Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 01, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LBAI | ||
Entity Registrant Name | LAKELAND BANCORP INC | ||
Entity Central Index Key | 846901 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 37,896,357 | ||
Entity Public Float | $377,000,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash | $102,549 | $94,205 |
Interest-bearing deposits due from banks | 6,767 | 8,516 |
Total cash and cash equivalents | 109,316 | 102,721 |
Investment securities, available for sale, at fair value | 457,449 | 431,106 |
Investment securities, held to maturity, at amortized cost with fair value of $109,030 in 2014 and $100,394 in 2013 | 107,976 | 101,744 |
Federal Home Loan Bank and other membership stock, at cost | 9,846 | 7,938 |
Loans held for sale | 592 | 1,206 |
Loans, net of deferred costs (fees) | 2,653,826 | 2,469,016 |
Less: allowance for loan and lease losses | 30,684 | 29,821 |
Net loans | 2,623,142 | 2,439,195 |
Premises and equipment-net | 35,675 | 37,148 |
Accrued interest receivable | 8,896 | 8,603 |
Goodwill | 109,974 | 109,974 |
Other identifiable intangible assets | 1,960 | 2,424 |
Bank owned life insurance | 57,476 | 55,968 |
Other assets | 16,023 | 19,764 |
TOTAL ASSETS | 3,538,325 | 3,317,791 |
Deposits: | ||
Noninterest bearing | 646,052 | 600,652 |
Savings and interest-bearing transaction accounts | 1,864,805 | 1,812,467 |
Time deposits under $100 thousand | 165,625 | 180,859 |
Time deposits $100 thousand and over | 114,337 | 115,227 |
Total deposits | 2,790,819 | 2,709,205 |
Federal funds purchased and securities sold under agreements to repurchase | 108,935 | 81,991 |
Other borrowings | 202,498 | 119,000 |
Subordinated debentures | 41,238 | 41,238 |
Other liabilities | 15,397 | 14,933 |
TOTAL LIABILITIES | 3,158,887 | 2,966,367 |
STOCKHOLDERS' EQUITY | ||
Common stock, no par value; authorized 70,000,000 shares; issued shares, 37,910,840 at December 31, 2014 and 37,873,800 at December 31, 2013 | 384,731 | 364,637 |
Accumulated Deficit | -6,816 | -8,538 |
Accumulated other comprehensive gain (loss) | 1,523 | -4,675 |
TOTAL STOCKHOLDERS' EQUITY | 379,438 | 351,424 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3,538,325 | $3,317,791 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity; fair value | $109,030 | $100,394 |
Common stock, par value | $0 | $0 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 37,910,840 | 37,873,800 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME | |||
Loans, leases and fees | $110,587 | $104,329 | $100,513 |
Federal funds sold and interest-bearing deposits with banks | 71 | 93 | 51 |
Taxable investment securities and other | 10,040 | 7,985 | 8,574 |
Tax-exempt investment securities | 1,805 | 1,792 | 1,821 |
TOTAL INTEREST INCOME | 122,503 | 114,199 | 110,959 |
INTEREST EXPENSE | |||
Deposits | 5,064 | 6,089 | 8,344 |
Federal funds purchased and securities sold under agreements to repurchase | 78 | 39 | 79 |
Other borrowings | 3,795 | 3,529 | 7,023 |
TOTAL INTEREST EXPENSE | 8,937 | 9,657 | 15,446 |
NET INTEREST INCOME | 113,566 | 104,542 | 95,513 |
Provision for loan and lease losses | 5,865 | 9,343 | 14,907 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN AND LEASE LOSSES | 107,701 | 95,199 | 80,606 |
NONINTEREST INCOME | |||
Service charges on deposit accounts | 10,523 | 10,837 | 10,504 |
Commissions and fees | 4,634 | 4,585 | 4,491 |
Gain on sales and calls of investment securities, net | 2 | 839 | 1,049 |
Gain on debt extinguishment | 1,197 | ||
Income on bank owned life insurance | 1,453 | 1,410 | 1,344 |
Other income | 1,110 | 2,093 | 1,517 |
TOTAL NONINTEREST INCOME | 17,722 | 20,961 | 18,905 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 45,167 | 41,871 | 38,586 |
Net occupancy expense | 8,865 | 8,074 | 7,089 |
Furniture and equipment | 6,605 | 6,181 | 4,751 |
Stationery, supplies and postage | 1,403 | 1,482 | 1,415 |
Marketing expense | 2,025 | 2,088 | 2,034 |
Core deposit intangible amortization | 464 | 288 | |
FDIC insurance expense | 2,019 | 2,014 | 2,163 |
Legal expense | 945 | 1,032 | 1,236 |
Other real estate and repossessed asset expense | 234 | 24 | 99 |
Long-term debt prepayment fee | 1,209 | 782 | |
Merger related expenses | 2,834 | ||
Other expenses | 11,408 | 11,644 | 9,518 |
TOTAL NONINTEREST EXPENSE | 79,135 | 78,741 | 67,673 |
Income before provision for income taxes | 46,288 | 37,419 | 31,838 |
Provision for income taxes | 15,159 | 12,450 | 10,096 |
NET INCOME | 31,129 | 24,969 | 21,742 |
Dividends on Preferred Stock and Accretion | 620 | ||
Net Income Available to Common Stockholders | $31,129 | $24,969 | $21,122 |
PER SHARE OF COMMON STOCK: | |||
Basic earnings | $0.82 | $0.71 | $0.72 |
Diluted earnings | $0.82 | $0.71 | $0.72 |
Cash dividends | $0.29 | $0.27 | $0.24 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $31,129 | $24,969 | $21,742 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Unrealized securities gains (losses) during period | 6,180 | -8,690 | 1,728 |
Less: reclassification for gains included in net income | 2 | 509 | 682 |
Change in pension liability, net | 20 | 588 | 19 |
Other Comprehensive Income (Loss) | 6,198 | -8,611 | 1,065 |
TOTAL COMPREHENSIVE INCOME | $37,327 | $16,358 | $22,807 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Series A Preferred Stock [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
BALANCE at Dec. 31, 2011 | $259,783 | $270,044 | $18,480 | ($26,061) | ($5,551) | $2,871 |
Net Income | 21,742 | 21,742 | ||||
Other comprehensive income (loss), net of tax | 1,065 | 1,065 | ||||
Preferred dividends | -100 | -100 | ||||
Accretion of discount | 520 | -520 | ||||
Stock based compensation | 746 | 746 | ||||
Redemption of preferred stock | -19,000 | -19,000 | ||||
Warrant repurchase | -2,800 | -2,800 | ||||
Stock dividend | 12,345 | -12,345 | ||||
Stock issuance, net of expenses | 25,040 | 25,040 | ||||
Issuance of restricted stock awards | -1,153 | 1,153 | ||||
Issuance of stock to dividend reinvestment and stock purchase plan | 160 | -432 | -1,088 | 1,680 | ||
Exercise of stock options, net of excess tax benefits | 4 | 4 | ||||
Cash dividends, common stock | -5,773 | -5,773 | ||||
BALANCE at Dec. 31, 2012 | 280,867 | 303,794 | -24,145 | -2,718 | 3,936 | |
Net Income | 24,969 | 24,969 | ||||
Other comprehensive income (loss), net of tax | -8,611 | -8,611 | ||||
Stock based compensation | 895 | 895 | ||||
Issuance of restricted stock awards | -1,301 | 1,301 | ||||
Issuance of stock for acquisition | 57,419 | 57,419 | ||||
Issuance of stock options for acquisition | 1,500 | 1,500 | ||||
Issuance of stock to dividend reinvestment and stock purchase plan | 186 | 458 | -1,210 | 938 | ||
Exercise of stock options, net of excess tax benefits | 2,351 | 1,872 | 479 | |||
Cash dividends, common stock | -8,152 | -8,152 | ||||
BALANCE at Dec. 31, 2013 | 351,424 | 364,637 | -8,538 | -4,675 | ||
Net Income | 31,129 | 31,129 | ||||
Other comprehensive income (loss), net of tax | 6,198 | 6,198 | ||||
Stock based compensation | 1,390 | 1,390 | ||||
Stock dividend | 18,266 | -18,266 | ||||
Issuance of stock to dividend reinvestment and stock purchase plan | 77 | 382 | -305 | |||
Retirement of restricted stock | -104 | -104 | ||||
Exercise of stock options, net of excess tax benefits | 160 | 160 | ||||
Cash dividends, common stock | -10,836 | -10,836 | ||||
BALANCE at Dec. 31, 2014 | $379,438 | $384,731 | ($6,816) | $1,523 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $31,129 | $24,969 | $21,742 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of premiums, discounts and deferred loan fees and costs | 3,456 | 4,787 | 6,125 |
Depreciation and amortization | 3,454 | 3,625 | 3,067 |
Amortization of intangible assets | 464 | 288 | |
Provision for loan and lease losses | 5,865 | 9,343 | 14,907 |
Stock based compensation | 1,390 | 895 | 746 |
Loans originated for sale | -23,386 | -34,718 | |
Proceeds from sales of loans | 24,573 | 36,804 | |
Gains on securities | -2 | -839 | -1,049 |
Gains on sales of loans held for sale | -573 | -760 | |
Gains on debt extinguishment | -1,197 | ||
Gains on leases | -471 | ||
Gains on other real estate and other repossessed assets | -258 | -934 | -47 |
Gain on sale of premises and equipment | -65 | -60 | -201 |
Deferred tax provision | -34 | 164 | 576 |
(Increase) decrease in other assets | -879 | 7,366 | 2,107 |
Increase in other liabilities | 495 | 995 | 1,089 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 45,629 | 50,728 | 48,591 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net cash acquired in acquisition | 74,316 | ||
Proceeds from repayments on and maturity of securities: | |||
Available for sale | 55,810 | 70,779 | 117,130 |
Held to maturity | 22,508 | 22,952 | 26,070 |
Proceeds from sales of securities: | |||
Available for sale | 15,719 | 64,020 | 97,824 |
Held to maturity | 1,301 | ||
Purchase of securities: | |||
Available for sale | -90,630 | -187,452 | -144,652 |
Held to maturity | -30,556 | -19,603 | -54,510 |
Net (increase) decrease in Federal Home Loan Bank and other membership bank stock | -1,908 | -2,063 | 2,951 |
Net increase in loans and leases | -191,910 | -91,201 | -120,870 |
Proceeds from sales of bank premises and equipment | 118 | 463 | 749 |
Capital expenditures | -2,492 | -2,786 | -8,978 |
Proceeds from sales of other real estate and other repossessed assets | 1,484 | 4,509 | 1,768 |
NET CASH USED IN INVESTING ACTIVITIES | -220,556 | -66,066 | -82,518 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net increase in deposits | 81,783 | 26,540 | 121,344 |
Increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | 26,944 | -35,298 | 45,158 |
Proceeds from other borrowings | 168,498 | 50,000 | 280,000 |
Repayments of other borrowings | -85,000 | -16,000 | -350,000 |
Issuance of stock to Dividend Reinvestment and Stock Purchase Plan | 77 | 186 | 160 |
Proceeds on issuance of stock, net | 25,040 | ||
Redemption of subordinated debentures, net | -9,113 | -25,000 | |
Redemption of preferred stock and common stock warrant | -21,800 | ||
Exercise of stock options | 90 | 2,209 | |
Retirement of Restricted stock | -104 | ||
Excess tax benefits | 70 | 142 | 4 |
Dividends paid on preferred stock | -219 | ||
Dividends paid on common stock | -10,836 | -8,152 | -5,773 |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 181,522 | 10,514 | 68,914 |
Net increase (decrease) in cash and cash equivalents | 6,595 | -4,824 | 34,987 |
Cash and cash equivalents, beginning of year | 102,721 | 107,545 | 72,558 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $109,316 | $102,721 | $107,545 |
Summary_of_Accounting_Policies
Summary of Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Accounting Policies | NOTE 1—SUMMARY OF ACCOUNTING POLICIES | ||||||||||||
Lakeland Bancorp, Inc. (the Company) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, Lakeland Bank (Lakeland). Lakeland operates under a state bank charter and provides full banking services and, as a state bank, is subject to regulation by the New Jersey Department of Banking and Insurance. Lakeland generates commercial, mortgage and consumer loans and receives deposits from customers located primarily in Northern and Central New Jersey. Lakeland also provides non-deposit products, such as securities brokerage services, including mutual funds and variable annuities. | |||||||||||||
Lakeland operates as a commercial bank offering a wide variety of commercial loans and leases and, to a lesser degree, consumer credits. Its primary strategic aim is to establish a reputation and market presence as the “small and middle market business bank” in its principal markets. Lakeland funds its loans primarily by offering time, savings and money market, and demand deposit accounts to both commercial enterprises and individuals. Additionally, it originates residential mortgage loans, and services such loans which are owned by other investors. Lakeland also has an equipment finance division which provides equipment lease financing primarily to small and medium sized business clients and an asset based lending department which specializes in utilizing particular assets to fund the working capital needs of borrowers. | |||||||||||||
The Company and Lakeland are subject to regulations of certain state and federal agencies and, accordingly, are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, Lakeland’s business is particularly susceptible to being affected by state and federal legislation and regulations. | |||||||||||||
Basis of Financial Statement Presentation | |||||||||||||
The accounting and reporting policies of the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America (U.S. GAAP) and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company, Lakeland, Lakeland NJ Investment Corp., Lakeland Investment Corp., Lakeland Equity, Inc., Lakeland Preferred Equity, Inc. and Sullivan Financial Services, Inc. All intercompany balances and transactions have been eliminated. | |||||||||||||
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates implicit in these financial statements are as follows. | |||||||||||||
The principal estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan and lease losses, the valuation of the Company’s investment securities portfolio, the realizability of the Company’s deferred tax asset and the analysis of goodwill and intangible impairment. The policies regarding these estimates are discussed below. | |||||||||||||
The Company’s operating segments are components of its enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer. All of the Company’s financial services activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, commercial lending is dependent upon the ability of Lakeland to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. The situation is also similar for consumer and residential mortgage lending. Moreover, the Company primarily operates in one market area, Northern and Central New Jersey. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. Accordingly, the Company has determined that it has one operating segment and thus one reporting segment. | |||||||||||||
Investment Securities | |||||||||||||
Investment securities are classified in one of three categories: held to maturity, trading, or available for sale. Investments in debt securities, for which management has both the ability and intent to hold to maturity, are carried at cost, adjusted for the amortization of premiums and accretion of discounts computed by the effective interest method. Investments in debt and equity securities, which management believes may be sold prior to maturity due to changes in interest rates, prepayment risk, liquidity requirements, or other factors, are classified as available for sale. Net unrealized gains and losses for such securities, net of tax effect, are reported as other comprehensive income (loss) and excluded from the determination of net income. The Company does not engage in securities trading. Gains or losses on disposition of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Losses are recorded through the statement of income when the impairment is considered other-than-temporary, even if a decision to sell has not been made. | |||||||||||||
The Company evaluates its portfolio for impairment each quarter. In estimating other-than-temporary losses, the Company considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company is more likely than not to sell the security before recovery of its cost basis. If a security has been impaired for more than twelve months, and the impairment is deemed other-than-temporary, a write down will occur in that quarter. If a loss is deemed to be other-than-temporary, it is recognized as a realized loss in the income statement with the security assigned a new cost basis. | |||||||||||||
If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired, but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings in gain (loss) on securities, with the other portion of the loss recognized in other comprehensive income. If a determination is made that an equity security is other-than-temporarily impaired, the unrealized loss will be recognized as an other-than-temporary impairment charge in non-interest income as a component of gain (loss) on investment securities. | |||||||||||||
Loans and Leases and Allowance for Loan and Lease Losses | |||||||||||||
Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal and are net of unearned discount, unearned loan fees and an allowance for loan and lease losses. | |||||||||||||
Interest income is accrued as earned on a simple interest basis. All unamortized fees and costs related to the loan are amortized over the life of the loan using the interest method. Accrual of interest is discontinued on a loan or lease when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of interest and principal is doubtful. When a loan or lease is placed on such non-accrual status, all accumulated accrued interest receivable is reversed out of current period income. | |||||||||||||
Commercial loans and leases are placed on a non-accrual status with all accrued interest and unpaid interest reversed if (a) because of the deterioration in the financial position of the borrower they are maintained on a cash basis (which means payments are applied when and as received rather than on a regularly scheduled basis), (b) payment in full of interest or principal is not expected, or (c) principal and interest have been in default for a period of 90 days or more unless the obligation is both well-secured and in process of collection. Residential mortgage loans are placed on non-accrual status at the time principal and interest have been in default for a period of 90 days or more, except where there exists sufficient collateral to cover the defaulted principal and interest payments, and management’s knowledge of the specific circumstances warrant continued accrual. Consumer loans are generally placed on non-accrual and reviewed for charge-off when principal and interest payments are four months in arrears unless the obligations are well-secured and in the process of collection. Interest thereafter on such charged-off consumer loans is taken into income when received only after full recovery of principal. As a general rule, a non-accrual asset may be restored to accrual status when none of its principal or interest is due and unpaid, satisfactory payments have been received for a sustained period (usually six months), or when it otherwise becomes well-secured and in the process of collection. | |||||||||||||
Loans and leases are considered impaired when, based on current information and events, it is probable that Lakeland will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate, or as a practical expedient, Lakeland may measure impairment based on a loan’s observable market price, or the fair value of the collateral, less estimated costs to sell, if the loan is collateral-dependent. Regardless of the measurement method, Lakeland measures impairment based on the fair value of the collateral when it is determined that foreclosure is probable. Most of Lakeland’s impaired loans are collateral-dependent. Lakeland groups impaired commercial loans under $500,000 into a homogeneous pool and collectively evaluates them. Interest received on impaired loans and leases may be recorded as interest income. However, if management is not reasonably certain that an impaired loan and lease will be repaid in full, or if a specific time frame to resolve full collection cannot yet be reasonably determined, all payments received are recorded as reductions of principal. | |||||||||||||
Loans are classified as troubled debt restructured loans in cases where borrowers experience financial difficulties and Lakeland makes certain concessionary modifications to contractual terms. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, an extended moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. Nonetheless, restructured loans are classified as impaired loans. | |||||||||||||
Once an obligation has been restructured because of credit problems, it continues to be considered restructured until paid in full or if all of the following conditions are met: (1) the financial problems of the borrower have been cured; (2) the obligation is returned to a market rate and term; and (3) there has been performance for the longer of the next annual reporting period or six consecutive months. If an obligation has been restructured, it will continue to be classified as impaired until the obligation is fully repaid or until it meets all of the following criteria: 1) the borrower is no longer experiencing financial difficulties, 2) the rate is not less than the rate provided for similar credit risk, 3) other terms are no less favorable than similar new debt and 4) no concessions were granted (any prior principal forgiveness is deemed to be an ongoing concession). | |||||||||||||
The allowance for loan and lease losses is established through a provision for loan and lease losses charged to expense. Loan principal considered to be uncollectible by management is charged against the allowance for loan and lease losses. The allowance is an amount that management believes will be adequate to absorb losses on existing loans and leases that may become uncollectible based upon an evaluation of known and inherent risks in the loan and lease portfolio. The evaluation takes into consideration such factors as changes in the nature and size of the loan and lease portfolio, overall portfolio quality, specific problem loans and leases, and current economic conditions which may affect the borrowers’ ability to pay. The evaluation also analyzes historical losses by loan and lease category, and considers the resulting loss rates when determining the reserves on current loan and lease total amounts. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each historical loss factor accordingly. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first full or partial loan charge-off), and is determined based upon a study of our past loss experience by loan segment. Loss reserves for specified problem loans and leases are also detailed. All of the factors considered in the analysis of the adequacy of the allowance for loan and lease losses may be subject to change. To the extent actual outcomes differ from management estimates, additional provisions for loan and lease losses may be required that would adversely impact earnings in future periods. | |||||||||||||
The determination of the adequacy of the allowance for loan and lease losses and the periodic provisioning for estimated losses included in the consolidated financial statements is the responsibility of management and the Board of Directors. The evaluation process is undertaken on a quarterly basis. | |||||||||||||
Methodology employed for assessing the adequacy of the allowance consists of the following criteria: | |||||||||||||
• | The establishment of reserve amounts for all specifically identified classified loans and leases that have been designated as requiring attention by Lakeland. | ||||||||||||
• | The establishment of reserves for pools of homogeneous types of loans and leases not subject to specific review, including impaired loans under $500,000, leases, 1 – 4 family residential mortgages, and consumer loans. | ||||||||||||
• | The establishment of reserve amounts for the non-classified loans and leases in each portfolio based upon the historical average loss experience as modified by management’s assessment of the loss emergence period for these portfolios and management’s evaluation of key factors. | ||||||||||||
• | Lakeland also maintains an unallocated component in its allowance for loan and lease losses. Management believes that the unallocated component is warranted for inherent factors that cannot be practically assigned to individual loss categories, such as the periodic updating of appraisals on impaired loans, as well as periodic updating of commercial loan credit risk ratings by loan officers and Lakeland’s internal credit review process. | ||||||||||||
Consideration is given to the results of ongoing credit quality monitoring processes, the adequacy and expertise of Lakeland’s lending staff, underwriting policies, loss histories, delinquency trends, and the cyclical nature of economic and business conditions. Since many of Lakeland’s loans depend on the sufficiency of collateral as a secondary source of repayment, any adverse trend in the real estate markets could affect underlying values available to protect Lakeland from loss. | |||||||||||||
A loan that management designates as impaired is reviewed for charge-off when it is placed on non-accrual status with a resulting charge-off if the loan is not secured by collateral having sufficient liquidation value to repay the loan and all outstanding interest owed, and the loan is not in the process of collection. Charge-offs are recommended by the Chief Credit Officer and approved by the Board on a monthly basis. | |||||||||||||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans are specifically identified and accounted for in accordance with U.S. GAAP which requires that an entity engaged in mortgage banking activities classify the retained mortgage-backed security or other interest, which resulted from the securitization of a mortgage loan held for sale, based upon its ability and intent to sell or hold these investments. As of December 31, 2014 and 2013, Lakeland had mortgages classified as held for sale totaling $592,000 and $1.2 million, respectively. | |||||||||||||
Bank Premises and Equipment | |||||||||||||
Bank premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation expense is computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the terms of the related leases. | |||||||||||||
Other Real Estate Owned and Other Repossessed Assets | |||||||||||||
Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure (or deed-in-lieu-of-foreclosure), are carried at fair value less estimated disposal costs of the acquired property. Costs relating to holding the assets are charged to expense. An allowance for OREO or other repossessed assets is established, through charges to expense, to maintain properties at fair value less estimated costs to sell. Operating results of OREO and other repossessed assets, including rental income and operating expenses, are included in other expenses. | |||||||||||||
Mortgage Servicing | |||||||||||||
Lakeland performs various servicing functions on loans owned by others. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received for these services. At December 31, 2014 and 2013, Lakeland was servicing approximately $33.9 million and $37.8 million, respectively, of loans for others. | |||||||||||||
Lakeland originates certain mortgages under a definitive plan to sell or securitize those loans and service the loans owned by the investor. Upon the transfer of the mortgage loans in a sale or a securitization, Lakeland records the servicing assets retained. Lakeland records mortgage servicing rights and the loans based on relative fair values at the date of origination and evaluates the mortgage servicing rights for impairment at each reporting period. Lakeland also originates loans that it sells to other banks and investors and does not retain the servicing rights. | |||||||||||||
Mortgage Servicing Rights | |||||||||||||
When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. As of December 31, 2014 and 2013, Lakeland had originated mortgage servicing rights of $217,000 and $274,000, respectively. | |||||||||||||
Under the amortization measurement method, Lakeland subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as commissions and fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. | |||||||||||||
Transfers of Financial Assets | |||||||||||||
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company-put presumptively beyond the reach of the transferor and its creditors even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |||||||||||||
Customer Derivatives | |||||||||||||
Lakeland enters into interest rate swaps (“swaps”) with loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in offsetting terms to swaps that Lakeland enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities. Lakeland’s swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest income. Further discussion of Lakeland’s financial derivatives is set forth in Note 18 to the Consolidated Financial Statements. | |||||||||||||
The credit risk associated with derivatives executed with customers is similar as that involved in extending loans and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer. The positions of customer derivatives are recorded at fair value and changes in value are included in non-interest income on the consolidated statement of income. | |||||||||||||
Restrictions On Cash And Due From Banks | |||||||||||||
A portion of Lakeland’s cash on hand and on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. | |||||||||||||
Earnings Per Share | |||||||||||||
Earnings per share is calculated on the basis of the weighted average number of common shares outstanding during the year. Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Unless otherwise indicated, all weighted average, actual shares or per share information in the financial statements have been adjusted retroactively for the effect of stock dividends. | |||||||||||||
Employee Benefit Plans | |||||||||||||
The Company has certain employee benefit plans covering substantially all employees. The Company accrues such costs as incurred. | |||||||||||||
We recognize the overfunded or underfunded status of pension and postretirement benefit plans in accordance with U.S. GAAP. Actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations are recognized as a component of Accumulated Other Comprehensive Income, net of tax effects, until they are amortized as a component of net periodic benefit cost. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company’s shareholders approved the 2009 Equity Compensation Program, which authorizes the granting of incentive stock options, supplemental stock options, restricted shares and restricted stock units to employees of the Company, including those employees serving as officers and directors of the Company. The plan authorizes the issuance of up to 2.3 million shares in connection with options and awards granted under the 2009 program. The Company’s stock option grants under this plan expire 10 years from the date of grant, ninety days after termination of service other than for cause, or one year after death or disability of the grantee. In 2014, the Company began issuing restricted stock units (RSUs), some of which have performance conditions attached to them. The Company generally issues shares for option exercises from its treasury stock using the cost method or issues new shares if no treasury shares are available. | |||||||||||||
The Company established the 2000 Equity Compensation Program which authorizes the granting of incentive stock options, supplemental stock options and restricted stock to employees of the Company, which includes those employees serving as officers and directors of the Company. The plan authorized 2,613,185 shares of common stock of the Company. All of the Company’s stock option grants expire 10 years from the date of grant, thirty days after termination of service other than for cause, or one year after death or disability of the grantee. The Company has no option or restricted stock awards with market or performance conditions attached to them under the 2000 Equity Compensation Program. No further awards will be granted from the 2000 program. | |||||||||||||
Statement Of Cash Flows | |||||||||||||
Cash and cash equivalents are defined as cash on hand, cash items in the process of collection, amounts due from banks and federal funds sold with an original maturity of three months or less. The following shows supplemental non-cash investing and financing activities for the periods presented: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Transfer of loans and leases receivable to other real estate owned and other repossessed assets | $ | 1,867 | $ | 3,565 | $ | 1,068 | |||||||
Cash paid for income taxes | 15,067 | 12,051 | 9,382 | ||||||||||
Cash paid for interest | 8,882 | 10,804 | 16,334 | ||||||||||
Acquisition of Somerset Hills Bancorp: | |||||||||||||
Non-cash assets acquired: | |||||||||||||
Investment securities available for sale | — | 1,777 | — | ||||||||||
Investment securities held for maturity | — | 8,686 | — | ||||||||||
Loans, including loans held for sale | — | 246,459 | — | ||||||||||
Goodwill and other intangible assets, net | — | 25,574 | — | ||||||||||
Other assets | — | 15,653 | — | ||||||||||
Total non-cash assets acquired | — | 298,149 | |||||||||||
Liabilities assumed: | |||||||||||||
Deposits | — | 311,801 | — | ||||||||||
Other liabilities | — | 1,745 | — | ||||||||||
Total liabilities assumed | — | 313,546 | — | ||||||||||
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options | — | 58,919 | — | ||||||||||
Comprehensive Income (Loss) | |||||||||||||
The Company reports comprehensive income (loss) in addition to net income (loss) from operations. Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. | |||||||||||||
Goodwill and Other Identifiable Intangible Assets | |||||||||||||
The Company has goodwill of $110.0 million at December 31, 2014 and December 31, 2013, which includes $22.9 million from the Somerset Hills acquisition and $87.1 million from prior acquisitions. The Company recorded $2.7 million in Core Deposit Intangible from the Somerset Hills Acquisition in 2013. Core deposit intangible was $2.0 million on December 31, 2014 compared to $2.4 million on December 31, 2013. The Company recorded $464,000 in core deposit amortization in 2014 compared to $288,000 in 2013. | |||||||||||||
The Company reviews goodwill for impairment annually as of November 30 or when circumstances indicate a potential for impairment at the reporting unit level. U.S. GAAP requires at least an annual review of the fair value of a Reporting Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If this qualitative test determines it is unlikely (less than 50% probability) the carrying value of the Reporting Unit is less than its fair value, then the company does not have to perform a Step One impairment test. If the probability is greater than 50%, a Step One goodwill impairment test is required. The Step One test compares the fair value of each reporting unit to the carrying value of its net assets, including goodwill. If the fair value is less than carrying value, the Step Two test is required. The Company has determined that it has one reporting unit, Community Banking. | |||||||||||||
The Company performed a qualitative analysis to determine whether “the weight of evidence, the significance of all identified events and circumstances” indicated a greater than 50% likelihood existed that the carrying value of the Reporting Unit exceeded its fair value and if a Step One Test would be required. The Company identified nine qualitative assessments that are relative to the banking industry and to the Company. These factors included macroeconomic factors, banking industry conditions, banking merger and acquisition trends, Lakeland’s historical performance, the Company’s stock price, the expected performance of Lakeland, the change of control premium of the Company versus its peers and other miscellaneous factors. After reviewing and weighting these factors, the Company, as well as a third party adviser, determined as of November 30, 2014 that there was a less than 50% probability that the fair value of the Company was less than its carrying amount. Therefore, no Step One test was required. | |||||||||||||
Bank Owned Life Insurance | |||||||||||||
Lakeland invests in bank owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by Lakeland on a chosen group of employees. Lakeland is owner and beneficiary of the policies. At December 31, 2014 and 2013, Lakeland had $57.5 million and $56.0 million, respectively, in BOLI. Income earned on BOLI was $1.5 million, $1.4 million and $1.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. BOLI is accounted for using the cash surrender value method and is recorded at its realizable value. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes under the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. The principal types of differences between assets and liabilities for financial statement and tax return purposes are allowance for loan and lease losses, core deposit intangibles, deferred loan fees and deferred compensation. | |||||||||||||
The Company evaluates tax positions that may be uncertain using a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. Additional information regarding the Company’s uncertain tax positions is set forth in Note 9 below. | |||||||||||||
Variable Interest Entities | |||||||||||||
Management has determined that Lakeland Bancorp Capital Trust II and Lakeland Bancorp Capital Trust IV (collectively, “the Trusts”) qualify as variable interest entities. The Trusts issued mandatorily redeemable preferred stock to investors and loaned the proceeds to the Company. The Trusts hold, as their sole asset, subordinated debentures issued by the Company. The Company is not considered the primary beneficiary of the Trusts, therefore the Trusts are not consolidated in the Company’s financial statements. | |||||||||||||
The Company’s maximum exposure to the Trusts is $40 million at December 31, 2014 which is the Company’s liability to the Trusts and includes the Company’s investment in the Trusts. | |||||||||||||
The Federal Reserve has issued guidance on the regulatory capital treatment for the trust preferred securities issued by the Trusts. The rule retains the current maximum percentage of total capital permitted for trust preferred securities at 25%, but enacts other changes to the rules governing trust preferred securities that affect their use as part of the collection of entities known as “restricted core capital elements.” The rule allows bank holding companies to continue to count trust preferred securities as Tier 1 Capital. The Company’s capital ratios continue to be categorized as “well-capitalized” under the regulatory framework for prompt corrective action. Under the Collins Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, any new issuance of trust preferred securities by the Company would not be eligible as regulatory capital. | |||||||||||||
New Accounting Pronouncements | |||||||||||||
In January 2015, the Financial Accounting Standards Board (FASB) issued an accounting standards update regarding the elimination of the concept of the extraordinary items from the statement of operations. The purpose of this update is to simplify the statement of operations presentation and to align the US GAAP income statement more closely with international accounting standards. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update is not expected to have a material impact on the Company’s financial statements. | |||||||||||||
In June 2014, the FASB issued an accounting standards update regarding share –based payments that requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This update is effective for interim and annual periods beginning after December 15, 2015. The amendments can be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. Early adoption is permitted. The Company has determined that adoption of this update is not expected to have a material impact on its accounting and disclosures. | |||||||||||||
In June 2014, the FASB issued an accounting standards update that aligns the accounting for repurchase to maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. This update is effective for the first interim or annual period beginning after December 15, 2014. In addition the disclosure of certain transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods after March 15, 2015. Early adoption is prohibited. The Company does not engage in repurchase to maturity transactions, and therefore has determined that the adoption of this update is not expected to have a material impact on the Company’s financial results. | |||||||||||||
In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. This guidance is effective for the Company beginning January 1, 2017. The Company is still evaluating the potential impact on the Company’s financial statements. | |||||||||||||
In January 2014, the FASB issued an accounting standards update to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. The adoption of this update is not expected to have a material impact on the Company’s financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Acquisitions | NOTE 2—ACQUISITIONS | ||||||||||||
On May 31, 2013, the Company completed its acquisition of Somerset Hills Bancorp (“Somerset Hills”), a bank holding company headquartered in Bernardsville, New Jersey. Somerset Hills was the parent of Somerset Hills Bank, Sullivan Financial Services, Inc., and Somerset Hills Investment Holdings, Inc. This acquisition enables the Company to expand into Somerset and Union counties, and broaden its presence in Morris County. Effective as of the close of business on May 31, 2013, Somerset Hills Bancorp merged into the Company, and Somerset Hills Bank merged into Lakeland Bank. The Merger Agreement provided that the shareholders of Somerset Hills Bancorp would receive, at their election, for each outstanding share of Somerset Hills Bancorp common stock that they own at the effective time of the merger, either 1.256 shares (adjusted for the 2014 stock dividend) of Lakeland Bancorp common stock or $12.00 in cash, subject to proration as described in the Merger Agreement, so that 90% of the aggregate merger consideration was shares of Lakeland Bancorp common stock and 10% was cash. Lakeland Bancorp issued an aggregate of 6,083,783 shares (adjusted for the 2014 stock dividend) of its common stock in the merger, and also assumed outstanding Somerset Hills Bancorp stock options (which were converted into options to purchase Lakeland Bancorp common stock). Lakeland Bancorp paid $6.5 million in cash in the transaction. | |||||||||||||
The acquisition was accounted for under the acquisition method of accounting and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values as of the acquisition date. Somerset Hills’ assets were recorded at their preliminary estimated fair values as of May 31, 2013 and Somerset Hills’ results of operations have been included in the Company’s Consolidated Statements of Income since that date. | |||||||||||||
The assets acquired and liabilities assumed in the acquisition were recorded at their estimated fair values based on management’s best estimates using information available at the date of the acquisition, including the use of a third party valuation specialist. The fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the acquisition. The following table summarizes the estimated fair value of the acquired assets and liabilities (in thousands). | |||||||||||||
Consideration Paid | |||||||||||||
Lakeland Bancorp stock issued | $ | 57,419 | |||||||||||
Cash Payment | 6,460 | ||||||||||||
Fair value of Somerset Hills stock options converted to Lakeland Bancorp stock options | 1,500 | ||||||||||||
Total Consideration Paid | $ | 65,379 | |||||||||||
Recognized amounts of identifiable assets and liabilities assumed at fair value | |||||||||||||
Cash and cash equivalents | $ | 80,776 | |||||||||||
Securities available for sale | 1,777 | ||||||||||||
Securities held to maturity | 8,686 | ||||||||||||
Federal Home Loan Bank stock | 493 | ||||||||||||
