Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Document Period End Date | Jun. 30, 2016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | CommunityOne Bancorp | |
Entity Central Index Key | 764,811 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 24,298,640 |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Assets | |||
Cash and due from banks | $ 25,733 | $ 23,852 | |
Interest-bearing bank balances | 27,839 | 15,323 | |
Investment securities: | |||
Available-for-sale, at estimated fair value (amortized cost of $374,740 in 2016 and $398,815 in 2015) | 377,646 | 390,434 | |
Held-to-maturity, at amortized cost (estimated fair value of $142,217 in 2016 and $145,185 in 2015) | 139,813 | 147,967 | |
Loans held for sale | 4,524 | 5,403 | |
Loans held for investment | 1,525,070 | 1,543,795 | |
Less: Allowance for loan losses | (13,705) | (15,195) | |
Net loans held for investment | 1,511,365 | 1,528,600 | |
Premises and equipment, net | 42,816 | 44,457 | |
Other real estate owned and property acquired in settlement of loans | 14,436 | 16,583 | |
Core deposit premiums and other intangibles | 5,160 | 5,208 | |
Goodwill | 4,205 | 4,205 | |
Bank-owned life insurance | 41,463 | 40,869 | |
Deferred tax assets, net | 133,496 | 141,716 | |
Other assets | 28,296 | 32,648 | |
Total Assets | 2,356,792 | 2,397,265 | |
Liabilities | |||
Noninterest-bearing demand deposits | 393,799 | 386,329 | |
Interest-bearing deposits: | |||
Demand, savings and money market deposits | 902,444 | 939,878 | |
Time deposits of $250 or more | 70,930 | 60,093 | |
Other time deposits | 549,308 | 561,237 | |
Total deposits | 1,916,481 | 1,947,537 | |
Retail repurchase agreements | 12,761 | 7,219 | |
Federal Home Loan Bank advances | 65,153 | 93,681 | |
Long-term notes payable | 5,454 | 5,415 | |
Junior subordinated debentures | 56,702 | 56,702 | |
Other liabilities | 12,802 | 13,673 | |
Total Liabilities | 2,069,353 | 2,124,227 | |
Shareholders' Equity | |||
Common stock, no par value; authorized 2,500,000,000 shares, issued 24,298,640 shares in 2016 and 24,292,646 in 2015 | 490,421 | 490,075 | |
Accumulated deficit | (198,492) | (206,298) | |
Accumulated other comprehensive loss | (4,490) | (10,739) | |
Total Shareholders' Equity | 287,439 | 273,038 | |
Total Liabilities and Shareholders' Equity | 2,356,792 | 2,397,265 | |
Preferred stock, Series A [Member] | |||
Shareholders' Equity | |||
Preferred stock | 0 | 0 | |
Preferred stock, Series B [Member] | |||
Shareholders' Equity | |||
Preferred stock | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Amortized cost of available-for-sale securities | $ 374,740 | $ 398,815 | |
Fair value of held-to-maturity securities | $ 142,217 | $ 145,185 | |
Preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 | |
Common stock, shares authorized (shares) | 2,500,000,000 | 2,500,000,000 | |
Common stock, shares issued (shares) | 24,298,640 | 24,292,646 | |
Preferred stock, Series A [Member] | |||
Preferred stock, par value (in dollars per share) | $ 10 | $ 10 | |
Preferred stock, shares issued (shares) | 51,500 | 51,500 | |
Preferred stock, shares outstanding (shares) | 0 | 0 | |
Preferred stock, Series B [Member] | |||
Preferred stock, shares authorized (shares) | 250,000 | 250,000 | |
Preferred stock, shares issued (shares) | 0 | 0 | |
Preferred stock, shares outstanding (shares) | 0 | 0 | |
[1] | Derived from audited consolidated financial statements |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Income | ||||
Interest and fees on loans | $ 17,636 | $ 16,006 | $ 34,608 | $ 31,879 |
Interest and dividends on investment securities | 3,028 | 3,116 | 6,311 | 6,340 |
Other interest income | 269 | 208 | 503 | 379 |
Total interest income | 20,933 | 19,330 | 41,422 | 38,598 |
Interest Expense | ||||
Deposits | 1,852 | 1,732 | 3,731 | 3,464 |
Retail repurchase agreements | 3 | 5 | 7 | 9 |
Federal Home Loan Bank advances | 455 | 488 | 957 | 957 |
Other borrowed funds | 331 | 278 | 652 | 568 |
Total interest expense | 2,641 | 2,503 | 5,347 | 4,998 |
Net Interest Income before Provision for (Recovery of Provision for) Loan Losses | 18,292 | 16,827 | 36,075 | 33,600 |
Provision for (Recovery of provision for) loan losses | 507 | (788) | (28) | (1,926) |
Net Interest Income after Provision for (Recovery of Provision for) Loan Losses | 17,785 | 17,615 | 36,103 | 35,526 |
Noninterest Income | ||||
Service charges on deposit accounts | 1,561 | 1,433 | 3,118 | 2,867 |
Mortgage loan income | 683 | 314 | 2,824 | 779 |
Cardholder and merchant services income | 1,332 | 1,218 | 2,573 | 2,343 |
Trust and investment services | 365 | 403 | 745 | 725 |
Bank-owned life insurance | 269 | 268 | 538 | 518 |
Other service charges, commissions and fees | 498 | 421 | 941 | 804 |
Other income | 449 | 97 | 741 | 152 |
Total noninterest income | 5,157 | 4,154 | 11,480 | 8,188 |
Noninterest Expense | ||||
Personnel expense | 9,906 | 10,462 | 20,044 | 21,056 |
Net occupancy expense | 1,319 | 1,211 | 2,872 | 2,680 |
Furniture, equipment and data processing expense | 1,921 | 1,875 | 4,051 | 3,864 |
Professional fees | 575 | 528 | 1,025 | 1,067 |
Stationery, printing and supplies | 127 | 141 | 287 | 317 |
Advertising and marketing | 46 | 134 | 106 | 320 |
Other real estate owned expense | 52 | 506 | 536 | 865 |
Credit/debit card expense | 429 | 498 | 868 | 1,042 |
FDIC insurance | 398 | 456 | 859 | 909 |
Loan collection expense | 144 | 313 | 293 | 613 |
Merger-related expense | 215 | 0 | 986 | 0 |
Core deposit premium intangible amortization | 227 | 352 | 565 | 704 |
Other expense | 1,400 | 1,351 | 2,668 | 2,398 |
Total noninterest expense | 16,759 | 17,827 | 35,160 | 35,835 |
Income before income taxes | 6,183 | 3,942 | 12,423 | 7,879 |
Income tax expense | 2,291 | 1,419 | 4,617 | 2,837 |
Net income | $ 3,892 | $ 2,523 | $ 7,806 | $ 5,042 |
Weighted average number of shares outstanding - basic (shares) | 24,294,424 | 24,202,012 | 24,293,214 | 24,192,744 |
Weighted average number of shares outstanding - diluted (shares) | 24,316,019 | 24,214,578 | 24,314,165 | 24,204,832 |
Net income per share - basic and diluted (in dollars per share) | $ 0.16 | $ 0.10 | $ 0.32 | $ 0.21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,892 | $ 2,523 | $ 7,806 | $ 5,042 |
Other comprehensive income: | ||||
Unrealized gains (losses) arising during the period on available-for-sale securities | 3,774 | (6,761) | 11,200 | (4,073) |
Tax effect | (1,419) | 2,586 | (4,211) | 1,558 |
Unrealized gains (losses) arising during the period on available-for-sale securities, net of tax | 2,355 | (4,175) | 6,989 | (2,515) |
Change in defined benefit plans liability | 0 | 0 | (86) | 0 |
Tax effect | 0 | 0 | 32 | 0 |
Change in defined benefit plans liability, net of tax | 0 | 0 | (54) | 0 |
Unrealized loss on interest rate swaps | (223) | 421 | (1,106) | (102) |
Tax effect | 84 | (161) | 416 | 39 |
Unrealized loss on interest rate swaps, net of tax | (139) | 260 | (690) | (63) |
Reclassification adjustment for loss on interest rate swaps included in net income | 3 | 3 | 6 | 6 |
Tax effect | (1) | (1) | (2) | (2) |
Reclassification adjustment for loss on interest rate swaps included in net income, net of tax | 2 | 2 | 4 | 4 |
Other comprehensive income (loss), net of tax: | 2,218 | (3,913) | 6,249 | (2,574) |
Comprehensive income (loss) | $ 6,110 | $ (1,390) | $ 14,055 | $ 2,468 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Beginning balance (shares) at Dec. 31, 2014 | 0 | 24,185,923 | ||||
Beginning balance at Dec. 31, 2014 | $ 266,916 | $ 0 | $ 487,603 | $ (213,212) | $ (7,475) | |
Comprehensive income: | ||||||
Net income | 5,042 | 5,042 | ||||
Other comprehensive income (loss), net of tax | (2,574) | (2,574) | ||||
Comprehensive income (loss) | 2,468 | |||||
Compensation expense recognized | 381 | $ 381 | ||||
Issuance of restricted stock awards, net of cancellations (shares) | 24,358 | |||||
Shares issued as compensation to directors (shares) | 1,942 | |||||
Shares issued as compensation to directors | 21 | $ 21 | ||||
Ending balance (shares) at Jun. 30, 2015 | 0 | 24,212,223 | ||||
Ending balance at Jun. 30, 2015 | 269,786 | $ 0 | $ 488,005 | (208,170) | (10,049) | |
Beginning balance (shares) at Dec. 31, 2015 | 0 | 24,292,646 | ||||
Beginning balance at Dec. 31, 2015 | 273,038 | [1] | $ 0 | $ 490,075 | (206,298) | (10,739) |
Comprehensive income: | ||||||
Net income | 7,806 | 7,806 | ||||
Other comprehensive income (loss), net of tax | 6,249 | 6,249 | ||||
Comprehensive income (loss) | 14,055 | |||||
Compensation expense recognized | 339 | $ 339 | ||||
Issuance of restricted stock awards, net of cancellations (shares) | (1,200) | |||||
Shares issued as compensation to directors (shares) | 7,194 | |||||
Shares issued as compensation to directors | 67 | $ 67 | ||||
Cancellation of stock warrant | (60) | $ (60) | ||||
Ending balance (shares) at Jun. 30, 2016 | 0 | 24,298,640 | ||||
Ending balance at Jun. 30, 2016 | $ 287,439 | $ 0 | $ 490,421 | $ (198,492) | $ (4,490) | |
[1] | Derived from audited consolidated financial statements |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net income | $ 7,806 | $ 5,042 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation and amortization of premises and equipment | 1,864 | 1,817 |
Recovery of loan losses | (28) | (1,926) |
Deferred income taxes | 4,617 | 2,798 |
Deferred loan fees and costs, net | (235) | (172) |
Premium amortization and discount accretion of investment securities, net | 1,498 | 1,358 |
Amortization of core deposit premiums | 565 | 704 |
Net accretion on acquired loans | (2,774) | (3,943) |
Stock compensation expense | 339 | 402 |
Increase in cash surrender value of bank-owned life insurance, net | (594) | (553) |
Origination of loans held for sale | (32,020) | (48,585) |
Net proceeds from sale of loans held for sale | 33,321 | 49,049 |
Net gain on sale of loans held for sale | (422) | (435) |
Mortgage servicing rights capitalized | (957) | (556) |
Mortgage servicing rights amortization | 376 | 270 |
Net gain on sale of premises and equipment | (209) | (368) |
Net loss on sales and write-downs of other real estate owned | 504 | 685 |
Changes in assets and liabilities: | ||
Decrease (Increase) in accrued interest receivable and other assets | 3,498 | (5,958) |
Increase (Decrease) in accrued interest payable and other liabilities | (918) | (3,466) |
Net cash provided by (used in) operating activities | 16,231 | (3,837) |
Available-for-sale securities: | ||
Proceeds from maturities, calls and principal repayments | 22,791 | 24,022 |
Purchases | 0 | (60,525) |
Held-to-maturity securities: | ||
Proceeds from maturities, calls and principal repayments | 7,853 | 5,952 |
Payments to Acquire Held-to-maturity Securities | 0 | (20,394) |
Net increase in loans held for investment | (28,800) | (87,747) |
Proceeds from sales of other real estate owned | 3,758 | 3,153 |
Purchases of premises and equipment | (289) | (1,343) |
Proceeds from sales of premises and equipment | 246 | 1,754 |
Net cash received in branch deposit acquisition | 0 | 56,788 |
Net cash received from bulk sale of loans | 46,642 | 0 |
Net cash provided by (used in) investing activities | 52,201 | (78,340) |
Financing Activities | ||
Net increase (decrease) in deposits | (31,056) | 2,459 |
Increase in retail repurchase agreements | 5,542 | 2,348 |
Increase (Decrease) in Federal Home Loan Bank advances | (28,528) | 12,474 |
Cancellation of common stock warrant | (60) | 0 |
Issuance of common stock, net of expense | 67 | 0 |
Net cash provided by (used in) financing activities | (54,035) | 17,281 |
Net Increase (Decrease) in Cash and Cash Equivalents | 14,397 | (64,896) |
Cash and Cash Equivalents at Beginning of Period | 39,175 | 95,882 |
Cash and Cash Equivalents at End of Period | 53,572 | 30,986 |
Cash paid during the period for: | ||
Interest | 5,361 | 8,285 |
Income taxes, net of refunds | 343 | 39 |
Noncash transactions: | ||
Foreclosed loans transferred to other real estate owned | 2,202 | 3,433 |
Unrealized securities gains (losses), net of income taxes | 6,989 | (2,515) |
Transfer of fixed assets to other assets | 0 | 1,335 |
Employee benefit plan costs, net of income taxes | (54) | 0 |
Unrealized loss on interest rate swaps, net of income taxes | (686) | (59) |
Assets acquired in branch purchase | 0 | 58,770 |
Liabilities assumed in branch purchase | $ 0 | $ 58,770 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Nature of Operations CommunityOne Bancorp, (“COB” or the “Company,” also referred to as “us” or “we” and our subsidiaries on a consolidated basis), is a bank holding company headquartered in Charlotte, North Carolina and incorporated in 1984 under the laws of the State of North Carolina. Through our ownership of CommunityOne Bank, N.A., or the “Bank,” a national banking association founded in 1907 and headquartered in Asheboro, North Carolina, we offer a complete line of consumer, mortgage and business banking services, including loan, deposit, treasury management, online and mobile banking services, as well as wealth management and trust services, to individual and small and middle market businesses through financial centers located throughout central, southern and western North Carolina. Our strategy is to grow the Company organically by focusing on meeting the financial needs of customers in our market area by providing a suite of quality financial products and services through local and experienced bankers and lenders located in branches and loan production offices in our customers’ local market. We also offer the convenience of online and mobile banking capabilities. In addition to organic growth, our strategy is to grow through merger and acquisition activity in our markets, should attractive opportunities present themselves. We define our market as communities located in North Carolina, as well as adjoining markets in South Carolina and Virginia. On November 22, 2015, we entered into an Agreement and Plan of Merger (“Merger Agreement”) with Capital Bank Financial Corp., a Delaware corporation (“Capital”), under which, upon the terms and subject to the conditions set forth in the Merger Agreement, COB will merge with and into Capital (“Merger”), with Capital as the surviving corporation in the Merger. Immediately following the Merger, the Bank will merge with and into Capital’s wholly owned bank subsidiary, with Capital’s bank subsidiary surviving the bank merger. The Merger is subject to, among other things, regulatory approval and other customary closing conditions. Shareholders of both COB and Capital approved the Merger on April 18, 2016. General In the accompanying consolidated financial statements, prepared without audit, all significant intercompany balances and transactions have been eliminated. Descriptions of the organization and business of COB, accounting policies followed by COB and other relevant information are contained in our Annual Report on Form 10-K for the year ended December 31, 2015 (the "Form 10-K"), including the Notes to the consolidated financial statements filed as part of that report. This quarterly report should be read in conjunction with the Form 10-K. In the opinion of management, the accompanying consolidated financial statements contain the adjustments, all of which are normal recurring adjustments, necessary to present fairly the financial position of COB as of June 30, 2016 and December 31, 2015 , and the results of its operations and cash flows for the six months ended June 30, 2016 and 2015 , respectively. Use of Estimates We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States ("GAAP"). Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the allowance for loan losses (“ALL”), estimated cash flows of purchased impaired loans, the carrying value of other real estate owned ("OREO"), the carrying value of investment securities and the realization of deferred tax assets. Reclassification Certain reclassifications have been made to the prior period consolidated financial statements to place them on a comparable basis with the current period consolidated financial statements. These reclassifications have no effect on net income or shareholders' equity as previously reported. Recent Accounting Pronouncements Credit Losses - In June 2016, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update ("ASU") 2016-13, "Measurement of Credit Losses on Financial Instruments" as part of its project on financial instruments. The new standard introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The adoption of ASU 2016-13 will be effective for the fiscal year beginning after December 15, 2019. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Stock Compensation - In March 2016, the FASB issued Accounting Standards Update ASU 2016-09, "Compensation—Stock compensation (Topic 718): Improvements to employee share-based payment accounting" which objective is the simplification through the identification, evaluation, and improvement of areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The adoption of ASU 2016-9 will be effective for the fiscal year beginning after December 15, 2016. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Leases - In January 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This ASU, along with IFRS 16, Leases, are the result of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting. The Boards decided to not fundamentally change lessor accounting with the amendments in this Update. However, some changes have been made to lessor accounting to conform and align that guidance with the lessee guidance and other areas within generally accepted accounting principles (GAAP), such as Topic 606, Revenue from Contracts with Customers. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The adoption of ASU 2016-2 will be effective for the fiscal year beginning after December 15, 2018. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Financial Instruments - In January 2016, the FASB issued Accounting Standards Update ("ASU") 2016-01, "Financial instruments—Overall (Subtopic 825-10)," which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this ASU eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The amendments in ASU 2016-1 are effective for us for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB - From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of COB and monitors the status of changes to and proposed effective dates of exposure drafts. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows. |
Acquisition by Capital Bank Fin
Acquisition by Capital Bank Financial Corp. | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition by Capital Bank Financial Corp. | Acquisition by Capital Bank Financial Corp. On November 22, 2015, we entered into the Merger Agreement with Capital, under which, upon the terms and subject to the conditions set forth in the Merger Agreement, COB will merge with and into Capital in the Merger, with Capital as the surviving corporation in the Merger. Immediately following the Merger, the Bank will merge with and into Capital’s wholly-owned bank subsidiary, with Capital’s wholly-owned bank subsidiary surviving the bank merger. Shareholders of both COB and Capital approved the Merger on April 18, 2016. The Merger is subject to, among other things, regulatory approval and other customary closing conditions which remain pending. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Securities designated as available-for-sale are carried at fair value. However, the unrealized difference between amortized cost and fair value of securities available-for-sale is excluded from net income unless there is an other than temporary impairment and it is reported, net of deferred taxes, as a component of shareholders' equity as accumulated other comprehensive income (loss). Securities designated as held-to-maturity are carried at amortized cost, as the Company has the ability, and management has the positive intent, to hold these securities to maturity. Premiums and discounts on securities are amortized and accreted according to the interest method. Our primary objective in managing the investment portfolio is to maintain a portfolio of high quality, highly liquid investments yielding competitive returns. We are required under federal regulations to maintain adequate liquidity to ensure safe and sound operations. We maintain investment balances based on a continuing assessment of cash flows, the level of loan production, current interest rate risk strategies and an assessment of the potential future direction of market interest rate changes. Investment securities differ in terms of default, interest rate, liquidity and expected rate of return risks. The following table summarizes the amortized cost and estimated fair value of investment securities and presents the related gross unrealized gains and losses: June 30, 2016 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-Sale: Residential mortgage-backed securities-GSE $ 269,169 $ 2,497 $ 671 $ 270,995 Residential mortgage-backed securities-Private 28,567 450 33 28,984 Commercial mortgage-backed securities-GSE 21,779 388 — 22,167 Commercial mortgage-backed securities-Private 17,847 362 128 18,081 Corporate notes 37,378 43 2 37,419 Total available-for-sale 374,740 3,740 834 377,646 Held-to-Maturity: Residential mortgage-backed securities-GSE 115,395 1,975 13 117,357 Residential mortgage-backed securities-Private 14,363 38 — 14,401 Commercial mortgage-backed securities-Private 10,055 404 — 10,459 Total held-to-maturity 139,813 2,417 13 142,217 Total investment securities $ 514,553 $ 6,157 $ 847 $ 519,863 December 31, 2015 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-Sale: Obligations of U.S. government sponsored enterprises $ 2,005 $ 3 $ — $ 2,008 Residential mortgage-backed securities-GSE 286,057 339 8,289 278,107 Residential mortgage-backed securities-Private 33,235 578 236 33,577 Commercial mortgage-backed securities-GSE 21,980 — 368 21,612 Commercial mortgage-backed securities-Private 17,869 — 294 17,575 Corporate notes 37,669 — 114 37,555 Total available-for-sale 398,815 920 9,301 390,434 Held-to-Maturity: Residential mortgage-backed securities-GSE 120,197 — 2,310 117,887 Residential mortgage-backed securities-Private 17,712 — 298 17,414 Commercial mortgage-backed securities-Private 10,058 — 174 9,884 Total held-to-maturity 147,967 — 2,782 145,185 Total investment securities $ 546,782 $ 920 $ 12,083 $ 535,619 As a member of the Federal Home Loan Bank of Atlanta (“FHLB”), the Bank is required to own capital stock in the FHLB based generally upon the balances of total assets and FHLB advances. FHLB capital stock is pledged to secure FHLB advances. This investment is carried at cost since no ready market exists for FHLB stock and there is no quoted market value. However, redemption of this stock has historically been at par value. The Bank owned a total of $4.9 million of FHLB stock at June 30, 2016 and $6.0 million at December 31, 2015 . Due to the redemption provisions of FHLB stock, we have estimated that fair value approximated cost and that this investment was not impaired at June 30, 2016 . FHLB stock is included in other assets at its original cost basis. As a member bank of the Federal Reserve Bank of Richmond (“FRBR”), the Bank also is required to own capital stock of the FRBR based upon a percentage of the Bank's common