreements | 30,109 | 31,591 | — | 31,591 | — | |||||||||||||||
Other borrowed funds | 411,062 | 411,125 | 411,125 | — | — | |||||||||||||||
Junior subordinated debentures | 43,998 | 43,998 | — | 43,998 | — | |||||||||||||||
Interest payable | 510 | 510 | 510 | — | — | |||||||||||||||
Interest rate swap agreements | 6,969 | 6,969 | — | 6,969 | — | |||||||||||||||
Customer interest rate swap agreements | 506 | 506 | — | 506 | — | |||||||||||||||
(1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. | ||||||||||||||||||||
The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 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 | $ | 51,355 | $ | 51,355 | $ | 51,355 | $ | — | $ | — | ||||||||||
AFS securities | 808,477 | 808,477 | — | 808,477 | — | |||||||||||||||
FHLB and FRB stock | 19,724 | 19,724 | 19,724 | — | — | |||||||||||||||
Trading account assets | 2,488 | 2,488 | 2,488 | — | — | |||||||||||||||
Residential real estate loans | 563,425 | 577,153 | — | — | 577,153 | |||||||||||||||
Commercial real estate loans | 536,107 | 535,961 | — | — | 535,961 | |||||||||||||||
Commercial loans | 172,105 | 171,432 | — | — | 171,432 | |||||||||||||||
Home equity loans | 269,888 | 271,041 | — | — | 271,041 | |||||||||||||||
Consumer loans | 17,287 | 17,662 | — | — | 17,662 | |||||||||||||||
MSRs(1) | 726 | 1,494 | — | 1,494 | — | |||||||||||||||
Interest receivable | 5,808 | 5,808 | — | 5,808 | — | |||||||||||||||
Investments in CCTA and UBCT | 1,331 | 1,331 | — | — | 1,331 | |||||||||||||||
Customer interest rate swap agreements | 114 | 114 | — | 114 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 1,813,824 | $ | 1,817,199 | $ | 1,324,221 | $ | 492,978 | $ | — | ||||||||||
FHLB advances | 56,112 | 59,118 | — | 59,118 | — | |||||||||||||||
Commercial repurchase agreements | 30,142 | 32,038 | — | 32,038 | — | |||||||||||||||
Other borrowed funds | 399,916 | 400,144 | 400,144 | — | — | |||||||||||||||
Junior subordinated debentures | 43,922 | 43,922 | — | 43,922 | — | |||||||||||||||
Interest payable | 567 | 567 | 567 | — | — | |||||||||||||||
Interest rate swap agreements | 3,911 | 3,911 | — | 3,911 | — | |||||||||||||||
Customer interest rate swap agreements | 114 | 114 | — | 114 | — | |||||||||||||||
(1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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, | |||||||
2014 | 2013 | |||||||
Lending-Related Instruments: | ||||||||
Loan origination commitments and unadvanced lines of credit: | ||||||||
Home equity | $ | 309,641 | $ | 276,671 | ||||
Commercial and commercial real estate | 52,040 | 26,688 | ||||||
Residential | 15,638 | 6,408 | ||||||
Letters of credit | 3,762 | 1,789 | ||||||
Other commitments | 743 | 437 | ||||||
Derivative Financial Instruments: | ||||||||
Interest rate swaps | 43,000 | 43,000 | ||||||
Customer loan swaps | 30,607 | 15,702 | ||||||
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ||||
Net income | $6,451 | $6,366 | $18,482 | $18,359 | ||||
Dividends and undistributed earnings allocated to participating securities | -20 | [1] | -20 | [1] | -57 | [1] | -50 | [1] |
Net income available to common shareholders | $6,431 | $6,346 | $18,425 | $18,309 | ||||
Weighted-average common shares outstanding for basic EPS | 7,421,592 | 7,643,720 | 7,459,972 | 7,636,352 | ||||
Dilutive effect of stock-based awards (shares) | 18,356 | [2] | 22,585 | [2] | 19,355 | [2] | 15,518 | [2] |
Weighted-average common and potential common shares for diluted EPS (shares) | 7,439,948 | 7,666,305 | 7,479,327 | 7,651,870 | ||||
Basic EPS (in dollars per share) | $0.87 | $0.83 | $2.47 | $2.40 | ||||
Diluted EPS (in dollars per share) | $0.86 | $0.83 | $2.46 | $2.39 | ||||
Employee Stock Option | ' | ' | ' | ' | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ||||
Stock options (shares) | 30,750 | [3] | 14,250 | [3] | 14,750 | [3] | 31,000 | [3] |
[1] | Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. | |||||||
[2] | Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method. | |||||||
[3] | Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock. |
SECURITIES_Summary_of_Amortize
SECURITIES (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | $776,654 | $820,728 |
Available-for-sale, Unrealized Gains | 6,879 | 7,525 |
Available-for-sale, Unrealized Losses | -11,727 | -19,776 |
Available-for-sale, Fair Value | 771,806 | 808,477 |
Held-to-maturity securities, at amortized cost | 11,490 | 0 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 210 | ' |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | -41 | ' |
Held-to-maturity Securities, Fair Value | 11,659 | ' |
US Government-sponsored Enterprises Debt Securities | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 4,960 | ' |
Available-for-sale, Unrealized Gains | 22 | ' |
Available-for-sale, Unrealized Losses | 0 | ' |
Available-for-sale, Fair Value | 4,982 | ' |
Obligations of states and political subdivisions | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 27,240 | 30,143 |
Available-for-sale, Unrealized Gains | 806 | 1,075 |
Available-for-sale, Unrealized Losses | 0 | -11 |
Available-for-sale, Fair Value | 28,046 | 31,207 |
Held-to-maturity securities, at amortized cost | 11,490 | ' |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 210 | ' |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | -41 | ' |
Held-to-maturity Securities, Fair Value | 11,659 | ' |
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 377,375 | 397,409 |
Available-for-sale, Unrealized Gains | 5,108 | 5,528 |
Available-for-sale, Unrealized Losses | -4,279 | -7,034 |
Available-for-sale, Fair Value | 378,204 | 395,903 |
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 360,830 | 385,847 |
Available-for-sale, Unrealized Gains | 867 | 912 |
Available-for-sale, Unrealized Losses | -7,384 | -12,324 |
Available-for-sale, Fair Value | 354,313 | 374,435 |
Private issue collateralized mortgage obligations | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Available-for-sale, Amortized Cost | 6,249 | 7,329 |
Available-for-sale, Unrealized Gains | 76 | 10 |
Available-for-sale, Unrealized Losses | -64 | -407 |
Available-for-sale, Fair Value | $6,261 | $6,932 |
SECURITIES_Schedule_of_Unreali
SECURITIES (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | $146,417 | $386,967 |
Unrealized Losses - Less Than 12 Months | -917 | -11,942 |
Fair Value - 12 Months of More | 322,592 | 122,236 |
Unrealized Losses - 12 Months or More | -10,810 | -7,834 |
Fair Value | 469,009 | 509,203 |
Unrealized losses | -11,727 | -19,776 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,401 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -41 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 3,401 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | -41 | ' |
US Government-sponsored Enterprises Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | 61,223 | 145,424 |
Unrealized Losses - Less Than 12 Months | -460 | -4,189 |
Fair Value - 12 Months of More | 127,219 | 43,915 |
Unrealized Losses - 12 Months or More | -3,819 | -2,845 |
Fair Value | 188,442 | 189,339 |
Unrealized losses | -4,279 | -7,034 |
Collateralized mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | 80,475 | 239,278 |
Unrealized Losses - Less Than 12 Months | -393 | -7,738 |
Fair Value - 12 Months of More | 195,373 | 73,376 |
Unrealized Losses - 12 Months or More | -6,991 | -4,586 |
Fair Value | 275,848 | 312,654 |
Unrealized losses | -7,384 | -12,324 |
Obligations of states and political subdivisions | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | ' | 2,143 |
Unrealized Losses - Less Than 12 Months | ' | -11 |
Fair Value - 12 Months of More | ' | 0 |
