Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | SOUTH STATE Corp | |
Entity Central Index Key | 764,038 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,201,793 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Cash and cash equivalents: | |||
Cash and due from banks | $ 422,057 | $ 229,901 | $ 388,852 |
Interest-bearing deposits with banks | 7,097 | 7,456 | 6,418 |
Federal funds sold and securities purchased under agreements to resell | 164,228 | 180,512 | 194,253 |
Total cash and cash equivalents | 593,382 | 417,869 | 589,523 |
Investment securities: | |||
Securities held to maturity (fair value of $10,114, $10,233, and $11,058, respectively) | 9,659 | 9,659 | 10,389 |
Securities available for sale, at fair value | 841,661 | 806,766 | 795,741 |
Other investments | 9,031 | 10,518 | 10,518 |
Total investment securities | 860,351 | 826,943 | 816,648 |
Loans held for sale | 73,055 | 61,934 | 56,407 |
Loans: | |||
Loans, net | 5,749,270 | 5,680,688 | 5,634,122 |
FDIC receivable for loss share agreements | 11,035 | 22,161 | 43,766 |
Other real estate owned (covered of $8,172, $16,227, and $21,998, respectively; non-covered of $26,870, $26,499, and $31,735, respectively) | 35,042 | 42,726 | 53,733 |
Premises and equipment, net | 171,582 | 171,772 | 184,113 |
Bank owned life insurance | 100,363 | 99,140 | 97,933 |
Deferred tax assets | 45,911 | 42,692 | 66,780 |
Mortgage servicing rights | 25,325 | 21,601 | 21,015 |
Core deposit and other intangibles | 45,260 | 49,239 | 53,371 |
Goodwill | 317,688 | 317,688 | 317,688 |
Other assets | 56,720 | 71,774 | 58,587 |
Total assets | 8,084,984 | 7,826,227 | 7,993,686 |
Deposits: | |||
Noninterest-bearing | 1,844,973 | 1,639,953 | 1,626,995 |
Interest-bearing | 4,822,555 | 4,821,092 | 4,952,847 |
Total deposits | 6,667,528 | 6,461,045 | 6,579,842 |
Federal funds purchased and securities sold under agreements to repurchase | 287,903 | 221,541 | 280,595 |
Other borrowings | 55,055 | 101,210 | 101,045 |
Other liabilities | 50,719 | 57,511 | 79,186 |
Total liabilities | $ 7,061,205 | $ 6,841,307 | $ 7,040,668 |
Shareholders' equity: | |||
Preferred stock-$.01 par value; authorized 10,000,000 shares; no shares issued and outstanding | |||
Common stock - $2.50 par value; authorized 40,000,000 shares; 24,197,531, 24,150,702, and 24,130,006 shares issued and outstanding, respectively | $ 60,494 | $ 60,377 | $ 60,325 |
Surplus | 704,625 | 701,764 | 699,324 |
Retained earnings | 260,591 | 223,156 | 192,961 |
Accumulated other comprehensive income (loss) | (1,931) | (377) | 408 |
Total shareholders' equity | 1,023,779 | 984,920 | 953,018 |
Total liabilities and shareholders' equity | 8,084,984 | 7,826,227 | 7,993,686 |
Non-acquired loans | |||
Loans: | |||
Loans, gross | 3,788,399 | 3,467,826 | 3,174,625 |
Less allowance for non-acquired loan losses | (34,782) | (34,539) | (35,422) |
Credit impaired | Acquired loans | |||
Loans: | |||
Loans, gross | 823,981 | 919,402 | 1,047,336 |
Non-Credit impaired | Acquired loans | |||
Loans: | |||
Loans, gross | $ 1,171,672 | $ 1,327,999 | $ 1,447,583 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment securities: | |||
Securities held to maturity, fair value (in dollars) | $ 10,114 | $ 10,233 | $ 11,058 |
Other real estate owned | |||
Other real estate owned, covered (in dollars) | 8,172 | 16,227 | 21,998 |
Other real estate owned, non-covered (in dollars) | $ 26,870 | $ 26,499 | $ 31,735 |
Shareholders' equity: | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 2.50 | ||
Credit impaired | Acquired loans | |||
Loans: | |||
Covered loans | $ 113,158 | $ 182,464 | $ 243,942 |
Non-covered | 710,823 | 736,938 | 803,394 |
Non-Credit impaired | Acquired loans | |||
Loans: | |||
Covered loans | 8,059 | 9,376 | 7,538 |
Non-covered | $ 1,163,613 | $ 1,318,623 | $ 1,440,045 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Loans, including fees | $ 79,406 | $ 79,322 | $ 158,254 | $ 161,163 |
Investment securities: | ||||
Taxable | 3,822 | 3,997 | 7,484 | 7,878 |
Tax-exempt | 1,072 | 1,071 | 2,150 | 2,227 |
Federal funds sold and securities purchased under agreements to resell | 464 | 441 | 875 | 901 |
Total interest income | 84,764 | 84,831 | 168,763 | 172,169 |
Interest expense: | ||||
Deposits | 1,737 | 2,261 | 3,740 | 4,654 |
Federal funds purchased and securities sold under agreements to repurchase | 105 | 89 | 201 | 191 |
Other borrowings | 646 | 1,508 | 1,497 | 3,009 |
Total interest expense | 2,488 | 3,858 | 5,438 | 7,854 |
Net interest income | 82,276 | 80,973 | 163,325 | 164,315 |
Provision for loan losses | 3,144 | 2,169 | 3,963 | 3,018 |
Net interest income after provision for loan losses | 79,132 | 78,804 | 159,362 | 161,297 |
Noninterest income: | ||||
Fees on deposit accounts | 17,699 | 17,617 | 34,192 | 34,441 |
Mortgage banking income | 7,089 | 4,683 | 13,715 | 7,974 |
Trust and investment services income | 5,051 | 4,812 | 9,985 | 9,355 |
Securities gains | 88 | 88 | ||
Amortization of FDIC indemnification assets, net | (2,042) | (5,815) | (5,249) | (12,893) |
Other | 2,285 | 3,014 | 3,945 | 6,113 |
Total noninterest income | 30,082 | 24,399 | 56,588 | 45,078 |
Noninterest expense: | ||||
Salaries and employee benefits | 39,754 | 40,276 | 80,741 | 79,369 |
Net occupancy expense | 5,046 | 5,763 | 10,283 | 11,371 |
Information services expense | 4,382 | 4,435 | 8,340 | 8,833 |
Furniture and equipment expense | 2,762 | 3,264 | 5,907 | 7,006 |
Bankcard expense | 2,285 | 2,088 | 4,265 | 4,344 |
Branch consolidation expense | 2,237 | 2,237 | ||
OREO expense and loan related | 2,019 | 1,736 | 5,033 | 5,939 |
Amortization of intangibles | 1,964 | 2,084 | 3,980 | 4,188 |
Supplies, printing and postage expense | 1,430 | 1,599 | 3,042 | 3,182 |
Professional fees | 1,585 | 1,115 | 2,994 | 2,379 |
FDIC assessment and other regulatory charges | 1,253 | 1,267 | 2,437 | 2,843 |
Advertising and marketing | 1,009 | 892 | 1,864 | 1,745 |
Merger and branding related expense | 6,510 | 12,495 | ||
Other | 5,803 | 4,860 | 10,891 | 9,618 |
Total noninterest expense | 71,529 | 75,889 | 142,014 | 153,312 |
Earnings: | ||||
Income before provision for income taxes | 37,685 | 27,314 | 73,936 | 53,063 |
Provision for income taxes | 12,813 | 9,368 | 25,138 | 18,200 |
Net income | 24,872 | 17,946 | 48,798 | 34,863 |
Preferred stock dividends | 1,073 | |||
Net income available to common shareholders | $ 24,872 | $ 17,946 | $ 48,798 | $ 33,790 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.04 | $ 0.75 | $ 2.04 | $ 1.41 |
Diluted (in dollars per share) | 1.03 | 0.74 | 2.02 | 1.40 |
Dividends per common share (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.47 | $ 0.39 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 23,981 | 23,892 | 23,947 | 23,882 |
Diluted (in shares) | 24,258 | 24,141 | 24,214 | 24,126 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 24,872 | $ 17,946 | $ 48,798 | $ 34,863 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) arising during period | (8,226) | 7,005 | (2,953) | 16,163 |
Tax effect | 3,100 | (2,671) | 1,090 | (6,163) |
Reclassification adjustment for gains included in net income | (88) | (88) | ||
Tax effect | 34 | 34 | ||
Net of tax amount | (5,126) | 4,280 | (1,863) | 9,946 |
Unrealized gains (losses) on derivative financial instruments qualifying as cash flow hedges: | ||||
Unrealized holding gains (losses) arising during period | 29 | (107) | (92) | (178) |
Tax effect | (11) | 41 | 35 | 68 |
Reclassification adjustment for losses included in interest expense | 64 | 73 | 140 | 149 |
Tax effect | (24) | (28) | (53) | (57) |
Net of tax amount | 58 | (21) | 30 | (18) |
Changes in pension plan obligation: | ||||
Reclassification adjustment for changes included in net income | 225 | 330 | 450 | 330 |
Tax effect | (86) | (127) | (171) | (127) |
Net of tax amount | 139 | 203 | 279 | 203 |
Other comprehensive income (loss), net of tax | (4,929) | 4,462 | (1,554) | 10,131 |
Comprehensive income | $ 19,943 | $ 22,408 | $ 47,244 | $ 44,994 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Preferred Stock | Corporate Stocks | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss). | Total |
Balance at Dec. 31, 2013 | $ 1 | $ 60,260 | $ 762,354 | $ 168,577 | $ (9,723) | $ 981,469 |
Balance (in shares) at Dec. 31, 2013 | 65,000 | 24,104,124 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income | 34,863 | 10,131 | 44,994 | |||
Cash dividends on Series A preferred stock at annual dividend rate of 9% | (1,073) | (1,073) | ||||
Cash dividends declared on common stock at $0.39 and $0.47 per share | (9,406) | (9,406) | ||||
Employee stock purchases | $ 8 | 185 | 193 | |||
Employee stock purchases (in shares) | 3,251 | |||||
Stock options exercised | $ 12 | 117 | 129 | |||
Stock options exercised (in shares) | 4,660 | |||||
Restricted stock awards | $ 57 | (57) | ||||
Restricted stock awards (in shares) | 22,810 | |||||
Repurchase of Series A preferred stock | $ (1) | (64,999) | (65,000) | |||
Repurchase of Series A preferred stock (in shares) | (65,000) | |||||
Common stock repurchased | $ (12) | (283) | (295) | |||
Common stock repurchased (in shares) | (4,839) | |||||
Share-based compensation expense | 2,007 | 2,007 | ||||
Balance at Jun. 30, 2014 | $ 60,325 | 699,324 | 192,961 | 408 | 953,018 | |
Balance (in shares) at Jun. 30, 2014 | 24,130,006 | |||||
Balance at Dec. 31, 2014 | $ 60,377 | 701,764 | 223,156 | (377) | 984,920 | |
Balance (in shares) at Dec. 31, 2014 | 24,150,702 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Comprehensive income | 48,798 | (1,554) | 47,244 | |||
Cash dividends declared on common stock at $0.39 and $0.47 per share | (11,363) | (11,363) | ||||
Employee stock purchases | $ 8 | 199 | 207 | |||
Employee stock purchases (in shares) | 3,366 | |||||
Stock options exercised | $ 76 | 863 | 939 | |||
Stock options exercised (in shares) | 30,060 | |||||
Restricted stock awards | $ 76 | (76) | ||||
Restricted stock awards (in shares) | 30,605 | |||||
Common stock repurchased | $ (43) | (1,032) | (1,075) | |||
Common stock repurchased (in shares) | (17,202) | |||||
Share-based compensation expense | 2,907 | 2,907 | ||||
Balance at Jun. 30, 2015 | $ 60,494 | $ 704,625 | $ 260,591 | $ (1,931) | $ 1,023,779 | |
Balance (in shares) at Jun. 30, 2015 | 24,197,531 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 6 Months Ended |
Jun. 30, 2014 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity | |
Annual dividend rate (as a percent) | 9.00% |
Cash dividends declared, per share (in dollars per share) | $ 0.39 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 48,798 | $ 34,863 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,531 | 10,540 |
Provision for loan losses | 3,963 | 3,018 |
Deferred income taxes | (2,320) | (80) |
Gain on sale of securities | (88) | |
Share-based compensation expense | 2,907 | 2,007 |
Amortization on FDIC indemnification asset | 5,249 | 12,893 |
Accretion of discount related to performing acquired loans | (3,211) | (5,186) |
Loss on disposal of premises and equipment | 301 | 287 |
Gain on sale of OREO | (766) | (5,368) |
Net amortization of premium on investment securities | 2,210 | 2,004 |
OREO write downs | 4,314 | 5,724 |
Fair Value adjustment for loans held for sale | (189) | |
Originations and purchases of mortgage loans for sale | (506,532) | (327,034) |
Proceeds from sales of mortgage loans for sale | 495,506 | 301,212 |
Net change in: | ||
Accrued interest receivable | (277) | (2,343) |
Prepaid assets | (972) | 2,886 |
FDIC Loss Share Receivable | 5,877 | 29,609 |
Accrued interest payable | (1,822) | (1,106) |
Accrued income taxes | 12,861 | 11,711 |
Miscellaneous assets and liabilities | (4,897) | (11,640) |
Net cash provided by operating activities | 71,531 | 63,909 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities available for sale | 9,315 | |
Proceeds from maturities and calls of investment securities held to maturity | 1,535 | |
Proceeds from maturities and calls of investment securities available for sale | 96,497 | 66,645 |
Proceeds from sales of investment securities held to maturity | 411 | |
Proceeds from calls of other investment securities | 1,392 | |
Proceeds from sales of other investment securities | 95 | 2,868 |
Purchases of investment securities available for sale | (136,554) | (70,831) |
Purchases of other investments | (6,186) | |
Net increase in loans | (83,652) | (18,716) |
Recoveries of loans previously charged off | 1,598 | |
Purchases of premises and equipment | (7,431) | (10,161) |
Proceeds from sale of credit card loans | 20,350 | |
Proceeds from sale of OREO | 16,855 | 36,289 |
Proceeds from sale of premises and equipment | 25 | 1,437 |
Net cash provided by (used in) investing activities | (111,175) | 32,956 |
Cash flows from financing activities: | ||
Net increase in deposits | 206,483 | 20,639 |
Net increase in federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings | 66,361 | 69,194 |
Repayment of other borrowings | (46,395) | (1,184) |
Common stock issuance | 207 | 193 |
Preferred stock repurchase | (65,000) | |
Common stock repurchase | (1,075) | (295) |
Dividends paid on preferred stock | (1,073) | |
Dividends paid on common stock | (11,363) | (9,406) |
Stock options exercised | 939 | 129 |
Net cash provided by financing activities | 215,157 | 13,197 |
Net increase in cash and cash equivalents | 175,513 | 110,062 |
Cash and cash equivalents at beginning of period | 417,869 | 479,461 |
Cash and cash equivalents at end of period | 593,382 | 589,523 |
Cash paid for: | ||
Interest | 7,259 | 8,959 |
Income taxes | 14,410 | 13,039 |
Schedule of Noncash Investing Transactions: | ||
Real estate acquired in full or in partial settlement of loans (covered of $1,309 and $11,680, respectively; and non-covered of $11,410 and $13,781, respectively) | $ 12,719 | $ 25,461 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Cash Flows | ||
Real estate acquired in full or in partial settlement of loans, covered | $ 1,309 | $ 11,680 |
Real estate acquired in full or in partial settlement of loans, non-covered | $ 11,410 | $ 13,781 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications had no impact on net income or equity as previously reported. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for complete financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies The information contained in the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2015, should be referenced when reading these unaudited condensed consolidated financial statements. Unless otherwise mentioned or unless the context requires otherwise, references herein to “South State,” the “Company” “we,” “us,” “our” or similar references mean South State Corporation and its consolidated subsidiaries. References to the “Bank” means South State Corporation’s wholly owned subsidiary, South State Bank, a South Carolina banking corporation. Subsequent Events The Company has evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued. |
Recent Accounting and Regulator
Recent Accounting and Regulatory Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Recent Accounting and Regulatory Pronouncements | |
Recent Accounting and Regulatory Pronouncements | Note 3 — Recent Accounting and Regulatory Pronouncements In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) . The update simplifies the presentation of debt issuance costs by requiring that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2015, and is to be applied retrospectively. Early adoption is permitted. The Company has determined that this guidance will not have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update ASU 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”) . This ASU affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the amendments: (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. ASU No. 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements, but does not expect it to have a material impact. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, a consensus of the FASB Emerging Issues Task Force (“ASU 2014-16”). This ASU clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. ASU 2014-16 is effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2015. The adoption of ASU 2014-16 is not expected to have a material impact on the Company’s financial statements. In August 2014, the FASB issued ASU 2014-14: Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40) — Classification of Certain Government Guaranteed Mortgage Loans upon Foreclosure (“ASU 2014-14”) . ASU 2014-14 provides clarifying guidance related to how creditors classify government-guaranteed loans upon foreclosure. ASU 2014-14 requires that a mortgage loan be derecognized and a separate receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. ASU 2014-14 became effective for the Company on January 1, 2015 and did not have an impact on the Company’s financial statements. In June 2014, the FASB issued ASU 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, a consensus of the FASB Emerging Issues Task Force (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2015. An entity may apply the standards (1) prospectively to all share-based payment awards that are granted or modified on or after the effective date, or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Earlier application is permitted . The adoption of ASU 2014-12 is not expected to have a material impact on the Company’s financial statements. In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (“ASU 2014-11”) . ASU 2014-11 aligns the accounting for repurchase to maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. ASU 2014-11 became effective for the Company on January 1, 2015 and did not have an impact on the Company’s financial statements. See Note 21—Repurchase Agreements for the disclosures required under the provisions of ASU 2014-11. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, Topic 606 (“ASU 2014-09”). The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016 (the FASB recently approved a one-year deferral of the effective date but has not issued the final ASU at this point), including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this new guidance recognized at the date of initial application. The Company is currently evaluating the provisions of ASU 2014-09 to determine the potential impact the new standard will have to the Company’s financial statements. In January 2014, the FASB issued ASU 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, a consensus of the FASB Emerging Issues Task Force (“ASU 2014-04”). ASU 2014-04 clarifies that an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (i) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or similar legal agreement. ASU 2014-04 also requires disclosure of both the amount of foreclosed residential real estate property held by the creditor and the recorded investment in loans collateralized by residential real estate property that are in the process of foreclosure. ASU 2014-04 became effective for the Company on January 1, 2015 and, although additional disclosures regarding residential real estate foreclosures and properties in process of foreclosure were required, did not have a significant impact on the Company’s financial statements. In January 2014, the FASB issued ASU No. 2014-01, Accounting for Investments in Qualified Affordable Housing Projects (“ASU 2014-01”). ASU 2014-01 amends FASB ASC 323, Investments — Equity Method and Joint Ventures , 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. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). ASU 2014-02 became effective for the Company on January 1, 2015 and did not have a significant impact on the Company’s financial statements (see Note 20). |
Mergers and Acquisitions
Mergers and Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Mergers and Acquisitions | |
Mergers and Acquisitions | Note 4 — Mergers and Acquisitions The following mergers and acquisitions are referenced throughout this Form 10-Q: · Community Bank & Trust (“CBT”) — January 29, 2010 — Federal Deposit Insurance Corporation (“FDIC”) purchase and assumption agreement · Habersham Bank (“Habersham”) — February 18, 2011 — FDIC purchase and assumption agreement · BankMeridian, N.A. (“BankMeridian”) — July 29, 2011 — FDIC purchase and assumption agreement · Peoples Bancorporation, Inc. (“Peoples”) — April 24, 2012 — Whole bank acquisition · The Savannah Bancorp, Inc. (“Savannah”) — December 13, 2012 — Whole bank acquisition · Former First Financial Holdings, Inc. (“FFHI”) — July 26, 2013 — Whole bank acquisition, which resulted in the assumption of FDIC purchase and assumption agreements with respect to Cape Fear Bank (“Cape Fear”) — April 10, 2009 and Plantation Federal Bank (“Plantation”) — April 27, 2012 “FDIC purchase and assumption agreement” means that only certain assets and liabilities were acquired by the bank from the FDIC. A “whole bank acquisition” means that the two parties in the transaction agreed to the transaction, and there was no involvement of the FDIC. A “whole bank acquisition with FDIC purchase and assumption agreements” means that the two parties in the transaction agreed to the merger, and there were existing FDIC purchase and assumption agreements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investment Securities | |
Investment Securities | Note 5 — Investment Securities The following is the amortized cost and fair value of investment securities held to maturity: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value June 30, 2015: State and municipal obligations $ $ $ — $ December 31, 2014: State and municipal obligations $ $ $ — $ June 30, 2014: State and municipal obligations $ $ $ — $ The following is the amortized cost and fair value of investment securities available for sale: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value June 30, 2015: Government-sponsored entities debt * $ $ $ ) State and municipal obligations ) Mortgage-backed securities ** ) Corporate stocks ) $ $ $ ) $ December 31, 2014: Government-sponsored entities debt * $ $ $ ) $ State and municipal obligations ) Mortgage-backed securities ** ) Corporate stocks ) $ $ $ ) $ June 30, 2014: Government-sponsored entities debt * $ $ $ ) State and municipal obligations ) Mortgage-backed securities ** ) Corporate stocks ) $ $ $ ) $ * - The Company’s government-sponsored entities holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”). Also included in the Company’s government-sponsored entities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. ** - All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. The following is the amortized cost and fair value of other investment securities: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value June 30, 2015: Federal Home Loan Bank stock $ $ — $ — $ Investment in unconsolidated subsidiaries — — $ $ — $ — $ December 31, 2014: Federal Home Loan Bank stock $ $ — $ — $ Investment in unconsolidated subsidiaries — — $ $ — $ — $ June 30, 2014: Federal Home Loan Bank stock $ $ — $ — $ Investment in unconsolidated subsidiaries — — $ $ — $ — $ The amortized cost and fair value of debt securities at June 30, 2015 by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ $ $ $ Due after one year through five years Due after five years through ten years Due after ten years — — $ $ $ $ Information pertaining to the Company’s securities with gross unrealized losses at June 30, 2015, December 31, 2014 and June 30, 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows: Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value June 30, 2015: Securities Available for Sale Government-sponsored entities debt $ $ $ $ State and municipal obligations Mortgage-backed securities Corporate Stocks — — $ $ $ $ December 31, 2014: Securities Available for Sale Government-sponsored entities debt $ $ $ $ State and municipal obligations Mortgage-backed securities Corporate stocks — — $ $ $ $ June 30, 2014: Securities Available for Sale Government-sponsored entities debt $ $ $ $ State and municipal obligations Mortgage-backed securities Corporate stocks — — $ $ $ $ Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. All debt securities available for sale in an unrealized loss position as of June 30, 2015 continue to perform as scheduled. All equity securities available for sale in an unrealized loss position as of June 30, 2015 continue to pay dividends. As part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. The Company does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that the Company will be required to sell the debt securities; therefore, management does not consider these investments to be other-than-temporarily impaired at June 30, 2015. Management continues to monitor all of these securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of these securities may be sold or are other than temporarily impaired, which would require a charge to earnings in such periods. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 6 — Loans and Allowance for Loan Losses The following is a summary of non-acquired loans: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ $ $ Commercial non-owner occupied Total commercial non-owner occupied real estate Consumer real estate: Consumer owner occupied Home equity loans Total consumer real estate Commercial owner occupied real estate Commercial and industrial Other income producing property Consumer Other loans Total non-acquired loans Less allowance for loan losses ) ) ) Non-acquired loans, net $ $ $ The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of related discount: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 FASB ASC Topic 310-20 acquired loans: Commercial non-owner occupied real estate: Construction and land development $ $ $ Commercial non-owner occupied Total commercial non-owner occupied real estate Consumer real estate: Consumer owner occupied Home equity loans Total consumer real estate Commercial owner occupied real estate Commercial and industrial Other income producing property Consumer Total FASB ASC Topic 310-20 acquired loans $ $ $ The unamortized discount related to the acquired non-credit impaired loans totaled $20.2 million, $23.5 million, and $31.6 million at June 30, 2015, December 31, 2014, and June 30, 2014, respectively. In accordance with FASB ASC Topic 310-30, the Company aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310-30 (identified as credit impaired at the time of acquisition), net of related discount: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 FASB ASC Topic 310-30 acquired loans: Commercial loans greater than or equal to $1 million-CBT $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay Total FASB ASC Topic 310-30 acquired loans Less allowance for loan losses ) ) ) FASB ASC Topic 310-30 acquired loans, net $ $ $ Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of acquired credit impaired loans as of June 30, 2015, December 31, 2014 and June 30, 2014 are as follows: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Contractual principal and interest $ $ $ Non-accretable difference ) ) ) Cash flows expected to be collected Accretable yield ) ) ) Carrying value $ $ $ Allowance for acquired loan losses $ ) $ ) $ ) Income on acquired credit impaired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non-impaired loans has been ascribed as an accretable difference that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected. The following are changes in the carrying value of acquired credit impaired loans: Six Months Ended June 30, (Dollars in thousands) 2015 2014 Balance at beginning of period $ $ Net reductions for payments, foreclosures, and accretion ) ) Change in the allowance for loan losses on acquired loans Balance at end of period, net of allowance for loan losses on acquired loans $ $ The table below reflects refined accretable yield balance for acquired credit impaired loans: Six Months Ended June 30, (Dollars in thousands) 2015 2014 Balance at beginning of period $ $ Accretion ) ) Reclass of nonaccretable difference due to improvement in expected cash flows Other changes, net ) ) Balance at end of period $ $ In the second quarter of 2015, the accretable yield balance declined by $25.5 million as loan accretion (income) was recognized. This was partially offset by improved expected cash flows of $9.5 million. During the recast in the first quarter of 2015, the accretable yield balance declined significantly by $64.1 million. This decline was primarily the result of an increase in the assumed prepayment speed of certain acquired loan pools from the FFHI acquisition. The actual cash flows were faster than what had been previously expected (assumed) and required an adjustment in the assumed prepayment speed used to forecast expected cash flows. The result was a decrease in the accretable yield balance, however, there was no impairment since this changed the timing and amount of the receipt of future cash on these pools of loans (the Company anticipates receiving the cash sooner than previously expected). Our loan loss policy adheres to generally accepted accounting principles in the United States as well as interagency guidance. The allowance for loan losses is based upon estimates made by management. We maintain an allowance for loan losses at a level that we believe is appropriate to cover estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of our loan portfolio. Arriving at the allowance involves a high degree of management’s judgment and results in a range of estimated losses. We regularly evaluate the adequacy of the allowance through our internal risk rating system, outside credit review, and regulatory agency examinations to assess the quality of the loan portfolio and identify problem loans. The evaluation process also includes our analysis of current economic conditions, composition of the loan portfolio, past due and nonaccrual loans, concentrations of credit, lending policies and procedures, and historical loan loss experience. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on, among other factors, changes in economic conditions in our markets. In addition, regulatory agencies, as an integral part of their examination process, periodically review our allowances for losses on loans. These agencies may require management to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these and other factors, it is possible that the allowances for losses on loans may change. The provision for loan losses is charged to expense in an amount necessary to maintain the allowance at an appropriate level. The allowance for loan losses on non-acquired loans consists of general and specific reserves. The general reserves are determined by applying loss percentages to the portfolio that are based on historical loss experience for each class of loans and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. Currently, these adjustments are applied to the non-acquired loan portfolio when estimating the level of reserve required. The specific reserves are determined on a loan-by-loan basis based on management’s evaluation of our exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. These are loans classified by management as doubtful or substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Loans that are determined to be impaired are provided a specific reserve, if necessary, and are excluded from the calculation of the general reserves. With the FFHI acquisition, the Company segregated the loan portfolio into performing loans (“non-credit impaired”) and acquired credit impaired loans. The performing loans and revolving type loans are accounted for under FASB ASC 310-20, with each loan being accounted for individually. The allowance for loan losses on these loans will be measured and recorded consistent with non-acquired loans. The acquired credit impaired loans will follow the description in the next paragraph. In determining the acquisition date fair value of acquired credit impaired loans, and in subsequent accounting, the Company generally aggregates purchased loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are reclassified from the non-accretable difference to accretable yield and recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording an allowance for loan losses. Management analyzes the acquired loan pools using various assessments of risk to determine an expected loss. The expected loss is derived based upon a loss given default based upon the collateral type and/or detailed review by loan officers and the probability of default that is determined based upon historical data at the loan level. Trends are reviewed in terms of accrual status, past due status, and weighted-average grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the mark is assessed to correlate the directional consistency of the expected loss for each pool. Offsetting the impact of the provision established for acquired loans covered under FDIC loss share agreements, the receivable from the FDIC is adjusted to reflect the indemnified portion of the post-acquisition exposure with a corresponding credit to the provision for loan losses. An aggregated analysis of the changes in allowance for loan losses is as follows: Acquired Acquired Non-acquired Non-credit Credit Impaired (Dollars in thousands) Loans Impaired Loans Loans Total Three months ended June 30, 2015: Balance at beginning of period $ $ — $ $ Loans charged-off ) ) — ) Recoveries of loans previously charged off — Net charge-offs ) ) — ) Provision (benefit) for loan losses Benefit attributable to FDIC loss share agreements — — — — Total provision for loan losses charged to operations Provision for loan losses recorded through the FDIC loss share receivable — — — — Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ Three months ended June 30, 2014: Balance at beginning of period $ $ — $ $ Loans charged-off ) — — ) Recoveries of loans previously charged off — — Net charge-offs ) — — ) Provision for loan losses — ) Benefit attributable to FDIC loss share agreements — — Total provision for loan losses charged to operations — Provision for loan losses recorded through the FDIC loss share receivable — — ) ) Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ Six months ended June 30, 2015: Balance at beginning of period $ $ — $ $ Loans charged-off ) ) — ) Recoveries of loans previously charged off — Net charge-offs ) ) — ) Provision (benefit) for loan losses Benefit attributable to FDIC loss share agreements — — Total provision for loan losses charged to operations Provision for loan losses recorded through the FDIC loss share receivable — — ) ) Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ Six months ended June 30, 2014: Balance at beginning of period $ $ — $ $ Loans charged-off ) — — ) Recoveries of loans previously charged off — — Net charge-offs ) — — ) Provision for loan losses — ) Benefit attributable to FDIC loss share agreements — — Total provision for loan losses charged to operations — Provision for loan losses recorded through the FDIC loss share receivable — — ) ) Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Three months ended June 30, 2015 Allowance for loan losses: Balance, March 31, 2015 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision (benefit) ) ) ) Balance, June 30, 2015 $ $ $ $ $ $ $ $ $ $ Loans individually evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Loans: Loans individually evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loans collectively evaluated for impairment Total non-acquired loans $ $ $ $ $ $ $ $ $ $ Three months ended June 30, 2014 Allowance for loan losses: Balance, March 31, 2014 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision (benefit) ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ $ $ Loans individually evaluated for impairment $ $ $ $ $ — $ $ $ $ — $ Loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Loans: Loans individually evaluated for impairment $ $ $ $ $ — $ $ $ $ — $ Loans collectively evaluated for impairment Total non-acquired loans $ $ $ $ $ $ $ $ $ $ The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Six months ended June 30, 2015 Allowance for loan losses: Balance, December 31, 2014 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision ) ) ) Balance, June 30, 2015 $ $ $ $ $ $ $ $ $ $ Six months ended June 30, 2014 Allowance for loan losses: Balance, December 31, 2013 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ $ $ The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Total Three months ended June 30, 2015 Allowance for loan losses: Balance, March 31, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — — ) ) ) — ) ) Recoveries — — — — — Provision (benefit) ) — — — — Balance, June 30, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment Total non-acquired loans $ $ $ $ $ $ $ $ $ As of June 30, 2014, the Company had not recorded an allowance for loan losses for acquired non-credit impaired loans. Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Total Six months ended June 30, 2015 Allowance for loan losses: Balance, December 31, 2014 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — — ) ) ) ) ) ) Recoveries — — Provision (benefit) ) — — Balance, June 30, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans: Commercial Commercial Loans Greater Real Estate- Than or Equal Commercial Construction and Residential Commercial (Dollars in thousands) to $1 Million-CBT Real Estate Development Real Estate Consumer and Industrial Single Pay Total Three months ended June 30, 2015 Allowance for loan losses: Balance, March 31, 2015 $ ) $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements — — — — Benefit attributable to FDIC loss share agreements — — — — — — — — Total provision for loan losses charged to operations — — — — Provision for loan losses recorded through the FDIC loss share receivable — — — — — — — — Reduction due to loan removals ) ) ) ) ) ) — ) Balance, June 30, 2015 $ ) $ $ $ $ $ $ $ Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ ) $ $ $ $ $ $ $ Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment Total acquired loans $ $ $ $ $ $ $ $ Three months ended June 30, 2014 Allowance for loan losses: Balance, March 31, 2014 $ $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements ) ) ) ) ) — ) Benefit attributable to FDIC loss share agreements — Total provision for loan losses charged to operations ) Provision for loan losses recorded through the FDIC loss share receivable ) ) ) ) — ) ) ) Reduction due to loan removals — ) ) ) ) ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ $ $ $ $ $ $ $ Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment Total acquired loans $ $ $ $ $ $ $ $ *—The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans. The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans: Commercial Commercial Loans Greater Real Estate- Than or Equal Commercial Construction and Residential Commercial (Dollars in thousands) to $1 Million-CBT Real Estate Development Real Estate Consumer and Industrial Single Pay Total Six months ended June 30, 2015 Allowance for loan losses: Balance, December 31, 2014 $ $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements — ) ) Benefit attributable to FDIC loss share agreements — — — — ) Total provision for loan losses charged to operations — — Provision for loan losses recorded through the FDIC loss share receivable — — — — ) ) ) Reduction due to loan removals ) ) ) ) ) ) ) ) Balance, June 30, 2015 $ ) $ $ $ $ $ $ $ Six months ended June 30, 2014 Allowance for loan losses: Balance, December 31, 2013 $ $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements ) ) ) ) ) ) Benefit attributable to FDIC loss share agreements ) ) Total provision for loan losses charged to operations ) ) Provision for loan losses recorded through the FDIC loss share receivable ) ) ) ) ) ) Reduction due to loan removals ) ) ) ) ) ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of the risk grades is as follows: · Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk. · Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. · Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The following table presents the credit risk profile by risk grade of commercial loans for non-acquired loans: Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Commercial & Industrial Other Income Producing Property Commercial Total June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans: Consumer Owner Occupied Home Equity Consumer June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — $ $ $ $ $ $ $ $ $ Other Consumer Total June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ Special mention — — Substandard — — — Doubtful — — — $ $ $ $ $ $ The following table presents the credit risk profile by risk grade of total non-acquired loans: Total Non-acquired Loans June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Pass $ $ $ Special mention Substandard Doubtful $ $ $ The following table presents the credit risk profile by risk grade of commercial loans for acquired non-credit impaired loans: Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Commercial & Industrial Other Income Producing Property Commercial Total June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ The following table presents the credit risk profile by risk grade of consumer loans for acquired non-credit impaired loans: Consumer Owner Occupied Home Equity Consumer June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Consumer Total June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Pass $ $ $ Special mention Substandard Doubtful — — — $ $ $ The following table presents the credit risk profile by risk grade of total acquired non-credit impaired loans: Total Acquired Non-credit Impaired Loans June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Pass $ $ $ Special mention Substandard Doubtful — — — $ $ $ The following table presents the credit risk profile by risk grade of acquired credit impaired loans (identified as credit-impaired at the time of acquisition), net of the related discount (this table should be read in conjunction with the allowance for acquired credit impaired loan losses table found on page 18): Commercial Loans Greater Than Commercial Real Estate— or Equal to $1 million-CBT Commercial Real Estate Construction and Development June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Residential Real Estate Consumer Commercial & Industrial June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Single Pay Total Acquired Credit Impaired Loans June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ Special mention — — — Substandard Doubtful — — — — — — $ $ $ $ $ $ The risk grading of acquired credit impaired loans is determined utilizing a loan’s contractual balance, while the amount recorded in the financial statements and reflected above is the carrying value. In an FDIC-assisted acquisition, covered acquired loans are initially recorded at their fair value, including a credit discount due to the high concentration of substandard and doubtful loans. In addition to the credit discount and the allowance for loan losses on covered acquired loans, the Company’s risk of loss is mitigated by the FDIC loss share arrangement. The following table presents an aging analysis of past due loans, segregated by class for non-acquired loans: Total 30-59 Days 60-89 Days 90+ Days Past Total (Dollars in thousands) Past Due Past Due Past Due Due Current Loans June 30, 2015 Commercial real estate: Construction and land development $ $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer Other loans $ $ $ $ $ $ December 31, 2014 Commercial real estate: Construction and land development $ $ $ $ $ $ Commercial non-owner occupied — Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer Other loans $ $ $ $ $ $ June 30, 2014 Commercial real estate: Construction and land development $ $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer Other loans $ $ $ $ $ $ The following table presents an aging analysis of past due loans, segregated by class for acquired non-credit impaired loans: Total 30-59 Days 60-89 Days 90+ Days Past Total (Dollars in thousands) Past Due Past Due Past Due Due Current Loans June 30, 2015 Commercial real estate: Construction and land development $ $ $ — $ $ $ Commercial non-owner occupied — — — — Commercial owner occupied — Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial — Other income producing property — Consumer $ $ $ $ $ $ December 31, 2014 Commercial real estate: Construction and land development $ $ — $ $ $ $ Commercial non-owner occupied — — — — Commercial owner occupied — Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property — Consumer $ $ $ $ $ $ June 30, 2014 Commercial real estate: Construction and land development $ — $ — $ $ $ $ Commercial non-owner occupied — — — — Commercial owner occupied — — Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial — Other income producing property — — Consumer $ $ $ $ $ $ The following table presents an aging analysis of past due loans, segregated by class for acquired credit impaired loans: Total 30-59 Days 60-89 Days 90+ Days Past Total (Dollars in thousands) Past Due Past Due Past Due Due Current Loans June 30, 2015 Commercial loans greater than or equal to $1 million-CBT $ — $ — $ $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay — — — — $ $ $ $ $ $ December 31, 2014 Commercial loans greater than or equal to $1 million-CBT $ — $ — $ $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay — — — — $ $ $ $ $ $ June 30, 2014 Commercial loans greater than or equal to $1 million-CBT $ $ — $ $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay — — — — $ $ $ $ $ $ The following is a summary of information pertaining to impaired non-acquired and acquired loans accounted for under FASB ASC Topic 310-20: Gross Unpaid Recorded Recorded Contractual Investment Investment Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance June 30, 2015 Commercial real estate: Construction and land development $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer — Other loans — — — — — Total impaired loans $ $ $ $ $ December 31, 2014 Commercial real estate: Construction and land development $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied — Home equity loans — Commercial and industrial Other income producing property Consumer — Other loans — — — — — Total impaired loans $ $ $ $ $ June 30, 2014 Commercial real estate: Construction and land development $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied — Home equity loans — — — — — Commercial and industrial Other income producing property Consumer — Other loans — — — — — Total impaired loans $ $ $ $ $ Acquired credit impaired loans are accounted for in pools as shown on page 12 rather than being individually evaluated for impairment; therefore, the table above excludes acquired credit impaired loans. The following summarizes the average investment in impaired loans, non-acquired and acquired loans accounted for under FASB ASC Topic 310-20, and interest income recognized on these loans: Three Months Ended June 30, 2015 2014 Average Average Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans — Commercial and industrial — Other income producing property Consumer — Other loans — — — — Total Impaired Loans $ $ $ $ Six Months Ended June 30, 2015 2014 Average Average Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans — — Commercial and industrial Other income producing property Consumer Other loans — — — — Total Impaired Loans $ $ $ $ The following is a summary of information pertaining to non-acquired nonaccrual loans by class, including restructured loans: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Commercial non-owner occupied real estate: Const |
FDIC Indemnification Asset
FDIC Indemnification Asset | 6 Months Ended |
Jun. 30, 2015 | |
FDIC Indemnification Asset | |
FDIC Indemnification Asset | Note 7—FDIC Indemnification Asset The following table provides changes in FDIC indemnification asset: Six Months Ended June 30, (Dollars in thousands) 2015 2014 Balance at beginning of period $ $ Decrease in expected losses on loans ) ) Additional recoveries on OREO ) ) Reimbursable expenses Amortization of discounts and premiums, net ) ) Reimbursements from FDIC ) ) Balance at end of period $ $ The FDIC indemnification asset is measured separately from the related covered assets. At June 30, 2015, the projected cash flows related to the FDIC indemnification asset for losses on assets acquired were approximately $9.9 million less than the current carrying value. This amount is being recognized as amortization (in non-interest income) over the shorter of the underlying asset’s remaining life or remaining term of the loss share agreements. Included in the FDIC indemnification asset is an expected “true up” with the FDIC related to both the BankMeridian and Plantation acquisitions. This amount is determined each reporting period and at June 30, 2015 and June 30, 2014 was estimated to be approximately $4.1 million and $3.9 million, respectively, related to the BankMeridian acquisition at the end of the loss share agreement (July 2021) and $3.1 million and $3.1 million, respectively, related to the Plantation acquisition at the end of the loss share agreement (April 2017). The actual payment to the FDIC will be determined at the end of the loss sharing agreement term for each of the five FDIC-assisted acquisitions and is based on the negative bid, expected losses, intrinsic loss estimate, and assets covered under loss share. There was no true up expected from the CBT, Cape Fear, or Habersham FDIC-assisted transactions as of June 30, 2015. Effective March 31, 2015, the Commercial Shared-Loss Agreement with the FDIC for CBT expired and losses on assets covered under this agreement are no longer claimable after filing the first quarter of 2015 commercial loss share certificate. The carrying value of commercial loans and OREO no longer covered under the CBT loss share agreement as of April 1, 2015 totaled $49.0 million and $2.2 million, respectively. These assets were transferred from the balances of loans and OREO classified as covered to non-covered. The Commercial Shared-Loss Agreement for Cape Fear expired June 30, 2014 and losses on assets covered under this agreement are no longer claimable. |
Other Real Estate Owned
Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2015 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 8—Other Real Estate Owned The following is a summary of information pertaining to OREO: Six Months Ended June 30, 2015 2014 (Dollars in thousands) OREO Covered OREO Total OREO Covered OREO Total Beginning balance $ $ $ $ $ $ Additions Transfers ) — — — — Write-downs ) ) ) ) ) ) Sold ) ) ) ) ) ) Ending balance $ $ $ $ $ $ The covered OREO above is covered pursuant to the FDIC loss share agreements and is presented net of the related fair value discount. At June 30, 2015, there were 162 properties included in OREO, with 133 uncovered and 29 covered by loss share agreements with the FDIC. At June 30, 2014, there were 401 properties included in OREO, with 200 uncovered and 201 covered by loss share agreements with the FDIC. At June 30, 2015, the Company had $3.9 million in residential real estate included in OREO and $9.7 million in residential real estate consumer mortgage loans in the process of foreclosure. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2015 | |
Deposits | |
Deposits | Note 9 — Deposits The Company’s total deposits are comprised of the following: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Certificates of deposit $ $ $ Interest-bearing demand deposits Non-interest bearing demand deposits Savings deposits Other time deposits Total deposits $ $ $ At June 30, 2015, December 31, 2014, and June 30, 2014, the Company had $133.3 million, $128.5 million, and $136.2 million in certificates of deposits greater than $250,000, respectively. At June 30, 2015, December 31, 2014, and June 30, 2014, the Company had $19.4 million, $23.4 million and $29.7 million, in traditional, out-of-market brokered deposits, respectively. |
Retirement Plans
Retirement Plans | 6 Months Ended |
Jun. 30, 2015 | |
Retirement Plans | |
Retirement Plans | Note 10 — Retirement Plans The Company and the Bank provide certain retirement benefits to their employees in the form of a non-contributory defined benefit pension plan and an employees’ savings plan. The non-contributory defined benefit pension plan covers all employees hired on or before December 31, 2005, who have attained age 21, and who have completed a year of eligible service. Employees hired on or after January 1, 2006 are not eligible to participate in the non-contributory defined benefit pension plan, but are eligible to participate in the employees’ savings plan. On this date, a new benefit formula applies only to participants who have not attained age 45 or who do not have five years of service. Effective July 1, 2009, the Company suspended the accrual of benefits for pension plan participants under the non-contributory defined benefit plan. The pension plan remained suspended as of June 30, 2015. The components of net periodic pension expense recognized are as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Interest cost $ ) $ ) $ ) $ ) Expected return on plan assets Recognized net actuarial loss ) ) ) ) Net periodic pension benefit (expense) $ $ $ $ The Company did not contribute to the pension plan for the three and six months ended June 30, 2015, and does not expect to make any additional contributions during the remainder of 2015. The plans assets currently exceed the projected benefit obligation of the plan, and no additional contributions are required for 2015. Electing employees are eligible to participate in the employees’ savings plan, under the provisions of Internal Revenue Code Section 401(k), after attaining age 21. Plan participants elect to contribute portions of their annual base compensation as a before tax contribution. Employer contributions may be made from current or accumulated net profits. Participants may elect to contribute 1% to 50% of annual base compensation as a before tax contribution. Employees participating in the plan receive a 100% matching of their 401(k) plan contribution, up to 5% of their salary. Effective January 1, 2015, employees are eligible for an additional 1% discretionary matching contribution contingent upon achievement of the Company’s 2015 financial goals and payable the first quarter of 2016. The Company expensed $1.3 million and $1.2 million for the 401(k) plan during the three months ended June 30, 2015 and 2014, respectively. The Company expensed $2.6 million and $2.4 million for the 401(k) plan during the six months ended June 30, 2015 and 2014, respectively. Employees can enter the savings plan on or after the first day of each month. The employee may enter into a salary deferral agreement at any time to select an alternative deferral amount or to elect not to defer in the plan. If the employee does not elect an investment allocation, the plan administrator will select a retirement-based portfolio according to the employee’s number of years until normal retirement age. The plan’s investment valuations are generally provided on a daily basis. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share | |
Earnings Per Share | Note 11 — Earnings Per Share Basic earnings per share are calculated by dividing net income available to common shareholders by the weighted-average shares of common stock outstanding during each period, excluding non-vested shares. The Company’s diluted earnings per share are based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted shares. The weighted-average number of shares and equivalents are determined after giving retroactive effect to stock dividends and stock splits. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended June 30, June 30, (Dollars and shares in thousands) 2015 2014 2015 2014 Basic earnings per common share: Net income available to common shareholders $ $ $ $ Weighted-average basic common shares Basic earnings per common share $ $ $ $ Diluted earnings per share: Net income available to common shareholders $ $ $ $ Weighted-average basic common shares Effect of dilutive securities Weighted-average dilutive shares Diluted earnings per common share $ $ $ $ The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive under the treasury stock method as follows: Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Number of shares Range of exercise prices $61.42-$66.32 $61.49-$66.32 $61.42 - $66.32 $61.49 - $66.32 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Share-Based Compensation | |