Loans and leases | 243,927 | ||||||||||||
Loans held for sale | 2,532 | ||||||||||||
Premises and equipment | 5,214 | ||||||||||||
Identifiable intangible assets | 2,712 | ||||||||||||
Accrued interest receivable and other assets | 9,946 | ||||||||||||
Deposits | (311,801 | ) | |||||||||||
Other liabilities | (1,745 | ) | |||||||||||
Total identifiable assets | $ | 42,517 | |||||||||||
Goodwill | $ | 22,862 | |||||||||||
Loans acquired in the Somerset Hills acquisition were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310, and there was no carryover related allowance for loan and lease losses. The fair values of loans acquired from Somerset Hills were estimated using cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses and the rate of prepayments. Projected cash flows were then discounted to present value using a risk-adjusted market rate for similar loans. | |||||||||||||
The following is a summary of the loans acquired in the Somerset Hills acquisition as of the closing date. | |||||||||||||
(in thousands) | Acquired | Acquired | Total | ||||||||||
Credit | Non- | Acquired | |||||||||||
Impaired | Credit | Loans | |||||||||||
Loans | Impaired | ||||||||||||
Loans | |||||||||||||
Contractually required principal and interest at acquisition | $ | 4,507 | $ | 352,148 | $ | 356,655 | |||||||
Contractual cash flows not expected to be collected (non-accretable difference) | 2,541 | — | 2,541 | ||||||||||
Expected cash flows at acquisition | $ | 1,966 | $ | 352,148 | $ | 354,114 | |||||||
Interest component of expected cash flows (accretable difference) | 322 | 107,333 | 107,655 | ||||||||||
Fair value of acquired loans, including mortgages held for sale | $ | 1,644 | $ | 244,815 | $ | 246,459 | |||||||
The core deposit intangible totaled $2.7 million and is being estimated over its estimated useful life of approximately 10 years using an accelerated method. The goodwill will be evaluated annually for impairment. The goodwill is not deductible for tax purposes. | |||||||||||||
The fair values of deposit liabilities with no stated maturities such as checking, money market and savings accounts, were assumed to equal the carrying amounts since these deposits are payable on demand. The fair values of certificates of deposits and IRAs represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit. | |||||||||||||
Direct costs related to the acquisition were expensed as incurred. During 2013, the Company incurred $2.8 million, of merger and acquisition integration-related expenses, which have been separately reflected in the Company’s Consolidated Statements of Income. | |||||||||||||
Core Deposit Intangible | |||||||||||||
As stated above, the Company recorded $2.7 million in core deposit intangible for the Somerset Hills acquisition. The Company has amortized $464,000 and $288,000 in core deposit intangible for the years ended December 31, 2014 and 2013, respectively. The estimated future amortization expense for each of the succeeding five years ended December 31 is as follows (dollars in thousands): | |||||||||||||
For the year ended: | |||||||||||||
2015 | 415 | ||||||||||||
2016 | 366 | ||||||||||||
2017 | 316 | ||||||||||||
2018 | 267 | ||||||||||||
2019 | 218 |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||
Investment Securities | NOTE 3—INVESTMENT SECURITIES | ||||||||||||||||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and the fair value of the Company’s available for sale and held to maturity securities are as follows: | |||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | 94,466 | $ | 261 | $ | (807 | ) | $ | 93,920 | $ | 72,828 | $ | — | $ | (2,663 | ) | $ | 70,165 | |||||||||||||||
Mortgage-backed securities, residential | 309,162 | 2,868 | (2,075 | ) | 309,955 | 310,088 | 1,752 | (7,338 | ) | 304,502 | |||||||||||||||||||||||
Mortgage-backed securities, multifamily | 4,973 | 3 | — | 4,976 | — | — | — | — | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 29,764 | 888 | (133 | ) | 30,519 | 36,482 | 914 | (523 | ) | 36,873 | |||||||||||||||||||||||
Other debt securities | 494 | 11 | — | 505 | 3,541 | 37 | (158 | ) | 3,420 | ||||||||||||||||||||||||
Equity securities | 16,196 | 1,589 | (211 | ) | 17,574 | 15,433 | 1,097 | (384 | ) | 16,146 | |||||||||||||||||||||||
$ | 455,055 | $ | 5,620 | $ | (3,226 | ) | $ | 457,449 | $ | 438,372 | $ | 3,800 | $ | (11,066 | ) | $ | 431,106 | ||||||||||||||||
HELD TO MATURITY | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
U.S. government agencies | $ | 20,477 | $ | 232 | $ | (84 | ) | $ | 20,625 | $ | 19,732 | $ | 3 | $ | (576 | ) | $ | 19,159 | |||||||||||||||
Mortgage-backed securities, residential | 42,309 | 645 | (385 | ) | 42,569 | 34,596 | 524 | (1,025 | ) | 34,095 | |||||||||||||||||||||||
Mortgage-backed securities, multifamily | 2,259 | — | (60 | ) | 2,199 | 2,355 | — | (166 | ) | 2,189 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 41,401 | 658 | (90 | ) | 41,969 | 43,521 | 495 | (770 | ) | 43,246 | |||||||||||||||||||||||
Other debt securities | 1,530 | 138 | — | 1,668 | 1,540 | 165 | — | 1,705 | |||||||||||||||||||||||||
$ | 107,976 | $ | 1,673 | $ | (619 | ) | $ | 109,030 | $ | 101,744 | $ | 1,187 | $ | (2,537 | ) | $ | 100,394 | ||||||||||||||||
The following table lists contractual maturities of investment securities classified as available for sale and held to maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 967 | $ | 975 | $ | 8,845 | $ | 8,897 | |||||||||||||||||||||||||
Due after one year through five years | 80,286 | 80,246 | 13,612 | 13,951 | |||||||||||||||||||||||||||||
Due after five years through ten years | 42,185 | 42,459 | 35,277 | 35,701 | |||||||||||||||||||||||||||||
Due after ten years | 1,286 | 1,264 | 5,674 | 5,713 | |||||||||||||||||||||||||||||
124,724 | 124,944 | 63,408 | 64,262 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 314,135 | 314,931 | 44,568 | 44,768 | |||||||||||||||||||||||||||||
Equity securities | 16,196 | 17,574 | — | — | |||||||||||||||||||||||||||||
Total securities | $ | 455,055 | $ | 457,449 | $ | 107,976 | $ | 109,030 | |||||||||||||||||||||||||
The following table shows proceeds from sales of securities, gross gains and gross losses on sales and calls of securities for the periods indicated: | |||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Sale proceeds | $ | 17,020 | $ | 64,020 | $ | 97,824 | |||||||||||||||||||||||||||
Gross gains | 346 | 893 | 1,364 | ||||||||||||||||||||||||||||||
Gross losses | (344 | ) | (54 | ) | (315 | ) | |||||||||||||||||||||||||||
The above sales in 2014 include sales of $1.4 million in held to maturity mortgage-backed securities of which the Company had already collected over 90% of the principal outstanding. The Company realized $73,000 in gains on sales of these securities. | |||||||||||||||||||||||||||||||||
Gains or losses on sales of securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. | |||||||||||||||||||||||||||||||||
Securities with a carrying value of approximately $356.1 million and $324.8 million at December 31, 2014 and 2013, respectively, were pledged to secure public deposits and for other purposes required by applicable laws and regulations. | |||||||||||||||||||||||||||||||||
The following table indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
December 31, 2014 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | Fair value | Unrealized | Fair value | Unrealized | Number of | Fair value | Unrealized | ||||||||||||||||||||||||||
Losses | Losses | securities | Losses | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
U.S. treasury and | $5,057 | $28 | $ | 46,135 | $ | 779 | 11 | $ | 51,192 | $ | 807 | ||||||||||||||||||||||
U.S. government agencies | |||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | 34,832 | 177 | 74,414 | 1,898 | 28 | 109,246 | 2,075 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,266 | 29 | 5,033 | 104 | 12 | 6,299 | 133 | ||||||||||||||||||||||||||
Equity securities | — | — | 4,819 | 211 | 2 | 4,819 | 211 | ||||||||||||||||||||||||||
$ | 41,155 | $ | 234 | $ | 130,401 | $ | 2,992 | 53 | $ | 171,556 | $ | 3,226 | |||||||||||||||||||||
HELD TO MATURITY | |||||||||||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | — | $ | 5,736 | $ | 84 | 1 | $ | 5,736 | $ | 84 | ||||||||||||||||||||
Mortgage-backed securities, residential | 6,236 | 50 | 17,557 | 335 | 8 | 23,793 | 385 | ||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | — | — | 2,199 | 60 | 2 | 2,199 | 60 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,290 | 7 | 4,206 | 83 | 13 | 5,496 | 90 | ||||||||||||||||||||||||||
$ | 7,526 | $ | 57 | $ | 29,698 | $ | 562 | 24 | $ | 37,224 | $ | 619 | |||||||||||||||||||||
December 31, 2013 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | Fair value | Unrealized | Fair value | Unrealized | Number of | Fair value | Unrealized | ||||||||||||||||||||||||||
Losses | Losses | securities | Losses | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | 70,165 | $ | 2,663 | $ | — | $ | — | 16 | $ | 70,165 | $ | 2,663 | ||||||||||||||||||||
Mortgage-backed securities, residential | 177,262 | 6,730 | 10,724 | 608 | 51 | 187,986 | 7,338 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 8,500 | 328 | 2,087 | 195 | 21 | 10,587 | 523 | ||||||||||||||||||||||||||
Other debt securities | — | — | 805 | 158 | 1 | 805 | 158 | ||||||||||||||||||||||||||
Equity securities | — | — | 10,215 | 384 | 3 | 10,215 | 384 | ||||||||||||||||||||||||||
$ | 255,927 | $ | 9,721 | $ | 23,831 | $ | 1,345 | 92 | $ | 279,758 | $ | 11,066 | |||||||||||||||||||||
HELD TO MATURITY | |||||||||||||||||||||||||||||||||
U.S. government agencies | $ | 14,153 | $ | 576 | $ | — | $ | — | 5 | $ | 14,153 | $ | 576 | ||||||||||||||||||||
Mortgage-backed securities, residential | 22,939 | 889 | 1,097 | 136 | 11 | 24,036 | 1,025 | ||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | 895 | 99 | 1,294 | 67 | 2 | 2,189 | 166 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 17,826 | 607 | 1,456 | 163 | 51 | 19,282 | 770 | ||||||||||||||||||||||||||
$ | 55,813 | $ | 2,171 | $ | 3,847 | $ | 366 | $ | 69 | $ | 59,660 | $ | 2,537 | ||||||||||||||||||||
Management has evaluated the securities in the above table and has concluded that none of the securities with unrealized losses has impairments that are other-than-temporary. Fair value below cost is solely due to interest rate movements and is deemed temporary. | |||||||||||||||||||||||||||||||||
Investment securities, including the mortgage backed securities and corporate securities, are evaluated on a periodic basis to determine if factors are identified that would require further analysis. In evaluating the Company’s securities, management considers the following items: | |||||||||||||||||||||||||||||||||
• | The Company’s ability and intent to hold the securities, including an evaluation of the need to sell the security to meet certain liquidity measures, or whether the Company has sufficient levels of cash to hold the identified security in order to recover the entire amortized cost of the security; | ||||||||||||||||||||||||||||||||
• | The financial condition of the underlying issuer; | ||||||||||||||||||||||||||||||||
• | The credit ratings of the underlying issuer and if any changes in the credit rating have occurred; | ||||||||||||||||||||||||||||||||
• | The length of time the security’s fair value has been less than amortized cost; and | ||||||||||||||||||||||||||||||||
• | Adverse conditions related to the security or its issuer if the issuer has failed to make scheduled payments or other factors. | ||||||||||||||||||||||||||||||||
If the above factors indicate the additional analysis is required, management will consider the results of discounted cash flow analysis. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, the equity securities include investments in other financial institutions for market appreciation purposes. These equities had a purchase price of $2.6 million and market value of $4.2 million as of December 31, 2014. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, equity securities also included $13.4 million in investment funds that do not have a quoted market price but use net asset value per share or its equivalent to measure fair value. | |||||||||||||||||||||||||||||||||
The funds include $2.9 million in funds that are primarily invested in community development loans that are guaranteed by the Small Business Administration (SBA). Because the funds are primarily guaranteed by the federal government there are minimal changes in market value between accounting periods. These funds can be redeemed within 60 days notice at the net asset value less unpaid management fees with the approval of the fund manager. As of December 31, 2014, the net amortized cost equaled the market value of the investment. There are no unfunded commitments related to this investment. | |||||||||||||||||||||||||||||||||
The funds also include $10.5 million in funds that are invested in government guaranteed loans, mortgage-backed securities, small business loans and other instruments supporting affordable housing and economic development. The Company may redeem these funds at the net asset value calculated at the end of the current business day less any unpaid management fees. As of December 31, 2014, the amortized cost of these securities was $10.6 million and the fair value was $10.5 million. There are no restrictions on redemptions for the holdings in these investments other than the notice required by the fund manager. There are no unfunded commitments related to this investment. |
Loans_and_Leases_and_Other_Rea
Loans and Leases and Other Real Estate | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Loans and Leases and Other Real Estate | NOTE 4—LOANS AND LEASES AND OTHER REAL ESTATE | ||||||||||||||||||||||||||||||||
The following sets forth the composition of Lakeland’s loan and lease portfolio for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 1,529,761 | $ | 1,389,861 | |||||||||||||||||||||||||||||
Commercial, industrial and other | 238,252 | 213,808 | |||||||||||||||||||||||||||||||
Leases | 54,749 | 41,332 | |||||||||||||||||||||||||||||||
Real estate-residential mortgage | 431,190 | 432,831 | |||||||||||||||||||||||||||||||
Real estate-construction | 64,020 | 53,119 | |||||||||||||||||||||||||||||||
Home equity and consumer | 337,642 | 339,338 | |||||||||||||||||||||||||||||||
Total loans and leases | 2,655,614 | 2,470,289 | |||||||||||||||||||||||||||||||
Less deferred fees | (1,788 | ) | (1,273 | ) | |||||||||||||||||||||||||||||
Loans and leases, net of deferred fees | $ | 2,653,826 | $ | 2,469,016 | |||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, Home Equity and Consumer loans included overdraft deposit balances of $791,000 and $590,000, respectively. At December 31, 2014 and December 31, 2013, Lakeland had $338.5 million and $263.1 million in residential loans pledged for potential borrowings at the Federal Home Loan Bank of New York (FHLB). | |||||||||||||||||||||||||||||||||
Purchased Credit-Impaired (“PCI”) loans, are loans acquired at a discount that is due, in part, to credit quality. In conjunction with the Somerset Hills acquisition, three loan relationships totaling $1.6 million were deemed to be PCI loans at May 31, 2013 (the “acquisition date”). PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., allowance for loan losses). For more information, see Note 2—Acquisitions. | |||||||||||||||||||||||||||||||||
Subsequent to the acquisition date, one PCI loan for $149,000 was paid in full in the first quarter of 2014. There was credit deterioration in the remaining two loans. One loan totaling $250,000 was charged off in the third quarter of 2014. The remaining loan relationship at a balance of $1.3 million is being evaluated for impairment with the remainder of the Company’s impaired loans. Lakeland recognized $109,000 and $46,000 of interest income on credit impaired loans for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Portfolio Segments | |||||||||||||||||||||||||||||||||
Lakeland currently manages its credit products and the respective exposure to credit losses (credit risk) by the following specific portfolio segments which are levels at which Lakeland develops and documents its systematic methodology to determine the allowance for loan and lease losses attributable to each respective portfolio segment. These segments are: | |||||||||||||||||||||||||||||||||
• | Commercial, secured by real estate—consists of commercial mortgage loans secured by owner occupied properties and non-owner occupied properties. The loans secured by owner occupied properties involve a variety of property types to conduct the borrower’s operations. The primary source of repayment for this type of loan is the cash flow from the business and is based upon the borrower’s financial health and the ability of the borrower and the business to repay. The loans secured by non-owner occupied properties involve investment properties for warehouse, retail, office space, etc., with a history of occupancy and cash flow. This commercial real estate category contains mortgage loans to the developers and owners of commercial real estate where the borrower intends to operate or sell the property at a profit and use the income stream or proceeds from the sale(s) to repay the loan. | ||||||||||||||||||||||||||||||||
• | Commercial, industrial and other—are loans made to provide funds for equipment and general corporate needs. Repayment of a loan primarily uses the funds obtained from the operation of the borrower’s business. Commercial loans also include lines of credit that are utilized to finance a borrower’s short-term credit needs and/or to finance a percentage of eligible receivables and inventory. | ||||||||||||||||||||||||||||||||
• | Leases— includes a small portfolio of equipment leases, which consists of leases primarily for essential equipment used by small to medium sized businesses. | ||||||||||||||||||||||||||||||||
• | Real estate—residential mortgage—contains permanent mortgage loans principally to consumers secured by residential real estate. Residential real estate loans are evaluated for the adequacy of repayment sources at the time of approval, based upon measures including credit scores, debt-to-income ratios, and collateral values. Loans may be either conforming or non-conforming. | ||||||||||||||||||||||||||||||||
• | Real estate—construction—construction loans, as defined, are intended to finance the construction of commercial properties and include loans for the acquisition and development of land. Construction loans represent a higher degree of risk than permanent real estate loans and may be affected by a variety of factors such as the borrower’s ability to control costs and adhere to time schedules and the risk that constructed units may not be absorbed by the market within the anticipated time frame or at the anticipated price. The loan commitment on these loans often includes an interest reserve that allows the lender to periodically advance loan funds to pay interest charges on the outstanding balance of the loan. | ||||||||||||||||||||||||||||||||
• | Home Equity and consumer—includes primarily home equity loans and lines, installment loans, personal lines of credit and automobile loans. The home equity category consists mainly of loans and revolving lines of credit to consumers which are secured by residential real estate. These loans are typically secured with second mortgages on the homes, although many are secured with first mortgages. Other consumer loans include installment loans used by customers to purchase automobiles, boats and recreational vehicles. | ||||||||||||||||||||||||||||||||
Non-accrual and Past Due Loans | |||||||||||||||||||||||||||||||||
The following schedule sets forth certain information regarding Lakeland’s non-accrual loans and leases, its other real estate owned and other repossessed assets, and accruing troubled debt restructurings (TDRs): | |||||||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 7,424 | $ | 7,697 | |||||||||||||||||||||||||||||
Commercial, industrial and other | 308 | 88 | |||||||||||||||||||||||||||||||
Leases | 88 | — | |||||||||||||||||||||||||||||||
Real estate—residential mortgage | 9,246 | 6,141 | |||||||||||||||||||||||||||||||
Real estate—construction | 188 | 831 | |||||||||||||||||||||||||||||||
Home equity and consumer | 3,415 | 2,175 | |||||||||||||||||||||||||||||||
Total non-accrual loans and leases | 20,669 | 16,932 | |||||||||||||||||||||||||||||||
Other real estate and other repossessed assets | 1,026 | 520 | |||||||||||||||||||||||||||||||
TOTAL NON-PERFORMING ASSETS | $ | 21,695 | $ | 17,452 | |||||||||||||||||||||||||||||
Troubled debt restructurings, still accruing | $ | 10,579 | $ | 10,289 | |||||||||||||||||||||||||||||
Non-accrual loans included $1.3 million and $2.3 million of troubled debt restructurings for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
An age analysis of past due loans, segregated by class of loans as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||||||
December 31, 2014 | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||
Past Due | Past Due | Than | Past Due | Loans | Investment greater | ||||||||||||||||||||||||||||
89 Days | and Leases | than 89 Days and | |||||||||||||||||||||||||||||||
still accruing | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 2,714 | $ | 2,999 | $ | 5,972 | $ | 11,685 | $ | 1,518,076 | $ | 1,529,761 | $ | — | |||||||||||||||||||
Commercial, industrial and other | 944 | 2 | 308 | 1,254 | 236,998 | 238,252 | — | ||||||||||||||||||||||||||
Leases | 108 | 24 | 88 | 220 | 54,529 | 54,749 | — | ||||||||||||||||||||||||||
Real estate—residential mortgage | 3,325 | 354 | 6,710 | 10,389 | 420,801 | 431,190 | — | ||||||||||||||||||||||||||
Real estate—construction | 224 | — | 188 | 412 | 63,608 | 64,020 | — | ||||||||||||||||||||||||||
Home equity and consumer | 1,583 | 598 | 2,951 | 5,132 | 332,510 | 337,642 | 66 | ||||||||||||||||||||||||||
$ | 8,898 | $ | 3,977 | $ | 16,217 | $ | 29,092 | $ | 2,626,522 | $ | 2,655,614 | $ | 66 | ||||||||||||||||||||
December 31, 2013 | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||
Past Due | Past Due | Than | Past Due | Loans | Investment greater | ||||||||||||||||||||||||||||
89 Days | and Leases | than 89 Days and | |||||||||||||||||||||||||||||||
still accruing | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 7,355 | $ | 5,438 | $ | 6,059 | $ | 18,852 | $ | 1,371,009 | $ | 1,389,861 | $ | 697 | |||||||||||||||||||
Commercial, industrial and other | 482 | 159 | 20 | 661 | 213,147 | 213,808 | — | ||||||||||||||||||||||||||
Leases | 77 | 179 | — | 256 | 41,076 | 41,332 | — | ||||||||||||||||||||||||||
Real estate—residential mortgage | 5,792 | 1,306 | 5,365 | 12,463 | 420,368 | 432,831 | 414 | ||||||||||||||||||||||||||
Real estate—construction | — | — | 831 | 831 | 52,288 | 53,119 | — | ||||||||||||||||||||||||||
Home equity and consumer | 1,776 | 533 | 2,884 | 5,193 | 334,145 | 339,338 | 886 | ||||||||||||||||||||||||||
$ | 15,482 | $ | 7,615 | $ | 15,159 | $ | 38,256 | $ | 2,432,033 | $ | 2,470,289 | $ | 1,997 | ||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
Lakeland’s policy regarding impaired loans is discussed in Note 1—Summary of Accounting Policies—Loans and Leases and Allowance for Loan and Lease Losses. The Company defines impaired loans as all non-accrual loans with recorded investments of $500,000 or greater. Impaired loans also includes all loans modified in troubled debt restructurings. | |||||||||||||||||||||||||||||||||
December 31, 2014 | Recorded | Contractual | Related | Interest | Average | ||||||||||||||||||||||||||||
Investment in | Unpaid | Allowance | Income | Investment in | |||||||||||||||||||||||||||||
Impaired loans | Principal | Recognized | Impaired loans | ||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Loans without related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 14,172 | $ | 15,520 | $ | — | $ | 436 | $ | 16,092 | |||||||||||||||||||||||
Commercial, industrial and other | 327 | 1,697 | — | 43 | 1,513 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 1,681 | 1,681 | — | — | 308 | ||||||||||||||||||||||||||||
Real estate-construction | 188 | 552 | — | — | 464 | ||||||||||||||||||||||||||||
Home equity and consumer | 741 | 741 | — | 7 | 153 | ||||||||||||||||||||||||||||
Loans with related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 5,666 | 5,818 | 634 | 156 | 3,858 | ||||||||||||||||||||||||||||
Commercial, industrial and other | 425 | 425 | 10 | 9 | 342 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 1,238 | 1,238 | 217 | 19 | 438 | ||||||||||||||||||||||||||||
Real estate-construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Home equity and consumer | 1,255 | 1,255 | 1,031 | 41 | 975 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 19,838 | $ | 21,338 | $ | 634 | $ | 592 | $ | 19,950 | |||||||||||||||||||||||
Commercial, industrial and other | 752 | 2,122 | 10 | 52 | 1,855 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate—residential mortgage | 2,919 | 2,919 | 217 | 19 | 746 | ||||||||||||||||||||||||||||
Real estate-construction | 188 | 552 | — | — | 464 | ||||||||||||||||||||||||||||
Home equity and consumer | 1,996 | 1,996 | 1,031 | 48 | 1,128 | ||||||||||||||||||||||||||||
$ | 25,693 | $ | 28,927 | $ | 1,892 | $ | 711 | $ | 24,143 | ||||||||||||||||||||||||
December 31, 2013 | Recorded | Contractual | Related | Interest | Average | ||||||||||||||||||||||||||||
Investment in | Unpaid | Allowance | Income | Investment in | |||||||||||||||||||||||||||||
Impaired loans | Principal | Recognized | Impaired loans | ||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Loans without related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 8,223 | $ | 9,656 | $ | — | $ | 198 | $ | 8,853 | |||||||||||||||||||||||
Commercial, industrial and other | 4,020 | 4,118 | — | 189 | 4,333 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 617 | 672 | — | — | 622 | ||||||||||||||||||||||||||||
Real estate-construction | 501 | 2,411 | — | — | 2,111 | ||||||||||||||||||||||||||||
Home equity and consumer | 17 | 17 | — | 1 | 17 | ||||||||||||||||||||||||||||
Loans with related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 10,152 | 10,217 | 739 | 442 | 9,727 | ||||||||||||||||||||||||||||
Commercial, industrial and other | 155 | 155 | 31 | 5 | 396 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Home equity and consumer | 934 | 936 | 140 | 42 | 907 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 18,375 | $ | 19,873 | $ | 739 | $ | 640 | $ | 18,580 | |||||||||||||||||||||||
Commercial, industrial and other | 4,175 | 4,273 | 31 | 194 | 4,729 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate—residential mortgage | 617 | 672 | — | — | 622 | ||||||||||||||||||||||||||||
Real estate-construction | 501 | 2,411 | — | — | 2,111 | ||||||||||||||||||||||||||||
Home equity and consumer | 951 | 953 | 140 | 43 | 924 | ||||||||||||||||||||||||||||
$ | 24,619 | $ | 28,182 | $ | 910 | $ | 877 | $ | 26,966 | ||||||||||||||||||||||||
December 31, 2012 | Recorded | Contractual | Related | Interest | Average | ||||||||||||||||||||||||||||
Investment in | Unpaid | Allowance | Income | Investment in | |||||||||||||||||||||||||||||
Impaired | Principal | Recognized | Impaired loans | ||||||||||||||||||||||||||||||
loans | Balance | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Loans without related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 16,458 | $ | 21,665 | $ | — | $ | 495 | $ | 18,301 | |||||||||||||||||||||||
Commercial, industrial and other | 4,896 | 4,932 | — | 116 | 3,838 | ||||||||||||||||||||||||||||
Leases, including leases held for sale | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 360 | 360 | — | 6 | 385 | ||||||||||||||||||||||||||||
Real estate-construction | 3,332 | 4,433 | — | — | 5,533 | ||||||||||||||||||||||||||||
Home equity and consumer | 369 | 369 | — | 1 | 360 | ||||||||||||||||||||||||||||
Loans with related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 3,346 | 4,088 | 368 | 46 | 3,825 | ||||||||||||||||||||||||||||
Commercial, industrial and other | 808 | 871 | 219 | 1 | 769 | ||||||||||||||||||||||||||||
Leases, including leases held for sale | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 288 | 288 | 43 | 4 | 374 | ||||||||||||||||||||||||||||
Real estate-construction | 698 | 1,085 | 97 | — | 1,445 | ||||||||||||||||||||||||||||
Home equity and consumer | 976 | 976 | 146 | 55 | 934 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 19,804 | $ | 25,753 | $ | 368 | $ | 541 | $ | 22,126 | |||||||||||||||||||||||
Commercial, industrial and other | 5,704 | 5,803 | 219 | 117 | 4,607 | ||||||||||||||||||||||||||||
Leases, including leases held for sale | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate—residential mortgage | 648 | 648 | 43 | 10 | 759 | ||||||||||||||||||||||||||||
Real estate-construction | 4,030 | 5,518 | 97 | — | 6,978 | ||||||||||||||||||||||||||||
Home equity and consumer | 1,345 | 1,345 | 146 | 56 | 1,294 | ||||||||||||||||||||||||||||
$ | 31,531 | $ | 39,067 | $ | 873 | $ | 724 | $ | 35,764 | ||||||||||||||||||||||||
Interest which would have been accrued on impaired loans and leases during 2014, 2013 and 2012 was $1.8 million, $2.2 million and $2.8 million, respectively. | |||||||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||||||
The class of loans are determined by internal risk rating. Management closely and continually monitors the quality of its loans and leases and assesses the quantitative and qualitative risks arising from the credit quality of its loans and leases. It is the policy of Lakeland to require that a Credit Risk Rating be assigned to all commercial loans and loan commitments. The Credit Risk Rating System has been developed by management to provide a methodology to be used by Loan Officers, Department Heads and Senior Management in identifying various levels of credit risk that exist within Lakeland’s loan portfolios. The risk rating system assists Senior Management in evaluating Lakeland’s loan portfolio, analyzing trends, and determining the proper level of required reserves to be recommended to the Board. In assigning risk ratings, management considers, among other things, a borrower’s debt service coverage, earnings strength, loan to value ratios, industry conditions and economic conditions. Management categorizes loans and commitments into a one (1) to nine (9) numerical structure with rating 1 being the strongest rating and rating 9 being the weakest. Ratings 1 through 5W are considered ‘Pass’ ratings. | |||||||||||||||||||||||||||||||||
The following table shows Lakeland’s commercial loan portfolio as of December 31, 2014 and 2013, by the risk ratings discussed above (in thousands): | |||||||||||||||||||||||||||||||||
December 31, 2014 | Commercial, | Commercial, | |||||||||||||||||||||||||||||||
secured by | Industrial | Real estate- | |||||||||||||||||||||||||||||||
Risk Rating | real estate | and other | construction | ||||||||||||||||||||||||||||||
1 | $ | — | $ | 1,040 | $ | — | |||||||||||||||||||||||||||
2 | — | 8,755 | — | ||||||||||||||||||||||||||||||
3 | 69,243 | 30,386 | — | ||||||||||||||||||||||||||||||
4 | 479,667 | 91,836 | 7,527 | ||||||||||||||||||||||||||||||
5 | 867,023 | 69,723 | 51,833 | ||||||||||||||||||||||||||||||
5W—Watch | 40,991 | 15,572 | 225 | ||||||||||||||||||||||||||||||
6—Other Assets Especially Mentioned | 27,764 | 8,057 | 2,710 | ||||||||||||||||||||||||||||||
7—Substandard | 45,073 | 12,883 | 1,725 | ||||||||||||||||||||||||||||||
8—Doubtful | — | — | — | ||||||||||||||||||||||||||||||
9—Loss | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,529,761 | $ | 238,252 | $ | 64,020 | |||||||||||||||||||||||||||
December 31, 2013 | Commercial, | Commercial, | |||||||||||||||||||||||||||||||
secured by | Industrial | Real estate- | |||||||||||||||||||||||||||||||
Risk Rating | real estate | and other | construction | ||||||||||||||||||||||||||||||
1 | $ | — | $ | 952 | $ | — | |||||||||||||||||||||||||||
2 | — | 12,964 | — | ||||||||||||||||||||||||||||||
3 | 70,811 | 9,263 | — | ||||||||||||||||||||||||||||||
4 | 442,933 | 60,002 | 1,178 | ||||||||||||||||||||||||||||||
5 | 754,275 | 85,939 | 48,243 | ||||||||||||||||||||||||||||||
5W—Watch | 38,893 | 12,278 | — | ||||||||||||||||||||||||||||||
6—Other Assets Especially Mentioned | 27,640 | 9,596 | 1,245 | ||||||||||||||||||||||||||||||
7—Substandard | 55,309 | 22,814 | 2,453 | ||||||||||||||||||||||||||||||
8—Doubtful | — | — | — | ||||||||||||||||||||||||||||||
9—Loss | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,389,861 | $ | 213,808 | $ | 53,119 | |||||||||||||||||||||||||||
This table does not include consumer or residential loans or leases because they are evaluated on their payment status. | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||||||
The following table details activity in the allowance for loan and lease losses by portfolio segment and the related recorded investment in loans and leases for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||||
12/31/14 | Commercial, | Commercial, | Leases | Real estate- | Real estate- | Home | Unallocated | Total | |||||||||||||||||||||||||
secured by | industrial | residential | Construction | equity and | |||||||||||||||||||||||||||||
real estate | and other | mortgage | consumer | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 14,463 | $ | 5,331 | $ | 504 | $ | 3,214 | $ | 542 | $ | 2,737 | $ | 3,030 | $ | 29,821 | |||||||||||||||||
Charge-offs | (2,282 | ) | (999 | ) | (597 | ) | (827 | ) | (25 | ) | (2,697 | ) | — | (7,427 | ) | ||||||||||||||||||
Recoveries | 999 | 1,039 | 19 | 42 | 106 | 220 | — | 2,425 | |||||||||||||||||||||||||
Provision | 397 | (2,175 | ) | 656 | 1,591 | (70 | ) | 6,073 | (607 | ) | 5,865 | ||||||||||||||||||||||
Ending Balance | $ | 13,577 | $ | 3,196 | $ | 582 | $ | 4,020 | $ | 553 | $ | 6,333 | $ | 2,423 | $ | 30,684 | |||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 634 | $ | 10 | $ | — | $ | 217 | $ | — | $ | 1,031 | $ | — | $ | 1,892 | |||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 12,943 | 3,186 | 582 | 3,803 | 553 | 5,302 | 2,423 | $ | 28,792 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Ending Balance | $ | 13,577 | $ | 3,196 | $ | 582 | $ | 4,020 | $ | 553 | $ | 6,333 | $ | 2,423 | $ | 30,684 | |||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 19,838 | $ | 752 | $ | — | $ | 2,919 | $ | 188 | $ | 1,996 | $ | — | $ | 25,693 | |||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 1,509,923 | 237,500 | 54,749 | 428,271 | 63,832 | 335,646 | — | $ | 2,629,921 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Ending Balance(1) | $ | 1,529,761 | $ | 238,252 | $ | 54,749 | $ | 431,190 | $ | 64,020 | $ | 337,642 | $ | — | $ | 2,655,614 | |||||||||||||||||
-1 | Excludes deferred fees | ||||||||||||||||||||||||||||||||
12/31/13 | Commercial, | Commercial, | Leases | Real estate- | Real estate- | Home | Unallocated | Total | |||||||||||||||||||||||||
secured by | industrial | residential | Construction | equity and | |||||||||||||||||||||||||||||
real estate | and other | mortgage | consumer | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 16,258 | $ | 5,103 | $ | 578 | $ | 3,568 | $ | 587 | $ | 2,837 | $ | — | $ | 28,931 | |||||||||||||||||
Charge-offs | (2,026 | ) | (1,324 | ) | (206 | ) | (1,257 | ) | (3,854 | ) | (1,624 | ) | — | (10,291 | ) | ||||||||||||||||||
Recoveries | 1,061 | 260 | 121 | 99 | 14 | 283 | — | 1,838 | |||||||||||||||||||||||||
Provision | (830 | ) | 1,292 | 11 | 804 | 3,795 | 1,241 | 3,030 | 9,343 | ||||||||||||||||||||||||
Ending Balance | $ | 14,463 | $ | 5,331 | $ | 504 | $ | 3,214 | $ | 542 | $ | 2,737 | $ | 3,030 | $ | 29,821 | |||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 739 | $ | 31 | $ | — | — | — | $ | 140 | $ | — | $ | 910 | |||||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 13,724 | 5,300 | 504 | 3,214 | 542 | 2,597 | 3,030 | $ | 28,911 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Ending Balance | $ | 14,463 | $ | 5,331 | $ | 504 | $ | 3,214 | $ | 542 | $ | 2,737 | $ | 3,030 | $ | 29,821 | |||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 18,375 | $ | 4,175 | $ | — | $ | 617 | $ | 501 | $ | 951 | $ | — | $ | 24,619 | |||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 1,371,486 | 209,633 | 41,332 | 432,214 | 52,618 | 337,976 | — | $ | 2,445,259 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | 411 | — | $ | 411 | ||||||||||||||||||||||||
Ending Balance(1) | $ | 1,389,861 | $ | 213,808 | $ | 41,332 | $ | 432,831 | $ | 53,119 | $ | 339,338 | $ | — | $ | 2,470,289 | |||||||||||||||||
-1 | Excludes deferred costs | ||||||||||||||||||||||||||||||||
12/31/12 | Commercial, | Commercial, | Leases | Real estate- | Real estate- | Home | Total | ||||||||||||||||||||||||||
secured by | industrial | residential | Construction | equity and | |||||||||||||||||||||||||||||
real estate | and other | mortgage | consumer | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 16,618 | $ | 3,477 | $ | 688 | $ | 3,077 | $ | 1,424 | $ | 3,132 | $ | 28,416 | |||||||||||||||||||
Charge-offs | (7,287 | ) | (949 | ) | (999 | ) | (1,822 | ) | (2,888 | ) | (2,074 | ) | (16,019 | ) | |||||||||||||||||||
Recoveries | 280 | 428 | 504 | 66 | 43 | 306 | 1,627 | ||||||||||||||||||||||||||
Provision | 6,647 | 2,147 | 385 | 2,247 | 2,008 | 1,473 | 14,907 | ||||||||||||||||||||||||||
Ending Balance | $ | 16,258 | $ | 5,103 | $ | 578 | $ | 3,568 | $ | 587 | $ | 2,837 | $ | 28,931 | |||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 368 | $ | 219 | $ | — | $ | 43 | $ | 97 | $ | 146 | $ | 873 | |||||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 15,890 | 4,884 | 578 | 3,525 | 490 | 2,691 | $ | 28,058 | |||||||||||||||||||||||||
Ending Balance | $ | 16,258 | $ | 5,103 | $ | 578 | $ | 3,568 | $ | 587 | $ | 2,837 | $ | 28,931 | |||||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 19,804 | $ | 5,704 | $ | — | $ | 648 | $ | 4,030 | $ | 1,345 | $ | 31,531 | |||||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 1,105,333 | 210,425 | 26,781 | 422,614 | 42,242 | 308,281 | $ | 2,115,676 | |||||||||||||||||||||||||
Ending Balance(1) | $ | 1,125,137 | $ | 216,129 | $ | 26,781 | $ | 423,262 | $ | 46,272 | $ | 309,626 | $ | 2,147,207 | |||||||||||||||||||
-1 | Excludes deferred costs | ||||||||||||||||||||||||||||||||
Lakeland also maintains a reserve for unfunded lending commitments which are included in other liabilities. This reserve was $1.1 million and $1.2 million at December 31, 2014 and December 31, 2013, respectively. Lakeland analyzes the adequacy of the reserve for unfunded lending commitments in conjunction with its analysis of the adequacy of the allowance for loan and lease losses. For more information on this analysis, see “Risk Elements” in Management’s Discussion and Analysis. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
Troubled debt restructurings (TDRs) are those loans where significant concessions have been made due to borrowers’ financial difficulties. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, an extended moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate of a new loan with similar risk. Lakeland considers the potential losses on these loans as well as the remainder of its impaired loans when considering the adequacy of the allowance for loan losses. | |||||||||||||||||||||||||||||||||
The following table summarizes loans that have been restructured during the periods presented: | |||||||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of | Pre- | Post- | ||||||||||||||||||||||||||||
Contracts | Modification | Modification | Contracts | Modification | Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 5 | $ | 4,146 | $ | 4,146 | 8 | $ | 3,637 | $ | 2,988 | |||||||||||||||||||||||
Commercial, industrial and other | 2 | 285 | 285 | 1 | 127 | 121 | |||||||||||||||||||||||||||
Leases | — | — | — | — | — | — | |||||||||||||||||||||||||||
Real estate—residential mortgage | 5 | 1,238 | 1,238 | 1 | 179 | 179 | |||||||||||||||||||||||||||
Real estate—construction | — | — | — | — | — | — | |||||||||||||||||||||||||||
Home equity and consumer | 9 | 840 | 840 | 2 | 158 | 157 | |||||||||||||||||||||||||||
21 | $ | 6,509 | $ | 6,509 | 12 | $ | 4,101 | $ | 3,445 | ||||||||||||||||||||||||
The following table presents loans modified as TDRs within the previous 12 months from December 31, 2014 and 2013 for which there have been payment defaults during the subsequent twelve months: | |||||||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Defaulted Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 1 | $ | 32 | — | $ | — | |||||||||||||||||||||||||||
Commercial, industrial and other | — | — | — | — | |||||||||||||||||||||||||||||
Leases | — | — | — | — | |||||||||||||||||||||||||||||
Real estate—residential mortgage | 1 | 354 | — | — | |||||||||||||||||||||||||||||
Real estate—construction | — | — | — | — | |||||||||||||||||||||||||||||
Home equity and consumer | 2 | 238 | 1 | 147 | |||||||||||||||||||||||||||||
4 | $ | 624 | 1 | $ | 147 | ||||||||||||||||||||||||||||
Related Party Loans | |||||||||||||||||||||||||||||||||
Lakeland has entered into lending transactions in the ordinary course of business with directors, executive officers, principal stockholders and affiliates of such persons on similar terms, including interest rates and collateral, as those prevailing for comparable transactions with other borrowers not related to Lakeland. At December 31, 2014, loans to these related parties amounted to $27.6 million. There were new loans of $18.3 million to related parties and repayments of $15.8 million from related parties in 2014. | |||||||||||||||||||||||||||||||||
Mortgages Held for Sale | |||||||||||||||||||||||||||||||||
Residential mortgages originated by the bank and held for sale in the secondary market are carried at the lower of cost or fair market value. Fair value is generally determined by the value of purchase commitments on individual loans. Losses are recorded as a valuation allowance and charged to earnings. As of December 31, 2014, Lakeland had $592,000 in mortgages held for sale compared to $1.2 million as of December 31, 2013. | |||||||||||||||||||||||||||||||||
Leases | |||||||||||||||||||||||||||||||||
Gains (losses) on held for sale leasing assets are included in other income along with other miscellaneous leasing income typically recorded in Lakeland’s leasing business. | |||||||||||||||||||||||||||||||||
Future minimum lease payments of lease receivables are as follows (in thousands): | |||||||||||||||||||||||||||||||||
2015 | $ | 18,810 | |||||||||||||||||||||||||||||||
2016 | 15,291 | ||||||||||||||||||||||||||||||||
2017 | 11,507 | ||||||||||||||||||||||||||||||||
2018 | 6,843 | ||||||||||||||||||||||||||||||||
2019 | 2,090 | ||||||||||||||||||||||||||||||||
thereafter | 208 | ||||||||||||||||||||||||||||||||
$ | 54,749 | ||||||||||||||||||||||||||||||||
Other Real Estate and Other Repossessed Assets | |||||||||||||||||||||||||||||||||
At December 31, 2014, Lakeland had other repossessed assets and other real estate owned of $49,000 and $977,000, respectively. At December 31, 2013, Lakeland had other repossessed assets and other real estate owned of $54,000 and $466,000, respectively. For the years ended December 31, 2014, 2013 and 2012, Lakeland had writedowns of $135,000, $0 and $0, respectively, on other real estate and other repossessed assets which are included in other real estate and repossessed asset expense in the Statement of Operations. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Premises and Equipment | NOTE 5—PREMISES AND EQUIPMENT | ||||||||||