Unrealized Losses - 12 Months or More | ' | 0 |
Fair Value | ' | 2,143 |
Unrealized losses | ' | -11 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,401 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | -41 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 3,401 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | -41 | ' |
Private issue collateralized mortgage obligations | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value - Less Than 12 Months | 4,719 | 122 |
Unrealized Losses - Less Than 12 Months | -64 | -4 |
Fair Value - 12 Months of More | 0 | 4,945 |
Unrealized Losses - 12 Months or More | 0 | -403 |
Fair Value | 4,719 | 5,067 |
Unrealized losses | ($64) | ($407) |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $0 | $12,738 | $25,695 | $17,613 |
Available-for-sale Securities, Gross Realized Gains | 0 | 647 | 451 | 785 |
Gross realized (losses) | $0 | $0 | $0 | $0 |
SECURITIES_Schedule_of_Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale, Amortized Cost | ' | ' |
Due in one year or less | $2,186 | ' |
Due after one year through five years | 82,230 | ' |
Due after five years through ten years | 112,277 | ' |
Due after ten years | 579,961 | ' |
Amortized cost, total | 776,654 | ' |
Available-for-sale, Fair Value | ' | ' |
Due in one year or less | 2,209 | ' |
Due after one year through five years | 82,383 | ' |
Due after five years through ten years | 113,046 | ' |
Due after ten years | 574,168 | ' |
Fair value, total | 771,806 | ' |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | ' | ' |
Due in one year or less | 0 | ' |
Due after one year through five years | 0 | ' |
Due after five years through ten years | 2,334 | ' |
Due after ten years | 9,156 | ' |
Held-to-maturity securities, at amortized cost | 11,490 | 0 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | ' | ' |
Due in one year or less | 0 | ' |
Due after one year through five years | 0 | ' |
Due after five years through ten years | 2,358 | ' |
Due after ten years | 9,301 | ' |
Held-to-maturity Securities, Fair Value | $11,659 | ' |
SECURITIES_Narrative_Detail
SECURITIES (Narrative) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
security | security | ||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Net unrealized losses on available-for-sale securities, net of tax | $3,151,000 | ' | $3,151,000 | ' | $7,964,000 |
Deferred tax assets, unrealized losses on available for sale securities | 1,700,000 | ' | 1,700,000 | ' | 4,300,000 |
Payments to Acquire Investments | ' | ' | 74,100,000 | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 83 | ' | 83 | ' | ' |
AFS and HTM securities in Continues Unrealized Loss Position | 472,400,000 | ' | 472,400,000 | ' | ' |
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 11,800,000 | ' | 11,800,000 | ' | ' |
Fair Value - 12 Months of More | 322,592,000 | ' | 322,592,000 | ' | 122,236,000 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | ' | ' | 0 | ' | ' |
Carrying amount of investment securities sold | ' | 12,100,000 | 25,200,000 | 16,800,000 | ' |
Gain (Loss) on Investments | 0 | 647,000 | 451,000 | 785,000 | ' |
Security pledged as collateral, amortized cost | 480,500,000 | ' | 480,500,000 | ' | 479,200,000 |
Security pledged as collateral, fair value | 478,900,000 | ' | 478,900,000 | ' | 474,700,000 |
Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 49 | ' | 49 | ' | ' |
Fair Value - 12 Months of More | 322,592,000 | ' | 322,592,000 | ' | ' |
Private issue collateralized mortgage obligations | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | ' | 0 | ' | ' |
Fair Value - 12 Months of More | 0 | ' | 0 | ' | 4,945,000 |
Available-for-sale Securities | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Payments to Acquire Investments | ' | ' | 62,500,000 | ' | ' |
Held-to-maturity Securities | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' |
Payments to Acquire Investments | ' | ' | $11,600,000 | ' | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Deferred loan fees, net of costs | ($417) | ($572) | ' |
Loans | 1,726,227 | 1,580,402 | 1,589,946 |
Residential real estate loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 577,515 | 570,391 | ' |
Loans | 577,098 | 569,819 | 564,552 |
Commercial real estate loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 613,510 | 541,099 | ' |
Loans | 613,510 | 541,099 | 522,610 |
Commercial loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 245,612 | 179,203 | ' |
Loans | 245,612 | 179,203 | 177,855 |
Home equity loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 271,858 | 272,630 | ' |
Loans | 271,858 | 272,630 | 306,303 |
Consumer loans | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Gross loans | 18,149 | 17,651 | ' |
Loans | $18,149 | $17,651 | $18,626 |
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 | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | $21,905,000 | $23,321,000 | $21,590,000 | $23,044,000 | $23,044,000 |
Loans charged off | -1,009,000 | -1,438,000 | -2,218,000 | -2,870,000 | -4,274,000 |
Recoveries | 155,000 | 111,000 | 538,000 | 436,000 | 768,000 |
Provision for Loan and Lease Losses | 534,000 | 667,000 | 1,675,000 | 2,051,000 | 2,052,000 |
Ending balance | 21,585,000 | 22,661,000 | 21,585,000 | 22,661,000 | 21,590,000 |
Ending Balance: Individually evaluated for impairment | 2,447,000 | 3,048,000 | 2,447,000 | 3,048,000 | 2,981,000 |
Ending Balance: Collectively evaluated for impairment | 19,138,000 | 19,613,000 | 19,138,000 | 19,613,000 | 18,609,000 |
Ending Balance: Individually evaluated for impairment | 23,223,000 | 30,463,000 | 23,223,000 | 30,463,000 | 27,947,000 |
Ending Balance: Collectively evaluated for impairment | 1,703,004,000 | 1,559,483,000 | 1,703,004,000 | 1,559,483,000 | 1,552,455,000 |
Total Loans Outstanding | 1,726,227,000 | 1,589,946,000 | 1,726,227,000 | 1,589,946,000 | 1,580,402,000 |
Residential real estate loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 5,141,000 | 6,232,000 | 5,603,000 | 6,996,000 | 6,996,000 |
Loans charged off | -9,000 | -340,000 | -370,000 | -687,000 | -1,059,000 |
Recoveries | 2,000 | 0 | 136,000 | 5,000 | 35,000 |
Provision for Loan and Lease Losses | 122,000 | 709,000 | -113,000 | 287,000 | -369,000 |
Ending balance | 5,256,000 | 6,601,000 | 5,256,000 | 6,601,000 | 5,603,000 |
Ending Balance: Individually evaluated for impairment | 1,420,000 | 1,655,000 | 1,420,000 | 1,655,000 | 1,750,000 |
Ending Balance: Collectively evaluated for impairment | 3,836,000 | 4,946,000 | 3,836,000 | 4,946,000 | 3,853,000 |
Ending Balance: Individually evaluated for impairment | 10,964,000 | 14,059,000 | 10,964,000 | 14,059,000 | 14,435,000 |
Ending Balance: Collectively evaluated for impairment | 566,134,000 | 550,493,000 | 566,134,000 | 550,493,000 | 555,384,000 |
Total Loans Outstanding | 577,098,000 | 564,552,000 | 577,098,000 | 564,552,000 | 569,819,000 |
Commercial real estate loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 4,361,000 | 3,590,000 | 4,374,000 | 4,549,000 | 4,549,000 |
Loans charged off | -100,000 | -591,000 | -276,000 | -762,000 | -952,000 |
Recoveries | 17,000 | 14,000 | 67,000 | 106,000 | 121,000 |
Provision for Loan and Lease Losses | 82,000 | 547,000 | 195,000 | -333,000 | 656,000 |
Ending balance | 4,360,000 | 3,560,000 | 4,360,000 | 3,560,000 | 4,374,000 |
Ending Balance: Individually evaluated for impairment | 222,000 | 686,000 | 222,000 | 686,000 | 526,000 |
Ending Balance: Collectively evaluated for impairment | 4,138,000 | 2,874,000 | 4,138,000 | 2,874,000 | 3,848,000 |
Ending Balance: Individually evaluated for impairment | 6,710,000 | 11,016,000 | 6,710,000 | 11,016,000 | 8,864,000 |