Share-Based Compensation | Note 12 — Share-Based Compensation The Company’s 2004 and 2012 share-based compensation programs are long-term retention programs intended to attract, retain, and provide incentives for key employees and non-employee directors in the form of incentive and non-qualified stock options, restricted stock, and restricted stock units (“RSUs”). Stock Options With the exception of non-qualified stock options granted to directors under the 2004 and 2012 plans, which in some cases may be exercised at any time prior to expiration and in some other cases may be exercised at intervals less than a year following the grant date, incentive stock options granted under the plans may not be exercised in whole or in part within a year following the date of the grant, as these incentive stock options become exercisable in 25% increments pro ratably over the four-year period following the grant date. The options are granted at an exercise price at least equal to the fair value of the common stock at the date of grant and expire ten years from the date of grant. No options were granted under the 2004 plan after January 26, 2012, and the 2004 plan is closed other than for any options still unexercised and outstanding. The 2012 plan is the only plan from which new share-based compensation grants may be issued. It is the Company’s policy to grant options out of the 1,684,000 shares registered under the 2012 plan, of which no more than 817,476 shares can be granted as restricted stock or RSUs. Activity in the Company’s stock option plans is summarized in the following table. All information has been retroactively adjusted for stock dividends and stock splits. Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Life (Yrs.) Value (000’s) Outstanding at January 1, 2015 $ Granted Exercised ) Outstanding at June 30, 2015 $ Exercisable at June 30, 2015 $ Weighted-average fair value of options granted during the year $ The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options’ vesting periods. The following weighted-average assumptions were used in valuing options issued: Six Months Ended June 30, 2015 2014 Dividend yield 1.40% 1.27% Expected life 8.5 years 6.3 years Expected volatility 40.9% 43.8%-44.7% Risk-free interest rate 1.79% 2.10% As of June 30, 2015, there was $1.1 million of total unrecognized compensation cost related to nonvested stock option grants under the plans. The cost is expected to be recognized over a weighted-average period of 1.58 years as of June 30, 2015. The total fair value of shares vested during the six months ended June 30, 2015 was $386,000. Restricted Stock The Company from time-to-time also grants shares of restricted stock to key employees and non-employee directors. These awards help align the interests of these employees and directors with the interests of the shareholders of the Company by providing economic value directly related to increases in the value of the Company’s stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expenses, equal to the total value of such awards, ratably over the vesting period of the stock grants. Restricted stock grants to employees typically “cliff vest” after four years. Grants to non-employee directors typically vest within a 12-month period. Nonvested restricted stock for the six months ended June 30, 2015 is summarized in the following table. All information has been retroactively adjusted for stock dividends and stock splits. Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2015 $ Granted Vested ) Nonvested at June 30, 2015 As of June 30, 2015, there was $5.1 million of total unrecognized compensation cost related to nonvested restricted stock granted under the plans. This cost is expected to be recognized over a weighted-average period of 2.36 years as of June 30, 2015. The total fair value of shares vested during the six months ended June 30, 2015 was $1.6 million. Restricted Stock Units The Company from time-to-time also grants performance RSUs to key employees. These awards help align the interests of these employees with the interests of the shareholders of the Company by providing economic value directly related to the performance of the Company. Performance RSU grants contain a three year performance period. The Company communicates threshold, target, and maximum performance RSU awards and performance targets to the applicable key employees at the beginning of a performance period. Dividends are not paid in respect to the awards during the performance period. The value of the RSUs awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expenses on a straight-line basis typically over three years based upon the probable performance target that will be met. For the six months ended June 30, 2015, the Company accrued for 96% of the RSUs granted, based on Management’s expectations of performance. Nonvested RSUs for the six months ended June 30, 2015 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2015 $ Granted Nonvested at June 30, 2015 As of June 30, 2015, there was $3.8 million of total unrecognized compensation cost related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted-average period of 1.48 years as of June 30, 2015. There were no shares vested during the six months ended June 30, 2015. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | Note 13 — Commitments and Contingent Liabilities In the normal course of business, the Company makes various commitments and incurs certain contingent liabilities, which are not reflected in the accompanying financial statements. The commitments and contingent liabilities include guarantees, commitments to extend credit, and standby letters of credit. At June 30, 2015, commitments to extend credit and standby letters of credit totaled $1.4 billion. The Company does not anticipate any material losses as a result of these transactions. The Company has been named as defendant in various legal actions, arising from its normal business activities, in which damages in various amounts are claimed. The Company is also exposed to litigation risk related to the prior business activities of banks acquired through whole bank acquisitions as well as banks from which assets were acquired and liabilities assumed in FDIC-assisted transactions. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, any such liability will not have a material effect on the Company’s consolidated financial statements. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value | |
Fair Value | Note 14 — Fair Value FASB ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States, and enhances disclosures about fair value measurements. FASB ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale securities, derivative contracts, and mortgage servicing rights are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans, OREO, and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1 Observable inputs such as quoted prices in active markets; Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following is a description of valuation methodologies used for assets recorded at fair value. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and The NASDAQ Stock Market, or U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of FHLB stock approximates fair value based on the redemption provisions. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at the fair market value. The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans held for sale are recurring Level 2. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At June 30, 2015, substantially all of the impaired loans were evaluated based on the fair value of the collateral because such loans were considered collateral dependent. Impaired loans, where an allowance is established based on the fair value of collateral; require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. Other Real Estate Owned (“OREO”) Typically non-covered OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, both non-covered and covered OREO are considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of OREO expense, net of any FDIC indemnification proceeds in the case of covered OREO. Derivative Financial Instruments Fair value is estimated using pricing models of derivatives with similar characteristics; accordingly, the derivatives are classified within Level 2 of the fair value hierarchy (see Note 16—Derivative Financial Instruments for additional information). Mortgage servicing rights (“MSRs”) The estimated fair value of MSRs is obtained through an independent derivatives dealer analysis of future cash flows. The evaluation utilizes assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, as well as the market’s perception of future interest rate movements. MSRs are classified as Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015: Assets Derivative financial instruments $ $ — $ $ — Loans held for sale — — Securities available for sale: Government-sponsored entities debt — — State and municipal obligations — — Mortgage-backed securities — — Corporate stocks — Total securities available for sale — Mortgage servicing rights — — $ $ $ $ Liabilities Derivative financial instruments $ $ — $ $ — December 31, 2014: Assets Derivative financial instruments $ $ — $ $ — Loans held for sale — — Securities available for sale: Government-sponsored entities debt $ $ — $ $ — State and municipal obligations — — Mortgage-backed securities — — Corporate stocks — Total securities available for sale — Mortgage servicing rights — — $ $ $ $ Liabilities Derivative financial instruments $ $ — $ $ — June 30, 2014: Assets Derivative financial instruments $ $ — $ $ — Loans held for sale — — Securities available for sale: Government-sponsored entities debt — — State and municipal obligations — — Mortgage-backed securities — — Corporate stocks — Total securities available for sale — Mortgage servicing rights — — $ $ $ $ Liabilities Derivative financial instruments $ $ — $ $ — Changes in Level 1, 2 and 3 Fair Value Measurements When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses below include changes in fair value due in part to observable factors that are part of the valuation methodology. There were no changes in hierarchy classifications of Level 3 assets or liabilities for the six months ended June 30, 2015. A reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis for the six months ended June 30, 2015 and 2014 is as follows: (Dollars in thousands) Assets Liabilities Fair value, January 1, 2015 $ $ — Servicing assets that resulted from transfers of financial assets — Changes in fair value due to valuation inputs or assumptions — Changes in fair value due to increased principal paydowns ) — Fair value, June 30, 2015 $ $ — Fair value, January 1, 2014 $ $ — Servicing assets that resulted from transfers of financial assets Changes in fair value due to valuation inputs or assumptions ) Changes in fair value due to increased principal paydowns ) — Fair value, June 30, 2014 $ $ — There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at June 30, 2015 or 2014. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis: Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015: OREO $ $ — $ — $ Non-acquired impaired loans — — December 31, 2014: OREO $ $ — $ — $ Non-acquired impaired loans — — June 30, 2014: OREO $ $ — $ — $ Non-acquired impaired loans — — Quantitative Information about Level 3 Fair Value Measurements Weighted Average June 30, December 31, June 30, Valuation Technique Unobservable Input 2015 2014 2014 Nonrecurring measurements: Impaired loans Discounted appraisals Collateral discounts % % % OREO Discounted appraisals Collateral discounts and estimated costs to sell % % % Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those models are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The use of different methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of June 30, 2015, December 31, 2014 and June 30, 2014. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents — The carrying amount is a reasonable estimate of fair value. Investment Securities — Securities held to maturity are valued at quoted market prices or dealer quotes. The carrying value of FHLB stock approximates fair value based on the redemption provisions. The carrying value of the Company’s investment in unconsolidated subsidiaries approximates fair value. See Note 5—Investment Securities for additional information, as well as page 37 regarding fair value. Loans held for sale — The fair values disclosed for loans held for sale are based on commitments from investors for loans with similar characteristics. Loans — For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (e.g., one-to-four family residential) and other consumer loans are estimated using discounted cash flow analyses based on the Company’s current rates offered for new loans of the same type, structure and credit quality. Fair values for other loans (e.g., commercial real estate and investment property mortgage loans, commercial and industrial loans) are estimated using discounted cash flow analyses, using interest rates currently being offered by the Company for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. FDIC Receivable for Loss Share Agreements — The fair value is estimated based on discounted future cash flows using current discount rates. Deposit Liabilities — The fair values disclosed for demand deposits (e.g., interest and non-interest bearing checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts, and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal Funds Purchased and Securities Sold Under Agreements to Repurchase — The carrying amount of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings maturing within ninety days approximate their fair values. Other Borrowings — The fair value of other borrowings is estimated using discounted cash flow analysis on the Company’s current incremental borrowing rates for similar types of instruments. Accrued Interest — The carrying amounts of accrued interest approximate fair value. Derivative Financial Instruments — The fair value of derivative financial instruments (including interest rate swaps) is estimated using pricing models of derivatives with similar characteristics. Commitments to Extend Credit, Standby Letters of Credit and Financial Guarantees — The fair values of commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of guarantees and letters of credit are based on fees currently charged for similar agreements or on the estimated costs to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair value, and related carrying amount, of the Company’s financial instruments are as follows: Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 June 30, 2015 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities — Loans held for sale — — Loans, net of allowance for loan losses — — FDIC receivable for loss share agreements — — Accrued interest receivable — Mortgage servicing rights — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Financial liabilities: Deposits — — Federal funds purchased and securities sold under agreements to repurchase — — Other borrowings — — Accrued interest payable — — Interest rate swap — cash flow hedge — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Off balance sheet financial instruments: Commitments to extend credit — — — Standby letters of credit and financial guarantees — — — — — December 31, 2014 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities — Loans held for sale — — Loans, net of allowance for loan losses — — FDIC receivable for loss share agreements — — Accrued interest receivable — Mortgage servicing rights — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Financial liabilities: Deposits — — Federal funds purchased and securities sold under agreements to repurchase — — Other borrowings — — Accrued interest payable — — Interest rate swap — cash flow hedge — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Off balance sheet financial instruments: Commitments to extend credit — — — Standby letters of credit and financial guarantees — — — — — Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 June 30, 2014 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities — Loans held for sale — — — Loans, net of allowance for loan losses — — FDIC receivable for loss share agreements — — Accrued interest receivable — Mortgage servicing rights — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Financial liabilities: Deposits — — Federal funds purchased and securities sold under agreements to repurchase — — Other borrowings — — Accrued interest payable — — Interest rate swap — cash flow hedge — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) Off balance sheet financial instruments: Commitments to extend credit — — — Standby letters of credit and financial guarantees — — — — — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Inocme (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 15 — Accumulated Other Comprehensive Income (Loss) The changes in each components of accumulated other comprehensive income (loss), net of tax, were as follows: Unrealized Gains and Losses Gains and on Securities Losses on Benefit Available Cash Flow (Dollars in thousands) Plans for Sale Hedges Total Three months ended June 30, 2015 Balance at March 31, 2015 $ ) $ $ ) $ Other comprehensive income (loss) before reclassifications — ) ) Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) ) ) Balance at June 30, 2015 $ ) $ $ ) $ ) Three months ended June 30, 2014 Balance at March 31, 2014 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from accumulated other comprehensive income (loss) ) Net other comprehensive income (loss) ) Balance at June 30, 2014 $ ) $ $ ) $ Six months ended June 30, 2015 Balance at December 31, 2014 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) ) ) Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) ) ) Balance at June 30, 2015 $ ) $ $ ) $ ) Six months ended June 30, 2014 Balance at December 31, 2013 $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from accumulated other comprehensive income (loss) ) Net other comprehensive income (loss) ) Balance at June 30, 2014 $ ) $ $ ) $ The table below presents the reclassifications out of accumulated other comprehensive income (loss), net of tax: (Dollars in thousands) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Three Months Ended June 30, Six Months Ended June 30, Income (Loss) Component 2015 2014 2015 2014 Income Statement Line Item Affected Gains and losses on cash flow hedges: Interest rate contracts $ $ $ $ Interest expense ) ) ) ) Provision for income taxes Net income Gains on sales of available for sale securities: — ) — ) Other noninterest income — — Provision for income taxes — ) — ) Net income Amortization of defined benefit pension items: Actuarial losses Salaries and employee benefits ) ) ) ) Provision for income taxes Net income Total reclassifications for the period $ $ $ $ |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 16 — Derivative Financial Instruments Cash Flow Hedge of Interest Rate Risk The Company utilizes this interest rate swap agreement to convert a portion of its variable-rate debt to a fixed rate (cash flow hedge). During 2009, the Company entered into a forward starting interest rate swap agreement with a notional amount of $8.0 million to manage interest rate risk due to periodic rate resets on its junior subordinated debt issued by SCBT Capital Trust II, an unconsolidated subsidiary of the Company established for the purpose of issuing trust preferred securities. The Company hedges the variable rate cash flows of subordinated debt against future interest rate increases by using an interest rate swap that effectively fixed the rate on the debt beginning on June 15, 2010, at which time the debt contractually converted from a fixed interest rate to a variable interest rate. This hedge expires on June 15, 2019. The notional amount on which the interest payments are based will not be exchanged. This derivatives contract calls for the Company to pay a fixed rate of 4.06% on $8.0 million notional amount and receive a variable rate of three-month LIBOR on the $8.0 million notional amount. The Company recognized an after-tax unrealized gain on its cash flow hedge in other comprehensive income of $58,000 and $30,000 for the three and six months ended June 30, 2015, respectively, compared to an after-tax unrealized gain on its cash flow hedge in other comprehensive income of $21,000 and $18,000 for the three and six months ended June 30, 2014, respectively. The Company recognized an $806,000 cash flow hedge liability in other liabilities on the balance sheet at June 30, 2015, compared to a $942,000 liability recognized at June 30, 2014. There was no ineffectiveness in the cash flow hedge during the three and six months ended June 30, 2015 and 2014. Credit risk related to the derivative arises when amounts receivable from the counterparty (derivatives dealer) exceed those payable. The Company controls the risk of loss by only transacting with derivatives dealers that are national market makers whose credit ratings are strong. Each party to the interest rate swap is required to provide collateral in the form of cash or securities to the counterparty when the counterparty’s exposure to a mark-to-market replacement value exceeds certain negotiated limits. These limits are typically based on current credit ratings and vary with ratings changes. As of June 30, 2015 and 2014, the Company provided $850,000 and $1.1 million of collateral, respectively, which is included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. Also, the Company has a netting agreement with the counterparty. Non-designated Hedges of Interest Rate Risk Customer Swap As of June 30, 2015, the Company has two interest rate swap contracts that were classified as non-designated hedges that were acquired through the merger transaction with Savannah. These derivatives are not designated as hedges and are not speculative in nature. One of the derivatives is an interest rate swap that was executed with a commercial borrower to facilitate a respective risk management strategy and allow the customer to pay a fixed rate of interest to the Company. This interest rate swap was simultaneously hedged by executing an offsetting interest rate swap that was entered into with a derivatives dealer to minimize the net risk exposure to the Company resulting from the transactions and allow the Company to receive a variable rate of interest. The interest rate swap contract with the commercial borrower requires the borrower to pay or receive from the Company an amount equal to and offsetting the value of the interest rate swap. If the commercial borrower fails to perform and the market value for the interest rate swap with the derivatives dealer is negative (net liability position), the Company would be obligated to pay the settlement amount for the financial derivative with the dealer. If the market value for the interest rate swap with the derivatives dealer is positive (net asset position), the Company would receive a payment for the settlement amount for the financial derivative with the dealer. The settlement amount is determined by the fluctuation of interest rates. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2015, the interest rate swaps had an aggregate notional amount of approximately $3.9 million and the fair value of these two interest rate swap derivatives are recorded in other assets and in other liabilities for $156,000 on the balance sheet. The net effect of recording the derivatives at fair value through earnings was immaterial to the Company’s financial condition and results of operations during 2015. The Company also has an agreement with the derivatives dealer in this transaction that contains a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on this derivatives obligation. As of June 30, 2015, the fair value of the interest rate swap derivative with the derivatives dealer was in a net liability position of $156,000, which excludes any adjustment for nonperformance risk, related to these agreements. As of June 30, 2015, the Company provided $355,000 of collateral, which is included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. If the Company had breached any of these provisions at June 30, 2015, it would have been required to settle its obligations under the agreement at the termination value, $162,000. Mortgage Banking The Company also has derivatives contracts that are classified as non-designated hedges. These derivatives contracts are a part of the Company’s risk management strategy for its mortgage banking activities. These instruments may include financial forwards, futures contracts, and options written and purchased, which are used to hedge mortgage servicing rights; while when-issued securities are typically used to hedge the mortgage pipeline. Such instruments derive their cash flows, and therefore their values, by reference to an underlying instrument, index or referenced interest rate. The Company does not elect hedge accounting treatment for any of these derivative instruments and as a result, changes in fair value of the instruments (both gains and losses) are recorded in the Company’s consolidated statements of income in mortgage banking income. Mortgage Servicing Rights Derivatives contracts related to mortgage servicing rights are used to help offset changes in fair value and are written in amounts referred to as notional amounts. Notional amounts provide a basis for calculating payments between counterparties but do not represent amounts to be exchanged between the parties, and are not a measure of financial risk. On June 30, 2015, the Company had derivative financial instruments outstanding with notional amounts totaling $91.0 million related to mortgage servicing rights. The estimated net fair value of the open contracts related to the mortgage servicing rights was recorded as a loss of $266,000 at June 30, 2015. Mortgage Pipeline The following table presents the Company’s notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline. (Dollars in thousands) June 30, 2015 December 31, 2014 June 30, 2014 Mortgage loan pipeline $ $ $ Expected closures Fair Value of mortgage loan pipeline commitments Forward commitments Fair value of forward commitments ) ) |
Capital Ratios
Capital Ratios | 6 Months Ended |
Jun. 30, 2015 | |
Capital Ratios | |