Estimated | December 31, | ||||||||||
useful lives | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Land | Indefinite | $ | 6,319 | $ | 6,259 | ||||||
Buildings and building improvements | 10 to 50 years | 34,951 | 34,607 | ||||||||
Leasehold improvements | 10 to 25 years | 9,845 | 9,997 | ||||||||
Furniture, fixtures and equipment | 2 to 30 years | 38,773 | 37,054 | ||||||||
89,888 | 87,917 | ||||||||||
Less accumulated depreciation and amortization | 54,213 | 50,769 | |||||||||
$ | 35,675 | $ | 37,148 | ||||||||
Depreciation expense was $3.9 million, $3.7 million and $3.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Time_Deposits
Time Deposits | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Banking and Thrift [Abstract] | |||||
Time Deposits | NOTE 6—TIME DEPOSITS | ||||
At December 31, 2014, the schedule of maturities of certificates of deposit is as follows (in thousands): | |||||
Year | |||||
2015 | $ | 189,872 | |||
2016 | 42,586 | ||||
2017 | 35,755 | ||||
2018 | 11,002 | ||||
2019 | 618 | ||||
Thereafter | 129 | ||||
$ | 279,962 | ||||
Debt
Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Debt | NOTE 7—DEBT | ||||||||||||
Lines of Credit | |||||||||||||
As a member of the Federal Home Loan Bank of New York (FHLB), Lakeland has the ability to borrow overnight based on the market value of collateral pledged. As of December 31, 2014 and 2013, there were no overnight borrowings from the FHLB. As of December 31, 2014, Lakeland also had overnight federal funds lines available for it to borrow up to $162.0 million. Lakeland had borrowed $81.0 million and $50.0 million against these lines as of December 31, 2014 and 2013, respectively. Lakeland may also borrow from the discount window of the Federal Reserve Bank of New York based on the market value of collateral pledged. Lakeland had no borrowings with the Federal Reserve Bank of New York as of December 31, 2014 or 2013. | |||||||||||||
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |||||||||||||
Short-term borrowings at December 31, 2014 and 2013 consisted of short-term securities sold under agreements to repurchase and federal funds purchased. Securities underlying the agreements were under Lakeland’s control. The following tables summarize information relating to securities sold under agreements to repurchase and federal funds purchased for the years presented. For purposes of the tables, the average amount outstanding was calculated based on a daily average. | |||||||||||||
Federal funds purchased: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in thousands) | |||||||||||||
Balance at December 31 | $ | 81,000 | $ | 50,000 | $ | 72,000 | |||||||
Interest rate at December 31 | 0.35 | % | 0.37 | % | 0.37 | % | |||||||
Maximum amount outstanding at any month-end during the year | $ | 117,000 | $ | 81,000 | $ | 72,000 | |||||||
Average amount outstanding during the year | $ | 17,605 | $ | 8,424 | $ | 15,147 | |||||||
Weighted average interest rate during the year | 0.39 | % | 0.34 | % | 0.35 | % | |||||||
2014 | 2013 | 2012 | |||||||||||
Securities sold under agreements to repurchase: | |||||||||||||
(dollars in thousands) | |||||||||||||
Balance at December 31 | $ | 27,935 | $ | 31,991 | $ | 45,289 | |||||||
Interest rate at December 31 | 0.02 | % | 0.02 | % | 0.05 | % | |||||||
Maximum amount outstanding at any month-end during the year | $ | 54,550 | $ | 48,315 | $ | 49,863 | |||||||
Average amount outstanding during the year | $ | 38,192 | $ | 37,277 | $ | 44,434 | |||||||
Weighted average interest rate during the year | 0.03 | % | 0.03 | % | 0.06 | % | |||||||
Other Borrowings | |||||||||||||
FHLB Debt | |||||||||||||
At December 31, 2014, advances from the FHLB totaling $132.5 million will mature within one to four years and are reported as other borrowings. These advances are collateralized by certain securities and first mortgage loans. The advances had a weighted average interest rate of 1.52%. | |||||||||||||
At December 31, 2013, Lakeland had advances from the FHLB totaling $69.0 million maturing within one to five years and reported as other borrowings. These advances were collateralized by certain securities and first mortgage loans. The advances had a weighted average interest rate of 1.47%. In the fourth quarter of 2013, Lakeland prepaid $6.0 million of its FHLB debt that had a weighted rate of 3.99% and incurred a prepayment penalty of $683,000. | |||||||||||||
FHLB debt matures as follows (in thousands): | |||||||||||||
2015 | $ | 30,000 | |||||||||||
2016 | 37,798 | ||||||||||||
2017 | 34,700 | ||||||||||||
2018 | 30,000 | ||||||||||||
2019 | — | ||||||||||||
Thereafter | — | ||||||||||||
$ | 132,498 | ||||||||||||
Long-term Securities Sold Under Agreements to Repurchase | |||||||||||||
At December 31, 2014, Lakeland had $70.0 million in long-term securities sold under agreements to repurchase compared to $50.0 million at December 31, 2013. These borrowings were able to be called at various dates starting in 2009. These borrowings are collateralized by certain securities. The borrowings had a weighted average interest rate of 2.14% and 2.51% on December 31, 2014 and December 31, 2013, respectively. During the first quarter of 2013, Lakeland prepaid $10.0 million of its long-term securities sold under agreements to repurchase that had a rate of 2.90% and incurred a prepayment penalty of $526,000. These long-term securities sold under agreements to repurchase mature as follows (in thousands): | |||||||||||||
2015 | $ | — | |||||||||||
2016 | 10,000 | ||||||||||||
2017 | — | ||||||||||||
2018 | 30,000 | ||||||||||||
2019 | 20,000 | ||||||||||||
Thereafter | 10,000 | ||||||||||||
$ | 70,000 | ||||||||||||
The above FHLB debt and long-term securities sold under agreements to repurchase are collateralized by certain securities. At times the market value of securities collateralizing our borrowings may decline due to changes in interest rates and may necessitate our lenders to issue a “margin call” which requires Lakeland to pledge additional securities to meet that margin call. | |||||||||||||
Subordinated Debentures | |||||||||||||
In May 2007, the Company issued $20.6 million of junior subordinated debentures due August 31, 2037 to Lakeland Bancorp Capital Trust IV, a Delaware business trust. The distribution rate on these securities was 6.61% for 5 years and floats at LIBOR plus 152 basis points thereafter. The debentures are the sole asset of the Trust. The Trust issued 20,000 shares of trust preferred securities, $1,000 face value, for total proceeds of $20.0 million. The Company’s obligations under the debentures and related documents, taken together, constitute a full, irrevocable and unconditional guarantee on a subordinated basis by the Company of the Trust’s obligations under the preferred securities. The preferred securities are callable by the Company on or after August 1, 2012, or earlier if the deduction of related interest for federal income taxes is prohibited, treatment as Tier I capital is no longer permitted, or certain other contingencies arise. The preferred securities must be redeemed upon maturity of the debentures in 2037. | |||||||||||||
In December 2003, the Company issued $25.8 million of junior subordinated debentures due January 7, 2034 to Lakeland Bancorp Capital Trust III, a Delaware business trust. The distribution rate on these securities was 7.535% for 10 years and floats at LIBOR plus 285 basis points thereafter. The debentures are the sole asset of the Trust. The Trust issued 25,000 shares of trust preferred securities, $1,000 face value, for total proceeds of $25.0 million. The Company’s obligations under the debentures and related documents, taken together, constitute a full, irrevocable and unconditional guarantee on a subordinated basis by the Company of the Trust’s obligations under the preferred securities. The preferred securities are callable by the Company on or after January 7, 2009, or earlier if the deduction of related interest for federal income taxes is prohibited, treatment as Tier I capital is no longer permitted, or certain other contingencies arise. On October 7, 2012 the Company redeemed the $25.8 million in junior subordinated debentures. At the time of redemption the debentures had a coupon rate of 7.535% and were due on January 7, 2034. The capital and common securities issued by the Trust in December 2003 were also redeemed. | |||||||||||||
In June 2003, the Company issued $10.3 million of junior subordinated debentures due July 7, 2033 to Lakeland Bancorp Capital Trust I, a Delaware business trust. The distribution rate on these securities was 6.20% for 7 years and floats at LIBOR plus 310 basis points thereafter. The debentures are the sole asset of the Trust. The Trust issued 10,000 shares of trust preferred securities, $1,000 face value, for total proceeds of $10.0 million. The Company’s obligations under the debentures and related documents, taken together, constitute a full, irrevocable and unconditional guarantee on a subordinated basis by the Company of the Trust’s obligations under the preferred securities. The preferred securities are callable by the Company on or after July 7, 2010, or earlier if the deduction of related interest for federal income taxes is prohibited, treatment as Tier I capital is no longer permitted, or certain other contingencies arise. On June 18, 2013, the Company acquired and extinguished $9.0 million of Lakeland Bancorp Capital Trust I debentures and recorded a $1.2 million gain on extinguishment of debt. The interest rate on this debenture floated at LIBOR plus 310 basis points and had a rate of 3.38% at the time of extinguishment. The Company redeemed the remaining $1.0 million in the fourth quarter of 2013 at par value. | |||||||||||||
In June 2003, the Company also issued $20.6 million of junior subordinated debentures due June 30, 2033 to Lakeland Bancorp Capital Trust II, a Delaware business trust. The distribution rate on these securities was 5.71% for 5 years and floats at LIBOR plus 310 basis points thereafter. The debentures are the sole asset of the Trust. The Trust issued 20,000 shares of trust preferred securities, $1,000 face value, for total proceeds of $20.0 million. The Company’s obligations under the debentures and related documents, taken together, constitute a full, irrevocable and unconditional guarantee on a subordinated basis by the Company of the Trust’s obligations under the preferred securities. The preferred securities are callable by the Company on or after June 30, 2008, or earlier if the deduction of related interest for federal income taxes is prohibited, treatment as Tier I capital is no longer permitted, or certain other contingencies arise. The preferred securities must be redeemed upon maturity of the debentures in 2033. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 8—STOCKHOLDERS’ EQUITY |
On May 21, 2014, the Company’s Board of Directors authorized a 5% stock dividend which was distributed on June 17, 2014, to holders of record as of June 3, 2014. On March 19, 2012, the Company’s Board of Directors authorized a 5% stock dividend which was distributed on April 16, 2012, to holders of record as of March 30, 2012. | |
On May 31, 2013, the Company completed its acquisition of Somerset Hills Bancorp, a bank holding company headquartered in Bernardsville, New Jersey. Lakeland Bancorp issued an aggregate of 6,083,783 shares of its common stock in the merger, and also assumed outstanding Somerset Hills Bancorp stock options (which were converted into options to purchase Lakeland Bancorp common stock). Lakeland Bancorp paid $6.5 million in cash in the transaction. | |
On September 4, 2012, the Company issued and sold an aggregate of 2,800,616 shares of common stock at a price of $9.19 per share pursuant to a takedown off of the Company’s shelf registration statement. The Company received net proceeds of $25.0 million which it used to repay $25.8 million in junior subordinated debentures on October 7, 2012. See Note 7 for further details. | |
In February 2009, as part of the Troubled Asset Relief Program (“TARP”) Capital Purchase Program, the Company entered into a Purchase Agreement with the United States Department of the Treasury (the U.S. Treasury), pursuant to which the Company sold 59,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A with a liquidation preference of $1,000 per share and a warrant to purchase 1,099,246 shares of the Company’s common stock, for $59.0 million in cash. The redemption of the preferred shares was completed in three transactions with 20,000 shares redeemed in August 2010, 20,000 shares redeemed in March 2011, and the remaining 19,000 shares redeemed in February 2012. The preferred shares paid an annual dividend of 5% per share during the period the shares were outstanding. The warrant was issued with an initial exercise price of $8.05 (adjusted for stock dividends) and a ten year term and was exercisable immediately, in whole or in part. The value of the warrant was allocated a portion of the $59.0 million in issuance proceeds. The allocation of this value was based on the relative fair value of the preferred shares and the warrant to the combined fair value. Accordingly, the value of the warrant was determined to be $3.3 million and recorded in common stock in the consolidated statements of condition. This non-cash amount was considered a discount to the preferred stock and to be amortized over a five year period using the interest method and accreted as a dividend recorded on the preferred shares. A portion of the unamortized discount was recognized in a charge to earnings on the date of the respective redemptions of the preferred shares. The warrant was included in the diluted average common shares outstanding except in periods for which its effects would be anti-dilutive. On February 29, 2012, the Company completed the redemption of the warrant for $2.8 million. The redemption of the warrant resulted in a reduction of common stock during the first quarter of 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | NOTE 9—INCOME TAXES | ||||||||||||
The components of income taxes are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current tax provision | $ | 15,193 | $ | 12,286 | $ | 9,520 | |||||||
Deferred tax provision | (34 | ) | 164 | 576 | |||||||||
Total provision for income taxes | $ | 15,159 | $ | 12,450 | $ | 10,096 | |||||||
The income tax provision reconciled to the income taxes that would have been computed at the statutory federal rate of 35% is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Federal income tax , at statutory rates | $ | 16,201 | $ | 13,097 | $ | 11,143 | |||||||
Increase (deduction) in taxes resulting from: | |||||||||||||
Tax-exempt income | (1,387 | ) | (1,370 | ) | (1,296 | ) | |||||||
State income tax, net of federal income tax effect | 337 | 339 | 192 | ||||||||||
Other, net | 8 | 384 | 57 | ||||||||||
Provision for income taxes | $ | 15,159 | $ | 12,450 | $ | 10,096 | |||||||
The net deferred tax asset consisted of the following: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan and lease losses | $ | 13,014 | $ | 12,688 | |||||||||
Share based compensation plans | 686 | 553 | |||||||||||
Purchase accounting fair market value adjustments | 694 | 688 | |||||||||||
Non-accrued interest | 554 | 389 | |||||||||||
Deferred compensation | 1,814 | 1,671 | |||||||||||
Other than temporary impairment loss on investment securities | 255 | 255 | |||||||||||
Unrealized losses on securities available for sale | — | 2,620 | |||||||||||
Unfunded pension benefits | 9 | 20 | |||||||||||
Other, net | 537 | 771 | |||||||||||
Deferred tax assets | 17,563 | 19,655 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Core deposit intangible from acquired companies | 800 | 990 | |||||||||||
Undistributed income from subsidiary not consolidated for tax return purposes (REIT). | 724 | — | |||||||||||
Deferred loan costs | 1,407 | 1,338 | |||||||||||
Prepaid expenses | 460 | 457 | |||||||||||
Depreciation and amortization | 1,438 | 1,514 | |||||||||||
Deferred gain on securities | 194 | 194 | |||||||||||
Unrealized gains on securities available for sale | 862 | — | |||||||||||
Other | 633 | 659 | |||||||||||
Deferred tax liabilities | 6,518 | 5,152 | |||||||||||
Net deferred tax assets, included in other assets | $ | 11,045 | $ | 14,503 | |||||||||
As a result of the acquisition of Somerset Hills, the Company recorded a net deferred tax asset of $93,000. | |||||||||||||
The Company evaluates the realizability of its deferred tax assets by examining its earnings history and projected future earnings and by assessing whether it is more likely than not that carryforwards would not be realized. Based upon the majority of the Company’s deferred tax assets having no expiration date, the Company’s earnings history, and the projections of future earnings, the Company’s management believes that it is more likely than not that all of the Company’s deferred tax assets as of December 31, 2014 will be realized. | |||||||||||||
The Company evaluates tax positions that may be uncertain using a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company had an unrecognized tax benefit of $111,000 as of December 31, 2013. In 2014, the Company reevaluated this unrecognized tax benefit and concluded that based on current information the tax position that it has taken is more-likely-than not to be upheld. Therefore, the Company recognized the tax benefit in the fourth quarter of 2014. | |||||||||||||
The Company is subject to U.S. federal income tax law as well as income tax of various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few significant exceptions, the Company is no longer subject to U.S. federal examinations by tax authorities for the years before 2011 or to state and local examinations by tax authorities for the years before 2010. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | NOTE 10—EARNINGS PER SHARE | ||||||||||||
The Company uses the two class method to compute earnings per common share. Participating securities include non-vested restricted stock. The following tables present the computation of basic and diluted earnings per share for the periods presented. | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
Income | Shares | Per share | |||||||||||
(numerator) | (denominator) | amount | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Basic earnings per share | |||||||||||||
Net income available to common shareholders | $ | 31,129 | 37,749 | $ | 0.82 | ||||||||
Less: earnings allocated to participating securities | 222 | 0 | |||||||||||
Net income available to common shareholders | $ | 30,907 | 37,749 | $ | 0.82 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options and restricted stock | — | 120 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders plus assumed conversions | $ | 30,907 | 37,869 | $ | 0.82 | ||||||||
Options to purchase 115,831 shares of common stock at a weighted average of $12.06 per share were not included in the computation of diluted earnings per share because the option price and the grant date price were greater than the average market price during the period. | |||||||||||||
Year ended December 31, 2013 | |||||||||||||
Income | Shares | Per share | |||||||||||
(numerator) | (denominator) | amount | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Basic earnings per share | |||||||||||||
Net income available to common shareholders | $ | 24,969 | 34,742 | $ | 0.72 | ||||||||
Less: earnings allocated to participating securities | 178 | 0.01 | |||||||||||
Net income available to common shareholders | $ | 24,791 | 34,742 | $ | 0.71 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options and restricted stock | — | 160 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders plus assumed conversions | $ | 24,791 | 34,902 | $ | 0.71 | ||||||||
Options to purchase 358,340 shares of common stock at a weighted average of $11.91 per share were not included in the computation of diluted earnings per share because the option price and the grant date price were greater than the average market price during the period | |||||||||||||
Year ended December 31, 2012 | |||||||||||||
Income | Shares | Per | |||||||||||
(numerator) | (denominator) | share | |||||||||||
amount | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Basic earnings per share | |||||||||||||
Net income available to common shareholders | $ | 21,122 | 29,000 | $ | 0.73 | ||||||||
Less: earnings allocated to participating securities | 181 | 0.01 | |||||||||||
Net income available to common shareholders | $ | 20,941 | 29,000 | $ | 0.72 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options and restricted stock | — | 77 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders plus assumed conversions | $ | 20,941 | 29,077 | $ | 0.72 | ||||||||
Options to purchase 470,544 shares of common stock at a weighted average of $11.96 per share were not included in the computation of diluted earnings per share because the option price and the grant date price were greater than the average market price during the period. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Employee Benefit Plans | NOTE 11—EMPLOYEE BENEFIT PLANS | ||||||||||||||||
Profit Sharing Plan | |||||||||||||||||
The Company has a profit sharing plan for all its eligible employees. The Company’s annual contribution to the plan is determined by its Board of Directors. Annual contributions are allocated to participants on a point basis with accumulated benefits payable at retirement, or, at the discretion of the plan committee, upon termination of employment. Contributions made by the Company were approximately $600,000 for 2014, $600,000 for 2013 and $625,000 for 2012. | |||||||||||||||||
Salary Continuation Agreements | |||||||||||||||||
The National Bank of Sussex County (NBSC) entered into a salary continuation agreement during 1996 with its former Chief Executive Officer (CEO) and its President which entitle them to certain payments upon their retirement. As part of the merger of the Company and NBSC’s parent (High Point Financial Corp.) in July 1999, Lakeland placed in trusts amounts equal to the present value of the amounts that would be owed to them in their retirement. These amounts were $722,000 for the CEO and $381,000 for the President. The Company has no further obligation to pay additional amounts pursuant to these agreements. | |||||||||||||||||
Benefit Obligations from Somerset Hills Acquisition | |||||||||||||||||
Somerset Hills, acquired by the Company in 2013, entered into a non-qualified Supplemental Executive Retirement Plan (“SERP”) with its former Chief Executive Officer and its Chief Financial Officer which entitles them to a benefit of $48,000 and $24,000, respectively, per year for 15 years after the earlier of retirement or death. The beneficiary of the Chief Financial Officer is currently being paid out under the plan. As of December 31, 2014, the Company has a liability of $675,000 for these SERPs and has recognized an expense of $109,000 and $50,000 in 2014 and 2013, respectively. | |||||||||||||||||
Retirement Savings Plans (401(k) plans) | |||||||||||||||||
Beginning in January 2002, the Company began contributing to its 401(k) plan. All eligible employees can contribute a portion of their annual salary with the Company matching up to 50% of the employee’s contributions. The Company’s contributions in 2014, 2013 and 2012 totaled $740,000, $715,000 and $628,000, respectively. | |||||||||||||||||
Pension Plan | |||||||||||||||||
Newton Trust Company, acquired by the Company in 2004, had a defined benefit pension plan (the Plan) that was frozen prior to the acquisition by the Company. All participants of the Plan ceased accruing benefits as of that date. | |||||||||||||||||
The investment policy and strategy of the Plan and its advisors includes target portfolio allocations of approximately 60% in equities, 30% in debt securities, 5% in commodities and 5% in cash. Based on historical performance, the Plan assumes that the long term equity securities have earned a rate of return of approximately 10% and fixed income securities have earned a return of between 1% and 5%. | |||||||||||||||||
The assets of the Plan consist of cash and cash equivalents and investments in mutual funds that are actively traded. All of the mutual funds are classified as Level 1 securities meaning that their market values are unadjusted quoted prices in active markets. | |||||||||||||||||
In 2014, the Company filed appropriate forms with the Internal Revenue Service and the Pension Benefit Guaranty Corporation to terminate the Plan and are awaiting approval from both entities. As a result of the Company’s intent to terminate the plan, the Company changed the portfolio allocation of the plan to minimize the fluctuation of the market value of the Plan’s assets. The Company also recorded a realized loss for the difference between the plan assets and the estimated payout of the plan of approximately $300,000. | |||||||||||||||||
The following table shows the fair value and the portfolio allocations of the assets in the Plan by type of investment as of December 31 for the years presented (dollars in thousands): | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Market | Percent of | Market | Percent of | ||||||||||||||
Value | Assets | Value | Assets | ||||||||||||||
Cash and cash equivalents | $ | 519 | 26 | % | $ | 89 | 5 | % | |||||||||
Fixed Income Mutual funds | 976 | 48 | % | 568 | 29 | % | |||||||||||
U.S. Large-Cap funds | 525 | 26 | % | 466 | 23 | % | |||||||||||
U.S. Mid- and Small-Cap funds | — | — | % | 148 | 7 | % | |||||||||||
U.S. Balanced funds | — | — | % | 315 | 16 | % | |||||||||||
International funds | — | — | % | 301 | 15 | % | |||||||||||
Commodity funds | — | — | % | 100 | 5 | % | |||||||||||
$ | 2,020 | 100 | % | $ | 1,987 | 100 | % | ||||||||||
The accumulated benefit obligation as of December 31 is as follows: | |||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Accumulated postretirement benefit obligation | $ | 2,027 | $ | 2,407 | |||||||||||||
Interest Cost | 94 | 90 | |||||||||||||||
Actuarial (gain) loss | 401 | (295 | ) | ||||||||||||||
Estimated benefit payments | (188 | ) | (175 | ) | |||||||||||||
Total accumulated postretirement benefit obligation | 2,334 | 2,027 | |||||||||||||||
Fair value of plan assets beginning of period | 1,987 | 1,766 | |||||||||||||||
Return on plan assets | 61 | 236 | |||||||||||||||
Benefits paid | (188 | ) | (175 | ) | |||||||||||||
Contribution | 160 | 160 | |||||||||||||||
Fair value of plan assets at end of year | 2,020 | 1,987 | |||||||||||||||
Funded status | (314 | ) | (40 | ) | |||||||||||||
Unrecognized net actuarial loss | — | — | |||||||||||||||
Liability | $ | (314 | ) | $ | (40 | ) | |||||||||||
Accumulated benefit obligation | $ | 2,334 | $ | 2,027 | |||||||||||||
The components of net periodic pension cost are as follows: | |||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Amortization of actuarial loss | $ | 39 | $ | 82 | $ | 72 | |||||||||||
Interest cost on APBO | 94 | 90 | 87 | ||||||||||||||
Expected return on plan assets | (95 | ) | (72 | ) | (76 | ) | |||||||||||
Net periodic postretirement cost | $ | 38 | $ | 100 | $ | 83 | |||||||||||
The Company expects to make lump sum payments toward the end of 2015 of $2.3 million from the Plan as a result of its termination. | |||||||||||||||||
The Company does not expect to have a contribution in 2015. | |||||||||||||||||
The Company and its actuary use certain assumptions in measuring the benefit obligation. The most significant of these is the discount rate used to measure the present value of the benefit obligations and the expense to be used in the following year financial statements. The Company uses the projected cash flows of the pension plan and the Citigroup pension liability index to develop the discount rate. The pension plan’s expected return on plan assets is based on historical investment return experience and is impacted by the target allocation of assets. There is no assumption on the rate of compensation because the plan is frozen and no participants are accruing benefits on the plan. | |||||||||||||||||
In 2014, as a result of the pending termination of the Plan, the benefit obligation was determined by calculating the lump sum amounts payable under the terms of the plan assuming a December 1, 2015 distribution date and discounted to December 31, 2014 using the one year Citigroup Pension Liability Index of 0.65%. Annuity liabilities were calculated using an interest rate of 2.40%. The expected return on plan assets is not relevant due to the pending termination of the Plan. | |||||||||||||||||
The assumptions used to determine the pension obligation and the net periodic pension cost were as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discounted rate | 0.65 | % | 4.75 | % | |||||||||||||
Expected return on plan assets | N/A | 4.75 | % | ||||||||||||||
Deferred Compensation Arrangements | |||||||||||||||||
High Point Financial Corp. had established deferred compensation arrangements for certain directors and executives of High Point Financial Corp. and NBSC. The deferred compensation plans differ, but generally provide for annual payments for ten to fifteen years following retirement. The Company’s liabilities under these arrangements are being accrued from the commencement of the plans over the participants’ remaining periods of service. The Company intends to fund its obligations under the deferred compensation arrangements with the increase in cash surrender value of life insurance policies that it has purchased on the respective participants. The deferred compensation plans do not hold any assets. For the years ended December 31, 2014, 2013 and 2012, there were expenses related to this plan of $16,000, $3,000 and $0, respectively. As of December 31, 2014 and 2013, the accrued liability for these plans was $267,000 and $270,000, respectively. | |||||||||||||||||
Supplemental Executive Retirement Plans | |||||||||||||||||
In 2003, the Company entered into a supplemental executive retirement plan (SERP) agreement with its former CEO that provides annual retirement benefits of $150,000 a year for a 15 year period when the former CEO reached the age of 65. Our former CEO retired and is receiving annual retirement benefits pursuant to the plan. In 2008, the Company entered into a SERP agreement with its current CEO that provides annual retirement benefits of $150,000 for a 15 year period when the CEO reaches the age of 65. In November 2008, the Company entered into a SERP with its Regional President and Chief Operating Officer that provides annual retirement benefits of $90,000 a year for a 10 year period upon his reaching the age of 65. In December 2014, the Company entered into a SERP with a Regional President that provides $84,500 a year for a 15 year period upon his retirement in November 2016. The Company intends to fund its obligations under the deferred compensation arrangements with the increase in cash surrender value of bank owned life insurance policies. In 2014, 2013 and 2012, the Company recorded compensation expense of $359,000, $247,000 and $434,000, respectively, for these plans. |
Directors_Retirement_Plan
Directors Retirement Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Directors Retirement Plan | NOTE 12—DIRECTORS RETIREMENT PLAN | ||||||||||||
The Company provides a plan that any director who became a member of the Board of Directors prior to 2009 who completes five years of service may retire and continue to be paid for a period of ten years at a rate ranging from $5,000 through $17,500 per annum, depending upon years of credited service. This plan is unfunded. The following tables present the status of the plan and the components of net periodic plan cost for the years then ended. The measurement date for the accumulated benefit obligation is December 31 of the years presented. | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Accrued plan cost included in other liabilities | $ | 743 | $ | 885 | |||||||||
Amount not recognized as component of net postretirement benefit cost | |||||||||||||
Recognized in accumulated other comprehensive income | |||||||||||||
Net actuarial (gain) loss | ($ | 141 | ) | ($ | 198 | ) | |||||||
Unrecognized prior service cost | — | — | |||||||||||
Amounts not recognized as a component of net | ($ | 141 | ) | ($ | 198 | ) | |||||||
postretirement benefit cost (benefit) | |||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Net periodic plan cost included the following components: | |||||||||||||
Service cost | $ | 26 | $ | 29 | $ | 30 | |||||||
Interest cost | 39 | 36 | 41 | ||||||||||
Amortization of prior service cost | 14 | 21 | 26 | ||||||||||
$ | 79 | $ | 86 | $ | 97 | ||||||||
A discount rate of 3.52% and 4.75% was assumed in the plan valuation for 2014 and 2013, respectively. As the benefit amount is not dependent upon compensation levels, a rate of increase in compensation assumption was not utilized in the plan valuation. | |||||||||||||
The director’s retirement plan holds no plan assets. The benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows (in thousands): | |||||||||||||
2015 | $ | 75 | |||||||||||
2016 | 75 | ||||||||||||
2017 | 70 | ||||||||||||
2018 | 68 | ||||||||||||
2019 | 50 | ||||||||||||
2020-2024 | 150 | ||||||||||||
The Company expects its contribution to the director’s retirement plan to be $75,000 in 2015. | |||||||||||||
The amount in accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost in 2015 is $13,000. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock-Based Compensation | NOTE 13—STOCK-BASED COMPENSATION | ||||||||||||||||
Employee Stock Option Plans | |||||||||||||||||
On May 21, 2009, the Company’s shareholders approved the 2009 Equity Compensation Program, which authorizes the granting of incentive stock options, supplemental stock options, restricted shares and restricted stock units to employees of the Company, including those employees serving as officers and directors of the Company. The plan authorizes the issuance of 2.3 million shares in connection with options and awards granted under the 2009 program. | |||||||||||||||||
The Company established the 2000 Equity Compensation Program which authorizes the granting of incentive stock options, supplemental stock options and restricted stock to employees of the Company which includes those employees serving as officers and directors of the Company. The plan authorized 2,613,185 shares of common stock of the Company. No further awards will be granted from the 2000 program. | |||||||||||||||||
On May 31, 2013, the Company granted options to purchase 52,500 shares (26,250 shares each) to two new non-employee directors of the Company at an exercise price of $9.44 per share under the 2009 program. The directors’ options are exercisable in five equal installments beginning on the date of grant and continuing on the next four anniversaries of the date of grant. | |||||||||||||||||
The estimated fair values were determined on the dates of grant using the Black-Scholes Option pricing model. The fair value of the Company’ stock option awards are expensed on a straight-line basis over the vesting period of the stock option. The risk-free rate is based on the implied yield on a U.S. Treasury bond with a term approximating the expected term of the option. The expected volatility computation is based on historical volatility over a period approximating the expected term of the option. The dividend yield is based on the annual dividend payment per share, divided by the grant date stock price. The expected option term is estimated examining historical terms on similar option grants and is a function of the option life and the vesting period. | |||||||||||||||||
The fair value of these options were estimated using the Black-Scholes pricing model with the following weighted average assumptions: | |||||||||||||||||
Risk-free interest rates | 1.55 | % | |||||||||||||||
Expected dividend yield | 2.82 | % | |||||||||||||||
Expected volatility | 45.45 | % | |||||||||||||||
Expected lives (years) | 7 | ||||||||||||||||
Weighted average fair value of options granted | $ | 3.31 | |||||||||||||||
There were no stock options granted in 2012. As of December 31, 2014 and 2013, 140,772 and 207,775 options granted to directors were outstanding, respectively. | |||||||||||||||||
The Company also assumed the outstanding options granted under Somerset Hills’ stock option plans at the time of merger. Based on the conversion ratio in the merger, the Company assumed options to purchase 395,191 shares of Lakeland stock in these plans at a weighted average exercise price of $6.33. The fair value of these options were estimated using the Black Scholes pricing model with the following range of assumptions: | |||||||||||||||||
Risk-free interest rates | 0.04%—1.55% | ||||||||||||||||
Expected dividend yield | 2.82% | ||||||||||||||||
Expected volatility | 13% to 47% | ||||||||||||||||
Expected lives (years) | 3 months—7 years | ||||||||||||||||
Weighted average fair value of options granted | $3.79 | ||||||||||||||||
As of December 31, 2014 and 2013, there were 84,043 and 96,955 options outstanding, respectively, under these plans. | |||||||||||||||||
As of December 31, 2014 and 2013, outstanding options to purchase common stock granted to key employees were 86,890 and 209,895, respectively. | |||||||||||||||||
Excess tax benefits of stock based compensation were $70,000, $142,000 and $4,000 for the years 2014, 2013 and 2012, respectively. | |||||||||||||||||
A summary of the status of the Company’s option plans as of December 31, 2014 and the changes during the year ending on that date is represented below. | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
shares | average | average | Intrinsic | ||||||||||||||
exercise | remaining | Value | |||||||||||||||
price | contractual | ||||||||||||||||
term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding, beginning of year | 514,626 | $ | 10.67 | $ | 754,938 | ||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (11,900 | ) | 7.52 | ||||||||||||||
Expired | (156,334 | ) | 12.45 | ||||||||||||||
Forfeited | (34,687 | ) | 12.57 | ||||||||||||||
Outstanding, end of year | 311,705 | $ | 9.69 | 4.13 | $ | 681,861 | |||||||||||
Options exercisable at year-end | 280,204 | $ | 9.71 | 3.64 | $ | 610,039 | |||||||||||
A summary of the Company’s non-vested options under the Company’s option plans as of December 31, 2014 and changes for the year then ended is presented below. | |||||||||||||||||
Non-vested Options | Shares | Weighted- | |||||||||||||||
Average | |||||||||||||||||
Grant- | |||||||||||||||||
date Fair | |||||||||||||||||
Value | |||||||||||||||||
Non-vested, January 1, 2014 | 47,789 | $ | 3.27 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (16,288 | ) | 3.2 | ||||||||||||||
Non-vested, December 31, 2014 | 31,501 | $ | 3.31 | ||||||||||||||
As of December 31, 2014, there was $84,000 of unrecognized compensation expense related to unvested stock options under the 2009 and 2000 Equity Compensation Programs. Compensation expense recognized for stock options was $42,000, $72,000 and $22,000 for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The aggregate intrinsic values of options exercised in 2014 and 2013 were $44,000 and $1.5 million, respectively. Exercise of stock options during 2014 and 2013 resulted in cash receipts of $89,000 and $2.2 million, respectively. There were no options exercised in 2012. The total fair value of options that vested in 2014 and 2013 were $52,000 for each year. | |||||||||||||||||
In 2012, the Company granted 95,832 shares of restricted stock at a grant date fair value of $9.05 per share under the Company’s 2009 equity compensation program. These shares vest over a five year period. The Company uses the straight line attribution method to record the expense on its restricted stock. Compensation expense on these shares is expected to average approximately $173,000 per year for the next five years. In 2013, the Company granted 109,391 shares of restricted stock at a grant date fair value of $9.41 per share under the Company’s 2009 equity compensation program. These shares vest over a five year period. Compensation expense on these shares is expected to average approximately $206,000 per year for the next five years. In 2014, the Company granted 1,942 shares of restricted stock at a grant date fair value of $ 11.21 per share under the Company’s 2009 equity compensation program. These shares vest over a five year period. Compensation expense on these shares is expected to average approximately $4,000 per year for the next five years. | |||||||||||||||||
Information regarding the Company’s restricted stock for the year ended December 31, 2014 is as follows: | |||||||||||||||||
Number | Weighted | ||||||||||||||||
of shares | average | ||||||||||||||||
price | |||||||||||||||||
Outstanding, January 1, 2014 | 262,270 | $ | 9.12 | ||||||||||||||
Granted | 1,942 | 11.21 | |||||||||||||||
Vested | (100,694 | ) | 9.01 | ||||||||||||||
Forfeited | (3,234 | ) | 9.39 | ||||||||||||||
Outstanding, December 31, 2014 | 160,284 | $ | 9.21 | ||||||||||||||
The total fair value of the restricted stock vested during the year ended December 31, 2014 was approximately $1.2 million. Compensation expense recognized for restricted stock was $707,000, $823,000 and $724,000 in 2014, 2013 and 2012, respectively. There was approximately $687,000 in unrecognized compensation expense related to restricted stock grants as of December 31, 2014, which is expected to be recognized over a period of 2.1 years. | |||||||||||||||||
In 2014, the Company granted 127,791 RSUs at a weighted average grant date fair value of $10.65 per share under the Company’s 2009 equity compensation program. These units vest within a range of two to three years. A portion of these RSUs will vest subject to certain performance conditions in the restricted stock unit agreement. There are also certain provisions in the compensation program which state that if a holder of the RSUs reaches a certain age and years of service, the person has effectively earned a portion of the RSUs at that time. Compensation expense on these restricted stock units is expected to average approximately $453,000 per year over a three year period. Compensation expense for restricted stock units was $641,000 in 2014. There was approximately $712,000 in unrecognized compensation expense related to restricted stock units as of December 31, 2014, which is expected to be recognized over a period of 1.9 years. | |||||||||||||||||
Information regarding the Company’s RSUs (all unvested) and changes during the year ended December 31, 2014 is as follows: | |||||||||||||||||
Number | Weighted | ||||||||||||||||
of shares | average | ||||||||||||||||
price | |||||||||||||||||
Outstanding, January 1, 2014 | 0 | $ | 0 | ||||||||||||||
Granted | 127,791 | 10.65 | |||||||||||||||
Vested | (29,135 | ) | 10.66 | ||||||||||||||
Forfeited | (121 | ) | 10.66 | ||||||||||||||
Outstanding, December 31, 2014 | 98,535 | $ | 10.64 | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | NOTE 14—COMMITMENTS AND CONTINGENCIES | ||||
Lease Obligations | |||||
Lakeland is obligated under various non-cancelable operating leases on building and land used for office space and banking purposes. These leases contain renewal options and escalation clauses. Rent expense under long-term operating leases amounted to approximately $2.7 million, $2.5 million and $2.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, including rent expense to related parties of $139,000 in 2014, $180,000 in 2013, and $227,000, in 2012. At December 31, 2014, the minimum commitments under all noncancellable leases with remaining terms of more than one year and expiring through 2033 are as follows (in thousands): | |||||