Ending Balance: Collectively evaluated for impairment | 606,800,000 | 511,594,000 | 606,800,000 | 511,594,000 | 532,235,000 |
Total Loans Outstanding | 613,510,000 | 522,610,000 | 613,510,000 | 522,610,000 | 541,099,000 |
Commercial loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 6,484,000 | 5,788,000 | 6,220,000 | 5,933,000 | 5,933,000 |
Loans charged off | -675,000 | -379,000 | -1,201,000 | -823,000 | -1,426,000 |
Recoveries | 117,000 | 77,000 | 286,000 | 275,000 | 495,000 |
Provision for Loan and Lease Losses | 35,000 | 465,000 | 656,000 | 566,000 | 1,218,000 |
Ending balance | 5,961,000 | 5,951,000 | 5,961,000 | 5,951,000 | 6,220,000 |
Ending Balance: Individually evaluated for impairment | 121,000 | 177,000 | 121,000 | 177,000 | 132,000 |
Ending Balance: Collectively evaluated for impairment | 5,840,000 | 5,774,000 | 5,840,000 | 5,774,000 | 6,088,000 |
Ending Balance: Individually evaluated for impairment | 3,380,000 | 3,369,000 | 3,380,000 | 3,369,000 | 2,635,000 |
Ending Balance: Collectively evaluated for impairment | 242,232,000 | 174,486,000 | 242,232,000 | 174,486,000 | 176,568,000 |
Total Loans Outstanding | 245,612,000 | 177,855,000 | 245,612,000 | 177,855,000 | 179,203,000 |
Home equity loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 2,752,000 | 3,428,000 | 2,403,000 | 2,520,000 | 2,520,000 |
Loans charged off | -166,000 | -86,000 | -272,000 | -423,000 | -647,000 |
Recoveries | 8,000 | 8,000 | 19,000 | 10,000 | 56,000 |
Provision for Loan and Lease Losses | -63,000 | 137,000 | 381,000 | 1,380,000 | 474,000 |
Ending balance | 2,531,000 | 3,487,000 | 2,531,000 | 3,487,000 | 2,403,000 |
Ending Balance: Individually evaluated for impairment | 573,000 | 449,000 | 573,000 | 449,000 | 433,000 |
Ending Balance: Collectively evaluated for impairment | 1,958,000 | 3,038,000 | 1,958,000 | 3,038,000 | 1,970,000 |
Ending Balance: Individually evaluated for impairment | 1,860,000 | 1,521,000 | 1,860,000 | 1,521,000 | 1,571,000 |
Ending Balance: Collectively evaluated for impairment | 269,998,000 | 304,782,000 | 269,998,000 | 304,782,000 | 271,059,000 |
Total Loans Outstanding | 271,858,000 | 306,303,000 | 271,858,000 | 306,303,000 | 272,630,000 |
Consumer loans | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 318,000 | 221,000 | 319,000 | 184,000 | 184,000 |
Loans charged off | -59,000 | -42,000 | -99,000 | -175,000 | -190,000 |
Recoveries | 11,000 | 12,000 | 30,000 | 40,000 | 61,000 |
Provision for Loan and Lease Losses | 23,000 | 40,000 | 43,000 | 182,000 | 264,000 |
Ending balance | 293,000 | 231,000 | 293,000 | 231,000 | 319,000 |
Ending Balance: Individually evaluated for impairment | 111,000 | 81,000 | 111,000 | 81,000 | 140,000 |
Ending Balance: Collectively evaluated for impairment | 182,000 | 150,000 | 182,000 | 150,000 | 179,000 |
Ending Balance: Individually evaluated for impairment | 309,000 | 498,000 | 309,000 | 498,000 | 442,000 |
Ending Balance: Collectively evaluated for impairment | 17,840,000 | 18,128,000 | 17,840,000 | 18,128,000 | 17,209,000 |
Total Loans Outstanding | 18,149,000 | 18,626,000 | 18,149,000 | 18,626,000 | 17,651,000 |
Unallocated | ' | ' | ' | ' | ' |
Activity in ALL: | ' | ' | ' | ' | ' |
Beginning balance | 2,849,000 | 4,062,000 | 2,671,000 | 2,862,000 | 2,862,000 |
Loans charged off | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision for Loan and Lease Losses | 335,000 | -1,231,000 | 513,000 | -31,000 | -191,000 |
Ending balance | 3,184,000 | 2,831,000 | 3,184,000 | 2,831,000 | 2,671,000 |
Ending Balance: Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Ending Balance: Collectively evaluated for impairment | 3,184,000 | 2,831,000 | 3,184,000 | 2,831,000 | 2,671,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending Balance: Collectively evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Total Loans Outstanding | ' | ' | ' | ' | ' |
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, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | $1,726,227 | $1,580,402 | $1,589,946 |
Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 1,370,561 | 1,203,143 | ' |
Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 287,838 | 288,269 | ' |
Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 15,392 | 22,260 | ' |
Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 50,267 | 64,718 | ' |
Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 2,169 | 2,012 | ' |
Residential real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 577,098 | 569,819 | 564,552 |
Residential real estate loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 563,276 | 551,035 | ' |
Residential real estate loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Residential real estate loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 3,035 | 3,196 | ' |
Residential real estate loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 10,787 | 15,588 | ' |
Residential real estate loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Commercial real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 613,510 | 541,099 | 522,610 |
Commercial real estate loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 579,266 | 496,257 | ' |
Commercial real estate loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Commercial real estate loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 3,372 | 7,749 | ' |
Commercial real estate loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 30,872 | 37,093 | ' |
Commercial real estate loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Commercial loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 245,612 | 179,203 | 177,855 |
Commercial loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 228,019 | 155,851 | ' |
Commercial loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Commercial loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 8,985 | 11,315 | ' |
Commercial loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 8,608 | 12,037 | ' |
Commercial loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Home equity loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 271,858 | 272,630 | 306,303 |
Home equity loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Home equity loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 269,998 | 271,059 | ' |
Home equity loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Home equity loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Home equity loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 1,860 | 1,571 | ' |
Consumer loans | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 18,149 | 17,651 | 18,626 |
Consumer loans | Pass (Grades 1-6) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Consumer loans | Performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 17,840 | 17,210 | ' |
Consumer loans | Special Mention (Grade 7) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Consumer loans | Substandard (Grade 8) | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | 0 | 0 | ' |
Consumer loans | Non-performing | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Loans | $309 | $441 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Aging Analysis by Portfolio Segment) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | $6,287 | $5,761 | ' |
60-89 Days Past Due | 958 | 3,366 | ' |
Greater than 90 Days | 12,738 | 13,975 | ' |
Total Past Due | 19,983 | 23,102 | ' |
Current | 1,706,244 | 1,557,300 | ' |
Total Loans Outstanding | 1,726,227 | 1,580,402 | 1,589,946 |
Loans 90 Days Past Due and Accruing | ' | 455 | ' |
Non-Accrual Loans | 18,025 | 22,477 | ' |