stock and surplus. This investment is carried at cost since no ready market exists for FRBR stock and there is no quoted market value. At June 30, 2016 and December 31, 2015 , the Bank owned a total of $10.1 million and $9.9 million of FRBR stock, respectively. Because this investment is in an entity of the U.S. government, we have estimated that fair value approximated the cost and that this investment was not impaired at June 30, 2016 . FRBR stock is included in other assets at its original cost basis. At June 30, 2016 , $158.0 million of the investment securities portfolio was pledged to secure public deposits, $15.9 million was pledged to retail repurchase agreements and $162.5 million was pledged to others, leaving $181.0 million available as pledgeable collateral. The Bank did not sell any investment securities during the three and six months ended June 30, 2016 or the three and six months ended June 30, 2015. The following tables show our investments' estimated fair value and gross unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at June 30, 2016 and December 31, 2015 . The change in unrealized losses during the six months ending June 30, 2016 was attributed to changes in interest rates and not to changes in the credit quality of these securities. All unrealized losses on investment securities are considered by management to be temporary given the credit quality of these investment securities or the short duration of the unrealized loss, or both. Less than 12 Months 12 Months or More Total (dollars in thousands) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses June 30, 2016 Available-for-Sale: Residential mortgage-backed securities-GSE $ — $ — $ 119,845 $ 671 $ 119,845 $ 671 Residential mortgage-backed securities-Private 2,791 28 621 5 3,412 33 Commercial mortgage-backed securities-Private — — 7,422 128 7,422 128 Corporate Notes 10,004 2 — — 10,004 2 Total available-for-sale 12,795 30 127,888 804 140,683 834 Held-to-Maturity: Residential mortgage-backed securities-GSE — — 12,739 13 12,739 13 Total held-to-maturity — — 12,739 13 12,739 13 Total $ 12,795 $ 30 $ 140,627 $ 817 $ 153,422 $ 847 December 31, 2015 Available-for-Sale Residential mortgage-backed securities-GSE $ 137,998 $ 2,560 $ 132,148 $ 5,729 $ 270,146 $ 8,289 Residential mortgage-backed securities-Private 26,265 231 636 5 26,901 236 Commercial mortgage-backed securities-GSE 21,612 368 — — 21,612 368 Commercial mortgage-backed securities-Private 17,575 294 — — 17,575 294 Corporate notes 30,523 114 — — 30,523 114 Total available-for-sale 233,973 3,567 132,784 5,734 366,757 9,301 Held-to-Maturity: Residential mortgage-backed securities-GSE 83,014 1,481 34,872 829 117,886 2,310 Residential mortgage-backed securities-Private 17,414 298 — — 17,414 298 Commercial mortgage-backed securities-Private 9,884 174 — — 9,884 174 Total held-to-maturity 110,312 1,953 34,872 829 145,184 2,782 Total $ 344,285 $ 5,520 $ 167,656 $ 6,563 $ 511,941 $ 12,083 At both June 30, 2016 and December 31, 2015, there were 18 securities that were in a continuous unrealized loss position for 12 months or more. We analyzed our securities portfolio at June 30, 2016 , and considered ratings, fair value, cash flows and other factors to determine if any of the securities were other than temporarily impaired. Since none of the unrealized losses relate to the marketability of the securities or the issuer’s ability to honor redemption obligations, and we have determined that it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis, none of the securities are deemed to be other than temporarily impaired. The aggregate amortized cost and fair value of securities at June 30, 2016 , by remaining contractual maturity, are shown in the following table. Actual expected maturities may differ from contractual maturities because issuers may have the right to call or prepay the obligations. Mortgage backed securities are grouped based on stated maturity date, but actual maturity will vary based on the actual repayment of the underlying mortgage loans. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Residential mortgage-backed securities-GSE Due after five years through 10 years $ 1,568 $ 1,617 $ — $ — Due after ten years 267,601 269,378 115,395 117,357 Residential mortgage-backed securities-Private Due after ten years 28,567 28,984 14,363 14,401 Commercial mortgage-backed securities-GSE Due after one year through five years 21,779 22,167 — — Commercial mortgage-backed securities-Private Due after ten years 17,847 18,081 10,055 10,459 Corporate notes Due in one year or less 30,335 30,354 — — Due after one year through five years 7,043 7,065 — — Total $ 374,740 $ 377,646 $ 139,813 $ 142,217 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Loans Receivable, Net [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses General Loans held for investment are stated at the principal amounts outstanding adjusted for purchase premiums/discounts, deferred net loan fees and costs, and unearned income. We report our loan portfolio by segments and classes, which are disaggregations of portfolio segments. Our portfolio segments are: Commercial and agricultural, Real estate, and Consumer loans. The Commercial and agricultural loan and Consumer loan portfolios are not further segregated into classes. The classes within the Real estate portfolio segment include Real estate - construction and Real estate - mortgage, which is further broken into 1-4 family residential mortgage and Commercial real estate mortgage loans. Loan fees and the incremental direct costs associated with originating a loan are deferred and subsequently recognized over the life of the loan as an adjustment to interest income. In addition to originating loans, we also purchase loans. At acquisition, purchased loans are designated as either purchased contractual loans ("PC loans") or purchased impaired loans ("PI loans"). PC loans are acquired loans where management believes it is probable that it will receive all principal as of the date of acquisition. These loans are accounted for under the contractual cash flow method, under ASC 310-20. Any discount or premium paid on PC loans is amortized and included in interest income using the effective yield method over the expected life of the loans. PI loans are acquired loans whose purchase price has been discounted, in part, due to credit deterioration occurring subsequent to origination. Accordingly, management believes it is probable that all contractual principal and interest on these acquired loans will not be received. PI loans are placed in homogeneous risk-based pools where accounting for projected cash flows is performed, as allowed under ASC 310-30. Once a pool is established the individual loans within each pool do not change. As management obtains new information related to changes in expected principal loss and expected cash flows, by pool, we record either an increase in yield when new expected cash flows increase, an allowance for loan losses when new expected cash flows decline, or a decrease in yield when there is only a timing difference in expected cash flows. Loans acquired in the 2011 merger with Bank of Granite Corp. ("Granite Purchased Loans") included PI loans and PC loans. Loans designated as PC loans included performing revolving consumer and performing revolving commercial loans on the acquisition date. The following table presents an aging analysis of accruing and nonaccruing loans as of June 30, 2016 : (dollars in thousands) Accruing 30-59 days past due 60-89 days past due More than 90 days past due Nonaccrual Total past due and nonaccrual Current and accruing Total Loans PC and Originated Loans Commercial and agricultural $ 80 $ 49 $ — $ 480 $ 609 $ 140,986 $ 141,595 Real estate - construction 540 — — 72 612 106,337 106,949 Real estate - mortgage: 1-4 family residential 433 671 — 7,471 8,575 635,841 644,416 Commercial 63 — — 5,969 6,032 431,936 437,968 Consumer 1,311 342 — 678 2,331 119,213 121,544 Total 2,427 1,062 — 14,670 18,159 1,434,313 1,452,472 PI loans Commercial and agricultural 47 — 1,721 — 1,768 2,839 4,607 Real estate - construction — — 1,309 — 1,309 5,726 7,035 Real estate - mortgage: 1-4 family residential 78 40 1,133 — 1,251 11,154 12,405 Commercial — 22 8,122 — 8,144 39,584 47,728 Consumer 2 5 3 — 10 813 823 Total 127 67 12,288 — 12,482 60,116 72,598 Total Loans $ 2,554 $ 1,129 $ 12,288 $ 14,670 $ 30,641 $ 1,494,429 $ 1,525,070 The following table presents an aging analysis of accruing and nonaccruing loans as of December 31, 2015 : (dollars in thousands) Accruing 30-59 days past due 60-89 days past due More than 90 days past due Nonaccrual Total past due and nonaccrual Current and accruing Total Loans PC and Originated Loans Commercial and agricultural $ — $ 1 $ — $ 1,053 $ 1,054 $ 146,257 $ 147,311 Real estate - construction 761 140 — 110 1,011 98,247 99,258 Real estate - mortgage: 1-4 family residential 2,710 574 817 9,106 13,207 660,430 673,637 Commercial 661 34 — 7,209 7,904 421,220 429,124 Consumer 1,227 250 1 538 2,016 104,885 106,901 Total 5,359 999 818 18,016 25,192 1,431,039 1,456,231 PI loans Commercial and agricultural 102 — 1,618 — 1,720 3,275 4,995 Real estate - construction — — 1,455 — 1,455 6,289 7,744 Real estate - mortgage: 1-4 family residential 602 15 1,127 — 1,744 12,173 13,917 Commercial 517 123 8,819 — 9,459 50,530 59,989 Consumer 8 — 6 — 14 905 919 Total 1,229 138 13,025 — 14,392 73,172 87,564 Total Loans $ 6,588 $ 1,137 $ 13,843 $ 18,016 $ 39,584 $ 1,504,211 $ 1,543,795 All PI loans are considered to be accruing for all periods presented, in accordance with ASC 310-30. Risk Grades The risk-grade categories presented in the tables below, which are standard categories used by the bank regulators, are: Pass - Loans categorized as Pass are higher quality loans that have adequate sources of repayment and little risk of collection. 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 asset or in the institution's credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. 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 have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of Substandard loans, does not have to exist in individual assets classified Substandard. Doubtful - A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors, which may work to the advantage of strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. Loans categorized as Special Mention, Substandard and Doubtful are considered Criticized. Loans categorized as Substandard or Doubtful are considered Classified. Purchased loans acquired in the merger with Bank of Granite Corp. are recorded at estimated fair value on the date of acquisition without the carryover of related ALL. The table below includes $16.2 million and $27.0 million in Granite Purchased Loans categorized as Substandard or Doubtful at June 30, 2016 and December 31, 2015 , respectively. The following table presents loans held for investment balances by risk grade as of June 30, 2016 : (dollars in thousands) Pass Special Mention Substandard Doubtful (Ratings 1-5) (Rating 6) (Rating 7) (Rating 8) Total Commercial and agricultural $ 138,177 $ 5,657 $ 2,368 $ — $ 146,202 Real estate - construction 108,486 1,784 3,714 — 113,984 Real estate - mortgage: 1-4 family residential 643,150 2,222 11,449 — 656,821 Commercial 453,787 10,768 21,141 — 485,696 Consumer 121,214 5 696 452 122,367 Total $ 1,464,814 $ 20,436 $ 39,368 $ 452 $ 1,525,070 The following table presents loans held for investment balances by risk grade as of December 31, 2015 : (dollars in thousands) Pass Special Mention Substandard Doubtful (Ratings 1-5) (Rating 6) (Rating 7) (Rating 8) Total Commercial and agricultural $ 148,844 $ 672 $ 2,790 $ — $ 152,306 Real estate - construction 100,252 2,122 4,628 — 107,002 Real estate - mortgage: 1-4 family residential 669,695 3,508 14,351 — 687,554 Commercial 450,587 12,765 25,761 — 489,113 Consumer 107,008 4 553 255 107,820 Total $ 1,476,386 $ 19,071 $ 48,083 $ 255 $ 1,543,795 Loans included in the preceding loan composition table are net of participations sold. Loans are increased by net loan premiums of $4.0 million and $3.7 million at June 30, 2016 and December 31, 2015 , respectively. At June 30, 2016 and December 31, 2015, loans held for sale consisted of originated residential mortgage loans held for sale carried at the lower of cost or fair market value. Loans serviced for others are not included in the consolidated balance sheet. The unpaid principal balance of loans serviced for others amounted to $376.5 million at June 30, 2016 and $304.6 million at December 31, 2015 . Loans Pledged To borrow from the FHLB, members must pledge collateral to secure advances and letters of credit. Acceptable collateral includes, among other types of collateral, a variety of residential, multifamily, home equity lines and second mortgages, and commercial loans. Gross loans of $91.9 million and $119.8 million of investment securities, and gross loans of $102.9 million and $113.0 million of investment securities, were pledged to collateralize FHLB advances and letters of credit at June 30, 2016 and December 31, 2015 , respectively, of which there was $82.0 million and $80.8 million of credit availability for borrowing, respectively. At June 30, 2016 , $3.6 million of loans and $42.8 million of securities were pledged to collateralize potential borrowings from the Federal Reserve Discount Window, of which $42.4 million was available as borrowing capacity. We could also access $326.9 million of additional borrowings from the FHLB under credit lines by pledging additional collateral. Nonaccruing and Impaired Loans Interest income on loans is calculated by using the interest method based on the daily outstanding balance. The recognition of interest income is discontinued when, in management's opinion, the collection of all or a portion of interest becomes doubtful. Loans are returned to accrual status when the factors indicating doubtful collectability cease to exist and the loan has performed in accordance with its terms for a demonstrated period of time. The past due status of loans is based on the contractual payment terms. Had nonaccruing loans been on accruing status, interest income would have been higher by $0.5 million and $0.7 million for the six months ended June 30, 2016 and June 30, 2015 , respectively. At June 30, 2016 and December 31, 2015 , COB had certain impaired loans of $14.7 million and $18.0 million , respectively, which were on nonaccruing interest status. All loan classes are considered past due when the contractual amounts due with respect to principal and interest are not received within 30 days of the contractual due date. When we cannot reasonably expect full and timely repayment of a loan, the loan is placed on nonaccrual. All loan classes on which principal or interest is in default for 90 days or more are put on nonaccrual status, unless there is sufficient information to conclude that the loan is well secured and in the process of collection. A debt is "well-secured" if collateralized by liens on or pledges of real or personal property, including securities, which have a realizable value sufficient to discharge the debt in full, or by the guarantee of a financially responsible party. A debt is "in process of collection" if collection is proceeding in due course either through legal action, including judgment enforcement procedures, or, in appropriate circumstances, through collection efforts not involving legal action that are reasonably expected to result in repayment of the debt or its restoration to a current status. Loans that are less than 90 days delinquent may also be placed on nonaccrual if deterioration in the financial condition of the borrower has increased the probability of less than full repayment. At the time a loan is placed on nonaccrual, all accrued and unpaid interest is charged off, unless repayment of all principal and presently accrued but unpaid interest is probable. Charge-offs of accrued and unpaid interest are charged against the current year's interest income and not against the ALL. For all loan classes, a nonaccrual loan may be returned to accrual status when we can reasonably expect continued timely payments until payment in full. All prior arrearage does not have to be eliminated, nor do all previously charged off amounts need to have been recovered, but the loan can still be returned to accrual status if the following conditions are met: (1) all principal and interest amounts contractually due (including arrearage) are reasonably assured of repayment within a reasonable period; and (2) there is a sustained period of repayment performance (generally a minimum of six months) by the borrower, in accordance with the contractual terms involving payments of cash or cash equivalents. For all classes within all loan portfolios, cash receipts received on nonaccrual loans are generally applied entirely against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income. For all loan classes, as soon as any portion of a loan becomes uncollectible, the loan will be charged down or charged off as follows: • If unsecured, the loan must be charged off in full. • If secured, the outstanding principal balance of the loan should be charged down to the net liquidation value of the collateral. Loans are considered uncollectible when: • No regularly scheduled payment has been made within four months and the determination is made that any further payment is unlikely, or • The loan is unsecured, the borrower has filed for bankruptcy protection and there is no other (guarantor, etc.) support from an entity outside of the bankruptcy proceedings. Based on a variety of credit, collateral and documentation issues, loans with lesser degrees of delinquency or obvious loss may also be deemed uncollectible. A loan is considered impaired, based on current information and events, if it is probable that we will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. If the loan has been modified to provide relief to the borrower, the loan is deemed to be impaired if all principal and interest will not be repaid according to the original contract. When a loan has been determined to be impaired, the amount of the impairment is measured using the present value of expected future cash flows discounted at the loan's effective interest rate or, as a practical expedient, the observable market price of the loan, or the fair value of the collateral if the loan is collateral dependent. When the present value of expected future cash flows is used, the effective interest rate is the original contractual interest rate of the loan adjusted for any premium or discount. When the contractual interest rate is variable, the effective interest rate of the loan changes over time. A specific reserve is established as a component of the ALL when a loan has been determined to be impaired. Subsequent to the initial measurement of impairment, if there is a significant change to the impaired loan's expected future cash flows, or if actual cash flows are significantly different from the cash flows previously estimated, we recalculate the impairment and appropriately adjust the specific reserve. Similarly, if we measure impairment based on the observable market price of an impaired loan or the fair value of the collateral of an impaired collateral-dependent loan, we will adjust the specific reserve if there is a significant change in either of those bases. When a loan is impaired and principal and interest is in doubt when contractually due, interest income is not recognized. Cash receipts received on nonaccruing impaired loans within any class are generally applied entirely against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income. Cash receipts received on accruing impaired loans within any class are applied in the same manner as accruing loans that are not considered impaired. The following table summarizes information relative to impaired loans for the dates indicated: June 30, 2016 December 31, 2015 (dollars in thousands) Recorded Investment Associated Reserves Recorded Investment Associated Reserves Impaired loans, not individually reviewed for impairment $ 4,543 $ — $ 4,903 $ — Impaired loans, individually reviewed, with no impairment 18,383 — 22,411 — Impaired loans, individually reviewed, with impairment 3,731 328 3,817 399 Total impaired loans, excluding purchased impaired * $ 26,657 328 $ 31,131 399 Purchased impaired loans with subsequent deterioration $ 69,587 2,754 $ 84,329 2,754 Purchased impaired loans with no subsequent deterioration 3,011 — 3,235 — Total Reserves $ 3,082 $ 3,153 Average impaired loans calculated using a simple average 28,894 35,290 * Included at June 30, 2016 and December 31, 2015 were $12.0 million and $13.1 million, respectively, in restructured and performing loans. The following table presents loans held for investment on nonaccrual status by loan class for the dates indicated: (dollars in thousands) June 30, 2016 December 31, 2015 Loans held for investment: Commercial and agricultural $ 480 $ 1,053 Real estate - construction 72 110 Real estate - mortgage: 1-4 family residential 7,471 9,106 Commercial 5,969 7,209 Consumer 678 538 Total nonaccrual loans 14,670 18,016 Loans more than 90 days delinquent, still on accrual — 817 Total nonperforming loans $ 14,670 $ 18,833 There were no loans held for sale on nonaccrual status as of June 30, 2016 or December 31, 2015. The following table presents individually reviewed impaired loans and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding allowance for loan losses as of June 30, 2016 : Unpaid (dollars in thousands) Recorded Principal Related Investment Balance Allowance Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 379 $ 479 $ — Real estate - construction 535 690 — Real estate - mortgage: 1-4 family residential 5,837 7,606 — Commercial 11,632 16,491 — Consumer — — — Total 18,383 25,266 — Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — Real estate - construction — — — Real estate - mortgage: 1-4 family residential 3,385 4,220 285 Commercial 346 353 43 Consumer — — — Total 3,731 4,573 328 Total individually reviewed impaired loans: Commercial and agricultural 379 479 — Real estate - construction 535 690 — Real estate - mortgage: 1-4 family residential 9,222 11,826 285 Commercial 11,978 16,844 43 Consumer — — — Total $ 22,114 $ 29,839 $ 328 PI loans with subsequent credit deterioration: Commercial and agricultural $ 4,607 $ 3,475 $ 378 Real estate - construction 6,779 7,480 634 Real estate - mortgage: 1-4 family residential 9,650 9,683 325 Commercial 47,728 47,383 1,375 Consumer 823 525 42 Total $ 69,587 $ 68,546 $ 2,754 The following table presents individually reviewed impaired loans, and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding allowance for loan losses as of December 31, 2015 : Unpaid (dollars in thousands) Recorded Principal Related Investment Balance Allowance Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 399 $ 479 $ — Real estate - construction 775 939 — Real estate - mortgage: 1-4 family residential 7,418 9,406 — Commercial 13,820 19,116 — Consumer — — — Total 22,412 29,940 — Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — Real estate - construction — — — Real estate - mortgage: 1-4 family residential 3,817 4,691 399 Commercial — — — Consumer — — — Total 3,817 4,691 399 Total individually reviewed impaired loans: Commercial and agricultural 399 479 — Real estate - construction 775 939 — Real estate - mortgage: 1-4 family residential 11,235 14,097 399 Commercial 13,820 19,116 — Consumer — — — Total $ 26,229 $ 34,631 $ 399 PI loans with subsequent credit deterioration: Commercial and agricultural $ 4,995 $ 3,908 $ 311 Real estate - construction 7,323 8,121 579 Real estate - mortgage: 1-4 family residential 11,103 11,327 384 Commercial 59,989 60,582 1,356 Consumer 919 598 124 Total $ 84,329 $ 84,536 $ 2,754 The following summary presents individually reviewed impaired loans. Average recorded investment and interest income recognized on impaired loans, segregated by portfolio segment, is shown in the following table as of June 30, 2016 and June 30, 2015 : For Three Months Ended For Three Months Ended June 30, 2016 June 30, 2015 Average Interest Average Interest (dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 384 $ — $ 435 $ — Real estate - construction 541 7 1,126 8 Real estate - mortgage: 1-4 family residential 5,960 21 7,099 24 Commercial 11,779 46 15,770 57 Consumer — — — — Total 18,664 74 24,430 89 Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — — Real estate - construction — — — — Real estate - mortgage: 1-4 family residential 3,394 11 4,646 14 Commercial 347 4 — — Consumer — — — — Total 3,741 15 4,646 14 Total individually reviewed impaired loans: Commercial and agricultural 384 — 435 — Real estate - construction 541 7 1,126 8 Real estate - mortgage: 1-4 family residential 9,354 32 11,745 38 Commercial 12,126 50 15,770 57 Consumer — — — — Total $ 22,405 $ 89 $ 29,076 $ 103 For Six Months Ended For Six Months Ended June 30, 2016 June 30, 2015 Average Interest Average Interest (dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 390 $ — $ 457 $ — Real estate - construction 652 21 1,201 9 Real estate - mortgage: 1-4 family residential 6,338 48 7,512 27 Commercial 12,303 139 14,425 65 Consumer — — — — Total 19,683 208 23,595 101 Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — — Real estate - construction — — — — Real estate - mortgage: 1-4 family residential 3,841 31 4,195 17 Commercial 298 4 1,915 26 Consumer — — — — Total 4,139 35 6,110 43 Total individually reviewed impaired loans: Commercial and agricultural 390 — 457 — Real estate - construction 652 21 1,201 9 Real estate - mortgage: 1-4 family residential 10,179 79 11,707 44 Commercial 12,601 143 16,340 91 Consumer — — — — Total $ 23,822 $ 243 $ 29,705 $ 144 Impaired loans also include loans for which we may elect to grant a concession, providing terms more favorable than those prevalent in the market (e.g., rate, amortization term), and formally restructure due to the weakening credit status of a borrower. Restructuring is designed to facilitate a repayment plan that minimizes the potential losses that we otherwise may have to incur. If these impaired loans are on nonaccruing status as of the date of restructuring, the loans are included in nonperforming loans. Nonperforming restructured loans will remain as nonperforming until the borrower can demonstrate adherence to the restructured terms for a period of no less than six months and when it is otherwise determined that continued adherence is reasonably assured. Some restructured loans continue as accruing loans after restructuring if the borrower is not past due at the time of restructuring, adequate collateral valuations support the restructured loans, and the cash flows of the underlying business appear adequate to support the restructured debt service. Not included in nonperforming loans are loans that have been restructured that were performing as of the restructure date. At June 30, 2016 , there was $16.1 million in restructured loans, of which $12.0 million were accruing. At December 31, 2015 , there was $17.9 million in restructured loans, of which $13.1 million were accruing. Granite Purchased Loans Granite Purchased Loans include PI loans and PC loans. PC loans consist of revolving consumer and commercial loans that were performing as of the acquisition date. PI loans are segregated into pools and recorded at estimated fair value on the date of acquisition without the carryover of the related ALL. PI loans are accounted for under ASC 310-30 when the loans have evidence of credit deterioration since origination and it is probable at the date of acquisition we will not collect all contractually required principal and interest payments. Evidence of credit quality deterioration as of the date of acquisition may include statistics such as past due status, nonaccrual status and risk grade. PI loans generally meet our definition for nonaccrual status; however, even if the borrower is not currently making payments, we will classify loans as accruing if we can reasonably estimate the amount and timing of future cash flows. All Granite PI loans are presented on an accruing basis. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable difference. Periodically, we estimate the expected cash flows for each pool of the PI loans and evaluate whether the expected cash flows for each pool have changed from prior estimates. Decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior provisions, or reclassification from non-accretable difference to accretable yield with a positive impact on future interest income. Excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized into interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. We have accounted for the Granite PI loans under ASC 310-30 and the Granite PC loans under ASC 310-20. At both June 30, 2016 and December 31, 2015, our financial statements reflected a Granite PI loan ALL of $2.8 million and an ALL for Granite PC loans of $0.3 million . The following table presents the balance of all Granite Purchased Loans: At June 30, 2016 (dollars in thousands) Purchased Impaired Purchased Contractual Total Purchased Loans Unpaid Commercial and agricultural $ 4,607 $ 114 $ 4,721 $ 3,589 Real estate - construction 7,035 — 7,035 7,763 Real estate - mortgage: 1-4 family residential 12,405 16,755 29,160 29,609 Commercial 47,728 — 47,728 47,383 Consumer 823 — 823 525 Total $ 72,598 $ 16,869 $ 89,467 $ 88,869 At December 31, 2015 (dollars in thousands) Purchased Impaired Purchased Contractual Total Unpaid Commercial and agricultural $ 4,995 $ 238 $ 5,233 $ 4,149 Real estate - construction 7,744 — 7,744 8,579 Real estate - mortgage: 1-4 family residential 13,917 17,915 31,832 32,558 Commercial 59,989 — 59,989 60,582 Consumer 919 — 919 598 Total $ 87,564 $ 18,153 $ 105,717 $ 106,466 The tables below include only those Granite Purchased Loans accounted for under the expected cash flow method (PI loans) for the periods indicated. This table does not include PC loans, including Granite PC loans or purchased residential mortgage loan pools. For Three Months Ended For Three Months Ended June 30, 2016 June 30, 2015 Purchased Impaired Purchased Impaired (dollars in thousands) Carrying Future Carrying Future Accretion Balance, beginning of period $ 84,627 $ 14,215 $ 109,262 $ 20,925 Addition from Bank of Granite Corp merger — — — — Accretion 1,319 (1,319 ) 1,841 (1,841 ) Increase (Decrease) in future accretion — (1 ) — 1,716 Reclassification of loans and adjustments — — — — Payments received (12,650 ) — (8,522 ) — Foreclosed and transferred to OREO (698 ) — (466 ) — Subtotal before allowance 72,598 12,895 102,115 20,800 Allowance for loan losses (2,754 ) — (3,181 ) — Net carrying amount, end of period $ 69,844 $ 12,895 $ 98,934 $ 20,800 For Six Months Ended For Six Months Ended June 30, 2016 June 30, 2015 Purchased Impaired Purchased Impaired (dollars in thousands) Carrying Future Carrying Future Accretion Balance, beginning of period $ 87,564 $ 15,623 $ 122,842 $ 24,898 Accretion 2,725 (2,725 ) 3,889 (3,889 ) Increase (Decrease) in future accretion — (3 ) — (209 ) Payments received (16,993 ) — (23,376 ) — Foreclosed and transferred to OREO (698 ) — (1,240 ) — Subtotal before allowance 72,598 12,895 102,115 20,800 Allowance for credit losses (2,754 ) — (3,181 ) — Net carrying amount, end of period $ 69,844 $ 12,895 $ 98,934 $ 20,800 Allowance for Loan Losses The Company's ALL, which is utilized to absorb actual losses in the loan portfolio, is maintained at a level consistent with our best estimate of probable loan losses to be incurred as of the balance sheet date. We assess our ALL quarterly. This assessment includes a methodology that separates the total loan portfolio into homogeneous loan classifications for purposes of evaluating risk. The required allowance is calculated by applying a risk adjusted reserve requirement to the dollar volume of loans within a homogenous group. For purposes of the ALL, we have grouped our loans into pools with similar risk characteristics, including loan purpose, collateral type and borrower type. Major loan portfolio subgroups include: risk graded commercial loans, mortgage loans, home equity loans, retail loans and retail credit lines. We also analyze the loan portfolio on an ongoing basis to evaluate current risk levels, and risk grades are adjusted accordingly. While we use the best information available to make evaluations, future adjustments may be necessary, if economic or other conditions differ substantially from the assumptions used. Historical loss rates are calculated by associating losses to the risk-graded pool to which they relate for each of the previous eight quarters. Then, using a look back period consisting of the twenty most recent quarters, loss factors are calculated for each risk-graded pool using a simple average. In addition to our ability to use our own historical loss data and migration between risk grades, we have a rigorous process for assessing the qualitative factors that impact the ALL. A committee, independent of the historical loss migration team, reviews risk factors that may impact the ALL. Some factors are statistically quantifiable, such as concentration, growth, delinquency, and nonaccrual risk by loan type, while other factors are qualitative in nature, such as staff competency, competition within our markets and economic and regulatory changes impacting the loan portfolio. We lend primarily in North Carolina. As of June 30, 2016 , a large majority of the principal amount of the loans in our portfolio was to businesses and individuals in North Carolina. This geographic concentration subjects the loan portfolio to the general economic conditions within this area. The risks created by this concentration have been considered by us in the determination of the adequacy of the ALL. We believe the ALL is adequate to cover estimated losses on loans at each balance sheet date. During the three month period ended June 30, 2016 , we charged off $2.0 million in loans and realized $1.0 million in recoveries, for $1.0 million of net charge-offs. During the six month period ended June 30, 2016 , we charged off $3.1 million in loans and realized $1.7 million in recoveries, for $1.5 million of net charge-offs. The ALL, as a percentage of loans held for investment, was 0.90% at June 30, 2016 , compared to 1.24% at June 30, 2015 . At December 31, 2015 , the ALL, as a percentage of loans held for investment, was 0.98% . An analysis of the changes in the ALL is as follows: For Three Months Ended For Six Months Ended (dollars in thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Balance, beginning of period $ 14,240 $ 19,008 $ 15,195 $ 20,345 Recovery of losses charged to continuing operati |
Other Real Estate Owned and Pro
Other Real Estate Owned and Property Acquired in Settlement of Loans | 6 Months Ended |
Jun. 30, 2016 | |
Repossessed Assets [Abstract] | |
Other Real Estate Owned and Property Acquired in Settlement of Loans | Other Real Estate Owned and Property Acquired in Settlement of Loans OREO consists of real estate acquired through foreclosure or deed in lieu thereof, and is classified as held for sale. The property is initially carried at fair value based on recent appraisals, less estimated costs to sell. Declines in the fair value of properties included in OREO below carrying value are recognized by a charge to income. Total OREO and property acquired in settlement of loans decreased $2.1 million during the first six months of 2016 from $16.6 million at December 31, 2015 , to $14.4 million at June 30, 2016 . At June 30, 2016 and December 31, 2015 , OREO and property acquired in settlement of loans represented 44% and 47% of total nonperforming assets, respectively. The following table summarizes OREO and property acquired in settlement of loans at the periods indicated: (dollars in thousands) June 30, 2016 December 31, 2015 Real estate acquired in settlement of loans $ 14,191 $ 16,251 Property acquired in settlement of loans 245 332 Total property acquired in settlement of loans $ 14,436 $ 16,583 The following table summarizes the changes in real estate acquired in settlement of loans at the periods indicated: For Three Months Ended (dollars in thousands) June 30, 2016 June 30, 2015 Real estate acquired in settlement of loans, beginning of period $ 13,845 $ 20,833 Plus: New real estate acquired in settlement of loans 2,143 938 Plus: Real estate acquired in BOGC acquisition — — Less: Sales of real estate acquired in settlement of loans (1,794 ) (1,663 ) Less: Write-downs and net loss on sales charged to expense (3 ) (391 ) Real estate acquired in settlement of loans, end of period $ 14,191 $ 19,717 For Six Months Ended (dollars in thousands) June 30, 2016 June 30, 2015 Real estate acquired in settlement of loans, beginning of period $ 16,251 $ 20,122 Plus: New real estate acquired in settlement of loans 2,202 3,433 Less: Sales of real estate acquired in settlement of loans (3,758 ) (3,153 ) Less: Write-downs and net loss on sales charged to expense (504 ) (685 ) Real estate acquired in settlement of loans, end of period $ 14,191 $ 19,717 At June 30, 2016 , 4 assets with a net carrying amount of $2.4 million were under contract for sale. Estimated losses on these sales, if any, have been recognized in the Consolidated Statements of Operations in the first six months of 2016 . At June 30, 2016 , the Company’s recorded investment in mortgage loans collateralized by residential real estate properties that are in the process of foreclosure was $1.4 million and the Company’s OREO balance included $3.4 million of residential real estate. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net earnings per share, or basic earnings per share (“EPS”), is computed by dividing net income to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if COB's potential common stock, which consists of dilutive stock options and a common stock warrant, were issued. As required for entities with complex capital structures, a dual presentation of basic and diluted EPS is included on the face of the income statement, and a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation is provided in this note. (dollars in thousands, except share and per share data) For Three Months Ended For Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net income $ 3,892 $ 2,523 $ 7,806 $ 5,042 Weighted average number of shares outstanding - basic 24,294,424 24,202,012 24,293,214 24,192,744 Weighted average number of shares outstanding - diluted 24,316,019 24,214,578 24,314,165 24,204,832 Net income per share - basic and diluted $ 0.16 $ 0.10 $ 0.32 $ 0.21 During the six months ended June 30, 2016 and June 30, 2015 , the price of the Company's common stock (as quoted on the Nasdaq Capital Market) was below the price of the common stock warrant. As a result, the warrant was considered antidilutive and thus was not included in the diluted share calculation. The Company canceled the common stock warrant during the second quarter of 2016. For the three months ended June 30, 2016 , there were an average of 509,963 antidilutive shares, while for the six months ended June 30, 2016, there were an average of 516,185 antidilutive shares. For the three months ended June 30, 2015, there were an average of 322,526 antidilutive shares, while for the six months ended June 30, 2015, there were an average of 294,972 antidilutive shares. Of the antidilutive shares, the number of shares relating to stock options was 500,018 and 500,177 for the three months and six months ended June 30, 2016 , respectively, and 300,454 and 272,900 for the three and six months ended June 30, 2015, respectively. The number relating to the common stock warrant was 9,945 and 16,008 for the three and six months ended June 30, 2016, respectively, and 22,072 for the three and six months ended June 30, 2015. |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Financial Instruments | Derivatives and Financial Instruments A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an underlying instrument, index or referenced interest rate. These instruments include interest rate swaps, caps, floors, collars, options or other financial instruments designed to hedge exposures to interest rate risk or for speculative purposes. Accounting guidance requires an entity to recognize all derivatives as either assets or liabilities in the balance sheet, and measure those instruments at fair value. Changes in the fair value of those derivatives are reported in current earnings or other comprehensive income depending on the purpose for which the derivative is held and whether the derivative qualifies for hedge accounting. In connection with its asset / liability management objectives, the Company during the first quarter of 2014 entered into two interest rate swaps on $40 million of FHLB advances, each swap having a $20 million notional amount, that convert the floating rate cash flow exposure on the FHLB advances to a fixed rate cash flow. As structured, the receive-variable, pay-fixed swaps were evaluated as being cash flow hedges and have remained highly effective since inception through the quarter ending June 30, 2016 . The differences in cash flows in each period between the fixed rate interest payments that the Company makes and the variable rate interest payments received is reported in earnings. These interest rate swaps mature on June 15, 2020. Mortgage banking derivatives used in the ordinary course of business consist of mandatory forward sales contracts, best-efforts forward contracts and rate lock loan commitments. The fair value of our derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. We have established guidelines in originating and selling loans to Fannie Mae, and retaining or selling the mortgage servicing rights. The commitments to borrowers to originate residential mortgage loans and the forward sales commitments to investors are freestanding derivative instruments. As such, they do not qualify for hedge accounting treatment and the fair value adjustments for these instruments is recorded through the Consolidated Statements of Operations in mortgage loan income. The fair market value of mortgage banking derivatives is recorded in the consolidated balance sheet in Other Assets. Gain (Loss) Recognized (dollars in thousands) For Three Months Ended For Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Derivatives designated as hedging instruments: Interest rate swap contracts - FHLB advances $ (137 ) $ 262 $ (686 ) $ (59 ) Derivatives not designated as hedging instruments: Mortgage loan rate lock commitments 3 4 $ 4 $ (3 ) Mortgage loan forward sales 61 (61 ) 68 17 Total $ 64 $ (57 ) $ 72 $ 14 |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities We use fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale, derivative assets and liabilities, mortgage loans held for sale, and mortgage servicing rights are recorded at fair value on a recurring basis. Additionally, from time-to-time, we may be required to record at fair value other assets and liabilities on a nonrecurring basis, such as loans held for investment, impaired loans and certain other assets and liabilities. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets or liabilities. Fair Value Hierarchy We group assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value, is required. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a portion of our financial instruments, fair value estimates are based on judgments regarding future expected losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Investments Securities Available-for-Sale Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security's credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, 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 issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 may include asset-backed securities in less liquid markets. Liquidity is a significant factor in the determination of the fair values of available-for-sale debt securities. Market price quotes may not be readily available for some positions, or positions within a market sector where trading activity has slowed significantly or ceased. Some of these instruments are valued using a discounted cash flow model, which estimates the fair value of the securities using internal credit risk, interest rate and prepayment risk models that incorporate management's best estimate of current key assumptions such as default rates, loss severity and prepayment rates. Principal and interest cash flows are discounted using an observable discount rate for similar instruments with adjustments that management believes a market participant would consider in determining fair value for the specific security. Underlying assets are valued using external pricing services, where available, or matrix pricing based on the vintages and ratings. Situations of illiquidity generally are triggered by the market's perception of credit uncertainty regarding a single company or a specific market sector. In these instances, fair value is determined based on limited available market information and other factors, principally from reviewing the issuer's financial statements and changes in credit ratings made by one or more ratings agencies. Loans Held for Sale Loans held for sale are carried at the lower of cost or fair value less estimated costs to sell. Once sold, the purchasing investor has all rights of ownership, including the ability to pledge or exchange the loans. Most of the loans sold are without recourse. However, the investor does have the ability to require CommunityOne to repurchase or indemnify a specific loan should there be inadequacies discovered in the original underwriting of that loan. Gains or losses on loan sales are recognized at the time of sale, are determined by the difference between net sales proceeds and the carrying value of the loan sold, and are included in Consolidated Statements of Operations. Since loans held for sale are carried at the lower of cost or fair value, the fair value of loans held for sale is based on contractual agreements with independent third party buyers. As such, we classify loans held for sale subjected to nonrecurring fair value adjustments as Level 2. Based on the nature of the portfolio, lack of market volatility and the short duration for which the loans are held, fair value generally exceeds cost. Loans Held for Investment We do not record loans held for investment at fair value on a recurring basis. However, from time to time, a loan is considered impaired and the related impairment is charged against the allowance or a specific allowance is 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 impaired, we determine the fair value of the loan to quantify impairment, should such exist. The fair value of impaired loans is estimated using one of several methods, including collateral net liquidation value, market value of similar debt, enterprise value, and discounted cash flows. Those impaired loans not requiring a specific allowance represent loans for which the fair value of the expected repayments or collateral meet or exceed the recorded investments in such loans. At June 30, 2016 and December 31, 2015 , substantially all of the total impaired loans were reviewed based on the fair value of the collateral. Impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. We record impaired loans as nonrecurring Level 3. Other Real Estate Owned OREO is adjusted to fair value upon transfer of the loans to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value less estimated costs to sell. Fair value is based upon independent market prices, appraised values of the collateral or management's estimation of the value of the collateral. Given the lack of observable market prices for identical properties, we record OREO as nonrecurring Level 3. Interest Rate Locks and Forward Loan Sale Commitments We enter into interest rate lock commitments and commitments to sell mortgages. The fair value of interest rate lock commitments is based on servicing rate premium, origination income net of origination costs, fall out rates and changes in loan pricing between the commitment date and the balance sheet date. We record interest rate lock commitments as recurring level 3, and based on their immaterial value, has excluded them from the fair value table. Interest Rate Swaps We enter into interest rate swaps to hedge the variability of interest cash flow payments on certain FHLB advances. Changes in fair value of these cash flow hedges are recorded through other comprehensive income. Any ineffectiveness of the hedge is included in current period earnings. The fair value of our interest rate swaps is based on a third party valuation because there is not a readily available quoted price in the market. We record interest rate swap commitments as recurring level 2. Mortgage Servicing Rights The fair value of mortgage serving rights ("MSR") is dependent upon a number of assumptions including the fee per loan, the cost to service, the expected loan prepayment rate, and the discount rate. In determining the fair value of the existing MSR management reviews the key assumptions, analyzes pricing in the market for comparable MSR, and uses a third party provider to independently calculate the fair value of its MSR. We record mortgage servicing rights as recurring Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis Assets and liabilities carried at fair value on a recurring basis at June 30, 2016 are summarized in the following table: (dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale debt securities: U.S. government sponsored agencies $ — $ — $ — $ — Residential mortgage-backed securities-GSE 270,995 — 270,995 — Residential mortgage-backed securities-Private 28,984 — 28,984 — Commercial mortgage-backed securities-GSE 22,167 — 22,167 — Commercial mortgage-backed securities-Private 18,081 — 18,081 — Corporate notes 37,419 — 37,419 — Total available-for-sale debt securities 377,646 — 377,646 — Mortgage servicing rights 2,812 — — 2,812 Interest rate swaps (1,847 ) — (1,847 ) — Total assets at fair value $ 378,611 $ — $ 375,799 $ 2,812 Assets and liabilities carried at fair value on a recurring basis at December 31, 2015 are summarized in the following table: (dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale debt securities: U.S. government sponsored agencies $ 2,008 $ — $ 2,008 $ — Residential mortgage-backed securities-GSE 278,107 — 278,107 — Residential mortgage-backed securities-Private 33,577 — 33,577 — Commercial mortgage-backed securities-GSE 21,611 — 21,611 — Commercial mortgage-backed securities-Private 17,575 — 17,575 — Corporate notes 37,555 — 37,555 — Total available-for-sale debt securities 390,433 — 390,433 — Mortgage servicing rights 2,231 — — 2,231 Interest rate swaps (755 ) — (755 ) — Total assets at fair value $ 391,909 $ — $ 389,678 $ 2,231 The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the periods indicated: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Mortgage Servicing Rights (dollars in thousands) Three Months Ended June 30, 2016 2015 Balance, beginning of period $ 2,654 $ 1,896 Total gains or losses (realized/unrealized): Included in earnings, gross 364 256 Less amortization (206 ) (140 ) Balance, end of period $ 2,812 $ 2,012 Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Mortgage Servicing Rights (dollars in thousands) Six Months Ended June 30, 2016 2015 Beginning balance at January 1, $ 2,231 $ 1,726 Total gains or losses (realized/unrealized): Included in earnings, gross 957 556 Less amortization (376 ) (270 ) Balance, end of period $ 2,812 $ 2,012 Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. This is due to further deterioration in the value of the assets. There were no loans held for sale that had a fair value below cost in any periods reported. Assets measured at fair value on a nonrecurring basis are included in the following table at June 30, 2016 : (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans, net $ 2,597 $ — $ — $ 2,597 Other real estate owned 6,756 — — 6,756 Total assets at fair value from continuing operations $ 9,353 $ — $ — $ 9,353 Assets measured at fair value on a nonrecurring basis are included in the following table at December 31, 2015 : (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans, net $ 3,418 $ — $ — $ 3,418 Other real estate owned 10,630 — — 10,630 Total assets at fair value from continuing operations $ 14,048 $ — $ — $ 14,048 Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value at June 30, 2016 Valuation Techniques Unobservable Input Range Impaired loans, net $ 2,597 Discounted appraisals Collateral discounts 1.00% - 30.00% Other real estate owned 6,756 Discounted appraisals Collateral discounts 1.00% - 30.00% Mortgage servicing rights 2,812 Discounted cash flows Prepayment rate 10.00% - 25.00% Mortgage servicing rights Discount rate 6.00% - 10.00% (dollars in thousands) Fair Value at Valuation Techniques Unobservable Input Range Impaired loans, net $ 3,418 Discounted appraisals Collateral discounts 1.00%-30.00% Other real estate owned 10,630 Discounted appraisals Collateral discounts 1.00%-30.00% Mortgage servicing rights 2,231 Discounted cash flows Prepayment rate 10.00% - 25.00% Mortgage servicing rights Discount rate 6.00% - 10.00% Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value for each class of COB's financial instruments. Cash and cash equivalents. Fair value equals the carrying value of such assets due to their nature and is classified as Level 1. Investment securities. The fair value of investment securities is based on quoted market prices, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The fair value of equity investments in the restricted stock of the FRBR and FHLB approximates the carrying value. The fair value of investment securities is classified as Level 1 if a quoted market price is available, or Level 2 if a quoted market price is not available. Loans held for sale. Substantially all residential mortgage loans held for sale are pre-sold and their carrying value approximates fair value. We classified the fair value of loans held for sale as Level 2. Loans held for investment. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. We classified the fair value of loans as Level 3. Accrued interest receivable and payable . The carrying amounts of accrued interest payable and receivable approximate fair value and are classified as Level 1, 2 or 3 based on whether the related asset or liability is classified as Level 1, 2 or 3. Deposits. The fair value of noninterest-bearing and interest-bearing demand deposits and savings are the amounts payable on demand because these products have no stated maturity. The fair value of time deposits is estimated using the rates currently offered for deposits of similar remaining maturities and deposits are classified as Level 2. Borrowed funds . The carrying value of retail repurchase agreements is considered to be a reasonable estimate of fair value. The fair value of FHLB advances and other borrowed funds is estimated using the rates currently offered for advances of similar remaining maturities and is classified as Level 2. For the long-term note payable, the current market rate for similar debt is substantially equal to the rate on this note, so its fair value approximates its carrying value. Junior subordinated debentures. Included in junior subordinated debentures are variable rate trust preferred securities issued by COB. Fair values for the trust preferred securities were estimated by developing cash flow estimates for each of these debt instruments based on scheduled principal and interest payments and current interest rates. Once the cash flows were determined, a rate for comparable subordinated debt was used to discount the cash flows to the present value. We classified the fair value of junior subordinated debentures as Level 3. Financial instruments with off-balance sheet risk . The fair value of financial instruments with off-balance sheet risk is considered to approximate carrying value, since the large majority of these future financing commitments would result in loans that have variable rates and/or relatively short terms to maturity. For other commitments, generally of a short-term nature, the carrying value is considered to be a reasonable estimate of fair value. Interest rate swaps . The fair value of interest rate swaps are measured based on third party cash flow models discounted to the valuation date and are classified as Level 2. Interest rate locks and forward loan sale commitments . The fair value of interest rate locks and forward loan sale commitments are measured by comparing the underlying terms of the contract with current pricing obtained from broker dealer pricing and are classified as Level 2. The estimated fair values of financial instruments are as follows at the periods indicated: At June 30, 2016 (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 53,572 $ 53,572 $ 53,572 $ — $ — Investment securities: Available-for-sale 377,646 377,646 — 377,646 — Investment securities: Held-to-maturity 139,813 142,217 — 142,217 — Loans held for sale 4,524 4,524 — 4,524 — Loans held for investment, net 1,511,365 1,524,449 — — 1,524,449 Accrued interest receivable 5,201 5,201 7 1,548 3,646 Interest rate swaps (1,847 ) (1,847 ) — (1,847 ) — Financial Liabilities: Deposits 1,916,481 1,918,660 — 1,918,660 — Retail repurchase agreements 12,761 12,761 — 12,761 — Federal Home Loan Bank advances 65,153 67,321 — 67,321 — Long-term notes payable 5,454 5,454 — — 5,454 Junior subordinated debentures 56,702 31,502 — — 31,502 Accrued interest payable 353 353 — 335 18 At December 31, 2015 (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 39,175 $ 39,175 $ 39,175 $ — $ — Investment securities: Available-for-sale 390,434 390,434 — 390,434 — Investment securities: Held-to-maturity 147,967 145,184 — 145,184 — Loans held for sale 5,403 5,403 — 5,403 — Loans held for investment, net 1,528,600 1,513,226 — — 1,513,226 Accrued interest receivable 5,305 5,305 — 1,630 3,675 Interest rate locks and forward loan sale commitments (755 ) (755 ) — (755 ) — Financial Liabilities: Deposits 1,947,537 1,945,691 — 1,945,691 — Retail repurchase agreements 7,219 7,219 — 7,219 — Federal Home Loan Bank advances 93,681 95,781 — 95,781 — Long-term notes payable 5,415 5,415 — — 5,415 Junior subordinated debentures 56,702 32,536 — — 32,536 Accrued interest payable 367 367 — 349 18 There were no transfers between valuation levels for any assets during the six months ended June 30, 2016 . If different valuation techniques are deemed necessary, we would consider those transfers to occur at the end of the period when the assets are valued. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables present the changes in our accumulated other comprehensive income (loss), net of tax, by component for the periods indicated: (Dollars in thousands) Unrealized Gains (Losses) on Available-For-Sale Securities Interest Rate Swaps Defined Benefit Plan Items Total Beginning balance January 1, 2016 $ (5,176 ) $ (466 ) $ (5,097 ) $ (10,739 ) Other comprehensive income (loss) before reclassifications 6,989 (690 ) (54 ) 6,245 Amounts reclassified from accumulated other comprehensive income — 4 — 4 Net current period other comprehensive income (loss) 6,989 (686 ) (54 ) 6,249 Ending balance June 30, 2016 $ 1,813 $ (1,152 ) $ (5,151 ) $ (4,490 ) (Dollars in thousands) Unrealized Gains (Losses) on Available-For-Sale Securities Interest Rate Swaps Defined Benefit Plan Items Total Beginning balance January 1, 2015 $ (3,017 ) $ (324 ) $ (4,134 ) $ (7,475 ) Other comprehensive loss before reclassifications (2,515 ) (63 ) — (2,578 ) Amounts reclassified from accumulated other comprehensive income — 4 — 4 Net current period other comprehensive loss (2,515 ) (59 ) — (2,574 ) Ending balance June 30, 2015 $ (5,532 ) $ (383 ) $ (4,134 ) $ (10,049 ) The following table presents the reclassifications out of our accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015: (Dollars in thousands) Amount Reclassified from AOCI For Three Months Ended For Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Line Item in the Consolidated Statement of Operations Interest rate swaps: Swap ineffectiveness expense $ 3 $ 3 $ 6 $ 6 Other expense Income tax benefit (1 ) (1 ) (2 ) (2 ) Income tax expense Total, net of tax 2 2 4 4 Total reclassifications for the period $ 2 $ 2 $ 4 $ 4 |
Repurchase Agreement Borrowings
Repurchase Agreement Borrowings | 6 Months Ended |
Jun. 30, 2016 | |
Banking and Thrift [Abstract] | |
Repurchase Agreement Borrowings | Repurchase Agreement Borrowings Securities sold under agreements to repurchase ("repurchase agreements") with customers represent funds deposited by customers, generally on an overnight basis, that are collateralized by investment securities owned by the Company. Repurchase agreements with customers are included in short-term borrowings on the consolidated condensed balance sheets. All repurchase agreements are subject to terms and conditions of repurchase/security agreements between the Company and the client and are accounted for as secured borrowings. Our repurchase agreements reflected in short-term borrowings consist of customer accounts and securities which are pledged on an individual security basis. At June 30, 2016 and December 31, 2015 , our repurchase agreement borrowings totaled $12.8 million and $7.2 million respectively, and are classified as short-term debt on the consolidated condensed balance sheets. These borrowings were collateralized with residential mortgage backed securities with a market value of $15.9 million and $17.1 million at June 30, 2016 and December 31, 2015 , respectively. Declines in the value of the collateral would require us to pledge additional securities. As of June 30, 2016 and December 31, 2015 the Company had $181.0 million and $213.6 million , respectively, of available unpledged securities. The following table presents the carrying value of repurchase agreements by remaining contractual maturity at June 30, 2016 and December 31, 2015 : June 30, 2016 (dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight and Continuous 1 - 90 days Over 90 days Total Residential mortgage-backed securities-GSE $ 12,761 $ — $ — $ 12,761 December 31, 2015 (dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight and Continuous 1 - 90 days Over 90 days Total Residential mortgage-backed securities-GSE $ 7,219 $ — $ — $ 7,219 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States ("GAAP"). Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the allowance for loan losses (“ALL”), estimated cash flows of purchased impaired loans, the carrying value of other real estate owned ("OREO"), the carrying value of investment securities and the realization of deferred tax assets. |
Reclassification | Certain reclassifications have been made to the prior period consolidated financial statements to place them on a comparable basis with the current period consolidated financial statements. These reclassifications have no effect on net income or shareholders' equity as previously reported. |
Recent Accounting Pronouncements | Credit Losses - In June 2016, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update ("ASU") 2016-13, "Measurement of Credit Losses on Financial Instruments" as part of its project on financial instruments. The new standard introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale (AFS) debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The adoption of ASU 2016-13 will be effective for the fiscal year beginning after December 15, 2019. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Stock Compensation - In March 2016, the FASB issued Accounting Standards Update ASU 2016-09, "Compensation—Stock compensation (Topic 718): Improvements to employee share-based payment accounting" which objective is the simplification through the identification, evaluation, and improvement of areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. The adoption of ASU 2016-9 will be effective for the fiscal year beginning after December 15, 2016. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Leases - In January 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB is amending the FASB Accounting Standards Codification and creating Topic 842, Leases. This ASU, along with IFRS 16, Leases, are the result of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting. The Boards decided to not fundamentally change lessor accounting with the amendments in this Update. However, some changes have been made to lessor accounting to conform and align that guidance with the lessee guidance and other areas within generally accepted accounting principles (GAAP), such as Topic 606, Revenue from Contracts with Customers. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. The adoption of ASU 2016-2 will be effective for the fiscal year beginning after December 15, 2018. The Company is currently evaluating the impact of adopting the new guidance on the consolidated financial statements. Financial Instruments - In January 2016, the FASB issued Accounting Standards Update ("ASU") 2016-01, "Financial instruments—Overall (Subtopic 825-10)," which requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this ASU eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The amendments in ASU 2016-1 are effective for us for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of adopting the new guidance on the consolidated financial statements. FASB - From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of COB and monitors the status of changes to and proposed effective dates of exposure drafts. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on our financial position, results of operations or cash flows. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following table summarizes the amortized cost and estimated fair value of investment securities and presents the related gross unrealized gains and losses: June 30, 2016 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-Sale: Residential mortgage-backed securities-GSE $ 269,169 $ 2,497 $ 671 $ 270,995 Residential mortgage-backed securities-Private 28,567 450 33 28,984 Commercial mortgage-backed securities-GSE 21,779 388 — 22,167 Commercial mortgage-backed securities-Private 17,847 362 128 18,081 Corporate notes 37,378 43 2 37,419 Total available-for-sale 374,740 3,740 834 377,646 Held-to-Maturity: Residential mortgage-backed securities-GSE 115,395 1,975 13 117,357 Residential mortgage-backed securities-Private 14,363 38 — 14,401 Commercial mortgage-backed securities-Private 10,055 404 — 10,459 Total held-to-maturity 139,813 2,417 13 142,217 Total investment securities $ 514,553 $ 6,157 $ 847 $ 519,863 December 31, 2015 (dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-Sale: Obligations of U.S. government sponsored enterprises $ 2,005 $ 3 $ — $ 2,008 Residential mortgage-backed securities-GSE 286,057 339 8,289 278,107 Residential mortgage-backed securities-Private 33,235 578 236 33,577 Commercial mortgage-backed securities-GSE 21,980 — 368 21,612 Commercial mortgage-backed securities-Private 17,869 — 294 17,575 Corporate notes 37,669 — 114 37,555 Total available-for-sale 398,815 920 9,301 390,434 Held-to-Maturity: Residential mortgage-backed securities-GSE 120,197 — 2,310 117,887 Residential mortgage-backed securities-Private 17,712 — 298 17,414 Commercial mortgage-backed securities-Private 10,058 — 174 9,884 Total held-to-maturity 147,967 — 2,782 145,185 Total investment securities $ 546,782 $ 920 $ 12,083 $ 535,619 |
Schedule of Available-for-sale Securities, Continuous Unrealized Loss Position | All unrealized losses on investment securities are considered by management to be temporary given the credit quality of these investment securities or the short duration of the unrealized loss, or both. Less than 12 Months 12 Months or More Total (dollars in thousands) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses June 30, 2016 Available-for-Sale: Residential mortgage-backed securities-GSE $ — $ — $ 119,845 $ 671 $ 119,845 $ 671 Residential mortgage-backed securities-Private 2,791 28 621 5 3,412 33 Commercial mortgage-backed securities-Private — — 7,422 128 7,422 128 Corporate Notes 10,004 2 — — 10,004 2 Total available-for-sale 12,795 30 127,888 804 140,683 834 Held-to-Maturity: Residential mortgage-backed securities-GSE — — 12,739 13 12,739 13 Total held-to-maturity — — 12,739 13 12,739 13 Total $ 12,795 $ 30 $ 140,627 $ 817 $ 153,422 $ 847 December 31, 2015 Available-for-Sale Residential mortgage-backed securities-GSE $ 137,998 $ 2,560 $ 132,148 $ 5,729 $ 270,146 $ 8,289 Residential mortgage-backed securities-Private 26,265 231 636 5 26,901 236 Commercial mortgage-backed securities-GSE 21,612 368 — — 21,612 368 Commercial mortgage-backed securities-Private 17,575 294 — — 17,575 294 Corporate notes 30,523 114 — — 30,523 114 Total available-for-sale 233,973 3,567 132,784 5,734 366,757 9,301 Held-to-Maturity: Residential mortgage-backed securities-GSE 83,014 1,481 34,872 829 117,886 2,310 Residential mortgage-backed securities-Private 17,414 298 — — 17,414 298 Commercial mortgage-backed securities-Private 9,884 174 — — 9,884 174 Total held-to-maturity 110,312 1,953 34,872 829 145,184 2,782 Total $ 344,285 $ 5,520 $ 167,656 $ 6,563 $ 511,941 $ 12,083 |