Capital Ratios | Note 17 — Capital Ratios The Company is subject to regulations with respect to certain risk-based capital ratios. These risk-based capital ratios measure the relationship of capital to a combination of balance sheet and off-balance sheet risks. The values of both balance sheet and off-balance sheet items are adjusted based on the rules to reflect categorical credit risk. In addition to the risk-based capital ratios, the regulatory agencies have also established a leverage ratio for assessing capital adequacy. The leverage ratio is equal to Tier 1 capital divided by total consolidated on-balance sheet assets (minus amounts deducted from Tier 1 capital). The leverage ratio does not involve assigning risk weights to assets. In July 2013, the Federal Reserve announced its approval of a final rule to implement the regulatory capital reforms developed by the Basel Committee on Banking Supervision (“Basel III”), among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new rules became effective January 1, 2015, subject to a phase-in period for certain aspects of the new rules. As applied to the Company and the Bank, the new rules include a new minimum ratio of common equity Tier 1 capital (“CET1”) to risk-weighted assets of 4.5%. The new rules also raise the minimum required ratio of Tier 1 capital to risk-weighted assets from 4% to 6%. The minimum required leverage ratio under the new rules is 4%. The minimum required total capital to risk-weighted assets ratio remains at 8% under the new rules. In order to avoid restrictions on capital distributions and discretionary bonus payments to executives, under the new rules a covered banking organization will also be required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer will be required to consist solely of common equity Tier 1, and the buffer will apply to all three risk-based measurements (CET1, Tier 1 capital and total capital). The capital conservation buffer will be phased in incrementally over time, beginning January 1, 2016 and becoming fully effective on January 1, 2019, and will ultimately consist of an additional amount of Tier 1 common equity equal to 2.5% of risk-weighted assets. The Bank is also subject to the regulatory framework for prompt corrective action, which identifies five capital categories for insured depository institutions (well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized) and is based on specified thresholds for each of the three risk-based regulatory capital ratios (CET1, Tier 1 capital and total capital) and for the leverage ratio. The following table presents actual and required capital ratios as of June 30, 2015 for the Company and the Bank under the Basel III capital rules. The minimum required capital amounts presented include the minimum required capital levels as of June 30, 2015 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required to be Required - Basel III Required - Basel III Considered Well Actual Phase-In Schedule Fully Phased-In Capitalized Capital Capital Capital Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2015 Common equity Tier 1 to risk-weighted assets: Consolidated $ % $ % $ % $ % South State Bank (the Bank) % % % % Tier 1 capital to risk-weighted assets: Consolidated % % % % South State Bank (the Bank) % % % % Total capital to risk-weighted assets: Consolidated % % % % South State Bank (the Bank) % % % % Tier 1 capital to average assets (leverage ratio): Consolidated % % % % South State Bank (the Bank) % % % % The following table presents actual and required capital ratios as of December 31, 2014 and June 30, 2014 under the regulatory capital rules then in effect. Required to be Minimum Capital Considered Well Actual Requirement Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2014 Tier 1 capital to risk-weighted assets: Consolidated $ % $ % n/a n/a South State Bank (the Bank) % % % Total capital to risk-weighted assets: Consolidated % % n/a n/a South State Bank (the Bank) % % % Tier 1 capital to average assets (leverage ratio): Consolidated % % n/a n/a South State Bank (the Bank) % % % June 30, 2014 Tier 1 capital to risk-weighted assets: Consolidated $ % $ % n/a n/a South State Bank (the Bank) % % % Total capital to risk-weighted assets: Consolidated % % n/a n/a South State Bank (the Bank) % % % Tier 1 capital to average assets (leverage ratio): Consolidated % % n/a n/a South State Bank (the Bank) % % % As of June 30, 2015, December 31, 2014, and June 30, 2014, the capital ratios of the Company and the Bank were well in excess of the minimum regulatory requirements and exceeded the thresholds for the “well capitalized” regulatory classification. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 18—Goodwill and Other Intangible Assets The carrying amount of goodwill was $317.7 million at June 30, 2015. The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet. The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets: June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Gross carrying amount $ $ $ Accumulated amortization ) ) ) $ $ $ Amortization expense totaled $2.0 million and $4.0 million for the three and six months ended June 30, 2015, respectively. Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between two and 15 years. Estimated amortization expense for other intangibles for each of the next five quarters is as follows: (Dollars in thousands) Quarters ending: September 30, 2015 $ December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 Thereafter $ |
Loan Servicing, Mortgage Origin
Loan Servicing, Mortgage Origination, and Loans Held for Sale | 6 Months Ended |
Jun. 30, 2015 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | Note 19 — Loan Servicing, Mortgage Origination, and Loans Held for Sale As of June 30, 2015, December 31, 2014, and June 30, 2014, the portfolio of residential mortgages serviced for others, which is not included in the accompanying balance sheets, was $2.5 billion, $2.3 billion, and $2.2 billion, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amount of contractually specified servicing fees earned by the Company during the three and six months ended June 30, 2015 and June 30, 2014 was $1.5 million and $3.0 million, and $1.4 million and $2.7 million, respectively. Servicing fees are recorded in mortgage banking income in the Company’s consolidated statements of income. At June 30, 2015, December 31, 2014, and June 30, 2014, mortgage servicing rights (“MSRs”) were $25.3 million, $21.6 million, and $21.0 million on the Company’s consolidated balance sheets, respectively. MSRs are recorded at fair value with changes in fair value recorded as a component of mortgage banking income in the consolidated statements of income. The market value adjustments related to MSRs recorded in mortgage banking income for the three and six months ended June 30, 2015 were gains of $2.4 million and $1.5 million, respectively, compared to losses for the three and six months ended June 30, 2014 of $483,000 and $692,000, respectively. Since the merger with FFHI, the Company has used various free standing derivative instruments to mitigate the income statement effect of changes in fair value due to changes in market value adjustments and to changes in valuation inputs and assumptions related to MSRs. The following table presents the changes in the fair value of MSRs and the offsetting hedge. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Increase (decrease) in fair value of MSRs $ $ ) $ $ ) Decay of MSRs ) ) ) ) Gains (losses) related to derivatives ) Net effect on Statements of Income $ $ $ $ The fair value of MSRs is highly sensitive to changes in assumptions and fair value is determined by estimating the present value of the asset’s future cash flows utilizing market-based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and with the use of independent third party appraisals. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of the MSR. During the first half of 2015, interest rates increased and prepayments slowed, which has resulted in an increase in the fair value of the MSR. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different time. See Note 14—Fair Value for additional information regarding fair value. The characteristics and sensitivity analysis of the MSR are included in the following table. June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Composition of residential loans serviced for others Fixed-rate mortgage loans % % % Adjustable-rate mortgage loans % % % Total % % % Weighted average life 7.38 years 6.30 years 6.01 years Constant prepayment rate % % % Weighted average discount rate % % % Effect on fair value due to change in interest rates: 25 basis point increase $ $ $ 50 basis point increase 25 basis point decrease ) ) ) 50 basis point decrease ) ) ) The sensitivity calculations in the previous table are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, the effects of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumptions, while in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change. Custodial escrow balances maintained in connection with the loan servicing were $17.8 million and $15.6 million at June 30, 2015 and June 30, 2014, respectively. Mandatory cash forwards and whole loan sales were $259.0 million and $455.0 million for the three and six months ended June 30, 2015, respectively, compared to $154.6 million and $270.3 million for the three and six months ended June 30, 2014, respectively. For the three and six months ended June 30, 2015, $204.0 million and $351.1 million, or 78.8% and 77.2%, respectively, were sold with the servicing rights retained by the company compared to $128.2 million and $216.0 million, or 82.9% and 80.0%, for the three and six months ended June 30, 2014, respectively. Loans held for sale have historically been comprised of residential mortgage loans awaiting sale in the secondary market, which generally settle in 15 to 45 days. Loans held for sale, which consists primarily of residential mortgage loans to be sold in the secondary market, were $73.1 million, $61.9 million, and $56.4 million at June 30, 2015, December 31, 2014, and June 30, 2014, respectively. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Projects | 6 Months Ended |
Jun. 30, 2015 | |
Investment In Qualified Affordable Housing Projects. | |
Investment in Qualified Affordable Housing Projects | Note 20 — Investments in Qualified Affordable Housing Projects The Company has investments in qualified affordable housing projects (“QAHPs”) that provide low income housing tax credits and operating loss benefits over an extended period. The tax credits and the operating loss tax benefits that are generated by each of the properties are expected to exceed the total value of the investment made by the Company. For the six months ended June 30, 2015, tax credits and other tax benefits of $918,000 and the Company’s share of book losses of $655,000 were recorded. For the six months ended June 30, 2014, the Company recorded tax credits and other tax benefits of $713,000 and the Company’s share of book losses of $304,000. At June 30, 2015 and 2014, the Company’s carrying value of QAHPs was $12.7 million and $14.4 million, respectively, with an original investment of $22.1 million. The Company has $1.7 million and $7.6 million in remaining funding obligations related to these QAHPs recorded in liabilities at June 30, 2015 and 2014, respectively. None of the original investment will be repaid. The investment in QAHPs is being accounted for using the equity method. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Repurchase Agreements | |
Repurchase Agreements | Note 21 — Repurchase Agreements Securities sold under agreements to repurchase (“repurchase agreements”) represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. Repurchase agreements are subject to terms and conditions of the master repurchase agreements between the Company and the client and are accounted for as secured borrowings. Repurchase agreements are included in federal funds purchased and securities sold under agreements to repurchase on the condensed consolidated balance sheets. At June 30, 2015, December 31, 2014 and June 30, 2014, the Company’s repurchase agreements totaled $228.7 million, $160.9 million, and $193.2 million, respectively. All of the Company’s repurchase agreements were overnight or continuous (until-further-notice) agreements at June 30, 2015, December 31, 2014, and June 30, 2014. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a carrying value of $228.7 million, $160.8 million and $193.2 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively. Declines in the value of the collateral would require the Company to increase the amounts of securities pledged. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events | |
Subsequent Events | Note 22 — Subsequent Events Branch Initiatives - Update On April 22, 2015, the Bank entered into a Purchase Agreement to purchase twelve South Carolina branch locations and one Georgia branch location from Bank of America, N.A. The branches are located in Florence, Greenwood, Orangeburg, Sumter, Newberry, Batesburg-Leesville, Abbeville and Hartsville, South Carolina, as well as Hartwell, Georgia. As a result of the transaction, the Bank will enter into six new markets and three markets which overlap. The Company will pay a 5.5% deposit premium on the 30-day average closing balance of deposits prior to closing. The Company expects the transaction to close on or around August 21, 2015, subject to customary closing conditions. All regulatory approvals have been received. The Company is also consolidating or selling fourteen branches and ATM locations. Eight of these locations were consolidated during the second quarter and the remaining six will be consolidated or sold during the last half of 2015. The Company has entered into a contract to sell two of the fourteen branches, and expects to receive a 3.5% deposit premium on the 30- day average closing balance of deposits prior to closing. The sale is expected to close in the fourth quarter of 2015, subject to regulatory approval and other customary closing conditions. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities held to maturity | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value June 30, 2015: State and municipal obligations $ $ $ — $ December 31, 2014: State and municipal obligations $ $ $ — $ June 30, 2014: State and municipal obligations $ $ $ — $ |
Schedule of amortized cost and fair value of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value June 30, 2015: Government-sponsored entities debt * $ $ $ ) State and municipal obligations ) Mortgage-backed securities ** ) Corporate stocks ) $ $ $ ) $ December 31, 2014: Government-sponsored entities debt * $ $ $ ) $ State and municipal obligations ) Mortgage-backed securities ** ) Corporate stocks ) $ $ $ ) $ June 30, 2014: Government-sponsored entities debt * $ $ $ ) State and municipal obligations ) Mortgage-backed securities ** ) Corporate stocks ) $ $ $ ) $ * - The Company’s government-sponsored entities holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”). Also included in the Company’s government-sponsored entities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. ** - All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. |
Schedule of amortized cost and fair value of other investment securities | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value June 30, 2015: Federal Home Loan Bank stock $ $ — $ — $ Investment in unconsolidated subsidiaries — — $ $ — $ — $ December 31, 2014: Federal Home Loan Bank stock $ $ — $ — $ Investment in unconsolidated subsidiaries — — $ $ — $ — $ June 30, 2014: Federal Home Loan Bank stock $ $ — $ — $ Investment in unconsolidated subsidiaries — — $ $ — $ — $ |
Schedule of amortized cost and fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities at June 30, 2015 by contractual maturity are detailed below. Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ $ $ $ Due after one year through five years Due after five years through ten years Due after ten years — — $ $ $ $ |
Schedule of securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value June 30, 2015: Securities Available for Sale Government-sponsored entities debt $ $ $ $ State and municipal obligations Mortgage-backed securities Corporate Stocks — — $ $ $ $ December 31, 2014: Securities Available for Sale Government-sponsored entities debt $ $ $ $ State and municipal obligations Mortgage-backed securities Corporate stocks — — $ $ $ $ June 30, 2014: Securities Available for Sale Government-sponsored entities debt $ $ $ $ State and municipal obligations Mortgage-backed securities Corporate stocks — — $ $ $ $ |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance for Loan Losses | |
Schedule of changes in allowance for loan losses | Acquired Acquired Non-acquired Non-credit Credit Impaired (Dollars in thousands) Loans Impaired Loans Loans Total Three months ended June 30, 2015: Balance at beginning of period $ $ — $ $ Loans charged-off ) ) — ) Recoveries of loans previously charged off — Net charge-offs ) ) — ) Provision (benefit) for loan losses Benefit attributable to FDIC loss share agreements — — — — Total provision for loan losses charged to operations Provision for loan losses recorded through the FDIC loss share receivable — — — — Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ Three months ended June 30, 2014: Balance at beginning of period $ $ — $ $ Loans charged-off ) — — ) Recoveries of loans previously charged off — — Net charge-offs ) — — ) Provision for loan losses — ) Benefit attributable to FDIC loss share agreements — — Total provision for loan losses charged to operations — Provision for loan losses recorded through the FDIC loss share receivable — — ) ) Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ Six months ended June 30, 2015: Balance at beginning of period $ $ — $ $ Loans charged-off ) ) — ) Recoveries of loans previously charged off — Net charge-offs ) ) — ) Provision (benefit) for loan losses Benefit attributable to FDIC loss share agreements — — Total provision for loan losses charged to operations Provision for loan losses recorded through the FDIC loss share receivable — — ) ) Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ Six months ended June 30, 2014: Balance at beginning of period $ $ — $ $ Loans charged-off ) — — ) Recoveries of loans previously charged off — — Net charge-offs ) — — ) Provision for loan losses — ) Benefit attributable to FDIC loss share agreements — — Total provision for loan losses charged to operations — Provision for loan losses recorded through the FDIC loss share receivable — — ) ) Reduction due to loan removals — — ) ) Balance at end of period $ $ — $ $ |
Non-Credit impaired | |
Loans and Allowance for Loan Losses | |
Summary of information pertaining to impaired loans | Gross Unpaid Recorded Recorded Contractual Investment Investment Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance June 30, 2015 Commercial real estate: Construction and land development $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer — Other loans — — — — — Total impaired loans $ $ $ $ $ December 31, 2014 Commercial real estate: Construction and land development $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied — Home equity loans — Commercial and industrial Other income producing property Consumer — Other loans — — — — — Total impaired loans $ $ $ $ $ June 30, 2014 Commercial real estate: Construction and land development $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied — Home equity loans — — — — — Commercial and industrial Other income producing property Consumer — Other loans — — — — — Total impaired loans $ $ $ $ $ |
Summary of average investment in impaired loans and interest income recognized on impaired loans | Three Months Ended June 30, 2015 2014 Average Average Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans — Commercial and industrial — Other income producing property Consumer — Other loans — — — — Total Impaired Loans $ $ $ $ Six Months Ended June 30, 2015 2014 Average Average Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans — — Commercial and industrial Other income producing property Consumer Other loans — — — — Total Impaired Loans $ $ $ $ |
Non-acquired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ $ $ Commercial non-owner occupied Total commercial non-owner occupied real estate Consumer real estate: Consumer owner occupied Home equity loans Total consumer real estate Commercial owner occupied real estate Commercial and industrial Other income producing property Consumer Other loans Total non-acquired loans Less allowance for loan losses ) ) ) Non-acquired loans, net $ $ $ |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Three months ended June 30, 2015 Allowance for loan losses: Balance, March 31, 2015 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision (benefit) ) ) ) Balance, June 30, 2015 $ $ $ $ $ $ $ $ $ $ Loans individually evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Loans: Loans individually evaluated for impairment $ $ $ $ $ $ $ $ $ — $ Loans collectively evaluated for impairment Total non-acquired loans $ $ $ $ $ $ $ $ $ $ Three months ended June 30, 2014 Allowance for loan losses: Balance, March 31, 2014 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision (benefit) ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ $ $ Loans individually evaluated for impairment $ $ $ $ $ — $ $ $ $ — $ Loans collectively evaluated for impairment $ $ $ $ $ $ $ $ $ $ Loans: Loans individually evaluated for impairment $ $ $ $ $ — $ $ $ $ — $ Loans collectively evaluated for impairment Total non-acquired loans $ $ $ $ $ $ $ $ $ $ Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Six months ended June 30, 2015 Allowance for loan losses: Balance, December 31, 2014 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision ) ) ) Balance, June 30, 2015 $ $ $ $ $ $ $ $ $ $ Six months ended June 30, 2014 Allowance for loan losses: Balance, December 31, 2013 $ $ $ $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) ) ) ) — ) Recoveries — Provision ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ $ $ |
Schedule of credit risk profile by risk grade of loans | Total Non-acquired Loans June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Pass $ $ $ Special mention Substandard Doubtful $ $ $ |
Aging analysis of past due loans, segregated by class of loans | Total 30-59 Days 60-89 Days 90+ Days Past Total (Dollars in thousands) Past Due Past Due Past Due Due Current Loans June 30, 2015 Commercial real estate: Construction and land development $ $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer Other loans $ $ $ $ $ $ December 31, 2014 Commercial real estate: Construction and land development $ $ $ $ $ $ Commercial non-owner occupied — Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer Other loans $ $ $ $ $ $ June 30, 2014 Commercial real estate: Construction and land development $ $ $ $ $ $ Commercial non-owner occupied Commercial owner occupied Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property Consumer Other loans $ $ $ $ $ $ |
Summary of information pertaining to nonaccrual loans by class | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Commercial non-owner occupied real estate: Construction and land development $ $ $ Commercial non-owner occupied Total commercial non-owner occupied real estate Consumer real estate: Consumer owner occupied Home equity loans Total consumer real estate Commercial owner occupied real estate Commercial and industrial Other income producing property Consumer Other loans — — — Restructured loans Total loans on nonaccrual status $ $ $ |
Non-acquired loans | Commercial loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Commercial & Industrial Other Income Producing Property Commercial Total June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ |
Non-acquired loans | Consumer loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Consumer Owner Occupied Home Equity Consumer June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — $ $ $ $ $ $ $ $ $ Other Consumer Total June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ Special mention — — Substandard — — — Doubtful — — — $ $ $ $ $ $ |
Acquired loans | Non-Credit impaired | |
Loans and Allowance for Loan Losses | |
Summary of loans | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 FASB ASC Topic 310-20 acquired loans: Commercial non-owner occupied real estate: Construction and land development $ $ $ Commercial non-owner occupied Total commercial non-owner occupied real estate Consumer real estate: Consumer owner occupied Home equity loans Total consumer real estate Commercial owner occupied real estate Commercial and industrial Other income producing property Consumer Total FASB ASC Topic 310-20 acquired loans $ $ $ |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Total Three months ended June 30, 2015 Allowance for loan losses: Balance, March 31, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — — ) ) ) — ) ) Recoveries — — — — — Provision (benefit) ) — — — — Balance, June 30, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment Total non-acquired loans $ $ $ $ $ $ $ $ $ |
Schedule of credit risk profile by risk grade of loans | Total Acquired Non-credit Impaired Loans June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Pass $ $ $ Special mention Substandard Doubtful — — — $ $ $ |
Aging analysis of past due loans, segregated by class of loans | Total 30-59 Days 60-89 Days 90+ Days Past Total (Dollars in thousands) Past Due Past Due Past Due Due Current Loans June 30, 2015 Commercial real estate: Construction and land development $ $ $ — $ $ $ Commercial non-owner occupied — — — — Commercial owner occupied — Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial — Other income producing property — Consumer $ $ $ $ $ $ December 31, 2014 Commercial real estate: Construction and land development $ $ — $ $ $ $ Commercial non-owner occupied — — — — Commercial owner occupied — Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial Other income producing property — Consumer $ $ $ $ $ $ June 30, 2014 Commercial real estate: Construction and land development $ — $ — $ $ $ $ Commercial non-owner occupied — — — — Commercial owner occupied — — Consumer real estate: Consumer owner occupied Home equity loans Commercial and industrial — Other income producing property — — Consumer $ $ $ $ $ $ |
Summary of information pertaining to nonaccrual loans by class | June 30, December 31, (Dollars in thousands) 2015 2014 Commercial non-owner occupied real estate: Construction and land development $ — $ Commercial non-owner occupied Total commercial non-owner occupied real estate Consumer real estate: Consumer owner occupied Home equity loans Total consumer real estate Commercial owner occupied real estate Commercial and industrial Other income producing property Consumer Restructured loans — — Total loans on nonaccrual status $ $ |
Acquired loans | Non-Credit impaired | Commercial loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Commercial & Industrial Other Income Producing Property Commercial Total June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ |
Acquired loans | Non-Credit impaired | Consumer loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Consumer Owner Occupied Home Equity Consumer June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Consumer Total June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Pass $ $ $ Special mention Substandard Doubtful — — — $ $ $ |
Acquired loans | Credit impaired | |
Loans and Allowance for Loan Losses | |
Summary of loans | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 FASB ASC Topic 310-30 acquired loans: Commercial loans greater than or equal to $1 million-CBT $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay Total FASB ASC Topic 310-30 acquired loans Less allowance for loan losses ) ) ) FASB ASC Topic 310-30 acquired loans, net $ $ $ |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Contractual principal and interest $ $ $ Non-accretable difference ) ) ) Cash flows expected to be collected Accretable yield ) ) ) Carrying value $ $ $ Allowance for acquired loan losses $ ) $ ) $ ) |
Schedule of changes in the carrying value | Six Months Ended June 30, (Dollars in thousands) 2015 2014 Balance at beginning of period $ $ Net reductions for payments, foreclosures, and accretion ) ) Change in the allowance for loan losses on acquired loans Balance at end of period, net of allowance for loan losses on acquired loans $ $ |
Schedule of refined accretable yield balance | Six Months Ended June 30, (Dollars in thousands) 2015 2014 Balance at beginning of period $ $ Accretion ) ) Reclass of nonaccretable difference due to improvement in expected cash flows Other changes, net ) ) Balance at end of period $ $ |
Schedule of changes in allowance for loan losses | Commercial Commercial Loans Greater Real Estate- Than or Equal Commercial Construction and Residential Commercial (Dollars in thousands) to $1 Million-CBT Real Estate Development Real Estate Consumer and Industrial Single Pay Total Three months ended June 30, 2015 Allowance for loan losses: Balance, March 31, 2015 $ ) $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements — — — — Benefit attributable to FDIC loss share agreements — — — — — — — — Total provision for loan losses charged to operations — — — — Provision for loan losses recorded through the FDIC loss share receivable — — — — — — — — Reduction due to loan removals ) ) ) ) ) ) — ) Balance, June 30, 2015 $ ) $ $ $ $ $ $ $ Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ ) $ $ $ $ $ $ $ Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment Total acquired loans $ $ $ $ $ $ $ $ Three months ended June 30, 2014 Allowance for loan losses: Balance, March 31, 2014 $ $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements ) ) ) ) ) — ) Benefit attributable to FDIC loss share agreements — Total provision for loan losses charged to operations ) Provision for loan losses recorded through the FDIC loss share receivable ) ) ) ) — ) ) ) Reduction due to loan removals — ) ) ) ) ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ $ $ $ $ $ $ $ Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment Total acquired loans $ $ $ $ $ $ $ $ *—The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans. Commercial Commercial Loans Greater Real Estate- Than or Equal Commercial Construction and Residential Commercial (Dollars in thousands) to $1 Million-CBT Real Estate Development Real Estate Consumer and Industrial Single Pay Total Six months ended June 30, 2015 Allowance for loan losses: Balance, December 31, 2014 $ $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements — ) ) Benefit attributable to FDIC loss share agreements — — — — ) Total provision for loan losses charged to operations — — Provision for loan losses recorded through the FDIC loss share receivable — — — — ) ) ) Reduction due to loan removals ) ) ) ) ) ) ) ) Balance, June 30, 2015 $ ) $ $ $ $ $ $ $ Six months ended June 30, 2014 Allowance for loan losses: Balance, December 31, 2013 $ $ $ $ $ $ $ $ Provision for loan losses before benefit attributable to FDIC loss share agreements ) ) ) ) ) ) Benefit attributable to FDIC loss share agreements ) ) Total provision for loan losses charged to operations ) ) Provision for loan losses recorded through the FDIC loss share receivable ) ) ) ) ) ) Reduction due to loan removals ) ) ) ) ) ) ) Balance, June 30, 2014 $ $ $ $ $ $ $ $ |