Residential real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 700 | 3,218 | ' |
60-89 Days Past Due | 355 | 684 | ' |
Greater than 90 Days | 5,693 | 7,269 | ' |
Total Past Due | 6,748 | 11,171 | ' |
Current | 570,350 | 558,648 | ' |
Total Loans Outstanding | 577,098 | 569,819 | 564,552 |
Loans 90 Days Past Due and Accruing | ' | 0 | ' |
Non-Accrual Loans | 7,098 | 10,520 | ' |
Commercial real estate loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 1,510 | 926 | ' |
60-89 Days Past Due | 324 | 2,036 | ' |
Greater than 90 Days | 3,729 | 3,301 | ' |
Total Past Due | 5,563 | 6,263 | ' |
Current | 607,947 | 534,836 | ' |
Total Loans Outstanding | 613,510 | 541,099 | 522,610 |
Loans 90 Days Past Due and Accruing | ' | 257 | ' |
Non-Accrual Loans | 5,707 | 7,799 | ' |
Commercial loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 2,226 | 159 | ' |
60-89 Days Past Due | 45 | 237 | ' |
Greater than 90 Days | 1,420 | 1,980 | ' |
Total Past Due | 3,691 | 2,376 | ' |
Current | 241,921 | 176,827 | ' |
Total Loans Outstanding | 245,612 | 179,203 | 177,855 |
Loans 90 Days Past Due and Accruing | ' | 198 | ' |
Non-Accrual Loans | 3,051 | 2,146 | ' |
Home equity loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 1,805 | 1,395 | ' |
60-89 Days Past Due | 207 | 388 | ' |
Greater than 90 Days | 1,606 | 1,007 | ' |
Total Past Due | 3,618 | 2,790 | ' |
Current | 268,240 | 269,840 | ' |
Total Loans Outstanding | 271,858 | 272,630 | 306,303 |
Loans 90 Days Past Due and Accruing | ' | 0 | ' |
Non-Accrual Loans | 1,860 | 1,571 | ' |
Consumer loans | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 46 | 63 | ' |
60-89 Days Past Due | 27 | 21 | ' |
Greater than 90 Days | 290 | 418 | ' |
Total Past Due | 363 | 502 | ' |
Current | 17,786 | 17,149 | ' |
Total Loans Outstanding | 18,149 | 17,651 | 18,626 |
Loans 90 Days Past Due and Accruing | ' | 0 | ' |
Non-Accrual Loans | $309 | $441 | ' |
LOANS_AND_ALLOWANCE_FOR_LOAN_L6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of All Troubled Debt Restructuring Loans) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
loan | loan | loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable Modifications, Number Of Contracts Outstanding | 45 | ' | 45 | ' | 44 |
Financing Receivable, Modifications, Recorded Investment | $6,706 | ' | $6,706 | ' | $7,136 |
Allowance For Credit Losses Related To Troubled Debt Restructured Loans | 691 | ' | 691 | ' | 656 |
Number of Contracts | 5 | 2 | 6 | 9 | ' |
Pre-Modification Outstanding Recorded Investment | 352 | 359 | 488 | 1,151 | ' |
Post-Modification Outstanding Recorded Investment | 342 | 379 | 491 | 1,187 | ' |
Specific Reserve | 9 | 0 | 53 | 8 | ' |
Residential real estate loans | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable Modifications, Number Of Contracts Outstanding | 26 | ' | 26 | ' | 26 |
Financing Receivable, Modifications, Recorded Investment | 4,098 | ' | 4,098 | ' | 4,089 |
Allowance For Credit Losses Related To Troubled Debt Restructured Loans | 667 | ' | 667 | ' | 525 |
Number of Contracts | 0 | 2 | 1 | 4 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 359 | 136 | 636 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 379 | 149 | 665 | ' |
Specific Reserve | 0 | 0 | 44 | 5 | ' |
Commercial real estate loans | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable Modifications, Number Of Contracts Outstanding | 9 | ' | 9 | ' | 10 |
Financing Receivable, Modifications, Recorded Investment | 2,141 | ' | 2,141 | ' | 2,558 |
Allowance For Credit Losses Related To Troubled Debt Restructured Loans | 11 | ' | 11 | ' | 131 |
Number of Contracts | 1 | 0 | 1 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | 235 | 0 | 235 | 279 | ' |
Post-Modification Outstanding Recorded Investment | 235 | 0 | 235 | 286 | ' |
Specific Reserve | 0 | 0 | 0 | 2 | ' |
Commercial loans | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable Modifications, Number Of Contracts Outstanding | 9 | ' | 9 | ' | 7 |
Financing Receivable, Modifications, Recorded Investment | 437 | ' | 437 | ' | 488 |
Allowance For Credit Losses Related To Troubled Debt Restructured Loans | 13 | ' | 13 | ' | 0 |
Number of Contracts | 3 | 0 | 3 | 3 | ' |
Pre-Modification Outstanding Recorded Investment | 77 | 0 | 77 | 236 | ' |
Post-Modification Outstanding Recorded Investment | 77 | 0 | 77 | 236 | ' |
Specific Reserve | 9 | 0 | 9 | 1 | ' |
Consumer loans | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable Modifications, Number Of Contracts Outstanding | 1 | ' | 1 | ' | 1 |
Financing Receivable, Modifications, Recorded Investment | 30 | ' | 30 | ' | 1 |
Allowance For Credit Losses Related To Troubled Debt Restructured Loans | 0 | ' | 0 | ' | 0 |
Number of Contracts | 1 | 0 | 1 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 40 | 0 | 40 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 30 | 0 | 30 | 0 | ' |
Specific Reserve | $0 | $0 | $0 | $0 | ' |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |
Recorded Investment - with an allowance recorded | $15,792 | $23,333 | $15,792 | $23,333 | $22,236 | |
Unpaid Principal Balance - with an allowance recorded | 15,792 | 23,333 | 15,792 | 23,333 | 22,236 | |
Related Allowance | 2,447 | 3,048 | 2,447 | 3,048 | 2,981 | |
Average Recorded Investment - with an allowance recorded | 16,921 | 21,292 | 20,132 | 19,600 | 20,222 | |
Interest Income Recognized - with an allowance recorded | 37 | [1] | 44 | 112 | 115 | 148 |
Recorded Investment - without allowance recorded | 7,431 | 7,130 | 7,431 | 7,130 | 5,711 | |
Unpaid Principal Balance - without allowance recorded | 8,828 | 9,307 | 8,828 | 9,307 | 8,015 | |
Impaired Financing Receivable With No Related Allowance Related Allowance | ' | ' | ' | ' | ' | |
Average Recorded Investment - without allowance recorded | 6,531 | 7,684 | 5,611 | 7,716 | 7,397 | |
Interest Income Recognized - without allowance recorded | 22 | [1] | 21 | 56 | 86 | 91 |
Impaired Financing Receivable, Recorded Investment | 23,223 | 30,463 | 23,223 | 30,463 | 27,947 | |
Impaired Financing Receivable, Unpaid Principal Balance | 24,620 | 32,640 | 24,620 | 32,640 | 30,251 | |
Impaired Financing Receivable, Average Recorded Investment | 23,452 | 28,976 | 25,743 | 27,316 | 27,619 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 59 | [1] | 65 | 168 | 201 | 239 |
Residential real estate loans | ' | ' | ' | ' | ' | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |
Recorded Investment - with an allowance recorded | 9,441 | 10,746 | 9,441 | 10,746 | 11,902 | |
Unpaid Principal Balance - with an allowance recorded | 9,441 | 10,746 | 9,441 | 10,746 | 11,902 | |
Related Allowance | 1,420 | 1,655 | 1,420 | 1,655 | 1,750 | |
Average Recorded Investment - with an allowance recorded | 9,236 | 10,457 | 9,928 | 10,130 | 10,411 | |
Interest Income Recognized - with an allowance recorded | 38 | [1] | 32 | 102 | 91 | 118 |
Recorded Investment - without allowance recorded | 1,523 | 3,313 | 1,523 | 3,313 | 2,533 | |
Unpaid Principal Balance - without allowance recorded | 1,880 | 4,439 | 1,880 | 4,439 | 3,846 | |
Impaired Financing Receivable With No Related Allowance Related Allowance | ' | ' | ' | ' | ' | |
Average Recorded Investment - without allowance recorded | 1,751 | 2,816 | 2,340 | 2,908 | 2,925 | |
Interest Income Recognized - without allowance recorded | 2 | [1] | 9 | 5 | 22 | 28 |
Commercial real estate loans | ' | ' | ' | ' | ' | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |
Recorded Investment - with an allowance recorded | 2,987 | 8,497 | 2,987 | 8,497 | 6,805 | |
Unpaid Principal Balance - with an allowance recorded | 2,987 | 8,497 | 2,987 | 8,497 | 6,805 | |
Related Allowance | 222 | 686 | 222 | 686 | 526 | |