Schedule of Available-for-sale Securities, by Maturity Dates | Mortgage backed securities are grouped based on stated maturity date, but actual maturity will vary based on the actual repayment of the underlying mortgage loans. Available-for-Sale Held-to-Maturity (dollars in thousands) Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value Residential mortgage-backed securities-GSE Due after five years through 10 years $ 1,568 $ 1,617 $ — $ — Due after ten years 267,601 269,378 115,395 117,357 Residential mortgage-backed securities-Private Due after ten years 28,567 28,984 14,363 14,401 Commercial mortgage-backed securities-GSE Due after one year through five years 21,779 22,167 — — Commercial mortgage-backed securities-Private Due after ten years 17,847 18,081 10,055 10,459 Corporate notes Due in one year or less 30,335 30,354 — — Due after one year through five years 7,043 7,065 — — Total $ 374,740 $ 377,646 $ 139,813 $ 142,217 |
Loans and Allowance for Loan 20
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans Receivable, Net [Abstract] | |
Schedule of Aging Analysis of Accruing and Nonaccruing Loans | The following table presents an aging analysis of accruing and nonaccruing loans as of June 30, 2016 : (dollars in thousands) Accruing 30-59 days past due 60-89 days past due More than 90 days past due Nonaccrual Total past due and nonaccrual Current and accruing Total Loans PC and Originated Loans Commercial and agricultural $ 80 $ 49 $ — $ 480 $ 609 $ 140,986 $ 141,595 Real estate - construction 540 — — 72 612 106,337 106,949 Real estate - mortgage: 1-4 family residential 433 671 — 7,471 8,575 635,841 644,416 Commercial 63 — — 5,969 6,032 431,936 437,968 Consumer 1,311 342 — 678 2,331 119,213 121,544 Total 2,427 1,062 — 14,670 18,159 1,434,313 1,452,472 PI loans Commercial and agricultural 47 — 1,721 — 1,768 2,839 4,607 Real estate - construction — — 1,309 — 1,309 5,726 7,035 Real estate - mortgage: 1-4 family residential 78 40 1,133 — 1,251 11,154 12,405 Commercial — 22 8,122 — 8,144 39,584 47,728 Consumer 2 5 3 — 10 813 823 Total 127 67 12,288 — 12,482 60,116 72,598 Total Loans $ 2,554 $ 1,129 $ 12,288 $ 14,670 $ 30,641 $ 1,494,429 $ 1,525,070 The following table presents an aging analysis of accruing and nonaccruing loans as of December 31, 2015 : (dollars in thousands) Accruing 30-59 days past due 60-89 days past due More than 90 days past due Nonaccrual Total past due and nonaccrual Current and accruing Total Loans PC and Originated Loans Commercial and agricultural $ — $ 1 $ — $ 1,053 $ 1,054 $ 146,257 $ 147,311 Real estate - construction 761 140 — 110 1,011 98,247 99,258 Real estate - mortgage: 1-4 family residential 2,710 574 817 9,106 13,207 660,430 673,637 Commercial 661 34 — 7,209 7,904 421,220 429,124 Consumer 1,227 250 1 538 2,016 104,885 106,901 Total 5,359 999 818 18,016 25,192 1,431,039 1,456,231 PI loans Commercial and agricultural 102 — 1,618 — 1,720 3,275 4,995 Real estate - construction — — 1,455 — 1,455 6,289 7,744 Real estate - mortgage: 1-4 family residential 602 15 1,127 — 1,744 12,173 13,917 Commercial 517 123 8,819 — 9,459 50,530 59,989 Consumer 8 — 6 — 14 905 919 Total 1,229 138 13,025 — 14,392 73,172 87,564 Total Loans $ 6,588 $ 1,137 $ 13,843 $ 18,016 $ 39,584 $ 1,504,211 $ 1,543,795 |
Schedule of Loans Held for Investment | The following table presents loans held for investment balances by risk grade as of June 30, 2016 : (dollars in thousands) Pass Special Mention Substandard Doubtful (Ratings 1-5) (Rating 6) (Rating 7) (Rating 8) Total Commercial and agricultural $ 138,177 $ 5,657 $ 2,368 $ — $ 146,202 Real estate - construction 108,486 1,784 3,714 — 113,984 Real estate - mortgage: 1-4 family residential 643,150 2,222 11,449 — 656,821 Commercial 453,787 10,768 21,141 — 485,696 Consumer 121,214 5 696 452 122,367 Total $ 1,464,814 $ 20,436 $ 39,368 $ 452 $ 1,525,070 The following table presents loans held for investment balances by risk grade as of December 31, 2015 : (dollars in thousands) Pass Special Mention Substandard Doubtful (Ratings 1-5) (Rating 6) (Rating 7) (Rating 8) Total Commercial and agricultural $ 148,844 $ 672 $ 2,790 $ — $ 152,306 Real estate - construction 100,252 2,122 4,628 — 107,002 Real estate - mortgage: 1-4 family residential 669,695 3,508 14,351 — 687,554 Commercial 450,587 12,765 25,761 — 489,113 Consumer 107,008 4 553 255 107,820 Total $ 1,476,386 $ 19,071 $ 48,083 $ 255 $ 1,543,795 |
Schedule of Impaired Loans Receivables | The following table summarizes information relative to impaired loans for the dates indicated: June 30, 2016 December 31, 2015 (dollars in thousands) Recorded Investment Associated Reserves Recorded Investment Associated Reserves Impaired loans, not individually reviewed for impairment $ 4,543 $ — $ 4,903 $ — Impaired loans, individually reviewed, with no impairment 18,383 — 22,411 — Impaired loans, individually reviewed, with impairment 3,731 328 3,817 399 Total impaired loans, excluding purchased impaired * $ 26,657 328 $ 31,131 399 Purchased impaired loans with subsequent deterioration $ 69,587 2,754 $ 84,329 2,754 Purchased impaired loans with no subsequent deterioration 3,011 — 3,235 — Total Reserves $ 3,082 $ 3,153 Average impaired loans calculated using a simple average 28,894 35,290 * Included at June 30, 2016 and December 31, 2015 were $12.0 million and $13.1 million, respectively, in restructured and performing loans. |
Schedule of Loans Held for Investment on Nonaccrual Status | The following table presents loans held for investment on nonaccrual status by loan class for the dates indicated: (dollars in thousands) June 30, 2016 December 31, 2015 Loans held for investment: Commercial and agricultural $ 480 $ 1,053 Real estate - construction 72 110 Real estate - mortgage: 1-4 family residential 7,471 9,106 Commercial 5,969 7,209 Consumer 678 538 Total nonaccrual loans 14,670 18,016 Loans more than 90 days delinquent, still on accrual — 817 Total nonperforming loans $ 14,670 $ 18,833 |
Schedule of Impaired Loans | The following table presents individually reviewed impaired loans and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding allowance for loan losses as of June 30, 2016 : Unpaid (dollars in thousands) Recorded Principal Related Investment Balance Allowance Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 379 $ 479 $ — Real estate - construction 535 690 — Real estate - mortgage: 1-4 family residential 5,837 7,606 — Commercial 11,632 16,491 — Consumer — — — Total 18,383 25,266 — Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — Real estate - construction — — — Real estate - mortgage: 1-4 family residential 3,385 4,220 285 Commercial 346 353 43 Consumer — — — Total 3,731 4,573 328 Total individually reviewed impaired loans: Commercial and agricultural 379 479 — Real estate - construction 535 690 — Real estate - mortgage: 1-4 family residential 9,222 11,826 285 Commercial 11,978 16,844 43 Consumer — — — Total $ 22,114 $ 29,839 $ 328 PI loans with subsequent credit deterioration: Commercial and agricultural $ 4,607 $ 3,475 $ 378 Real estate - construction 6,779 7,480 634 Real estate - mortgage: 1-4 family residential 9,650 9,683 325 Commercial 47,728 47,383 1,375 Consumer 823 525 42 Total $ 69,587 $ 68,546 $ 2,754 The following table presents individually reviewed impaired loans, and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding allowance for loan losses as of December 31, 2015 : Unpaid (dollars in thousands) Recorded Principal Related Investment Balance Allowance Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 399 $ 479 $ — Real estate - construction 775 939 — Real estate - mortgage: 1-4 family residential 7,418 9,406 — Commercial 13,820 19,116 — Consumer — — — Total 22,412 29,940 — Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — Real estate - construction — — — Real estate - mortgage: 1-4 family residential 3,817 4,691 399 Commercial — — — Consumer — — — Total 3,817 4,691 399 Total individually reviewed impaired loans: Commercial and agricultural 399 479 — Real estate - construction 775 939 — Real estate - mortgage: 1-4 family residential 11,235 14,097 399 Commercial 13,820 19,116 — Consumer — — — Total $ 26,229 $ 34,631 $ 399 PI loans with subsequent credit deterioration: Commercial and agricultural $ 4,995 $ 3,908 $ 311 Real estate - construction 7,323 8,121 579 Real estate - mortgage: 1-4 family residential 11,103 11,327 384 Commercial 59,989 60,582 1,356 Consumer 919 598 124 Total $ 84,329 $ 84,536 $ 2,754 |
Schedule of Individually Reviewed Impaired Loans | Average recorded investment and interest income recognized on impaired loans, segregated by portfolio segment, is shown in the following table as of June 30, 2016 and June 30, 2015 : For Three Months Ended For Three Months Ended June 30, 2016 June 30, 2015 Average Interest Average Interest (dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 384 $ — $ 435 $ — Real estate - construction 541 7 1,126 8 Real estate - mortgage: 1-4 family residential 5,960 21 7,099 24 Commercial 11,779 46 15,770 57 Consumer — — — — Total 18,664 74 24,430 89 Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — — Real estate - construction — — — — Real estate - mortgage: 1-4 family residential 3,394 11 4,646 14 Commercial 347 4 — — Consumer — — — — Total 3,741 15 4,646 14 Total individually reviewed impaired loans: Commercial and agricultural 384 — 435 — Real estate - construction 541 7 1,126 8 Real estate - mortgage: 1-4 family residential 9,354 32 11,745 38 Commercial 12,126 50 15,770 57 Consumer — — — — Total $ 22,405 $ 89 $ 29,076 $ 103 For Six Months Ended For Six Months Ended June 30, 2016 June 30, 2015 Average Interest Average Interest (dollars in thousands) Recorded Income Recorded Income Investment Recognized Investment Recognized Individually reviewed impaired loans with no related allowance recorded: Commercial and agricultural $ 390 $ — $ 457 $ — Real estate - construction 652 21 1,201 9 Real estate - mortgage: 1-4 family residential 6,338 48 7,512 27 Commercial 12,303 139 14,425 65 Consumer — — — — Total 19,683 208 23,595 101 Individually reviewed impaired loans with an allowance recorded: Commercial and agricultural — — — — Real estate - construction — — — — Real estate - mortgage: 1-4 family residential 3,841 31 4,195 17 Commercial 298 4 1,915 26 Consumer — — — — Total 4,139 35 6,110 43 Total individually reviewed impaired loans: Commercial and agricultural 390 — 457 — Real estate - construction 652 21 1,201 9 Real estate - mortgage: 1-4 family residential 10,179 79 11,707 44 Commercial 12,601 143 16,340 91 Consumer — — — — Total $ 23,822 $ 243 $ 29,705 $ 144 |
Summary of Balances of Granite Purchased Loans | The following table presents the balance of all Granite Purchased Loans: At June 30, 2016 (dollars in thousands) Purchased Impaired Purchased Contractual Total Purchased Loans Unpaid Commercial and agricultural $ 4,607 $ 114 $ 4,721 $ 3,589 Real estate - construction 7,035 — 7,035 7,763 Real estate - mortgage: 1-4 family residential 12,405 16,755 29,160 29,609 Commercial 47,728 — 47,728 47,383 Consumer 823 — 823 525 Total $ 72,598 $ 16,869 $ 89,467 $ 88,869 At December 31, 2015 (dollars in thousands) Purchased Impaired Purchased Contractual Total Unpaid Commercial and agricultural $ 4,995 $ 238 $ 5,233 $ 4,149 Real estate - construction 7,744 — 7,744 8,579 Real estate - mortgage: 1-4 family residential 13,917 17,915 31,832 32,558 Commercial 59,989 — 59,989 60,582 Consumer 919 — 919 598 Total $ 87,564 $ 18,153 $ 105,717 $ 106,466 |
Summary of Purchased Loans Accounted for Under the Expected Cash Flow Method | This table does not include PC loans, including Granite PC loans or purchased residential mortgage loan pools. For Three Months Ended For Three Months Ended June 30, 2016 June 30, 2015 Purchased Impaired Purchased Impaired (dollars in thousands) Carrying Future Carrying Future Accretion Balance, beginning of period $ 84,627 $ 14,215 $ 109,262 $ 20,925 Addition from Bank of Granite Corp merger — — — — Accretion 1,319 (1,319 ) 1,841 (1,841 ) Increase (Decrease) in future accretion — (1 ) — 1,716 Reclassification of loans and adjustments — — — — Payments received (12,650 ) — (8,522 ) — Foreclosed and transferred to OREO (698 ) — (466 ) — Subtotal before allowance 72,598 12,895 102,115 20,800 Allowance for loan losses (2,754 ) — (3,181 ) — Net carrying amount, end of period $ 69,844 $ 12,895 $ 98,934 $ 20,800 For Six Months Ended For Six Months Ended June 30, 2016 June 30, 2015 Purchased Impaired Purchased Impaired (dollars in thousands) Carrying Future Carrying Future Accretion Balance, beginning of period $ 87,564 $ 15,623 $ 122,842 $ 24,898 Accretion 2,725 (2,725 ) 3,889 (3,889 ) Increase (Decrease) in future accretion — (3 ) — (209 ) Payments received (16,993 ) — (23,376 ) — Foreclosed and transferred to OREO (698 ) — (1,240 ) — Subtotal before allowance 72,598 12,895 102,115 20,800 Allowance for credit losses (2,754 ) — (3,181 ) — Net carrying amount, end of period $ 69,844 $ 12,895 $ 98,934 $ 20,800 |
Summary of Allowance for Loan Losses | An analysis of the changes in the ALL is as follows: For Three Months Ended For Six Months Ended (dollars in thousands) June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Balance, beginning of period $ 14,240 $ 19,008 $ 15,195 $ 20,345 Recovery of losses charged to continuing operations 507 (788 ) (28 ) (1,926 ) Net charge-offs: Charge-offs (2,041 ) (1,567 ) (3,135 ) (2,562 ) Recoveries 999 1,336 1,673 2,132 Net charge-offs (1,042 ) (231 ) (1,462 ) (430 ) Balance, end of period $ 13,705 $ 17,989 $ 13,705 $ 17,989 Annualized net charge-offs during the period to average loans held for investment 0.27 % 0.07 % 0.19 % 0.06 % Annualized net charge-offs during the period to ALL 30.58 % 5.15 % 21.45 % 4.82 % Allowance for loan losses to loans held for investment 0.90 % 1.24 % 0.90 % 1.24 % |
Schedule of Allowance for Loan Losses by Portfolio Segment | The following table presents ALL activity by portfolio segment for the three months ended June 30, 2016 : Real Estate - Mortgage (dollars in thousands) Commercial and Agricultural Real Estate - Construction 1-4 Family Residential Commercial Consumer Total ALL: Beginning balance April 1, 2016 $ 2,044 $ 1,296 $ 4,375 $ 2,543 $ 3,982 $ 14,240 Charge-offs 61 (9 ) (610 ) (195 ) (1,288 ) (2,041 ) Recoveries (32 ) 174 247 385 225 999 Provision (recovery of provision) (1,006 ) 725 54 (725 ) 1,459 507 Ending balance June 30, 2016 $ 1,067 $ 2,186 $ 4,066 $ 2,008 $ 4,378 $ 13,705 The following table presents ALL activity by portfolio segment for the three months ended June 30, 2015 : Real Estate - Mortgage (dollars in thousands) Commercial and Agricultural Real Estate - Construction 1-4 Family Residential Commercial Consumer Total ALL: Beginning balance January 1, 2015 $ 3,398 $ 3,120 $ 5,623 $ 3,152 $ 3,715 $ 19,008 Charge-offs (257 ) (4 ) (251 ) (261 ) (794 ) (1,567 ) Recoveries 428 179 171 328 230 1,336 Provision (recovery of provision) (857 ) (1,088 ) (26 ) 87 1,096 (788 ) Ending balance June 30, 2015 $ 2,712 $ 2,207 $ 5,517 $ 3,306 $ 4,247 $ 17,989 |
Schedule of Recorded Investment by Portfolio Segment | The following table details the recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of impairment evaluation methodology at June 30, 2016 : Real Estate - Mortgage (dollars in thousands) Commercial and Agricultural Real Estate - Construction 1-4 Family Residential Commercial Consumer Total ALL: Individually reviewed for impairment $ — $ — $ 285 $ 43 $ — $ 328 Collectively reviewed for impairment 756 1,607 3,397 609 4,254 10,623 PI loans reviewed for credit impairment 311 579 384 1,356 124 2,754 PI loans with no credit deterioration — — — — — — Total ALL $ 1,067 $ 2,186 $ 4,066 $ 2,008 $ 4,378 $ 13,705 Loans held for investment: Individually reviewed for impairment $ 379 $ 535 $ 9,222 $ 11,978 $ — $ 22,114 Collectively reviewed for impairment 141,216 106,414 635,194 425,990 121,544 1,430,358 PI loans with subsequent credit deterioration 4,607 6,779 9,650 47,728 823 69,587 PI loans with no credit deterioration — 256 2,755 — — 3,011 Total loans $ 146,202 $ 113,984 $ 656,821 $ 485,696 $ 122,367 $ 1,525,070 The following table details the recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of impairment evaluation methodology at December 31, 2015 : Real Estate - Mortgage (dollars in thousands) Commercial and Agricultural Real Estate - Construction 1-4 Family Residential Commercial Consumer Total ALL: Individually reviewed for impairment $ — $ — $ 399 $ — $ — $ 399 Collectively reviewed for impairment 2,091 1,190 4,358 972 3,431 12,042 PI loans reviewed for credit impairment 311 579 384 1,356 124 2,754 PI loans with no credit deterioration — — — — — — Total ALL $ 2,402 $ 1,769 $ 5,141 $ 2,328 $ 3,555 $ 15,195 Loans held for investment: Individually reviewed for impairment $ 399 $ 775 $ 11,235 $ 13,820 $ — $ 26,229 Collectively reviewed for impairment 146,912 98,483 662,402 415,304 106,901 1,430,002 PI loans with subsequent credit deterioration 4,995 7,323 11,103 59,989 919 84,329 PI loans with no credit deterioration — 421 2,814 — — 3,235 Total loans $ 152,306 $ 107,002 $ 687,554 $ 489,113 $ 107,820 $ 1,543,795 |
Summary of Troubled Debt Restructurings | The following tables present a breakdown of troubled debt restructurings that were restructured during the three and six months ended June 30, 2016 and June 30, 2015 , respectively, segregated by portfolio segment: For Three Months Ended June 30, 2016 For Three Months Ended June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding (dollars in thousands) Number Recorded Recorded Number Recorded Recorded of Loans Investment Investment of Loans Investment Investment Commercial and agricultural — $ — $ — — $ — $ — Real estate - construction — — — 1 370 370 Real estate - mortgage: 1-4 family residential 1 47 47 1 446 446 Commercial 1 100 100 — — — Consumer — — — — — — Total 2 $ 147 $ 147 2 $ 816 $ 816 For Six Months Ended June 30, 2016 For Six Months Ended June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding (dollars in thousands) Number Recorded Recorded Number Recorded Recorded of Loans Investment Investment of Loans Investment Investment Commercial and agricultural — $ — $ — — $ — $ — Real estate - construction 2 307 332 1 370 370 Real estate - mortgage: 1-4 family residential 1 47 47 1 446 446 Commercial 1 100 100 — — — Consumer — — — — — — Total 4 $ 454 $ 479 2 $ 816 $ 816 |
Other Real Estate Owned and P21
Other Real Estate Owned and Property Acquired in Settlement of Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Repossessed Assets [Abstract] | |
Schedule of Repossessed Assets | The following table summarizes OREO and property acquired in settlement of loans at the periods indicated: (dollars in thousands) June 30, 2016 December 31, 2015 Real estate acquired in settlement of loans $ 14,191 $ 16,251 Property acquired in settlement of loans 245 332 Total property acquired in settlement of loans $ 14,436 $ 16,583 |
Schedule of Activities of Real Estate Acquired through Foreclosure | The following table summarizes the changes in real estate acquired in settlement of loans at the periods indicated: For Three Months Ended (dollars in thousands) June 30, 2016 June 30, 2015 Real estate acquired in settlement of loans, beginning of period $ 13,845 $ 20,833 Plus: New real estate acquired in settlement of loans 2,143 938 Plus: Real estate acquired in BOGC acquisition — — Less: Sales of real estate acquired in settlement of loans (1,794 ) (1,663 ) Less: Write-downs and net loss on sales charged to expense (3 ) (391 ) Real estate acquired in settlement of loans, end of period $ 14,191 $ 19,717 For Six Months Ended (dollars in thousands) June 30, 2016 June 30, 2015 Real estate acquired in settlement of loans, beginning of period $ 16,251 $ 20,122 Plus: New real estate acquired in settlement of loans 2,202 3,433 Less: Sales of real estate acquired in settlement of loans (3,758 ) (3,153 ) Less: Write-downs and net loss on sales charged to expense (504 ) (685 ) Real estate acquired in settlement of loans, end of period $ 14,191 $ 19,717 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | As required for entities with complex capital structures, a dual presentation of basic and diluted EPS is included on the face of the income statement, and a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation is provided in this note. (dollars in thousands, except share and per share data) For Three Months Ended For Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net income $ 3,892 $ 2,523 $ 7,806 $ 5,042 Weighted average number of shares outstanding - basic 24,294,424 24,202,012 24,293,214 24,192,744 Weighted average number of shares outstanding - diluted 24,316,019 24,214,578 24,314,165 24,204,832 Net income per share - basic and diluted $ 0.16 $ 0.10 $ 0.32 $ 0.21 |
Derivatives and Financial Ins23
Derivatives and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) | The fair market value of mortgage banking derivatives is recorded in the consolidated balance sheet in Other Assets. Gain (Loss) Recognized (dollars in thousands) For Three Months Ended For Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Derivatives designated as hedging instruments: Interest rate swap contracts - FHLB advances $ (137 ) $ 262 $ (686 ) $ (59 ) Derivatives not designated as hedging instruments: Mortgage loan rate lock commitments 3 4 $ 4 $ (3 ) Mortgage loan forward sales 61 (61 ) 68 17 Total $ 64 $ (57 ) $ 72 $ 14 |
Fair Values of Assets and Lia24
Fair Values of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities carried at fair value on a recurring basis at June 30, 2016 are summarized in the following table: (dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale debt securities: U.S. government sponsored agencies $ — $ — $ — $ — Residential mortgage-backed securities-GSE 270,995 — 270,995 — Residential mortgage-backed securities-Private 28,984 — 28,984 — Commercial mortgage-backed securities-GSE 22,167 — 22,167 — Commercial mortgage-backed securities-Private 18,081 — 18,081 — Corporate notes 37,419 — 37,419 — Total available-for-sale debt securities 377,646 — 377,646 — Mortgage servicing rights 2,812 — — 2,812 Interest rate swaps (1,847 ) — (1,847 ) — Total assets at fair value $ 378,611 $ — $ 375,799 $ 2,812 Assets and liabilities carried at fair value on a recurring basis at December 31, 2015 are summarized in the following table: (dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale debt securities: U.S. government sponsored agencies $ 2,008 $ — $ 2,008 $ — Residential mortgage-backed securities-GSE 278,107 — 278,107 — Residential mortgage-backed securities-Private 33,577 — 33,577 — Commercial mortgage-backed securities-GSE 21,611 — 21,611 — Commercial mortgage-backed securities-Private 17,575 — 17,575 — Corporate notes 37,555 — 37,555 — Total available-for-sale debt securities 390,433 — 390,433 — Mortgage servicing rights 2,231 — — 2,231 Interest rate swaps (755 ) — (755 ) — Total assets at fair value $ 391,909 $ — $ 389,678 $ 2,231 |
Schedule of Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the periods indicated: Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Mortgage Servicing Rights (dollars in thousands) Three Months Ended June 30, 2016 2015 Balance, beginning of period $ 2,654 $ 1,896 Total gains or losses (realized/unrealized): Included in earnings, gross 364 256 Less amortization (206 ) (140 ) Balance, end of period $ 2,812 $ 2,012 |
Schedule of Assets Measure at Fair Value on a Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the following table at June 30, 2016 : (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans, net $ 2,597 $ — $ — $ 2,597 Other real estate owned 6,756 — — 6,756 Total assets at fair value from continuing operations $ 9,353 $ — $ — $ 9,353 Assets measured at fair value on a nonrecurring basis are included in the following table at December 31, 2015 : (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans, net $ 3,418 $ — $ — $ 3,418 Other real estate owned 10,630 — — 10,630 Total assets at fair value from continuing operations $ 14,048 $ — $ — $ 14,048 |