Year | |||||
2015 | $ | 2,469 | |||
2016 | 2,146 | ||||
2017 | 1,831 | ||||
2018 | 1,578 | ||||
2019 | 1,357 | ||||
Thereafter | 14,896 | ||||
$ | 24,277 | ||||
Litigation | |||||
There are no pending legal proceedings involving the Company or Lakeland other than those arising in the normal course of business. Management does not anticipate that the potential liability, if any, arising out of such legal proceedings will have a material effect on the financial condition or results of operations of the Company and Lakeland on a consolidated basis. |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk | NOTE 15—FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK AND CONCENTRATIONS OF CREDIT RISK | ||||||||
Lakeland is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated financial statements when they become payable. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement Lakeland has in particular classes of financial instruments. | |||||||||
Lakeland’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. Lakeland uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||
Lakeland generally requires collateral or other security to support financial instruments with credit risk. The approximate contract amounts are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Financial instruments whose contract amounts represent credit risk | |||||||||
Commitments to extend credit | $ | 621,305 | $ | 589,619 | |||||
Standby letters of credit and financial guarantees written | 10,449 | 9,244 | |||||||
At December 31, 2014 and 2013 there were $19,000 and $45,000, respectively, in commitments to lend additional funds to borrowers whose terms have been modified in troubled debt restructurings. | |||||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Lakeland evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by Lakeland upon extension of credit, is based on management’s credit evaluation. | |||||||||
Standby letters of credit are conditional commitments issued by Lakeland to guarantee the payment by or performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Lakeland holds deposit accounts, residential or commercial real estate, accounts receivable, inventory and equipment as collateral to support those commitments for which collateral is deemed necessary. The extent of collateral held for those commitments at December 31, 2014 and 2013 varies based on management’s credit evaluation. | |||||||||
Lakeland issues financial and performance letters of credit. Financial letters of credit require Lakeland to make payment if the customer fails to make payment, as defined in the agreements. Performance letters of credit require Lakeland to make payments if the customer fails to perform certain non-financial contractual obligations. Lakeland defines the initial fair value of these letters of credit as the fees received from the customer. Lakeland records these fees as a liability when issuing the letters of credit and amortizes the fee over the life of the letter of credit. | |||||||||
The maximum potential undiscounted amount of future payments of these letters of credit as of December 31, 2014 is $10.4 million and they expire through 2024. Lakeland’s exposure under these letters of credit would be reduced by actual performance, subsequent termination by the beneficiaries and by any proceeds that Lakeland obtained in liquidating the collateral for the loans, which varies depending on the customer. | |||||||||
As of December 31, 2014, Lakeland had $621.3 million in loan and lease commitments, with $488.2 million maturing within one year, $87.2 million maturing after one year but within three years, $477,000 maturing after three years but within five years, and $45.4 million maturing after five years. As of December 31, 2014, Lakeland had $10.4 million in standby letters of credit, with $10.3 million maturing within one year, $68,000 maturing after one year but within three years, and $80,000 maturing after five years. | |||||||||
Lakeland grants loans primarily to customers in its immediately adjacent suburban counties which include Bergen, Morris, Passaic, Sussex, Warren, Somerset, Union and Essex counties in Northern New Jersey and surrounding areas. Certain of Lakeland’s consumer loans and lease customers are more diversified nationally. Although Lakeland has a diversified loan portfolio, a large portion of its loans are secured by commercial or residential real property. Although Lakeland has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent upon the economy. Commercial and standby letters of credit were granted primarily to commercial borrowers. |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||
Comprehensive Income | NOTE 16—COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||
The Company reports comprehensive income in addition to net income (loss) from operations. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. | |||||||||||||||||||||||||||||||||||||
The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented: | |||||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Before tax | Tax | Net of | |||||||||||||||||||||||||||||||||||
amount | Benefit | tax amount | |||||||||||||||||||||||||||||||||||
(Expense) | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | |||||||||||||||||||||||||||||||||||||
Unrealized holding gains arising during period | $ | 9,663 | $ | (3,483 | ) | $ | 6,180 | ||||||||||||||||||||||||||||||
Less reclassification adjustment for net gains realized in net income | 3 | (1 | ) | 2 | |||||||||||||||||||||||||||||||||
Net unrealized gains on available for sale securities | 9,660 | (3,482 | ) | 6,178 | |||||||||||||||||||||||||||||||||
Change in pension liabilities | 31 | (11 | ) | 20 | |||||||||||||||||||||||||||||||||
Other comprehensive income, net | $ | 9,691 | $ | (3,493 | ) | $ | 6,198 | ||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Before | Tax | Net of | |||||||||||||||||||||||||||||||||||
tax | Benefit | tax | |||||||||||||||||||||||||||||||||||
amount | (Expense) | amount | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||||||||||||||
Unrealized holding losses arising during period | $ | (13,675 | ) | $ | 4,985 | $ | (8,690 | ) | |||||||||||||||||||||||||||||
Less reclassification adjustment for net gains realized in net income | 839 | (330 | ) | 509 | |||||||||||||||||||||||||||||||||
Net unrealized losses on available for sale securities | (14,514 | ) | 5,315 | (9,199 | ) | ||||||||||||||||||||||||||||||||
Change in pension liabilities | 866 | (278 | ) | 588 | |||||||||||||||||||||||||||||||||
Other comprehensive loss, net | $ | (13,648 | ) | $ | 5,037 | $ | (8,611 | ) | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Before | Tax | Net of | |||||||||||||||||||||||||||||||||||
tax | Benefit | tax | |||||||||||||||||||||||||||||||||||
amount | (Expense) | amount | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | |||||||||||||||||||||||||||||||||||||
Unrealized holding gains arising during period | $ | 2,697 | $ | (969 | ) | $ | 1,728 | ||||||||||||||||||||||||||||||
Less reclassification adjustment for net gains realized in net income | 1,049 | (367 | ) | 682 | |||||||||||||||||||||||||||||||||
Net unrealized gains on available for sale securities | 1,648 | (602 | ) | 1,046 | |||||||||||||||||||||||||||||||||
Change in pension liabilities | 30 | (11 | ) | 19 | |||||||||||||||||||||||||||||||||
Other comprehensive income, net | $ | 1,678 | $ | (613 | ) | $ | 1,065 | ||||||||||||||||||||||||||||||
For the Year Ended | For the Year Ended | For the Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Unrealized | Pension Items | Total | Unrealized | Pension Items | Total | Unrealized | Pension Items | Total | |||||||||||||||||||||||||||||
Gains and | Gains and | Gains and | |||||||||||||||||||||||||||||||||||
Losses on | Losses on | Losses on | |||||||||||||||||||||||||||||||||||
Available- | Available- | Available- | |||||||||||||||||||||||||||||||||||
for-sale | for-sale | for-sale | |||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Beginning Balance | ($ | 4,647 | ) | ($ | 28 | ) | ($ | 4,675 | ) | $ | 4,552 | ($ | 616 | ) | $ | 3,936 | $ | 3,506 | ($ | 635 | ) | $ | 2,871 | ||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before classifications | 6,180 | 20 | 6,200 | (8,690 | ) | 588 | (8,102 | ) | 1,728 | 19 | 1,747 | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2 | ) | — | (2 | ) | (509 | ) | — | (509 | ) | (682 | ) | — | (682 | ) | ||||||||||||||||||||||
Net current period other comprehensive income (loss) | 6,178 | 20 | 6,198 | (9,199 | ) | 588 | (8,611 | ) | 1,046 | 19 | 1,065 | ||||||||||||||||||||||||||
Ending balance | $ | 1,531 | ($ | 8 | ) | $ | 1,523 | ($ | 4,647 | ) | ($ | 28 | ) | ($ | 4,675 | ) | $ | 4,552 | ($ | 616 | ) | $ | 3,936 | ||||||||||||||
* | All amounts are net of tax. |
Fair_Value_Measurement_and_Fai
Fair Value Measurement and Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurement and Fair Value of Financial Instruments | NOTE 17—FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest level priority to unobservable inputs (level 3 measurements). The following describes the three levels of fair value hierarchy: | |||||||||||||||||||||
Level 1 – unadjusted quoted prices in active markets for identical assets or liabilities; includes U.S. Treasury Notes, and other U.S. Government Agency securities that actively trade in over-the-counter markets; equity securities and mutual funds that actively trade in over-the-counter markets. | |||||||||||||||||||||
Level 2 – quoted prices for similar assets or liabilities in active markets; or quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability including yield curves, volatilities, and prepayment speeds. | |||||||||||||||||||||
Level 3 – unobservable inputs for the asset or liability that reflect the Company’s own assumptions about assumptions that market participants would use in the pricing of the asset or liability and that are consequently not based on market activity but on particular valuation techniques. | |||||||||||||||||||||
The Company’s assets that are measured at fair value on a recurring basis are its available for sale investment securities and its interest rate swaps. The Company obtains fair values on its securities using information from a third party servicer. If quoted prices for securities are available in an active market, those securities are classified as Level 1 securities. The Company has U.S. Treasury Notes and certain equity securities that are classified as Level 1 securities. Level 2 securities were primarily comprised of U.S. Agency bonds, residential mortgage-backed securities, obligations of state and political subdivisions and corporate securities. Fair values were estimated primarily by obtaining quoted prices for similar assets in active markets or through the use of pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, bids and offers. On a quarterly basis, the Company reviews the pricing information received from the Company’s third party pricing service. This review includes a comparison to non-binding third-party quotes. | |||||||||||||||||||||
The fair values of derivatives are based on valuation models using current market terms (including interest rates and fees), the remaining terms of the agreements and the credit worthiness of the counter-party as of the measurement date (Level 2). | |||||||||||||||||||||
The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the year ended December 31, 2014 and 2013, the Company did not make any transfers between recurring Level 1 fair value measurements and recurring Level 2 fair value measurements. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | |||||||||||||||||||||
December 31, 2014 | Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||||||
Active Markets | Other | Unobservable | Value | ||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, available for sale | |||||||||||||||||||||
U.S. treasury and government agencies | $ | 8,321 | 85,599 | $ | — | $ | 93,920 | ||||||||||||||
Mortgage backed securities | — | 314,931 | — | 314,931 | |||||||||||||||||
Obligations of states and political subdivisions | — | 30,519 | — | 30,519 | |||||||||||||||||
Corporate debt securities | — | 505 | — | 505 | |||||||||||||||||
Equity securities | 4,154 | 13,420 | — | 17,574 | |||||||||||||||||
Total securities available for sale | 12,475 | 444,974 | — | 457,449 | |||||||||||||||||
Other Assets(a) | — | 37 | — | 37 | |||||||||||||||||
Total Assets | $ | 12,475 | 445,011 | — | $ | 457,486 | |||||||||||||||
Other Liabilities(a) | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||||||
Total Liabilities | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||||||
(a) | Non-hedging interest rate derivatives | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, available for sale | |||||||||||||||||||||
U.S. treasury and government agencies | $ | 4,330 | $ | 65,835 | $ | — | $ | 70,165 | |||||||||||||
Mortgage backed securities | — | 304,502 | — | 304,502 | |||||||||||||||||
Obligations of states and political subdivisions | — | 36,873 | — | 36,873 | |||||||||||||||||
Corporate debt securities | — | 3,420 | — | 3,420 | |||||||||||||||||
Equity securities | 3,239 | 12,907 | — | 16,146 | |||||||||||||||||
Total securities available for sale | 7,569 | 423,537 | — | 431,106 | |||||||||||||||||
Other Assets(a) | — | 562 | — | 562 | |||||||||||||||||
Total Assets | $ | 7,569 | $ | 424,099 | $ | — | $ | 431,668 | |||||||||||||
Other Liabilities(a) | $ | — | $ | 562 | $ | — | $ | 562 | |||||||||||||
Total Liabilities | $ | — | $ | 562 | $ | — | $ | 562 | |||||||||||||
(a) | Non-hedging interest rate derivatives | ||||||||||||||||||||
The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | |||||||||||||||||||||
December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Fair Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired Loans and Leases | $ | — | $ | — | $ | 25,693 | $ | 25,693 | |||||||||||||
Loans held for sale | — | 592 | — | 592 | |||||||||||||||||
Other real estate owned and other repossessed assets | — | — | 1,026 | 1,026 | |||||||||||||||||
December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Fair Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired Loans and Leases | $ | — | $ | — | $ | 24,619 | $ | 24,619 | |||||||||||||
Loans held for sale | — | 1,206 | — | 1,206 | |||||||||||||||||
Other real estate owned and other repossessed assets | — | — | 520 | 520 | |||||||||||||||||
Impaired loans and leases are evaluated and valued at the time the loan is identified as impaired at the lower of cost or market value. Because most of Lakeland’s impaired loans are collateral dependant, fair value is generally measured based on the value of the collateral, less estimated costs to sell, securing these loans and leases and is classified at a level 3 in the fair value hierarchy. Collateral may be real estate, accounts receivable, inventory, equipment and/or other business assets. The value of the real estate is assessed based on appraisals by qualified third party licensed appraisers. The appraisers may use the income approach to value the collateral using discount rates (with ranges of 5-11%) or capitalization rates (with ranges of 5-9%) to evaluate the property. The value of the equipment may be determined by an appraiser, if significant, inquiry through a recognized valuation resource, or by the value on the borrower’s financial statements. Field examiner reviews on business assets may be conducted based on the loan exposure and reliance on this type of collateral. Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business. Impaired loans and leases are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors identified above. | |||||||||||||||||||||
The Company has a held for sale loan portfolio that consists of residential mortgages that are being sold in the secondary market. The Company records these mortgages at the lower of cost or market value. Fair value is generally determined by the value of purchase commitments. | |||||||||||||||||||||
Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure, are carried at fair value less estimated disposal costs of the acquired property. Fair value on other real estate owned is based on the appraised value of the collateral using discount rates or capitalization rates similar to those used in impaired loan valuation. The fair value of other repossessed assets is estimated by inquiry through a recognized valuation resource. | |||||||||||||||||||||
Changes in the assumptions or methodologies used to estimate fair values may materially affect the estimated amounts. Changes in economic conditions, locally or nationally, could impact the value of the estimated amounts of impaired loans, OREO and other repossessed assets. | |||||||||||||||||||||
Fair Value of Certain Financial Instruments | |||||||||||||||||||||
Estimated fair values have been determined by the Company using the best available data and an estimation methodology suitable for each category of financial instruments. Management is concerned that there may not be reasonable comparability between institutions due to the wide range of permitted assumptions and methodologies in the absence of active markets. This lack of uniformity gives rise to a high degree of subjectivity in estimating financial instrument fair values. | |||||||||||||||||||||
The estimation methodologies used, the estimated fair values, and recorded book balances at December 31, 2014 and December 31, 2013 are outlined below. | |||||||||||||||||||||
This summary, as well as the table below, excludes financial assets and liabilities for which carrying value approximates fair value. For financial assets, these include cash and cash equivalents. For financial liabilities, these include noninterest bearing demand deposits, savings and interest-bearing transaction accounts and federal funds sold and securities sold under agreements to repurchase. The estimated fair value of demand, savings and interest-bearing transaction accounts is the amount payable on demand at the reporting date. Carrying value is used because there is no stated maturity on these accounts, and the customer has the ability to withdraw the funds immediately. Also excluded from this summary and the following table are those financial instruments recorded at fair value on a recurring basis, as previously described. | |||||||||||||||||||||
The fair value of Investment Securities Held to Maturity was measured using information from the same third-party servicer used for Investment Securities Available for Sale using the same methodologies discussed above. Investment Securities Held to Maturity includes $5.1 million in short-term municipal bond anticipation notes that are non-rated and do not have an active secondary market or information readily available on standard financial systems. As a result, the securities are classified as Level 3 securities. These are investments in municipalities in the Company’s market area, and management performs a credit analysis on the municipality before investing in these securities. | |||||||||||||||||||||
Federal Home Loan Bank of New York (FHLB) stock is an equity interest that can be sold to the issuing FHLB, to other FHLBs, or to other member banks at its par value. Because ownership of these securities is restricted, they do not have a readily determinable fair value. As such, the Company’s FHLB Stock is recorded at cost or par value and is evaluated for impairment each reporting period by considering the ultimate recoverability of the investment rather than temporary declines in value. The Company’s evaluation primarily includes an evaluation of liquidity, capitalization, operating performance, commitments, and regulatory or legislative events. | |||||||||||||||||||||
The net loan portfolio at December 31, 2014 and December 31, 2013 has been valued using a present value discounted cash flow where market prices were not available. The discount rate used in these calculations is the estimated current market rate for new loans with similar credit risk. The valuation of our loan portfolio is consistent with accounting guidance but does not fully incorporate the exit price approach. | |||||||||||||||||||||
For fixed maturity certificates of deposit, fair value was estimated based on the present value of discounted cash flows using the rates currently offered for deposits of similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value. | |||||||||||||||||||||
The fair value of long-term debt is based upon the discounted value of contractual cash flows. The Company estimates the discount rate using the rates currently offered for similar borrowing arrangements. The fair value of subordinated debentures is based on bid/ask prices from brokers for similar types of instruments. | |||||||||||||||||||||
The fair values of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The fair values of commitments to extend credit and standby letters of credit are deemed immaterial. | |||||||||||||||||||||
The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||
December 31, 2014 | Carrying | Fair Value | Quoted Prices in | Significant | Significant | ||||||||||||||||
Value | Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||
Assets (Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial Instruments—Assets | |||||||||||||||||||||
Investment securities held to maturity | $ | 107,976 | $ | 109,030 | $ | — | $ | 103,916 | $ | 5,114 | |||||||||||
Federal Home Loan and other membership bank stock | 9,846 | 9,846 | — | 9,846 | — | ||||||||||||||||
Loans and leases, net | 2,623,142 | 2,624,581 | — | — | 2,624,581 | ||||||||||||||||
Financial Instruments—Liabilities | |||||||||||||||||||||
Certificates of Deposit | 279,962 | 279,439 | — | 279,439 | — | ||||||||||||||||
Other borrowings | 202,498 | 205,343 | — | 205,343 | — | ||||||||||||||||
Subordinated debentures | 41,238 | 30,929 | — | — | 30,929 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Investment securities held to maturity | $ | 101,744 | $ | 100,394 | $ | — | $ | 95,194 | $ | 5,200 | |||||||||||
Federal Home Loan and other membership bank stock | 7,938 | 7,938 | — | 7,938 | — | ||||||||||||||||
Loans and leases | 2,439,195 | 2,432,447 | — | — | 2,432,447 | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Certificates of Deposit | 296,086 | 296,237 | — | 296,237 | — | ||||||||||||||||
Other borrowings | 119,000 | 121,870 | — | 121,870 | — | ||||||||||||||||
Subordinated debentures | 41,238 | 27,835 | — | — | 27,835 |
Derivatives
Derivatives | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Derivatives | NOTE 18—DERIVATIVES | ||||||||||||||||||||
Lakeland is a party to interest rate derivatives that are not designated as hedging instruments. These derivatives relate to interest rate swaps that Lakeland enters into with customers to allow customers to convert variable rate loans to a fixed rate. Lakeland pays interest to the customer at a floating rate on the notional amount and receives interest from the customer at a fixed rate for the same notional amount. At the same time the interest rate swap is entered into with the customer, an offsetting interest rate swap is entered into with another financial institution. Lakeland pays the other financial institution interest at the same fixed rate on the same notional amount as the swap entered into with the customer, and receives interest from the financial institution for the same floating rate on the same notional amount. The changes in the fair value of the swaps offset each other, except for the credit risk of the counterparties, which is determined by taking into consideration the risk rating, probability of default and loss given default for all counterparties. Lakeland does not typically require its commercial customers to post cash or securities as collateral on its program of back-to-back swaps. However, certain language is written into the International Swaps and Derivatives Association agreement and loan documents where, in default situations, Lakeland is allowed to access collateral supporting the loan relationship to recover any losses suffered on the derivative asset or liability. As of December 31, 2014 and 2013, Lakeland had $505,000 and $1.5 million, respectively, in securities pledged for collateral on its interest rate swap with the financial institution. | |||||||||||||||||||||
The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands): | |||||||||||||||||||||
December 31, 2014 | Notional Amount | Average | Weighted Average | Weighted Average | Fair Value | ||||||||||||||||
Maturity (Years) | Rate Fixed | Variable Rate | |||||||||||||||||||
3rd party interest rate swaps | $ | 17,279 | 5.7 | 3.84 | % | 1Mo Libor + 2.21 | ($ | 37 | ) | ||||||||||||
Customer interest rate swaps | (17,279 | ) | 5.7 | 3.84 | % | 1Mo Libor + 2.21 | 37 | ||||||||||||||
December 31, 2013 | Notional Amount | Average | Weighted Average | Weighted Average | Fair Value | ||||||||||||||||
Maturity (Years) | Rate Fixed | Variable Rate | |||||||||||||||||||
3rd party interest rate swaps | $ | 17,691 | 6.7 | 3.83 | % | 1Mo Libor + 2.21 | ($ | 562 | ) | ||||||||||||
Customer interest rate swaps | (17,691 | ) | 6.7 | 3.83 | % | 1Mo Libor + 2.21 | $ | 562 |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Regulatory Matters | NOTE 19—REGULATORY MATTERS | ||||||||||||||||||||||||
The Bank Holding Company Act of 1956 restricts the amount of dividends the Company can pay. Accordingly, dividends should generally only be paid out of current earnings, as defined. | |||||||||||||||||||||||||
The New Jersey Banking Act of 1948 restricts the amount of dividends paid on the capital stock of New Jersey chartered banks. Accordingly, no dividends shall be paid by such banks on their capital stock unless, following the payment of such dividends, the capital stock of Lakeland will be unimpaired, and: (1) Lakeland will have a surplus, as defined, of not less than 50% of its capital stock, or, if not, (2) the payment of such dividend will not reduce the surplus, as defined, of Lakeland. Under these limitations, approximately $270.2 million was available for payment of dividends from Lakeland to the Company as of December 31, 2014. | |||||||||||||||||||||||||
The Company and Lakeland are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possible additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Lakeland’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s and Lakeland’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Lakeland’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||||||
Quantitative measures established by regulations to ensure capital adequacy require the Company and Lakeland to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2014, that the Company and Lakeland met all capital adequacy requirements to which they are subject. | |||||||||||||||||||||||||
As of December 31, 2014, the most recent notification from the FDIC categorized Lakeland as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Lakeland must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the institution’s category. | |||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Company and Lakeland have the following capital ratios: | |||||||||||||||||||||||||
Actual | For capital | To be well capitalized | |||||||||||||||||||||||
adequacy purposes | under prompt | ||||||||||||||||||||||||
corrective action | |||||||||||||||||||||||||
provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 337,597 | 12.98 | % | >$ | 208,024 | >8.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 314,047 | 12.1 | 207,714 | 8 | >$ | 259,642 | >10.00 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 305,814 | 11.76 | % | >$ | 104,012 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 282,267 | 10.87 | 103,857 | 4 | > | 155,785 | >6.00 | % | |||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||
Company | $ | 305,814 | 9.08 | % | >$ | 134,760 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 282,267 | 8.39 | 134,614 | 4 | > | 168,268 | >5.00 | % | |||||||||||||||||
Actual | For capital | To be well capitalized | |||||||||||||||||||||||
adequacy purposes | under prompt corrective | ||||||||||||||||||||||||
action provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 313,499 | 12.98 | % | >$ | 193,166 | >8.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 296,334 | 12.29 | 192,819 | 8 | >$ | 241,023 | >10.00 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 283,307 | 11.73 | % | >$ | 96,583 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 266,195 | 11.04 | 96,409 | 4 | > | 144,614 | >6.00 | % | |||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||
Company | $ | 283,307 | 8.9 | % | >$ | 127,281 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 266,195 | 8.38 | 127,104 | 4 | > | 158,879 | >5.00 | % |
Condensed_Financial_Informatio
Condensed Financial Information - Parent Company Only | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Financial Information - Parent Company Only | NOTE 20—CONDENSED FINANCIAL INFORMATION – PARENT COMPANY ONLY: | ||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 11,893 | $ | 7,478 | |||||||||
Investment securities available for sale | 4,162 | 3,248 | |||||||||||
Investment in subsidiaries | 395,664 | 374,738 | |||||||||||
Other assets | 9,344 | 7,530 | |||||||||||
TOTAL ASSETS | $ | 421,063 | $ | 392,994 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Other liabilities | $ | 387 | $ | 332 | |||||||||
Subordinated debentures | 41,238 | 41,238 | |||||||||||
Total stockholders’ equity | 379,438 | 351,424 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 421,063 | $ | 392,994 | |||||||||
CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
INCOME | |||||||||||||
Dividends from subsidiaries | $ | 16,581 | $ | 20,916 | $ | 31,300 | |||||||
Other income | 102 | 1,640 | 403 | ||||||||||
TOTAL INCOME | 16,683 | 22,556 | 31,703 | ||||||||||
EXPENSE | |||||||||||||
Interest on subordinated debentures | 1,068 | 1,286 | 3,664 | ||||||||||
Noninterest expenses | 313 | 2,551 | 1,718 | ||||||||||
TOTAL EXPENSE | 1,381 | 3,837 | 5,382 | ||||||||||
Income before benefit for income taxes | 15,302 | 18,719 | 26,321 | ||||||||||
Income taxes benefit | (447 | ) | (722 | ) | (1,654 | ) | |||||||
Income before equity in undistributed income of subsidiaries | 15,749 | 19,441 | 27,975 | ||||||||||
Equity in undistributed income (loss) of subsidiaries | 15,380 | 5,528 | (6,233 | ) | |||||||||
NET INCOME | $ | 31,129 | $ | 24,969 | $ | 21,742 | |||||||
Interest on preferred stock and discount accretion | — | — | 620 | ||||||||||
Net Income Available to Common Shareholders | $ | 31,129 | $ | 24,969 | $ | 21,122 | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income | $ | 31,129 | $ | 24,969 | $ | 21,742 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Share based compensation | — | 895 | 746 | ||||||||||
Gain on securities | — | (359 | ) | — | |||||||||
Gain on land held for sale | — | — | (235 | ) | |||||||||
Gain on early extinguishment | — | (1,197 | ) | — | |||||||||
Increase in other assets | (174 | ) | (954 | ) | (1,553 | ) | |||||||
(Decrease) increase in other liabilities | (46 | ) | 25 | (610 | ) | ||||||||
Equity in undistributed (income) loss of subsidiaries | (15,380 | ) | (5,528 | ) | 6,233 | ||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 15,529 | 17,851 | 26,323 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Net cash used in acquisition | — | (6,233 | ) | — | |||||||||
Purchases of securities | (471 | ) | (415 | ) | (53 | ) | |||||||
Sale of land held for sale | 60 | — | 1,042 | ||||||||||
Proceeds from sale of securities available for sale | — | 654 | — | ||||||||||
Contribution to subsidiary | — | — | — | ||||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (411 | ) | (5,994 | ) | 989 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Cash dividends paid on common and preferred stock | (10,836 | ) | (8,152 | ) | (5,992 | ) | |||||||
Issuance of stock to the dividend reinvestment and stock purchase plan | 77 | 186 | 160 | ||||||||||
Proceeds on issuance of stock, net | — | — | 25,040 | ||||||||||
Redemption of subordinated debentures, net | — | (9,113 | ) | (25,000 | ) | ||||||||
Redemption of preferred stock | — | — | (19,000 | ) | |||||||||
Warrant repurchase | — | — | (2,800 | ) | |||||||||
Retirement of Restricted stock | (104 | ) | — | — | |||||||||
Excess tax benefits | 70 | 142 | 4 | ||||||||||
Exercise of stock options | 90 | 2,209 | — | ||||||||||
NET CASH USED IN FINANCING ACTIVITIES | (10,703 | ) | (14,728 | ) | (27,588 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 4,415 | (2,871 | ) | (276 | ) | ||||||||
Cash and cash equivalents, beginning of year | 7,478 | 10,349 | 10,625 | ||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 11,893 | $ | 7,478 | $ | 10,349 | |||||||
Summary_of_Accounting_Policies1
Summary of Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation | ||||||||||||
The accounting and reporting policies of the Company and its subsidiaries conform with accounting principles generally accepted in the United States of America (U.S. GAAP) and predominant practices within the banking industry. The consolidated financial statements include the accounts of the Company, Lakeland, Lakeland NJ Investment Corp., Lakeland Investment Corp., Lakeland Equity, Inc., Lakeland Preferred Equity, Inc. and Sullivan Financial Services, Inc. All intercompany balances and transactions have been eliminated. | |||||||||||||
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. These estimates and assumptions also affect reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Significant estimates implicit in these financial statements are as follows. | |||||||||||||
The principal estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan and lease losses, the valuation of the Company’s investment securities portfolio, the realizability of the Company’s deferred tax asset and the analysis of goodwill and intangible impairment. The policies regarding these estimates are discussed below. | |||||||||||||
The Company’s operating segments are components of its enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer. All of the Company’s financial services activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. For example, commercial lending is dependent upon the ability of Lakeland to fund itself with retail deposits and other borrowings and to manage interest rate and credit risk. The situation is also similar for consumer and residential mortgage lending. Moreover, the Company primarily operates in one market area, Northern and Central New Jersey. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit. Accordingly, the Company has determined that it has one operating segment and thus one reporting segment. | |||||||||||||
Investment Securities | Investment Securities | ||||||||||||
Investment securities are classified in one of three categories: held to maturity, trading, or available for sale. Investments in debt securities, for which management has both the ability and intent to hold to maturity, are carried at cost, adjusted for the amortization of premiums and accretion of discounts computed by the effective interest method. Investments in debt and equity securities, which management believes may be sold prior to maturity due to changes in interest rates, prepayment risk, liquidity requirements, or other factors, are classified as available for sale. Net unrealized gains and losses for such securities, net of tax effect, are reported as other comprehensive income (loss) and excluded from the determination of net income. The Company does not engage in securities trading. Gains or losses on disposition of investment securities are based on the net proceeds and the adjusted carrying amount of the securities sold using the specific identification method. Losses are recorded through the statement of income when the impairment is considered other-than-temporary, even if a decision to sell has not been made. | |||||||||||||
The Company evaluates its portfolio for impairment each quarter. In estimating other-than-temporary losses, the Company considers the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company is more likely than not to sell the security before recovery of its cost basis. If a security has been impaired for more than twelve months, and the impairment is deemed other-than-temporary, a write down will occur in that quarter. If a loss is deemed to be other-than-temporary, it is recognized as a realized loss in the income statement with the security assigned a new cost basis. | |||||||||||||
If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired, but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings in gain (loss) on securities, with the other portion of the loss recognized in other comprehensive income. If a determination is made that an equity security is other-than-temporarily impaired, the unrealized loss will be recognized as an other-than-temporary impairment charge in non-interest income as a component of gain (loss) on investment securities. | |||||||||||||
Loans and Leases and Allowance for Loan and Lease Losses | Loans and Leases and Allowance for Loan and Lease Losses | ||||||||||||
Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the amount of unpaid principal and are net of unearned discount, unearned loan fees and an allowance for loan and lease losses. | |||||||||||||
Interest income is accrued as earned on a simple interest basis. All unamortized fees and costs related to the loan are amortized over the life of the loan using the interest method. Accrual of interest is discontinued on a loan or lease when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of interest and principal is doubtful. When a loan or lease is placed on such non-accrual status, all accumulated accrued interest receivable is reversed out of current period income. | |||||||||||||
Commercial loans and leases are placed on a non-accrual status with all accrued interest and unpaid interest reversed if (a) because of the deterioration in the financial position of the borrower they are maintained on a cash basis (which means payments are applied when and as received rather than on a regularly scheduled basis), (b) payment in full of interest or principal is not expected, or (c) principal and interest have been in default for a period of 90 days or more unless the obligation is both well-secured and in process of collection. Residential mortgage loans are placed on non-accrual status at the time principal and interest have been in default for a period of 90 days or more, except where there exists sufficient collateral to cover the defaulted principal and interest payments, and management’s knowledge of the specific circumstances warrant continued accrual. Consumer loans are generally placed on non-accrual and reviewed for charge-off when principal and interest payments are four months in arrears unless the obligations are well-secured and in the process of collection. Interest thereafter on such charged-off consumer loans is taken into income when received only after full recovery of principal. As a general rule, a non-accrual asset may be restored to accrual status when none of its principal or interest is due and unpaid, satisfactory payments have been received for a sustained period (usually six months), or when it otherwise becomes well-secured and in the process of collection. | |||||||||||||
Loans and leases are considered impaired when, based on current information and events, it is probable that Lakeland will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is measured based on the present value of expected cash flows discounted at the loan’s effective interest rate, or as a practical expedient, Lakeland may measure impairment based on a loan’s observable market price, or the fair value of the collateral, less estimated costs to sell, if the loan is collateral-dependent. Regardless of the measurement method, Lakeland measures impairment based on the fair value of the collateral when it is determined that foreclosure is probable. Most of Lakeland’s impaired loans are collateral-dependent. Lakeland groups impaired commercial loans under $500,000 into a homogeneous pool and collectively evaluates them. Interest received on impaired loans and leases may be recorded as interest income. However, if management is not reasonably certain that an impaired loan and lease will be repaid in full, or if a specific time frame to resolve full collection cannot yet be reasonably determined, all payments received are recorded as reductions of principal. | |||||||||||||
Loans are classified as troubled debt restructured loans in cases where borrowers experience financial difficulties and Lakeland makes certain concessionary modifications to contractual terms. Restructured loans typically involve a modification of terms such as a reduction of the stated interest rate, an extended moratorium of principal payments and/or an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk. Nonetheless, restructured loans are classified as impaired loans. | |||||||||||||
Once an obligation has been restructured because of credit problems, it continues to be considered restructured until paid in full or if all of the following conditions are met: (1) the financial problems of the borrower have been cured; (2) the obligation is returned to a market rate and term; and (3) there has been performance for the longer of the next annual reporting period or six consecutive months. If an obligation has been restructured, it will continue to be classified as impaired until the obligation is fully repaid or until it meets all of the following criteria: 1) the borrower is no longer experiencing financial difficulties, 2) the rate is not less than the rate provided for similar credit risk, 3) other terms are no less favorable than similar new debt and 4) no concessions were granted (any prior principal forgiveness is deemed to be an ongoing concession). | |||||||||||||
The allowance for loan and lease losses is established through a provision for loan and lease losses charged to expense. Loan principal considered to be uncollectible by management is charged against the allowance for loan and lease losses. The allowance is an amount that management believes will be adequate to absorb losses on existing loans and leases that may become uncollectible based upon an evaluation of known and inherent risks in the loan and lease portfolio. The evaluation takes into consideration such factors as changes in the nature and size of the loan and lease portfolio, overall portfolio quality, specific problem loans and leases, and current economic conditions which may affect the borrowers’ ability to pay. The evaluation also analyzes historical losses by loan and lease category, and considers the resulting loss rates when determining the reserves on current loan and lease total amounts. Additionally, management assesses the loss emergence period for the expected losses of each loan segment and adjusts each historical loss factor accordingly. The loss emergence period is the estimated time from the date of a loss event (such as a personal bankruptcy) to the actual recognition of the loss (typically via the first full or partial loan charge-off), and is determined based upon a study of our past loss experience by loan segment. Loss reserves for specified problem loans and leases are also detailed. All of the factors considered in the analysis of the adequacy of the allowance for loan and lease losses may be subject to change. To the extent actual outcomes differ from management estimates, additional provisions for loan and lease losses may be required that would adversely impact earnings in future periods. | |||||||||||||