Average Recorded Investment - with an allowance recorded | 3,142 | 6,503 | 5,588 | 4,976 | 5,517 | |
Interest Income Recognized - with an allowance recorded | 1 | [1] | 9 | 2 | 18 | 20 |
Recorded Investment - without allowance recorded | 3,723 | 2,519 | 3,723 | 2,519 | 2,059 | |
Unpaid Principal Balance - without allowance recorded | 4,116 | 3,167 | 4,116 | 3,167 | 2,782 | |
Impaired Financing Receivable With No Related Allowance Related Allowance | ' | ' | ' | ' | ' | |
Average Recorded Investment - without allowance recorded | 3,490 | 3,663 | 2,230 | 3,750 | 3,362 | |
Interest Income Recognized - without allowance recorded | 14 | [1] | 10 | 43 | 56 | 55 |
Commercial loans | ' | ' | ' | ' | ' | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |
Recorded Investment - with an allowance recorded | 1,562 | 2,347 | 1,562 | 2,347 | 1,876 | |
Unpaid Principal Balance - with an allowance recorded | 1,562 | 2,347 | 1,562 | 2,347 | 1,876 | |
Related Allowance | 121 | 177 | 121 | 177 | 132 | |
Average Recorded Investment - with an allowance recorded | 2,724 | 2,606 | 2,653 | 2,721 | 2,543 | |
Interest Income Recognized - with an allowance recorded | -2 | [1] | 3 | 8 | 6 | 10 |
Recorded Investment - without allowance recorded | 1,818 | 1,022 | 1,818 | 1,022 | 759 | |
Unpaid Principal Balance - without allowance recorded | 2,318 | 1,213 | 2,318 | 1,213 | 871 | |
Impaired Financing Receivable With No Related Allowance Related Allowance | ' | ' | ' | ' | ' | |
Average Recorded Investment - without allowance recorded | 870 | 907 | 609 | 699 | 765 | |
Interest Income Recognized - without allowance recorded | 6 | [1] | 2 | 8 | 8 | 8 |
Home equity loans | ' | ' | ' | ' | ' | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |
Recorded Investment - with an allowance recorded | 1,510 | 1,263 | 1,510 | 1,263 | 1,228 | |
Unpaid Principal Balance - with an allowance recorded | 1,510 | 1,263 | 1,510 | 1,263 | 1,228 | |
Related Allowance | 573 | 449 | 573 | 449 | 433 | |
Average Recorded Investment - with an allowance recorded | 1,486 | 1,245 | 1,571 | 1,307 | 1,291 | |
Interest Income Recognized - with an allowance recorded | ' | [1] | ' | ' | ' | ' |
Recorded Investment - without allowance recorded | 350 | 258 | 350 | 258 | 343 | |
Unpaid Principal Balance - without allowance recorded | 477 | 450 | 477 | 450 | 479 | |
Impaired Financing Receivable With No Related Allowance Related Allowance | ' | ' | ' | ' | ' | |
Average Recorded Investment - without allowance recorded | 403 | 291 | 415 | 356 | 334 | |
Interest Income Recognized - without allowance recorded | ' | [1] | ' | ' | ' | ' |
Consumer loans | ' | ' | ' | ' | ' | |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' | |
Recorded Investment - with an allowance recorded | 292 | 480 | 292 | 480 | 425 | |
Unpaid Principal Balance - with an allowance recorded | 292 | 480 | 292 | 480 | 425 | |
Related Allowance | 111 | 81 | 111 | 81 | 140 | |
Average Recorded Investment - with an allowance recorded | 333 | 481 | 392 | 466 | 460 | |
Interest Income Recognized - with an allowance recorded | ' | [1] | ' | ' | ' | ' |
Recorded Investment - without allowance recorded | 17 | 18 | 17 | 18 | 17 | |
Unpaid Principal Balance - without allowance recorded | 37 | 38 | 37 | 38 | 37 | |
Impaired Financing Receivable With No Related Allowance Related Allowance | ' | ' | ' | ' | ' | |
Average Recorded Investment - without allowance recorded | 17 | 7 | 17 | 3 | 11 | |
Interest Income Recognized - without allowance recorded | ' | [1] | ' | ' | ' | ' |
[1] | Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. |
LOANS_AND_ALLOWANCE_FOR_LOAN_L8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
loan | revision | loan | industry | |||
industry | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Gain (loss) on sale of mortgage loans | ' | ' | ' | $17,000 | $684,000 | ' |
Allowance methodology number of changes during the period | ' | 1 | ' | ' | ' | ' |
Financing receivable, allowance for credit losses, effect of change in method | ' | 165,000 | ' | ' | ' | ' |
Number of Portfolio Concentration Industries | ' | ' | ' | 2 | ' | 2 |
Non-residential building operator loans expressed as a percentage of the total commercial real estate loans | 26.00% | ' | ' | 26.00% | ' | 28.00% |
Lodging loans expressed as a percentage of the total commercial real estate loans | 26.00% | ' | ' | 26.00% | ' | 25.00% |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 192,000 | ' | 256,000 | 647,000 | 738,000 | ' |
Allowance for credit Losses related to troubled debt restructuring | 691,000 | ' | ' | 691,000 | ' | 656,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | ' | ' | 0 | ' | ' |
Other real estate owned | 1,566,000 | ' | ' | 1,566,000 | ' | 2,195,000 |
Fixed Rate Residential Mortgage | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Mortgage Loans sold on secondary market | ' | ' | 7,300,000 | 399,000 | 28,200,000 | ' |
Gain (loss) on sale of mortgage loans | ' | ' | 32,000 | 17,000 | 684,000 | ' |
Loans | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Allowance for credit Losses related to troubled debt restructuring | 691,000 | ' | ' | 691,000 | ' | 656,000 |
Loans restructured due to credit difficulties that are now performing | 5,200,000 | ' | ' | 5,200,000 | ' | 5,500,000 |
Financing Receivables Impaired Troubled Debt Restructuring Non-Performing | 1,500,000 | ' | ' | 1,500,000 | ' | 1,600,000 |
Residential real estate loans | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Financing Receivable in Process of Foreclosure | 6,000,000 | ' | ' | 6,000,000 | ' | 4,400,000 |
Commercial Real Estate | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | 6 | ' | ' | 6 | ' | 6 |
Other real estate owned | 1,000,000 | ' | ' | 1,000,000 | ' | 1,200,000 |
Residential Real Estate | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | 11 | ' | ' | 11 | ' | 10 |
Other real estate owned | $554,000 | ' | ' | $554,000 | ' | $1,000,000 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Changes in Goodwill) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill, gross | $48,376 | $48,376 |
Accumulated impairment losses | -3,570 | -3,570 |
Reported goodwill at September 30, 2014 and December 31, 2013 | 44,806 | 44,806 |
Banking | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, gross | 40,902 | 40,902 |
Accumulated impairment losses | 0 | 0 |
Reported goodwill at September 30, 2014 and December 31, 2013 | 40,902 | 40,902 |
Financial Services | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill, gross | 7,474 | 7,474 |
Accumulated impairment losses | -3,570 | -3,570 |
Reported goodwill at September 30, 2014 and December 31, 2013 | $3,904 | $3,904 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSESTS (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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Amortization | ' | ' | ' | ' |
2014 amortization | ($287) | ($289) | ($861) | ($863) |
Net | ' | ' | ' | ' |
2014 amortization | -287 | -289 | -861 | -863 |
Core Deposit Intangible | ' | ' | ' | ' |
Total | ' | ' | ' | ' |
Beginning Balance | ' | ' | 17,300 | ' |
Ending Balance | 17,300 | ' | 17,300 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | -13,088 | ' |
2014 amortization | ' | ' | -805 | ' |
Ending Balance | -13,893 | ' | -13,893 | ' |
Net | ' | ' | ' | ' |
Beginning Balance | ' | ' | 4,212 | ' |
2014 amortization | ' | ' | -805 | ' |
Ending Balance | 3,407 | ' | 3,407 | ' |
Trust Relationship Intangible | ' | ' | ' | ' |
Total | ' | ' | ' | ' |
Beginning Balance | ' | ' | 753 | ' |
Ending Balance | 753 | ' | 753 | ' |
Accumulated Amortization | ' | ' | ' | ' |