Schedule of Quantitative Information About Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements (dollars in thousands) Fair Value at June 30, 2016 Valuation Techniques Unobservable Input Range Impaired loans, net $ 2,597 Discounted appraisals Collateral discounts 1.00% - 30.00% Other real estate owned 6,756 Discounted appraisals Collateral discounts 1.00% - 30.00% Mortgage servicing rights 2,812 Discounted cash flows Prepayment rate 10.00% - 25.00% Mortgage servicing rights Discount rate 6.00% - 10.00% (dollars in thousands) Fair Value at Valuation Techniques Unobservable Input Range Impaired loans, net $ 3,418 Discounted appraisals Collateral discounts 1.00%-30.00% Other real estate owned 10,630 Discounted appraisals Collateral discounts 1.00%-30.00% Mortgage servicing rights 2,231 Discounted cash flows Prepayment rate 10.00% - 25.00% Mortgage servicing rights Discount rate 6.00% - 10.00% |
Schedule of Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are as follows at the periods indicated: At June 30, 2016 (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 53,572 $ 53,572 $ 53,572 $ — $ — Investment securities: Available-for-sale 377,646 377,646 — 377,646 — Investment securities: Held-to-maturity 139,813 142,217 — 142,217 — Loans held for sale 4,524 4,524 — 4,524 — Loans held for investment, net 1,511,365 1,524,449 — — 1,524,449 Accrued interest receivable 5,201 5,201 7 1,548 3,646 Interest rate swaps (1,847 ) (1,847 ) — (1,847 ) — Financial Liabilities: Deposits 1,916,481 1,918,660 — 1,918,660 — Retail repurchase agreements 12,761 12,761 — 12,761 — Federal Home Loan Bank advances 65,153 67,321 — 67,321 — Long-term notes payable 5,454 5,454 — — 5,454 Junior subordinated debentures 56,702 31,502 — — 31,502 Accrued interest payable 353 353 — 335 18 At December 31, 2015 (dollars in thousands) Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 39,175 $ 39,175 $ 39,175 $ — $ — Investment securities: Available-for-sale 390,434 390,434 — 390,434 — Investment securities: Held-to-maturity 147,967 145,184 — 145,184 — Loans held for sale 5,403 5,403 — 5,403 — Loans held for investment, net 1,528,600 1,513,226 — — 1,513,226 Accrued interest receivable 5,305 5,305 — 1,630 3,675 Interest rate locks and forward loan sale commitments (755 ) (755 ) — (755 ) — Financial Liabilities: Deposits 1,947,537 1,945,691 — 1,945,691 — Retail repurchase agreements 7,219 7,219 — 7,219 — Federal Home Loan Bank advances 93,681 95,781 — 95,781 — Long-term notes payable 5,415 5,415 — — 5,415 Junior subordinated debentures 56,702 32,536 — — 32,536 Accrued interest payable 367 367 — 349 18 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in our accumulated other comprehensive income (loss), net of tax, by component for the periods indicated: (Dollars in thousands) Unrealized Gains (Losses) on Available-For-Sale Securities Interest Rate Swaps Defined Benefit Plan Items Total Beginning balance January 1, 2016 $ (5,176 ) $ (466 ) $ (5,097 ) $ (10,739 ) Other comprehensive income (loss) before reclassifications 6,989 (690 ) (54 ) 6,245 Amounts reclassified from accumulated other comprehensive income — 4 — 4 Net current period other comprehensive income (loss) 6,989 (686 ) (54 ) 6,249 Ending balance June 30, 2016 $ 1,813 $ (1,152 ) $ (5,151 ) $ (4,490 ) (Dollars in thousands) Unrealized Gains (Losses) on Available-For-Sale Securities Interest Rate Swaps Defined Benefit Plan Items Total Beginning balance January 1, 2015 $ (3,017 ) $ (324 ) $ (4,134 ) $ (7,475 ) Other comprehensive loss before reclassifications (2,515 ) (63 ) — (2,578 ) Amounts reclassified from accumulated other comprehensive income — 4 — 4 Net current period other comprehensive loss (2,515 ) (59 ) — (2,574 ) Ending balance June 30, 2015 $ (5,532 ) $ (383 ) $ (4,134 ) $ (10,049 ) |
Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the reclassifications out of our accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015: (Dollars in thousands) Amount Reclassified from AOCI For Three Months Ended For Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Line Item in the Consolidated Statement of Operations Interest rate swaps: Swap ineffectiveness expense $ 3 $ 3 $ 6 $ 6 Other expense Income tax benefit (1 ) (1 ) (2 ) (2 ) Income tax expense Total, net of tax 2 2 4 4 Total reclassifications for the period $ 2 $ 2 $ 4 $ 4 |
Repurchase Agreement Borrowin26
Repurchase Agreement Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of the Carrying Value of Repurchase Agreements | The following table presents the carrying value of repurchase agreements by remaining contractual maturity at June 30, 2016 and December 31, 2015 : June 30, 2016 (dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight and Continuous 1 - 90 days Over 90 days Total Residential mortgage-backed securities-GSE $ 12,761 $ — $ — $ 12,761 December 31, 2015 (dollars in thousands) Remaining Contractual Maturity of the Agreements Overnight and Continuous 1 - 90 days Over 90 days Total Residential mortgage-backed securities-GSE $ 7,219 $ — $ — $ 7,219 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Available-for-sale Securities [Abstract] | |||
Amortized Cost | $ 374,740 | $ 398,815 | [1] |
Gross Unrealized Gains | 3,740 | 920 | |
Gross Unrealized Losses | 834 | 9,301 | |
Total | 377,646 | 390,434 | [1] |
Held-to-maturity Securities [Abstract] | |||
Amortized Cost | 139,813 | 147,967 | |
Gross Unrealized Gains | 2,417 | 0 | |
Gross Unrealized Losses | 13 | 2,782 | |
Total | 142,217 | 145,185 | [1] |
Amortized Cost, Total | 514,553 | 546,782 | |
Gross Unrealized Gains, Total | 6,157 | 920 | |
Gross Unrealized Losses, Total | 847 | 12,083 | |
Estimated Fair Value, Total | 519,863 | 535,619 | |
U.S. Government-sponsored agencies [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 2,005 | ||
Gross Unrealized Gains | 3 | ||
Gross Unrealized Losses | 0 | ||
Total | 2,008 | ||
Residential mortgage-backed securities - GSE [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 269,169 | 286,057 | |
Gross Unrealized Gains | 2,497 | 339 | |
Gross Unrealized Losses | 671 | 8,289 | |
Total | 270,995 | 278,107 | |
Held-to-maturity Securities [Abstract] | |||
Amortized Cost | 115,395 | 120,197 | |
Gross Unrealized Gains | 1,975 | 0 | |
Gross Unrealized Losses | 13 | 2,310 | |
Total | 117,357 | 117,887 | |
Residential mortgage-backed securities - Private [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 28,567 | 33,235 | |
Gross Unrealized Gains | 450 | 578 | |
Gross Unrealized Losses | 33 | 236 | |
Total | 28,984 | 33,577 | |
Held-to-maturity Securities [Abstract] | |||
Amortized Cost | 14,363 | 17,712 | |
Gross Unrealized Gains | 38 | 0 | |
Gross Unrealized Losses | 0 | 298 | |
Total | 14,401 | 17,414 | |
Commercial mortgage-backed securities - GSE [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 21,779 | 21,980 | |
Gross Unrealized Gains | 388 | 0 | |
Gross Unrealized Losses | 0 | 368 | |
Total | 22,167 | 21,612 | |
Commercial mortgage-backed securities - Private [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 17,847 | 17,869 | |
Gross Unrealized Gains | 362 | 0 | |
Gross Unrealized Losses | 128 | 294 | |
Total | 18,081 | 17,575 | |
Held-to-maturity Securities [Abstract] | |||
Amortized Cost | 10,055 | 10,058 | |
Gross Unrealized Gains | 404 | 0 | |
Gross Unrealized Losses | 0 | 174 | |
Total | 10,459 | 9,884 | |
Corporate notes [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 37,378 | 37,669 | |
Gross Unrealized Gains | 43 | 0 | |
Gross Unrealized Losses | 2 | 114 | |
Total | $ 37,419 | $ 37,555 | |
[1] | Derived from audited consolidated financial statements |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Millions | Jun. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
FHLB stock | $ 4.9 | $ 6 |
FRBR stock | 10.1 | 9.9 |
Investment securities portfolio available as lendable collateral | $ 181 | $ 213.6 |
Number of available-for-sale securities in an unrealized loss position | security | 18 | 18,000 |
Deposits [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities portfolio pledged as collateral | $ 158 | |
Retail repurchase agreements [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities portfolio pledged as collateral | 15.9 | |
Others [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities portfolio pledged as collateral | $ 162.5 |
Investment Securities (Continuo
Investment Securities (Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | $ 12,795 | $ 233,973 |
Less than 12 months, gross unrealized losses | 30 | 3,567 |
12 months or more, estimated fair value | 127,888 | 132,784 |
12 months or more, gross unrealized losses | 804 | 5,734 |
Total, estimated fair value | 140,683 | 366,757 |
Total, gross unrealized losses | 834 | 9,301 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 0 | 110,312 |
Less than 12 months, gross unrealized losses | 0 | 1,953 |
12 months or more, estimated fair value | 12,739 | 34,872 |
12 months or more, gross unrealized losses | 13 | 829 |
Total, estimated fair value | 12,739 | 145,184 |
Total, gross unrealized losses | 13 | 2,782 |
Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 12,795 | 344,285 |
Less than 12 months, gross unrealized losses | 30 | 5,520 |
12 months or more, estimated fair value | 140,627 | 167,656 |
12 months or more, gross unrealized losses | 817 | 6,563 |
Total, estimated fair value | 153,422 | 511,941 |
Total, gross unrealized losses | 847 | 12,083 |
Residential mortgage-backed securities - GSE [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 0 | 137,998 |
Less than 12 months, gross unrealized losses | 0 | 2,560 |
12 months or more, estimated fair value | 119,845 | 132,148 |
12 months or more, gross unrealized losses | 671 | 5,729 |
Total, estimated fair value | 119,845 | 270,146 |
Total, gross unrealized losses | 671 | 8,289 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 0 | 83,014 |
Less than 12 months, gross unrealized losses | 0 | 1,481 |
12 months or more, estimated fair value | 12,739 | 34,872 |
12 months or more, gross unrealized losses | 13 | 829 |
Total, estimated fair value | 12,739 | 117,886 |
Total, gross unrealized losses | 13 | 2,310 |
Residential mortgage-backed securities - Private [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 2,791 | 26,265 |
Less than 12 months, gross unrealized losses | 28 | 231 |
12 months or more, estimated fair value | 621 | 636 |
12 months or more, gross unrealized losses | 5 | 5 |
Total, estimated fair value | 3,412 | 26,901 |
Total, gross unrealized losses | 33 | 236 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 17,414 | |
Less than 12 months, gross unrealized losses | 298 | |
12 months or more, estimated fair value | 0 | |
12 months or more, gross unrealized losses | 0 | |
Total, estimated fair value | 17,414 | |
Total, gross unrealized losses | 298 | |
Commercial mortgage-backed securities - GSE [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 21,612 | |
Less than 12 months, gross unrealized losses | 368 | |
12 months or more, estimated fair value | 0 | |
12 months or more, gross unrealized losses | 0 | |
Total, estimated fair value | 21,612 | |
Total, gross unrealized losses | 368 | |
Commercial mortgage-backed securities - Private [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 0 | 17,575 |
Less than 12 months, gross unrealized losses | 0 | 294 |
12 months or more, estimated fair value | 7,422 | 0 |
12 months or more, gross unrealized losses | 128 | 0 |
Total, estimated fair value | 7,422 | 17,575 |
Total, gross unrealized losses | 128 | 294 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 9,884 | |
Less than 12 months, gross unrealized losses | 174 | |
12 months or more, estimated fair value | 0 | |
12 months or more, gross unrealized losses | 0 | |
Total, estimated fair value | 9,884 | |
Total, gross unrealized losses | 174 | |
Corporate notes [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, estimated fair value | 10,004 | 30,523 |
Less than 12 months, gross unrealized losses | 2 | 114 |
12 months or more, estimated fair value | 0 | 0 |
12 months or more, gross unrealized losses | 0 | 0 |
Total, estimated fair value | 10,004 | 30,523 |
Total, gross unrealized losses | $ 2 | $ 114 |
Investment Securities (Maturity
Investment Securities (Maturity Schedule) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Available-for-Sale, Amortized Cost | |||
Total | $ 374,740 | ||
Available-for-Sale, Estimated Fair Value | |||
Total | 377,646 | $ 390,434 | [1] |
Held-to-Maturity, Amortized Cost | |||
Total | 139,813 | 147,967 | [1] |
Held-to-Maturity, Estimated Fair Value | |||
Total | 142,217 | 145,185 | [1] |
Residential mortgage-backed securities - GSE [Member] | |||
Available-for-Sale, Amortized Cost | |||
Due after five years through 10 years | 1,568 | ||
Due after ten years | 267,601 | ||
Available-for-Sale, Estimated Fair Value | |||
Due after five years through 10 years | 1,617 | ||
Due after ten years | 269,378 | ||
Total | 270,995 | 278,107 | |
Held-to-Maturity, Amortized Cost | |||
Due after five years through 10 years | 0 | ||
Due after ten years | 115,395 | ||
Held-to-Maturity, Estimated Fair Value | |||
Due after five years through 10 years | 0 | ||
Due after ten years | 117,357 | ||
Total | 117,357 | 117,887 | |
Residential mortgage-backed securities - Private [Member] | |||
Available-for-Sale, Amortized Cost | |||
Due after ten years | 28,567 | ||
Available-for-Sale, Estimated Fair Value | |||
Due after ten years | 28,984 | ||
Total | 28,984 | 33,577 | |
Held-to-Maturity, Amortized Cost | |||
Due after ten years | 14,363 | ||
Held-to-Maturity, Estimated Fair Value | |||
Due after ten years | 14,401 | ||
Total | 14,401 | 17,414 | |
Commercial mortgage-backed securities - GSE [Member] | |||
Available-for-Sale, Amortized Cost | |||
Due after one year through five years | 21,779 | ||
Available-for-Sale, Estimated Fair Value | |||
Due after one year through five years | 22,167 | ||
Total | 22,167 | 21,612 | |
Held-to-Maturity, Amortized Cost | |||
Due after one year through five years | 0 | ||
Held-to-Maturity, Estimated Fair Value | |||
Due after one year through five years | 0 | ||
Commercial mortgage-backed securities - Private [Member] | |||
Available-for-Sale, Amortized Cost | |||
Due after ten years | 17,847 | ||
Available-for-Sale, Estimated Fair Value | |||
Due after ten years | 18,081 | ||
Total | 18,081 | 17,575 | |
Held-to-Maturity, Amortized Cost | |||
Due after ten years | 10,055 | ||
Held-to-Maturity, Estimated Fair Value | |||
Due after ten years | 10,459 | ||
Total | 10,459 | 9,884 | |
Corporate notes [Member] | |||
Available-for-Sale, Amortized Cost | |||
Due after one year through five years | 7,043 | ||
Due in one year or less | 30,335 | ||
Available-for-Sale, Estimated Fair Value | |||
Due after one year through five years | 7,065 | ||
Due in one year or less | 30,354 | ||
Total | 37,419 | $ 37,555 | |
Held-to-Maturity, Amortized Cost | |||
Due after one year through five years | 0 | ||
Due in one year or less | 0 | ||
Held-to-Maturity, Estimated Fair Value | |||
Due after one year through five years | 0 | ||
Due in one year or less | $ 0 | ||
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Past Due Status) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | $ 14,670 | $ 18,016 | |
Total past due and nonaccrual | 30,641 | 39,584 | |
Current and accruing | 1,494,429 | 1,504,211 | |
Total Loans | 1,525,070 | 1,543,795 | [1] |
Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 146,202 | 152,306 | |
Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 113,984 | 107,002 | |
Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 656,821 | 687,554 | |
Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 485,696 | 489,113 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Loans | 122,367 | 107,820 | |
PC and Originated Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 14,670 | 18,016 | |
Total past due and nonaccrual | 18,159 | 25,192 | |
Current and accruing | 1,434,313 | 1,431,039 | |
Total Loans | 1,452,472 | 1,456,231 | |
PC and Originated Loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 480 | 1,053 | |
Total past due and nonaccrual | 609 | 1,054 | |
Current and accruing | 140,986 | 146,257 | |
Total Loans | 141,595 | 147,311 | |
PC and Originated Loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 72 | 110 | |
Total past due and nonaccrual | 612 | 1,011 | |
Current and accruing | 106,337 | 98,247 | |
Total Loans | 106,949 | 99,258 | |
PC and Originated Loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 7,471 | 9,106 | |
Total past due and nonaccrual | 8,575 | 13,207 | |
Current and accruing | 635,841 | 660,430 | |
Total Loans | 644,416 | 673,637 | |
PC and Originated Loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 5,969 | 7,209 | |
Total past due and nonaccrual | 6,032 | 7,904 | |
Current and accruing | 431,936 | 421,220 | |
Total Loans | 437,968 | 429,124 | |
PC and Originated Loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 678 | 538 | |
Total past due and nonaccrual | 2,331 | 2,016 | |
Current and accruing | 119,213 | 104,885 | |
Total Loans | 121,544 | 106,901 | |
PI loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Total past due and nonaccrual | 12,482 | 14,392 | |
Current and accruing | 60,116 | 73,172 | |
Total Loans | 72,598 | 87,564 | |
PI loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Total past due and nonaccrual | 1,768 | 1,720 | |
Current and accruing | 2,839 | 3,275 | |
Total Loans | 4,607 | 4,995 | |
PI loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Total past due and nonaccrual | 1,309 | 1,455 | |
Current and accruing | 5,726 | 6,289 | |
Total Loans | 7,035 | 7,744 | |
PI loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Total past due and nonaccrual | 1,251 | 1,744 | |
Current and accruing | 11,154 | 12,173 | |
Total Loans | 12,405 | 13,917 | |
PI loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Total past due and nonaccrual | 8,144 | 9,459 | |
Current and accruing | 39,584 | 50,530 | |
Total Loans | 47,728 | 59,989 | |
PI loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual | 0 | 0 | |
Total past due and nonaccrual | 10 | 14 | |
Current and accruing | 813 | 905 | |
Total Loans | 823 | 919 | |
30 to 59 days past due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 2,554 | 6,588 | |
30 to 59 days past due [Member] | PC and Originated Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 2,427 | 5,359 | |
30 to 59 days past due [Member] | PC and Originated Loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 80 | 0 | |
30 to 59 days past due [Member] | PC and Originated Loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 540 | 761 | |
30 to 59 days past due [Member] | PC and Originated Loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 433 | 2,710 | |
30 to 59 days past due [Member] | PC and Originated Loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 63 | 661 | |
30 to 59 days past due [Member] | PC and Originated Loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,311 | 1,227 | |
30 to 59 days past due [Member] | PI loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 127 | 1,229 | |
30 to 59 days past due [Member] | PI loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 47 | 102 | |
30 to 59 days past due [Member] | PI loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
30 to 59 days past due [Member] | PI loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 78 | 602 | |
30 to 59 days past due [Member] | PI loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 517 | |
30 to 59 days past due [Member] | PI loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 2 | 8 | |
60 to 89 days past due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,129 | 1,137 | |
60 to 89 days past due [Member] | PC and Originated Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,062 | 999 | |
60 to 89 days past due [Member] | PC and Originated Loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 49 | 1 | |
60 to 89 days past due [Member] | PC and Originated Loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 140 | |
60 to 89 days past due [Member] | PC and Originated Loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 671 | 574 | |
60 to 89 days past due [Member] | PC and Originated Loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 34 | |
60 to 89 days past due [Member] | PC and Originated Loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 342 | 250 | |
60 to 89 days past due [Member] | PI loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 67 | 138 | |
60 to 89 days past due [Member] | PI loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
60 to 89 days past due [Member] | PI loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
60 to 89 days past due [Member] | PI loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 40 | 15 | |
60 to 89 days past due [Member] | PI loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 22 | 123 | |
60 to 89 days past due [Member] | PI loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 5 | 0 | |
More than 90 days past due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 12,288 | 13,843 | |
More than 90 days past due [Member] | PC and Originated Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 818 | |
More than 90 days past due [Member] | PC and Originated Loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
More than 90 days past due [Member] | PC and Originated Loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
More than 90 days past due [Member] | PC and Originated Loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 817 | |
More than 90 days past due [Member] | PC and Originated Loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 0 | |
More than 90 days past due [Member] | PC and Originated Loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 0 | 1 | |
More than 90 days past due [Member] | PI loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 12,288 | 13,025 | |
More than 90 days past due [Member] | PI loans [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,721 | 1,618 | |
More than 90 days past due [Member] | PI loans [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,309 | 1,455 | |
More than 90 days past due [Member] | PI loans [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 1,133 | 1,127 | |
More than 90 days past due [Member] | PI loans [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | 8,122 | 8,819 | |
More than 90 days past due [Member] | PI loans [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Accruing | $ 3 | $ 6 | |
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Financing Receivable [Line Items] | |||||||||
Net loan premiums | $ 4,000 | $ 4,000 | $ 3,700 | ||||||
Unpaid principal balance of loans serviced to others | 376,500 | 376,500 | 304,600 | ||||||
Loans pledged to collateralize FHLB advances and letters of credit | 91,900 | 91,900 | 102,900 | ||||||
Investment securities pledged to collateralize FHLB advances and letters of credit | 119,800 | 119,800 | 113,000 | ||||||