The determination of the adequacy of the allowance for loan and lease losses and the periodic provisioning for estimated losses included in the consolidated financial statements is the responsibility of management and the Board of Directors. The evaluation process is undertaken on a quarterly basis. | |||||||||||||
Methodology employed for assessing the adequacy of the allowance consists of the following criteria: | |||||||||||||
• | The establishment of reserve amounts for all specifically identified classified loans and leases that have been designated as requiring attention by Lakeland. | ||||||||||||
• | The establishment of reserves for pools of homogeneous types of loans and leases not subject to specific review, including impaired loans under $500,000, leases, 1 – 4 family residential mortgages, and consumer loans. | ||||||||||||
• | The establishment of reserve amounts for the non-classified loans and leases in each portfolio based upon the historical average loss experience as modified by management’s assessment of the loss emergence period for these portfolios and management’s evaluation of key factors. | ||||||||||||
• | Lakeland also maintains an unallocated component in its allowance for loan and lease losses. Management believes that the unallocated component is warranted for inherent factors that cannot be practically assigned to individual loss categories, such as the periodic updating of appraisals on impaired loans, as well as periodic updating of commercial loan credit risk ratings by loan officers and Lakeland’s internal credit review process. | ||||||||||||
Consideration is given to the results of ongoing credit quality monitoring processes, the adequacy and expertise of Lakeland’s lending staff, underwriting policies, loss histories, delinquency trends, and the cyclical nature of economic and business conditions. Since many of Lakeland’s loans depend on the sufficiency of collateral as a secondary source of repayment, any adverse trend in the real estate markets could affect underlying values available to protect Lakeland from loss. | |||||||||||||
A loan that management designates as impaired is reviewed for charge-off when it is placed on non-accrual status with a resulting charge-off if the loan is not secured by collateral having sufficient liquidation value to repay the loan and all outstanding interest owed, and the loan is not in the process of collection. Charge-offs are recommended by the Chief Credit Officer and approved by the Board on a monthly basis. | |||||||||||||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. Gains and losses on sales of loans are specifically identified and accounted for in accordance with U.S. GAAP which requires that an entity engaged in mortgage banking activities classify the retained mortgage-backed security or other interest, which resulted from the securitization of a mortgage loan held for sale, based upon its ability and intent to sell or hold these investments. As of December 31, 2014 and 2013, Lakeland had mortgages classified as held for sale totaling $592,000 and $1.2 million, respectively. | |||||||||||||
Bank Premises and Equipment | Bank Premises and Equipment | ||||||||||||
Bank premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation expense is computed on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are depreciated over the shorter of the estimated useful lives of the improvements or the terms of the related leases. | |||||||||||||
Other Real Estate Owned and Other Repossessed Assets | Other Real Estate Owned and Other Repossessed Assets | ||||||||||||
Other real estate owned (OREO) and other repossessed assets, representing property acquired through foreclosure (or deed-in-lieu-of-foreclosure), are carried at fair value less estimated disposal costs of the acquired property. Costs relating to holding the assets are charged to expense. An allowance for OREO or other repossessed assets is established, through charges to expense, to maintain properties at fair value less estimated costs to sell. Operating results of OREO and other repossessed assets, including rental income and operating expenses, are included in other expenses. | |||||||||||||
Mortgage Servicing | Mortgage Servicing | ||||||||||||
Lakeland performs various servicing functions on loans owned by others. A fee, usually based on a percentage of the outstanding principal balance of the loan, is received for these services. At December 31, 2014 and 2013, Lakeland was servicing approximately $33.9 million and $37.8 million, respectively, of loans for others. | |||||||||||||
Lakeland originates certain mortgages under a definitive plan to sell or securitize those loans and service the loans owned by the investor. Upon the transfer of the mortgage loans in a sale or a securitization, Lakeland records the servicing assets retained. Lakeland records mortgage servicing rights and the loans based on relative fair values at the date of origination and evaluates the mortgage servicing rights for impairment at each reporting period. Lakeland also originates loans that it sells to other banks and investors and does not retain the servicing rights. | |||||||||||||
Mortgage Servicing Rights | Mortgage Servicing Rights | ||||||||||||
When mortgage loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. As of December 31, 2014 and 2013, Lakeland had originated mortgage servicing rights of $217,000 and $274,000, respectively. | |||||||||||||
Under the amortization measurement method, Lakeland subsequently measures servicing rights at fair value at each reporting date and records any impairment in value of servicing assets in earnings in the period in which the impairment occurs. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as commissions and fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. | |||||||||||||
Transfers of Financial Assets | Transfers of Financial Assets | ||||||||||||
Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company-put presumptively beyond the reach of the transferor and its creditors even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |||||||||||||
Customer Derivatives | Customer Derivatives | ||||||||||||
Lakeland enters into interest rate swaps (“swaps”) with loan customers to provide a facility to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in offsetting terms to swaps that Lakeland enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities. Lakeland’s swaps qualify as derivatives, but are not designated as hedging instruments, thus any net gain or loss resulting from changes in the fair value is recognized in other non-interest income. Further discussion of Lakeland’s financial derivatives is set forth in Note 18 to the Consolidated Financial Statements. | |||||||||||||
The credit risk associated with derivatives executed with customers is similar as that involved in extending loans and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer. The positions of customer derivatives are recorded at fair value and changes in value are included in non-interest income on the consolidated statement of income. | |||||||||||||
Restrictions On Cash And Due From Banks | Restrictions On Cash And Due From Banks | ||||||||||||
A portion of Lakeland’s cash on hand and on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. | |||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||
Earnings per share is calculated on the basis of the weighted average number of common shares outstanding during the year. Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Unless otherwise indicated, all weighted average, actual shares or per share information in the financial statements have been adjusted retroactively for the effect of stock dividends. | |||||||||||||
Employee Benefit Plans | Employee Benefit Plans | ||||||||||||
The Company has certain employee benefit plans covering substantially all employees. The Company accrues such costs as incurred. | |||||||||||||
We recognize the overfunded or underfunded status of pension and postretirement benefit plans in accordance with U.S. GAAP. Actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations are recognized as a component of Accumulated Other Comprehensive Income, net of tax effects, until they are amortized as a component of net periodic benefit cost. | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
The Company’s shareholders approved the 2009 Equity Compensation Program, which authorizes the granting of incentive stock options, supplemental stock options, restricted shares and restricted stock units to employees of the Company, including those employees serving as officers and directors of the Company. The plan authorizes the issuance of up to 2.3 million shares in connection with options and awards granted under the 2009 program. The Company’s stock option grants under this plan expire 10 years from the date of grant, ninety days after termination of service other than for cause, or one year after death or disability of the grantee. In 2014, the Company began issuing restricted stock units (RSUs), some of which have performance conditions attached to them. The Company generally issues shares for option exercises from its treasury stock using the cost method or issues new shares if no treasury shares are available. | |||||||||||||
The Company established the 2000 Equity Compensation Program which authorizes the granting of incentive stock options, supplemental stock options and restricted stock to employees of the Company, which includes those employees serving as officers and directors of the Company. The plan authorized 2,613,185 shares of common stock of the Company. All of the Company’s stock option grants expire 10 years from the date of grant, thirty days after termination of service other than for cause, or one year after death or disability of the grantee. The Company has no option or restricted stock awards with market or performance conditions attached to them under the 2000 Equity Compensation Program. No further awards will be granted from the 2000 program. | |||||||||||||
Statement Of Cash Flows | Statement Of Cash Flows | ||||||||||||
Cash and cash equivalents are defined as cash on hand, cash items in the process of collection, amounts due from banks and federal funds sold with an original maturity of three months or less. The following shows supplemental non-cash investing and financing activities for the periods presented: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Transfer of loans and leases receivable to other real estate owned and other repossessed assets | $ | 1,867 | $ | 3,565 | $ | 1,068 | |||||||
Cash paid for income taxes | 15,067 | 12,051 | 9,382 | ||||||||||
Cash paid for interest | 8,882 | 10,804 | 16,334 | ||||||||||
Acquisition of Somerset Hills Bancorp: | |||||||||||||
Non-cash assets acquired: | |||||||||||||
Investment securities available for sale | — | 1,777 | — | ||||||||||
Investment securities held for maturity | — | 8,686 | — | ||||||||||
Loans, including loans held for sale | — | 246,459 | — | ||||||||||
Goodwill and other intangible assets, net | — | 25,574 | — | ||||||||||
Other assets | — | 15,653 | — | ||||||||||
Total non-cash assets acquired | — | 298,149 | |||||||||||
Liabilities assumed: | |||||||||||||
Deposits | — | 311,801 | — | ||||||||||
Other liabilities | — | 1,745 | — | ||||||||||
Total liabilities assumed | — | 313,546 | — | ||||||||||
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options | — | 58,919 | — | ||||||||||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | ||||||||||||
The Company reports comprehensive income (loss) in addition to net income (loss) from operations. Comprehensive income (loss) is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. | |||||||||||||
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets | ||||||||||||
The Company has goodwill of $110.0 million at December 31, 2014 and December 31, 2013, which includes $22.9 million from the Somerset Hills acquisition and $87.1 million from prior acquisitions. The Company recorded $2.7 million in Core Deposit Intangible from the Somerset Hills Acquisition in 2013. Core deposit intangible was $2.0 million on December 31, 2014 compared to $2.4 million on December 31, 2013. The Company recorded $464,000 in core deposit amortization in 2014 compared to $288,000 in 2013. | |||||||||||||
The Company reviews goodwill for impairment annually as of November 30 or when circumstances indicate a potential for impairment at the reporting unit level. U.S. GAAP requires at least an annual review of the fair value of a Reporting Unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. If this qualitative test determines it is unlikely (less than 50% probability) the carrying value of the Reporting Unit is less than its fair value, then the company does not have to perform a Step One impairment test. If the probability is greater than 50%, a Step One goodwill impairment test is required. The Step One test compares the fair value of each reporting unit to the carrying value of its net assets, including goodwill. If the fair value is less than carrying value, the Step Two test is required. The Company has determined that it has one reporting unit, Community Banking. | |||||||||||||
The Company performed a qualitative analysis to determine whether “the weight of evidence, the significance of all identified events and circumstances” indicated a greater than 50% likelihood existed that the carrying value of the Reporting Unit exceeded its fair value and if a Step One Test would be required. The Company identified nine qualitative assessments that are relative to the banking industry and to the Company. These factors included macroeconomic factors, banking industry conditions, banking merger and acquisition trends, Lakeland’s historical performance, the Company’s stock price, the expected performance of Lakeland, the change of control premium of the Company versus its peers and other miscellaneous factors. After reviewing and weighting these factors, the Company, as well as a third party adviser, determined as of November 30, 2014 that there was a less than 50% probability that the fair value of the Company was less than its carrying amount. Therefore, no Step One test was required. | |||||||||||||
Bank Owned Life Insurance | Bank Owned Life Insurance | ||||||||||||
Lakeland invests in bank owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by Lakeland on a chosen group of employees. Lakeland is owner and beneficiary of the policies. At December 31, 2014 and 2013, Lakeland had $57.5 million and $56.0 million, respectively, in BOLI. Income earned on BOLI was $1.5 million, $1.4 million and $1.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. BOLI is accounted for using the cash surrender value method and is recorded at its realizable value. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The Company accounts for income taxes under the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates that will be in effect when these differences reverse. Deferred tax expense is the result of changes in deferred tax assets and liabilities. The principal types of differences between assets and liabilities for financial statement and tax return purposes are allowance for loan and lease losses, core deposit intangibles, deferred loan fees and deferred compensation. | |||||||||||||
The Company evaluates tax positions that may be uncertain using a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. Additional information regarding the Company’s uncertain tax positions is set forth in Note 9 below. | |||||||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||||||
Management has determined that Lakeland Bancorp Capital Trust II and Lakeland Bancorp Capital Trust IV (collectively, “the Trusts”) qualify as variable interest entities. The Trusts issued mandatorily redeemable preferred stock to investors and loaned the proceeds to the Company. The Trusts hold, as their sole asset, subordinated debentures issued by the Company. The Company is not considered the primary beneficiary of the Trusts, therefore the Trusts are not consolidated in the Company’s financial statements. | |||||||||||||
The Company’s maximum exposure to the Trusts is $40 million at December 31, 2014 which is the Company’s liability to the Trusts and includes the Company’s investment in the Trusts. | |||||||||||||
The Federal Reserve has issued guidance on the regulatory capital treatment for the trust preferred securities issued by the Trusts. The rule retains the current maximum percentage of total capital permitted for trust preferred securities at 25%, but enacts other changes to the rules governing trust preferred securities that affect their use as part of the collection of entities known as “restricted core capital elements.” The rule allows bank holding companies to continue to count trust preferred securities as Tier 1 Capital. The Company’s capital ratios continue to be categorized as “well-capitalized” under the regulatory framework for prompt corrective action. Under the Collins Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act, any new issuance of trust preferred securities by the Company would not be eligible as regulatory capital. | |||||||||||||
New Accounting Pronouncements | New Accounting Pronouncements | ||||||||||||
In January 2015, the Financial Accounting Standards Board (FASB) issued an accounting standards update regarding the elimination of the concept of the extraordinary items from the statement of operations. The purpose of this update is to simplify the statement of operations presentation and to align the US GAAP income statement more closely with international accounting standards. This update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this update is not expected to have a material impact on the Company’s financial statements. | |||||||||||||
In June 2014, the FASB issued an accounting standards update regarding share –based payments that requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. This update is effective for interim and annual periods beginning after December 15, 2015. The amendments can be applied prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and to all new or modified awards thereafter. Early adoption is permitted. The Company has determined that adoption of this update is not expected to have a material impact on its accounting and disclosures. | |||||||||||||
In June 2014, the FASB issued an accounting standards update that aligns the accounting for repurchase to maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. This update is effective for the first interim or annual period beginning after December 15, 2014. In addition the disclosure of certain transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014, and the disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and interim periods after March 15, 2015. Early adoption is prohibited. The Company does not engage in repurchase to maturity transactions, and therefore has determined that the adoption of this update is not expected to have a material impact on the Company’s financial results. | |||||||||||||
In May 2014, the FASB issued an accounting standards update that clarifies the principles for recognizing revenue. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. This guidance is effective for the Company beginning January 1, 2017. The Company is still evaluating the potential impact on the Company’s financial statements. | |||||||||||||
In January 2014, the FASB issued an accounting standards update to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. This update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. The adoption of this update is not expected to have a material impact on the Company’s financial statements. |
Summary_of_Accounting_Policies2
Summary of Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Supplemental Schedule of Non-cash Investing and Financing Activities | The following shows supplemental non-cash investing and financing activities for the periods presented: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Transfer of loans and leases receivable to other real estate owned and other repossessed assets | $ | 1,867 | $ | 3,565 | $ | 1,068 | |||||||
Cash paid for income taxes | 15,067 | 12,051 | 9,382 | ||||||||||
Cash paid for interest | 8,882 | 10,804 | 16,334 | ||||||||||
Acquisition of Somerset Hills Bancorp: | |||||||||||||
Non-cash assets acquired: | |||||||||||||
Investment securities available for sale | — | 1,777 | — | ||||||||||
Investment securities held for maturity | — | 8,686 | — | ||||||||||
Loans, including loans held for sale | — | 246,459 | — | ||||||||||
Goodwill and other intangible assets, net | — | 25,574 | — | ||||||||||
Other assets | — | 15,653 | — | ||||||||||
Total non-cash assets acquired | — | 298,149 | |||||||||||
Liabilities assumed: | |||||||||||||
Deposits | — | 311,801 | — | ||||||||||
Other liabilities | — | 1,745 | — | ||||||||||
Total liabilities assumed | — | 313,546 | — | ||||||||||
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options | — | 58,919 | — |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations [Abstract] | |||||||||||||
Summary of Estimated Fair Value of Acquired Assets and Liabilities | The following table summarizes the estimated fair value of the acquired assets and liabilities (in thousands). | ||||||||||||
Consideration Paid | |||||||||||||
Lakeland Bancorp stock issued | $ | 57,419 | |||||||||||
Cash Payment | 6,460 | ||||||||||||
Fair value of Somerset Hills stock options converted to Lakeland Bancorp stock options | 1,500 | ||||||||||||
Total Consideration Paid | $ | 65,379 | |||||||||||
Recognized amounts of identifiable assets and liabilities assumed at fair value | |||||||||||||
Cash and cash equivalents | $ | 80,776 | |||||||||||
Securities available for sale | 1,777 | ||||||||||||
Securities held to maturity | 8,686 | ||||||||||||
Federal Home Loan Bank stock | 493 | ||||||||||||
Loans and leases | 243,927 | ||||||||||||
Loans held for sale | 2,532 | ||||||||||||
Premises and equipment | 5,214 | ||||||||||||
Identifiable intangible assets | 2,712 | ||||||||||||
Accrued interest receivable and other assets | 9,946 | ||||||||||||
Deposits | (311,801 | ) | |||||||||||
Other liabilities | (1,745 | ) | |||||||||||
Total identifiable assets | $ | 42,517 | |||||||||||
Goodwill | $ | 22,862 | |||||||||||
Summary of Loans Acquired | The following is a summary of the loans acquired in the Somerset Hills acquisition as of the closing date. | ||||||||||||
(in thousands) | Acquired | Acquired | Total | ||||||||||
Credit | Non- | Acquired | |||||||||||
Impaired | Credit | Loans | |||||||||||
Loans | Impaired | ||||||||||||
Loans | |||||||||||||
Contractually required principal and interest at acquisition | $ | 4,507 | $ | 352,148 | $ | 356,655 | |||||||
Contractual cash flows not expected to be collected (non-accretable difference) | 2,541 | — | 2,541 | ||||||||||
Expected cash flows at acquisition | $ | 1,966 | $ | 352,148 | $ | 354,114 | |||||||
Interest component of expected cash flows (accretable difference) | 322 | 107,333 | 107,655 | ||||||||||
Fair value of acquired loans, including mortgages held for sale | $ | 1,644 | $ | 244,815 | $ | 246,459 | |||||||
Estimated of Future Amortization Expense | The estimated future amortization expense for each of the succeeding five years ended December 31 is as follows (dollars in thousands): | ||||||||||||
For the year ended: | |||||||||||||
2015 | 415 | ||||||||||||
2016 | 366 | ||||||||||||
2017 | 316 | ||||||||||||
2018 | 267 | ||||||||||||
2019 | 218 |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||
Reconciliation of Available-for-Sale Securities | The amortized cost, gross unrealized gains and losses, and the fair value of the Company’s available for sale and held to maturity securities are as follows: | ||||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | 94,466 | $ | 261 | $ | (807 | ) | $ | 93,920 | $ | 72,828 | $ | — | $ | (2,663 | ) | $ | 70,165 | |||||||||||||||
Mortgage-backed securities, residential | 309,162 | 2,868 | (2,075 | ) | 309,955 | 310,088 | 1,752 | (7,338 | ) | 304,502 | |||||||||||||||||||||||
Mortgage-backed securities, multifamily | 4,973 | 3 | — | 4,976 | — | — | — | — | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 29,764 | 888 | (133 | ) | 30,519 | 36,482 | 914 | (523 | ) | 36,873 | |||||||||||||||||||||||
Other debt securities | 494 | 11 | — | 505 | 3,541 | 37 | (158 | ) | 3,420 | ||||||||||||||||||||||||
Equity securities | 16,196 | 1,589 | (211 | ) | 17,574 | 15,433 | 1,097 | (384 | ) | 16,146 | |||||||||||||||||||||||
$ | 455,055 | $ | 5,620 | $ | (3,226 | ) | $ | 457,449 | $ | 438,372 | $ | 3,800 | $ | (11,066 | ) | $ | 431,106 | ||||||||||||||||
Reconciliation of Held-to-Maturity Securities | The amortized cost, gross unrealized gains and losses, and the fair value of the Company’s available for sale and held to maturity securities are as follows: | ||||||||||||||||||||||||||||||||
HELD TO MATURITY | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Amortized | Gross | Gross | Fair | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
U.S. government agencies | $ | 20,477 | $ | 232 | $ | (84 | ) | $ | 20,625 | $ | 19,732 | $ | 3 | $ | (576 | ) | $ | 19,159 | |||||||||||||||
Mortgage-backed securities, residential | 42,309 | 645 | (385 | ) | 42,569 | 34,596 | 524 | (1,025 | ) | 34,095 | |||||||||||||||||||||||
Mortgage-backed securities, multifamily | 2,259 | — | (60 | ) | 2,199 | 2,355 | — | (166 | ) | 2,189 | |||||||||||||||||||||||
Obligations of states and political subdivisions | 41,401 | 658 | (90 | ) | 41,969 | 43,521 | 495 | (770 | ) | 43,246 | |||||||||||||||||||||||
Other debt securities | 1,530 | 138 | — | 1,668 | 1,540 | 165 | — | 1,705 | |||||||||||||||||||||||||
$ | 107,976 | $ | 1,673 | $ | (619 | ) | $ | 109,030 | $ | 101,744 | $ | 1,187 | $ | (2,537 | ) | $ | 100,394 | ||||||||||||||||
Summary of Contractual Maturities of Investment Securities Classified as Available for Sale and Held to Maturity | The following table lists contractual maturities of investment securities classified as available for sale and held to maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||
Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | ||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 967 | $ | 975 | $ | 8,845 | $ | 8,897 | |||||||||||||||||||||||||
Due after one year through five years | 80,286 | 80,246 | 13,612 | 13,951 | |||||||||||||||||||||||||||||
Due after five years through ten years | 42,185 | 42,459 | 35,277 | 35,701 | |||||||||||||||||||||||||||||
Due after ten years | 1,286 | 1,264 | 5,674 | 5,713 | |||||||||||||||||||||||||||||
124,724 | 124,944 | 63,408 | 64,262 | ||||||||||||||||||||||||||||||
Mortgage-backed securities | 314,135 | 314,931 | 44,568 | 44,768 | |||||||||||||||||||||||||||||
Equity securities | 16,196 | 17,574 | — | — | |||||||||||||||||||||||||||||
Total securities | $ | 455,055 | $ | 457,449 | $ | 107,976 | $ | 109,030 | |||||||||||||||||||||||||
Sales of Securities, Gross Gains and Gross Losses on Sales of Securities | The following table shows proceeds from sales of securities, gross gains and gross losses on sales and calls of securities for the periods indicated: | ||||||||||||||||||||||||||||||||
Years ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Sale proceeds | $ | 17,020 | $ | 64,020 | $ | 97,824 | |||||||||||||||||||||||||||
Gross gains | 346 | 893 | 1,364 | ||||||||||||||||||||||||||||||
Gross losses | (344 | ) | (54 | ) | (315 | ) | |||||||||||||||||||||||||||
Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position | The following table indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
December 31, 2014 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | Fair value | Unrealized | Fair value | Unrealized | Number of | Fair value | Unrealized | ||||||||||||||||||||||||||
Losses | Losses | securities | Losses | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
U.S. treasury and | $5,057 | $28 | $ | 46,135 | $ | 779 | 11 | $ | 51,192 | $ | 807 | ||||||||||||||||||||||
U.S. government agencies | |||||||||||||||||||||||||||||||||
Mortgage-backed securities, residential | 34,832 | 177 | 74,414 | 1,898 | 28 | 109,246 | 2,075 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,266 | 29 | 5,033 | 104 | 12 | 6,299 | 133 | ||||||||||||||||||||||||||
Equity securities | — | — | 4,819 | 211 | 2 | 4,819 | 211 | ||||||||||||||||||||||||||
$ | 41,155 | $ | 234 | $ | 130,401 | $ | 2,992 | 53 | $ | 171,556 | $ | 3,226 | |||||||||||||||||||||
HELD TO MATURITY | |||||||||||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | — | $ | 5,736 | $ | 84 | 1 | $ | 5,736 | $ | 84 | ||||||||||||||||||||
Mortgage-backed securities, residential | 6,236 | 50 | 17,557 | 335 | 8 | 23,793 | 385 | ||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | — | — | 2,199 | 60 | 2 | 2,199 | 60 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 1,290 | 7 | 4,206 | 83 | 13 | 5,496 | 90 | ||||||||||||||||||||||||||
$ | 7,526 | $ | 57 | $ | 29,698 | $ | 562 | 24 | $ | 37,224 | $ | 619 | |||||||||||||||||||||
December 31, 2013 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||||||
AVAILABLE FOR SALE | Fair value | Unrealized | Fair value | Unrealized | Number of | Fair value | Unrealized | ||||||||||||||||||||||||||
Losses | Losses | securities | Losses | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
U.S. treasury and U.S. government agencies | $ | 70,165 | $ | 2,663 | $ | — | $ | — | 16 | $ | 70,165 | $ | 2,663 | ||||||||||||||||||||
Mortgage-backed securities, residential | 177,262 | 6,730 | 10,724 | 608 | 51 | 187,986 | 7,338 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 8,500 | 328 | 2,087 | 195 | 21 | 10,587 | 523 | ||||||||||||||||||||||||||
Other debt securities | — | — | 805 | 158 | 1 | 805 | 158 | ||||||||||||||||||||||||||
Equity securities | — | — | 10,215 | 384 | 3 | 10,215 | 384 | ||||||||||||||||||||||||||
$ | 255,927 | $ | 9,721 | $ | 23,831 | $ | 1,345 | 92 | $ | 279,758 | $ | 11,066 | |||||||||||||||||||||
HELD TO MATURITY | |||||||||||||||||||||||||||||||||
U.S. government agencies | $ | 14,153 | $ | 576 | $ | — | $ | — | 5 | $ | 14,153 | $ | 576 | ||||||||||||||||||||
Mortgage-backed securities, residential | 22,939 | 889 | 1,097 | 136 | 11 | 24,036 | 1,025 | ||||||||||||||||||||||||||
Mortgage-backed securities, multifamily | 895 | 99 | 1,294 | 67 | 2 | 2,189 | 166 | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 17,826 | 607 | 1,456 | 163 | 51 | 19,282 | 770 | ||||||||||||||||||||||||||
$ | 55,813 | $ | 2,171 | $ | 3,847 | $ | 366 | $ | 69 | $ | 59,660 | $ | 2,537 | ||||||||||||||||||||
Loans_and_Leases_and_Other_Rea1
Loans and Leases and Other Real Estate (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Composition of Lakeland`s Loan and Lease Portfolio | The following sets forth the composition of Lakeland’s loan and lease portfolio for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 1,529,761 | $ | 1,389,861 | |||||||||||||||||||||||||||||
Commercial, industrial and other | 238,252 | 213,808 | |||||||||||||||||||||||||||||||
Leases | 54,749 | 41,332 | |||||||||||||||||||||||||||||||
Real estate-residential mortgage | 431,190 | 432,831 | |||||||||||||||||||||||||||||||
Real estate-construction | 64,020 | 53,119 | |||||||||||||||||||||||||||||||
Home equity and consumer | 337,642 | 339,338 | |||||||||||||||||||||||||||||||
Total loans and leases | 2,655,614 | 2,470,289 | |||||||||||||||||||||||||||||||
Less deferred fees | (1,788 | ) | (1,273 | ) | |||||||||||||||||||||||||||||
Loans and leases, net of deferred fees | $ | 2,653,826 | $ | 2,469,016 | |||||||||||||||||||||||||||||
Lakeland's Non-Accrual Loans and Leases and Its Accruing Troubled Debt Restructurings (TDRs) | The following schedule sets forth certain information regarding Lakeland’s non-accrual loans and leases, its other real estate owned and other repossessed assets, and accruing troubled debt restructurings (TDRs): | ||||||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 7,424 | $ | 7,697 | |||||||||||||||||||||||||||||
Commercial, industrial and other | 308 | 88 | |||||||||||||||||||||||||||||||
Leases | 88 | — | |||||||||||||||||||||||||||||||
Real estate—residential mortgage | 9,246 | 6,141 | |||||||||||||||||||||||||||||||
Real estate—construction | 188 | 831 | |||||||||||||||||||||||||||||||
Home equity and consumer | 3,415 | 2,175 | |||||||||||||||||||||||||||||||
Total non-accrual loans and leases | 20,669 | 16,932 | |||||||||||||||||||||||||||||||
Other real estate and other repossessed assets | 1,026 | 520 | |||||||||||||||||||||||||||||||
TOTAL NON-PERFORMING ASSETS | $ | 21,695 | $ | 17,452 | |||||||||||||||||||||||||||||
Troubled debt restructurings, still accruing | $ | 10,579 | $ | 10,289 | |||||||||||||||||||||||||||||
Age Analysis of Past Due Loans, Segregated by Class of Loans | An age analysis of past due loans, segregated by class of loans as of December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||||||||||
December 31, 2014 | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||
Past Due | Past Due | Than | Past Due | Loans | Investment greater | ||||||||||||||||||||||||||||
89 Days | and Leases | than 89 Days and | |||||||||||||||||||||||||||||||
still accruing | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 2,714 | $ | 2,999 | $ | 5,972 | $ | 11,685 | $ | 1,518,076 | $ | 1,529,761 | $ | — | |||||||||||||||||||
Commercial, industrial and other | 944 | 2 | 308 | 1,254 | 236,998 | 238,252 | — | ||||||||||||||||||||||||||
Leases | 108 | 24 | 88 | 220 | 54,529 | 54,749 | — | ||||||||||||||||||||||||||
Real estate—residential mortgage | 3,325 | 354 | 6,710 | 10,389 | 420,801 | 431,190 | — | ||||||||||||||||||||||||||
Real estate—construction | 224 | — | 188 | 412 | 63,608 | 64,020 | — | ||||||||||||||||||||||||||
Home equity and consumer | 1,583 | 598 | 2,951 | 5,132 | 332,510 | 337,642 | 66 | ||||||||||||||||||||||||||
$ | 8,898 | $ | 3,977 | $ | 16,217 | $ | 29,092 | $ | 2,626,522 | $ | 2,655,614 | $ | 66 | ||||||||||||||||||||
December 31, 2013 | 30-59 Days | 60-89 Days | Greater | Total | Current | Total | Recorded | ||||||||||||||||||||||||||
Past Due | Past Due | Than | Past Due | Loans | Investment greater | ||||||||||||||||||||||||||||
89 Days | and Leases | than 89 Days and | |||||||||||||||||||||||||||||||
still accruing | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 7,355 | $ | 5,438 | $ | 6,059 | $ | 18,852 | $ | 1,371,009 | $ | 1,389,861 | $ | 697 | |||||||||||||||||||
Commercial, industrial and other | 482 | 159 | 20 | 661 | 213,147 | 213,808 | — | ||||||||||||||||||||||||||
Leases | 77 | 179 | — | 256 | 41,076 | 41,332 | — | ||||||||||||||||||||||||||
Real estate—residential mortgage | 5,792 | 1,306 | 5,365 | 12,463 | 420,368 | 432,831 | 414 | ||||||||||||||||||||||||||
Real estate—construction | — | — | 831 | 831 | 52,288 | 53,119 | — | ||||||||||||||||||||||||||
Home equity and consumer | 1,776 | 533 | 2,884 | 5,193 | 334,145 | 339,338 | 886 | ||||||||||||||||||||||||||
$ | 15,482 | $ | 7,615 | $ | 15,159 | $ | 38,256 | $ | 2,432,033 | $ | 2,470,289 | $ | 1,997 | ||||||||||||||||||||
Impaired Loans with and without Specific Allowances | |||||||||||||||||||||||||||||||||
December 31, 2014 | Recorded | Contractual | Related | Interest | Average | ||||||||||||||||||||||||||||
Investment in | Unpaid | Allowance | Income | Investment in | |||||||||||||||||||||||||||||
Impaired loans | Principal | Recognized | Impaired loans | ||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Loans without related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 14,172 | $ | 15,520 | $ | — | $ | 436 | $ | 16,092 | |||||||||||||||||||||||
Commercial, industrial and other | 327 | 1,697 | — | 43 | 1,513 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 1,681 | 1,681 | — | — | 308 | ||||||||||||||||||||||||||||
Real estate-construction | 188 | 552 | — | — | 464 | ||||||||||||||||||||||||||||
Home equity and consumer | 741 | 741 | — | 7 | 153 | ||||||||||||||||||||||||||||
Loans with related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 5,666 | 5,818 | 634 | 156 | 3,858 | ||||||||||||||||||||||||||||
Commercial, industrial and other | 425 | 425 | 10 | 9 | 342 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 1,238 | 1,238 | 217 | 19 | 438 | ||||||||||||||||||||||||||||
Real estate-construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Home equity and consumer | 1,255 | 1,255 | 1,031 | 41 | 975 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 19,838 | $ | 21,338 | $ | 634 | $ | 592 | $ | 19,950 | |||||||||||||||||||||||
Commercial, industrial and other | 752 | 2,122 | 10 | 52 | 1,855 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate—residential mortgage | 2,919 | 2,919 | 217 | 19 | 746 | ||||||||||||||||||||||||||||
Real estate-construction | 188 | 552 | — | — | 464 | ||||||||||||||||||||||||||||
Home equity and consumer | 1,996 | 1,996 | 1,031 | 48 | 1,128 | ||||||||||||||||||||||||||||
$ | 25,693 | $ | 28,927 | $ | 1,892 | $ | 711 | $ | 24,143 | ||||||||||||||||||||||||
December 31, 2013 | Recorded | Contractual | Related | Interest | Average | ||||||||||||||||||||||||||||
Investment in | Unpaid | Allowance | Income | Investment in | |||||||||||||||||||||||||||||
Impaired loans | Principal | Recognized | Impaired loans | ||||||||||||||||||||||||||||||
Balance | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Loans without related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 8,223 | $ | 9,656 | $ | — | $ | 198 | $ | 8,853 | |||||||||||||||||||||||
Commercial, industrial and other | 4,020 | 4,118 | — | 189 | 4,333 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 617 | 672 | — | — | 622 | ||||||||||||||||||||||||||||
Real estate-construction | 501 | 2,411 | — | — | 2,111 | ||||||||||||||||||||||||||||
Home equity and consumer | 17 | 17 | — | 1 | 17 | ||||||||||||||||||||||||||||
Loans with related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 10,152 | 10,217 | 739 | 442 | 9,727 | ||||||||||||||||||||||||||||
Commercial, industrial and other | 155 | 155 | 31 | 5 | 396 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-construction | — | — | — | — | — | ||||||||||||||||||||||||||||
Home equity and consumer | 934 | 936 | 140 | 42 | 907 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 18,375 | $ | 19,873 | $ | 739 | $ | 640 | $ | 18,580 | |||||||||||||||||||||||
Commercial, industrial and other | 4,175 | 4,273 | 31 | 194 | 4,729 | ||||||||||||||||||||||||||||
Leases | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate—residential mortgage | 617 | 672 | — | — | 622 | ||||||||||||||||||||||||||||
Real estate-construction | 501 | 2,411 | — | — | 2,111 | ||||||||||||||||||||||||||||
Home equity and consumer | 951 | 953 | 140 | 43 | 924 | ||||||||||||||||||||||||||||
$ | 24,619 | $ | 28,182 | $ | 910 | $ | 877 | $ | 26,966 | ||||||||||||||||||||||||
December 31, 2012 | Recorded | Contractual | Related | Interest | Average | ||||||||||||||||||||||||||||
Investment in | Unpaid | Allowance | Income | Investment in | |||||||||||||||||||||||||||||
Impaired | Principal | Recognized | Impaired loans | ||||||||||||||||||||||||||||||
loans | Balance | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Loans without related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 16,458 | $ | 21,665 | $ | — | $ | 495 | $ | 18,301 | |||||||||||||||||||||||
Commercial, industrial and other | 4,896 | 4,932 | — | 116 | 3,838 | ||||||||||||||||||||||||||||
Leases, including leases held for sale | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 360 | 360 | — | 6 | 385 | ||||||||||||||||||||||||||||
Real estate-construction | 3,332 | 4,433 | — | — | 5,533 | ||||||||||||||||||||||||||||
Home equity and consumer | 369 | 369 | — | 1 | 360 | ||||||||||||||||||||||||||||
Loans with related allowance: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 3,346 | 4,088 | 368 | 46 | 3,825 | ||||||||||||||||||||||||||||
Commercial, industrial and other | 808 | 871 | 219 | 1 | 769 | ||||||||||||||||||||||||||||
Leases, including leases held for sale | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate-residential mortgage | 288 | 288 | 43 | 4 | 374 | ||||||||||||||||||||||||||||
Real estate-construction | 698 | 1,085 | 97 | — | 1,445 | ||||||||||||||||||||||||||||
Home equity and consumer | 976 | 976 | 146 | 55 | 934 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | $ | 19,804 | $ | 25,753 | $ | 368 | $ | 541 | $ | 22,126 | |||||||||||||||||||||||
Commercial, industrial and other | 5,704 | 5,803 | 219 | 117 | 4,607 | ||||||||||||||||||||||||||||
Leases, including leases held for sale | — | — | — | — | — | ||||||||||||||||||||||||||||
Real estate—residential mortgage | 648 | 648 | 43 | 10 | 759 | ||||||||||||||||||||||||||||
Real estate-construction | 4,030 | 5,518 | 97 | — | 6,978 | ||||||||||||||||||||||||||||
Home equity and consumer | 1,345 | 1,345 | 146 | 56 | 1,294 | ||||||||||||||||||||||||||||
$ | 31,531 | $ | 39,067 | $ | 873 | $ | 724 | $ | 35,764 | ||||||||||||||||||||||||
Lakeland's Commercial Loan Portfolio | The following table shows Lakeland’s commercial loan portfolio as of December 31, 2014 and 2013, by the risk ratings discussed above (in thousands): | ||||||||||||||||||||||||||||||||
December 31, 2014 | Commercial, | Commercial, | |||||||||||||||||||||||||||||||
secured by | Industrial | Real estate- | |||||||||||||||||||||||||||||||
Risk Rating | real estate | and other | construction | ||||||||||||||||||||||||||||||
1 | $ | — | $ | 1,040 | $ | — | |||||||||||||||||||||||||||
2 | — | 8,755 | — | ||||||||||||||||||||||||||||||
3 | 69,243 | 30,386 | — | ||||||||||||||||||||||||||||||
4 | 479,667 | 91,836 | 7,527 | ||||||||||||||||||||||||||||||
5 | 867,023 | 69,723 | 51,833 | ||||||||||||||||||||||||||||||
5W—Watch | 40,991 | 15,572 | 225 | ||||||||||||||||||||||||||||||
6—Other Assets Especially Mentioned | 27,764 | 8,057 | 2,710 | ||||||||||||||||||||||||||||||
7—Substandard | 45,073 | 12,883 | 1,725 | ||||||||||||||||||||||||||||||
8—Doubtful | — | — | — | ||||||||||||||||||||||||||||||
9—Loss | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,529,761 | $ | 238,252 | $ | 64,020 | |||||||||||||||||||||||||||
December 31, 2013 | Commercial, | Commercial, | |||||||||||||||||||||||||||||||
secured by | Industrial | Real estate- | |||||||||||||||||||||||||||||||
Risk Rating | real estate | and other | construction | ||||||||||||||||||||||||||||||
1 | $ | — | $ | 952 | $ | — | |||||||||||||||||||||||||||
2 | — | 12,964 | — | ||||||||||||||||||||||||||||||
3 | 70,811 | 9,263 | — | ||||||||||||||||||||||||||||||
4 | 442,933 | 60,002 | 1,178 | ||||||||||||||||||||||||||||||
5 | 754,275 | 85,939 | 48,243 | ||||||||||||||||||||||||||||||
5W—Watch | 38,893 | 12,278 | — | ||||||||||||||||||||||||||||||
6—Other Assets Especially Mentioned | 27,640 | 9,596 | 1,245 | ||||||||||||||||||||||||||||||
7—Substandard | 55,309 | 22,814 | 2,453 | ||||||||||||||||||||||||||||||
8—Doubtful | — | — | — | ||||||||||||||||||||||||||||||
9—Loss | — | — | — | ||||||||||||||||||||||||||||||
Total | $ | 1,389,861 | $ | 213,808 | $ | 53,119 | |||||||||||||||||||||||||||
Allowance for Loan and Lease Losses by Portfolio Segment and Related Recorded Investment in Loans and Leases | The following table details activity in the allowance for loan and lease losses by portfolio segment and the related recorded investment in loans and leases for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||||||||||