Beginning Balance | ' | ' | -452 | ' |
2014 amortization | ' | ' | -56 | ' |
Ending Balance | -508 | ' | -508 | ' |
Net | ' | ' | ' | ' |
Beginning Balance | ' | ' | 301 | ' |
2014 amortization | ' | ' | -56 | ' |
Ending Balance | $245 | ' | $245 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Expected Amortization of Intangible Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Core Deposit Intangible | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | $268 | ' |
2015 | 1,073 | ' |
2016 | 1,073 | ' |
2017 | 993 | ' |
Total unamortized intangible assets | 3,407 | 4,212 |
Trust Relationship Intangible | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | 19 | ' |
2015 | 75 | ' |
2016 | 75 | ' |
2017 | 76 | ' |
Total unamortized intangible assets | $245 | $301 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Supplemental Executive Retirement Plan | ' | ' | ' | ' | ||||
Net period benefit cost | ' | ' | ' | ' | ||||
Service cost | $67 | $82 | $201 | $246 | ||||
Interest cost | 114 | 94 | 342 | 282 | ||||
Recognized net actuarial loss | 35 | 56 | 105 | 168 | ||||
Recognized prior service cost | 5 | 5 | 15 | 15 | ||||
Net period benefit cost | 221 | [1] | 237 | [1] | 663 | [1] | 711 | [1] |
Other Postretirement Benefit Plan | ' | ' | ' | ' | ||||
Net period benefit cost | ' | ' | ' | ' | ||||
Service cost | 11 | 19 | 33 | 57 | ||||
Interest cost | 33 | 35 | 99 | 105 | ||||
Recognized net actuarial loss | 2 | 11 | 6 | 33 | ||||
Recognized prior service cost | -5 | 0 | -15 | 0 | ||||
Net period benefit cost | $41 | [1] | $65 | [1] | $123 | [1] | $195 | [1] |
[1] | (1) Presented within the consolidated statements of income within salaries and employee benefits. |
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 25, 2014 | Mar. 07, 2014 | Mar. 07, 2014 | Mar. 17, 2014 | Mar. 25, 2014 | 1-May-14 | 1-May-14 | Mar. 07, 2014 |
Long Term Performance Share Plan | Management Stock Purchase Plan | Management Stock Purchase Plan | Defined Contribution Retirement Plan | 2013-2015 LTIP | Independent Directors' Equity Compensation Program | Independent Directors' Equity Compensation Program | Restricted Stock | |||
Equity and Incentive Plan 2012 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation, number of shares vested | ' | ' | 7,181 | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | ' | ' | 4,881 | ' | ' | ' | ' | 2,831 | ' | ' |
Stock issued during period, shares, restricted stock award, net of forfeitures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,400 |
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | ' | ' | ' | ' | ' | $40 | ' | ' | ' | $39.57 |
Stock based compensation, vesting period | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | '3 years |
Stock based compensation, shares granted | ' | ' | ' | 5,055 | ' | 2,020 | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, discount from market price, purchase date | ' | ' | ' | 33.00% | ' | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | $39.57 | ' | ' | ' | $37.50 | ' |
Performance period over which net income growth is measured | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Stock-based compensation expense | $453 | $340 | ' | ' | ' | ' | ' | $106 | ' | ' |
FAIR_VALUE_MEASUREMENT_Summary
FAIR VALUE MEASUREMENT (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets: | ' | ' |
Available-for-sale Securities | $771,806 | $808,477 |
Trading account assets | 2,418 | 2,488 |
Customer interest rate swap agreements | 506 | 114 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 6,969 | 3,911 |
Customer interest rate swap agreements | 506 | 114 |
US Government-sponsored Enterprises Debt Securities | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 4,982 | ' |
Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 28,046 | 31,207 |
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 378,204 | 395,903 |
Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 354,313 | 374,435 |
Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 6,261 | 6,932 |
Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | 2,418 | 2,488 |
Customer interest rate swap agreements | 506 | 114 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 6,969 | 3,911 |
Customer interest rate swap agreements | 506 | 114 |
Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 4,982 | ' |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 28,046 | 31,207 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 378,204 | 395,903 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 354,313 | 374,435 |
Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 6,261 | 6,932 |
Readily Available Market Prices (Level 1) | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 0 | 0 |
Trading account assets | 2,418 | 2,488 |
Customer interest rate swap agreements | 0 | 0 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 0 | 0 |
Customer interest rate swap agreements | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | ' | 2,488 |
Customer interest rate swap agreements | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | ' | ' |
Customer interest rate swap agreements | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Trading account assets | 2,418 | ' |
Observable Market Data (Level 2) | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 771,806 | 808,477 |
Trading account assets | 0 | 0 |
Customer interest rate swap agreements | 506 | 114 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 6,969 | 3,911 |
Customer interest rate swap agreements | 506 | 114 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | ' | ' |
Customer interest rate swap agreements | 506 | 114 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 6,969 | 3,911 |
Customer interest rate swap agreements | 506 | 114 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 4,982 | ' |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 28,046 | 31,207 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 378,204 | 395,903 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 354,313 | 374,435 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 6,261 | 6,932 |
Company Determined Fair Value (Level 3) | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | 0 | 0 |
Trading account assets | 0 | 0 |
Customer interest rate swap agreements | 0 | 0 |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | 0 | 0 |
Customer interest rate swap agreements | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ' | ' |
Financial Assets: | ' | ' |
Trading account assets | ' | ' |
Customer interest rate swap agreements | ' | ' |
Financial Liabilities: | ' | ' |
Interest rate swap agreements | ' | ' |
Customer interest rate swap agreements | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | US Government-sponsored Enterprises Debt Securities | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government sponsored enterprises | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ' | ' |
Financial Assets: | ' | ' |
Available-for-sale Securities | ' | ' |
FAIR_VALUE_MEASUREMENT_Summary1
FAIR VALUE MEASUREMENT (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Impaired Loans collateral dependent | Fair Value, Measurements, Nonrecurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | $3,022 | $8,557 | ||
Impaired Loans collateral dependent | Fair Value, Measurements, Nonrecurring | Readily Available Market Prices (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Impaired Loans collateral dependent | Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Impaired Loans collateral dependent | Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | 3,022 | 8,557 | ||