Schedule of credit risk profile by risk grade of loans | Commercial Loans Greater Than Commercial Real Estate— or Equal to $1 million-CBT Commercial Real Estate Construction and Development June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Residential Real Estate Consumer Commercial & Industrial June 30, December 31, June 30, June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ $ $ $ Special mention Substandard Doubtful — — — — — — — — — $ $ $ $ $ $ $ $ $ Single Pay Total Acquired Credit Impaired Loans June 30, December 31, June 30, June 30, December 31, June 30, 2015 2014 2014 2015 2014 2014 Pass $ $ $ $ $ $ Special mention — — — Substandard Doubtful — — — — — — $ $ $ $ $ $ |
Aging analysis of past due loans, segregated by class of loans | Total 30-59 Days 60-89 Days 90+ Days Past Total (Dollars in thousands) Past Due Past Due Past Due Due Current Loans June 30, 2015 Commercial loans greater than or equal to $1 million-CBT $ — $ — $ $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay — — — — $ $ $ $ $ $ December 31, 2014 Commercial loans greater than or equal to $1 million-CBT $ — $ — $ $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay — — — — $ $ $ $ $ $ June 30, 2014 Commercial loans greater than or equal to $1 million-CBT $ $ — $ $ $ $ Commercial real estate Commercial real estate—construction and development Residential real estate Consumer Commercial and industrial Single pay — — — — $ $ $ $ $ $ |
Acquired Non Credit Impaired Loans | Non-Credit impaired | |
Loans and Allowance for Loan Losses | |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Total Six months ended June 30, 2015 Allowance for loan losses: Balance, December 31, 2014 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — — ) ) ) ) ) ) Recoveries — — Provision (benefit) ) — — Balance, June 30, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — |
FDIC Indemnification Asset (Tab
FDIC Indemnification Asset (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
FDIC Indemnification Asset | |
Schedule of changes in FDIC indemnification asset | Six Months Ended June 30, (Dollars in thousands) 2015 2014 Balance at beginning of period $ $ Decrease in expected losses on loans ) ) Additional recoveries on OREO ) ) Reimbursable expenses Amortization of discounts and premiums, net ) ) Reimbursements from FDIC ) ) Balance at end of period $ $ |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Real Estate Owned | |
Schedule of information pertaining to OREO | Six Months Ended June 30, 2015 2014 (Dollars in thousands) OREO Covered OREO Total OREO Covered OREO Total Beginning balance $ $ $ $ $ $ Additions Transfers ) — — — — Write-downs ) ) ) ) ) ) Sold ) ) ) ) ) ) Ending balance $ $ $ $ $ $ |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deposits | |
Schedule of total deposits | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Certificates of deposit $ $ $ Interest-bearing demand deposits Non-interest bearing demand deposits Savings deposits Other time deposits Total deposits $ $ $ |
Retirement Plans (Tables)
Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Retirement Plans | |
Schedule of components of net periodic pension expense | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Interest cost $ ) $ ) $ ) $ ) Expected return on plan assets Recognized net actuarial loss ) ) ) ) Net periodic pension benefit (expense) $ $ $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended Six Months Ended June 30, June 30, (Dollars and shares in thousands) 2015 2014 2015 2014 Basic earnings per common share: Net income available to common shareholders $ $ $ $ Weighted-average basic common shares Basic earnings per common share $ $ $ $ Diluted earnings per share: Net income available to common shareholders $ $ $ $ Weighted-average basic common shares Effect of dilutive securities Weighted-average dilutive shares Diluted earnings per common share $ $ $ $ |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per common share | Three Months Ended Six Months Ended June 30, June 30, (Dollars in thousands) 2015 2014 2015 2014 Number of shares Range of exercise prices $61.42-$66.32 $61.49-$66.32 $61.42 - $66.32 $61.49 - $66.32 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Share-Based Compensation | |
Schedule of stock option activity | Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Shares Price Life (Yrs.) Value (000’s) Outstanding at January 1, 2015 $ Granted Exercised ) Outstanding at June 30, 2015 $ Exercisable at June 30, 2015 $ Weighted-average fair value of options granted during the year $ |
Schedule of weighted-average assumptions used in valuing options | Six Months Ended June 30, 2015 2014 Dividend yield 1.40% 1.27% Expected life 8.5 years 6.3 years Expected volatility 40.9% 43.8%-44.7% Risk-free interest rate 1.79% 2.10% |
Summary of nonvested restricted stock | Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2015 $ Granted Vested ) Nonvested at June 30, 2015 |
Summary of nonvested RSUs | Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2015 $ Granted Nonvested at June 30, 2015 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value | |
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015: Assets Derivative financial instruments $ $ — $ $ — Loans held for sale — — Securities available for sale: Government-sponsored entities debt — — State and municipal obligations — — Mortgage-backed securities — — Corporate stocks — Total securities available for sale — Mortgage servicing rights — — $ $ $ $ Liabilities Derivative financial instruments $ $ — $ $ — December 31, 2014: Assets Derivative financial instruments $ $ — $ $ — Loans held for sale — — Securities available for sale: Government-sponsored entities debt $ $ — $ $ — State and municipal obligations — — Mortgage-backed securities — — Corporate stocks — Total securities available for sale — Mortgage servicing rights — — $ $ $ $ Liabilities Derivative financial instruments $ $ — $ $ — June 30, 2014: Assets Derivative financial instruments $ $ — $ $ — Loans held for sale — — Securities available for sale: Government-sponsored entities debt — — State and municipal obligations — — Mortgage-backed securities — — Corporate stocks — Total securities available for sale — Mortgage servicing rights — — $ $ $ $ Liabilities Derivative financial instruments $ $ — $ $ — |
Schedule of reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis | (Dollars in thousands) Assets Liabilities Fair value, January 1, 2015 $ $ — Servicing assets that resulted from transfers of financial assets — Changes in fair value due to valuation inputs or assumptions — Changes in fair value due to increased principal paydowns ) — Fair value, June 30, 2015 $ $ — Fair value, January 1, 2014 $ $ — Servicing assets that resulted from transfers of financial assets Changes in fair value due to valuation inputs or assumptions ) Changes in fair value due to increased principal paydowns ) — Fair value, June 30, 2014 $ $ — |
Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) June 30, 2015: OREO $ $ — $ — $ Non-acquired impaired loans — — December 31, 2014: OREO $ $ — $ — $ Non-acquired impaired loans — — June 30, 2014: OREO $ $ — $ — $ Non-acquired impaired loans — — |
Quantitative Information about Level 3 Fair Value Measurements | Weighted Average June 30, December 31, June 30, Valuation Technique Unobservable Input 2015 2014 2014 Nonrecurring measurements: Impaired loans Discounted appraisals Collateral discounts % % % OREO Discounted appraisals Collateral discounts and estimated costs to sell % % % |
Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments | Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 June 30, 2015 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities — Loans held for sale — — Loans, net of allowance for loan losses — — FDIC receivable for loss share agreements — — Accrued interest receivable — Mortgage servicing rights — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Financial liabilities: Deposits — — Federal funds purchased and securities sold under agreements to repurchase — — Other borrowings — — Accrued interest payable — — Interest rate swap — cash flow hedge — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Off balance sheet financial instruments: Commitments to extend credit — — — Standby letters of credit and financial guarantees — — — — — December 31, 2014 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities — Loans held for sale — — Loans, net of allowance for loan losses — — FDIC receivable for loss share agreements — — Accrued interest receivable — Mortgage servicing rights — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Financial liabilities: Deposits — — Federal funds purchased and securities sold under agreements to repurchase — — Other borrowings — — Accrued interest payable — — Interest rate swap — cash flow hedge — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Off balance sheet financial instruments: Commitments to extend credit — — — Standby letters of credit and financial guarantees — — — — — Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 June 30, 2014 Financial assets: Cash and cash equivalents $ $ $ $ — $ — Investment securities — Loans held for sale — — — Loans, net of allowance for loan losses — — FDIC receivable for loss share agreements — — Accrued interest receivable — Mortgage servicing rights — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) — — Financial liabilities: Deposits — — Federal funds purchased and securities sold under agreements to repurchase — — Other borrowings — — Accrued interest payable — — Interest rate swap — cash flow hedge — — Interest rate swap — non-designated hedge — — Other derivative financial instruments (mortgage banking related) Off balance sheet financial instruments: Commitments to extend credit — — — Standby letters of credit and financial guarantees — — — — — |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive income (loss) | Unrealized Gains and Losses Gains and on Securities Losses on Benefit Available Cash Flow (Dollars in thousands) Plans for Sale Hedges Total Three months ended June 30, 2015 Balance at March 31, 2015 $ ) $ $ ) $ Other comprehensive income (loss) before reclassifications — ) ) Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) ) ) Balance at June 30, 2015 $ ) $ $ ) $ ) Three months ended June 30, 2014 Balance at March 31, 2014 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from accumulated other comprehensive income (loss) ) Net other comprehensive income (loss) ) Balance at June 30, 2014 $ ) $ $ ) $ Six months ended June 30, 2015 Balance at December 31, 2014 $ ) $ $ ) $ ) Other comprehensive income (loss) before reclassifications — ) ) ) Amounts reclassified from accumulated other comprehensive income (loss) — Net other comprehensive income (loss) ) ) Balance at June 30, 2015 $ ) $ $ ) $ ) Six months ended June 30, 2014 Balance at December 31, 2013 $ ) $ ) $ ) $ ) Other comprehensive income (loss) before reclassifications — ) Amounts reclassified from accumulated other comprehensive income (loss) ) Net other comprehensive income (loss) ) Balance at June 30, 2014 $ ) $ $ ) $ |
Schedule of reclassifications out of accumulated other comprehensive income (loss), net of tax | (Dollars in thousands) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Three Months Ended June 30, Six Months Ended June 30, Income (Loss) Component 2015 2014 2015 2014 Income Statement Line Item Affected Gains and losses on cash flow hedges: Interest rate contracts $ $ $ $ Interest expense ) ) ) ) Provision for income taxes Net income Gains on sales of available for sale securities: — ) — ) Other noninterest income — — Provision for income taxes — ) — ) Net income Amortization of defined benefit pension items: Actuarial losses Salaries and employee benefits ) ) ) ) Provision for income taxes Net income Total reclassifications for the period $ $ $ $ |
Derivative Financial Instrume43
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments | |
Schedule of notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline | (Dollars in thousands) June 30, 2015 December 31, 2014 June 30, 2014 Mortgage loan pipeline $ $ $ Expected closures Fair Value of mortgage loan pipeline commitments Forward commitments Fair value of forward commitments ) ) |
Capital Ratios (Tables)
Capital Ratios (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Capital Ratios | |
Schedule of actual and required capital ratios | Minimum Capital Minimum Capital Required to be Required - Basel III Required - Basel III Considered Well Actual Phase-In Schedule Fully Phased-In Capitalized Capital Capital Capital Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2015 Common equity Tier 1 to risk-weighted assets: Consolidated $ % $ % $ % $ % South State Bank (the Bank) % % % % Tier 1 capital to risk-weighted assets: Consolidated % % % % South State Bank (the Bank) % % % % Total capital to risk-weighted assets: Consolidated % % % % South State Bank (the Bank) % % % % Tier 1 capital to average assets (leverage ratio): Consolidated % % % % South State Bank (the Bank) % % % % Required to be Minimum Capital Considered Well Actual Requirement Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2014 Tier 1 capital to risk-weighted assets: Consolidated $ % $ % n/a n/a South State Bank (the Bank) % % % Total capital to risk-weighted assets: Consolidated % % n/a n/a South State Bank (the Bank) % % % Tier 1 capital to average assets (leverage ratio): Consolidated % % n/a n/a South State Bank (the Bank) % % % June 30, 2014 Tier 1 capital to risk-weighted assets: Consolidated $ % $ % n/a n/a South State Bank (the Bank) % % % Total capital to risk-weighted assets: Consolidated % % n/a n/a South State Bank (the Bank) % % % Tier 1 capital to average assets (leverage ratio): Consolidated % % n/a n/a South State Bank (the Bank) % % % |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Other Intangible Assets | |
Summary of gross carrying amounts and accumulated amortization of other intangible assets | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Gross carrying amount $ $ $ Accumulated amortization ) ) ) $ $ $ |
Schedule of estimated amortization expense for other intangibles for each of the next five quarters | (Dollars in thousands) Quarters ending: September 30, 2015 $ December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 Thereafter $ |
Loan Servicing, Mortgage Orig46
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Summary of changes in the fair value of MSRs and its offsetting hedge | Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2015 2014 2015 2014 Increase (decrease) in fair value of MSRs $ $ ) $ $ ) Decay of MSRs ) ) ) ) Gains (losses) related to derivatives ) Net effect on Statements of Income $ $ $ $ |
Schedule of analysis of the activity in the MSRs | June 30, December 31, June 30, (Dollars in thousands) 2015 2014 2014 Composition of residential loans serviced for others Fixed-rate mortgage loans % % % Adjustable-rate mortgage loans % % % Total % % % Weighted average life 7.38 years 6.30 years 6.01 years Constant prepayment rate % % % Weighted average discount rate % % % Effect on fair value due to change in interest rates: 25 basis point increase $ $ $ 50 basis point increase 25 basis point decrease ) ) ) 50 basis point decrease ) ) ) |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment securities held to maturity | |||
Amortized Cost | $ 9,659 | $ 9,659 | $ 10,389 |
Fair Value | 10,114 | 10,233 | 11,058 |
State and municipal obligations | |||
Investment securities held to maturity | |||
Amortized Cost | 9,659 | 9,659 | 10,389 |
Gross Unrealized Gains | (455) | (574) | (669) |
Fair Value | $ 10,114 | $ 10,233 | $ 11,058 |
Investment Securities (Details
Investment Securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Investment securities available for sale | |||
Amortized Cost | $ 835,778 | $ 797,930 | $ 788,758 |
Gross Unrealized Gains | (9,576) | (12,477) | (12,169) |
Gross Unrealized Losses | 3,693 | 3,641 | 5,186 |
Fair Value | 841,661 | 806,766 | 795,741 |
Government-sponsored entities debt | |||
Investment securities available for sale | |||
Amortized Cost | 132,071 | 149,720 | 142,310 |
Gross Unrealized Gains | (140) | (191) | (303) |
Gross Unrealized Losses | 1,376 | 1,714 | 3,086 |
Fair Value | 130,835 | 148,197 | 139,527 |
State and municipal obligations | |||
Investment securities available for sale | |||
Amortized Cost | 133,921 | 133,635 | 140,075 |
Gross Unrealized Gains | (3,199) | (4,141) | (3,366) |
Gross Unrealized Losses | 421 | 195 | 593 |
Fair Value | 136,699 | 137,581 | 142,848 |
Mortgage-backed securities. | |||
Investment securities available for sale | |||
Amortized Cost | 566,625 | 511,414 | 503,212 |
Gross Unrealized Gains | (5,740) | (7,572) | (7,910) |
Gross Unrealized Losses | 1,443 | 1,040 | 1,428 |
Fair Value | 570,922 | 517,946 | 509,694 |
Corporate Stocks | |||
Investment securities available for sale | |||
Amortized Cost | 3,161 | 3,161 | 3,161 |
Gross Unrealized Gains | (497) | (573) | (590) |
Gross Unrealized Losses | 453 | 692 | 79 |
Fair Value | $ 3,205 | $ 3,042 | $ 3,672 |
Investment Securities (Detail49
Investment Securities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Other investment securities | |||
Amortized Cost | $ 9,031 | $ 10,518 | $ 10,518 |
Fair Value | 9,031 | 10,518 | 10,518 |
Amortized Cost | |||
Due in one year or less | 640 | ||
Due after one year through five years | 820 | ||
Due after five years through ten years | 8,199 | ||
Total | 9,659 | 9,659 | 10,389 |
Fair Value | |||
Due in one year or less | 655 | ||
Due after one year through five years | 855 | ||
Due after five years through ten years | 8,604 | ||
Fair Value | 10,114 | 10,233 | 11,058 |
Amortized Cost | |||
Due in one year or less | 6,532 | ||
Due after one year through five years | 58,740 | ||
Due after five years through ten years | 219,093 | ||
Due after ten years | 551,413 | ||
Total | 835,778 | 797,930 | 788,758 |
Fair Value | |||
Due in one year or less | 6,579 | ||
Due after one year through five years | 59,191 | ||
Due after five years through ten years | 220,843 | ||
Due after ten years | 555,048 | ||
Fair Value | 841,661 | 806,766 | 795,741 |
Federal Home Loan Bank stock | |||
Other investment securities | |||
Amortized Cost | 7,389 | 7,484 | 7,484 |
Fair Value | 7,389 | 7,484 | 7,484 |
Investment in unconsolidated subsidiaries | |||
Other investment securities | |||
Amortized Cost | 1,642 | 3,034 | 3,034 |
Fair Value | $ 1,642 | $ 3,034 | $ 3,034 |
Investment Securities (Detail50
Investment Securities (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | $ 1,687 | $ 367 | $ 330 |
Twelve Months or More | 2,006 | 3,274 | 4,856 |
Securities Available for Sale, Fair Value | |||
Less Than Twelve Months | 192,075 | 85,848 | 101,128 |
Twelve Months or More | 60,293 | 148,565 | 181,171 |
Government-sponsored entities debt | |||
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 513 | 98 | 3 |
Twelve Months or More | 863 | 1,616 | 3,083 |
Securities Available for Sale, Fair Value | |||
Less Than Twelve Months | 47,096 | 22,896 | 8,491 |
Twelve Months or More | 32,112 | 82,798 | 82,145 |
State and municipal obligations | |||
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 203 | 3 | 14 |
Twelve Months or More | 218 | 192 | 579 |
Securities Available for Sale, Fair Value | |||
Less Than Twelve Months | 21,044 | 1,444 | 7,546 |
Twelve Months or More | 4,162 | 8,269 | 35,623 |
Mortgage-backed securities. | |||
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 971 | 266 | 234 |
Twelve Months or More | 472 | 774 | 1,194 |
Securities Available for Sale, Fair Value | |||
Less Than Twelve Months | 123,935 | 61,508 | 82,939 |
Twelve Months or More | 22,240 | 55,960 | 63,403 |
Corporate Stocks | |||
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 79 | ||
Twelve Months or More | 453 | 692 | |
Securities Available for Sale, Fair Value | |||
Less Than Twelve Months | $ 2,152 | ||
Twelve Months or More | $ 1,779 | $ 1,538 |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses (Details) - Non-acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Loans and Allowance for Loan Losses | ||||||
Total loans | $ 3,788,399 | $ 3,467,826 | $ 3,174,625 | |||
Less allowance for loan losses | (34,782) | $ (33,538) | (34,539) | (35,422) | $ (34,669) | $ (34,331) |
Loans, net | 3,753,617 | 3,433,287 | 3,139,203 | |||
Commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 720,478 | 697,811 | 674,712 | |||
Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 368,954 | 364,221 | 371,751 | |||
Less allowance for loan losses | (4,998) | (5,399) | (5,666) | (6,652) | (6,322) | (6,789) |
Commercial non-owner occupied | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 351,524 | 333,590 | 302,961 | |||
Less allowance for loan losses | (3,038) | (3,131) | (3,154) | (3,398) | (3,443) | (3,677) |
Consumer real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,207,047 | 1,070,712 | 908,099 | |||
Consumer owner occupied | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 906,973 | 786,778 | 637,071 | |||
Less allowance for loan losses | (7,125) | (7,041) | (6,866) | (6,537) | (6,122) | (6,069) |
Home equity loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 300,074 | 283,934 | 271,028 | |||
Less allowance for loan losses | (2,868) | (2,785) | (2,829) | (2,975) | (2,921) | (2,782) |
Commercial owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 975,701 | 907,913 | 849,048 | |||
Less allowance for loan losses | (8,684) | (7,871) | (8,415) | (7,958) | (8,317) | (7,767) |
Commercial and industrial | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 448,247 | 405,923 | 353,211 | |||
Less allowance for loan losses | (3,983) | (3,460) | (3,561) | (3,640) | (3,441) | (3,592) |
Other income producing property | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 163,441 | 150,928 | 151,928 | |||
Less allowance for loan losses | (2,019) | (1,980) | (2,232) | (2,588) | (2,848) | (2,509) |
Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 209,544 | 189,317 | 170,982 | |||
Less allowance for loan losses | (1,608) | (1,422) | (1,367) | (1,270) | (1,105) | (937) |
Other Loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 63,941 | 45,222 | 66,645 | |||
Less allowance for loan losses | $ (459) | $ (449) | $ (449) | $ (404) | $ (150) | $ (209) |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses (Details 2) - Acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Non-Credit impaired | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | $ 1,171,672 | $ 1,327,999 | $ 1,447,583 | |
Unamortized Discounts | 20,200 | 23,500 | 31,600 | |
Non-Credit impaired | Commercial non-owner occupied real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 60,885 | 73,575 | 86,473 | |
Non-Credit impaired | Construction and land development | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 17,762 | 24,099 | 35,880 | |
Non-Credit impaired | Commercial non-owner occupied | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 43,123 | 49,476 | 50,593 | |
Non-Credit impaired | Consumer real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 785,431 | 881,324 | 947,448 | |
Non-Credit impaired | Consumer owner occupied | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 574,697 | 646,375 | 698,580 | |
Non-Credit impaired | Home equity loans | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 210,734 | 234,949 | 248,868 | |
Non-Credit impaired | Commercial owner occupied real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 49,334 | 62,065 | 68,831 | |
Non-Credit impaired | Commercial and industrial | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 31,762 | 41,130 | 41,977 | |
Non-Credit impaired | Other income producing property | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 58,987 | 65,139 | 71,684 | |
Non-Credit impaired | Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 185,273 | 204,766 | 231,170 | |
Credit impaired | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 828,670 | 926,767 | 1,056,495 | |
Less allowance for loan losses | (4,689) | (7,365) | (9,159) | |
Acquired loans, net | 823,981 | 919,402 | 1,047,336 | $ 1,220,638 |
Credit impaired | Construction and land development | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 59,819 | 65,262 | 85,660 | |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 15,373 | 15,813 | 19,557 | |
Credit impaired | Commercial real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 288,756 | 325,109 | 375,610 | |
Credit impaired | Commercial and industrial | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 38,894 | 44,804 | 51,677 | |
Credit impaired | Residential real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 348,687 | 390,244 | 428,811 | |
Credit impaired | Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | 77,083 | 85,449 | 95,089 | |
Credit impaired | Single pay | ||||
Loans and Allowance for Loan Losses | ||||
Total acquired loans | $ 58 | $ 86 | $ 91 |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses (Details 3) - Acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Credit impaired | |||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | |||
Contractual principal and interest | $ 1,093,583 | $ 1,337,703 | $ 1,463,643 |
Non-accretable difference | (64,121) | (104,110) | (189,514) |
Cash flows expected to be collected | 1,029,462 | 1,233,593 | 1,274,129 |
Accretable Yield | (200,792) | (306,826) | (217,634) |
Total acquired loans | 828,670 | 926,767 | 1,056,495 |
Allowance for loan losses on acquired loans | (4,689) | (7,365) | (9,159) |
Non-Credit impaired | |||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | |||
Total acquired loans | $ 1,171,672 | $ 1,327,999 | $ 1,447,583 |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses (Details 4) - Acquired loans - Credit impaired - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in the carrying value of acquired loans at the acquisition date | ||||
Balance at the beginning of the period | $ 919,402 | $ 919,402 | $ 1,220,638 | |
Net reductions for payments, foreclosures, and accretion | (98,097) | (175,761) | ||
Change in the allowance for loan losses on acquired loans | 2,676 | 2,459 | ||
Balance at the end of the period | $ 823,981 | 823,981 | 1,047,336 | |
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Balance at beginning of period | 306,826 | 306,826 | 250,340 | |
Accretion | (51,220) | (54,950) | ||
Reclass of nonaccretable difference due to improvement in expected cash flows | 9,500 | 15,401 | 24,675 | |
Other changes, net | (70,215) | (2,431) | ||
Balance at end of period | 200,792 | 200,792 | $ 217,634 | |
Decline in accretable yield balance | $ 25,500 | $ 64,100 | ||
Impairment of acquired loans | $ 0 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in allowance for loan losses | ||||
Balance at beginning of period | $ 38,255 | $ 45,715 | $ 41,904 | $ 45,949 |
Loans charged-off | (2,238) | (1,889) | (5,045) | (3,259) |
Recoveries of loans previously charged off | 573 | 557 | 1,648 | 1,595 |
Net charge-offs | (1,665) | (1,332) | (3,397) | (1,664) |
Provision (benefit) for loan losses | 3,144 | 647 | 3,942 | 1,621 |
Benefits attributable to FDIC loss share agreements net | 1,522 | 21 | 1,397 | |
Total provision for loan losses charged to operations | 3,144 | 2,169 | 3,963 | 3,018 |
Provision for loan losses recorded through the FDIC loss share receivable | (1,522) | (21) | (1,397) | |
Reduction due to loan removals | (263) | (449) | (2,978) | (1,325) |
Balance at end of period | 39,471 | 44,581 | 39,471 | 44,581 |
Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Balance at beginning of period | 33,538 | 34,669 | 34,539 | 34,331 |
Loans charged-off | (1,680) | (1,889) | (2,676) | (3,259) |
Recoveries of loans previously charged off | 548 | 557 | 1,598 | 1,595 |
Net charge-offs | (1,132) | (1,332) | (1,078) | (1,664) |
Provision (benefit) for loan losses | 2,376 | 2,085 | 1,321 | 2,755 |
Total provision for loan losses charged to operations | 2,376 | 2,085 | 1,321 | 2,755 |
Balance at end of period | 34,782 | 35,422 | 34,782 | 35,422 |
Acquired loans | Non-Credit impaired | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (558) | (2,369) | ||
Recoveries of loans previously charged off | 25 | 50 | ||
Net charge-offs | (533) | (2,319) | ||
Provision (benefit) for loan losses | 533 | 2,319 | ||
Total provision for loan losses charged to operations | 533 | 2,319 | ||
Acquired loans | Credit impaired | ||||
Changes in allowance for loan losses | ||||
Balance at beginning of period | 4,717 | 11,046 | 7,365 | 11,618 |
Provision (benefit) for loan losses | 235 | (1,438) | 302 | (1,134) |
Benefits attributable to FDIC loss share agreements net | 1,522 | 21 | 1,397 | |
Total provision for loan losses charged to operations | 235 | 84 | 323 | 263 |
Provision for loan losses recorded through the FDIC loss share receivable | (1,522) | (21) | (1,397) | |
Reduction due to loan removals | (263) | (449) | (2,978) | (1,325) |
Balance at end of period | $ 4,689 | $ 9,159 | $ 4,689 | $ 9,159 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Allowance for loan losses: | |||||
Charge-offs | $ (2,238) | $ (1,889) | $ (5,045) | $ (3,259) | |
Recoveries | 573 | 557 | 1,648 | 1,595 | |
Provision (benefit) | 3,144 | 2,169 | 3,963 | 3,018 | |
Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 33,538 | 34,669 | 34,539 | 34,331 | |
Charge-offs | (1,680) | (1,889) | (2,676) | (3,259) | |
Recoveries | 548 | 557 | 1,598 | 1,595 | |
Provision (benefit) | 2,376 | 2,085 | 1,321 | 2,755 | |
Balance at end of period | 34,782 | 35,422 | 34,782 | 35,422 | |
Loans individually evaluated for impairment | 1,311 | 1,431 | 1,311 | 1,431 | |
Loans collectively evaluated for impairment | 33,471 | 33,991 | 33,471 | 33,991 | |
Loans: | |||||
Loans individually evaluated for impairment | 31,116 | 32,718 | 31,116 | 32,718 | |
Loans collectively evaluated for impairment | 3,757,283 | 3,141,907 | 3,757,283 | 3,141,907 | |
Total loans | 3,788,399 | 3,174,625 | 3,788,399 | 3,174,625 | $ 3,467,826 |
Non-acquired loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 5,399 | 6,322 | 5,666 | 6,789 | |
Charge-offs | (55) | (216) | (100) | (308) | |
Recoveries | 94 | 97 | 134 | 242 | |
Provision (benefit) | (440) | 449 | (702) | (71) | |
Balance at end of period | 4,998 | 6,652 | 4,998 | 6,652 | |
Loans individually evaluated for impairment | 591 | 428 | 591 | 428 | |
Loans collectively evaluated for impairment | 4,407 | 6,224 | 4,407 | 6,224 | |
Loans: | |||||
Loans individually evaluated for impairment | 5,109 | 5,678 | 5,109 | 5,678 | |
Loans collectively evaluated for impairment | 363,845 | 366,073 | 363,845 | 366,073 | |
Total loans | 368,954 | 371,751 | 368,954 | 371,751 | 364,221 |
Non-acquired loans | Commercial non-owner occupied | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,131 | 3,443 | 3,154 | 3,677 | |
Charge-offs | (72) | (92) | (83) | (236) | |
Recoveries | 21 | 16 | 29 | 347 | |
Provision (benefit) | (42) | 31 | (62) | (390) | |
Balance at end of period | 3,038 | 3,398 | 3,038 | 3,398 | |
Loans individually evaluated for impairment | 27 | 31 | 27 | 31 | |
Loans collectively evaluated for impairment | 3,011 | 3,367 | 3,011 | 3,367 | |
Loans: | |||||
Loans individually evaluated for impairment | 2,611 | 6,189 | 2,611 | 6,189 | |
Loans collectively evaluated for impairment | 348,913 | 296,772 | 348,913 | 296,772 | |
Total loans | 351,524 | 302,961 | 351,524 | 302,961 | 333,590 |
Non-acquired loans | Commercial owner occupied real estate | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 7,871 | 8,317 | 8,415 | 7,767 | |
Charge-offs | (546) | (312) | (552) | (528) | |
Recoveries | 9 | 11 | 16 | 17 | |
Provision (benefit) | 1,350 | (58) | 805 | 702 | |
Balance at end of period | 8,684 | 7,958 | 8,684 | 7,958 | |
Loans individually evaluated for impairment | 81 | 112 | 81 | 112 | |
Loans collectively evaluated for impairment | 8,603 | 7,846 | 8,603 | 7,846 | |
Loans: | |||||
Loans individually evaluated for impairment | 10,971 | 11,110 | 10,971 | 11,110 | |
Loans collectively evaluated for impairment | 964,730 | 837,938 | 964,730 | 837,938 | |
Total loans | 975,701 | 849,048 | 975,701 | 849,048 | 907,913 |
Non-acquired loans | Consumer owner occupied | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 7,041 | 6,122 | 6,866 | 6,069 | |
Charge-offs | (44) | (221) | (44) | (299) | |
Recoveries | 20 | 39 | 45 | 242 | |
Provision (benefit) | 108 | 597 | 258 | 525 | |
Balance at end of period | 7,125 | 6,537 | 7,125 | 6,537 | |
Loans individually evaluated for impairment | 118 | 86 | 118 | 86 | |
Loans collectively evaluated for impairment | 7,007 | 6,451 | 7,007 | 6,451 | |
Loans: | |||||
Loans individually evaluated for impairment | 6,322 | 2,505 | 6,322 | 2,505 | |
Loans collectively evaluated for impairment | 900,651 | 634,566 | 900,651 | 634,566 | |
Total loans | 906,973 | 637,071 | 906,973 | 637,071 | 786,778 |
Non-acquired loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 2,785 | 2,921 | 2,829 | 2,782 | |
Charge-offs | (122) | (273) | (208) | (416) | |
Recoveries | 67 | 27 | 110 | 40 | |
Provision (benefit) | 138 | 300 | 137 | 569 | |
Balance at end of period | 2,868 | 2,975 | 2,868 | 2,975 | |
Loans individually evaluated for impairment | 1 | 1 | |||
Loans collectively evaluated for impairment | 2,867 | 2,975 | 2,867 | 2,975 | |
Loans: | |||||
Loans individually evaluated for impairment | 234 | 234 | |||
Loans collectively evaluated for impairment | 299,840 | 271,028 | 299,840 | 271,028 | |
Total loans | 300,074 | 271,028 | 300,074 | 271,028 | 283,934 |
Non-acquired loans | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,460 | 3,441 | 3,561 | 3,592 | |
Charge-offs | (116) | (96) | (255) | (156) | |
Recoveries | 67 | 38 | 666 | 128 | |
Provision (benefit) | 572 | 257 | 11 | 76 | |
Balance at end of period | 3,983 | 3,640 | 3,983 | 3,640 | |
Loans individually evaluated for impairment | 19 | 11 | 19 | 11 | |
Loans collectively evaluated for impairment | 3,964 | 3,629 | 3,964 | 3,629 | |
Loans: | |||||
Loans individually evaluated for impairment | 1,011 | 749 | 1,011 | 749 | |
Loans collectively evaluated for impairment | 447,236 | 352,462 | 447,236 | 352,462 | |
Total loans | 448,247 | 353,211 | 448,247 | 353,211 | 405,923 |
Non-acquired loans | Other income producing property | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,980 | 2,848 | 2,232 | 2,509 | |
Charge-offs | (11) | (82) | (13) | (168) | |
Recoveries | 55 | 153 | 66 | 159 | |
Provision (benefit) | (5) | (331) | (266) | 88 | |
Balance at end of period | 2,019 | 2,588 | 2,019 | 2,588 | |
Loans individually evaluated for impairment | 472 | 761 | 472 | 761 | |
Loans collectively evaluated for impairment | 1,547 | 1,827 | 1,547 | 1,827 | |
Loans: | |||||
Loans individually evaluated for impairment | 4,789 | 6,400 | 4,789 | 6,400 | |
Loans collectively evaluated for impairment | 158,652 | 145,528 | 158,652 | 145,528 | |
Total loans | 163,441 | 151,928 | 163,441 | 151,928 | 150,928 |
Non-acquired loans | Consumer | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,422 | 1,105 | 1,367 | 937 | |
Charge-offs | (714) | (597) | (1,421) | (1,148) | |
Recoveries | 215 | 176 | 532 | 420 | |
Provision (benefit) | 685 | 586 | 1,130 | 1,061 | |
Balance at end of period | 1,608 | 1,270 | 1,608 | 1,270 | |
Loans individually evaluated for impairment | 2 | 2 | 2 | 2 | |
Loans collectively evaluated for impairment | 1,606 | 1,268 | 1,606 | 1,268 | |
Loans: | |||||
Loans individually evaluated for impairment | 69 | 87 | 69 | 87 | |
Loans collectively evaluated for impairment | 209,475 | 170,895 | 209,475 | 170,895 | |
Total loans | 209,544 | 170,982 | 209,544 | 170,982 | 189,317 |
Non-acquired loans | Other Loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 449 | 150 | 449 | 209 | |
Charge-offs | 0 | ||||
Recoveries | 0 | ||||
Provision (benefit) | 10 | 254 | 10 | 195 | |
Balance at end of period | 459 | 404 | 459 | 404 | |
Loans collectively evaluated for impairment | 459 | 404 | 459 | 404 | |
Loans: | |||||
Loans collectively evaluated for impairment | 63,941 | 66,645 | 63,941 | 66,645 | |
Total loans | 63,941 | $ 66,645 | 63,941 | $ 66,645 | $ 45,222 |
Acquired Non Credit Impaired Loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (558) | (2,369) | |||
Recoveries | 25 | 50 | |||
Provision (benefit) | 533 | 2,319 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 1,171,672 | 1,171,672 | |||
Total loans | 1,171,672 | 1,171,672 | |||
Acquired Non Credit Impaired Loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Recoveries | 1 | 2 | |||
Provision (benefit) | (1) | (2) | |||
Loans: | |||||
Loans collectively evaluated for impairment | 17,762 | 17,762 | |||
Total loans | 17,762 | 17,762 | |||
Acquired Non Credit Impaired Loans | Commercial non-owner occupied | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 43,123 | 43,123 | |||
Total loans | 43,123 | 43,123 | |||
Acquired Non Credit Impaired Loans | Commercial owner occupied real estate | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 49,334 | 49,334 | |||
Total loans | 49,334 | 49,334 | |||
Acquired Non Credit Impaired Loans | Consumer owner occupied | |||||
Allowance for loan losses: | |||||
Charge-offs | (39) | (367) | |||
Recoveries | 5 | ||||
Provision (benefit) | 39 | 362 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 574,697 | 574,697 | |||
Total loans | 574,697 | 574,697 | |||
Acquired Non Credit Impaired Loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (331) | (1,381) | |||
Recoveries | 14 | 17 | |||
Provision (benefit) | 317 | 1,364 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 210,734 | 210,734 | |||
Total loans | 210,734 | 210,734 | |||
Acquired Non Credit Impaired Loans | Commercial and industrial | |||||
Allowance for loan losses: | |||||
Charge-offs | (10) | (113) | |||
Recoveries | 10 | 15 | |||
Provision (benefit) | 98 | ||||
Loans: | |||||
Loans collectively evaluated for impairment | 31,762 | 31,762 | |||
Total loans | 31,762 | 31,762 | |||
Acquired Non Credit Impaired Loans | Other income producing property | |||||
Allowance for loan losses: | |||||
Charge-offs | (4) | ||||
Recoveries | 1 | ||||
Provision (benefit) | 3 | 3 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 58,987 | 58,987 | |||
Total loans | 58,987 | 58,987 | |||
Acquired Non Credit Impaired Loans | Consumer | |||||
Allowance for loan losses: | |||||
Charge-offs | (178) | (504) | |||
Recoveries | 10 | ||||
Provision (benefit) | 178 | 494 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 185,273 | 185,273 | |||
Total loans | $ 185,273 | $ 185,273 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for loan losses: | ||||
Provision for loan losses before benefit attributable to FDIC loss share agreements | $ 3,144 | $ 647 | $ 3,942 | $ 1,621 |
Benefits attributable to FDIC loss share agreements net | 1,522 | 21 | 1,397 | |
Total provision for loan losses charged to operations | 3,144 | 2,169 | 3,963 | 3,018 |
Provision for loan losses recorded through the FDIC loss share receivable | (1,522) | (21) | (1,397) | |
Reduction due to loan removals | (263) | (449) | (2,978) | (1,325) |
Credit impaired | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 4,717 | 11,046 | 7,365 | 11,618 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | 236 | (1,438) | 302 | (1,134) |
Benefits attributable to FDIC loss share agreements net | 1,522 | 21 | 1,397 | |
Total provision for loan losses charged to operations | 236 | 84 | 323 | 263 |
Provision for loan losses recorded through the FDIC loss share receivable | (1,522) | (21) | (1,397) | |
Reduction due to loan removals | (264) | (449) | (2,978) | (1,325) |
Balance at the end of the period | 4,689 | 9,159 | 4,689 | 9,159 |
Loans collectively evaluated for impairment | 4,689 | 9,159 | 4,689 | 9,159 |
Loans: | ||||
Loans collectively evaluated for impairment | 828,670 | 1,056,495 | 828,670 | 1,056,495 |
Total acquired loans | 828,670 | 1,056,495 | 828,670 | 1,056,495 |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | (64) | 311 | 135 | 303 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | (120) | (123) | ||
Benefits attributable to FDIC loss share agreements net | 171 | 176 | ||
Total provision for loan losses charged to operations | 51 | 53 | ||
Provision for loan losses recorded through the FDIC loss share receivable | (171) | (176) | ||
Reduction due to loan removals | (2) | 10 | (201) | 21 |
Balance at the end of the period | (66) | 201 | (66) | 201 |
Loans collectively evaluated for impairment | (66) | 201 | (66) | 201 |
Loans: | ||||
Loans collectively evaluated for impairment | 15,373 | 19,557 | 15,373 | 19,557 |
Total acquired loans | 15,373 | 19,557 | 15,373 | 19,557 |
Credit impaired | Commercial real estate | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 549 | 1,938 | 1,444 | 1,816 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | (322) | 3 | (196) | |
Benefits attributable to FDIC loss share agreements net | 336 | 220 | ||
Total provision for loan losses charged to operations | 14 | 3 | 24 | |
Provision for loan losses recorded through the FDIC loss share receivable | (336) | (220) | ||
Reduction due to loan removals | (17) | (915) | (4) | |
Balance at the end of the period | 532 | 1,616 | 532 | 1,616 |
Loans collectively evaluated for impairment | 532 | 1,616 | 532 | 1,616 |
Loans: | ||||
Loans collectively evaluated for impairment | 288,756 | 375,610 | 288,756 | 375,610 |
Total acquired loans | 288,756 | 375,610 | 288,756 | 375,610 |
Credit impaired | Construction and land development | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 400 | 1,972 | 336 | 2,244 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | 1 | (902) | 10 | (613) |
Benefits attributable to FDIC loss share agreements net | 896 | 784 | ||
Total provision for loan losses charged to operations | 1 | (6) | 10 | 171 |
Provision for loan losses recorded through the FDIC loss share receivable | (896) | (784) | ||
Reduction due to loan removals | (57) | (255) | (2) | (816) |
Balance at the end of the period | 344 | 815 | 344 | 815 |
Loans collectively evaluated for impairment | 344 | 815 | 344 | 815 |
Loans: | ||||
Loans collectively evaluated for impairment | 59,819 | 85,660 | 59,819 | 85,660 |
Total acquired loans | 59,819 | 85,660 | 59,819 | 85,660 |
Credit impaired | Residential real estate | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 3,320 | 5,190 | 4,387 | 5,132 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | 2 | (68) | 21 | 73 |
Benefits attributable to FDIC loss share agreements net | 84 | (54) | ||
Total provision for loan losses charged to operations | 2 | 16 | 21 | 19 |
Provision for loan losses recorded through the FDIC loss share receivable | (84) | 54 | ||
Reduction due to loan removals | (138) | (4) | (1,224) | (87) |
Balance at the end of the period | 3,184 | 5,118 | 3,184 | 5,118 |
Loans collectively evaluated for impairment | 3,184 | 5,118 | 3,184 | 5,118 |
Loans: | ||||
Loans collectively evaluated for impairment | 348,687 | 428,811 | 348,687 | 428,811 |
Total acquired loans | 348,687 | 428,811 | 348,687 | 428,811 |
Credit impaired | Consumer | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 244 | 410 | 275 | 538 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | 233 | 7 | 391 | (105) |
Benefits attributable to FDIC loss share agreements net | (107) | 101 | ||
Total provision for loan losses charged to operations | 233 | 7 | 284 | (4) |
Provision for loan losses recorded through the FDIC loss share receivable | 107 | (101) | ||
Reduction due to loan removals | (28) | (32) | (217) | (48) |
Balance at the end of the period | 449 | 385 | 449 | 385 |
Loans collectively evaluated for impairment | 449 | 385 | 449 | 385 |
Loans: | ||||
Loans collectively evaluated for impairment | 77,083 | 95,089 | 77,083 | 95,089 |
Total acquired loans | 77,083 | 95,089 | 77,083 | 95,089 |
Credit impaired | Commercial and industrial | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 219 | 1,119 | 718 | 1,481 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | (33) | (122) | (175) | |
Benefits attributable to FDIC loss share agreements net | 34 | 127 | 174 | |
Total provision for loan losses charged to operations | 1 | 5 | (1) | |
Provision for loan losses recorded through the FDIC loss share receivable | (34) | (127) | (174) | |
Reduction due to loan removals | (22) | (136) | (399) | (356) |
Balance at the end of the period | 197 | 950 | 197 | 950 |
Loans collectively evaluated for impairment | 197 | 950 | 197 | 950 |
Loans: | ||||
Loans collectively evaluated for impairment | 38,894 | 51,677 | 38,894 | 51,677 |
Total acquired loans | 38,894 | 51,677 | 38,894 | 51,677 |
Credit impaired | Single pay | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 49 | 106 | 70 | 104 |
Provision for loan losses before benefit attributable to FDIC loss share agreements | (1) | 5 | ||
Benefits attributable to FDIC loss share agreements net | 1 | 1 | (4) | |
Total provision for loan losses charged to operations | 1 | 1 | ||
Provision for loan losses recorded through the FDIC loss share receivable | (1) | (1) | 4 | |
Reduction due to loan removals | (32) | (20) | (35) | |
Balance at the end of the period | 49 | 74 | 49 | 74 |
Loans collectively evaluated for impairment | 49 | 74 | 49 | 74 |
Loans: | ||||
Loans collectively evaluated for impairment | 58 | 91 | 58 | 91 |
Total acquired loans | $ 58 | $ 91 | $ 58 | $ 91 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses (Details 8) - Non-acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Loans and Allowance for Loan Losses | |||
Total loans | $ 3,788,399 | $ 3,467,826 | $ 3,174,625 |
Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 3,624,075 | 3,286,228 | 2,990,728 |
Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 109,455 | 118,790 | 113,908 |
Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 54,847 | 62,786 | 69,966 |
Doubtful | |||
Loans and Allowance for Loan Losses | |||
Total loans | 22 | 22 | 23 |
Commercial loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,307,867 | 2,162,575 | 2,028,899 |
Commercial loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,195,562 | 2,036,266 | 1,901,485 |
Commercial loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 82,248 | 87,850 | 80,088 |
Commercial loans | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 30,057 | 38,459 | 47,326 |
Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Total loans | 368,954 | 364,221 | 371,751 |
Construction and land development | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 344,314 | 337,641 | 338,367 |
Construction and land development | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 16,561 | 15,466 | 20,797 |
Construction and land development | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 8,079 | 11,114 | 12,587 |
Commercial non-owner occupied | |||
Loans and Allowance for Loan Losses | |||
Total loans | 351,524 | 333,590 | 302,961 |
Commercial non-owner occupied | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 331,279 | 307,450 | 271,346 |
Commercial non-owner occupied | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 16,885 | 20,596 | 22,704 |
Commercial non-owner occupied | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 3,360 | 5,544 | 8,911 |
Commercial owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Total loans | 975,701 | 907,913 | 849,048 |
Commercial owner occupied real estate | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 927,678 | 858,220 | 809,469 |
Commercial owner occupied real estate | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 34,974 | 34,737 | 23,049 |
Commercial owner occupied real estate | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 13,049 | 14,956 | 16,530 |
Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Total loans | 448,247 | 405,923 | 353,211 |
Commercial and industrial | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 442,354 | 397,555 | 346,958 |
Commercial and industrial | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 4,497 | 6,718 | 4,775 |
Commercial and industrial | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 1,396 | 1,650 | 1,478 |
Other income producing property | |||
Loans and Allowance for Loan Losses | |||
Total loans | 163,441 | 150,928 | 151,928 |
Other income producing property | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 149,937 | 135,400 | 135,345 |
Other income producing property | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 9,331 | 10,333 | 8,763 |
Other income producing property | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 4,173 | 5,195 | 7,820 |
Consumer loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 1,480,532 | 1,305,251 | 1,145,726 |
Consumer loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 1,428,513 | 1,249,962 | 1,089,243 |
Consumer loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 27,207 | 30,940 | 33,820 |
Consumer loans | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 24,790 | 24,327 | 22,640 |
Consumer loans | Doubtful | |||
Loans and Allowance for Loan Losses | |||
Total loans | 22 | 22 | 23 |
Consumer owner occupied | |||
Loans and Allowance for Loan Losses | |||
Total loans | 906,973 | 786,778 | 637,071 |
Consumer owner occupied | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 870,005 | 746,847 | 595,420 |
Consumer owner occupied | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 18,679 | 22,129 | 24,567 |
Consumer owner occupied | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 18,289 | 17,802 | 17,084 |
Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 300,074 | 283,934 | 271,028 |
Home equity loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 286,603 | 269,844 | 257,102 |
Home equity loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 7,634 | 8,047 | 8,618 |
Home equity loans | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 5,815 | 6,021 | 5,285 |
Home equity loans | Doubtful | |||
Loans and Allowance for Loan Losses | |||
Total loans | 22 | 22 | 23 |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 209,544 | 189,317 | 170,982 |
Consumer | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | 207,964 | 188,049 | 170,077 |
Consumer | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | 894 | 764 | 634 |
Consumer | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total loans | 686 | 504 | 271 |
Other Loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 63,941 | 45,222 | 66,645 |
Other Loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total loans | $ 63,941 | $ 45,222 | 66,644 |
Other Loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total loans | $ 1 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses (Details 9) - Acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Non-Credit impaired | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | $ 1,171,672 | $ 1,327,999 | $ 1,447,583 |
Non-Credit impaired | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 1,139,470 | 1,292,782 | 1,367,400 |
Non-Credit impaired | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 9,043 | 14,815 | 13,869 |
Non-Credit impaired | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 23,159 | 20,402 | 66,314 |
Non-Credit impaired | Commercial loans | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 200,968 | 241,909 | 268,965 |
Non-Credit impaired | Commercial loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 190,331 | 228,938 | 253,350 |
Non-Credit impaired | Commercial loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 1,427 | 8,464 | 9,232 |
Non-Credit impaired | Commercial loans | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 9,210 | 4,507 | 6,383 |
Non-Credit impaired | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 17,762 | 24,099 | 35,880 |
Non-Credit impaired | Construction and land development | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 16,454 | 22,456 | 34,870 |
Non-Credit impaired | Construction and land development | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 118 | 816 | 348 |
Non-Credit impaired | Construction and land development | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 1,190 | 827 | 662 |
Non-Credit impaired | Commercial non-owner occupied | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 43,123 | 49,476 | 50,593 |
Non-Credit impaired | Commercial non-owner occupied | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 36,441 | 42,572 | 44,020 |
Non-Credit impaired | Commercial non-owner occupied | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 408 | 6,039 | 5,822 |
Non-Credit impaired | Commercial non-owner occupied | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 6,274 | 865 | 751 |
Non-Credit impaired | Commercial owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 49,334 | 62,065 | 68,831 |
Non-Credit impaired | Commercial owner occupied real estate | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 49,217 | 61,040 | 67,527 |
Non-Credit impaired | Commercial owner occupied real estate | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 78 | 265 | 310 |
Non-Credit impaired | Commercial owner occupied real estate | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 39 | 760 | 994 |
Non-Credit impaired | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 31,762 | 41,130 | 41,977 |
Non-Credit impaired | Commercial and industrial | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 30,641 | 39,780 | 40,255 |
Non-Credit impaired | Commercial and industrial | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 384 | 448 | 748 |
Non-Credit impaired | Commercial and industrial | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 737 | 902 | 974 |
Non-Credit impaired | Other income producing property | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 58,987 | 65,139 | 71,684 |
Non-Credit impaired | Other income producing property | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 57,578 | 63,090 | 66,678 |
Non-Credit impaired | Other income producing property | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 439 | 896 | 2,004 |
Non-Credit impaired | Other income producing property | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 970 | 1,153 | 3,002 |
Non-Credit impaired | Consumer loans | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 970,704 | 1,086,090 | 1,178,618 |
Non-Credit impaired | Consumer loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 949,138 | 1,063,844 | 1,114,050 |
Non-Credit impaired | Consumer loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 7,614 | 6,351 | 4,637 |
Non-Credit impaired | Consumer loans | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 13,952 | 15,895 | 59,931 |
Non-Credit impaired | Consumer owner occupied | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 574,697 | 646,375 | 698,580 |
Non-Credit impaired | Consumer owner occupied | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 569,080 | 639,555 | 680,759 |
Non-Credit impaired | Consumer owner occupied | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 1,518 | 1,241 | 354 |
Non-Credit impaired | Consumer owner occupied | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 4,099 | 5,579 | 17,467 |
Non-Credit impaired | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 210,734 | 234,949 | 248,868 |
Non-Credit impaired | Home equity loans | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 197,804 | 222,653 | 231,265 |
Non-Credit impaired | Home equity loans | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 5,482 | 4,491 | 2,090 |
Non-Credit impaired | Home equity loans | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 7,448 | 7,805 | 15,513 |
Non-Credit impaired | Consumer | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 185,273 | 204,766 | 231,170 |
Non-Credit impaired | Consumer | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 182,254 | 201,636 | 202,026 |
Non-Credit impaired | Consumer | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 614 | 619 | 2,193 |