Credit availability for borrowing under FHLB advances and letters of credit | 82,000 | 82,000 | 80,800 | ||||||
Loans pledged to collateralize potential borrowings from Federal Reserve Discount Window | 3,600 | 3,600 | |||||||
Securities pledged to collateralize potential borrowings from Federal Reserve Discount Window | 42,800 | 42,800 | |||||||
Borrowing capacity under Federal Reserve Discount Window | 42,400 | 42,400 | |||||||
Additional borrowings from FHLB | 326,900 | 326,900 | |||||||
Interest lost on nonaccrual loans | 500 | $ 700 | |||||||
Loans on nonaccrual status | 14,700 | 14,700 | 18,000 | ||||||
Restructured loans | 16,100 | 16,100 | 17,900 | ||||||
Allowance of loan losses | 13,705 | $ 17,989 | 13,705 | 17,989 | $ 14,240 | $ 15,195 | [1] | $ 19,008 | $ 20,345 |
Charge-offs | 2,041 | 1,567 | 3,135 | 2,562 | |||||
Recoveries | 999 | 1,336 | 1,673 | 2,132 | |||||
Net charge-offs | $ 1,042 | $ 231 | $ 1,462 | $ 430 | |||||
ALL, as a percentage of loans held for investment | 0.90% | 1.24% | 0.90% | 1.24% | 0.98% | ||||
Number of loans | loan | 2 | 2 | 4 | 2 | |||||
Number of loans with modified terms | loan | 2 | ||||||||
Number of loans with modified terms and interest rate | loan | 2 | ||||||||
Reserve for unfunded commitments | $ 1,200 | $ 1,200 | $ 800 | ||||||
Minimum [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Straight lines of credit expected funding rate | 50.00% | ||||||||
Maximum [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Straight lines of credit expected funding rate | 100.00% | ||||||||
Letter of Credit [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Expected usage percentage of remaining unfunded commitments | 10.00% | ||||||||
Granite Corp [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Loans purchased | $ 69,844 | $ 98,934 | $ 69,844 | $ 98,934 | |||||
Substandard or Doubtful [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Loans purchased | 16,200 | 16,200 | 27,000 | ||||||
Performing Financial Instruments [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Restructured loans | 12,000 | 12,000 | 13,100 | ||||||
PI loans [Member] | Granite Corp [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Allowance of loan losses | 2,800 | 2,800 | 2,800 | ||||||
PC and Originated Loans [Member] | Granite Corp [Member] | |||||||||
Financing Receivable [Line Items] | |||||||||
Allowance of loan losses | $ 300 | $ 300 | $ 300 | ||||||
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Loans Held for Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | $ 1,525,070 | $ 1,543,795 | [1] |
Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 146,202 | 152,306 | |
Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 113,984 | 107,002 | |
Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 656,821 | 687,554 | |
Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 485,696 | 489,113 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 122,367 | 107,820 | |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 1,464,814 | 1,476,386 | |
Pass [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 138,177 | 148,844 | |
Pass [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 108,486 | 100,252 | |
Pass [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 643,150 | 669,695 | |
Pass [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 453,787 | 450,587 | |
Pass [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 121,214 | 107,008 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 20,436 | 19,071 | |
Special Mention [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 5,657 | 672 | |
Special Mention [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 1,784 | 2,122 | |
Special Mention [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 2,222 | 3,508 | |
Special Mention [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 10,768 | 12,765 | |
Special Mention [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 5 | 4 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 39,368 | 48,083 | |
Substandard [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 2,368 | 2,790 | |
Substandard [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 3,714 | 4,628 | |
Substandard [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 11,449 | 14,351 | |
Substandard [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 21,141 | 25,761 | |
Substandard [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 696 | 553 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 452 | 255 | |
Doubtful [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 0 | 0 | |
Doubtful [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 0 | 0 | |
Doubtful [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 0 | 0 | |
Doubtful [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | 0 | 0 | |
Doubtful [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans held for investment | $ 452 | $ 255 | |
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Impaired Loans) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | ||
Recorded Investment | |||
Impaired loans, no individually reviewed for impairment | $ 4,543 | $ 4,903 | |
Impaired loans, individually reviewed, with no impairment | 18,383 | 22,411 | |
Impaired loans, individually reviewed, with impairment | 3,731 | 3,817 | |
Total impaired loans, excluding purchased impaired | [1] | 26,657 | 31,131 |
Purchased impaired loans with subsequent deterioration | 69,587 | 84,329 | |
Purchased impaired loans with no subsequent deterioration | 3,011 | 3,235 | |
Impaired financing receivable, simple average balance | 28,894 | 35,290 | |
Associated Reserves | |||
Impaired loan, individually reviewed, with impairment, associated reserves | [1] | 328 | 399 |
Purchased impaired loans with subsequent deterioration | 2,754 | 2,754 | |
Impaired financing receivable, including deteriorated loans purchased, related allowance | 3,082 | 3,153 | |
Restructured and performing loans | $ 12,000 | $ 13,100 | |
[1] | * Included at June 30, 2016 and December 31, 2015 were $12.0 million and $13.1 million, respectively, in restructured and performing loans. |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses (Nonaccrual Status) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | $ 14,670 | $ 18,016 | |
Net loans held for investment | 1,511,365 | 1,528,600 | [1] |
Nonperforming [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 14,670 | 18,016 | |
Loans more than 90 days delinquent, still on accrual | 0 | 817 | |
Net loans held for investment | 14,670 | 18,833 | |
Nonperforming [Member] | Commercial and Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 480 | 1,053 | |
Nonperforming [Member] | Real estate - Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 72 | 110 | |
Nonperforming [Member] | Real Estate - Mortgage, 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 7,471 | 9,106 | |
Nonperforming [Member] | Real estate - Mortgage, Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 5,969 | 7,209 | |
Nonperforming [Member] | Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | $ 678 | $ 538 | |
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses (Impaired Loans Disclosure) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | $ 18,383 | $ 22,412 |
With an allowance recorded, Recorded Investment | 3,731 | 3,817 |
Impaired Financing Receivable, Recorded Investment | 22,114 | 26,229 |
With no related allowance recorded, Unpaid Principal Balance | 25,266 | 29,940 |
With an allowance recorded, Unpaid Principal Balance | 4,573 | 4,691 |
Impaired Financing Receivable, Unpaid Principal Balance | 29,839 | 34,631 |
Related Allowance | 328 | 399 |
PI loans with subsequent credit deterioration, Recorded Investment | 69,587 | 84,329 |
PI loans with subsequent credit deterioration, Unpaid Principal Balance | 68,546 | 84,536 |
PI loans with subsequent credit deterioration, Related Allowance | 2,754 | 2,754 |
Commercial and Agricultural [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 379 | 399 |
With an allowance recorded, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 379 | 399 |
With no related allowance recorded, Unpaid Principal Balance | 479 | 479 |
With an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 479 | 479 |
Related Allowance | 0 | 0 |
PI loans with subsequent credit deterioration, Recorded Investment | 4,607 | 4,995 |
PI loans with subsequent credit deterioration, Unpaid Principal Balance | 3,475 | 3,908 |
PI loans with subsequent credit deterioration, Related Allowance | 378 | 311 |
Real estate - Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 535 | 775 |
With an allowance recorded, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 535 | 775 |
With no related allowance recorded, Unpaid Principal Balance | 690 | 939 |
With an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 690 | 939 |
Related Allowance | 0 | 0 |
PI loans with subsequent credit deterioration, Recorded Investment | 6,779 | 7,323 |
PI loans with subsequent credit deterioration, Unpaid Principal Balance | 7,480 | 8,121 |
PI loans with subsequent credit deterioration, Related Allowance | 634 | 579 |
Real Estate - Mortgage, 1-4 Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 5,837 | 7,418 |
With an allowance recorded, Recorded Investment | 3,385 | 3,817 |
Impaired Financing Receivable, Recorded Investment | 9,222 | 11,235 |
With no related allowance recorded, Unpaid Principal Balance | 7,606 | 9,406 |
With an allowance recorded, Unpaid Principal Balance | 4,220 | 4,691 |
Impaired Financing Receivable, Unpaid Principal Balance | 11,826 | 14,097 |
Related Allowance | 285 | 399 |
PI loans with subsequent credit deterioration, Recorded Investment | 9,650 | 11,103 |
PI loans with subsequent credit deterioration, Unpaid Principal Balance | 9,683 | 11,327 |
PI loans with subsequent credit deterioration, Related Allowance | 325 | 384 |
Real estate - Mortgage, Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 11,632 | 13,820 |
With an allowance recorded, Recorded Investment | 346 | 0 |
Impaired Financing Receivable, Recorded Investment | 11,978 | 13,820 |
With no related allowance recorded, Unpaid Principal Balance | 16,491 | 19,116 |
With an allowance recorded, Unpaid Principal Balance | 353 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 16,844 | 19,116 |
Related Allowance | 43 | 0 |
PI loans with subsequent credit deterioration, Recorded Investment | 47,728 | 59,989 |
PI loans with subsequent credit deterioration, Unpaid Principal Balance | 47,383 | 60,582 |
PI loans with subsequent credit deterioration, Related Allowance | 1,375 | 1,356 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 0 | 0 |
With an allowance recorded, Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Recorded Investment | 0 | 0 |
With no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
With an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
PI loans with subsequent credit deterioration, Recorded Investment | 823 | 919 |
PI loans with subsequent credit deterioration, Unpaid Principal Balance | 525 | 598 |
PI loans with subsequent credit deterioration, Related Allowance | $ 42 | $ 124 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Impaired Loans, Average Recorded Investment and Interest Income Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable, Impaired [Line Items] | ||||
With no related allowance recorded, Average Recorded Investment | $ 18,664 | $ 24,430 | $ 19,683 | $ 23,595 |
With no related allowance recorded, Interest Income Recognized | 74 | 89 | 208 | 101 |
With an allowance recorded, Average Recorded Investment | 3,741 | 4,646 | 4,139 | 6,110 |
With an allowance recorded, Interest Income Recognized | 15 | 14 | 35 | 43 |
Impaired Financing Receivable, Average Recorded Investment | 22,405 | 29,076 | 23,822 | 29,705 |
Impaired Financing Receivable, Interest Income Recognized | 89 | 103 | 243 | 144 |
Commercial and Agricultural [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related allowance recorded, Average Recorded Investment | 384 | 435 | 390 | 457 |
With no related allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 |
With an allowance recorded, Average Recorded Investment | 0 | 0 | 0 | 0 |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 384 | 435 | 390 | 457 |
Impaired Financing Receivable, Interest Income Recognized | 0 | 0 | 0 | 0 |
Real estate - Construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related allowance recorded, Average Recorded Investment | 541 | 1,126 | 652 | 1,201 |
With no related allowance recorded, Interest Income Recognized | 7 | 8 | 21 | 9 |
With an allowance recorded, Average Recorded Investment | 0 | 0 | 0 | 0 |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 541 | 1,126 | 652 | 1,201 |
Impaired Financing Receivable, Interest Income Recognized | 7 | 8 | 21 | 9 |
Real Estate - Mortgage, 1-4 Family Residential [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related allowance recorded, Average Recorded Investment | 5,960 | 7,099 | 6,338 | 7,512 |
With no related allowance recorded, Interest Income Recognized | 21 | 24 | 48 | 27 |
With an allowance recorded, Average Recorded Investment | 3,394 | 4,646 | 3,841 | 4,195 |
With an allowance recorded, Interest Income Recognized | 11 | 14 | 31 | 17 |
Impaired Financing Receivable, Average Recorded Investment | 9,354 | 11,745 | 10,179 | 11,707 |
Impaired Financing Receivable, Interest Income Recognized | 32 | 38 | 79 | 44 |
Real estate - Mortgage, Commercial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related allowance recorded, Average Recorded Investment | 11,779 | 15,770 | 12,303 | 14,425 |
With no related allowance recorded, Interest Income Recognized | 46 | 57 | 139 | 65 |
With an allowance recorded, Average Recorded Investment | 347 | 0 | 298 | 1,915 |
With an allowance recorded, Interest Income Recognized | 4 | 0 | 4 | 26 |
Impaired Financing Receivable, Average Recorded Investment | 12,126 | 15,770 | 12,601 | 16,340 |
Impaired Financing Receivable, Interest Income Recognized | 50 | 57 | 143 | 91 |
Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no related allowance recorded, Average Recorded Investment | 0 | 0 | 0 | 0 |
With no related allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 |
With an allowance recorded, Average Recorded Investment | 0 | 0 | 0 | 0 |
With an allowance recorded, Interest Income Recognized | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses (Granite Purchased Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable [Line Items] | |||||||
Total Loans | $ 1,525,070 | $ 1,543,795 | [1] | ||||
Granite Corp [Member] | |||||||
Financing Receivable [Line Items] | |||||||
Purchased Impaired | 72,598 | $ 84,627 | 87,564 | $ 102,115 | $ 109,262 | $ 122,842 | |
Purchased Contractual | 16,869 | 18,153 | |||||
Total Loans | 89,467 | 105,717 | |||||
Unpaid Principal Balance | 88,869 | 106,466 | |||||
Granite Corp [Member] | Commercial and Agricultural [Member] | |||||||
Financing Receivable [Line Items] | |||||||
Purchased Impaired | 4,607 | 4,995 | |||||
Purchased Contractual | 114 | 238 | |||||
Total Loans | 4,721 | 5,233 | |||||
Unpaid Principal Balance | 3,589 | 4,149 | |||||
Granite Corp [Member] | Real estate - construction [Member] | |||||||
Financing Receivable [Line Items] | |||||||
Purchased Impaired | 7,035 | 7,744 | |||||
Purchased Contractual | 0 | 0 | |||||
Total Loans | 7,035 | 7,744 | |||||
Unpaid Principal Balance | 7,763 | 8,579 | |||||
Granite Corp [Member] | Real estate - mortgage, 1-4 family residential [Member] | |||||||
Financing Receivable [Line Items] | |||||||
Purchased Impaired | 12,405 | 13,917 | |||||
Purchased Contractual | 16,755 | 17,915 | |||||
Total Loans | 29,160 | 31,832 | |||||
Unpaid Principal Balance | 29,609 | 32,558 | |||||
Granite Corp [Member] | Real estate - mortgage, commercial [Member] | |||||||
Financing Receivable [Line Items] | |||||||
Purchased Impaired | 47,728 | 59,989 | |||||
Purchased Contractual | 0 | 0 | |||||
Total Loans | 47,728 | 59,989 | |||||
Unpaid Principal Balance | 47,383 | 60,582 | |||||
Granite Corp [Member] | Consumer [Member] | |||||||
Financing Receivable [Line Items] | |||||||
Purchased Impaired | 823 | 919 | |||||
Purchased Contractual | 0 | 0 | |||||
Total Loans | 823 | 919 | |||||
Unpaid Principal Balance | $ 525 | $ 598 | |||||
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses (Purchased Loans with Deteriorated Credit Quality) (Details) - Granite Corp [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities [Roll Forward] | ||||||
Balance, beginning of period | $ 84,627 | $ 109,262 | $ 87,564 | $ 122,842 | ||
Accretion | (1,319) | (1,841) | (2,725) | (3,889) | ||
Payments received | (12,650) | (8,522) | (16,993) | (23,376) | ||
Foreclosed and transferred to OREO | (698) | (466) | (698) | (1,240) | ||
Subtotal before allowance | 72,598 | 102,115 | 72,598 | 102,115 | ||
Allowance for credit losses | $ (2,754) | $ (3,181) | ||||
Net carrying amount, end of period | 69,844 | 98,934 | ||||
Deteriorated Loans Acquired, Accretable Yield Movement Schedule [Roll Forward] | ||||||
Balance, beginning of period | 14,215 | 20,925 | 15,623 | 24,898 | ||
Accretion | (1,319) | (1,841) | (2,725) | (3,889) | ||
Increase (Decrease) in future accretion | (1) | 1,716 | (3) | (209) | ||
Subtotal before allowance | 14,215 | 20,925 | 15,623 | 24,898 | $ 12,895 | $ 20,800 |
Net carrying amount, end of period | $ 12,895 | $ 20,800 | $ 12,895 | $ 20,800 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses (Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Balance, beginning of period | $ 14,240 | $ 19,008 | $ 15,195 | [1] | $ 20,345 | |
Recovery of losses charged to continuing operations | 507 | (788) | (28) | (1,926) | ||
Charge-offs | (2,041) | (1,567) | (3,135) | (2,562) | ||
Recoveries | 999 | 1,336 | 1,673 | 2,132 | ||
Net charge-offs | (1,042) | (231) | (1,462) | (430) | ||
Balance, end of period | $ 13,705 | $ 17,989 | $ 13,705 | $ 17,989 | ||
Annualized net charge-offs during the period to average loans held for investment | 0.27% | 0.07% | 0.19% | 0.06% | ||
Annualized net charge-offs during the period to ALL | 30.58% | 5.15% | 21.45% | 4.82% | ||
Allowance for loan losses to loans held for investment | 0.90% | 1.24% | 0.90% | 1.24% | 0.98% | |
Continuing operations [Member] | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Recovery of losses charged to continuing operations | $ 507 | $ (788) | $ (28) | $ (1,926) | ||
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses (Allowance for Loan Losses, by Segment Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 14,240 | $ 19,008 | $ 15,195 | $ 20,345 |
Charge-offs | (2,041) | (1,567) | (3,135) | (2,562) |
Recoveries | 999 | 1,336 | 1,673 | 2,132 |
Provision (recovery of provision) | 507 | (788) | (28) | (1,926) |
Balance, end of period | 13,705 | 17,989 | 13,705 | 17,989 |
Commercial and Agricultural [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 2,044 | 3,398 | 2,402 | 3,915 |
Charge-offs | 61 | (257) | (98) | (306) |
Recoveries | (32) | 428 | 221 | 649 |
Provision (recovery of provision) | (1,006) | (857) | (1,458) | (1,546) |
Balance, end of period | 1,067 | 2,712 | 1,067 | 2,712 |
Real estate - Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 1,296 | 3,120 | 1,769 | 3,163 |
Charge-offs | (9) | (4) | (9) | (85) |
Recoveries | 174 | 179 | 310 | 375 |
Provision (recovery of provision) | 725 | (1,088) | 116 | (1,246) |
Balance, end of period | 2,186 | 2,207 | 2,186 | 2,207 |
Real Estate - Mortgage, 1-4 Family Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 4,375 | 5,623 | 5,141 | 5,847 |
Charge-offs | (610) | (251) | (674) | (376) |
Recoveries | 247 | 171 | 377 | 309 |
Provision (recovery of provision) | 54 | (26) | (778) | (263) |
Balance, end of period | 4,066 | 5,517 | 4,066 | 5,517 |
Real estate - Mortgage, Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 2,543 | 3,152 | 2,328 | 4,179 |
Charge-offs | (195) | (261) | (195) | (268) |
Recoveries | 385 | 328 | 425 | 386 |
Provision (recovery of provision) | (725) | 87 | (550) | (991) |
Balance, end of period | 2,008 | 3,306 | 2,008 | 3,306 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 3,982 | 3,715 | 3,555 | 3,241 |
Charge-offs | (1,288) | (794) | (2,159) | (1,527) |
Recoveries | 225 | 230 | 340 | 413 |
Provision (recovery of provision) | 1,459 | 1,096 | 2,642 | 2,120 |
Balance, end of period | $ 4,378 | $ 4,247 | $ 4,378 | $ 4,247 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses (Evaluation for Impairment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL, individually evaluated for impairment | $ 328 | $ 399 | |||||
ALL, collectively evaluated for impairment | 10,623 | 12,042 | |||||
ALL, PI loans with no credit deterioration | 0 | 0 | |||||
ALL evaluated for impairment | 13,705 | $ 14,240 | 15,195 | $ 17,989 | $ 19,008 | $ 20,345 | |
Loans held for investment, Individually evaluated for impairment | 22,114 | 26,229 | |||||
Loans held for investment, Collectively evaluated for impairment | 1,430,358 | 1,430,002 | |||||
Loans held for investment, PI loans with no credit deterioration | 3,011 | 3,235 | |||||
Loans held for investment | 1,525,070 | 1,543,795 | [1] | ||||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL evaluated for impairment | 2,754 | 2,754 | |||||
Loans held for investment | 69,587 | 84,329 | |||||
Commercial and Agricultural [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL, individually evaluated for impairment | 0 | 0 | |||||
ALL, collectively evaluated for impairment | 756 | 2,091 | |||||
ALL, PI loans with no credit deterioration | 0 | 0 | |||||
ALL evaluated for impairment | 1,067 | 2,044 | 2,402 | 2,712 | 3,398 | 3,915 | |
Loans held for investment, Individually evaluated for impairment | 379 | 399 | |||||
Loans held for investment, Collectively evaluated for impairment | 141,216 | 146,912 | |||||
Loans held for investment, PI loans with no credit deterioration | 0 | 0 | |||||
Loans held for investment | 146,202 | 152,306 | |||||
Commercial and Agricultural [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL evaluated for impairment | 311 | 311 | |||||
Loans held for investment | 4,607 | 4,995 | |||||
Real estate - Construction [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL, individually evaluated for impairment | 0 | 0 | |||||
ALL, collectively evaluated for impairment | 1,607 | 1,190 | |||||
ALL, PI loans with no credit deterioration | 0 | 0 | |||||
ALL evaluated for impairment | 2,186 | 1,296 | 1,769 | 2,207 | 3,120 | 3,163 | |
Loans held for investment, Individually evaluated for impairment | 535 | 775 | |||||
Loans held for investment, Collectively evaluated for impairment | 106,414 | 98,483 | |||||
Loans held for investment, PI loans with no credit deterioration | 256 | 421 | |||||
Loans held for investment | 113,984 | 107,002 | |||||
Real estate - Construction [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL evaluated for impairment | 579 | 579 | |||||
Loans held for investment | 6,779 | 7,323 | |||||
Real Estate - Mortgage, 1-4 Family Residential [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL, individually evaluated for impairment | 285 | 399 | |||||
ALL, collectively evaluated for impairment | 3,397 | 4,358 | |||||
ALL, PI loans with no credit deterioration | 0 | 0 | |||||
ALL evaluated for impairment | 4,066 | 4,375 | 5,141 | 5,517 | 5,623 | 5,847 | |