Servicing Contracts | Fair Value, Measurements, Nonrecurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | 179 | [1] | 404 | [1] |
Servicing Contracts | Fair Value, Measurements, Nonrecurring | Readily Available Market Prices (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | [1] | ' | [1] |
Servicing Contracts | Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | 179 | [1] | 404 | [1] |
Servicing Contracts | Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | [1] | ' | [1] |
Other real estate owned | Company Determined Fair Value (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | 1,261 | 1,583 | ||
Other real estate owned | Fair Value, Measurements, Nonrecurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | 1,261 | 1,583 | ||
Other real estate owned | Fair Value, Measurements, Nonrecurring | Readily Available Market Prices (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Other real estate owned | Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Other real estate owned | Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | 1,261 | 1,583 | ||
Goodwill | Company Determined Fair Value (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | 3,904 | ||
Goodwill | Fair Value, Measurements, Nonrecurring | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | 3,904 | ||
Goodwill | Fair Value, Measurements, Nonrecurring | Readily Available Market Prices (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Goodwill | Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | ' | ||
Goodwill | Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ||
Assets, Fair Value Disclosure | ' | $3,904 | ||
[1] | (1) Represents MSRs deemed to be impaired and a valuation allowance established to carry at fair value. |
FAIR_VALUE_MEASUREMENT_Schedul
FAIR VALUE MEASUREMENT (Schedule of Valuation Methodology and Unobservable Inputs) (Details) (Company Determined Fair Value (Level 3), USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Estimated selling cost | 6.00% | 6.00% | ||
Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Estimated selling cost | 10.00% | 10.00% | ||
Weighted Average | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Estimated selling cost | 9.00% | 10.00% | ||
Impaired Loans Partially Charged Off | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 808 | 1,874 | ||
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 0.00% | 0.00% | ||
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 46.00% | 85.00% | ||
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Weighted Average | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 8.00% | 14.00% | ||
Impaired Loans Specifically Reserved | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 2,214 | [1] | 6,683 | [1] |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 10.00% | [1] | 7.00% | [1] |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 69.00% | [1] | 90.00% | [1] |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Weighted Average | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 37.00% | [1] | 22.00% | [1] |
Other real estate owned | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | 1,261 | 1,583 | ||
Other real estate owned | Market Approach Valuation Technique | Minimum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 0.00% | 0.00% | ||
Other real estate owned | Market Approach Valuation Technique | Maximum | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 41.00% | 41.00% | ||
Other real estate owned | Market Approach Valuation Technique | Weighted Average | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Management adjustment of appraisal | 18.00% | 16.00% | ||
Goodwill | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value | ' | 3,904 | ||
Goodwill | Discounted cash flow | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value Inputs, Long-term Revenue Growth Rate | ' | 5.00% | ||
Fair Value Inputs, Margin Percent | ' | 8.30% | ||
Management adjustment of appraisal | ' | 16.50% | ||
Fair Value Inputs, Fair Value Weighting | ' | 50.00% | ||
Goodwill | Market Approach Valuation Technique | ' | ' | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | ||
Fair Value Inputs, Fair Value Weighting | ' | 50.00% | ||
[1] | (1) The specific reserve for collateral-dependent impaired loans is determined by any loan-to-value ratio in excess of 80% for consumer loans and any loan-to-value ratio in excess of 75% for commercial loans. Appraisals are received on impaired loans in accordance with the Company's internal policy. As such, adjustments to the appraised fair value are made, as necessary, should the appraisal not be current. Adjustments are made to the appraised fair value to reflect changes in known factors, including, but not limited to, property condition, property location, and costs to sell the collateral. |
FAIR_VALUE_MEASUREMENT_Schedul1
FAIR VALUE MEASUREMENT (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Financial assets: | ' | ' | ||
Cash and due from banks | $59,450 | $51,355 | ||
Available-for-sale Securities | 771,806 | 808,477 | ||
Held-to-maturity securities, at amortized cost | 11,490 | 0 | ||
Held-to-maturity Securities, Fair Value | 11,659 | ' | ||
FHLB and Federal Reserve Bank stock | 20,379 | 19,724 | ||
Trading account assets | 2,418 | 2,488 | ||
Mortgage servicing rights | 1,526 | [1] | 1,494 | [1] |
Interest receivable | 6,162 | 5,808 | ||
Investments in CCTA and UBCT | 1,331 | 1,331 | ||
Customer interest rate swap agreements | 506 | 114 | ||
Financial liabilities: | ' | ' | ||
Deposits | 1,930,182 | 1,817,199 | ||
FHLB advances | 58,244 | 59,118 | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 31,591 | 32,038 | ||
Other borrowed funds | 411,125 | 400,144 | ||
Junior subordinated debentures | 43,998 | 43,922 | ||
Interest payable | 510 | 567 | ||
Interest rate swap agreements | 6,969 | 3,911 | ||
Customer interest rate swap agreements | 506 | 114 | ||
Residential real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 580,261 | 577,153 | ||
Commercial real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 604,195 | 535,961 | ||
Commercial loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 235,131 | 171,432 | ||
Home equity loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 270,112 | 271,041 | ||
Consumer loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 18,005 | 17,662 | ||
Readily Available Market Prices (Level 1) | ' | ' | ||
Financial assets: | ' | ' | ||
Cash and due from banks | 59,450 | 51,355 | ||
Available-for-sale Securities | 0 | 0 | ||
Held-to-maturity Securities, Fair Value | 0 | ' | ||
FHLB and Federal Reserve Bank stock | 20,379 | 19,724 | ||
Trading account assets | 2,418 | 2,488 | ||
Mortgage servicing rights | 0 | [1] | 0 | [1] |
Interest receivable | 0 | 0 | ||
Investments in CCTA and UBCT | 0 | 0 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Financial liabilities: | ' | ' | ||
Deposits | 1,389,977 | 1,324,221 | ||
FHLB advances | 0 | 0 | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | 0 | ||
Other borrowed funds | 411,125 | 400,144 | ||
Junior subordinated debentures | 0 | 0 | ||
Interest payable | 510 | 567 | ||
Interest rate swap agreements | 0 | 0 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Residential real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Commercial real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Commercial loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Home equity loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Consumer loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | ' | ' | ||
Financial assets: | ' | ' | ||
Cash and due from banks | 0 | 0 | ||