Non-Credit impaired | Consumer | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 2,405 | 2,511 | 26,951 |
Credit impaired | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 828,670 | 926,767 | 1,056,495 |
Credit impaired | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 432,162 | 470,384 | 553,910 |
Credit impaired | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 142,888 | 154,568 | 102,927 |
Credit impaired | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 253,620 | 301,815 | 399,658 |
Credit impaired | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 59,819 | 65,262 | 85,660 |
Credit impaired | Construction and land development | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 27,777 | 26,855 | 33,453 |
Credit impaired | Construction and land development | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 12,666 | 9,539 | 11,627 |
Credit impaired | Construction and land development | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 19,376 | 28,868 | 40,580 |
Credit impaired | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 38,894 | 44,804 | 51,677 |
Credit impaired | Commercial and industrial | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 23,956 | 25,530 | 29,680 |
Credit impaired | Commercial and industrial | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 2,428 | 5,317 | 3,189 |
Credit impaired | Commercial and industrial | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 12,510 | 13,957 | 18,808 |
Credit impaired | Consumer | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 77,083 | 85,449 | 95,089 |
Credit impaired | Consumer | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 6,099 | 7,493 | 27,665 |
Credit impaired | Consumer | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 27,079 | 29,087 | 6,572 |
Credit impaired | Consumer | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 43,905 | 48,869 | 60,852 |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 15,373 | 15,813 | 19,557 |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 11,134 | 11,248 | 12,541 |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 1,044 | 1,030 | 1,010 |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 3,195 | 3,535 | 6,006 |
Credit impaired | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 288,756 | 325,109 | 375,610 |
Credit impaired | Commercial real estate | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 188,260 | 208,269 | 225,144 |
Credit impaired | Commercial real estate | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 31,654 | 35,896 | 37,439 |
Credit impaired | Commercial real estate | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 68,842 | 80,944 | 113,027 |
Credit impaired | Residential real estate | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 348,687 | 390,244 | 428,811 |
Credit impaired | Residential real estate | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 174,893 | 190,931 | 225,366 |
Credit impaired | Residential real estate | Special mention | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 68,017 | 73,699 | 43,090 |
Credit impaired | Residential real estate | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 105,777 | 125,614 | 160,355 |
Credit impaired | Single pay | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 58 | 86 | 91 |
Credit impaired | Single pay | Pass | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | 43 | 58 | 61 |
Credit impaired | Single pay | Substandard | |||
Loans and Allowance for Loan Losses | |||
Total acquired loans | $ 15 | $ 28 | $ 30 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses (Details 10) - Non-acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | $ 6,206 | $ 7,153 | $ 6,433 |
60-89 Days Past Due | 3,084 | 2,004 | 3,114 |
90+ Days Past Due | 11,647 | 13,062 | 13,784 |
Total Past Due | 20,937 | 22,219 | 23,331 |
Current | 3,767,462 | 3,445,607 | 3,151,294 |
Total loans | 3,788,399 | 3,467,826 | 3,174,625 |
Construction and land development | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 230 | 318 | 1,651 |
60-89 Days Past Due | 88 | 439 | 347 |
90+ Days Past Due | 1,345 | 1,354 | 1,035 |
Total Past Due | 1,663 | 2,111 | 3,033 |
Current | 367,291 | 362,110 | 368,718 |
Total loans | 368,954 | 364,221 | 371,751 |
Commercial non-owner occupied | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 1,058 | 1,197 | 1,377 |
60-89 Days Past Due | 430 | 397 | |
90+ Days Past Due | 1,604 | 1,432 | 5,318 |
Total Past Due | 3,092 | 2,629 | 7,092 |
Current | 348,432 | 330,961 | 295,869 |
Total loans | 351,524 | 333,590 | 302,961 |
Commercial owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 2,061 | 1,106 | 1,173 |
60-89 Days Past Due | 724 | 95 | 909 |
90+ Days Past Due | 4,211 | 5,403 | 2,505 |
Total Past Due | 6,996 | 6,604 | 4,587 |
Current | 968,705 | 901,309 | 844,461 |
Total loans | 975,701 | 907,913 | 849,048 |
Consumer owner occupied | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 1,523 | 1,946 | 462 |
60-89 Days Past Due | 1,290 | 501 | 1,063 |
90+ Days Past Due | 2,733 | 2,746 | 1,577 |
Total Past Due | 5,546 | 5,193 | 3,102 |
Current | 901,427 | 781,585 | 633,969 |
Total loans | 906,973 | 786,778 | 637,071 |
Home equity loans | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 803 | 679 | 959 |
60-89 Days Past Due | 62 | 443 | 189 |
90+ Days Past Due | 480 | 519 | 735 |
Total Past Due | 1,345 | 1,641 | 1,883 |
Current | 298,729 | 282,293 | 269,145 |
Total loans | 300,074 | 283,934 | 271,028 |
Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 156 | 760 | 86 |
60-89 Days Past Due | 241 | 123 | 70 |
90+ Days Past Due | 274 | 107 | 279 |
Total Past Due | 671 | 990 | 435 |
Current | 447,576 | 404,933 | 352,776 |
Total loans | 448,247 | 405,923 | 353,211 |
Other income producing property | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 31 | 570 | 382 |
60-89 Days Past Due | 196 | 114 | 21 |
90+ Days Past Due | 716 | 1,319 | 2,227 |
Total Past Due | 943 | 2,003 | 2,630 |
Current | 162,498 | 148,925 | 149,298 |
Total loans | 163,441 | 150,928 | 151,928 |
Consumer | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 265 | 512 | 277 |
60-89 Days Past Due | 22 | 243 | 96 |
90+ Days Past Due | 243 | 120 | 73 |
Total Past Due | 530 | 875 | 446 |
Current | 209,014 | 188,442 | 170,536 |
Total loans | 209,544 | 189,317 | 170,982 |
Other Loans | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 79 | 65 | 66 |
60-89 Days Past Due | 31 | 46 | 22 |
90+ Days Past Due | 41 | 62 | 35 |
Total Past Due | 151 | 173 | 123 |
Current | 63,790 | 45,049 | 66,522 |
Total loans | $ 63,941 | $ 45,222 | $ 66,645 |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses (Details 11) - Acquired loans - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Non-Credit impaired | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | $ 2,338 | $ 3,321 | $ 903 |
60-89 Days Past Due | 420 | 1,698 | 418 |
90+ Days Past Due | 3,823 | 3,664 | 4,021 |
Total Past Due | 6,581 | 8,683 | 5,342 |
Current | 1,165,091 | 1,319,316 | 1,442,241 |
Total acquired loans | 1,171,672 | 1,327,999 | 1,447,583 |
Non-Credit impaired | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 1 | 17 | |
60-89 Days Past Due | 39 | ||
90+ Days Past Due | 40 | 228 | |
Total Past Due | 40 | 57 | 228 |
Current | 17,722 | 24,042 | 35,652 |
Total acquired loans | 17,762 | 24,099 | 35,880 |
Non-Credit impaired | Commercial non-owner occupied | |||
Loans and Allowance for Loan Losses | |||
Current | 43,123 | 49,476 | 50,593 |
Total acquired loans | 43,123 | 49,476 | 50,593 |
Non-Credit impaired | Commercial owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 380 | 414 | |
90+ Days Past Due | 39 | 38 | 248 |
Total Past Due | 419 | 452 | 248 |
Current | 48,915 | 61,613 | 68,583 |
Total acquired loans | 49,334 | 62,065 | 68,831 |
Non-Credit impaired | Consumer owner occupied | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 826 | 443 | 40 |
60-89 Days Past Due | 105 | 241 | 41 |
90+ Days Past Due | 2,300 | 1,566 | 2,047 |
Total Past Due | 3,231 | 2,250 | 2,128 |
Current | 571,466 | 644,125 | 696,452 |
Total acquired loans | 574,697 | 646,375 | 698,580 |
Non-Credit impaired | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 591 | 1,451 | 241 |
60-89 Days Past Due | 164 | 866 | 71 |
90+ Days Past Due | 577 | 972 | 866 |
Total Past Due | 1,332 | 3,289 | 1,178 |
Current | 209,402 | 231,660 | 247,690 |
Total acquired loans | 210,734 | 234,949 | 248,868 |
Non-Credit impaired | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 4 | 14 | 402 |
60-89 Days Past Due | 250 | ||
90+ Days Past Due | 220 | 117 | 231 |
Total Past Due | 224 | 381 | 633 |
Current | 31,538 | 40,749 | 41,344 |
Total acquired loans | 31,762 | 41,130 | 41,977 |
Non-Credit impaired | Other income producing property | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 109 | 97 | |
90+ Days Past Due | 89 | 88 | 85 |
Total Past Due | 198 | 185 | 85 |
Current | 58,789 | 64,954 | 71,599 |
Total acquired loans | 58,987 | 65,139 | 71,684 |
Non-Credit impaired | Consumer | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 427 | 885 | 220 |
60-89 Days Past Due | 112 | 341 | 306 |
90+ Days Past Due | 598 | 843 | 316 |
Total Past Due | 1,137 | 2,069 | 842 |
Current | 184,136 | 202,697 | 230,328 |
Total acquired loans | 185,273 | 204,766 | 231,170 |
Credit impaired | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 10,419 | 15,986 | 18,813 |
60-89 Days Past Due | 3,401 | 5,333 | 7,767 |
90+ Days Past Due | 38,189 | 48,464 | 56,319 |
Total Past Due | 52,009 | 69,783 | 82,899 |
Current | 776,661 | 856,984 | 973,596 |
Total acquired loans | 828,670 | 926,767 | 1,056,495 |
Credit impaired | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 1,900 | 1,750 | 2,636 |
60-89 Days Past Due | 300 | 452 | 1,484 |
90+ Days Past Due | 4,941 | 8,204 | 9,940 |
Total Past Due | 7,141 | 10,406 | 14,060 |
Current | 52,678 | 54,856 | 71,600 |
Total acquired loans | 59,819 | 65,262 | 85,660 |
Credit impaired | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 748 | 451 | 353 |
60-89 Days Past Due | 277 | 196 | 2,366 |
90+ Days Past Due | 4,894 | 3,413 | 3,296 |
Total Past Due | 5,919 | 4,060 | 6,015 |
Current | 32,975 | 40,744 | 45,662 |
Total acquired loans | 38,894 | 44,804 | 51,677 |
Credit impaired | Consumer | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 1,696 | 2,241 | 1,587 |
60-89 Days Past Due | 775 | 1,106 | 647 |
90+ Days Past Due | 2,332 | 2,614 | 1,566 |
Total Past Due | 4,803 | 5,961 | 3,800 |
Current | 72,280 | 79,488 | 91,289 |
Total acquired loans | 77,083 | 85,449 | 95,089 |
Credit impaired | Commercial Loans Greater Than or Equal to $1 Million-CBT | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 794 | ||
90+ Days Past Due | 2,630 | 2,896 | 5,213 |
Total Past Due | 2,630 | 2,896 | 6,007 |
Current | 12,743 | 12,917 | 13,550 |
Total acquired loans | 15,373 | 15,813 | 19,557 |
Credit impaired | Commercial real estate | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 1,617 | 4,350 | 7,708 |
60-89 Days Past Due | 120 | 723 | 781 |
90+ Days Past Due | 11,590 | 15,866 | 17,333 |
Total Past Due | 13,327 | 20,939 | 25,822 |
Current | 275,429 | 304,170 | 349,788 |
Total acquired loans | 288,756 | 325,109 | 375,610 |
Credit impaired | Residential real estate | |||
Loans and Allowance for Loan Losses | |||
30-59 Days Past Due | 4,458 | 7,194 | 5,735 |
60-89 Days Past Due | 1,929 | 2,856 | 2,489 |
90+ Days Past Due | 11,802 | 15,471 | 18,971 |
Total Past Due | 18,189 | 25,521 | 27,195 |
Current | 330,498 | 364,723 | 401,616 |
Total acquired loans | 348,687 | 390,244 | 428,811 |
Credit impaired | Single pay | |||
Loans and Allowance for Loan Losses | |||
Current | 58 | 86 | 91 |
Total acquired loans | $ 58 | $ 86 | $ 91 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses (Details 12) - Non-Credit impaired - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | $ 42,448 | $ 39,150 | $ 42,448 | $ 39,150 | $ 36,366 |
Recorded Investment With No Allowance | 15,038 | 15,974 | 15,038 | 15,974 | 10,309 |
Gross Recorded Investment With Allowance | 16,078 | 16,744 | 16,078 | 16,744 | 16,776 |
Total Recorded Investment | 31,116 | 32,718 | 31,116 | 32,718 | 27,085 |
Related Allowance | 1,311 | 1,431 | 1,311 | 1,431 | 1,558 |
Average Investment In Impaired Loans | 30,782 | 33,366 | 29,100 | 30,368 | |
Interest Income Recognized | 257 | 110 | 399 | 248 | |
Nonaccrual loans | 24,087 | 34,955 | 24,087 | 34,955 | 27,994 |
Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 7,728 | 7,251 | 7,728 | 7,251 | 7,414 |
Recorded Investment With No Allowance | 1,721 | 2,700 | 1,721 | 2,700 | 1,528 |
Gross Recorded Investment With Allowance | 3,389 | 2,978 | 3,389 | 2,978 | 3,324 |
Total Recorded Investment | 5,110 | 5,678 | 5,110 | 5,678 | 4,852 |
Related Allowance | 591 | 428 | 591 | 428 | 475 |
Average Investment In Impaired Loans | 5,258 | 5,869 | 4,981 | 5,948 | |
Interest Income Recognized | 30 | 16 | 54 | 35 | |
Nonaccrual loans | 1,976 | 3,259 | 1,976 | 3,259 | 2,920 |
Commercial non-owner occupied | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 3,987 | 8,236 | 3,987 | 8,236 | 4,920 |
Recorded Investment With No Allowance | 1,649 | 5,079 | 1,649 | 5,079 | 2,539 |
Gross Recorded Investment With Allowance | 961 | 1,110 | 961 | 1,110 | 1,071 |
Total Recorded Investment | 2,610 | 6,189 | 2,610 | 6,189 | 3,610 |
Related Allowance | 27 | 31 | 27 | 31 | 77 |
Average Investment In Impaired Loans | 3,188 | 6,175 | 3,110 | 5,469 | |
Interest Income Recognized | 13 | 13 | 25 | 28 | |
Nonaccrual loans | 1,145 | 5,496 | 1,145 | 5,496 | 2,325 |
Commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 3,121 | 8,755 | 3,121 | 8,755 | 5,245 |
Commercial owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 15,589 | 13,293 | 15,589 | 13,293 | 12,508 |
Recorded Investment With No Allowance | 7,301 | 6,912 | 7,301 | 6,912 | 5,546 |
Gross Recorded Investment With Allowance | 3,670 | 4,198 | 3,670 | 4,198 | 3,614 |
Total Recorded Investment | 10,971 | 11,110 | 10,971 | 11,110 | 9,160 |
Related Allowance | 81 | 112 | 81 | 112 | 172 |
Average Investment In Impaired Loans | 9,634 | 11,489 | 10,065 | 10,561 | |
Interest Income Recognized | 134 | 35 | 166 | 76 | |
Nonaccrual loans | 3,421 | 4,843 | 3,421 | 4,843 | 3,605 |
Consumer real estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 7,596 | 8,483 | 7,596 | 8,483 | 7,427 |
Consumer owner occupied | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 7,157 | 2,763 | 7,157 | 2,763 | 3,393 |
Recorded Investment With No Allowance | 3,738 | 3,738 | |||
Gross Recorded Investment With Allowance | 2,584 | 2,505 | 2,584 | 2,505 | 2,966 |
Total Recorded Investment | 6,322 | 2,505 | 6,322 | 2,505 | 2,966 |
Related Allowance | 118 | 86 | 118 | 86 | 144 |
Average Investment In Impaired Loans | 6,707 | 2,533 | 4,644 | 1,858 | |
Interest Income Recognized | 25 | 12 | 53 | 33 | |
Nonaccrual loans | 6,398 | 6,916 | 6,398 | 6,916 | 6,015 |
Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 347 | 347 | 131 | ||
Recorded Investment With No Allowance | 198 | 198 | |||
Gross Recorded Investment With Allowance | 36 | 36 | 31 | ||
Total Recorded Investment | 234 | 234 | 31 | ||
Related Allowance | 1 | 1 | 1 | ||
Average Investment In Impaired Loans | 242 | 31 | 132 | ||
Interest Income Recognized | 1 | 3 | |||
Nonaccrual loans | 1,198 | 1,567 | 1,198 | 1,567 | 1,412 |
Commercial and industrial | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 1,903 | 908 | 1,903 | 908 | 1,625 |
Recorded Investment With No Allowance | 309 | 369 | 309 | 369 | 336 |
Gross Recorded Investment With Allowance | 702 | 380 | 702 | 380 | 572 |
Total Recorded Investment | 1,011 | 749 | 1,011 | 749 | 908 |
Related Allowance | 19 | 11 | 19 | 11 | 41 |
Average Investment In Impaired Loans | 959 | 993 | 960 | 592 | |
Interest Income Recognized | 11 | 18 | 13 | ||
Nonaccrual loans | 497 | 682 | 497 | 682 | 600 |
Other income producing property | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 5,620 | 6,612 | 5,620 | 6,612 | 6,280 |
Recorded Investment With No Allowance | 122 | 914 | 122 | 914 | 360 |
Gross Recorded Investment With Allowance | 4,667 | 5,486 | 4,667 | 5,486 | 5,138 |
Total Recorded Investment | 4,789 | 6,400 | 4,789 | 6,400 | 5,498 |
Related Allowance | 472 | 761 | 472 | 761 | 646 |
Average Investment In Impaired Loans | 4,728 | 6,189 | 5,143 | 5,884 | |
Interest Income Recognized | 43 | 33 | 79 | 60 | |
Nonaccrual loans | 922 | 3,696 | 922 | 3,696 | 1,348 |
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 117 | 87 | 117 | 87 | 95 |
Gross Recorded Investment With Allowance | 69 | 87 | 69 | 87 | 60 |
Total Recorded Investment | 69 | 87 | 69 | 87 | 60 |
Related Allowance | 2 | 2 | 2 | 2 | 2 |
Average Investment In Impaired Loans | 66 | 87 | 65 | 56 | |
Interest Income Recognized | 1 | 1 | 3 | ||
Nonaccrual loans | 337 | 87 | 337 | 87 | 344 |
Restructured loans. | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 8,193 | $ 8,409 | $ 8,193 | $ 8,409 | 9,425 |
Number of months generally required to return to accruing status | 6 months | ||||
Acquired loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 5,173 | $ 5,173 | 7,538 | ||
Acquired loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 41 | ||||
Acquired loans | Commercial non-owner occupied | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 100 | 100 | 645 | ||
Acquired loans | Commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 100 | 100 | 686 | ||
Acquired loans | Commercial owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 39 | 39 | 38 | ||
Acquired loans | Consumer real estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 3,428 | 3,428 | 5,192 | ||
Acquired loans | Consumer owner occupied | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 2,346 | 2,346 | 3,685 | ||
Acquired loans | Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,082 | 1,082 | 1,507 | ||
Acquired loans | Commercial and industrial | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 226 | 226 | 120 | ||
Acquired loans | Other income producing property | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 302 | 302 | 309 | ||
Acquired loans | Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,078 | 1,078 | $ 1,193 | ||
Acquired loans | Restructured loans. | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | $ 0 | $ 0 |
FDIC Indemnification Asset (Det
FDIC Indemnification Asset (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Receivable from FDIC for Loss Share Agreements | ||
Balance at the beginning of period | $ 22,161 | $ 86,447 |
Decrease in expected losses on loans | (21) | (1,397) |
Additional recoveries on OREO | (2,430) | (2,846) |
Reimbursable expenses | 587 | 1,383 |
Amortization of discounts and premiums, net | (5,249) | (12,893) |
FDIC Indemnification Asset, Cash Payments Received | (4,013) | (26,928) |
Balance at the end of period | 11,035 | 43,766 |
Reimbursements from FDIC | 9,900 | |
Commercial loans | ||
Receivable from FDIC for Loss Share Agreements | ||
Balance at the end of period | 49,000 | |
OREO | ||
Receivable from FDIC for Loss Share Agreements | ||
Balance at the end of period | 2,200 | |
BankMeridian | ||
Receivable from FDIC for Loss Share Agreements | ||
Estimated "true-up" payment to the FDIC at the end of the loss share agreement | 4,100 | 3,900 |
Plantation | ||
Receivable from FDIC for Loss Share Agreements | ||
Estimated "true-up" payment to the FDIC at the end of the loss share agreement | 3,100 | $ 3,300 |
CBT | ||
Receivable from FDIC for Loss Share Agreements | ||
Estimated "true-up" payment to the FDIC at the end of the loss share agreement | 0 | |
Cape Fear | ||
Receivable from FDIC for Loss Share Agreements | ||
Estimated "true-up" payment to the FDIC at the end of the loss share agreement | 0 | |
Habersham | ||
Receivable from FDIC for Loss Share Agreements | ||
Estimated "true-up" payment to the FDIC at the end of the loss share agreement | $ 0 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)property | Jun. 30, 2014USD ($)property | |
OREO | ||
Balance at the beginning of the period | $ 26,499 | $ 37,398 |
Additions | 9,165 | 13,781 |
Transfers | 2,245 | |
Write-downs | (1,517) | (2,480) |
Sold | (9,522) | (16,964) |
Balance at the end of the period | $ 26,870 | $ 31,735 |
Number of properties uncovered | property | 133 | 200 |
Covered OREO | ||
Balance at the beginning of the period | $ 16,227 | $ 27,520 |
Additions | 3,554 | 11,680 |
Transfers | (2,245) | |
Write-downs | (2,797) | (3,244) |
Sold | (6,567) | (13,958) |
Balance at the end of the period | $ 8,172 | $ 21,998 |
Number of properties covered by loss share with the FDIC | property | 29 | 201 |
Total | ||
Balance at the beginning of the period | $ 42,726 | $ 64,918 |
Additions | 12,719 | 25,461 |
Write-downs | (4,314) | (5,724) |
Sold | (16,089) | (30,922) |
Balance at the end of the period | $ 35,042 | $ 53,733 |
Number of properties held | property | 162 | 401 |
Residential real estate included in OREO | $ 3,900 | |
Residential real estate consumer mortgage loans in foreclosure process | $ 9,700 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Deposits | |||
Certificates of deposit | $ 1,137,553 | $ 1,237,140 | $ 1,373,498 |
Interest-bearing demand deposits | 2,994,228 | 2,927,820 | 2,899,532 |
Non-interest bearing demand deposits | 1,844,973 | 1,639,953 | 1,626,995 |
Savings deposits | 687,292 | 655,132 | 676,482 |
Other time deposits | 3,482 | 1,000 | 3,335 |
Total deposits | $ 6,667,528 | $ 6,461,045 | $ 6,579,842 |
Deposits (Details 2)
Deposits (Details 2) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Deposits | |||
Aggregate amounts of certificates of deposits in denominations of $250,000 or more | $ 133,300,000 | $ 128,500,000 | $ 136,200,000 |
Increased insurance limit on deposit accounts | 250,000 | ||
Traditional, out-of-market brokered deposits | $ 19,400,000 | $ 23,400,000 | $ 29,700,000 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Components of net periodic pension expense | ||||
Interest cost | $ (254) | $ (277) | $ (508) | $ (555) |
Expected return on plan assets | 517 | 487 | 1,034 | 975 |
Recognized net actuarial loss | (225) | (165) | (450) | (330) |
Net periodic pension benefit (expense) | $ 38 | $ 45 | 76 | $ 90 |
Estimated employer contributions for remainder of current fiscal year | $ 0 | |||
Employee hired on or after January 1, 2006 | Maximum | ||||
Retirement Plans | ||||
Requisite age of employees for receiving retirement benefits under the new benefit formula | 45 years | |||
Requisite service period for receiving retirement benefits under the new benefit formula | 5 years | |||
Non-contributory defined benefit pension plan | Employees hired on or before December 31, 2005 | Minimum | ||||
Retirement Plans | ||||
Requisite age of employees for receiving retirement benefits under the plan | 21 years |
Retirement Plans (Details 2)
Retirement Plans (Details 2) - USD ($) $ in Millions | Jan. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Employees' savings plan | |||||
Matching contribution by the company (as a percent) | 100.00% | ||||
Discretionary matching contribution (as a percent) | 1.00% | ||||
Expenses recognized under 401(K) plan | $ 1.3 | $ 1.2 | $ 2.6 | $ 2.4 | |
Minimum | |||||
Employees' savings plan | |||||
Age of employees to be eligible to participate in the defined contribution plan | 21 years | ||||
Percentage of annual base compensation that participants may elect to contribute | 1.00% | ||||
Maximum | |||||
Employees' savings plan | |||||
Percentage of annual base compensation that participants may elect to contribute | 50.00% | ||||
Percentage of employees salary for which the company contributes a matching contribution | 5.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic earnings per common share: | ||||
Net income available to common shareholders | $ 24,872 | $ 17,946 | $ 48,798 | $ 33,790 |
Weighted-average basic common shares | 23,981 | 23,892 | 23,947 | 23,882 |
Basic earnings per common share (in dollars per share) | $ 1.04 | $ 0.75 | $ 2.04 | $ 1.41 |
Diluted earnings per share: | ||||
Net income available to common shareholders | $ 24,872 | $ 17,946 | $ 48,798 | $ 33,790 |
Weighted-average basic common shares | 23,981 | 23,892 | 23,947 | 23,882 |
Effect of dilutive securities (in shares) | 277 | 249 | 267 | 244 |
Weighted-average dilutive shares | 24,258 | 24,141 | 24,214 | 24,126 |
Diluted earnings per common share (in dollars per share) | $ 1.03 | $ 0.74 | $ 2.02 | $ 1.40 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share | ||||
Number of shares | 46,798 | 22,497 | 47,865 | 22,497 |
Range of exercise prices, low end of range (in dollars per share) | $ 61.42 | $ 61.49 | $ 61.42 | $ 61.49 |
Range of exercise prices, high end of range (in dollars per share) | $ 66.32 | $ 66.32 | $ 66.32 | $ 66.32 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 26, 2012 | Jun. 30, 2015 |
Stock Options | ||
Number of shares | ||
Outstanding at the beginning of the period (in shares) | 294,342 | |
Granted (in shares) | 26,430 | |
Exercised (in shares) | (30,060) | |
Outstanding at the end of the period (in shares) | 290,712 | |
Exercisable at the end of the period (in shares) | 232,431 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 35.91 | |
Granted (in dollars per share) | 61.74 | |
Exercised (in dollars per share) | 31.20 | |
Outstanding at the end of the period (in dollars per share) | 38.74 | |
Exercisable at the end of the period (in dollars per share) | 34.45 | |
Weighted-average fair value of options granted during the year (in dollars per share) | $ 25.08 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding at the end of the period | 4 years 9 months 29 days | |
Exercisable at the end of the period | 3 years 10 months 17 days | |
Aggregate Intrinsic Value | ||
Outstanding at the end of the period | $ 10,828 | |
Exercisable at the end of the period | $ 9,655 | |
2004 and 2012 Plans | Incentive stock options | ||
Share-Based Compensation | ||
Vesting percentage | 25.00% | |
Expiration period | 10 years | |
2004 and 2012 Plans | Incentive stock options | Maximum | ||
Share-Based Compensation | ||
Vesting period | 4 years | |
2012 plan | ||
Share-Based Compensation | ||
Number of shares registered under the 2012 plan | 1,684,000 | |
2012 plan | Restricted Stock | Maximum | ||
Share-Based Compensation | ||
Number of shares registered under the 2012 plan | 817,476 | |
2004 plan | ||
Number of shares | ||
Granted (in shares) | 0 |
Share-Based Compensation (Det72
Share-Based Compensation (Details 2) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock Options | ||
Weighted-average assumptions | ||
Dividend yield (as a percent) | 1.40% | 1.27% |
Expected life | 8 years 6 months | 6 years 3 months 18 days |
Expected volatility (as a percent) | 40.90% | |
Risk-free interest rate (as a percent) | 1.79% | 2.10% |
Additional disclosures | ||
Total unrecognized compensation cost related to non vested stock option grants | $ 1,100,000 | |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 6 months 29 days | |
Total fair value of shares vested during the period | $ 386,000 | |
Stock Options | Minimum | ||
Weighted-average assumptions | ||
Expected volatility (as a percent) | 43.80% | |
Stock Options | Maximum | ||
Weighted-average assumptions | ||
Expected volatility (as a percent) | 44.70% | |
Restricted Stock | ||
Additional disclosures | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 4 months 10 days | |
Restricted Stock Activity and RSUs | ||
Nonvested at the beginning of the period (in shares) | 228,907 | |
Granted (in shares) | 30,605 | |
Vested (in shares) | (41,125) | |
Nonvested at the end of the period (in shares) | 218,387 | |
Weighted-Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 37.44 | |
Granted (in dollars per share) | 67.86 | |
Vested (in dollars per share) | 34.94 | |
Nonvested at the end of the period (in dollars per share) | $ 42.17 | |
Additional disclosures | ||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ 5,100,000 | |
Total fair value of restricted shares vested during the period | $ 1,600,000 | |
Restricted Stock | Employees | Minimum | ||
Additional disclosures | ||
Vesting period | 4 years | |
Restricted Stock | Non-employee directors | Maximum | ||
Additional disclosures | ||
Vesting period | 12 months | |
Restricted Stock Units | ||
Additional disclosures | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 5 months 23 days | |
Restricted Stock Activity and RSUs | ||
Nonvested at the beginning of the period (in shares) | 79,308 | |