12/31/14 | Commercial, | Commercial, | Leases | Real estate- | Real estate- | Home | Unallocated | Total | |||||||||||||||||||||||||
secured by | industrial | residential | Construction | equity and | |||||||||||||||||||||||||||||
real estate | and other | mortgage | consumer | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 14,463 | $ | 5,331 | $ | 504 | $ | 3,214 | $ | 542 | $ | 2,737 | $ | 3,030 | $ | 29,821 | |||||||||||||||||
Charge-offs | (2,282 | ) | (999 | ) | (597 | ) | (827 | ) | (25 | ) | (2,697 | ) | — | (7,427 | ) | ||||||||||||||||||
Recoveries | 999 | 1,039 | 19 | 42 | 106 | 220 | — | 2,425 | |||||||||||||||||||||||||
Provision | 397 | (2,175 | ) | 656 | 1,591 | (70 | ) | 6,073 | (607 | ) | 5,865 | ||||||||||||||||||||||
Ending Balance | $ | 13,577 | $ | 3,196 | $ | 582 | $ | 4,020 | $ | 553 | $ | 6,333 | $ | 2,423 | $ | 30,684 | |||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 634 | $ | 10 | $ | — | $ | 217 | $ | — | $ | 1,031 | $ | — | $ | 1,892 | |||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 12,943 | 3,186 | 582 | 3,803 | 553 | 5,302 | 2,423 | $ | 28,792 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Ending Balance | $ | 13,577 | $ | 3,196 | $ | 582 | $ | 4,020 | $ | 553 | $ | 6,333 | $ | 2,423 | $ | 30,684 | |||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 19,838 | $ | 752 | $ | — | $ | 2,919 | $ | 188 | $ | 1,996 | $ | — | $ | 25,693 | |||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 1,509,923 | 237,500 | 54,749 | 428,271 | 63,832 | 335,646 | — | $ | 2,629,921 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Ending Balance(1) | $ | 1,529,761 | $ | 238,252 | $ | 54,749 | $ | 431,190 | $ | 64,020 | $ | 337,642 | $ | — | $ | 2,655,614 | |||||||||||||||||
-1 | Excludes deferred fees | ||||||||||||||||||||||||||||||||
12/31/13 | Commercial, | Commercial, | Leases | Real estate- | Real estate- | Home | Unallocated | Total | |||||||||||||||||||||||||
secured by | industrial | residential | Construction | equity and | |||||||||||||||||||||||||||||
real estate | and other | mortgage | consumer | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 16,258 | $ | 5,103 | $ | 578 | $ | 3,568 | $ | 587 | $ | 2,837 | $ | — | $ | 28,931 | |||||||||||||||||
Charge-offs | (2,026 | ) | (1,324 | ) | (206 | ) | (1,257 | ) | (3,854 | ) | (1,624 | ) | — | (10,291 | ) | ||||||||||||||||||
Recoveries | 1,061 | 260 | 121 | 99 | 14 | 283 | — | 1,838 | |||||||||||||||||||||||||
Provision | (830 | ) | 1,292 | 11 | 804 | 3,795 | 1,241 | 3,030 | 9,343 | ||||||||||||||||||||||||
Ending Balance | $ | 14,463 | $ | 5,331 | $ | 504 | $ | 3,214 | $ | 542 | $ | 2,737 | $ | 3,030 | $ | 29,821 | |||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 739 | $ | 31 | $ | — | — | — | $ | 140 | $ | — | $ | 910 | |||||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 13,724 | 5,300 | 504 | 3,214 | 542 | 2,597 | 3,030 | $ | 28,911 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Ending Balance | $ | 14,463 | $ | 5,331 | $ | 504 | $ | 3,214 | $ | 542 | $ | 2,737 | $ | 3,030 | $ | 29,821 | |||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 18,375 | $ | 4,175 | $ | — | $ | 617 | $ | 501 | $ | 951 | $ | — | $ | 24,619 | |||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 1,371,486 | 209,633 | 41,332 | 432,214 | 52,618 | 337,976 | — | $ | 2,445,259 | ||||||||||||||||||||||||
Ending Balance: Loans acquired with deteriorated credit quality | — | — | — | — | — | 411 | — | $ | 411 | ||||||||||||||||||||||||
Ending Balance(1) | $ | 1,389,861 | $ | 213,808 | $ | 41,332 | $ | 432,831 | $ | 53,119 | $ | 339,338 | $ | — | $ | 2,470,289 | |||||||||||||||||
-1 | Excludes deferred costs | ||||||||||||||||||||||||||||||||
12/31/12 | Commercial, | Commercial, | Leases | Real estate- | Real estate- | Home | Total | ||||||||||||||||||||||||||
secured by | industrial | residential | Construction | equity and | |||||||||||||||||||||||||||||
real estate | and other | mortgage | consumer | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses: | |||||||||||||||||||||||||||||||||
Beginning Balance | $ | 16,618 | $ | 3,477 | $ | 688 | $ | 3,077 | $ | 1,424 | $ | 3,132 | $ | 28,416 | |||||||||||||||||||
Charge-offs | (7,287 | ) | (949 | ) | (999 | ) | (1,822 | ) | (2,888 | ) | (2,074 | ) | (16,019 | ) | |||||||||||||||||||
Recoveries | 280 | 428 | 504 | 66 | 43 | 306 | 1,627 | ||||||||||||||||||||||||||
Provision | 6,647 | 2,147 | 385 | 2,247 | 2,008 | 1,473 | 14,907 | ||||||||||||||||||||||||||
Ending Balance | $ | 16,258 | $ | 5,103 | $ | 578 | $ | 3,568 | $ | 587 | $ | 2,837 | $ | 28,931 | |||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 368 | $ | 219 | $ | — | $ | 43 | $ | 97 | $ | 146 | $ | 873 | |||||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 15,890 | 4,884 | 578 | 3,525 | 490 | 2,691 | $ | 28,058 | |||||||||||||||||||||||||
Ending Balance | $ | 16,258 | $ | 5,103 | $ | 578 | $ | 3,568 | $ | 587 | $ | 2,837 | $ | 28,931 | |||||||||||||||||||
Loans and Leases: | |||||||||||||||||||||||||||||||||
Ending Balance: Individually evaluated for impairment | $ | 19,804 | $ | 5,704 | $ | — | $ | 648 | $ | 4,030 | $ | 1,345 | $ | 31,531 | |||||||||||||||||||
Ending Balance: Collectively evaluated for impairment | 1,105,333 | 210,425 | 26,781 | 422,614 | 42,242 | 308,281 | $ | 2,115,676 | |||||||||||||||||||||||||
Ending Balance(1) | $ | 1,125,137 | $ | 216,129 | $ | 26,781 | $ | 423,262 | $ | 46,272 | $ | 309,626 | $ | 2,147,207 | |||||||||||||||||||
-1 | Excludes deferred costs | ||||||||||||||||||||||||||||||||
Summary of Restructured Loans | The following table summarizes loans that have been restructured during the periods presented: | ||||||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of | Pre- | Post- | ||||||||||||||||||||||||||||
Contracts | Modification | Modification | Contracts | Modification | Modification | ||||||||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | ||||||||||||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 5 | $ | 4,146 | $ | 4,146 | 8 | $ | 3,637 | $ | 2,988 | |||||||||||||||||||||||
Commercial, industrial and other | 2 | 285 | 285 | 1 | 127 | 121 | |||||||||||||||||||||||||||
Leases | — | — | — | — | — | — | |||||||||||||||||||||||||||
Real estate—residential mortgage | 5 | 1,238 | 1,238 | 1 | 179 | 179 | |||||||||||||||||||||||||||
Real estate—construction | — | — | — | — | — | — | |||||||||||||||||||||||||||
Home equity and consumer | 9 | 840 | 840 | 2 | 158 | 157 | |||||||||||||||||||||||||||
21 | $ | 6,509 | $ | 6,509 | 12 | $ | 4,101 | $ | 3,445 | ||||||||||||||||||||||||
Summary of Restructured Debt within Previous 12 Months that have Subsequently Defaulted | The following table presents loans modified as TDRs within the previous 12 months from December 31, 2014 and 2013 for which there have been payment defaults during the subsequent twelve months: | ||||||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||
Defaulted Troubled Debt Restructurings: | |||||||||||||||||||||||||||||||||
Commercial, secured by real estate | 1 | $ | 32 | — | $ | — | |||||||||||||||||||||||||||
Commercial, industrial and other | — | — | — | — | |||||||||||||||||||||||||||||
Leases | — | — | — | — | |||||||||||||||||||||||||||||
Real estate—residential mortgage | 1 | 354 | — | — | |||||||||||||||||||||||||||||
Real estate—construction | — | — | — | — | |||||||||||||||||||||||||||||
Home equity and consumer | 2 | 238 | 1 | 147 | |||||||||||||||||||||||||||||
4 | $ | 624 | 1 | $ | 147 | ||||||||||||||||||||||||||||
Summary of Future Minimum Lease Payments of Lease Receivables | Future minimum lease payments of lease receivables are as follows (in thousands): | ||||||||||||||||||||||||||||||||
2015 | $ | 18,810 | |||||||||||||||||||||||||||||||
2016 | 15,291 | ||||||||||||||||||||||||||||||||
2017 | 11,507 | ||||||||||||||||||||||||||||||||
2018 | 6,843 | ||||||||||||||||||||||||||||||||
2019 | 2,090 | ||||||||||||||||||||||||||||||||
thereafter | 208 | ||||||||||||||||||||||||||||||||
$ | 54,749 | ||||||||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Summary of Premises and Equipment | |||||||||||
Estimated | December 31, | ||||||||||
useful lives | 2014 | 2013 | |||||||||
(in thousands) | |||||||||||
Land | Indefinite | $ | 6,319 | $ | 6,259 | ||||||
Buildings and building improvements | 10 to 50 years | 34,951 | 34,607 | ||||||||
Leasehold improvements | 10 to 25 years | 9,845 | 9,997 | ||||||||
Furniture, fixtures and equipment | 2 to 30 years | 38,773 | 37,054 | ||||||||
89,888 | 87,917 | ||||||||||
Less accumulated depreciation and amortization | 54,213 | 50,769 | |||||||||
$ | 35,675 | $ | 37,148 | ||||||||
Time_Deposits_Tables
Time Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Banking and Thrift [Abstract] | |||||
Schedule of Maturities of Certificates of Deposit | At December 31, 2014, the schedule of maturities of certificates of deposit is as follows (in thousands): | ||||
Year | |||||
2015 | $ | 189,872 | |||
2016 | 42,586 | ||||
2017 | 35,755 | ||||
2018 | 11,002 | ||||
2019 | 618 | ||||
Thereafter | 129 | ||||
$ | 279,962 | ||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Debt Disclosure [Abstract] | |||||||||||||
Summary of Information Relating to Securities Sold Under Agreements to Repurchase and Federal Funds Purchased | The following tables summarize information relating to securities sold under agreements to repurchase and federal funds purchased for the years presented. For purposes of the tables, the average amount outstanding was calculated based on a daily average. | ||||||||||||
Federal funds purchased: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(dollars in thousands) | |||||||||||||
Balance at December 31 | $ | 81,000 | $ | 50,000 | $ | 72,000 | |||||||
Interest rate at December 31 | 0.35 | % | 0.37 | % | 0.37 | % | |||||||
Maximum amount outstanding at any month-end during the year | $ | 117,000 | $ | 81,000 | $ | 72,000 | |||||||
Average amount outstanding during the year | $ | 17,605 | $ | 8,424 | $ | 15,147 | |||||||
Weighted average interest rate during the year | 0.39 | % | 0.34 | % | 0.35 | % | |||||||
2014 | 2013 | 2012 | |||||||||||
Securities sold under agreements to repurchase: | |||||||||||||
(dollars in thousands) | |||||||||||||
Balance at December 31 | $ | 27,935 | $ | 31,991 | $ | 45,289 | |||||||
Interest rate at December 31 | 0.02 | % | 0.02 | % | 0.05 | % | |||||||
Maximum amount outstanding at any month-end during the year | $ | 54,550 | $ | 48,315 | $ | 49,863 | |||||||
Average amount outstanding during the year | $ | 38,192 | $ | 37,277 | $ | 44,434 | |||||||
Weighted average interest rate during the year | 0.03 | % | 0.03 | % | 0.06 | % | |||||||
Summary of FHLB Debt Matures | FHLB debt matures as follows (in thousands): | ||||||||||||
2015 | $ | 30,000 | |||||||||||
2016 | 37,798 | ||||||||||||
2017 | 34,700 | ||||||||||||
2018 | 30,000 | ||||||||||||
2019 | — | ||||||||||||
Thereafter | — | ||||||||||||
$ | 132,498 | ||||||||||||
Summary of Long-Term Securities Sold Under Agreements to Repurchase Mature | These long-term securities sold under agreements to repurchase mature as follows (in thousands): | ||||||||||||
2015 | $ | — | |||||||||||
2016 | 10,000 | ||||||||||||
2017 | — | ||||||||||||
2018 | 30,000 | ||||||||||||
2019 | 20,000 | ||||||||||||
Thereafter | 10,000 | ||||||||||||
$ | 70,000 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Taxes | The components of income taxes are as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current tax provision | $ | 15,193 | $ | 12,286 | $ | 9,520 | |||||||
Deferred tax provision | (34 | ) | 164 | 576 | |||||||||
Total provision for income taxes | $ | 15,159 | $ | 12,450 | $ | 10,096 | |||||||
Summary of Income Tax Provision Reconciled to Income Taxes that Computed at Statutory Federal Rate | The income tax provision reconciled to the income taxes that would have been computed at the statutory federal rate of 35% is as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Federal income tax , at statutory rates | $ | 16,201 | $ | 13,097 | $ | 11,143 | |||||||
Increase (deduction) in taxes resulting from: | |||||||||||||
Tax-exempt income | (1,387 | ) | (1,370 | ) | (1,296 | ) | |||||||
State income tax, net of federal income tax effect | 337 | 339 | 192 | ||||||||||
Other, net | 8 | 384 | 57 | ||||||||||
Provision for income taxes | $ | 15,159 | $ | 12,450 | $ | 10,096 | |||||||
Summary of Net Deferred Tax Asset | The net deferred tax asset consisted of the following: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan and lease losses | $ | 13,014 | $ | 12,688 | |||||||||
Share based compensation plans | 686 | 553 | |||||||||||
Purchase accounting fair market value adjustments | 694 | 688 | |||||||||||
Non-accrued interest | 554 | 389 | |||||||||||
Deferred compensation | 1,814 | 1,671 | |||||||||||
Other than temporary impairment loss on investment securities | 255 | 255 | |||||||||||
Unrealized losses on securities available for sale | — | 2,620 | |||||||||||
Unfunded pension benefits | 9 | 20 | |||||||||||
Other, net | 537 | 771 | |||||||||||
Deferred tax assets | 17,563 | 19,655 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Core deposit intangible from acquired companies | 800 | 990 | |||||||||||
Undistributed income from subsidiary not consolidated for tax return purposes (REIT). | 724 | — | |||||||||||
Deferred loan costs | 1,407 | 1,338 | |||||||||||
Prepaid expenses | 460 | 457 | |||||||||||
Depreciation and amortization | 1,438 | 1,514 | |||||||||||
Deferred gain on securities | 194 | 194 | |||||||||||
Unrealized gains on securities available for sale | 862 | — | |||||||||||
Other | 633 | 659 | |||||||||||
Deferred tax liabilities | 6,518 | 5,152 | |||||||||||
Net deferred tax assets, included in other assets | $ | 11,045 | $ | 14,503 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following tables present the computation of basic and diluted earnings per share for the periods presented. | ||||||||||||
Year ended December 31, 2014 | |||||||||||||
Income | Shares | Per share | |||||||||||
(numerator) | (denominator) | amount | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Basic earnings per share | |||||||||||||
Net income available to common shareholders | $ | 31,129 | 37,749 | $ | 0.82 | ||||||||
Less: earnings allocated to participating securities | 222 | 0 | |||||||||||
Net income available to common shareholders | $ | 30,907 | 37,749 | $ | 0.82 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options and restricted stock | — | 120 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders plus assumed conversions | $ | 30,907 | 37,869 | $ | 0.82 | ||||||||
Year ended December 31, 2013 | |||||||||||||
Income | Shares | Per share | |||||||||||
(numerator) | (denominator) | amount | |||||||||||
(in thousands, except per share amounts) | |||||||||||||
Basic earnings per share | |||||||||||||
Net income available to common shareholders | $ | 24,969 | 34,742 | $ | 0.72 | ||||||||
Less: earnings allocated to participating securities | 178 | 0.01 | |||||||||||
Net income available to common shareholders | $ | 24,791 | 34,742 | $ | 0.71 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options and restricted stock | — | 160 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders plus assumed conversions | $ | 24,791 | 34,902 | $ | 0.71 | ||||||||
Year ended December 31, 2012 | |||||||||||||
Income | Shares | Per | |||||||||||
(numerator) | (denominator) | share | |||||||||||
amount | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Basic earnings per share | |||||||||||||
Net income available to common shareholders | $ | 21,122 | 29,000 | $ | 0.73 | ||||||||
Less: earnings allocated to participating securities | 181 | 0.01 | |||||||||||
Net income available to common shareholders | $ | 20,941 | 29,000 | $ | 0.72 | ||||||||
Effect of dilutive securities | |||||||||||||
Stock options and restricted stock | — | 77 | — | ||||||||||
Diluted earnings per share | |||||||||||||
Net income available to common shareholders plus assumed conversions | $ | 20,941 | 29,077 | $ | 0.72 | ||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Fair Value and Portfolio Allocations of Plan Assets | The following table shows the fair value and the portfolio allocations of the assets in the Plan by type of investment as of December 31 for the years presented (dollars in thousands): | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Market | Percent of | Market | Percent of | ||||||||||||||
Value | Assets | Value | Assets | ||||||||||||||
Cash and cash equivalents | $ | 519 | 26 | % | $ | 89 | 5 | % | |||||||||
Fixed Income Mutual funds | 976 | 48 | % | 568 | 29 | % | |||||||||||
U.S. Large-Cap funds | 525 | 26 | % | 466 | 23 | % | |||||||||||
U.S. Mid- and Small-Cap funds | — | — | % | 148 | 7 | % | |||||||||||
U.S. Balanced funds | — | — | % | 315 | 16 | % | |||||||||||
International funds | — | — | % | 301 | 15 | % | |||||||||||
Commodity funds | — | — | % | 100 | 5 | % | |||||||||||
$ | 2,020 | 100 | % | $ | 1,987 | 100 | % | ||||||||||
Summary of Accumulated Benefit Obligation | The accumulated benefit obligation as of December 31 is as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Accumulated postretirement benefit obligation | $ | 2,027 | $ | 2,407 | |||||||||||||
Interest Cost | 94 | 90 | |||||||||||||||
Actuarial (gain) loss | 401 | (295 | ) | ||||||||||||||
Estimated benefit payments | (188 | ) | (175 | ) | |||||||||||||
Total accumulated postretirement benefit obligation | 2,334 | 2,027 | |||||||||||||||
Fair value of plan assets beginning of period | 1,987 | 1,766 | |||||||||||||||
Return on plan assets | 61 | 236 | |||||||||||||||
Benefits paid | (188 | ) | (175 | ) | |||||||||||||
Contribution | 160 | 160 | |||||||||||||||
Fair value of plan assets at end of year | 2,020 | 1,987 | |||||||||||||||
Funded status | (314 | ) | (40 | ) | |||||||||||||
Unrecognized net actuarial loss | — | — | |||||||||||||||
Liability | $ | (314 | ) | $ | (40 | ) | |||||||||||
Accumulated benefit obligation | $ | 2,334 | $ | 2,027 | |||||||||||||
Components of Net Periodic Pension Cost | The components of net periodic pension cost are as follows: | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||
Amortization of actuarial loss | $ | 39 | $ | 82 | $ | 72 | |||||||||||
Interest cost on APBO | 94 | 90 | 87 | ||||||||||||||
Expected return on plan assets | (95 | ) | (72 | ) | (76 | ) | |||||||||||
Net periodic postretirement cost | $ | 38 | $ | 100 | $ | 83 | |||||||||||
Summary of Assumptions Used to Determine Pension Obligation and Net Periodic Pension Cost | The assumptions used to determine the pension obligation and the net periodic pension cost were as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Discounted rate | 0.65 | % | 4.75 | % | |||||||||||||
Expected return on plan assets | N/A | 4.75 | % | ||||||||||||||
Director [Member] | |||||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(in thousands) | |||||||||||||||||
Net periodic plan cost included the following components: | |||||||||||||||||
Service cost | $ | 26 | $ | 29 | $ | 30 | |||||||||||
Interest cost | 39 | 36 | 41 | ||||||||||||||
Amortization of prior service cost | 14 | 21 | 26 | ||||||||||||||
$ | 79 | $ | 86 | $ | 97 | ||||||||||||
Directors_Retirement_Plan_Tabl
Directors Retirement Plan (Tables) (Director [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Director [Member] | |||||||||
Status of Directors Retirement Plan | The measurement date for the accumulated benefit obligation is December 31 of the years presented. | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued plan cost included in other liabilities | $ | 743 | $ | 885 | |||||
Amount not recognized as component of net postretirement benefit cost | |||||||||
Recognized in accumulated other comprehensive income | |||||||||
Net actuarial (gain) loss | ($ | 141 | ) | ($ | 198 | ) | |||
Unrecognized prior service cost | — | — | |||||||
Amounts not recognized as a component of net | ($ | 141 | ) | ($ | 198 | ) | |||
postretirement benefit cost (benefit) | |||||||||
Benefits Expected to be Paid | The director’s retirement plan holds no plan assets. The benefits expected to be paid in each of the next five years and in aggregate for the five years thereafter are as follows (in thousands): | ||||||||
2015 | $ | 75 | |||||||
2016 | 75 | ||||||||
2017 | 70 | ||||||||
2018 | 68 | ||||||||
2019 | 50 | ||||||||
2020-2024 | 150 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Pricing Model | The fair value of these options were estimated using the Black-Scholes pricing model with the following weighted average assumptions: | ||||||||||||||||
Risk-free interest rates | 1.55 | % | |||||||||||||||
Expected dividend yield | 2.82 | % | |||||||||||||||
Expected volatility | 45.45 | % | |||||||||||||||
Expected lives (years) | 7 | ||||||||||||||||
Weighted average fair value of options granted | $ | 3.31 | |||||||||||||||
Summary of Status of Company's Option Plans and Changes During Year | A summary of the status of the Company’s option plans as of December 31, 2014 and the changes during the year ending on that date is represented below. | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
shares | average | average | Intrinsic | ||||||||||||||
exercise | remaining | Value | |||||||||||||||
price | contractual | ||||||||||||||||
term | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding, beginning of year | 514,626 | $ | 10.67 | $ | 754,938 | ||||||||||||
Granted | — | — | |||||||||||||||
Exercised | (11,900 | ) | 7.52 | ||||||||||||||
Expired | (156,334 | ) | 12.45 | ||||||||||||||
Forfeited | (34,687 | ) | 12.57 | ||||||||||||||
Outstanding, end of year | 311,705 | $ | 9.69 | 4.13 | $ | 681,861 | |||||||||||
Options exercisable at year-end | 280,204 | $ | 9.71 | 3.64 | $ | 610,039 | |||||||||||
Summary of Company's Non-Vested Options Under Company's Option Plans | A summary of the Company’s non-vested options under the Company’s option plans as of December 31, 2014 and changes for the year then ended is presented below. | ||||||||||||||||
Non-vested Options | Shares | Weighted- | |||||||||||||||
Average | |||||||||||||||||
Grant- | |||||||||||||||||
date Fair | |||||||||||||||||
Value | |||||||||||||||||
Non-vested, January 1, 2014 | 47,789 | $ | 3.27 | ||||||||||||||
Granted | — | — | |||||||||||||||
Vested | (16,288 | ) | 3.2 | ||||||||||||||
Non-vested, December 31, 2014 | 31,501 | $ | 3.31 | ||||||||||||||
Summary of Company's Restricted Stock | Information regarding the Company’s restricted stock for the year ended December 31, 2014 is as follows: | ||||||||||||||||
Number | Weighted | ||||||||||||||||
of shares | average | ||||||||||||||||
price | |||||||||||||||||
Outstanding, January 1, 2014 | 262,270 | $ | 9.12 | ||||||||||||||
Granted | 1,942 | 11.21 | |||||||||||||||
Vested | (100,694 | ) | 9.01 | ||||||||||||||
Forfeited | (3,234 | ) | 9.39 | ||||||||||||||
Outstanding, December 31, 2014 | 160,284 | $ | 9.21 | ||||||||||||||
Information regarding the Company’s RSUs (all unvested) and changes during the year ended December 31, 2014 is as follows: | |||||||||||||||||
Number | Weighted | ||||||||||||||||
of shares | average | ||||||||||||||||
price | |||||||||||||||||
Outstanding, January 1, 2014 | 0 | $ | 0 | ||||||||||||||
Granted | 127,791 | 10.65 | |||||||||||||||
Vested | (29,135 | ) | 10.66 | ||||||||||||||
Forfeited | (121 | ) | 10.66 | ||||||||||||||
Outstanding, December 31, 2014 | 98,535 | $ | 10.64 | ||||||||||||||
Somerset Hills Bancorp [Member] | |||||||||||||||||
Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Pricing Model | The fair value of these options were estimated using the Black Scholes pricing model with the following range of assumptions: | ||||||||||||||||
Risk-free interest rates | 0.04%—1.55% | ||||||||||||||||
Expected dividend yield | 2.82% | ||||||||||||||||
Expected volatility | 13% to 47% | ||||||||||||||||
Expected lives (years) | 3 months—7 years | ||||||||||||||||
Weighted average fair value of options granted | $3.79 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Aggregate Future Minimum Commitments of Lease Payments | At December 31, 2014, the minimum commitments under all noncancellable leases with remaining terms of more than one year and expiring through 2033 are as follows (in thousands): | ||||
Year | |||||
2015 | $ | 2,469 | |||
2016 | 2,146 | ||||
2017 | 1,831 | ||||
2018 | 1,578 | ||||
2019 | 1,357 | ||||
Thereafter | 14,896 | ||||
$ | 24,277 | ||||
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
Summary of Approximate Contract Amounts of Collateral or Other Security to Support Financial Instruments with Credit Risk | Lakeland generally requires collateral or other security to support financial instruments with credit risk. The approximate contract amounts are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Financial instruments whose contract amounts represent credit risk | |||||||||
Commitments to extend credit | $ | 621,305 | $ | 589,619 | |||||
Standby letters of credit and financial guarantees written | 10,449 | 9,244 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income | The following table shows the changes in the balances of each of the components of other comprehensive income for the periods presented: | ||||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Before tax | Tax | Net of | |||||||||||||||||||||||||||||||||||
amount | Benefit | tax amount | |||||||||||||||||||||||||||||||||||
(Expense) | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | |||||||||||||||||||||||||||||||||||||
Unrealized holding gains arising during period | $ | 9,663 | $ | (3,483 | ) | $ | 6,180 | ||||||||||||||||||||||||||||||
Less reclassification adjustment for net gains realized in net income | 3 | (1 | ) | 2 | |||||||||||||||||||||||||||||||||
Net unrealized gains on available for sale securities | 9,660 | (3,482 | ) | 6,178 | |||||||||||||||||||||||||||||||||
Change in pension liabilities | 31 | (11 | ) | 20 | |||||||||||||||||||||||||||||||||
Other comprehensive income, net | $ | 9,691 | $ | (3,493 | ) | $ | 6,198 | ||||||||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Before | Tax | Net of | |||||||||||||||||||||||||||||||||||
tax | Benefit | tax | |||||||||||||||||||||||||||||||||||
amount | (Expense) | amount | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Unrealized losses on available for sale securities | |||||||||||||||||||||||||||||||||||||
Unrealized holding losses arising during period | $ | (13,675 | ) | $ | 4,985 | $ | (8,690 | ) | |||||||||||||||||||||||||||||
Less reclassification adjustment for net gains realized in net income | 839 | (330 | ) | 509 | |||||||||||||||||||||||||||||||||
Net unrealized losses on available for sale securities | (14,514 | ) | 5,315 | (9,199 | ) | ||||||||||||||||||||||||||||||||
Change in pension liabilities | 866 | (278 | ) | 588 | |||||||||||||||||||||||||||||||||
Other comprehensive loss, net | $ | (13,648 | ) | $ | 5,037 | $ | (8,611 | ) | |||||||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
Before | Tax | Net of | |||||||||||||||||||||||||||||||||||
tax | Benefit | tax | |||||||||||||||||||||||||||||||||||
amount | (Expense) | amount | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Unrealized gains on available for sale securities | |||||||||||||||||||||||||||||||||||||
Unrealized holding gains arising during period | $ | 2,697 | $ | (969 | ) | $ | 1,728 | ||||||||||||||||||||||||||||||
Less reclassification adjustment for net gains realized in net income | 1,049 | (367 | ) | 682 | |||||||||||||||||||||||||||||||||
Net unrealized gains on available for sale securities | 1,648 | (602 | ) | 1,046 | |||||||||||||||||||||||||||||||||
Change in pension liabilities | 30 | (11 | ) | 19 | |||||||||||||||||||||||||||||||||
Other comprehensive income, net | $ | 1,678 | $ | (613 | ) | $ | 1,065 | ||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||||||||||||
For the Year Ended | For the Year Ended | For the Year Ended | |||||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||
Unrealized | Pension Items | Total | Unrealized | Pension Items | Total | Unrealized | Pension Items | Total | |||||||||||||||||||||||||||||
Gains and | Gains and | Gains and | |||||||||||||||||||||||||||||||||||
Losses on | Losses on | Losses on | |||||||||||||||||||||||||||||||||||
Available- | Available- | Available- | |||||||||||||||||||||||||||||||||||
for-sale | for-sale | for-sale | |||||||||||||||||||||||||||||||||||
Securities | Securities | Securities | |||||||||||||||||||||||||||||||||||
Beginning Balance | ($ | 4,647 | ) | ($ | 28 | ) | ($ | 4,675 | ) | $ | 4,552 | ($ | 616 | ) | $ | 3,936 | $ | 3,506 | ($ | 635 | ) | $ | 2,871 | ||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before classifications | 6,180 | 20 | 6,200 | (8,690 | ) | 588 | (8,102 | ) | 1,728 | 19 | 1,747 | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | (2 | ) | — | (2 | ) | (509 | ) | — | (509 | ) | (682 | ) | — | (682 | ) | ||||||||||||||||||||||
Net current period other comprehensive income (loss) | 6,178 | 20 | 6,198 | (9,199 | ) | 588 | (8,611 | ) | 1,046 | 19 | 1,065 | ||||||||||||||||||||||||||
Ending balance | $ | 1,531 | ($ | 8 | ) | $ | 1,523 | ($ | 4,647 | ) | ($ | 28 | ) | ($ | 4,675 | ) | $ | 4,552 | ($ | 616 | ) | $ | 3,936 | ||||||||||||||
* | All amounts are net of tax. |
Fair_Value_Measurement_and_Fai1
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Financial Assets and Liabilities are Classified | Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | ||||||||||||||||||||
December 31, 2014 | Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||||||
Active Markets | Other | Unobservable | Value | ||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||
Assets | Inputs | (Level 3) | |||||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, available for sale | |||||||||||||||||||||
U.S. treasury and government agencies | $ | 8,321 | 85,599 | $ | — | $ | 93,920 | ||||||||||||||
Mortgage backed securities | — | 314,931 | — | 314,931 | |||||||||||||||||
Obligations of states and political subdivisions | — | 30,519 | — | 30,519 | |||||||||||||||||
Corporate debt securities | — | 505 | — | 505 | |||||||||||||||||
Equity securities | 4,154 | 13,420 | — | 17,574 | |||||||||||||||||
Total securities available for sale | 12,475 | 444,974 | — | 457,449 | |||||||||||||||||
Other Assets(a) | — | 37 | — | 37 | |||||||||||||||||
Total Assets | $ | 12,475 | 445,011 | — | $ | 457,486 | |||||||||||||||
Other Liabilities(a) | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||||||
Total Liabilities | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||||||
(a) | Non-hedging interest rate derivatives | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Investment securities, available for sale | |||||||||||||||||||||
U.S. treasury and government agencies | $ | 4,330 | $ | 65,835 | $ | — | $ | 70,165 | |||||||||||||
Mortgage backed securities | — | 304,502 | — | 304,502 | |||||||||||||||||
Obligations of states and political subdivisions | — | 36,873 | — | 36,873 | |||||||||||||||||
Corporate debt securities | — | 3,420 | — | 3,420 | |||||||||||||||||
Equity securities | 3,239 | 12,907 | — | 16,146 | |||||||||||||||||
Total securities available for sale | 7,569 | 423,537 | — | 431,106 | |||||||||||||||||
Other Assets(a) | — | 562 | — | 562 | |||||||||||||||||
Total Assets | $ | 7,569 | $ | 424,099 | $ | — | $ | 431,668 | |||||||||||||
Other Liabilities(a) | $ | — | $ | 562 | $ | — | $ | 562 | |||||||||||||
Total Liabilities | $ | — | $ | 562 | $ | — | $ | 562 | |||||||||||||
(a) | Non-hedging interest rate derivatives | ||||||||||||||||||||
Assets are Classified in their Entirety Based on Lowest Level of Input that is Significant to Fair Value Measurement | The following table sets forth the Company’s financial assets subject to fair value adjustments (impairment) on a nonrecurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | ||||||||||||||||||||
December 31, 2014 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Fair Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired Loans and Leases | $ | — | $ | — | $ | 25,693 | $ | 25,693 | |||||||||||||
Loans held for sale | — | 592 | — | 592 | |||||||||||||||||
Other real estate owned and other repossessed assets | — | — | 1,026 | 1,026 | |||||||||||||||||
December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||
Fair Value | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired Loans and Leases | $ | — | $ | — | $ | 24,619 | $ | 24,619 | |||||||||||||
Loans held for sale | — | 1,206 | — | 1,206 | |||||||||||||||||
Other real estate owned and other repossessed assets | — | — | 520 | 520 | |||||||||||||||||
Carrying Values and Fair Values of Company's Financial Instruments | The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2014 and December 31, 2013: | ||||||||||||||||||||
December 31, 2014 | Carrying | Fair Value | Quoted Prices in | Significant | Significant | ||||||||||||||||
Value | Active Markets | Other | Unobservable | ||||||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||||||
Assets (Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial Instruments—Assets | |||||||||||||||||||||
Investment securities held to maturity | $ | 107,976 | $ | 109,030 | $ | — | $ | 103,916 | $ | 5,114 | |||||||||||
Federal Home Loan and other membership bank stock | 9,846 | 9,846 | — | 9,846 | — | ||||||||||||||||
Loans and leases, net | 2,623,142 | 2,624,581 | — | — | 2,624,581 | ||||||||||||||||
Financial Instruments—Liabilities | |||||||||||||||||||||
Certificates of Deposit | 279,962 | 279,439 | — | 279,439 | — | ||||||||||||||||
Other borrowings | 202,498 | 205,343 | — | 205,343 | — | ||||||||||||||||
Subordinated debentures | 41,238 | 30,929 | — | — | 30,929 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Investment securities held to maturity | $ | 101,744 | $ | 100,394 | $ | — | $ | 95,194 | $ | 5,200 | |||||||||||
Federal Home Loan and other membership bank stock | 7,938 | 7,938 | — | 7,938 | — | ||||||||||||||||
Loans and leases | 2,439,195 | 2,432,447 | — | — | 2,432,447 | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Certificates of Deposit | 296,086 | 296,237 | — | 296,237 | — | ||||||||||||||||
Other borrowings | 119,000 | 121,870 | — | 121,870 | — | ||||||||||||||||
Subordinated debentures | 41,238 | 27,835 | — | — | 27,835 |
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
Summary Information Regarding Derivatives | The following table presents summary information regarding these derivatives for the periods presented (dollars in thousands): | ||||||||||||||||||||
December 31, 2014 | Notional Amount | Average | Weighted Average | Weighted Average | Fair Value | ||||||||||||||||
Maturity (Years) | Rate Fixed | Variable Rate | |||||||||||||||||||
3rd party interest rate swaps | $ | 17,279 | 5.7 | 3.84 | % | 1Mo Libor + 2.21 | ($ | 37 | ) | ||||||||||||
Customer interest rate swaps | (17,279 | ) | 5.7 | 3.84 | % | 1Mo Libor + 2.21 | 37 | ||||||||||||||
December 31, 2013 | Notional Amount | Average | Weighted Average | Weighted Average | Fair Value | ||||||||||||||||
Maturity (Years) | Rate Fixed | Variable Rate | |||||||||||||||||||
3rd party interest rate swaps | $ | 17,691 | 6.7 | 3.83 | % | 1Mo Libor + 2.21 | ($ | 562 | ) | ||||||||||||
Customer interest rate swaps | (17,691 | ) | 6.7 | 3.83 | % | 1Mo Libor + 2.21 | $ | 562 |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Summary of Capital Ratios | As of December 31, 2014 and 2013, the Company and Lakeland have the following capital ratios: | ||||||||||||||||||||||||
Actual | For capital | To be well capitalized | |||||||||||||||||||||||
adequacy purposes | under prompt | ||||||||||||||||||||||||
corrective action | |||||||||||||||||||||||||
provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 337,597 | 12.98 | % | >$ | 208,024 | >8.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 314,047 | 12.1 | 207,714 | 8 | >$ | 259,642 | >10.00 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 305,814 | 11.76 | % | >$ | 104,012 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 282,267 | 10.87 | 103,857 | 4 | > | 155,785 | >6.00 | % | |||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||
Company | $ | 305,814 | 9.08 | % | >$ | 134,760 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 282,267 | 8.39 | 134,614 | 4 | > | 168,268 | >5.00 | % | |||||||||||||||||
Actual | For capital | To be well capitalized | |||||||||||||||||||||||
adequacy purposes | under prompt corrective | ||||||||||||||||||||||||
action provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 313,499 | 12.98 | % | >$ | 193,166 | >8.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 296,334 | 12.29 | 192,819 | 8 | >$ | 241,023 | >10.00 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||
Company | $ | 283,307 | 11.73 | % | >$ | 96,583 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 266,195 | 11.04 | 96,409 | 4 | > | 144,614 | >6.00 | % | |||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||
Company | $ | 283,307 | 8.9 | % | >$ | 127,281 | >4.00 | % | N/A | N/A | |||||||||||||||
Lakeland | 266,195 | 8.38 | 127,104 | 4 | > | 158,879 | >5.00 | % |
Condensed_Financial_Informatio1
Condensed Financial Information - Parent Company Only (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Condensed Balance Sheets | CONDENSED BALANCE SHEETS | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 11,893 | $ | 7,478 | |||||||||
Investment securities available for sale | 4,162 | 3,248 | |||||||||||
Investment in subsidiaries | 395,664 | 374,738 | |||||||||||
Other assets | 9,344 | 7,530 | |||||||||||
TOTAL ASSETS | $ | 421,063 | $ | 392,994 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Other liabilities | $ | 387 | $ | 332 | |||||||||
Subordinated debentures | 41,238 | 41,238 | |||||||||||
Total stockholders’ equity | 379,438 | 351,424 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 421,063 | $ | 392,994 | |||||||||
Condensed Statements of Operations | CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||
Years Ended | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
INCOME | |||||||||||||
Dividends from subsidiaries | $ | 16,581 | $ | 20,916 | $ | 31,300 | |||||||
Other income | 102 | 1,640 | 403 | ||||||||||
TOTAL INCOME | 16,683 | 22,556 | 31,703 | ||||||||||
EXPENSE | |||||||||||||
Interest on subordinated debentures | 1,068 | 1,286 | 3,664 | ||||||||||
Noninterest expenses | 313 | 2,551 | 1,718 | ||||||||||
TOTAL EXPENSE | 1,381 | 3,837 | 5,382 | ||||||||||
Income before benefit for income taxes | 15,302 | 18,719 | 26,321 | ||||||||||
Income taxes benefit | (447 | ) | (722 | ) | (1,654 | ) | |||||||
Income before equity in undistributed income of subsidiaries | 15,749 | 19,441 | 27,975 | ||||||||||
Equity in undistributed income (loss) of subsidiaries | 15,380 | 5,528 | (6,233 | ) | |||||||||
NET INCOME | $ | 31,129 | $ | 24,969 | $ | 21,742 | |||||||
Interest on preferred stock and discount accretion | — | — | 620 | ||||||||||
Net Income Available to Common Shareholders | $ | 31,129 | $ | 24,969 | $ | 21,122 | |||||||
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
Net income | $ | 31,129 | $ | 24,969 | $ | 21,742 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Share based compensation | — | 895 | 746 | ||||||||||
Gain on securities | — | (359 | ) | — | |||||||||
Gain on land held for sale | — | — | (235 | ) | |||||||||
Gain on early extinguishment | — | (1,197 | ) | — | |||||||||
Increase in other assets | (174 | ) | (954 | ) | (1,553 | ) | |||||||
(Decrease) increase in other liabilities | (46 | ) | 25 | (610 | ) | ||||||||
Equity in undistributed (income) loss of subsidiaries | (15,380 | ) | (5,528 | ) | 6,233 | ||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 15,529 | 17,851 | 26,323 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||
Net cash used in acquisition | — | (6,233 | ) | — | |||||||||
Purchases of securities | (471 | ) | (415 | ) | (53 | ) | |||||||
Sale of land held for sale | 60 | — | 1,042 | ||||||||||
Proceeds from sale of securities available for sale | — | 654 | — | ||||||||||
Contribution to subsidiary | — | — | — | ||||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (411 | ) | (5,994 | ) | 989 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||
Cash dividends paid on common and preferred stock | (10,836 | ) | (8,152 | ) | (5,992 | ) | |||||||
Issuance of stock to the dividend reinvestment and stock purchase plan | 77 | 186 | 160 | ||||||||||
Proceeds on issuance of stock, net | — | — | 25,040 | ||||||||||
Redemption of subordinated debentures, net | — | (9,113 | ) | (25,000 | ) | ||||||||
Redemption of preferred stock | — | — | (19,000 | ) | |||||||||
Warrant repurchase | — | — | (2,800 | ) | |||||||||
Retirement of Restricted stock | (104 | ) | — | — | |||||||||
Excess tax benefits | 70 | 142 | 4 | ||||||||||
Exercise of stock options | 90 | 2,209 | — | ||||||||||
NET CASH USED IN FINANCING ACTIVITIES | (10,703 | ) | (14,728 | ) | (27,588 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 4,415 | (2,871 | ) | (276 | ) | ||||||||
Cash and cash equivalents, beginning of year | 7,478 | 10,349 | 10,625 | ||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 11,893 | $ | 7,478 | $ | 10,349 | |||||||
Summary_of_Accounting_Policies3
Summary of Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | |
Segment | ||||
Significant Accounting Policies [Line Items] | ||||
Number of operating segments | 1 | |||
Principal and interest default period | 90 days | |||
Residential mortgage loans are placed on non-accrual status at the time principal and interest period | 90 days | |||
Period of principal and interest payments in arrears for Consumer loans are reviewed for charge-off | 4 months | |||
Non-accrual asset satisfactory payments period | 6 months | |||
Impaired commercial loans that places into homogeneous pool for collective evaluation | $500,000 | |||
Mortgage held for sale | 592,000 | 1,200,000 | ||
Servicing of mortgages | 33,900,000 | 37,800,000 | ||
Originated mortgage servicing rights | 217,000 | 274,000 | ||
Common stock, shares authorized | 70,000,000 | 70,000,000 | ||
Cash and cash equivalents maturity original period | Three months or less | |||
Cash and cash equivalents maturity period | 3 months | |||
Goodwill | 109,974,000 | 109,974,000 | ||
Core deposit intangible assets | 2,000,000 | 2,400,000 | ||
Core deposit amortization assets | 464,000 | 288,000 | ||
Percentage of fair value reporting unit | 50.00% | |||
Bank owned life insurance | 57,476,000 | 55,968,000 | ||
Income on bank owned life insurance | 1,453,000 | 1,410,000 | 1,344,000 | |
Company's liability to trusts including investments | 40,000,000 | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill likelihood probability percentage | 50.00% | |||
Percentage of capital permitted for trust preferred securities | 25.00% | |||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill likelihood probability percentage | 50.00% | |||
Somerset Hills Bancorp [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | 22,900,000 | 22,862,000 | ||
Core deposit intangible assets | 2,700,000 | |||
Prior Acquisitions [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill | $87,100,000 | |||
2009 Equity Compensation Program [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Issuance of stock options | 2,300,000 | |||
Expiration period of stock option plan | 10 years | |||
Expiration period of after termination of service of plan | 90 days | |||
Expiration period of after death or disability of the grantee | 1 year | |||
2000 Equity Compensation Plan [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Issuance of stock options | 2,613,185 | |||
Expiration period of stock option plan | 10 years | |||
Expiration period of after termination of service of plan | 30 days | |||
Expiration period of after death or disability of the grantee | 1 year | |||
Common stock, shares authorized | 2,613,185 |
Summary_of_Accounting_Policies4
Summary of Accounting Policies - Supplemental Schedule of Non-cash Investing and Financing Activities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Transfer of loans and leases receivable to other real estate owned and other repossessed assets | $1,867 | $3,565 | $1,068 |
Cash paid for income taxes | 15,067 | 12,051 | 9,382 |
Cash paid for interest | 8,882 | 10,804 | 16,334 |
Non-cash assets acquired: | |||
Investment securities available for sale | 1,777 | ||
Investment securities held for maturity | 8,686 | ||
Loans, including loans held for sale | 246,459 | ||
Goodwill and other intangible assets, net | 25,574 | ||
Other assets | 15,653 | ||
Total non-cash assets acquired | 298,149 | ||
Liabilities assumed: | |||
Deposits | 311,801 | ||
Other liabilities | 1,745 | ||
Total liabilities assumed | 313,546 | ||
Common stock issued and fair value of stock options converted to Lakeland Bancorp stock options | $58,919 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | |
Business Acquisition, Contingent Consideration [Line Items] | |||
Allowance for loan and lease losses | $0 | ||
Core deposit intangible | 2,700,000 | ||
Estimated useful life of deposit intangible | 10 years | ||
Merger and acquisition integration-related expenses | 2,834,000 | ||
Amortization of core deposit intangible | 464,000 | 288,000 | |
Somerset Hills Bancorp [Member] | |||
Business Acquisition, Contingent Consideration [Line Items] | |||
Date of Agreement | 31-May-13 | ||
Shares received by the Somerset Hills Bancorp at the time of merger | 1.256 | ||
Cash received by the Somerset Hills Bancorp at the time of merger | $12 | ||
Percentage of aggregate merger consideration in shares | 90.00% | ||
Percentage of aggregate merger consideration in cash | 10.00% | ||
Common stock expected to issue | 6,083,783 | ||
Transaction value | $6,460,000 |
Acquisitions_Summary_of_Estima
Acquisitions - Summary of Estimated Fair Value of Acquired Assets and Liabilities (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Fair value of Somerset Hills stock options converted to Lakeland Bancorp stock options | $1,500 | ||
Recognized amounts of identifiable assets and liabilities assumed at fair value | |||
Goodwill | 109,974 | 109,974 | |
Somerset Hills Bancorp [Member] | |||
Business Acquisition [Line Items] | |||
Lakeland Bancorp stock issued | 57,419 | ||
Cash Payment | 6,460 | ||
Fair value of Somerset Hills stock options converted to Lakeland Bancorp stock options | 1,500 | ||
Total Consideration Paid | 65,379 | ||
Recognized amounts of identifiable assets and liabilities assumed at fair value | |||
Cash and cash equivalents | 80,776 | ||
Securities available for sale | 1,777 | ||
Securities held to maturity | 8,686 | ||
Federal Home Loan Bank stock | 493 | ||
Loans and leases | 243,927 | ||
Loans held for sale | 2,532 | ||
Premises and equipment | 5,214 | ||
Identifiable intangible assets | 2,712 | ||
Accrued interest receivable and other assets | 9,946 | ||
Deposits | -311,801 | ||
Other liabilities | -1,745 | ||
Total identifiable assets | 42,517 | ||
Goodwill | $22,862 | $22,900 |
Acquisitions_Summary_of_Loans_
Acquisitions - Summary of Loans Acquired (Detail) (Somerset Hills Bancorp [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $356,655 |
Contractual cash flows not expected to be collected (non-accretable difference) | 2,541 |
Expected cash flows at acquisition | 354,114 |
Interest component of expected cash flows (accretable difference) | 107,655 |
Fair value of acquired loans, including mortgages held for sale | 246,459 |
Acquired Credit Impaired Loans [Member] | |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | 4,507 |
Contractual cash flows not expected to be collected (non-accretable difference) | 2,541 |
Expected cash flows at acquisition | 1,966 |
Interest component of expected cash flows (accretable difference) | 322 |
Fair value of acquired loans, including mortgages held for sale | 1,644 |
Acquired Non-Credit Impaired Loans [Member] | |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | 352,148 |
Expected cash flows at acquisition | 352,148 |
Interest component of expected cash flows (accretable difference) | 107,333 |
Fair value of acquired loans, including mortgages held for sale | $244,815 |
Acquisitions_Estimated_of_Futu
Acquisitions - Estimated of Future Amortization Expense (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $415 |
2016 | 366 |
2017 | 316 |
2018 | 267 |
2019 | $218 |
Investment_Securities_Reconcil
Investment Securities - Reconciliation of Available-for-Sale Securities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $455,055 | $438,372 |
Gross Unrealized Gains | 5,620 | 3,800 |
Gross Unrealized Losses | -3,226 | -11,066 |
Total securities, Available for Sale, Fair Value | 457,449 | 431,106 |
U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 94,466 | 72,828 |
Gross Unrealized Gains | 261 | |
Gross Unrealized Losses | -807 | -2,663 |
Total securities, Available for Sale, Fair Value | 93,920 | 70,165 |
Mortgage-Backed Securities, Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 309,162 | 310,088 |
Gross Unrealized Gains | 2,868 | 1,752 |
Gross Unrealized Losses | -2,075 | -7,338 |
Total securities, Available for Sale, Fair Value | 309,955 | 304,502 |
Mortgage-Backed Securities, Multifamily [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,973 | |
Gross Unrealized Gains | 3 | |
Total securities, Available for Sale, Fair Value | 4,976 | |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 29,764 | 36,482 |
Gross Unrealized Gains | 888 | 914 |
Gross Unrealized Losses | -133 | -523 |
Total securities, Available for Sale, Fair Value | 30,519 | 36,873 |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 494 | 3,541 |
Gross Unrealized Gains | 11 | 37 |
Gross Unrealized Losses | -158 | |
Total securities, Available for Sale, Fair Value | 505 | 3,420 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,196 | 15,433 |
Gross Unrealized Gains | 1,589 | 1,097 |
Gross Unrealized Losses | -211 | -384 |
Total securities, Available for Sale, Fair Value | $17,574 | $16,146 |
Investment_Securities_Reconcil1
Investment Securities - Reconciliation of Held-to-Maturity Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $107,976 | $101,744 |
Gross Unrealized Gains | 1,673 | 1,187 |
Gross Unrealized Losses | -619 | -2,537 |
Fair Value | 109,030 | 100,394 |
U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 20,477 | 19,732 |
Gross Unrealized Gains | 232 | 3 |
Gross Unrealized Losses | -84 | -576 |
Fair Value | 20,625 | 19,159 |
Mortgage-Backed Securities, Residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 42,309 | 34,596 |
Gross Unrealized Gains | 645 | 524 |
Gross Unrealized Losses | -385 | -1,025 |
Fair Value | 42,569 | 34,095 |
Mortgage-Backed Securities, Multifamily [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,259 | 2,355 |
Gross Unrealized Losses | -60 | -166 |
Fair Value | 2,199 | 2,189 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 41,401 | 43,521 |
Gross Unrealized Gains | 658 | 495 |
Gross Unrealized Losses | -90 | -770 |
Fair Value | 41,969 | 43,246 |
Other Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,530 | 1,540 |
Gross Unrealized Gains | 138 | 165 |
Fair Value | $1,668 | $1,705 |
Investment_Securities_Summary_
Investment Securities - Summary of Contractual Maturities of Investment Securities Classified as Available for Sale and Held to Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available for Sale, Amortized Cost | ||
Due in one year or less | $967 | |
Due after one year through five years | 80,286 | |
Due after five years through ten years | 42,185 | |
Due after ten years | 1,286 | |
Total | 124,724 | |
Total securities, Available for Sale, Amortized Cost | 455,055 | 438,372 |
Available for Sale, Fair Value | ||
Due in one year or less | 975 | |
Due after one year through five years | 80,246 | |
Due after five years through ten years | 42,459 | |
Due after ten years | 1,264 | |
Total | 124,944 | |
Total securities, Available for Sale, Fair Value | 457,449 | 431,106 |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 8,845 | |
Due after one year through five years | 13,612 | |
Due after five years through ten years | 35,277 | |
Due after ten years | 5,674 | |
Total | 63,408 | |
Amortized Cost | 107,976 | 101,744 |
Held to Maturity, Fair Value | ||
Due in one year or less | 8,897 | |
Due after one year through five years | 13,951 | |
Due after five years through ten years | 35,701 | |
Due after ten years | 5,713 | |
Total | 64,262 | |
Total securities, Held to Maturity, Fair Value | 109,030 | 100,394 |
Mortgage-Backed Securities, Residential [Member] | ||
Available for Sale, Amortized Cost | ||
Available for Sale, Amortized Cost | 314,135 | |
Total securities, Available for Sale, Amortized Cost | 309,162 | 310,088 |
Available for Sale, Fair Value | ||
Available for Sale, Fair Value | 314,931 | |
Total securities, Available for Sale, Fair Value | 309,955 | 304,502 |
Held to Maturity, Amortized Cost | ||
Held to Maturity, Amortized Cost | 44,568 | |
Held to Maturity, Fair Value | ||
Held to Maturity, Fair Value | 44,768 | |
Equity Securities [Member] | ||
Available for Sale, Amortized Cost | ||
Available for Sale, Amortized Cost | 16,196 | |
Total securities, Available for Sale, Amortized Cost | 16,196 | 15,433 |
Available for Sale, Fair Value | ||
Available for Sale, Fair Value | 17,574 | |
Total securities, Available for Sale, Fair Value | $17,574 | $16,146 |
Investment_Securities_Sales_of
Investment Securities - Sales of Securities, Gross Gains and Gross Losses on Sales of Securities (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | |||
Sale proceeds | $17,020 | $64,020 | $97,824 |
Gross gains | 346 | 893 | 1,364 |
Gross losses | ($344) | ($54) | ($315) |
Investment_Securities_Addition
Investment Securities - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ||
Held to maturity mortgage-backed securities sales | $1,400,000 | |
Mortgage-backed securities principal paid down | 90.00% | |
Gain on sales of mortgage-backed securities | 73,000 | |
Securities, carrying value | 356,100,000 | 324,800,000 |
Purchase price of equities | 2,600,000 | |
Market value of equities | 4,200,000 | |
Equity securities included in investment funds | 13,400,000 | |
Investment in community development loans | 2,900,000 | |
Redemption of funds | 60 days | |
Investment in government guaranteed loans, mortgage-backed securities, small business loans | 10,500,000 | |
Amortized cost of securities | 10,600,000 | |
Fair value of securities | 10,500,000 | |
Unfunded commitments | $0 |
Investment_Securities_Reconcil2
Investment Securities - Reconciliation of Available-for-Sale and Held-to-Maturity Securities in Continuous Unrealized Loss Position (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Security | Security | |
Investment [Line Items] | ||
Available for Sale, Less than 12 months, Fair value | $41,155 | $255,927 |
Available for Sale, Less than 12 months, Unrealized Losses | 234 | 9,721 |
Available for Sale, 12 months or longer, Fair value | 130,401 | 23,831 |
Available for Sale, 12 months or longer, Unrealized Losses | 2,992 | 1,345 |
Available for Sale, Number of securities | 53 | 92 |
Available for Sale, Total, Fair value | 171,556 | 279,758 |
Available for Sale, Total, Unrealized Losses | 3,226 | 11,066 |
Held to Maturity, Less than 12 months, Fair value | 7,526 | 55,813 |
Held to Maturity, Less than 12 months, Unrealized Losses | 57 | 2,171 |
Held to Maturity, 12 months or longer, Fair value | 29,698 | 3,847 |
Held to Maturity, 12 months or longer, Unrealized Losses | 562 | 366 |
Held to Maturity, Number of securities | 24 | 69 |
Held to Maturity, Total, Fair value | 37,224 | 59,660 |
Held to Maturity, Total, Unrealized Losses | 619 | 2,537 |
U.S. Treasury and U.S. Government Agencies [Member] | ||
Investment [Line Items] | ||
Available for Sale, Less than 12 months, Fair value | 5,057 | 70,165 |
Available for Sale, Less than 12 months, Unrealized Losses | 28 | 2,663 |
Available for Sale, 12 months or longer, Fair value | 46,135 | |
Available for Sale, 12 months or longer, Unrealized Losses | 779 | |
Available for Sale, Number of securities | 11 | 16 |
Available for Sale, Total, Fair value | 51,192 | 70,165 |
Available for Sale, Total, Unrealized Losses | 807 | 2,663 |
Held to Maturity, Less than 12 months, Fair value | 14,153 | |
Held to Maturity, Less than 12 months, Unrealized Losses | 576 | |
Held to Maturity, 12 months or longer, Fair value | 5,736 | |
Held to Maturity, 12 months or longer, Unrealized Losses | 84 | |
Held to Maturity, Number of securities | 1 | 5 |
Held to Maturity, Total, Fair value | 5,736 | 14,153 |
Held to Maturity, Total, Unrealized Losses | 84 | 576 |
Mortgage-Backed Securities, Residential [Member] | ||
Investment [Line Items] | ||
Available for Sale, Less than 12 months, Fair value | 34,832 | 177,262 |
Available for Sale, Less than 12 months, Unrealized Losses | 177 | 6,730 |
Available for Sale, 12 months or longer, Fair value | 74,414 | 10,724 |
Available for Sale, 12 months or longer, Unrealized Losses | 1,898 | 608 |
Available for Sale, Number of securities | 28 | 51 |
Available for Sale, Total, Fair value | 109,246 | 187,986 |
Available for Sale, Total, Unrealized Losses | 2,075 | 7,338 |
Held to Maturity, Less than 12 months, Fair value | 6,236 | 22,939 |
Held to Maturity, Less than 12 months, Unrealized Losses | 50 | 889 |
Held to Maturity, 12 months or longer, Fair value | 17,557 | 1,097 |
Held to Maturity, 12 months or longer, Unrealized Losses | 335 | 136 |
Held to Maturity, Number of securities | 8 | 11 |
Held to Maturity, Total, Fair value | 23,793 | 24,036 |
Held to Maturity, Total, Unrealized Losses | 385 | 1,025 |
Mortgage-Backed Securities, Multifamily [Member] | ||
Investment [Line Items] | ||
Held to Maturity, Less than 12 months, Fair value | 895 | |
Held to Maturity, Less than 12 months, Unrealized Losses | 99 | |
Held to Maturity, 12 months or longer, Fair value | 2,199 | 1,294 |
Held to Maturity, 12 months or longer, Unrealized Losses | 60 | 67 |
Held to Maturity, Number of securities | 2 | 2 |
Held to Maturity, Total, Fair value | 2,199 | 2,189 |
Held to Maturity, Total, Unrealized Losses | 60 | 166 |
Obligations of States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Available for Sale, Less than 12 months, Fair value | 1,266 | 8,500 |
Available for Sale, Less than 12 months, Unrealized Losses | 29 | 328 |
Available for Sale, 12 months or longer, Fair value | 5,033 | 2,087 |
Available for Sale, 12 months or longer, Unrealized Losses | 104 | 195 |
Available for Sale, Number of securities | 12 | 21 |
Available for Sale, Total, Fair value | 6,299 | 10,587 |
Available for Sale, Total, Unrealized Losses | 133 | 523 |
Held to Maturity, Less than 12 months, Fair value | 1,290 | 17,826 |
Held to Maturity, Less than 12 months, Unrealized Losses | 7 | 607 |
Held to Maturity, 12 months or longer, Fair value | 4,206 | 1,456 |
Held to Maturity, 12 months or longer, Unrealized Losses | 83 | 163 |
Held to Maturity, Number of securities | 13 | 51 |
Held to Maturity, Total, Fair value | 5,496 | 19,282 |
Held to Maturity, Total, Unrealized Losses | 90 | 770 |
Other Debt Securities [Member] | ||
Investment [Line Items] | ||
Available for Sale, 12 months or longer, Fair value | 805 | |
Available for Sale, 12 months or longer, Unrealized Losses | 158 | |
Available for Sale, Number of securities | 1 | |
Available for Sale, Total, Fair value | 805 | |
Available for Sale, Total, Unrealized Losses | 158 | |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Available for Sale, 12 months or longer, Fair value | 4,819 | 10,215 |
Available for Sale, 12 months or longer, Unrealized Losses | 211 | 384 |
Available for Sale, Number of securities | 2 | 3 |
Available for Sale, Total, Fair value | 4,819 | 10,215 |
Available for Sale, Total, Unrealized Losses | $211 | $384 |
Loans_and_Leases_and_Other_Rea2
Loans and Leases and Other Real Estate - Composition of Lakeland`s Loan and Lease Portfolio (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $2,655,614 | $2,470,289 |
Less: deferred fees | -1,788 | -1,273 |
Loans and leases, net of deferred fees | 2,653,826 | 2,469,016 |
Commercial, Secured by Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 1,529,761 | 1,389,861 |
Commercial, Industrial and Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 238,252 | 213,808 |
Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 54,749 | 41,332 |
Real Estate-Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 431,190 | 432,831 |
Real Estate-Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 64,020 | 53,119 |
Home Equity and Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $337,642 | $339,338 |
Loans_and_Leases_and_Other_Rea3
Loans and Leases and Other Real Estate - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | 31-May-13 | |
SecurityLoan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Residential loans pledged for potential borrowings at the Federal Home Loan Bank of New York | $338,500,000 | $263,100,000 | ||||
Loans charged off | 7,427,000 | 10,291,000 | 16,019,000 | |||
Interest income on credit impaired loans | 109,000 | 46,000 | ||||
Non-accrual loans included of troubled debt restructurings | 1,300,000 | 2,300,000 | ||||
Interest accrued on impaired loans and leases | 1,800,000 | 2,200,000 | 2,800,000 | |||
Unfunded lending reserve | 1,100,000 | 1,200,000 | ||||
Loans to these related parties | 27,600,000 | |||||
Loans to these related parties, additions | 18,300,000 | |||||
Repayment of loan from related parties | 15,800,000 | |||||
Mortgages held for sale | 592,000 | 1,200,000 | ||||
Other repossessed assets owned | 49,000 | 54,000 | ||||
Other real estate owned | 977,000 | 466,000 | ||||
Writedown of other repossessed assets | 135,000 | 0 | 0 | |||
Purchased Credit Impaired Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | 2 | |||||
Credit deterioration amount in impaired loans | 1,300,000 | |||||
Loans charged off | 250,000 | |||||
Remaining loan amount paid | 149,000 | |||||
Somerset Hills Bancorp [Member] | Purchased Credit Impaired Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan amount deemed to be impaired | 1,600,000 | |||||
Number of loans | 3 | |||||
Minimum [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Group of impaired loans with recorded investment | 500,000 | |||||
Home Equity and Consumer [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Overdraft balances included in home equity and consumer loans | $791,000 | $590,000 |
Loans_and_Leases_and_Other_Rea4
Loans and Leases and Other Real Estate - Lakeland's Non-Accrual Loans and Leases and Its Accruing Troubled Debt Restructurings (TDRs) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | $20,669 | $16,932 |
Other real estate and other repossessed assets | 1,026 | 520 |
TOTAL NON-PERFORMING ASSETS | 21,695 | 17,452 |
Troubled debt restructurings, still accruing | 10,579 | 10,289 |
Commercial, Secured by Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | 7,424 | 7,697 |
Commercial, Industrial and Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | 308 | 88 |
Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | 88 | |
Real Estate-Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | 9,246 | 6,141 |
Real Estate-Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | 188 | 831 |
Home Equity and Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total non-accrual loans and leases | $3,415 | $2,175 |
Loans_and_Leases_and_Other_Rea5
Loans and Leases and Other Real Estate - Age Analysis of Past Due Loans, Segregated by Class of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $8,898 | $15,482 |
60-89 Days Past Due | 3,977 | 7,615 |
Greater Than 89 Days | 16,217 | 15,159 |
Total Past Due | 29,092 | 38,256 |
Current | 2,626,522 | 2,432,033 |
Total Loans and Leases | 2,655,614 | 2,470,289 |
Recorded Investment greater than 89 Days and still accruing | 66 | 1,997 |
Commercial, Secured by Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 2,714 | 7,355 |
60-89 Days Past Due | 2,999 | 5,438 |
Greater Than 89 Days | 5,972 | 6,059 |
Total Past Due | 11,685 | 18,852 |
Current | 1,518,076 | 1,371,009 |
Total Loans and Leases | 1,529,761 | 1,389,861 |
Recorded Investment greater than 89 Days and still accruing | 697 | |
Commercial, Industrial and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 944 | 482 |
60-89 Days Past Due | 2 | 159 |
Greater Than 89 Days | 308 | 20 |
Total Past Due | 1,254 | 661 |
Current | 236,998 | 213,147 |
Total Loans and Leases | 238,252 | 213,808 |
Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 108 | 77 |
60-89 Days Past Due | 24 | 179 |
Greater Than 89 Days | 88 | |
Total Past Due | 220 | 256 |
Current | 54,529 | 41,076 |
Total Loans and Leases | 54,749 | 41,332 |
Real Estate-Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 3,325 | 5,792 |
60-89 Days Past Due | 354 | 1,306 |
Greater Than 89 Days | 6,710 | 5,365 |
Total Past Due | 10,389 | 12,463 |
Current | 420,801 | 420,368 |
Total Loans and Leases | 431,190 | 432,831 |
Recorded Investment greater than 89 Days and still accruing | 414 | |
Real Estate-Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 224 | |
Greater Than 89 Days | 188 | 831 |
Total Past Due | 412 | 831 |
Current | 63,608 | 52,288 |
Total Loans and Leases | 64,020 | 53,119 |
Home Equity and Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,583 | 1,776 |
60-89 Days Past Due | 598 | 533 |
Greater Than 89 Days | 2,951 | 2,884 |
Total Past Due | 5,132 | 5,193 |
Current | 332,510 | 334,145 |
Total Loans and Leases | 337,642 | 339,338 |
Recorded Investment greater than 89 Days and still accruing | $66 | $886 |
Loans_and_Leases_and_Other_Rea6
Loans and Leases and Other Real Estate - Impaired Loans with and without Specific Allowances (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | $25,693 | $24,619 | $31,531 |
Contractual Unpaid Principal Balance | 28,927 | 28,182 | 39,067 |
Related Allowance | 1,892 | 910 | 873 |
Interest Income Recognized | 711 | 877 | 724 |
Average Investment in Impaired loans | 24,143 | 26,966 | 35,764 |
Commercial, Secured by Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 19,838 | 18,375 | 19,804 |
Contractual Unpaid Principal Balance | 21,338 | 19,873 | 25,753 |
Related Allowance | 634 | 739 | 368 |
Interest Income Recognized | 592 | 640 | 541 |
Average Investment in Impaired loans | 19,950 | 18,580 | 22,126 |
Commercial, Secured by Real Estate [Member] | Loans with Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 5,666 | 10,152 | 3,346 |
Contractual Unpaid Principal Balance | 5,818 | 10,217 | 4,088 |
Related Allowance | 634 | 739 | 368 |
Interest Income Recognized | 156 | 442 | 46 |
Average Investment in Impaired loans | 3,858 | 9,727 | 3,825 |
Commercial, Secured by Real Estate [Member] | Loans without Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 14,172 | 8,223 | 16,458 |
Contractual Unpaid Principal Balance | 15,520 | 9,656 | 21,665 |
Interest Income Recognized | 436 | 198 | 495 |
Average Investment in Impaired loans | 16,092 | 8,853 | 18,301 |
Commercial, Industrial and Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 752 | 4,175 | 5,704 |
Contractual Unpaid Principal Balance | 2,122 | 4,273 | 5,803 |
Related Allowance | 10 | 31 | 219 |
Interest Income Recognized | 52 | 194 | 117 |
Average Investment in Impaired loans | 1,855 | 4,729 | 4,607 |
Commercial, Industrial and Other [Member] | Loans with Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 425 | 155 | 808 |
Contractual Unpaid Principal Balance | 425 | 155 | 871 |
Related Allowance | 10 | 31 | 219 |
Interest Income Recognized | 9 | 5 | 1 |
Average Investment in Impaired loans | 342 | 396 | 769 |
Commercial, Industrial and Other [Member] | Loans without Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 327 | 4,020 | 4,896 |
Contractual Unpaid Principal Balance | 1,697 | 4,118 | 4,932 |
Interest Income Recognized | 43 | 189 | 116 |
Average Investment in Impaired loans | 1,513 | 4,333 | 3,838 |
Real Estate-Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 2,919 | 617 | 648 |
Contractual Unpaid Principal Balance | 2,919 | 672 | 648 |
Related Allowance | 217 | 43 | |
Interest Income Recognized | 19 | 10 | |
Average Investment in Impaired loans | 746 | 622 | 759 |
Real Estate-Residential Mortgage [Member] | Loans with Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 1,238 | 288 | |
Contractual Unpaid Principal Balance | 1,238 | 288 | |
Related Allowance | 217 | 43 | |
Interest Income Recognized | 19 | 4 | |
Average Investment in Impaired loans | 438 | 374 | |
Real Estate-Residential Mortgage [Member] | Loans without Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 1,681 | 617 | 360 |
Contractual Unpaid Principal Balance | 1,681 | 672 | 360 |
Interest Income Recognized | 6 | ||
Average Investment in Impaired loans | 308 | 622 | 385 |
Real Estate-Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 188 | 501 | 4,030 |
Contractual Unpaid Principal Balance | 552 | 2,411 | 5,518 |
Related Allowance | 97 | ||
Average Investment in Impaired loans | 464 | 2,111 | 6,978 |
Real Estate-Construction [Member] | Loans with Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 698 | ||
Contractual Unpaid Principal Balance | 1,085 | ||
Related Allowance | 97 | ||
Average Investment in Impaired loans | 1,445 | ||
Real Estate-Construction [Member] | Loans without Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 188 | 501 | 3,332 |
Contractual Unpaid Principal Balance | 552 | 2,411 | 4,433 |
Average Investment in Impaired loans | 464 | 2,111 | 5,533 |
Home Equity and Consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 1,996 | 951 | 1,345 |
Contractual Unpaid Principal Balance | 1,996 | 953 | 1,345 |
Related Allowance | 1,031 | 140 | 146 |
Interest Income Recognized | 48 | 43 | 56 |
Average Investment in Impaired loans | 1,128 | 924 | 1,294 |
Home Equity and Consumer [Member] | Loans with Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 1,255 | 934 | 976 |
Contractual Unpaid Principal Balance | 1,255 | 936 | 976 |
Related Allowance | 1,031 | 140 | 146 |
Interest Income Recognized | 41 | 42 | 55 |
Average Investment in Impaired loans | 975 | 907 | 934 |
Home Equity and Consumer [Member] | Loans without Related Allowance [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment in Impaired loans | 741 | 17 | 369 |
Contractual Unpaid Principal Balance | 741 | 17 | 369 |
Interest Income Recognized | 7 | 1 | 1 |
Average Investment in Impaired loans | $153 | $17 | $360 |
Loans_and_Leases_and_Other_Rea7
Loans and Leases and Other Real Estate - Lakeland's Commercial Loan Portfolio (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial, Secured by Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | $1,529,761 | $1,389,861 |
Commercial, Secured by Real Estate [Member] | Pass 3 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 69,243 | 70,811 |
Commercial, Secured by Real Estate [Member] | Pass 4 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 479,667 | 442,933 |
Commercial, Secured by Real Estate [Member] | Pass 5 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 867,023 | 754,275 |
Commercial, Secured by Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 40,991 | 38,893 |
Commercial, Secured by Real Estate [Member] | Other Assets Especially Mentioned [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 27,764 | 27,640 |
Commercial, Secured by Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 45,073 | 55,309 |
Commercial, Industrial and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 238,252 | 213,808 |
Commercial, Industrial and Other [Member] | Pass 1 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 1,040 | 952 |
Commercial, Industrial and Other [Member] | Pass 2 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 8,755 | 12,964 |
Commercial, Industrial and Other [Member] | Pass 3 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 30,386 | 9,263 |
Commercial, Industrial and Other [Member] | Pass 4 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 91,836 | 60,002 |
Commercial, Industrial and Other [Member] | Pass 5 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 69,723 | 85,939 |
Commercial, Industrial and Other [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 15,572 | 12,278 |
Commercial, Industrial and Other [Member] | Other Assets Especially Mentioned [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 8,057 | 9,596 |
Commercial, Industrial and Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 12,883 | 22,814 |
Real Estate-Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 64,020 | 53,119 |
Real Estate-Construction [Member] | Pass 4 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 7,527 | 1,178 |
Real Estate-Construction [Member] | Pass 5 [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 51,833 | 48,243 |
Real Estate-Construction [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 225 | |
Real Estate-Construction [Member] | Other Assets Especially Mentioned [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | 2,710 | 1,245 |
Real Estate-Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Commercial loan portfolio | $1,725 | $2,453 |
Loans_and_Leases_and_Other_Rea8
Loans and Leases and Other Real Estate - Allowance for Loan and Lease Losses by Portfolio Segment and Related Recorded Investment in Loans and Leases (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Loan and Lease Losses: | |||
Beginning Balance | $29,821,000 | $28,931,000 | $28,416,000 |
Charge-offs | -7,427,000 | -10,291,000 | -16,019,000 |
Recoveries | 2,425,000 | 1,838,000 | 1,627,000 |
Provision | 5,865,000 | 9,343,000 | 14,907,000 |
Ending Balance | 30,684,000 | 29,821,000 | 28,931,000 |
Ending Balance: Individually evaluated for impairment | 1,892,000 | 910,000 | 873,000 |
Ending Balance: Collectively evaluated for impairment | 28,792,000 | 28,911,000 | 28,058,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Loans and Leases: | |||
Ending Balance: Individually evaluated for impairment | 25,693,000 | 24,619,000 | 31,531,000 |
Ending Balance: Collectively evaluated for impairment | 2,629,921,000 | 2,445,259,000 | 2,115,676,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 411,000 | ||
Ending Balance | 2,655,614,000 | 2,470,289,000 | 2,147,207,000 |
Commercial, Secured by Real Estate [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 14,463,000 | 16,258,000 | 16,618,000 |
Charge-offs | -2,282,000 | -2,026,000 | -7,287,000 |
Recoveries | 999,000 | 1,061,000 | 280,000 |
Provision | 397,000 | -830,000 | 6,647,000 |
Ending Balance | 13,577,000 | 14,463,000 | 16,258,000 |
Ending Balance: Individually evaluated for impairment | 634,000 | 739,000 | 368,000 |
Ending Balance: Collectively evaluated for impairment | 12,943,000 | 13,724,000 | 15,890,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Commercial, Secured by Real Estate [Member] | Loans and Leases [Member] | |||
Loans and Leases: | |||
Ending Balance: Individually evaluated for impairment | 19,838,000 | 18,375,000 | 19,804,000 |
Ending Balance: Collectively evaluated for impairment | 1,509,923,000 | 1,371,486,000 | 1,105,333,000 |
Ending Balance | 1,529,761,000 | 1,389,861,000 | 1,125,137,000 |
Commercial, Industrial and Other [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 5,331,000 | 5,103,000 | 3,477,000 |
Charge-offs | -999,000 | -1,324,000 | -949,000 |
Recoveries | 1,039,000 | 260,000 | 428,000 |
Provision | -2,175,000 | 1,292,000 | 2,147,000 |
Ending Balance | 3,196,000 | 5,331,000 | 5,103,000 |
Ending Balance: Individually evaluated for impairment | 10,000 | 31,000 | 219,000 |
Ending Balance: Collectively evaluated for impairment | 3,186,000 | 5,300,000 | 4,884,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Commercial, Industrial and Other [Member] | Loans and Leases [Member] | |||
Loans and Leases: | |||
Ending Balance: Individually evaluated for impairment | 752,000 | 4,175,000 | 5,704,000 |
Ending Balance: Collectively evaluated for impairment | 237,500,000 | 209,633,000 | 210,425,000 |
Ending Balance | 238,252,000 | 213,808,000 | 216,129,000 |
Leases [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 504,000 | 578,000 | 688,000 |
Charge-offs | -597,000 | -206,000 | -999,000 |
Recoveries | 19,000 | 121,000 | 504,000 |
Provision | 656,000 | 11,000 | 385,000 |
Ending Balance | 582,000 | 504,000 | 578,000 |
Ending Balance: Collectively evaluated for impairment | 582,000 | 504,000 | 578,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Leases [Member] | Loans and Leases [Member] | |||
Loans and Leases: | |||
Ending Balance: Collectively evaluated for impairment | 54,749,000 | 41,332,000 | 26,781,000 |
Ending Balance | 54,749,000 | 41,332,000 | 26,781,000 |
Real Estate-Residential Mortgage [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 3,214,000 | 3,568,000 | 3,077,000 |
Charge-offs | -827,000 | -1,257,000 | -1,822,000 |
Recoveries | 42,000 | 99,000 | 66,000 |
Provision | 1,591,000 | 804,000 | 2,247,000 |
Ending Balance | 4,020,000 | 3,214,000 | 3,568,000 |
Ending Balance: Individually evaluated for impairment | 217,000 | 43,000 | |
Ending Balance: Collectively evaluated for impairment | 3,803,000 | 3,214,000 | 3,525,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Real Estate-Residential Mortgage [Member] | Loans and Leases [Member] | |||
Loans and Leases: | |||
Ending Balance: Individually evaluated for impairment | 2,919,000 | 617,000 | 648,000 |
Ending Balance: Collectively evaluated for impairment | 428,271,000 | 432,214,000 | 422,614,000 |
Ending Balance | 431,190,000 | 432,831,000 | 423,262,000 |
Real Estate-Construction [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 542,000 | 587,000 | 1,424,000 |
Charge-offs | -25,000 | -3,854,000 | -2,888,000 |
Recoveries | 106,000 | 14,000 | 43,000 |
Provision | -70,000 | 3,795,000 | 2,008,000 |
Ending Balance | 553,000 | 542,000 | 587,000 |
Ending Balance: Individually evaluated for impairment | 97,000 | ||
Ending Balance: Collectively evaluated for impairment | 553,000 | 542,000 | 490,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Real Estate-Construction [Member] | Loans and Leases [Member] | |||
Loans and Leases: | |||
Ending Balance: Individually evaluated for impairment | 188,000 | 501,000 | 4,030,000 |
Ending Balance: Collectively evaluated for impairment | 63,832,000 | 52,618,000 | 42,242,000 |
Ending Balance | 64,020,000 | 53,119,000 | 46,272,000 |
Home Equity and Consumer [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 2,737,000 | 2,837,000 | 3,132,000 |
Charge-offs | -2,697,000 | -1,624,000 | -2,074,000 |
Recoveries | 220,000 | 283,000 | 306,000 |
Provision | 6,073,000 | 1,241,000 | 1,473,000 |
Ending Balance | 6,333,000 | 2,737,000 | 2,837,000 |
Ending Balance: Individually evaluated for impairment | 1,031,000 | 140,000 | 146,000 |
Ending Balance: Collectively evaluated for impairment | 5,302,000 | 2,597,000 | 2,691,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 0 | 0 | |
Home Equity and Consumer [Member] | Loans and Leases [Member] | |||
Loans and Leases: | |||
Ending Balance: Individually evaluated for impairment | 1,996,000 | 951,000 | 1,345,000 |
Ending Balance: Collectively evaluated for impairment | 335,646,000 | 337,976,000 | 308,281,000 |
Ending Balance: Loans acquired with deteriorated credit quality | 411,000 | ||
Ending Balance | 337,642,000 | 339,338,000 | 309,626,000 |
Unallocated [Member] | |||
Allowance for Loan and Lease Losses: | |||
Beginning Balance | 3,030,000 | ||
Provision | -607,000 | 3,030,000 | |
Ending Balance | 2,423,000 | 3,030,000 | |
Ending Balance: Collectively evaluated for impairment | 2,423,000 | 3,030,000 | |
Ending Balance: Loans acquired with deteriorated credit quality | $0 | $0 |
Loans_and_Leases_and_Other_Rea9
Loans and Leases and Other Real Estate - Summary of Restructured Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 21 | 12 |
Pre-Modification Outstanding Recorded Investment | $6,509 | $4,101 |
Post-Modification Outstanding Recorded Investment | 6,509 | 3,445 |
Commercial, Secured by Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 5 | 8 |
Pre-Modification Outstanding Recorded Investment | 4,146 | 3,637 |
Post-Modification Outstanding Recorded Investment | 4,146 | 2,988 |
Commercial, Industrial and Other [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | 285 | 127 |
Post-Modification Outstanding Recorded Investment | 285 | 121 |
Real Estate-Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 5 | 1 |
Pre-Modification Outstanding Recorded Investment | 1,238 | 179 |
Post-Modification Outstanding Recorded Investment | 1,238 | 179 |
Home Equity and Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 9 | 2 |
Pre-Modification Outstanding Recorded Investment | 840 | 158 |
Post-Modification Outstanding Recorded Investment | $840 | $157 |
Recovered_Sheet1
Loans and Leases and Other Real Estate - Summary of Restructured Debt within Previous 12 Months that have Subsequently Defaulted (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 4 | 1 |
Recorded Investment | $624 | $147 |
Commercial, Secured by Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | |
Recorded Investment | 32 | |
Real Estate-Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 1 | |
Recorded Investment | 354 | |
Home Equity and Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | 2 | 1 |
Recorded Investment | $238 | $147 |
Recovered_Sheet2
Loans and Leases and Other Real Estate - Summary of Future Minimum Lease Payments of Lease Receivables (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Receivables [Abstract] | |
2015 | $18,810 |
2016 | 15,291 |
2017 | 11,507 |
2018 | 6,843 |
2019 | 2,090 |
thereafter | 208 |
Total | $54,749 |
Premises_and_Equipment_Summary
Premises and Equipment - Summary of Premises and Equipment (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Land | 6,319 | 6,259 |
Buildings and building improvements | 34,951 | 34,607 |
Leasehold improvements | 9,845 | 9,997 |
Furniture, fixtures and equipment | 38,773 | 37,054 |
Premises and equipment, gross | 89,888 | 87,917 |
Less accumulated depreciation and amortization | 54,213 | 50,769 |
Premises and equipment | 35,675 | 37,148 |
Buildings and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Buildings and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 50 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 25 years | |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 2 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 30 years |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $3.90 | $3.70 | $3.10 |
Time_Deposits_Schedule_of_Matu
Time Deposits - Schedule of Maturities of Certificates of Deposit (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Banking and Thrift [Abstract] | |
2015 | $189,872 |
2016 | 42,586 |
2017 | 35,755 |
2018 | 11,002 |
2019 | 618 |
Thereafter | 129 |
Total | $279,962 |
Debt_Additional_Information_Sh
Debt - Additional Information (Short Term Debt) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Home Loan Bank of New York [Member] | Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Maturity of advances from the FHLB | 1 year | 1 year |
Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Overnight federal funds borrowed | 81,000,000 | 50,000,000 |
Overnight federal funds lines available for borrow | 162,000,000 | |
Line of Credit [Member] | Federal Home Loan Bank of New York [Member] | ||
Short-term Debt [Line Items] | ||
Overnight borrowings | 0 | 0 |
Borrowings with the Federal Reserve Bank of New York | 0 | 0 |
Debt_Summary_of_Information_Re
Debt - Summary of Information Relating to Securities Sold Under Agreements to Repurchase and Federal Funds Purchased (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal funds purchased [Member] | |||
Short-term Debt [Line Items] | |||
Balance at December 31 | $81,000 | $50,000 | $72,000 |
Interest rate at December 31 | 0.35% | 0.37% | 0.37% |
Maximum amount outstanding at any month-end during the year | 117,000 | 81,000 | 72,000 |
Average amount outstanding during the year | 17,605 | 8,424 | 15,147 |
Weighted average interest rate during the year | 0.39% | 0.34% | 0.35% |
Securities Sold under Agreements to Repurchase [Member] | |||
Short-term Debt [Line Items] | |||
Balance at December 31 | 27,935 | 31,991 | 45,289 |
Interest rate at December 31 | 0.02% | 0.02% | 0.05% |
Maximum amount outstanding at any month-end during the year | 54,550 | 48,315 | 49,863 |
Average amount outstanding during the year | $38,192 | $37,277 | $44,434 |
Weighted average interest rate during the year | 0.03% | 0.03% | 0.06% |
Debt_Additional_Information_Lo
Debt - Additional Information (Long Term Debt) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | 31-May-07 | Dec. 31, 2003 | Jun. 18, 2013 | Jun. 30, 2003 | Mar. 31, 2013 | Oct. 07, 2012 | |
Debt Instrument [Line Items] | |||||||||
Advances from the FHLB | $69,000,000 | $69,000,000 | 132,498,000 | ||||||
Debt prepaid | 6,000,000 | 6,000,000 | |||||||
Penalty prepayment | 683,000 | ||||||||
Securities sold under agreement to repurchase maturities due | 50,000,000 | 50,000,000 | 70,000,000 | ||||||
Gain on extinguishment of debt | 1,197,000 | ||||||||
Federal Home Loan Bank of New York [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate of advances | 3.99% | 3.99% | |||||||
Federal Home Loan Bank of New York [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturity of advances from the FHLB | 5 years | 4 years | |||||||
Collateralized FHLB Advances [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate of advances | 1.47% | 1.47% | 1.52% | ||||||
Lakeland Bancorp Capital Trust IV [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Junior subordinated debentures issued | 20,600,000 | ||||||||
Distribution rate on debentures | 6.61% | ||||||||
Debenture floated LIBOR rate | 1.52% | ||||||||
Proceeds of trust preferred securities, Total | 20,000,000 | ||||||||
Trust preferred securities, issued | 20,000 | ||||||||
Trust preferred securities, face value | 1,000 | ||||||||
Distribution of securities years | 5 years | ||||||||
Junior subordinated debentures due | 31-Aug-37 | ||||||||
Preferred securities redeemed | 2037 | ||||||||
Lakeland Bancorp Capital Trust III [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Junior subordinated debentures issued | 25,800,000 | ||||||||
Distribution rate on debentures | 7.54% | ||||||||
Debenture floated LIBOR rate | 2.85% | ||||||||
Proceeds of trust preferred securities, Total | 25,000,000 | ||||||||
Trust preferred securities, issued | 25,000 | ||||||||
Trust preferred securities, face value | 1,000 | ||||||||
Distribution of securities years | 10 years | ||||||||
Junior subordinated debentures due | 7-Jan-34 | ||||||||
Debentures redeemed at par value | 25,800,000 | ||||||||
Lakeland Bancorp Capital Trust I [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Junior subordinated debentures issued | 10,300,000 | ||||||||
Distribution rate on debentures | 3.38% | 6.20% | |||||||
Debenture floated LIBOR rate | 3.10% | 3.10% | |||||||
Proceeds of trust preferred securities, Total | 10,000,000 | ||||||||
Trust preferred securities, issued | 10,000 | ||||||||
Trust preferred securities, face value | 1,000 | ||||||||
Distribution of securities years | 7 years | ||||||||
Junior subordinated debentures due | 7-Jul-33 | ||||||||
Debentures redeemed at par value | 1,000,000 | ||||||||
Gain on extinguishment of debt | 1,200,000 | ||||||||
Debentures extinguished | 9,000,000 | ||||||||
Lakeland Bancorp Capital Trust II [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Junior subordinated debentures issued | 20,600,000 | ||||||||
Distribution rate on debentures | 5.71% | ||||||||
Debenture floated LIBOR rate | 3.10% | ||||||||
Proceeds of trust preferred securities, Total | 20,000,000 | ||||||||
Trust preferred securities, issued | 20,000 | ||||||||
Trust preferred securities, face value | 1,000 | ||||||||
Distribution of securities years | 5 years | ||||||||
Junior subordinated debentures due | 30-Jun-33 | ||||||||
Preferred securities redeemed | 2033 | ||||||||
Securities Sold under Agreements to Repurchase [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepaid amount paid under agreements to repurchase | 10,000,000 | ||||||||
Weighted average interest rate of advances | 2.51% | 2.51% | 2.14% | 2.90% | |||||
Prepayment penalty | $526,000 |
Debt_Summary_of_FHLB_Debt_Matu
Debt - Summary of FHLB Debt Matures (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
2015 | $30,000 | |
2016 | 37,798 | |
2017 | 34,700 | |
2018 | 30,000 | |
2019 | 0 | |
Thereafter | 0 | |
Total | $132,498 | $69,000 |
Debt_Summary_of_LongTerm_Secur
Debt - Summary of Long-Term Securities Sold Under Agreements to Repurchase Mature (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
2015 | $0 | |
2016 | 10,000 | |
2017 | 0 | |
2018 | 30,000 | |
2019 | 20,000 | |
Thereafter | 10,000 | |
Total | $70,000 | $50,000 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||
Feb. 29, 2012 | Feb. 28, 2009 | Dec. 31, 2014 | Dec. 31, 2012 | Feb. 29, 2012 | Mar. 31, 2011 | Aug. 31, 2010 | 31-May-13 | 21-May-14 | Dec. 31, 2013 | Oct. 07, 2012 | Sep. 04, 2012 | Mar. 19, 2012 | |
Class of Stock [Line Items] | |||||||||||||
Stock dividend authorized and distributed | 5.00% | 5.00% | |||||||||||
Stock dividend, authorized date | 21-May-14 | 19-Mar-12 | |||||||||||
Stock dividend distributed | 17-Jun-14 | 16-Apr-12 | |||||||||||
Stock dividend, record date | 3-Jun-14 | 30-Mar-12 | |||||||||||
Common stock, shares issued | 37,910,840 | 37,873,800 | 2,800,616 | ||||||||||
Common stock price per share | $9.19 | ||||||||||||
Common stock net proceeds | $25,040,000 | ||||||||||||
Junior subordinated debentures repay | 25,800,000 | ||||||||||||
Maturity of warrant description | The warrant was issued with an initial exercise price of $8.05 (adjusted for stock dividends) and a ten year term and was exercisable immediately, in whole or in part. | ||||||||||||
Warrant, initial exercise price | $8.05 | ||||||||||||
Exercisable term of warrant | 10 years | ||||||||||||
Dividend paid | 5.00% | ||||||||||||
Common stock carrying value | 3,300,000 | ||||||||||||
Discount amortized period | 5 years | ||||||||||||
Redemption of warrant | 2,800,000 | ||||||||||||
Series A Preferred Stock [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 59,000 | ||||||||||||
Cumulative Perpetual Preferred Stock, Series A, purchase price | 59,000,000 | ||||||||||||
Entity warrant issued | 1,099,246 | ||||||||||||
Liquidation preference | $1,000 | ||||||||||||
Redemption of preferred stock | 19,000 | 20,000 | 20,000 | ||||||||||
Somerset Hills Bancorp [Member] | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Number of shares issued | 6,083,783 | ||||||||||||
Cash Payment | $6,460,000 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current tax provision | $15,193 | $12,286 | $9,520 |
Deferred tax provision | -34 | 164 | 576 |
Provision for income taxes | $15,159 | $12,450 | $10,096 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ||
Statutory federal rate | 35.00% | |
Deferred tax asset, net | $11,045,000 | $14,503,000 |
Unrecognized tax benefit | 111,000 | |
Somerset Hills Bancorp [Member] | ||
Income Tax Disclosure [Line Items] | ||
Deferred tax asset, net | $93,000 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Provision Reconciled to Income Taxes that Computed at Statutory Federal Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal income tax, at statutory rates | $16,201 | $13,097 | $11,143 |
Increase (deduction) in taxes resulting from: | |||
Tax-exempt income | -1,387 | -1,370 | -1,296 |
State income tax, net of federal income tax effect | 337 | 339 | 192 |
Other, net | 8 | 384 | 57 |
Provision for income taxes | $15,159 | $12,450 | $10,096 |
Income_Taxes_Summary_of_Net_De
Income Taxes - Summary of Net Deferred Tax Asset (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan and lease losses | $13,014 | $12,688 |
Share based compensation plans | 686 | 553 |
Purchase accounting fair market value adjustments | 694 | 688 |
Non-accrued interest | 554 | 389 |
Deferred compensation | 1,814 | 1,671 |
Other than temporary impairment loss on investment securities | 255 | 255 |
Unrealized losses on securities available for sale | 2,620 | |
Unfunded pension benefits | 9 | 20 |
Other, net | 537 | 771 |
Deferred tax assets | 17,563 | 19,655 |
Deferred tax liabilities: | ||
Core deposit intangible from acquired companies | 800 | 990 |
Undistributed income from subsidiary not consolidated for tax return purposes (REIT). | 724 | |
Deferred loan costs | 1,407 | 1,338 |
Prepaid expenses | 460 | 457 |
Depreciation and amortization | 1,438 | 1,514 |
Deferred gain on securities | 194 | 194 |
Unrealized gains on securities available for sale | 862 | |
Other | 633 | 659 |
Deferred tax liabilities | 6,518 | 5,152 |
Net deferred tax assets, included in other assets | $11,045 | $14,503 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share | |||
Net income available to common shareholders, Income | $31,129 | $24,969 | $21,122 |
Less: earnings allocated to participating securities, Income | 222 | 178 | 181 |
Net income available to common shareholders, Total | 30,907 | 24,791 | 20,941 |
Net income available to common shareholders, Shares | 37,749 | 34,742 | 29,000 |
Less: earnings allocated to participating securities, Shares | 0 | 0 | 0 |
Net income available to common shareholders, Total | 37,749 | 34,742 | 29,000 |
Net income available to common shareholders, Per share amount | $0.82 | $0.72 | $0.73 |
Less: earnings allocated to participating securities, Per share amount | $0 | $0.01 | $0.01 |
Net income available to common shareholders, Total | $0.82 | $0.71 | $0.72 |
Effect of dilutive securities | |||
Stock options and restricted stock, Income | 0 | 0 | 0 |
Stock options and restricted stock, Shares | 120 | 160 | 77 |
Stock options and restricted stock, Per share amount | $0 | $0 | $0 |
Diluted earnings per share | |||
Net income available to common shareholders plus assumed conversions, Income | $30,907 | $24,791 | $20,941 |
Net income available to common shareholders plus assumed conversions, Shares | 37,869 | 34,902 | 29,077 |
Net income available to common shareholders plus assumed conversions, Per share amount | $0.82 | $0.71 | $0.72 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Common Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options to purchase | 115,831 | 358,340 | 470,544 |
Weighted average per share of restricted stock | $12.06 | $11.91 | $11.96 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2008 | Dec. 31, 2008 | Dec. 31, 2003 | Jul. 31, 1999 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions made by company to plans | $160,000 | $160,000 | |||||
Employees contributions to their annual salary | 50.00% | ||||||
Company's contributions to employees salary | 740,000 | 715,000 | 628,000 | ||||
Rate of return of long term equity securities | 10.00% | ||||||
Realized loss for difference between plan assets and estimated payout of plan | 300,000 | ||||||
Amount to be paid toward termination plan | 2,300,000 | ||||||
One year Citigroup Pension Liability Index rate | 0.65% | 4.75% | |||||
Annuity liabilities interest rate | 2.40% | ||||||
Chief Executive Officer [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Amount contributed upon retirement | 722,000 | ||||||
President [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Amount contributed upon retirement | 381,000 | ||||||
Debt Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target portfolio allocations equities | 30.00% | ||||||
Cash [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target portfolio allocations equities | 5.00% | ||||||
Equity [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target portfolio allocations equities | 60.00% | ||||||
Commodity [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Target portfolio allocations equities | 5.00% | ||||||
Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of return of fixed income securities | 1.00% | ||||||
Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of return of fixed income securities | 5.00% | ||||||
Deferred Compensation Arrangements [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Expense related to the deferred compensation plan | 16,000 | 3,000 | 0 | ||||
Accrued liability on deferred compensation plans | 267,000 | 270,000 | |||||
Deferred Compensation Arrangements [Member] | Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Retirement benefit period | 10 years | ||||||
Deferred Compensation Arrangements [Member] | Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Retirement benefit period | 15 years | ||||||
Supplemental Executive Retirement Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Annual retirement benefit | 84,500 | 90,000 | 150,000 | 150,000 | |||
Retirement benefit period | 15 years | 10 years | 15 years | 15 years | |||
Compensation expense | 359,000 | 247,000 | 434,000 | ||||
Retirement age of CEO | 65 years | 65 years | 65 years | ||||
Retirement date | 2016-11 | ||||||
Supplemental Executive Retirement Plan [Member] | Somerset Hills Bancorp [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Retirement benefit period | 15 years | ||||||
Employee benefit plan liability | 675,000 | ||||||
Compensation expense | 109,000 | 50,000 | |||||
Supplemental Executive Retirement Plan [Member] | Somerset Hills Bancorp [Member] | Chief Executive Officer [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Annual retirement benefit | 48,000 | ||||||
Supplemental Executive Retirement Plan [Member] | Somerset Hills Bancorp [Member] | Chief Financial Officer [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Annual retirement benefit | 24,000 | ||||||
Profit Sharing Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions made by company to plans | $600,000 | $600,000 | $625,000 |
Employee_Benefit_Plans_Summary
Employee Benefit Plans - Summary of Fair Value and Portfolio Allocations of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | $2,020,000 | $1,987,000 | $1,766,000 |
Fair value and portfolio allocations of plan assets, Percent of Assets | 100.00% | 100.00% | |
Cash and Cash Equivalents [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | 519,000 | 89,000 | |
Fair value and portfolio allocations of plan assets, Percent of Assets | 26.00% | 5.00% | |
Fixed Income Mutual Funds [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | 976,000 | 568,000 | |
Fair value and portfolio allocations of plan assets, Percent of Assets | 48.00% | 29.00% | |
U.S. Large-Cap Funds [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | 525,000 | 466,000 | |
Fair value and portfolio allocations of plan assets, Percent of Assets | 26.00% | 23.00% | |
U.S. Mid- and Small-Cap Funds [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | 148,000 | ||
Fair value and portfolio allocations of plan assets, Percent of Assets | 7.00% | ||
U.S. Balanced Funds [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | 315,000 | ||
Fair value and portfolio allocations of plan assets, Percent of Assets | 16.00% | ||
International Funds [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | 301,000 | ||
Fair value and portfolio allocations of plan assets, Percent of Assets | 15.00% | ||
Commodity Funds [Member] | |||
Net Investment Income [Line Items] | |||
Fair value and portfolio allocations of plan assets, Market Value | $100,000 | ||
Fair value and portfolio allocations of plan assets, Percent of Assets | 5.00% |
Employee_Benefit_Plans_Summary1
Employee Benefit Plans - Summary of Accumulated Benefit Obligation (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Accumulated postretirement benefit obligation | $2,027 | $2,407 |
Interest cost | 94 | 90 |
Actuarial (gain) loss | 401 | -295 |
Estimated benefit payments | -188 | -175 |
Total accumulated postretirement benefit obligation | 2,334 | 2,027 |
Fair value of plan assets beginning of period | 1,987 | 1,766 |
Return on plan assets | 61 | 236 |
Benefits paid | -188 | -175 |
Contribution | 160 | 160 |
Fair value of plan assets at end of year | 2,020 | 1,987 |
Funded status | -314 | -40 |
Unrecognized net actuarial loss | 0 | 0 |
Liability | -314 | -40 |
Accumulated benefit obligation | $2,334 | $2,027 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans - Components of Net Periodic Pension Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on APBO | $94 | $90 | |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of actuarial loss | 39 | 82 | 72 |
Interest cost on APBO | 94 | 90 | 87 |
Expected return on plan assets | -95 | -72 | -76 |
Net periodic postretirement cost | $38 | $100 | $83 |
Employee_Benefit_Plans_Summary2
Employee Benefit Plans - Summary of Assumptions Used to Determine Pension Obligation and Net Periodic Pension Cost (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Discounted rate | 4.75% | 0.65% |
Expected return on plan assets | 4.75% |
Directors_Retirement_Plan_Addi
Directors Retirement Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Minimum period of service for retirement | 5 years | ||
Maximum period of service for retirement | 10 years | ||
Plan assets of director's retirement plan | $2,020,000 | 1,987,000 | $1,766,000 |
Accumulated other comprehensive loss expected to be recognized as a component of net periodic benefit cost | 13,000 | ||
Director's Retirement Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Discount rate of directors retirement plan | 3.52% | 4.75% | |
Plan assets of director's retirement plan | 0 | ||
Contribution to the director's retirement plan | 75,000 | ||
Minimum [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Remuneration rate for board of directors | 5,000 | ||
Maximum [Member] | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Remuneration rate for board of directors | $17,500 |
Directors_Retirement_Plan_Stat
Directors Retirement Plan - Status of Directors Retirement Plan (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued plan cost included in other liabilities | $2,334 | $2,027 | $2,407 |
Director [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued plan cost included in other liabilities | 743 | 885 | |
Recognized in accumulated other comprehensive income | |||
Net actuarial (gain) loss | -141 | -198 | |
Unrecognized prior service cost | 0 | 0 | |
Amounts not recognized as a component of net postretirement benefit cost (benefit) | ($141) | ($198) |
Directors_Retirement_Plan_Comp
Directors Retirement Plan - Components of Net Periodic Plan Cost for Retirement Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net periodic plan cost included the following components: | |||
Interest cost | $94 | $90 | |
Director's Retirement Plan [Member] | |||
Net periodic plan cost included the following components: | |||
Service cost | 26 | 29 | 30 |
Interest cost | 39 | 36 | 41 |
Amortization of prior service cost | 14 | 21 | 26 |
Net periodic postretirement cost | $79 | $86 | $97 |
Directors_Retirement_Plan_Bene
Directors Retirement Plan - Benefits Expected to be Paid (Detail) (Director [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Director [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $75 |
2016 | 75 |
2017 | 70 |
2018 | 68 |
2019 | 50 |
2020-2024 | $150 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-13 | 21-May-09 | |
Non_Employee_Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 0 | ||||
Weighted average exercise price of shares | $0 | ||||
Share based compensation arrangement by share based payment award options exercisable description | In five equal installments beginning on the date of grant and continuing on the next four anniversaries of the date of grant | ||||
Options outstanding | 311,705 | 514,626 | |||
Excess tax benefits of stock based compensation | $70,000 | $142,000 | $4,000 | ||
Share-based compensation expense | 1,390,000 | 895,000 | 746,000 | ||
Aggregate intrinsic value of options exercised | 44,000 | 1,500,000 | |||
Cash receipts due to exercise of stock options | 89,000 | 2,200,000 | |||
Number of options exercised | 11,900 | 0 | |||
Fair value of options vested | 52,000 | 52,000 | |||
2009 Equity Compensation Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized | 2,300,000 | ||||
2009 Equity Compensation Program [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 2 years | ||||
2009 Equity Compensation Program [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
2000 Equity Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, shares authorized | 2,613,185 | ||||
2000 Equity Compensation Plan [Member] | Scenario, Forecast [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 0 | ||||
Somerset Hills' Stock Option Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 395,191 | ||||
Weighted average exercise price of shares | $6.33 | ||||
Options outstanding | 84,043 | 96,955 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | 687,000 | ||||
Share-based compensation expense | 707,000 | 823,000 | 724,000 | ||
Fair value of options vested | 1,200,000 | ||||
Granted, Number of shares | 1,942 | ||||
Granted, Weighted average price | $11.21 | ||||
Unrecognized compensation expense, period of recognition | 2 years 1 month 6 days | ||||
Restricted Stock [Member] | 2009 Equity Compensation Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 1,942 | ||||
Granted, Number of shares | 109,391 | 95,832 | |||
Granted, Weighted average price | $9.41 | $9.05 | |||
Vesting period | 5 years | 5 years | 5 years | ||
Share-based compensation expense | 4,000 | 206,000 | 173,000 | ||
Granted restricted stock, fair value | $11.21 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 0 | ||||
Share-based compensation expense | 42,000 | 72,000 | 22,000 | ||
Stock Options [Member] | 2009 Equity Compensation Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | 84,000 | ||||
Vesting period | 5 years | ||||
Stock Options [Member] | 2000 Equity Compensation Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | 84,000 | ||||
RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted, Number of shares | 127,791 | ||||
Granted, Weighted average price | $10.65 | ||||
Share-based compensation expense | 453,000 | ||||
RSUs [Member] | 2009 Equity Compensation Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | 712,000 | ||||
Granted, Number of shares | 127,791 | ||||
Granted, Weighted average price | $10.65 | ||||
Vesting period | 3 years | ||||
Unrecognized compensation expense, period of recognition | 1 year 10 months 24 days | ||||
Share-based compensation expense | $641,000 | ||||
Non-Employee Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 52,500 | ||||
Number of non-employee directors | 2 | ||||
Weighted average exercise price of shares | $9.44 | ||||
Non-Employee Directors 1 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 26,250 | ||||
Non-Employee Directors 2 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 26,250 | ||||
Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding | 140,772 | 207,775 | |||
Key Employee [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding | 86,890 | 209,895 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Weighted Average Assumptions Used to Estimate Options Using Black-Scholes Option Pricing Model (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Black Scholes Method Used [Line Items] | |
Risk-free interest rates | 1.55% |
Expected dividend yield | 2.82% |
Expected volatility | 45.45% |
Expected lives (years) | 7 years |
Weighted average fair value of options granted | $3.31 |
Somerset Hills Bancorp [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Black Scholes Method Used [Line Items] | |
Risk-free interest rates, minimum | 0.04% |
Risk-free interest rates, maximum | 1.55% |
Expected dividend yield | 2.82% |
Expected volatility, minimum | 13.00% |
Expected volatility, maximum | 47.00% |
Weighted average fair value of options granted | $3.79 |
Minimum [Member] | Somerset Hills Bancorp [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Black Scholes Method Used [Line Items] | |
Expected lives (years) | 3 months |
Maximum [Member] | Somerset Hills Bancorp [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Black Scholes Method Used [Line Items] | |
Expected lives (years) | 7 years |
StockBased_Compensation_Option
Stock-Based Compensation - Option Activity under Stock Option Plans (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Outstanding, Number of shares, Beginning balance | 514,626 | |
Granted, Number of shares | 0 | |
Exercised, Number of shares | -11,900 | 0 |
Expired, Number of shares | -156,334 | |
Forfeited, Number of shares | -34,687 | |
Outstanding, Number of shares, Ending balance | 311,705 | |
Options exercisable, Number of shares, at year-end | 280,204 | |
Outstanding, Weighted average exercise price, Beginning balance | $10.67 | |
Granted, Weighted average exercise price | $0 | |
Exercised, Weighted average exercise price | $7.52 | |
Expired, Weighted average exercise price | $12.45 | |
Forfeited, Weighted average exercise price | $12.57 | |
Outstanding, Weighted average exercise price, Ending balance | $9.69 | |
Options exercisable, Weighted average exercise price, at year-end | $9.71 | |
Outstanding, Weighted average remaining contractual term (in years), Ending balance | 4 years 1 month 17 days | |
Options exercisable, Weighted average remaining contractual term (in years), at year-end | 3 years 7 months 21 days | |
Outstanding, Aggregate Intrinsic Value, Beginning balance | $754,938 | |
Outstanding, Aggregate Intrinsic Value, Ending balance | 681,861 | |
Options exercisable, Aggregate Intrinsic Value, at year-end | $610,039 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Company's Non-Vested Options Under Company's Option Plans (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of shares, Beginning balance | 514,626 |
Outstanding, Number of shares, Ending balance | 311,705 |
Outstanding, Weighted average exercise price, Beginning balance | $10.67 |
Granted, Weighted-Average Grant-date Fair Value | $0 |
Outstanding, Weighted average exercise price, Ending balance | $9.69 |
Non-vested Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of shares, Beginning balance | 47,789 |
Granted, Shares | 0 |
Vested, Shares | -16,288 |
Outstanding, Number of shares, Ending balance | 31,501 |
Outstanding, Weighted average exercise price, Beginning balance | $3.27 |
Granted, Weighted-Average Grant-date Fair Value | $0 |
Vested, Weighted-Average Grant-date Fair Value | $3.20 |
Outstanding, Weighted average exercise price, Ending balance | $3.31 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Company's Restricted Stock (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of shares, Beginning balance | 262,270 |
Granted, Number of shares | 1,942 |
Vested, Number of shares | -100,694 |
Forfeited, Number of shares | -3,234 |
Outstanding, Number of shares, Ending balance | 160,284 |
Outstanding, Weighted average price, Beginning balance | $9.12 |
Granted, Weighted average price | $11.21 |
Vested, Weighted average price | $9.01 |
Forfeited, Weighted average price | $9.39 |
Outstanding, Weighted average price, Ending balance | $9.21 |
RSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding, Number of shares, Beginning balance | 0 |
Granted, Number of shares | 127,791 |
Vested, Number of shares | -29,135 |
Forfeited, Number of shares | -121 |
Outstanding, Number of shares, Ending balance | 98,535 |
Outstanding, Weighted average price, Beginning balance | $0 |
Granted, Weighted average price | $10.65 |
Vested, Weighted average price | $10.66 |
Forfeited, Weighted average price | $10.66 |
Outstanding, Weighted average price, Ending balance | $10.64 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense under long-term operating leases | $2,700,000 | $2,500,000 | $2,100,000 |
Rent expense to related parties | $139,000 | $180,000 | $227,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Aggregate Future Minimum Commitments of Lease Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $2,469 |
2016 | 2,146 |
2017 | 1,831 |
2018 | 1,578 |
2019 | 1,357 |
Thereafter | 14,896 |
Total | $24,277 |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk - Summary of Approximate Contract Amounts of Collateral or Other Security to Support Financial Instruments with Credit Risk (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments Whose Contract Amounts Represent Credit Risk [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Approximate contract amounts of collateral or other security | $0 | $0 |
Commitments to Extend Credit [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 621,305 | 589,619 |
Standby Letters of Credit and Financial Guarantees Written [Member] | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $10,449 | $9,244 |
Financial_Instruments_with_Off3
Financial Instruments with Off-Balance-Sheet Risk and Concentrations of Credit Risk - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Offsetting [Abstract] | ||
Commitments to lend additional funds to borrowers | $19,000 | $45,000 |
Potential undiscounted amount of future payments, maximum | 10,400,000 | |
Expiry of letters of credit | 2024 | |
Loan and lease commitments | 621,300,000 | |
Loan and lease commitments maturing within one year | 488,200,000 | |
Maturing after one year but within three years | 87,200,000 | |
Maturing after three years but within five years | 477,000 | |
Maturing after five years | 45,400,000 | |
Standby letters of credit | 10,400,000 | |
Standby letters of credit maturing within one year | 10,300,000 | |
Letters of credit maturing after one year but within three years | 68,000 | |
Letters of credit maturing after five years | $80,000 |
Comprehensive_Income_Component
Comprehensive Income - Components of Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unrealized gains (losses) on available for sale securities | |||
Unrealized holding gains (losses) arising during period, Before tax amount | $9,663 | ($13,675) | $2,697 |
Less reclassification adjustment for net gains realized in net income, Before tax amount | 3 | 839 | 1,049 |
Net unrealized gains (losses) on available for sale securities, Before tax amount | 9,660 | -14,514 | 1,648 |
Change in pension liabilities, Before tax amount | 31 | 866 | 30 |
Other comprehensive income (loss), net, Before tax amount | 9,691 | -13,648 | 1,678 |
Unrealized holding gains (losses) arising during period, Tax Benefit (Expense) | -3,483 | 4,985 | -969 |
Less reclassification adjustment for net gains realized in net income, Tax Benefit (Expense) | -1 | -330 | -367 |
Net unrealized gains (losses) on available for sale securities, Tax Benefit (Expense) | -3,482 | 5,315 | -602 |
Change in pension liabilities, Tax Benefit (Expense) | -11 | -278 | -11 |
Other comprehensive income (loss), net, Tax Benefit (Expense) | -3,493 | 5,037 | -613 |
Unrealized holding gains (losses) arising during period, Net of tax amount | 6,180 | -8,690 | 1,728 |
Less reclassification adjustment for net gains realized in net income, Net of tax amount | 2 | 509 | 682 |
Net unrealized gains (losses) on available for sale securities, Net of tax amount | 6,178 | -9,199 | 1,046 |
Change in pension liabilities, Net of tax amount | 20 | 588 | 19 |
Other Comprehensive Income (Loss) | $6,198 | ($8,611) | $1,065 |
Comprehensive_Income_Summary_o
Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | ($4,675) | $3,936 | $2,871 |
Other comprehensive income (loss) before classifications | 6,200 | -8,102 | 1,747 |
Amounts reclassified from accumulated other comprehensive income | -2 | -509 | -682 |
Other Comprehensive Income (Loss) | 6,198 | -8,611 | 1,065 |
Ending balance | 1,523 | -4,675 | 3,936 |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -4,647 | 4,552 | 3,506 |
Other comprehensive income (loss) before classifications | 6,180 | -8,690 | 1,728 |
Amounts reclassified from accumulated other comprehensive income | -2 | -509 | -682 |
Other Comprehensive Income (Loss) | 6,178 | -9,199 | 1,046 |
Ending balance | 1,531 | -4,647 | 4,552 |
Pension Items [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -28 | -616 | -635 |
Other comprehensive income (loss) before classifications | 20 | 588 | 19 |
Other Comprehensive Income (Loss) | 20 | 588 | 19 |
Ending balance | ($8) | ($28) | ($616) |
Fair_Value_Measurement_and_Fai2
Fair Value Measurement and Fair Value of Financial Instruments - Financial Assets and Liabilities are Classified (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets/Liabilities: | ||
Investment securities, available for sale | $457,449 | $431,106 |
U.S. Treasury and U.S. Government Agencies [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 93,920 | 70,165 |
Mortgage-Backed Securities, Residential [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 309,955 | 304,502 |
Obligations of States and Political Subdivisions [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 30,519 | 36,873 |
Equity Securities [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 17,574 | 16,146 |
Fair Value, Measurements, Recurring [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 457,449 | 431,106 |
Total Assets | 457,486 | 431,668 |
Total Liabilities | 37 | 562 |
Fair Value, Measurements, Recurring [Member] | Non-Hedging [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities | 37 | 562 |
Assets/Liabilities: | ||
Other Assets | 37 | 562 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 93,920 | 70,165 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities, Residential [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 314,931 | 304,502 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 30,519 | 36,873 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 505 | 3,420 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 17,574 | 16,146 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 12,475 | 7,569 |
Total Assets | 12,475 | 7,569 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 8,321 | 4,330 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 4,154 | 3,239 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 444,974 | 423,537 |
Total Assets | 445,011 | 424,099 |
Total Liabilities | 37 | 562 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-Hedging [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Liabilities | 37 | 562 |
Assets/Liabilities: | ||
Other Assets | 37 | 562 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 85,599 | 65,835 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities, Residential [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 314,931 | 304,502 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 30,519 | 36,873 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | 505 | 3,420 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Assets/Liabilities: | ||
Investment securities, available for sale | $13,420 | $12,907 |
Fair_Value_Measurement_and_Fai3
Fair Value Measurement and Fair Value of Financial Instruments - Assets are Classified in their Entirety Based on Lowest Level of Input that is Significant to Fair Value Measurement (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans and Leases | $25,693 | $24,619 | $31,531 |
Loans held for sale | 592 | 1,206 | |
Other real estate owned and other repossessed assets | 1,026 | 520 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale | 592 | 1,206 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Loans and Leases | 25,693 | 24,619 | |
Other real estate owned and other repossessed assets | $1,026 | $520 |
Fair_Value_Measurement_and_Fai4
Fair Value Measurement and Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term municipal bond | 5.1 |
Minimum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rates | 5.00% |
Capitalization rates | 5.00% |
Maximum [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rates | 11.00% |
Capitalization rates | 9.00% |
Fair_Value_Measurement_and_Fai5
Fair Value Measurement and Fair Value of Financial Instruments - Carrying Values and Fair Values of Company's Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments - Assets | ||
Investment securities held to maturity, Fair Value | $109,030 | $100,394 |
Investment securities held to maturity, Carrying Value | 107,976 | 101,744 |
Federal Home Loan and other membership bank stock, Fair Value | 9,846 | 7,938 |
Federal Home Loan and other membership bank stock, Carrying Value | 9,846 | 7,938 |
Loans and leases, net Fair Value | 2,624,581 | 2,432,447 |
Loans and leases, net Carrying Value | 2,623,142 | 2,439,195 |
Financial Instruments - Liabilities | ||
Certificates of Deposit, Fair Value | 279,439 | 296,237 |
Certificates of Deposit, Carrying value | 279,962 | 296,086 |
Other borrowings, Fair Value | 205,343 | 121,870 |
Other borrowings, Carrying value | 202,498 | 119,000 |
Subordinated debentures, Fair Value | 30,929 | 27,835 |
Subordinated debentures, Carrying Value | 41,238 | 41,238 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Instruments - Assets | ||
Investment securities held to maturity, Fair Value | 103,916 | 95,194 |
Federal Home Loan and other membership bank stock, Fair Value | 9,846 | 7,938 |
Financial Instruments - Liabilities | ||
Certificates of Deposit, Fair Value | 279,439 | 296,237 |
Other borrowings, Fair Value | 205,343 | 121,870 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Instruments - Assets | ||
Investment securities held to maturity, Fair Value | 5,114 | 5,200 |
Loans and leases, net Fair Value | 2,624,581 | 2,432,447 |
Financial Instruments - Liabilities | ||
Subordinated debentures, Fair Value | $30,929 | $27,835 |
Derivatives_Additional_Informa
Derivatives - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Securities pledged for collateral | $505,000 | $1,500,000 |
Derivatives_Summary_Informatio
Derivatives - Summary Information Regarding Derivatives (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
3rd Party Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $17,279 | $17,691 |
Average Maturity (Years) | 5 years 8 months 12 days | 6 years 8 months 12 days |
Weighted Average Rate Fixed | 3.84% | 3.83% |
Weighted Average Variable Rate, description | 1Mo Libor + 2.21 | 1Mo Libor + 2.21 |
Weighted Average Variable Rate | 2.21% | 2.21% |
Fair Value | -37 | -562 |
Customer Interest Rate Swaps [Member] | ||
Derivative [Line Items] | ||
Notional Amount | -17,279 | -17,691 |
Average Maturity (Years) | 5 years 8 months 12 days | 6 years 8 months 12 days |
Weighted Average Rate Fixed | 3.84% | 3.83% |
Weighted Average Variable Rate, description | 1Mo Libor + 2.21 | 1Mo Libor + 2.21 |
Weighted Average Variable Rate | 2.21% | 2.21% |
Fair Value | $37 | $562 |
Regulatory_Matters_Additional_
Regulatory Matters - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Banking and Thrift [Abstract] | |
Percentage of surplus | Not less than 50% |
Amount available for dividends under the surplus capital requirements | $270.20 |
Regulatory_Matters_Summary_of_
Regulatory Matters - Summary of Capital Ratios (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) | $337,597 | $313,499 |
Tier 1 capital (to risk-weighted assets) | 305,814 | 283,307 |
Tier 1 capital (to average assets) | 305,814 | 283,307 |
Total capital (to risk-weighted assets), ratio | 12.98% | 12.98% |
Tier 1 capital (to risk-weighted assets), ratio | 11.76% | 11.73% |
Tier 1 capital (to average assets), ratio | 9.08% | 8.90% |
Total capital (to risk-weighted assets), For capital adequacy purposes | 208,024 | 193,166 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes | 104,012 | 96,583 |
Tier 1 capital (to average assets), For capital adequacy purposes | 134,760 | 127,281 |
Total capital (to risk-weighted assets), For capital adequacy purposes , ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For capital adequacy purposes, ratio | 4.00% | 4.00% |
Subsidiaries [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) | 314,047 | 296,334 |
Tier 1 capital (to risk-weighted assets) | 282,267 | 266,195 |
Tier 1 capital (to average assets) | 282,267 | 266,195 |
Total capital (to risk-weighted assets), ratio | 12.10% | 12.29% |
Tier 1 capital (to risk-weighted assets), ratio | 10.87% | 11.04% |
Tier 1 capital (to average assets), ratio | 8.39% | 8.38% |
Total capital (to risk-weighted assets), For capital adequacy purposes | 207,714 | 192,819 |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes | 103,857 | 96,409 |
Tier 1 capital (to average assets), For capital adequacy purposes | 134,614 | 127,104 |
Total capital (to risk-weighted assets), For capital adequacy purposes , ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), For capital adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets), For capital adequacy purposes, ratio | 4.00% | 4.00% |
Total capital (to risk - weighted assets), To be well capitalized under prompt corrective action provisions | 259,642 | 241,023 |
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions | 155,785 | 144,614 |
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action provisions | $168,268 | $158,879 |
Total capital (to risk - weighted assets), To be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets), To be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Condensed_Financial_Informatio2
Condensed Financial Information - Parent Company Only - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash and due from banks | $109,316 | $102,721 | $107,545 | $72,558 |
Investment securities available for sale | 457,449 | 431,106 | ||
Other assets | 16,023 | 19,764 | ||
TOTAL ASSETS | 3,538,325 | 3,317,791 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 15,397 | 14,933 | ||
Subordinated debentures | 41,238 | 41,238 | ||
Total stockholders' equity | 379,438 | 351,424 | 280,867 | 259,783 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 3,538,325 | 3,317,791 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and due from banks | 11,893 | 7,478 | 10,349 | 10,625 |
Investment securities available for sale | 4,162 | 3,248 | ||
Investment in subsidiaries | 395,664 | 374,738 | ||
Other assets | 9,344 | 7,530 | ||
TOTAL ASSETS | 421,063 | 392,994 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other liabilities | 387 | 332 | ||
Subordinated debentures | 41,238 | 41,238 | ||
Total stockholders' equity | 379,438 | 351,424 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $421,063 | $392,994 |
Condensed_Financial_Informatio3
Condensed Financial Information - Parent Company Only - Condensed Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME | |||
Other income | $1,110 | $2,093 | $1,517 |
EXPENSE | |||
Noninterest expenses | 79,135 | 78,741 | 67,673 |
Income before provision for income taxes | 46,288 | 37,419 | 31,838 |
Income taxes benefit | 15,159 | 12,450 | 10,096 |
NET INCOME | 31,129 | 24,969 | 21,742 |
Interest on preferred stock and discount accretion | 620 | ||
Net Income Available to Common Shareholders | 31,129 | 24,969 | 21,122 |
Parent Company [Member] | |||
INCOME | |||
Dividends from subsidiaries | 16,581 | 20,916 | 31,300 |
Other income | 102 | 1,640 | 403 |
TOTAL INCOME | 16,683 | 22,556 | 31,703 |
EXPENSE | |||
Interest on subordinated debentures | 1,068 | 1,286 | 3,664 |
Noninterest expenses | 313 | 2,551 | 1,718 |
TOTAL EXPENSE | 1,381 | 3,837 | 5,382 |
Income before provision for income taxes | 15,302 | 18,719 | 26,321 |
Income taxes benefit | -447 | -722 | -1,654 |
Income before equity in undistributed income of subsidiaries | 15,749 | 19,441 | 27,975 |
Equity in undistributed income (loss) of subsidiaries | 15,380 | 5,528 | -6,233 |
NET INCOME | 31,129 | 24,969 | 21,742 |
Interest on preferred stock and discount accretion | 620 | ||
Net Income Available to Common Shareholders | $31,129 | $24,969 | $21,122 |
Condensed_Financial_Informatio4
Condensed Financial Information - Parent Company Only - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | $31,129,000 | $24,969,000 | $21,742,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Share based compensation | 1,390,000 | 895,000 | 746,000 |
Gain on early extinguishment | -1,197,000 | ||
Increase in other assets | -879,000 | 7,366,000 | 2,107,000 |
(Decrease) increase in other liabilities | 495,000 | 995,000 | 1,089,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 45,629,000 | 50,728,000 | 48,591,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of securities | -90,630,000 | -187,452,000 | -144,652,000 |
Proceeds from sale of securities available for sale | 15,719,000 | 64,020,000 | 97,824,000 |
NET CASH USED IN INVESTING ACTIVITIES | -220,556,000 | -66,066,000 | -82,518,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Issuance of stock to the dividend reinvestment and stock purchase plan | 77,000 | 186,000 | 160,000 |
Proceeds on issuance of stock, net | 25,040,000 | ||
Redemption of subordinated debentures, net | -9,113,000 | -25,000,000 | |
Redemption of preferred stock | -21,800,000 | ||
Retirement of Restricted stock | -104,000 | ||
Excess tax benefits | 70,000 | 142,000 | 4,000 |
Exercise of stock options | 90,000 | 2,209,000 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 181,522,000 | 10,514,000 | 68,914,000 |
Net increase (decrease) in cash and cash equivalents | 6,595,000 | -4,824,000 | 34,987,000 |
Cash and cash equivalents, beginning of year | 102,721,000 | 107,545,000 | 72,558,000 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 109,316,000 | 102,721,000 | 107,545,000 |
Parent Company [Member] | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income | 31,129,000 | 24,969,000 | 21,742,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Share based compensation | 895,000 | 746,000 | |
Gain on securities | -359,000 | ||
Gain on land held for sale | -235,000 | ||
Gain on early extinguishment | -1,197,000 | ||
Increase in other assets | -174,000 | -954,000 | -1,553,000 |
(Decrease) increase in other liabilities | -46,000 | 25,000 | -610,000 |
Equity in undistributed (income) loss of subsidiaries | -15,380,000 | -5,528,000 | 6,233,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 15,529,000 | 17,851,000 | 26,323,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Net cash used in acquisition | -6,233,000 | ||
Purchases of securities | -471,000 | -415,000 | -53,000 |
Sale of land held for sale | 60,000 | 1,042,000 | |
Proceeds from sale of securities available for sale | 654,000 | ||
Contribution to subsidiary | 0 | 0 | 0 |
NET CASH USED IN INVESTING ACTIVITIES | -411,000 | -5,994,000 | 989,000 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Cash dividends paid on common and preferred stock | -10,836,000 | -8,152,000 | -5,992,000 |
Issuance of stock to the dividend reinvestment and stock purchase plan | 77,000 | 186,000 | 160,000 |
Proceeds on issuance of stock, net | 25,040,000 | ||
Redemption of subordinated debentures, net | -9,113,000 | -25,000,000 | |
Redemption of preferred stock | -19,000,000 | ||
Warrant repurchase | -2,800,000 | ||
Retirement of Restricted stock | -104,000 | ||
Excess tax benefits | 70,000 | 142,000 | 4,000 |
Exercise of stock options | 90,000 | 2,209,000 | |
NET CASH PROVIDED BY FINANCING ACTIVITIES | -10,703,000 | -14,728,000 | -27,588,000 |
Net increase (decrease) in cash and cash equivalents | 4,415,000 | -2,871,000 | -276,000 |
Cash and cash equivalents, beginning of year | 7,478,000 | 10,349,000 | 10,625,000 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $11,893,000 | $7,478,000 | $10,349,000 |