Available-for-sale Securities | 771,806 | 808,477 | ||
Held-to-maturity Securities, Fair Value | 11,659 | ' | ||
FHLB and Federal Reserve Bank stock | 0 | 0 | ||
Trading account assets | 0 | 0 | ||
Mortgage servicing rights | 1,526 | [1] | 1,494 | [1] |
Interest receivable | 6,162 | 5,808 | ||
Investments in CCTA and UBCT | 0 | 0 | ||
Customer interest rate swap agreements | 506 | 114 | ||
Financial liabilities: | ' | ' | ||
Deposits | 540,205 | 492,978 | ||
FHLB advances | 58,244 | 59,118 | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 31,591 | 32,038 | ||
Other borrowed funds | 0 | 0 | ||
Junior subordinated debentures | 43,998 | 43,922 | ||
Interest payable | 0 | 0 | ||
Interest rate swap agreements | 6,969 | 3,911 | ||
Customer interest rate swap agreements | 506 | 114 | ||
Observable Market Data (Level 2) | Residential real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Commercial real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Commercial loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Home equity loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Consumer loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 0 | 0 | ||
Company Determined Fair Value (Level 3) | ' | ' | ||
Financial assets: | ' | ' | ||
Cash and due from banks | 0 | 0 | ||
Available-for-sale Securities | 0 | 0 | ||
Held-to-maturity Securities, Fair Value | 0 | ' | ||
FHLB and Federal Reserve Bank stock | 0 | 0 | ||
Trading account assets | 0 | 0 | ||
Mortgage servicing rights | 0 | [1] | 0 | [1] |
Interest receivable | 0 | 0 | ||
Investments in CCTA and UBCT | 1,331 | 1,331 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Financial liabilities: | ' | ' | ||
Deposits | 0 | 0 | ||
FHLB advances | 0 | 0 | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | 0 | ||
Other borrowed funds | 0 | 0 | ||
Junior subordinated debentures | 0 | 0 | ||
Interest payable | 0 | 0 | ||
Interest rate swap agreements | 0 | 0 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Company Determined Fair Value (Level 3) | Residential real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 580,261 | 577,153 | ||
Company Determined Fair Value (Level 3) | Commercial real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 604,195 | 535,961 | ||
Company Determined Fair Value (Level 3) | Commercial loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 235,131 | 171,432 | ||
Company Determined Fair Value (Level 3) | Home equity loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 270,112 | 271,041 | ||
Company Determined Fair Value (Level 3) | Consumer loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 18,005 | 17,662 | ||
Carrying Amount | ' | ' | ||
Financial assets: | ' | ' | ||
Cash and due from banks | 59,450 | 51,355 | ||
Available-for-sale Securities | 771,806 | 808,477 | ||
Held-to-maturity securities, at amortized cost | 11,490 | ' | ||
FHLB and Federal Reserve Bank stock | 20,379 | 19,724 | ||
Trading account assets | 2,418 | 2,488 | ||
Mortgage servicing rights | 538 | [1] | 726 | [1] |
Interest receivable | 6,162 | 5,808 | ||
Investments in CCTA and UBCT | 1,331 | 1,331 | ||
Customer interest rate swap agreements | 506 | 114 | ||
Financial liabilities: | ' | ' | ||
Deposits | 1,928,543 | 1,813,824 | ||
FHLB advances | 56,058 | 56,112 | ||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 30,109 | 30,142 | ||
Other borrowed funds | 411,062 | 399,916 | ||
Junior subordinated debentures | 43,998 | 43,922 | ||
Interest payable | 510 | 567 | ||
Interest rate swap agreements | 6,969 | 3,911 | ||
Customer interest rate swap agreements | 506 | 114 | ||
Carrying Amount | Residential real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 570,933 | 563,425 | ||
Carrying Amount | Commercial real estate loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 608,396 | 536,107 | ||
Carrying Amount | Commercial loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 238,619 | 172,105 | ||
Carrying Amount | Home equity loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | 268,889 | 269,888 | ||
Carrying Amount | Consumer loans | ' | ' | ||
Financial assets: | ' | ' | ||
Loans receivable, net of allowance | $17,805 | $17,287 | ||
[1] | (1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
FAIR_VALUE_MEASUREMENT_Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Financing receivable, individually evaluated for impairment | $23,223,000 | $27,947,000 | $30,463,000 |
Non-financial assets measured at fair value on recurring basis | 0 | ' | ' |
Non-financial liabilities measured at fair value on recurring basis | 0 | ' | ' |
Non-financial liabilities measured at fair value on non-recurring basis | 0 | ' | ' |
Goodwill, impairment loss | 2,800,000 | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 24,620,000 | 30,251,000 | 32,640,000 |
Minimum | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Financing receivable, individually evaluated for impairment | 250,000 | ' | ' |
Financial Services | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Goodwill, fair value disclosure | 3,900,000 | ' | ' |
Impaired Loans Specifically Reserved | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 20,200,000 | 19,400,000 | ' |
Servicing Contracts | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Servicing Asset at Amortized Cost | 359,000 | 322,000 | ' |
Other real estate owned | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Other Real Estate | 305,000 | 612,000 | ' |
Consumer loans | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Financing receivable, individually evaluated for impairment | 309,000 | 442,000 | 498,000 |
Consumer loans | Company Determined Fair Value (Level 3) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Percentage Collateral To Loans | 80.00% | ' | ' |
Commercial loans | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Financing receivable, individually evaluated for impairment | $3,380,000 | $2,635,000 | $3,369,000 |
Commercial loans | Company Determined Fair Value (Level 3) | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Percentage Collateral To Loans | 75.00% | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest rate swaps | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | $43,000 | $43,000 |
Customer loan swaps | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 30,607 | 15,702 |
Home Equity | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 309,641 | 276,671 |
Commercial and commercial real estate | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 52,040 | 26,688 |
Residential | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 15,638 | 6,408 |
Letters of Credit | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | 3,762 | 1,789 |
Other Commitments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Notional amount of derivative financial instruments | $743 | $437 |
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, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
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 $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Interest rate swaps | Interest rate swaps | Interest rate swaps | |||||
Commercial Loan | |||||||
Other Commitments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Loss Contingency Accrual | $0 | ' | $0 | ' | ' | ' | ' |
Notional amount of derivative | ' | ' | ' | ' | 43,000,000 | 43,000,000 | 15,300,000 |
Cash held as collateral | 8,100,000 | ' | 8,100,000 | ' | ' | ' | ' |
Fair value derivative liability | ' | ' | ' | ' | 7,000,000 | ' | ' |
Increase (decrease) in fair value of swap agreement classified as other liabilities | ($93,000) | $445,000 | ($1,988,000) | $3,591,000 | ' | ' | ' |