Granted (in shares) | 38,456 | |
Vested (in shares) | 0 | |
Nonvested at the end of the period (in shares) | 117,764 | |
Weighted-Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ 55.92 | |
Granted (in dollars per share) | 68.10 | |
Nonvested at the end of the period (in dollars per share) | $ 59.90 | |
Additional disclosures | ||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ 3,800,000 | |
Performance period | 3 years | |
Target RSU award level (as a percent) | 96.00% |
Commitments and Contingent Li73
Commitments and Contingent Liabilities (Details) $ in Billions | Jun. 30, 2015USD ($) |
Commitments and Contingent Liabilities | |
Commitments to extend credit and standby letters of credit | $ 1.4 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Assets | |||
Loans held for sale | $ 73,055 | $ 56,407 | $ 61,934 |
Securities available for sale | 841,661 | 795,741 | 806,766 |
Government-sponsored entities debt | |||
Assets | |||
Securities available for sale | 130,835 | 139,527 | 148,197 |
State and municipal obligations | |||
Assets | |||
Securities available for sale | 136,699 | 142,848 | 137,581 |
Corporate Stocks | |||
Assets | |||
Securities available for sale | 3,205 | 3,672 | 3,042 |
Fair Value. | |||
Assets | |||
Loans held for sale | 73,055 | 61,934 | |
Mortgage servicing rights | 25,325 | 21,015 | 21,601 |
Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Loans held for sale | 73,055 | 56,407 | 61,934 |
Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Mortgage servicing rights | 25,325 | 21,015 | 21,601 |
Liabilities | |||
Changes in hierarchy classifications of Level 3 liabilities | 0 | ||
Recurring basis | Fair Value. | |||
Assets | |||
Derivative financial instruments | 2,574 | 1,494 | 2,148 |
Loans held for sale | 73,055 | 56,407 | 61,934 |
Securities available for sale | 841,661 | 795,741 | 806,766 |
Mortgage servicing rights | 25,325 | 21,015 | 21,601 |
Fair value of Assets, Total | 942,615 | 874,657 | 892,449 |
Liabilities | |||
Derivative financial instruments | 1,228 | 1,544 | 1,341 |
Recurring basis | Fair Value. | Government-sponsored entities debt | |||
Assets | |||
Securities available for sale | 130,835 | 139,527 | 148,197 |
Recurring basis | Fair Value. | State and municipal obligations | |||
Assets | |||
Securities available for sale | 136,699 | 142,848 | 137,581 |
Recurring basis | Fair Value. | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 570,922 | 509,694 | 517,946 |
Recurring basis | Fair Value. | Corporate Stocks | |||
Assets | |||
Securities available for sale | 3,205 | 3,672 | 3,042 |
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Securities available for sale | 2,980 | 3,447 | 2,817 |
Fair value of Assets, Total | 2,980 | 3,447 | 2,817 |
Recurring basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Corporate Stocks | |||
Assets | |||
Securities available for sale | 2,980 | 3,447 | 2,817 |
Recurring basis | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Derivative financial instruments | 2,574 | 1,494 | 2,148 |
Loans held for sale | 73,055 | 56,407 | 61,934 |
Securities available for sale | 838,681 | 792,294 | 803,949 |
Fair value of Assets, Total | 914,310 | 850,195 | 868,031 |
Liabilities | |||
Derivative financial instruments | 1,228 | 1,544 | 1,341 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government-sponsored entities debt | |||
Assets | |||
Securities available for sale | 130,835 | 139,527 | 148,197 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | |||
Assets | |||
Securities available for sale | 136,699 | 142,848 | 137,581 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 570,922 | 509,694 | 517,946 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate Stocks | |||
Assets | |||
Securities available for sale | 225 | 225 | 225 |
Recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Mortgage servicing rights | 25,325 | 21,015 | 21,601 |
Fair value of Assets, Total | 25,325 | 21,015 | $ 21,601 |
Changes in fair value of assets | |||
Servicing assets that resulted from transfers of financial assets | (3,921) | (2,054) | |
Changes in fair value assets due to valuation inputs or assumptions | 1,539 | (692) | |
Changes in fair value assets due to increased principal paydowns | 1,736 | (1,076) | |
Fair value of assets at the end of the period | 25,325 | 21,015 | |
Unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities | $ 0 | $ 0 |
Fair Value (Details 2)
Fair Value (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value | ||||
Other Real Estate | $ 35,042 | $ 53,733 | $ 42,726 | $ 64,918 |
Nonrecurring basis | Fair Value. | OREO | ||||
Fair Value | ||||
Other Real Estate | 35,042 | 53,733 | 42,726 | |
Nonrecurring basis | Fair Value. | Non-acquired impaired loans | ||||
Fair Value | ||||
Other Real Estate | 10,079 | 8,620 | 12,612 | |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | ||||
Fair Value | ||||
Other Real Estate | 35,042 | 53,733 | 42,726 | |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Non-acquired impaired loans | ||||
Fair Value | ||||
Other Real Estate | $ 10,079 | $ 8,620 | $ 12,612 | |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Discounted appraisals | Impaired loans | Weighted average | ||||
Quantitative Information about Level 3 Fair Value Measurements | ||||
Collateral discounts (as a percent) | 4.21% | 4.37% | 5.80% | |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Discounted appraisals | OREO | Weighted average | ||||
Quantitative Information about Level 3 Fair Value Measurements | ||||
Collateral discounts and estimated costs to sell (as a percent) | 17.71% | 12.97% | 21.89% |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Financial assets: | |||
Loans held for sale | $ 73,055 | $ 61,934 | $ 56,407 |
Financial liabilities: | |||
Federal funds purchased and securities sold under agreements to repurchase | 287,903 | 221,541 | 280,595 |
Other borrowings | 55,055 | 101,210 | 101,045 |
Fair Value. | |||
Financial assets: | |||
Cash and cash equivalents | 593,382 | 417,869 | 589,523 |
Investment securities | 860,806 | 827,517 | 817,317 |
Loans held for sale | 73,055 | 61,934 | |
Loans, net of allowance for loan losses | 5,805,702 | 5,743,017 | 5,718,977 |
FDIC receivable for loss share agreements | 2,615 | 7,150 | 18,619 |
Accrued interest receivable | 16,643 | 16,366 | 15,667 |
Mortgage servicing rights | 25,325 | 21,601 | 21,015 |
Interest rate swap - non-designated hedge | 156 | 172 | 185 |
Other derivative financial instruments (Mortgage - banking related) | 2,418 | 1,976 | 1,309 |
Financial liabilities: | |||
Deposits | 6,372,390 | 6,193,580 | 6,316,613 |
Federal funds purchased and securities sold under agreements to repurchase | 287,903 | 221,541 | 280,595 |
Other borrowings | 50,714 | 98,534 | 104,810 |
Accrued interest payable | 2,489 | 4,311 | 4,282 |
Interest rate swap - cash flow hedge | 806 | 856 | 942 |
Interest rate swap - non-designated hedge | 156 | 172 | 185 |
Other derivative financial instruments (Mortgage banking related) | 266 | 313 | 416 |
Fair Value. | Commitments to extend credit | |||
Financial liabilities: | |||
Off balance sheet financial instruments | 31,401 | 14,759 | 19,872 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 593,382 | 417,869 | 589,523 |
Investment securities | 12,011 | 13,560 | 13,965 |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Investment securities | 848,795 | 813,957 | 803,352 |
Loans held for sale | 73,055 | 61,934 | 56,407 |
Accrued interest receivable | 3,605 | 3,443 | 3,496 |
Interest rate swap - non-designated hedge | 156 | 172 | 185 |
Other derivative financial instruments (Mortgage - banking related) | 2,418 | 1,976 | 1,309 |
Financial liabilities: | |||
Deposits | 6,372,390 | 6,193,580 | 6,316,613 |
Federal funds purchased and securities sold under agreements to repurchase | 287,903 | 221,541 | 280,595 |
Other borrowings | 50,714 | 98,534 | 104,810 |
Accrued interest payable | 2,489 | 4,311 | 4,282 |
Interest rate swap - cash flow hedge | 806 | 856 | 942 |
Interest rate swap - non-designated hedge | 156 | 172 | 185 |
Other derivative financial instruments (Mortgage banking related) | 266 | 313 | 416 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Financial liabilities: | |||
Off balance sheet financial instruments | 31,401 | 14,759 | 19,872 |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Loans, net of allowance for loan losses | 5,805,702 | 5,743,017 | 5,718,977 |
FDIC receivable for loss share agreements | 2,615 | 7,150 | 18,619 |
Accrued interest receivable | 13,038 | 12,923 | 12,171 |
Mortgage servicing rights | 25,325 | 21,601 | 21,015 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 593,382 | 417,869 | 589,523 |
Investment securities | 860,351 | 826,943 | 816,648 |
Loans held for sale | 73,055 | 61,934 | 56,407 |
Loans, net of allowance for loan losses | 5,749,270 | 5,680,688 | 5,634,122 |
FDIC receivable for loss share agreements | 11,035 | 22,161 | 43,766 |
Accrued interest receivable | 16,643 | 16,366 | 15,667 |
Mortgage servicing rights | 25,325 | 21,601 | 21,015 |
Interest rate swap - non-designated hedge | 156 | 172 | 185 |
Other derivative financial instruments (Mortgage - banking related) | 2,418 | 1,976 | 1,309 |
Financial liabilities: | |||
Deposits | 6,667,528 | 6,461,045 | 6,576,138 |
Federal funds purchased and securities sold under agreements to repurchase | 287,903 | 221,541 | 280,595 |
Other borrowings | 55,055 | 101,210 | 101,045 |
Accrued interest payable | 2,489 | 4,311 | 4,282 |
Interest rate swap - cash flow hedge | 806 | 856 | 943 |
Interest rate swap - non-designated hedge | 156 | 172 | 185 |
Other derivative financial instruments (Mortgage banking related) | $ 266 | $ 313 | $ 416 |
Accumulated Other Comprehensi77
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | $ 2,998 | $ (4,054) | $ (377) | $ (9,723) |
Other comprehensive income (loss) before reclassifications | (5,108) | 4,268 | (1,920) | 9,890 |
Amounts reclassified from accumulated other comprehensive income (loss) | 179 | 194 | 366 | 241 |
Other comprehensive income (loss), net of tax | (4,929) | 4,462 | (1,554) | 10,131 |
Balance at the end of the period | (1,931) | 408 | (1,931) | 408 |
Amortization of defined benefit pension | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | (5,175) | (3,585) | (5,315) | (3,585) |
Amounts reclassified from accumulated other comprehensive income (loss) | 139 | 203 | 279 | 203 |
Other comprehensive income (loss), net of tax | 139 | 203 | 279 | 203 |
Balance at the end of the period | (5,036) | (3,382) | (5,036) | (3,382) |
Gain and Losses on sales of available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | 8,730 | 93 | 5,467 | (5,573) |
Other comprehensive income (loss) before reclassifications | (5,126) | 4,334 | (1,863) | 10,000 |
Amounts reclassified from accumulated other comprehensive income (loss) | (54) | (54) | ||
Other comprehensive income (loss), net of tax | (5,126) | 4,280 | (1,863) | 9,946 |
Balance at the end of the period | 3,604 | 4,373 | 3,604 | 4,373 |
Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | (557) | (562) | (529) | (565) |
Other comprehensive income (loss) before reclassifications | 18 | (66) | (57) | (110) |
Amounts reclassified from accumulated other comprehensive income (loss) | 40 | 45 | 87 | 92 |
Other comprehensive income (loss), net of tax | 58 | (21) | 30 | (18) |
Balance at the end of the period | $ (499) | $ (583) | $ (499) | $ (583) |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Interest expense | $ (2,488) | $ (3,858) | $ (5,438) | $ (7,854) |
Other noninterest income | 2,285 | 3,014 | 3,945 | 6,113 |
Salaries and employee benefits | (39,754) | (40,276) | (80,741) | (79,369) |
Provision for income taxes | (12,813) | (9,368) | (25,138) | (18,200) |
Net income available to common shareholders | 24,872 | 17,946 | 48,798 | 33,790 |
Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Net income available to common shareholders | (179) | (194) | (366) | (241) |
Gains and Losses on Cash Flow Hedges | Amount Reclassified from Accumulated Other Comprehensive Loss | Interest rate contracts | ||||
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Interest expense | (64) | (73) | (140) | (149) |
Provision for income taxes | 24 | 28 | 53 | 57 |
Net income available to common shareholders | (40) | (45) | (87) | (92) |
Gain and Losses on sales of available for sale securities | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Other noninterest income | (88) | (88) | ||
Provision for income taxes | 34 | 34 | ||
Net income available to common shareholders | (54) | (54) | ||
Amortization of defined benefit pension | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Salaries and employee benefits | (225) | (330) | (450) | (330) |
Provision for income taxes | 86 | 127 | 171 | 127 |
Net income available to common shareholders | $ (139) | $ (203) | $ (279) | $ (203) |
Derivative Financial Instrume79
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2009USD ($) | |
Derivative Financial Instruments | ||||||
After-tax unrealized gain on cash flow hedge in other comprehensive income | $ 58,000 | $ 21,000 | $ 30,000 | $ 18,000 | ||
Cash flow hedge liability | 806,000 | 942,000 | 806,000 | 942,000 | ||
Ineffectiveness in the cash flow hedge | 0 | 0 | 0 | 0 | ||
Collateral required to be provided | 850,000 | 1,100,000 | 850,000 | 1,100,000 | ||
Mortgage loan pipeline | ||||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | ||||||
Obligation | 114,782,000 | 99,563,000 | 114,782,000 | 99,563,000 | $ 67,201,000 | |
Expected closures | ||||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | ||||||
Obligation | 86,087,000 | 74,672,000 | 86,087,000 | 74,672,000 | 50,760,000 | |
Mortgage loan pipeline commitments | ||||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | ||||||
Net fair value of the open contracts | 1,319,000 | 1,304,000 | 1,319,000 | 1,304,000 | 1,335,000 | |
Forward commitments | ||||||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | ||||||
Obligation | 124,000,000 | 91,000,000 | 124,000,000 | 91,000,000 | 81,000,000 | |
Net fair value of the open contracts | 1,099,000 | $ (416,000) | 1,099,000 | $ (416,000) | $ (313,000) | |
Non-designated hedges | Mortgage servicing rights hedging | ||||||
Derivative Financial Instruments | ||||||
Notional amount | 91,000,000 | 91,000,000 | ||||
Net fair value of the open contracts recorded as an asset | $ (266,000) | $ (266,000) | ||||
Interest rate contracts | Cash flow hedge | ||||||
Derivative Financial Instruments | ||||||
Notional amount | $ 8,000,000 | |||||
Fixed rate payable on notional amount (as a percent) | 4.06% | 4.06% | ||||
Variable rate basis, variable rate receivable on notional amount | three-month LIBOR | |||||
Savannah Bancorp ("SAVB") | Interest rate contracts | Non-designated hedges | ||||||
Derivative Financial Instruments | ||||||
Notional amount | $ 3,900,000 | $ 3,900,000 | ||||
Number of interest rate swaps contracts that were classified as non-designated hedges acquired through merger | item | 2 | 2 | ||||
Number of interest rate swaps held to facilitate a risk management strategy | item | 1 | 1 | ||||
Fair value of non-designated interest rate swaps recorded in other assets and other liabilities | $ 156,000 | $ 156,000 | ||||
Additional collateral required relating to a default provision in the derivative relationship | 355,000 | 355,000 | ||||
Termination value of obligations under agreement | $ 162,000 | $ 162,000 |
Capital Ratios (Details)
Capital Ratios (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Common equity Tier 1 to risk-weighted assets | ||||
Actual, Capital Amount | $ 695,107 | |||
Actual, Ratio (as a percent) | 12.16% | |||
Minimum capital required, Ratio (as a percent) | 4.50% | |||
Required to be considered well capitalized, Capital Amount | $ 372,011 | |||
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | |||
Tier I capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 745,570 | $ 713,371 | $ 676,812 | |
Actual, Ratio (as a percent) | 13.03% | 13.62% | 12.94% | |
Minimum capital required, Capital Amount | $ 209,491 | $ 209,172 | ||
Minimum capital required, Ratio (as a percent) | 6.00% | 4.00% | 4.00% | |
Required to be considered well capitalized, Capital Amount | $ 457,860 | |||
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | |||
Total capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 785,245 | $ 755,484 | $ 721,832 | |
Actual, Ratio (as a percent) | 13.72% | 14.43% | 13.80% | |
Minimum capital required, Capital Amount | $ 418,982 | $ 418,344 | ||
Minimum capital required, Ratio (as a percent) | 8.00% | 8.00% | 8.00% | |
Required to be considered well capitalized, Capital Amount | $ 572,325 | |||
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | |||
Tier I capital to average assets (leverage ratio) | ||||
Actual, Capital Amount | $ 745,570 | $ 713,371 | $ 676,812 | |
Actual, Ratio (as a percent) | 9.68% | 9.47% | 8.93% | |
Minimum capital required, Capital Amount | $ 301,363 | $ 303,089 | ||
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | 4.00% | |
Required to be considered well capitalized, Capital Amount | $ 385,089 | |||
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | |||
Subsequent event | ||||
Capital ratios | ||||
Capital conversion buffer common equity Tier 1 of risk-weighted assets (as a percent) | 2.50% | |||
Phase-In Schedule | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 257,546 | |||
Minimum capital required, Ratio (as a percent) | 4.50% | |||
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 343,395 | |||
Minimum capital required, Ratio (as a percent) | 6.00% | |||
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 457,860 | |||
Minimum capital required, Ratio (as a percent) | 8.00% | |||
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 308,071 | |||
Minimum capital required, Ratio (as a percent) | 4.00% | |||
Fully Phased-In | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 400,628 | |||
Minimum capital required, Ratio (as a percent) | 7.00% | |||
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 486,476 | |||
Minimum capital required, Ratio (as a percent) | 8.50% | |||
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 600,941 | |||
Minimum capital required, Ratio (as a percent) | 10.50% | |||
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 308,071 | |||
Minimum capital required, Ratio (as a percent) | 4.00% | |||
South State Bank (the Bank) | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Actual, Capital Amount | $ 725,545 | |||
Actual, Ratio (as a percent) | 12.68% | |||
Required to be considered well capitalized, Capital Amount | $ 371,874 | |||
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | |||
Tier I capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 725,545 | $ 700,280 | $ 666,432 | |
Actual, Ratio (as a percent) | 12.68% | 13.37% | 12.74% | |
Minimum capital required, Capital Amount | $ 209,438 | $ 209,183 | ||
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | ||
Required to be considered well capitalized, Capital Amount | $ 457,692 | $ 314,158 | $ 313,774 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 6.00% | 6.00% | |
Total capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 765,221 | $ 742,393 | $ 711,319 | |
Actual, Ratio (as a percent) | 13.38% | 14.18% | 13.60% | |
Minimum capital required, Capital Amount | $ 418,877 | $ 418,366 | ||
Minimum capital required, Ratio (as a percent) | 8.00% | 8.00% | ||
Required to be considered well capitalized, Capital Amount | $ 572,115 | $ 523,596 | $ 522,957 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | ||||
Actual, Capital Amount | $ 725,545 | $ 700,280 | $ 666,432 | |
Actual, Ratio (as a percent) | 9.43% | 9.30% | 8.81% | |
Minimum capital required, Capital Amount | $ 301,162 | $ 302,609 | ||
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | ||
Required to be considered well capitalized, Capital Amount | $ 384,851 | $ 376,452 | $ 378,261 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 5.00% | 5.00% | |
South State Bank (the Bank) | Phase-In Schedule | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 257,452 | |||
Minimum capital required, Ratio (as a percent) | 4.50% | |||
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 343,269 | |||
Minimum capital required, Ratio (as a percent) | 6.00% | |||
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 457,692 | |||
Minimum capital required, Ratio (as a percent) | 8.00% | |||
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 307,881 | |||
Minimum capital required, Ratio (as a percent) | 4.00% | |||
South State Bank (the Bank) | Fully Phased-In | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 400,480 | |||
Minimum capital required, Ratio (as a percent) | 7.00% | |||
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 486,297 | |||
Minimum capital required, Ratio (as a percent) | 8.50% | |||
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 600,720 | |||
Minimum capital required, Ratio (as a percent) | 10.50% | |||
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 307,881 | |||
Minimum capital required, Ratio (as a percent) | 4.00% |
Goodwill and Other Intangible81
Goodwill and Other Intangible Assets (Details) $ in Millions | Jun. 30, 2015USD ($) |
Goodwill | |
Carrying amount of goodwill | $ 317.7 |
Goodwill and Other Intangible82
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Other intangible assets | ||||
Gross carrying amount | $ 75,354 | $ 75,354 | $ 75,354 | $ 75,354 |
Accumulated amortization | (30,094) | (30,094) | (26,115) | (21,983) |
Net carrying amount | 45,260 | 45,260 | 49,239 | 53,371 |
Amortization expense | 2,000 | 4,000 | ||
Estimated amortization expense for other intangibles for each of the next five quarters | ||||
September 30, 2015 | 1,963 | 1,963 | ||
December 31, 2015 | 1,948 | 1,948 | ||
March 31, 2016 | 1,604 | 1,604 | ||
June 30, 2016 | 1,592 | 1,592 | ||
September 30, 2016 | 1,591 | 1,591 | ||
Thereafter | 36,562 | 36,562 | ||
Net carrying amount | $ 45,260 | $ 45,260 | $ 49,239 | $ 53,371 |
Minimum | ||||
Other intangible assets | ||||
Estimated useful lives | 2 years | |||
Maximum | ||||
Other intangible assets | ||||
Estimated useful lives | 15 years |
Loan Servicing, Mortgage Orig83
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
Loans held for sale, loan servicing and mortgage origination | ||||||
Residential mortgages serviced for others | $ 2,500,000 | $ 2,200,000 | $ 2,300,000 | |||
Contractually specified servicing fees earned | 1,500 | 1,400 | $ 300 | $ 2,700 | ||
MSRs | ||||||
Loans held for sale, loan servicing and mortgage origination | ||||||
Mortgage servicing rights | 25,325 | 21,015 | 21,601 | 20,729 | $ 20,729 | $ 21,601 |
Changes in the fair value of MSRs and its offsetting hedge | ||||||
Increase (decrease) in fair value of MSRs | 2,374 | (483) | 1,539 | (692) | ||
Decay of MSRs | (899) | (621) | (1,736) | (1,076) | ||
Gains (losses) related to derivatives | (1,092) | 1,140 | 430 | 1,935 | ||
Net effect on Statements of Income | 383 | 36 | 233 | 167 | ||
Analysis of the activity in the MSRs | ||||||
Balance at beginning of the period | 21,601 | 20,729 | 20,729 | |||
Additions/(deductions): | ||||||
Servicing assets that resulted from transfers of financial assets | 3,921 | 2,054 | ||||
Change in fair value due to valuation inputs or assumptions | 1,539 | (692) | ||||
Decay in fair value: | ||||||
Due to increases in principal paydowns or runoff | (1,736) | (1,076) | ||||
Carrying value at end of period | $ 25,325 | $ 21,015 | $ 25,325 | $ 21,015 | $ 21,601 | |
Characteristics and sensitivity analysis of the MSR | ||||||
Residential Mortgages Serviced for Others Percentage | 100.00% | 100.00% | 100.00% | |||
Weighted average life | 7 years 4 months 17 days | 6 years 4 days | 6 years 3 months 18 days | |||
Constant prepayment rate (as a percent) | 9.00% | 12.10% | 11.40% | |||
Weighted average discount rate (as a percent) | 9.70% | 9.40% | 9.70% | |||
Effect on fair value due to change in interest rates: | ||||||
25 basis point increase | $ 1,335 | $ 1,311 | $ 1,365 | |||
50 basis point increase | 2,490 | 2,499 | 2,555 | |||
25 basis point decrease | (1,567) | (1,470) | (1,562) | |||
50 basis point decrease | (3,313) | (2,736) | $ (3,221) | |||
Custodial escrow balances maintained in connection with the loan servicing | $ 17,800 | $ 15,600 | ||||
Fixed-rate mortgage loans | ||||||
Characteristics and sensitivity analysis of the MSR | ||||||
Residential Mortgages Serviced for Others Percentage | 99.30% | 99.10% | 99.20% | |||
Adjustable-rate mortgage loans | ||||||
Characteristics and sensitivity analysis of the MSR | ||||||
Residential Mortgages Serviced for Others Percentage | 0.70% | 0.90% | 0.80% |
Loan Servicing, Mortgage Orig84
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||||
Loan sales | $ 259 | $ 154.6 | $ 455 | $ 270.3 | |
Loan securitizations and loan sales | $ 204 | $ 128.2 | $ 351.1 | $ 216 | |
Percentage of loan securitizations and loan sales | 78.80% | 82.90% | 77.20% | 80.00% | |
Residential mortgage loans awaiting sale in secondary market | Minimum | |||||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||||
Loans held for sale, settlement period | 15 days | ||||
Residential mortgage loans awaiting sale in secondary market | Maximum | |||||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||||
Loans held for sale, settlement period | 45 days | ||||
Residential mortgage loans to be sold in secondary market | |||||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||||
Residential mortgage loans held for sale | $ 73.1 | $ 56.4 | $ 73.1 | $ 56.4 | $ 61.9 |
Investments in Qualified Affo85
Investments in Qualified Affordable Housing Projects (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Investment In Qualified Affordable Housing Projects. | ||
Tax Credits and Benefits | $ 918,000 | $ 713,000 |
Share of book losses | 655,000 | 304,000 |
Carrying value | 12,700,000 | 14,300,000 |
Original Investment Value | 22,100,000 | |
Funding obligation | $ 1,700,000 | $ 7,600,000 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Secured Debt, Repurchase Agreements | |||
Carrying amount of securities sold under repurchase agreements with customers | $ 228.7 | $ 160.9 | $ 193.2 |
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 228.7 | $ 160.8 | $ 193.2 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | Aug. 21, 2015item | Apr. 22, 2015item | Dec. 31, 2015item | Jun. 30, 2015USD ($)item | Dec. 31, 2015item | Jun. 30, 2015USD ($)item | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) |
Subsequent events | ||||||||
Loans | $ | $ 73,055 | $ 73,055 | $ 61,934 | $ 56,407 | ||||
14 Branches and ATM Locations | ||||||||
Subsequent events | ||||||||
Number of consolidating or selling branches and ATM locations | 8 | 14 | ||||||
Bank of America | South Carolina | ||||||||
Subsequent events | ||||||||
Number of branches | 12 | |||||||
Bank of America | Georgia | ||||||||
Subsequent events | ||||||||
Number of branches | 1 | |||||||
Subsequent event | 14 Branches and ATM Locations | ||||||||
Subsequent events | ||||||||
Number of consolidating or selling branches and ATM locations | 6 | |||||||
Subsequent event | Contract for sale of two of the 14 branches | ||||||||
Subsequent events | ||||||||
Number of branches | 2 | |||||||
Deposit premium to be received (as a percent) | 3.50% | |||||||
Number of days average closing balance of deposits prior to closing | 30 days | |||||||
Subsequent event | Bank of America | ||||||||
Subsequent events | ||||||||
New markets | 6 | |||||||
Overlapping markets | 3 | |||||||
Deposit premium to be paid (as a percent) | 5.50% | |||||||
Number of days average closing balance of deposits prior to closing | 30 days |
Uncategorized Items - ssb-20150
Label | Element | Value |
Provision for Loan Losses Expensed | us-gaap_ProvisionForLoanLossesExpensed | $ 2,169 |
Provision for Loan Losses Expensed | us-gaap_ProvisionForLoanLossesExpensed | 3,144 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | 17,946 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | 24,872 |
Available-for-sale Securities, Gross Realized Gain (Loss) | us-gaap_AvailableForSaleSecuritiesGrossRealizedGainLossNet | 88 |
Fair Value Inputs Level3 [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | 20,729 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | us-gaap_FairValueMeasurementWithUnobservableInputsReconciliationRecurringBasisAssetValue | $ 21,601 |