Loans held for investment, Individually evaluated for impairment | 9,222 | 11,235 | |||||
Loans held for investment, Collectively evaluated for impairment | 635,194 | 662,402 | |||||
Loans held for investment, PI loans with no credit deterioration | 2,755 | 2,814 | |||||
Loans held for investment | 656,821 | 687,554 | |||||
Real Estate - Mortgage, 1-4 Family Residential [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL evaluated for impairment | 384 | 384 | |||||
Loans held for investment | 9,650 | 11,103 | |||||
Real estate - Mortgage, Commercial [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL, individually evaluated for impairment | 43 | 0 | |||||
ALL, collectively evaluated for impairment | 609 | 972 | |||||
ALL, PI loans with no credit deterioration | 0 | 0 | |||||
ALL evaluated for impairment | 2,008 | 2,543 | 2,328 | 3,306 | 3,152 | 4,179 | |
Loans held for investment, Individually evaluated for impairment | 11,978 | 13,820 | |||||
Loans held for investment, Collectively evaluated for impairment | 425,990 | 415,304 | |||||
Loans held for investment, PI loans with no credit deterioration | 0 | 0 | |||||
Loans held for investment | 485,696 | 489,113 | |||||
Real estate - Mortgage, Commercial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL evaluated for impairment | 1,356 | 1,356 | |||||
Loans held for investment | 47,728 | 59,989 | |||||
Consumer [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL, individually evaluated for impairment | 0 | 0 | |||||
ALL, collectively evaluated for impairment | 4,254 | 3,431 | |||||
ALL, PI loans with no credit deterioration | 0 | 0 | |||||
ALL evaluated for impairment | 4,378 | $ 3,982 | 3,555 | $ 4,247 | $ 3,715 | $ 3,241 | |
Loans held for investment, Individually evaluated for impairment | 0 | 0 | |||||
Loans held for investment, Collectively evaluated for impairment | 121,544 | 106,901 | |||||
Loans held for investment, PI loans with no credit deterioration | 0 | 0 | |||||
Loans held for investment | 122,367 | 107,820 | |||||
Consumer [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||
ALL evaluated for impairment | 124 | 124 | |||||
Loans held for investment | $ 823 | $ 919 | |||||
[1] | Derived from audited consolidated financial statements |
Loans and Allowance for Loan 43
Loans and Allowance for Loan Losses (Troubled Debt Restructuring) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2016USD ($)loan | Jun. 30, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | loan | 2 | 2 | 4 | 2 |
Pre-modification outstanding recorded investment | $ 147 | $ 816 | $ 454 | $ 816 |
Post-modification outstanding recorded investment | $ 147 | $ 816 | $ 479 | $ 816 |
Commercial and Agricultural [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | loan | 0 | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate - Construction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | loan | 0 | 1 | 2 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 370 | $ 307 | $ 370 |
Post-modification outstanding recorded investment | $ 0 | $ 370 | $ 332 | $ 370 |
Real Estate - Mortgage, 1-4 Family Residential [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | loan | 1 | 1 | 1 | 1 |
Pre-modification outstanding recorded investment | $ 47 | $ 446 | $ 47 | $ 446 |
Post-modification outstanding recorded investment | $ 47 | $ 446 | $ 47 | $ 446 |
Real estate - Mortgage, Commercial [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | loan | 1 | 0 | 1 | 0 |
Pre-modification outstanding recorded investment | $ 100 | $ 0 | $ 100 | $ 0 |
Post-modification outstanding recorded investment | $ 100 | $ 0 | $ 100 | $ 0 |
Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | loan | 0 | 0 | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Other Real Estate Owned and P44
Other Real Estate Owned and Property Acquired in Settlement of Loans (Narrative) (Details) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2016USD ($)asset | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Repossessed Assets [Abstract] | |||||||
Decrease in total OREO and property acquired | $ (2,100) | ||||||
Total property acquired in settlement of loans | $ 14,436 | $ 16,583 | [1] | ||||
Percent of total nonperforming assets | 44.00% | 47.00% | |||||
Number of assets under contract for sale | asset | 4 | ||||||
Net carrying value of assets under contract for sale | $ 2,400 | ||||||
Mortgage loans in process of foreclosure | 1,400 | ||||||
Financing Receivable, Modifications [Line Items] | |||||||
Real estate acquired in settlement of loans | 14,191 | $ 13,845 | $ 16,251 | $ 19,717 | $ 20,833 | $ 20,122 | |
Residential Portfolio Segment [Member] | |||||||
Financing Receivable, Modifications [Line Items] | |||||||
Real estate acquired in settlement of loans | $ 3,400 | ||||||
[1] | Derived from audited consolidated financial statements |
Other Real Estate Owned and P45
Other Real Estate Owned and Property Acquired in Settlement of Loans (Real Estate Acquired in Settlement) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Repossessed Assets [Abstract] | |||||||
Real estate acquired in settlement of loans | $ 14,191 | $ 13,845 | $ 16,251 | $ 19,717 | $ 20,833 | $ 20,122 | |
Property acquired in settlement of loans | 245 | 332 | |||||
Total property acquired in settlement of loans | $ 14,436 | $ 16,583 | [1] | ||||
[1] | Derived from audited consolidated financial statements |
Other Real Estate Owned and P46
Other Real Estate Owned and Property Acquired in Settlement of Loans (Changes in Real Estate Acquired in Settlement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Real Estate Acquired Through Foreclosure [Roll Forward] | ||||
Real estate acquired in settlement of loans, beginning of period | $ 13,845 | $ 20,833 | $ 16,251 | $ 20,122 |
Plus: New real estate acquired in settlement of loans | 2,143 | 938 | 2,202 | 3,433 |
Plus: Real estate acquired in BOGC acquisition | 0 | 0 | ||
Less: Sales of real estate acquired in settlement of loans | (1,794) | (1,663) | (3,758) | (3,153) |
Less: Write-downs and net loss on sales charged to expense | (3) | (391) | (504) | (685) |
Real estate acquired in settlement of loans, end of period | $ 14,191 | $ 19,717 | $ 14,191 | $ 19,717 |
Earnings Per Share (EPS Calcula
Earnings Per Share (EPS Calculation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 3,892 | $ 2,523 | $ 7,806 | $ 5,042 |
Weighted average number of shares outstanding - basic (shares) | 24,294,424 | 24,202,012 | 24,293,214 | 24,192,744 |
Weighted average number of shares outstanding - diluted (shares) | 24,316,019 | 24,214,578 | 24,314,165 | 24,204,832 |
Net income per share - basic and diluted (in dollars per share) | $ 0.16 | $ 0.10 | $ 0.32 | $ 0.21 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 509,963 | 322,526 | 516,185 | 294,972 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 500,018 | 300,454 | 500,177 | 272,900 |
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (shares) | 9,945 | 22,072 | 16,008 | 22,072 |
Derivatives and Financial Ins49
Derivatives and Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($)swap | Mar. 31, 2014USD ($) | |
Derivative [Line Items] | ||||||
Number of interest rate swaps | swap | 2 | |||||
Derivatives not designated as hedging instruments [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) Recognized | $ 64,000 | $ (57,000) | $ 72,000 | $ 14,000 | ||
Mortgage loan rate lock commitments [Member] | Derivatives not designated as hedging instruments [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) Recognized | 3,000 | 4,000 | 4,000 | (3,000) | ||
Mortgage loan forward sales [Member] | Derivatives not designated as hedging instruments [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) Recognized | 61,000 | (61,000) | 68,000 | 17,000 | ||
FHLB advances [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 40,000,000 | |||||
FHLB advances [Member] | Interest Rate Swap [Member] | Derivatives designated as hedging instruments [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (Loss) Recognized | $ (137,000) | $ 262,000 | $ (686,000) | $ (59,000) | ||
FHLB advances [Member] | Interest Rate Swap 1 [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 20,000,000 | |||||
FHLB advances [Member] | Interest Rate Swap 2 [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 20,000,000 |
Fair Values of Assets and Lia50
Fair Values of Assets and Liabilities (Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | $ 377,646 | $ 390,434 | [1] |
U.S. Government-sponsored agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 2,008 | ||
Residential mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 270,995 | 278,107 | |
Residential mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 28,984 | 33,577 | |
Commercial mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 22,167 | 21,612 | |
Commercial mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 18,081 | 17,575 | |
Corporate notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 37,419 | 37,555 | |
Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Level 1 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | 0 | ||
Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 377,646 | 390,434 | |
Level 2 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | (1,847) | ||
Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Level 3 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | 0 | ||
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 377,646 | 390,433 | |
Mortgage servicing rights | 2,812 | 2,231 | |
Total assets at fair value | 378,611 | 391,909 | |
Recurring [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | (1,847) | (755) | |
Recurring [Member] | U.S. Government-sponsored agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 2,008 | |
Recurring [Member] | Residential mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 270,995 | 278,107 | |
Recurring [Member] | Residential mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 28,984 | 33,577 | |
Recurring [Member] | Commercial mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 22,167 | 21,611 | |
Recurring [Member] | Commercial mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 18,081 | 17,575 | |
Recurring [Member] | Corporate notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 37,419 | 37,555 | |
Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Mortgage servicing rights | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | U.S. Government-sponsored agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Residential mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Residential mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Commercial mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Commercial mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 1 [Member] | Corporate notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 377,646 | 390,433 | |
Mortgage servicing rights | 0 | 0 | |
Total assets at fair value | 375,799 | 389,678 | |
Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | (1,847) | (755) | |
Recurring [Member] | Level 2 [Member] | U.S. Government-sponsored agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 2,008 | |
Recurring [Member] | Level 2 [Member] | Residential mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 270,995 | 278,107 | |
Recurring [Member] | Level 2 [Member] | Residential mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 28,984 | 33,577 | |
Recurring [Member] | Level 2 [Member] | Commercial mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 22,167 | 21,611 | |
Recurring [Member] | Level 2 [Member] | Commercial mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 18,081 | 17,575 | |
Recurring [Member] | Level 2 [Member] | Corporate notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 37,419 | 37,555 | |
Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Mortgage servicing rights | 2,812 | 2,231 | |
Total assets at fair value | 2,812 | 2,231 | |
Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Interest rate swaps | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | U.S. Government-sponsored agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Residential mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Residential mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Commercial mortgage-backed securities - GSE [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Commercial mortgage-backed securities - Private [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | 0 | 0 | |
Recurring [Member] | Level 3 [Member] | Corporate notes [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Total | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements |
Fair Values of Assets and Lia51
Fair Values of Assets and Liabilities (Unobservable Inputs Reconciliations) (Details) - Recurring [Member] - Level 3 [Member] - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance, beginning of period | $ 2,654 | $ 1,896 | $ 2,231 | $ 1,726 |
Total gains or losses (realized/unrealized) included in earnings, gross | 364 | 256 | 957 | 556 |
Less amortization | (206) | (140) | (376) | (270) |
Balance, end of period | $ 2,812 | $ 2,012 | $ 2,812 | $ 2,012 |
Fair Values of Assets and Lia52
Fair Values of Assets and Liabilities (Measured on Nonrecurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans, net | $ 2,597 | $ 3,418 |
Other real estate owned | 6,756 | 10,630 |
Total assets at fair value from continuing operations | 9,353 | 14,048 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets at fair value from continuing operations | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 0 | 0 |
Other real estate owned | 0 | 0 |
Total assets at fair value from continuing operations | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 2,597 | 3,418 |
Other real estate owned | 6,756 | 10,630 |
Total assets at fair value from continuing operations | $ 9,353 | $ 14,048 |
Fair Values of Assets and Lia53
Fair Values of Assets and Liabilities (Quantitative Information about Level 3 Fair Value Measurements) (Details) - Level 3 [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Discounted Appraisal [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Impaired loans, net | $ 2,597 | $ 3,418 |
Other real estate owned | $ 6,756 | $ 10,630 |
Discounted Appraisal [Member] | Impaired loans [Member] | Lower range [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Collateral discounts | 1.00% | 1.00% |
Discounted Appraisal [Member] | Impaired loans [Member] | Upper range [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Collateral discounts | 30.00% | 30.00% |
Discounted Appraisal [Member] | Other real estate owned [Member] | Lower range [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Collateral discounts | 1.00% | 1.00% |
Discounted Appraisal [Member] | Other real estate owned [Member] | Upper range [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Collateral discounts | 30.00% | 30.00% |
Discounted Cash Flows [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Mortgage servicing rights | $ 2,812 | $ 2,231 |
Discounted Cash Flows [Member] | Mortgage servicing rights [Member] | Lower range [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Prepayment rate | 10.00% | 10.00% |
Discount rate | 6.00% | 6.00% |
Discounted Cash Flows [Member] | Mortgage servicing rights [Member] | Upper range [Member] | ||
Fair Value Inputs, Quantitative Information [Line Items] | ||
Prepayment rate | 25.00% | 25.00% |
Discount rate | 10.00% | 10.00% |
Fair Values of Assets and Lia54
Fair Values of Assets and Liabilities (Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet [Line Items] | |||
Investment securities: Available-for-sale | $ 377,646 | $ 390,434 | [1] |
Investment securities: Held-to-maturity | 142,217 | 145,185 | [1] |
Level 1 [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Cash and cash equivalents | 53,572 | 39,175 | |
Investment securities: Available-for-sale | 0 | 0 | |
Investment securities: Held-to-maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans held for investment, net | 0 | 0 | |
Accrued interest receivable | 7 | 0 | |
Deposits | 0 | 0 | |
Retail repurchase agreements | 0 | 0 | |
Federal Home Loan Bank advances | 0 | 0 | |
Long-term notes payable | 0 | 0 | |
Junior subordinated debentures | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Level 1 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | 0 | ||
Level 1 [Member] | Interest Rate Locks and Forward Loan Sales Commitments [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | 0 | ||
Level 2 [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities: Available-for-sale | 377,646 | 390,434 | |
Investment securities: Held-to-maturity | 142,217 | 145,184 | |
Loans held for sale | 4,524 | 5,403 | |
Loans held for investment, net | 0 | 0 | |
Accrued interest receivable | 1,548 | 1,630 | |
Deposits | 1,918,660 | 1,945,691 | |
Retail repurchase agreements | 12,761 | 7,219 | |
Federal Home Loan Bank advances | 67,321 | 95,781 | |
Long-term notes payable | 0 | 0 | |
Junior subordinated debentures | 0 | 0 | |
Accrued interest payable | 335 | 349 | |
Level 2 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | (1,847) | ||
Level 2 [Member] | Interest Rate Locks and Forward Loan Sales Commitments [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | (755) | ||
Level 3 [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities: Available-for-sale | 0 | 0 | |
Investment securities: Held-to-maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans held for investment, net | 1,524,449 | 1,513,226 | |
Accrued interest receivable | 3,646 | 3,675 | |
Deposits | 0 | 0 | |
Retail repurchase agreements | 0 | 0 | |
Federal Home Loan Bank advances | 0 | 0 | |
Long-term notes payable | 5,454 | 5,415 | |
Junior subordinated debentures | 31,502 | 32,536 | |
Accrued interest payable | 18 | 18 | |
Level 3 [Member] | Interest Rate Swap [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | 0 | ||
Level 3 [Member] | Interest Rate Locks and Forward Loan Sales Commitments [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | 0 | ||
Carrying Value [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Cash and cash equivalents | 53,572 | 39,175 | |
Investment securities: Available-for-sale | 377,646 | 390,434 | |
Investment securities: Held-to-maturity | 139,813 | 147,967 | |
Loans held for sale | 4,524 | 5,403 | |
Loans held for investment, net | 1,511,365 | 1,528,600 | |
Accrued interest receivable | 5,201 | 5,305 | |
Deposits | 1,916,481 | 1,947,537 | |
Retail repurchase agreements | 12,761 | 7,219 | |
Federal Home Loan Bank advances | 65,153 | 93,681 | |
Long-term notes payable | 5,454 | 5,415 | |
Junior subordinated debentures | 56,702 | 56,702 | |
Accrued interest payable | 353 | 367 | |
Carrying Value [Member] | Interest Rate Swap [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | (1,847) | ||
Carrying Value [Member] | Interest Rate Locks and Forward Loan Sales Commitments [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | (755) | ||
Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Cash and cash equivalents | 53,572 | 39,175 | |
Investment securities: Available-for-sale | 377,646 | 390,434 | |
Investment securities: Held-to-maturity | 142,217 | 145,184 | |
Loans held for sale | 4,524 | 5,403 | |
Loans held for investment, net | 1,524,449 | 1,513,226 | |
Accrued interest receivable | 5,201 | 5,305 | |
Deposits | 1,918,660 | 1,945,691 | |
Retail repurchase agreements | 12,761 | 7,219 | |
Federal Home Loan Bank advances | 67,321 | 95,781 | |
Long-term notes payable | 5,454 | 5,415 | |
Junior subordinated debentures | 31,502 | 32,536 | |
Accrued interest payable | 353 | 367 | |
Estimated Fair Value [Member] | Interest Rate Swap [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | $ (1,847) | ||
Estimated Fair Value [Member] | Interest Rate Locks and Forward Loan Sales Commitments [Member] | |||
Fair Value, Balance Sheet [Line Items] | |||
Interest rate swaps / Interest rate locks and forward loan sale commitments | $ (755) | ||
[1] | Derived from audited consolidated financial statements |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Total [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance January 1, 2016 | $ (10,739) | $ (7,475) |
Other comprehensive income (loss) before reclassifications | 6,245 | (2,578) |
Amounts reclassified from accumulated other comprehensive income | 4 | 4 |
Net current period other comprehensive income (loss) | 6,249 | (2,574) |
Ending balance June 30, 2016 | (4,490) | (10,049) |
Unrealized Gains (Losses) on Available-For-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance January 1, 2016 | (5,176) | (3,017) |
Other comprehensive income (loss) before reclassifications | 6,989 | (2,515) |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current period other comprehensive income (loss) | 6,989 | (2,515) |
Ending balance June 30, 2016 | 1,813 | (5,532) |
Interest Rate Swaps [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance January 1, 2016 | (466) | (324) |
Other comprehensive income (loss) before reclassifications | (690) | (63) |
Amounts reclassified from accumulated other comprehensive income | 4 | 4 |
Net current period other comprehensive income (loss) | (686) | (59) |
Ending balance June 30, 2016 | (1,152) | (383) |
Defined Benefit Plan Items [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance January 1, 2016 | (5,097) | (4,134) |
Other comprehensive income (loss) before reclassifications | (54) | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current period other comprehensive income (loss) | (54) | 0 |
Ending balance June 30, 2016 | $ (5,151) | $ (4,134) |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Income tax expense | $ 2,291 | $ 1,419 | $ 4,617 | $ 2,837 |
Total, net of tax | (3,892) | (2,523) | (7,806) | (5,042) |
Amount Reclassified from AOCI [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total reclassifications for the period | 2 | 2 | 4 | 4 |
Interest Rate Swaps [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total reclassifications for the period | (4) | (4) | ||
Interest Rate Swaps [Member] | Amount Reclassified from AOCI [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Total, net of tax | 2 | 2 | 4 | 4 |
Interest Rate Swaps [Member] | Amount Reclassified from AOCI [Member] | Interest Rate Swap [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other expense | 3 | 3 | 6 | 6 |
Income tax expense | $ (1) | $ (1) | $ (2) | $ (2) |
Repurchase Agreement Borrowin57
Repurchase Agreement Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase agreements | $ 12,761 | $ 7,219 | [1] |
Available unpledged securities | 181,000 | 213,600 | |
Residential mortgage-backed securities - GSE [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase agreements | 12,761 | 7,219 | |
Market value of collateral | 15,900 | 17,100 | |
Residential mortgage-backed securities - GSE [Member] | Overnight and Continuous [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase agreements | 12,761 | 7,219 | |
Residential mortgage-backed securities - GSE [Member] | 1-90 Days [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase agreements | 0 | 0 | |
Residential mortgage-backed securities - GSE [Member] | Over 90 Days [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase agreements | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements |