Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 06, 2015 | |
Document and Entity Information: | ||
Entity Registrant Name | Great Southern Bancorp Inc | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Trading Symbol | gsbc | |
Amendment Flag | false | |
Entity Central Index Key | 854,560 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 13,853,811 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
GREAT SOUTHERN BANCORP, INC. AN
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES -- CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (June 30, 2015 figures unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash | $ 111,729 | $ 109,052 |
Interest-bearing deposits in other financial institutions | 157,499 | 109,595 |
Cash and cash equivalents | 269,228 | 218,647 |
Available-for-sale securities | 326,389 | 365,506 |
Held-to-maturity securities | 353 | 450 |
Mortgage loans held for sale | 16,567 | 14,579 |
Loans receivable, net | 3,202,377 | 3,038,848 |
FDIC indemnification asset | 32,177 | 44,334 |
Interest receivable | 11,306 | 11,219 |
Prepaid expenses and other assets | 59,127 | 60,452 |
Other real estate owned, net | 39,997 | 45,838 |
Premises and equipment, net | 127,627 | 124,841 |
Goodwill and other intangible assets | 6,633 | 7,508 |
Investment in Federal Home Loan Bank stock | 12,605 | 16,893 |
Current and deferred income taxes | 6,784 | 2,219 |
Total Assets | 4,111,170 | 3,951,334 |
Liabilities: | ||
Deposits | 3,196,318 | 2,990,840 |
Federal Home Loan Bank advances | 193,594 | 271,641 |
Securities sold under reverse repurchase agreements with customers | 216,100 | 168,993 |
Short-term borrowings | 1,308 | 42,451 |
Subordinated debentures issued to capital trusts | 30,929 | 30,929 |
Accrued interest payable | 1,076 | 1,067 |
Advances from borrowers for taxes and insurance | 7,265 | 4,929 |
Accounts payable and accrued expenses | 27,000 | 20,739 |
Total Liabilities | 3,673,590 | 3,531,589 |
Capital stock | ||
Serial preferred stock | 57,943 | 57,943 |
Common stock | 138 | 138 |
Additional paid-in capital | 23,167 | 22,345 |
Retained earnings | 350,467 | 332,283 |
Accumulated other comprehensive income | 5,865 | 7,036 |
Total Stockholders' Equity | 437,580 | 419,745 |
Total Liabilities and Stockholders' Equity | $ 4,111,170 | $ 3,951,334 |
GREAT SOUTHERN BANCORP, INC. A3
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES - CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (June 30, 2015 figures unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statements of Financial Condition | ||
Held-to-maturity securities fair value | $ 390 | $ 499 |
Allowance for loan losses | $ 39,698 | $ 38,435 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock authorized shares | 1,000,000 | 1,000,000 |
Preferred stock issued shares | 57,943 | 57,943 |
Preferred stock shares outstanding | 57,943 | 57,943 |
Preferred stock liquidation amount | $ 1,000 | $ 1,000 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 20,000,000 | 20,000,000 |
Common stock shares issued | 13,801,109 | 13,754,806 |
Common stock shares outstanding | 13,801,109 | 13,754,806 |
GREAT SOUTHERN BANCORP, INC. A4
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES -- CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INTEREST INCOME | ||||
Loans | $ 43,947 | $ 41,412 | $ 89,896 | $ 80,721 |
Investment securities and other | 1,787 | 2,972 | 3,744 | 5,958 |
TOTAL INTEREST INCOME | 45,734 | 44,384 | 93,640 | 86,679 |
INTEREST EXPENSE | ||||
Deposits | 3,133 | 2,752 | 6,294 | 5,413 |
Federal Home Loan Bank advances | 416 | 1,010 | 863 | 1,984 |
Short-term borrowings and repurchase agreements | 16 | 512 | 37 | 1,069 |
Interest expense on subordinated debentures issued to capital trusts | 160 | 139 | 312 | 275 |
TOTAL INTEREST EXPENSE | 3,725 | 4,413 | 7,506 | 8,741 |
NET INTEREST INCOME | 42,009 | 39,971 | 86,134 | 77,938 |
PROVISION FOR LOAN LOSSES | 1,300 | 1,462 | 2,600 | 3,154 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 40,709 | 38,509 | 83,534 | 74,784 |
NON-INTEREST INCOME | ||||
Commissions | 299 | 344 | 580 | 626 |
Service charges and ATM fees | 5,026 | 4,728 | 9,670 | 8,896 |
Net realized gains on sales of loans | 1,059 | 608 | (1,999) | (1,157) |
Net realized gains on sales of available-for-sale securities | 569 | 642 | ||
Late charges and fees on loans | 762 | 265 | 1,110 | 579 |
Gain (loss) on derivative interest rate products | 113 | (130) | 20 | (233) |
Initial gain recognized on business acquisition | 10,805 | (10,805) | ||
Amortization of income/expense related to business acquisitions | (5,158) | (7,210) | (12,054) | (13,598) |
Other income | 1,356 | 652 | 2,074 | 2,681 |
TOTAL NON-INTEREST INCOME | 3,457 | 10,631 | 3,399 | 11,555 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 14,606 | 13,470 | 29,183 | 26,487 |
Net occupancy and equipment expense | 6,115 | 5,210 | 12,169 | 10,614 |
Postage | 912 | 844 | 1,801 | 1,637 |
Insurance | 856 | 953 | 1,835 | 1,879 |
Advertising | 750 | 438 | 1,182 | 1,169 |
Office supplies and printing | 378 | 367 | 715 | 657 |
Telephone | 767 | 681 | 1,532 | 1,417 |
Legal, audit and other professional fees | 664 | 908 | 1,287 | 1,841 |
Expense on foreclosed assets | 318 | 1,342 | 703 | 2,192 |
Partnership tax credit investment amortization | 420 | 427 | 840 | 880 |
Other operating expenses | 2,163 | 9,759 | 3,942 | 11,520 |
TOTAL NON-INTEREST EXPENSE | 27,949 | 34,399 | 55,189 | 60,293 |
INCOME BEFORE INCOME TAXES | 16,217 | 14,741 | 31,744 | 26,046 |
PROVISION FOR INCOME TAXES | 4,214 | 3,687 | 8,088 | 6,174 |
NET INCOME | 12,003 | 11,054 | 23,656 | 19,872 |
Preferred stock dividends | 145 | 145 | 290 | 290 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 11,858 | $ 10,909 | $ 23,366 | $ 19,582 |
BASIC EARNINGS PER COMMON SHARE | $ 0.86 | $ 0.80 | $ 1.69 | $ 1.43 |
DILUTED EARNINGS PER COMMON SHARE | 0.85 | 0.79 | 1.67 | 1.42 |
DIVIDENDS DECLARED PER COMMON SHARE | $ 0.22 | $ 0.20 | $ 0.42 | $ 0.40 |
GREAT SOUTHERN BANCORP, INC. A5
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES -- CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statements of Comprehensive Income | ||||
Net Income | $ 12,003 | $ 11,054 | $ 23,656 | $ 19,872 |
Unrealized appreciation (depreciation) on available-for-sale securities, net | (968) | 2,126 | (1,066) | 4,973 |
Reclassification adjustment for gains included in net income, net | (370) | (417) | ||
Change in fair value of cash flow hedge, net | (9) | (101) | (105) | (143) |
Comprehensive Income | $ 11,026 | $ 12,709 | $ 22,485 | $ 24,285 |
GREAT SOUTHERN BANCORP, INC. A6
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES -- CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statements of Comprehensive Income | ||||
Tax effect of unrealized appreciation (depreciation) on available-for-sale securities, taxes (credit) | $ (329) | $ 1,145 | $ (381) | $ 2,678 |
Tax effect reclassification adjustment for gains included in net income, taxes (credit) | 0 | (199) | 0 | (225) |
Tax effect of change in fair value of cash flow hedge, taxes (credit) | $ (13) | $ (54) | $ (66) | $ (77) |
GREAT SOUTHERN BANCORP, INC. A7
GREAT SOUTHERN BANCORP, INC. AND SUBSIDIARIES -- CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 23,656 | $ 19,872 |
Proceeds from sales of loans held for sale | 80,302 | 47,922 |
Originations of loans held for sale | (83,449) | (49,089) |
Items not requiring (providing) cash: | ||
Depreciation | 4,596 | 4,220 |
Amortization of other assets | 1,715 | 1,525 |
Compensation expense for stock option grants | 263 | 273 |
Provision for loan losses | 2,600 | 3,154 |
Net gains on loan sales | (1,999) | (1,157) |
Net gains on sale of available-for-sale investment securities | (642) | |
Net gains on sale of premises and equipment | (631) | (41) |
(Gain) loss on sale of foreclosed assets | (489) | 790 |
Initial gain recognized on business acquisition | (10,805) | |
Amortization of deferred income, premiums, discounts and fair value adjustments | 5,473 | 11,605 |
(Gain) loss on derivative interest rate products | (20) | 233 |
Deferred income taxes | (6,209) | (371) |
Changes in: | ||
Interest receivable | (87) | 761 |
Prepaid expenses and other assets | 4,566 | (288) |
Accounts payable and accrued expenses | 5,926 | (3,492) |
Income taxes refundable/payable | 2,093 | |
Net cash provided by operating activities | 38,306 | 24,470 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net increase in loans | (121,360) | (143,068) |
Purchase of loans | (44,194) | (39,926) |
Cash received from acquisitions | 189,437 | |
Cash received from FDIC loss sharing reimbursements | 1,490 | 5,894 |
Purchase of premises and equipment | (8,655) | (7,170) |
Proceeds from sale of premises and equipment | 1,904 | 197 |
Proceeds from sale of foreclosed assets | 11,111 | 12,362 |
Capitalized costs on foreclosed assets | (20) | (40) |
Proceeds from sales of available-for-sale investment securities | 41,312 | |
Proceeds from maturing investment securities | 110 | 110 |
Proceeds from called investment securities | 5,143 | 4,535 |
Principal reductions on mortgage-backed securities | 32,448 | 53,996 |
Purchase of available-for-sale securities | (1,410) | (19,914) |
Redemption of Federal Home Loan Bank stock | 4,288 | 1,768 |
Net cash provided by (used in) investing activities | (119,145) | 99,493 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in certificates of deposit | 167,179 | (102,932) |
Net increase in checking and savings deposits | 38,601 | 37,138 |
Proceeds from Federal Home Loan Bank advances | 3,316,500 | 245,000 |
Repayments of Federal Home Loan Bank advances | (3,394,532) | (277,284) |
Net increase in short-term borrowings | 5,964 | 22,165 |
Repayments of structured repurchase agreements | (50,000) | |
Advances from borrowers for taxes and insurance | 2,336 | 2,677 |
Dividends paid | (5,796) | (5,490) |
Purchase of company stock | (481) | |
Stock options exercised | 1,168 | 545 |
Net cash provided by (used in) financing activities | 131,420 | (128,662) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 50,581 | (4,699) |
CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD | 218,647 | 227,925 |
CASH AND CASH EQUIVALENTS END OF PERIOD | $ 269,228 | $ 223,226 |
Note 1_ Basis of Presentation
Note 1: Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 1: Basis of Presentation | NOTE 1: BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the "Company" or "Great Southern") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations and cash flows of the Company for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2014, has been derived from the audited consolidated statement of financial condition of the Company as of that date. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K |
Note 2_ Nature of Operations an
Note 2: Nature of Operations and Operating Segments | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 2: Nature of Operations and Operating Segments | NOTE 2: NATURE OF OPERATIONS AND OPERATING SEGMENTS The Company operates as a one-bank holding company. The Company’s business primarily consists of the operations of Great Southern Bank (the “Bank”), which provides a full range of financial services to customers primarily located in Missouri, Iowa, Kansas, Minnesota, Nebraska and Arkansas. In addition, the Company operates commercial loan production offices in Dallas, Texas and Tulsa, Oklahoma. The Company and the Bank are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory agencies. The Company’s banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans through attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others . The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. Selected information is not presented separately for the Company’s reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements. |
Note 3_ Recent Accounting Prono
Note 3: Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 3: Recent Accounting Pronouncements | NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS In January 2014, the FASB issued ASU No. 2014-04 to amend FASB ASC Topic 310, Receivables – Troubled Debt Restructurings by Creditors In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 660): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40) Revenue Recognition In June 2014, the FASB issued ASU No. 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. In May 2015, the FASB issued ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value Per Share |
Note 4_ Stockholders' Equity
Note 4: Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 4: Stockholders' Equity | NOTE 4: STOCKHOLDERS' EQUITY Previously, the Company's stockholders approved the Company's reincorporation to the State of Maryland. Under Maryland law, there is no concept of "Treasury Shares." Instead, shares purchased by the Company constitute authorized but unissued shares under Maryland law. Accounting principles generally accepted in the United States of America state that accounting for treasury stock shall conform to state law. The cost of shares purchased by the Company has been allocated to Common Stock and Retained Earnings balances. |
Note 5_ Earnings Per Share
Note 5: Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 5: Earnings Per Share | NOTE 5: EARNINGS PER SHARE Three Months Ended June 30, 2015 2014 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 13,790 13,685 Net income available to common stockholders $11,858 $10,909 Per common share amount $0.86 $0.80 Diluted: Average shares outstanding 13,790 13,685 Net effect of dilutive stock options – based on the treasury stock method using average market price 189 95 Diluted shares 13,979 13,780 Net income available to common stockholders $11,858 $10,909 Per common share amount $0.85 $0.79 Six Months Ended June 30, 2015 2014 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 13,790 13,685 Net income available to common stockholders $23,366 $19,582 Per common share amount $1.69 $1.43 Diluted: Average shares outstanding 13,790 13,685 Net effect of dilutive stock options – based on the treasury stock method using average market price 189 95 Diluted shares 13,979 13,780 Net income available to common stockholders $23,366 $19,582 Per common share amount $1.67 $1.42 Options outstanding at June 30, 2015 and 2014, to purchase 12,750 and 182,275 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three and six month periods because such options’ exercise prices were greater than the average market prices of the common shares for the three and six months ended June 30, 2015 and 2014, respectively. |
Note 6_ Investment Securities
Note 6: Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 6: Investment Securities | NOTE 6: INVESTMENT SECURITIES June 30, 2015 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: U.S. government agencies $20,000 $— $197 $19,803 2.00% Mortgage-backed securities 221,842 3,544 526 224,860 1.79 States and political subdivisions 74,018 4,388 39 78,367 5.72 Equity securities 847 2,512 — 3,359 — $316,707 $10,444 $762 $326,389 2.72% December 31, 2014 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: U.S. government agencies $20,000 $— $486 $19,514 2.00% Mortgage-backed securities 254,294 4,325 821 257,798 1.97 States and political subdivisions 79,237 5,810 7 85,040 5.76 Equity securities 847 2,307 — 3,154 — $354,378 $12,442 $1,314 $365,506 2.82% June 30, 2015 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) HELD-TO-MATURITY SECURITIES: States and political subdivisions $353 $37 $ $390 7.37% December 31, 2014 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) HELD-TO-MATURITY SECURITIES: States and political subdivisions $450 $49 $ $499 7.37% The amortized cost and fair value of available-for-sale securities at June 30, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In Thousands) One year or less $ — $ — After one through five years 254 266 After five through ten years 3,643 3,842 After ten years 90,121 94,062 Securities not due on a single maturity date 221,842 224,860 Equity securities 847 3,359 $316,707 $326,389 The held-to-maturity securities at June 30, 2015, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value (In Thousands) After one through five years $353 $390 Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2015 and December 31, 2014, respectively, was approximately $85.8 million and $106.0 million, which is approximately 26.3% and 29.0% of the Company’s available-for-sale and held-to-maturity investment portfolio, respectively. Based on an evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary at June 30, 2015. The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and December 31, 2014: June 30, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) U.S. government agencies $ $ $20,000 $ $20,000 $(197) Mortgage-backed securities 19,004 (93) 43,333 (433) 62,337 (526) State and political subdivisions 2,555 (25) 917 (14) 3,472 (39) $21,559 $(118) $64,250 $(644) $85,809 $(762) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) U.S. government agencies $ — $ $ $20,000 $(486) Mortgage-backed securities 40,042 (328) 45,056 (493) 85,098 (821) State and political subdivisions — — 925 (7) 925 (7) $40,042 $(328) $65,981 $(986) $106,023 $(1,314) Gross gains of $0 and $0 and gross losses of $0 and $0 resulting from sales of available-for-sale securities were realized for the three and six months ended June 30, 2015. Gross gains of $569,000 and $642,000 and gross losses of $0 and $0 resulting from sales of available-for-sale securities were realized for the three and six months ended June 30, 2014. Gains and losses on sales of securities are determined on the specific-identification method. Other-than-temporary Impairment. The accounting guidance for beneficial interests in securitized financial assets provides incremental impairment guidance for a subset of the debt securities within the scope of the guidance for investments in debt and equity securities. Where the security is a beneficial interest in securitized financial assets, the Company uses the beneficial interests in securitized financial asset impairment model. Where the security is not a beneficial interest in securitized financial assets, the Company uses the debt and equity securities impairment model. The Company does not currently have securities within the scope of this guidance for beneficial interests in securitized financial assets. The Company conducts periodic reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred. The Company considers the length of time a security has been in an unrealized loss position, the relative amount of the unrealized loss compared to the carrying value of the security, the type of security and other factors. If certain criteria are met, the Company performs additional review and evaluation using observable market values or various inputs in economic models to determine if an unrealized loss is other-than-temporary. The Company uses quoted market prices for marketable equity securities and uses broker pricing quotes based on observable inputs for equity investments that are not traded on a stock exchange. For non-agency collateralized mortgage obligations, to determine if the unrealized loss is other-than-temporary, the Company projects total estimated defaults of the underlying assets (mortgages) and multiplies that calculated amount by an estimate of realizable value upon sale in the marketplace (severity) in order to determine the projected collateral loss. The Company also evaluates any current credit enhancement underlying these securities to determine the impact on cash flows. If the Company determines that a given security position will be subject to a write-down or loss, the Company records the expected credit loss as a charge to earnings. During the three and six months ended June 30, 2015, no securities were determined to have impairment that was other than temporary. Credit Losses Recognized on Investments. Amounts Reclassified Out of Accumulated Other Comprehensive Income. Amounts Reclassified from Other Comprehensive Income Three Months Ended June 30, Affected Line Item in the Statements 2015 2014 of Income (In Thousands) Unrealized gains (losses) on available- Net realized gains on available- for-sale securities $— $569 for-sale securities (Total reclassified amount before tax) Income Taxes — (199) Provision for income taxes Total reclassifications out of accumulated other comprehensive income $— $370 Amounts Reclassified from Other Comprehensive Income Six Months Ended June 30, Affected Line Item in the Statements 2015 2014 of Income (In Thousands) Unrealized gains (losses) on available- Net realized gains on available- for-sale securities $— $642 for-sale securities (Total reclassified amount before tax) Income Taxes — (225) Provision for income taxes Total reclassifications out of accumulated other comprehensive income $— $417 |
Note 7_ Loans and Allowance For
Note 7: Loans and Allowance For Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 7: Loans and Allowance For Loan Losses | NOTE 7: LOANS AND ALLOWANCE FOR LOAN LOSSES June 30, December 31, 2015 2014 (In Thousands) One- to four-family residential construction $38,476 $40,361 Subdivision construction 34,253 28,593 Land development 48,574 52,096 Commercial construction 459,907 392,929 Owner occupied one- to four-family residential 94,024 87,549 Non-owner occupied one- to four-family residential 146,480 143,051 Commercial real estate 1,015,454 945,876 Other residential 385,901 392,414 Commercial business 391,674 354,012 Industrial revenue bonds 39,532 41,061 Consumer auto 371,271 323,353 Consumer other 76,581 78,029 Home equity lines of credit 70,515 66,272 Acquired FDIC-covered loans, net of discounts 266,371 286,608 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 38,482 49,945 Acquired non-covered loans, net of discounts 110,865 121,982 3,588,360 3,404,131 Undisbursed portion of loans in process (343,276) (323,572) Allowance for loan losses (39,698) (38,435) Deferred loan fees and gains, net (3,009) (3,276) $3,202,377 $3,038,848 Weighted average interest rate 4.59% 4.66% Classes of loans by aging were as follows: June 30, 2015 Total Loans Past Due > 90 Days 30-59 Days 60-89 Days 90 Days Total Past Total Loans Past Due and Past Due Past Due or More Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $ — $ — $ — $ — $38,476 $38,476 $ — Subdivision construction 306 — 56 362 33,891 34,253 — Land development 34 106 11 151 48,423 48,574 — Commercial construction — — — — 459,907 459,907 — Owner occupied one- to four- family residential 68 120 760 948 93,076 94,024 — Non-owner occupied one- to four-family residential — 101 212 313 146,167 146,480 — Commercial real estate 2,349 87 2,670 5,106 1,010,348 1,015,454 — Other residential — — — — 385,901 385,901 — Commercial business 190 — 215 405 391,269 391,674 — Industrial revenue bonds — — — — 39,532 39,532 — Consumer auto 1,773 397 476 2,646 368,625 371,271 4 Consumer other 659 235 515 1,409 75,172 76,581 222 Home equity lines of credit 128 105 194 427 70,088 70,515 — Acquired FDIC-covered loans, net of discounts 1,173 1,661 14,753 17,587 248,784 266,371 747 Acquired loans no longer covered by loss sharing agreements, net of discounts 16 — 91 107 38,375 38,482 — Acquired non-covered loans, net of discounts 786 304 8,956 10,046 100,819 110,865 — 7,482 3,116 28,909 39,507 3,548,853 3,588,360 973 Less FDIC-supported loans, and acquired non-covered loans, net of discounts 1,975 1,965 23,800 27,740 387,978 415,718 747 Total $ 5,507 $ 1,151 $ 5,109 $ 11,767 $ 3,160,875 $ 3,172,642 $ 226 December 31, 2014 Total Loans Total > 90 Days Past 30-59 Days 60-89 Days Over 90 Total Past Loans Due and Past Due Past Due Days Due Current Receivable Still Accruing (In Thousands) One- to four-family residential construction $— $— $— $— $40,361 $40,361 $— Subdivision construction 109 — — 109 28,484 28,593 — Land development 110 — 255 365 51,731 52,096 — Commercial construction — — — — 392,929 392,929 — Owner occupied one- to four- family residential 2,037 441 1,029 3,507 84,042 87,549 170 Non-owner occupied one- to four-family residential 583 — 296 879 142,172 143,051 — Commercial real estate 6,887 — 4,699 11,586 934,290 945,876 187 Other residential — — — — 392,414 392,414 — Commercial business 59 — 411 470 353,542 354,012 — Industrial revenue bonds — — — — 41,061 41,061 — Consumer auto 1,801 244 316 2,361 320,992 323,353 — Consumer other 1,301 260 801 2,362 75,667 78,029 397 Home equity lines of credit 89 — 340 429 65,843 66,272 22 Acquired FDIC-covered loans, net of discounts 6,236 1,062 16,419 23,717 262,891 286,608 194 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 754 46 243 1,043 48,902 49,945 — Acquired non-covered loans, net of discounts 2,638 640 11,248 14,526 107,456 121,982 — 22,604 2,693 36,057 61,354 3,342,777 3,404,131 970 Less FDIC-supported loans, and acquired non-covered loans, net of discounts 9,628 1,748 27,910 39,286 419,249 458,535 194 Total $ 12,976 $ 945 $ 8,147 $ 22,068 $ 2,923,528 $ 2,945,596 $ 776 Nonaccruing loans (excluding FDIC-supported loans, net of discount and acquired non-covered loans, net of discount) are summarized as follows: June 30, December 31, 2015 2014 (In Thousands) One- to four-family residential construction $ — $— Subdivision construction 56 — Land development 11 255 Commercial construction — — Owner occupied one- to four-family residential 760 859 Non-owner occupied one- to four-family residential 212 296 Commercial real estate 2,670 4,512 Other residential — — Commercial business 215 411 Industrial revenue bonds — — Consumer auto 472 316 Consumer other 293 404 Home equity lines of credit 194 318 Total $4,883 $7,371 The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2015. Also presented is the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2015: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance April 1, 2015 $3,985 $2,809 $20,216 $3,356 $3,945 $4,760 $39,071 Provision (benefit) charged to expense (110) 524 (146) (77) 423 686 1,300 Losses charged off (80) — (2) — (551) (935) (1,568) Recoveries 91 9 123 9 175 488 895 Balance June 30, 2015 $3,886 $3,342 $20,191 $3,288 $3,992 $4,999 $39,698 Balance January 1, 2015 $3,455 $2,941 $19,773 $3,562 $3,679 $5,025 $38,435 Provision (benefit) charged to expense 446 384 239 (190) 890 831 2,600 Losses charged off (220) (2) (4) (197) (775) (2,082) (3,280) Recoveries 205 19 183 113 198 1,225 1,943 Balance June 30, 2015 $3,886 $3,342 $20,191 $3,288 $3,992 $4,999 $39,698 Ending balance: Individually evaluated for impairment $ 663 $— $2,130 $ 1,411 $ 261 $243 $ 4,708 Collectively evaluated for impairment $3,044 $ 3,323 $ 16,752 $1,671 $3,693 $4,352 $ 32,835 Loans acquired and accounted for under ASC 310-30 $179 $19 $1,309 $206 $38 $404 $2,155 Loans Individually evaluated for impairment $ 9,992 $9,729 $ 25,891 $ 7,334 $ 1,567 $ 1,558 $ 56,071 Collectively evaluated for impairment $ 303,241 $ 376,172 $ 989,563 $ 501,147 $ 429,639 $ 516,809 $3,116,571 Loans acquired and accounted for under ASC 310-30 $ 209,627 $ 47,199 $ 90,814 $ 6,726 $ 14,284 $ 47,068 $ 415,718 The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2014: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance April 1, 2014 $4,638 $1,998 $18,443 $7,071 $2,341 $3,784 $38,275 Provision (benefit) charged to expense 915 (281) (1,629) 1,110 979 368 1,462 Losses charged off (505) (2) (338) (95) (738) (764) (2,442) Recoveries 25 8 — 163 — 591 787 Balance June 30, 2014 $5,073 $1,723 $16,476 $8,249 $2,582 $3,979 $38,082 Balance January 1, 2014 $6,235 $2,678 $16,939 $4,464 $6,451 $3,349 $40,116 Provision (benefit) charged to expense 367 (968) (134) 3,693 (1,182) 1,378 3,154 Losses charged off (1,697) (2) (719) (130) (2,687) (1,784) (7,019) Recoveries 168 15 390 222 — 1,036 1,831 Balance June 30, 2014 $5,073 $1,723 $16,476 $8,249 $2,582 $3,979 $38,082 The following table presents the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Individually evaluated for impairment $829 $— $1,751 $1,507 $823 $232 $5,142 Collectively evaluated for impairment $2,532 $2,923 $16,671 $1,905 $2,805 $4,321 $31,157 Loans acquired and accounted for under ASC 310-30 $94 $18 $1,351 $150 $51 $472 $2,136 Loans Individually evaluated for impairment $11,488 $9,804 $28,641 $7,601 $2,725 $1,480 $61,739 Collectively evaluated for impairment $288,066 $382,610 $917,235 $437,424 $392,348 $466,174 $2,883,857 Loans acquired and accounted for under ASC 310-30 $234,158 $48,470 $107,278 $1,937 $17,789 $48,903 $458,535 The portfolio segments used in the preceding three tables correspond to the loan classes used in all other tables in Note 7 as follows: · · · · · · A loan is considered impaired, in accordance with the impairment accounting guidance (FASB ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include not only nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. Impaired loans (excluding FDIC-supported loans, net of discount and acquired non-covered loans, net of discount), are summarized as follows: June 30, 2015 Unpaid Recorded Principal Specific Balance Balance Allowance (In Thousands) One- to four-family residential construction $467 $467 $— Subdivision construction 4,361 4,418 223 Land development 7,334 7,337 1,411 Commercial construction — — — Owner occupied one- to four-family residential 3,555 3,819 370 Non-owner occupied one- to four-family residential 1,609 1,826 70 Commercial real estate 25,891 27,250 2,130 Other residential 9,729 9,729 — Commercial business 1,567 1,591 261 Industrial revenue bonds — — — Consumer auto 561 604 84 Consumer other 604 756 91 Home equity lines of credit 393 492 68 Total $56,071 $58,289 $4,708 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $660 $12 $815 $28 Subdivision construction 4,421 53 4,452 106 Land development 7,339 66 7,424 132 Commercial construction — — — — Owner occupied one- to four-family residential 3,681 39 3,832 88 Non-owner occupied one- to four-family residential 1,688 20 1,737 45 Commercial real estate 26,275 326 26,456 630 Other residential 9,742 93 9,761 180 Commercial business 1,962 19 2,216 47 Industrial revenue bonds — — — — Consumer auto 456 14 440 21 Consumer other 569 16 575 33 Home equity lines of credit 404 4 405 13 Total $57,197 $662 $58,113 $1,323 At or for the Year Ended December 31, 2014 Average Unpaid Investment Interest Recorded Principal Specific in Impaired Income Balance Balance Allowance Loans Recognized (In Thousands) One- to four-family residential construction $1,312 $1,312 $— $173 $76 Subdivision construction 4,540 4,540 344 2,593 226 Land development 7,601 8,044 1,507 9,691 292 Commercial construction — — — — — Owner occupied one- to four-family residential 3,747 4,094 407 4,808 212 Non-owner occupied one- to four-family residential 1,889 2,113 78 4,010 94 Commercial real estate 28,641 30,781 1,751 29,808 1,253 Other residential 9,804 9,804 — 10,469 407 Commercial business 2,725 2,750 823 2,579 158 Industrial revenue bonds — — — 2,644 — Consumer auto 420 507 63 219 37 Consumer other 629 765 94 676 71 Home equity lines of credit 431 476 75 461 25 Total $ 61,739 $ 65,186 $ 5,142 $ 68,131 $ 2,851 June 30, 2014 Unpaid Recorded Principal Specific Balance Balance Allowance (In Thousands) One- to four-family residential construction $170 $170 $— Subdivision construction 1,707 1,783 585 Land development 7,600 8,024 1,531 Commercial construction — — — Owner occupied one- to four-family residential 5,149 5,490 581 Non-owner occupied one- to four-family residential 4,534 4,680 457 Commercial real estate 30,744 33,200 1,507 Other residential 10,586 10,586 — Commercial business 2,183 2,203 606 Industrial revenue bonds 3,651 4,585 — Consumer auto 187 215 28 Consumer other 738 856 111 Home equity lines of credit 436 460 92 Total $67,685 $72,252 $5,498 Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $57 $3 $28 $3 Subdivision construction 2,310 8 2,720 30 Land development 10,937 42 11,779 143 Commercial construction — — — — Owner occupied one- to four-family residential 5,101 60 5,318 112 Non-owner occupied one- to four-family residential 4,140 69 3,930 110 Commercial real estate 29,958 360 30,541 690 Other residential 10,734 120 10,845 210 Commercial business 1,847 47 2,904 68 Industrial revenue bonds 2,933 303 2,815 303 Consumer auto 160 5 166 7 Consumer other 714 24 696 42 Home equity lines of credit 441 — 484 14 Total $69,332 $1,041 $72,226 $1,732 At June 30, 2015, $19.6 million of impaired loans had specific valuation allowances totaling $4.7 million. At December 31, 2014, $20.0 million of impaired loans had specific valuation allowances totaling $5.1 million. Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. Troubled debt restructurings are loans that are modified by granting concessions to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The types of concessions made are factored into the estimation of the allowance for loan losses for troubled debt restructurings primarily using a discounted cash flows or collateral adequacy approach. The following tables present newly restructured loans during the three and six months ended June 30, 2015 by type of modification: Three Months Ended June 30, 2015 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: One -to four- family residential $— $82 $— $82 Commercial real estate — 115 — 115 Consumer — 48 — 48 $ — $ 245 $ — $ 245 Six Months Ended June 30, 2015 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: One -to four- family residential $— $209 $— $209 Commercial real estate — 115 — 115 Consumer — 48 — 48 $ — $ 372 $ — $ 372 At June 30, 2015, the Company had $45.4 million of loans that were modified in troubled debt restructurings and impaired, as follows: $8.0 million of construction and land development loans, $13.4 million of single family and multi-family residential mortgage loans, $22.7 million of commercial real estate loans, $963,000 of commercial business loans and $294,000 of consumer loans. Of the total troubled debt restructurings at June 30, 2015, $43.3 million were accruing interest and $16.6 million were classified as substandard using the Company’s internal grading system, which is described below. The Company had no troubled debt restructurings which were modified in the previous 12 months and subsequently defaulted during the six months ended June 30, 2015. When loans modified as troubled debt restructuring have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowances reflect amounts considered uncollectible. At December 31, 2014, the Company had $47.6 million of loans that were modified in troubled debt restructurings and impaired, as follows: $8.3 million of construction and land development loans, $13.8 million of single family and multi-family residential mortgage loans, $23.3 million of commercial real estate loans, $1.9 million of commercial business loans and $324,000 of consumer loans. Of the total troubled debt restructurings at December 31, 2014, $39.2 million were accruing interest and $18.3 million were classified as substandard using the Company’s internal grading system. During the three months ended June 30, 2015, loans designated as troubled debt restructurings totaling $1,000 met the criteria for placement back on accrual status. During the six months ended June 30, 2015, loans designated as troubled debt restructurings totaling $768,000 met the criteria for placement back on accrual status. The $768,000 consisted of $711,000 of residential mortgage loans, $29,000 of commercial business loans, $22,000 of consumer loans and $6,000 of construction and land development loans. The criteria is generally a minimum of six months of payment performance under original or modified terms. The Company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” “Special Mention,” “Substandard” and “Doubtful.” Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if certain deficiencies are not corrected. Doubtful loans are those having all the weaknesses inherent to those classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Special mention loans possess potential weaknesses that deserve management’s close attention but do not expose the Bank to a degree of risk that warrants substandard classification. Loans classified as watch are being monitored because of indications of potential weaknesses or deficiencies that may require future classification as special mention or substandard. Loans not meeting any of the criteria previously described are considered satisfactory. The FDIC-covered loans are evaluated using this internal grading system. These loans are accounted for in pools and are currently substantially covered through loss sharing agreements with the FDIC. Minimal adverse classification in the loan pools was identified as of June 30, 2015 and December 31, 2014, respectively. The acquired non-covered loans are also evaluated using this internal grading system. These loans are accounted for in pools and minimal adverse classification in the loan pools was identified as of June 30, 2015 and December 31, 2014, respectively. See Note 8 for further discussion of the acquired loan pools and loss sharing agreements. The Company evaluates the loan risk internal grading system definitions and allowance for loan loss methodology on an ongoing basis. In the fourth quarter of 2014, the Company began using a three-year average of historical losses for the general component of the allowance for loan loss calculation. The Company had previously used a five-year average. For interim periods, the Company uses three full years plus the interim period’s annualized average losses for the general component of the allowance for loan loss calculation. The Company believes that the three-year average provides a better representation of the current risks in the loan portfolio. This change was made after consultation with our regulators and other third-party consultants, as well as a review of the practices used by the Company’s peers. This change did not materially affect the level of the allowance for loan losses. The general component of the allowance for loan losses is affected by several factors, including, but not limited to, average historical losses, the average life of the loan, the current composition of the loan portfolio, current and expected economic conditions, collateral values and internal risk ratings. Management considers all these factors in determining the adequacy of its allowance for loan losses. No other significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the past year. The loan grading system is presented by loan class below: June 30, 2015 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $38,009 $ — $ — $ 467 $ — $38,476 Subdivision construction 30,153 269 — 3,831 — 34,253 Land development 37,603 5,432 — 5,539 — 48,574 Commercial construction 459,907 — — — — 459,907 Owner occupied one- to four- family residential 91,783 596 — 1,645 — 94,024 Non-owner occupied one- to four- family residential 144,892 531 — 1,057 — 146,480 Commercial real estate 977,324 28,349 — 9,781 — 1,015,454 Other residential 374,377 9,569 — 1,955 — 385,901 Commercial business 389,655 1,322 — 697 — 391,674 Industrial revenue bonds 39,532 — — — — 39,532 Consumer auto 370,770 — — 501 — 371,271 Consumer other 76,122 — — 459 — 76,581 Home equity lines of credit 70,122 — — 393 — 70,515 Acquired FDIC-covered loans, net of discounts 265,833 — — 538 — 266,371 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 38,343 — — 139 — 38,482 Acquired non-covered loans, net of discounts 110,798 — — 67 — 110,865 Total $3,515,223 $46,068 $ — $27,069 $ — $3,588,360 December 31, 2014 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $39,049 $— $— $1,312 $— $40,361 Subdivision construction 24,269 21 — 4,303 — 28,593 Land development 41,035 5,000 — 6,061 — 52,096 Commercial construction 392,929 — — — — 392,929 Owner occupied one- to-four- family residential 85,041 745 — 1,763 — 87,549 Non-owner occupied one- to- four-family residential 141,198 580 — 1,273 — 143,051 Commercial real estate 901,167 32,155 — 12,554 — 945,876 Other residential 380,811 9,647 — 1,956 — 392,414 Commercial business 351,744 423 — 1,845 — 354,012 Industrial revenue bonds 40,037 1,024 — — — 41,061 Consumer auto 323,002 — — 351 — 323,353 Consumer other 77,507 3 — 519 — 78,029 Home equity lines of credit 65,841 — — 431 — 66,272 Acquired FDIC-covered loans, net of discounts 286,049 — — 559 — 286,608 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 48,592 — — 1,353 — 49,945 Acquired non-covered loans, net of discounts 121,982 — — — — 121,982 Total $3,320,253 $49,598 $— $34,280 $— $3,404,131 |
Note 8_ Acquired Loans, Loss Sh
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets | NOTE 8: ACQUIRED LOANS, LOSS SHARING AGREEMENTS AND FDIC INDEMNIFICATION ASSETS On March 20, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and acquire certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kansas. The loans, commitments and foreclosed assets purchased in the TeamBank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the Bank shares in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $115.0 million, the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $115.0 million, the FDIC agreed to reimburse the Bank for 95% of the losses. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by the Bank. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans, which five-year period ended March 31, 2014. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On September 4, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Vantus Bank, a full service thrift headquartered in Sioux City, Iowa. The loans, commitments and foreclosed assets purchased in the Vantus Bank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the Bank shares in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $102.0 million, the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $102.0 million, the FDIC agreed to reimburse the Bank for 95% of the losses. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by the Bank. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans, which five year period ended on September 30, 2014. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. On October 7, 2011, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Sun Security Bank, a full service bank headquartered in Ellington, Missouri. The loans and foreclosed assets purchased in the Sun Security Bank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the FDIC agreed to cover 80% of the losses on the loans (excluding approximately $4 million of consumer loans at the date of the acquisition) and foreclosed assets purchased subject to certain limitations. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by Great Southern. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A discount was recorded in conjunction with the fair value of the acquired loans and no amount was accreted to yield during either of the three and six months ended June 30, 2015. The amount accreted to yield during the three and six months ended June 30, 2014 $21,000 and $105,000, respectively. On April 27, 2012, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Inter Savings Bank, FSB (“InterBank”), a full service bank headquartered in Maple Grove, Minnesota. The loans and foreclosed assets purchased in the InterBank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the FDIC agreed to cover 80% of the losses on the loans (excluding approximately $60,000 of consumer loans) and foreclosed assets purchased subject to certain limitations. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by Great Southern. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three and six months ended June 30, 2015 was $116,000 and $238,000, respectively. The amount amortized to yield during the three and six months ended June 30, 2014 was $139,000 and $284,000, respectively. On June 20, 2014, Great Southern Bank entered into a purchase and assumption agreement with the FDIC to purchase a substantial portion of the loans and investment securities, as well as certain other assets, and assume all of the deposits, as well as certain other liabilities, of Valley Bank (“Valley”), a full-service bank headquartered in Moline, Illinois, with significant operations in Iowa. This transaction did not include a loss sharing agreement. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three and six months ended June 30, 2015 was $201,000 and $420,000, respectively. Fair Value and Expected Cash Flows. The amount of the estimated cash flows expected to be received from the acquired loan pools in excess of the fair values recorded for the loan pools is referred to as the accretable yield. The accretable yield is recognized as interest income over the estimated lives of the loans. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the Company’s cash flow expectations are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. During the three and six months ended June 30, 2015, increases in expected cash flows related to the acquired loan portfolios resulted in adjustments of $900,000 and $8.2 million, respectively, to the accretable yield to be spread over the estimated remaining lives of the loans on a level-yield basis. During the three and six months ended June 30, 2014, similar such adjustments totaling $13.2 million and $20.0 million, respectively, were made to the accretable yield. The current year increases in expected cash flows also reduced the amount of expected reimbursements under the loss sharing agreements. During the three and six months ended June 30, 2015, this resulted in corresponding adjustments of $-0- and $4.4 million, respectively, to the indemnification assets to be amortized on a level-yield basis over the remainder of the loss sharing agreements or the remaining expected lives of the loan pools, whichever is shorter. During the three and six months ended June 30, 2014, corresponding adjustments of $10.6 million and $16.0 million, respectively, were made to the indemnification assets. Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The remaining accretable yield adjustment that will affect interest income is $18.8 million and the remaining adjustment to the indemnification assets, including the effects of the clawback liability related to Interbank, that will affect non-interest income (expense) is $(15.3) million. Of the remaining adjustments, we expect to recognize $9.7 million of interest income and $(7.3) million of non-interest income (expense) during the remainder of 2015. Additional adjustments may be recorded in future periods from the FDIC-assisted acquisitions, as the Company continues to estimate expected cash flows from the acquired loan pools. The impact of adjustments on the Company’s financial results is shown below: Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $7,259 78 bps $9,085 107 bps Non-interest income (5,374) (7,469) Net impact to pre-tax income $1,885 $1,616 Net impact net of taxes $1,225 $1,050 Impact to diluted earnings per common share $0.09 $0.08 Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $16,221 88 bps $16,988 102 bps Non-interest income (12,052) (13,805) Net impact to pre-tax income $4,169 $3,183 Net impact net of taxes $2,710 $2,069 Impact to diluted earnings per common share $0.19 $0.15 The loss sharing asset is measured separately from the loan portfolio because it is not contractually embedded in the loans and is not transferable with the loans should the Bank choose to dispose of them. Fair value was estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool (as discussed above) and the loss sharing percentages outlined in the applicable Purchase and Assumption Agreement with the FDIC. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. The loss sharing asset is also separately measured from the related foreclosed real estate. The loss sharing agreement on the InterBank transaction includes a clawback provision whereby if credit loss performance is better than certain pre-established thresholds, then a portion of the monetary benefit is shared with the FDIC. The pre-established threshold for credit losses is $115.7 million for this transaction. The monetary benefit required to be paid to the FDIC under the clawback provision, if any, will occur shortly after the termination of the loss sharing agreement, which in the case of InterBank is 10 years from the acquisition date. At June 30, 2015 and December 31, 2014, the Bank’s internal estimate of credit performance was expected to be better than the threshold set by the FDIC in the loss sharing agreement. Therefore, a separate clawback liability totaling $6.5 million and $6.1 million was recorded as of June 30, 2015 and December 31, 2014, respectively. As changes in the fair values of the loans and foreclosed assets are determined due to changes in expected cash flows, changes in the amount of the clawback liability will occur. In addition, beginning in the three months ended December 31, 2014, the Company's net interest margin has been impacted by additional yield accretion recognized in conjunction with updated estimates of the fair value of the loan pools acquired in the June 2014 Valley Bank FDIC-assisted transaction. Beginning with the three months ended December 31, 2014, the cash flow estimates have increased for certain of the Valley Bank loan pools primarily based on significant loan repayments and also due to collection of certain loans, thereby reducing loss expectations on certain of the loan pools. This resulted in increased income that was spread on a level-yield basis over the remaining expected lives of these loan pools. The Valley Bank transaction does not include a loss sharing agreement with the FDIC. Therefore, there is no related indemnification asset. The entire amount of the discount adjustment will be accreted to interest income over time with no offsetting impact to non-interest income. The amount of the Valley Bank discount adjustment accreted to interest income for the three and six months ended June 30, 2015 was $981,000 and $2.0 million, respectively, and is included in the impact on net interest income/net interest margin amount in the table above. Based on current estimates, we anticipate recording additional interest income accretion of $1.3 million in the remainder of 2015 related to these Valley Bank loan pools. TeamBank Loans, Foreclosed Assets and Indemnification Asset. June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $34,204 $21 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,619) — Original estimated fair value of assets, net of activity since acquisition date (32,440) (21) Expected loss remaining 145 — Assumed loss sharing recovery percentage 92% —% Estimated loss sharing value 133 — Indemnification asset to be amortized resulting from change in expected losses 340 — FDIC indemnification asset $473 $— December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $43,855 $132 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,923) — Original estimated fair value of assets, net of activity since acquisition date (41,560) (119) Expected loss remaining 372 13 Assumed loss sharing recovery percentage 85% 77% Estimated loss sharing value 315 10 Indemnification asset to be amortized resulting from change in expected losses 359 — FDIC indemnification asset $674 $10 Vantus Bank Loans, Foreclosed Assets and Indemnification Asset. June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $35,556 $899 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (654) — Original estimated fair value of assets, net of activity since acquisition date (34,649) (709) Expected loss remaining 253 190 Assumed loss sharing recovery percentage 61% 0% Estimated loss sharing value (1) 154 — Indemnification asset to be amortized resulting from change in expected losses 457 — FDIC indemnification asset $611 $— (1) Includes $152,000 impairment of indemnification asset for foreclosed assets. Resolution of certain items related to commercial foreclosed assets did not occur prior to the expiration of the non-single-family loss sharing agreement for Vantus Bank on September 30, 2014. December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $42,138 $1,084 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (504) — Original estimated fair value of assets, net of activity since acquisition date (40,997) (894) Expected loss remaining 637 190 Assumed loss sharing recovery percentage 72% 0% Estimated loss sharing value 461 — Indemnification asset to be amortized resulting from change in expected losses 324 — FDIC indemnification asset $785 $— Sun Security Bank Loans, Foreclosed Assets and Indemnification Asset. June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $51,172 $736 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (2,554) — Original estimated fair value of assets, net of activity since acquisition date (45,584) (646) Expected loss remaining 3,034 90 Assumed loss sharing recovery percentage 60% 80% Estimated loss sharing value 1,815 72 Indemnification asset to be amortized resulting from change in expected losses 2,035 — Accretable discount on FDIC indemnification asset (115) (63) FDIC indemnification asset $3,735 $9 December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $59,618 $2,325 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (3,341) — Original estimated fair value of assets, net of activity since acquisition date (52,166) (1,488) Expected loss remaining 4,111 837 Assumed loss sharing recovery percentage 65% 80% Estimated loss sharing value 2,676 670 Indemnification asset to be amortized resulting from change in expected losses 2,662 — Accretable discount on FDIC indemnification asset (267) (64) FDIC indemnification asset $5,071 $606 InterBank Loans, Foreclosed Assets and Indemnification Asset. June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $222,865 $2,837 Non-credit premium/(discount), net of activity since acquisition date 1,123 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (11,773) — Original estimated fair value of assets, net of activity since acquisition date (192,181) (2,118) Expected loss remaining 20,034 719 Assumed loss sharing recovery percentage 83% 80% Estimated loss sharing value (1) 16,583 575 FDIC loss share clawback 3,073 — Indemnification asset to be amortized resulting from change in expected losses 9,418 — Accretable discount on FDIC indemnification asset (2,266) (33) FDIC indemnification asset $26,808 $542 (1) Includes $400,000 impairment of indemnification asset for loans December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $244,977 $4,494 Non-credit premium/(discount), net of activity since acquisition date 1,361 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (19,566) — Original estimated fair value of assets, net of activity since acquisition date (201,830) (3,986) Expected loss remaining 24,942 508 Assumed loss sharing recovery percentage 82% 80% Estimated loss sharing value 20,509 406 FDIC loss share clawback 3,620 — Indemnification asset to be amortized resulting from change in expected losses 15,652 — Accretable discount on FDIC indemnification asset (2,967) (33) FDIC indemnification asset $36,814 $373 Valley Bank Loans and Foreclosed Assets. June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $132,354 $539 Non-credit premium/(discount), net of activity since acquisition date 1,094 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (2,227) — Original estimated fair value of assets, net of activity since acquisition date (110,864) (539) Expected loss remaining $20,357 $— December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $145,845 $778 Non-credit premium/(discount), net of activity since acquisition date 1,514 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,519) — Original estimated fair value of assets, net of activity since acquisition date (121,982) (778) Expected loss remaining $23,858 $— Changes in the accretable yield for acquired loan pools were as follows for the three months ended June 30, 2015 and 2014: Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) Balance, April 1, 2014 $ 7,363 $ 5,151 $10,007 $ 38,973 $— Additions — — — — 23,000 Accretion (976) (1,000) (2,407) (10,038) (165) Reclassification from nonaccretable yield (1) 1,047 427 1,827 12,173 — Balance, June 30, 2014 $ 7,434 $ 4,578 $ 9,427 $ 41,108 $ 22,835 Balance April 1, 2015 $ 5,949 $ 4,531 $7,400 $ 31,808 $ 11,087 Accretion (713) (710) (1,365) (7,797) (2,357) Reclassification from nonaccretable yield (1) (496) 154 649 716 636 Balance, June 30, 2015 $ 4,740 $ 3,975 $ 6,684 $ 24,727 $ 9,366 (1) Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the three months ended June 30, 2015, totaling $(496,000), $154,000, $649,000, $716,000 and $(264,000), respectively, and for the three months ended June 30, 2014, totaling $1.0 million, $427,000, $352,000, $448,000 and $-0-, respectively. Changes in the accretable yield for acquired loan pools were as follows for the six months ended June 30, 2015 and 2014: Sun Security TeamBank Vantus Bank Bank InterBank Valley Bank (In Thousands) Balance January 1, 2014 $ 7,402 $ 5,725 $11,113 $ 40,095 $— Additions — — — — 23,000 Accretion (2,282) (2,131) (5,224) (18,402) (165) Reclassification from nonaccretable yield (1) 2,314 984 3 ,538 19,415 — Balance, June 30, 2014 $ 7,434 $ 4,578 $ 9,427 $ 41,108 $ 22,835 Balance January 1, 2015 $ 6,865 $ 4,453 $7,952 $ 36,092 $ 11,132 Accretion (2,114) (1,391) (3,318) (16,997) (4,860) Reclassification from nonaccretable yield (1) (11) 913 2,050 5,632 3,094 Balance, June 30, 2015 $ 4,740 $ 3,975 $ 6,684 $ 24,727 $ 9,366 (1) Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the six months ended June 30, 2015, totaling $(176,000), $527,000, $1.1 million, $1.6 million and $344,000, respectively, and for the six months ended June 30, 2014, totaling $2.3 million, $984,000, $1.4 million, $1.7 million and $-0-, respectively. |
Note 9_ Other Real Estate Owned
Note 9: Other Real Estate Owned | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 9: Other Real Estate Owned | NOTE 9: OTHER REAL ESTATE OWNED Major classifications of other real estate owned were as follows: June 30, December 31, 2015 2014 (In Thousands) Foreclosed assets held for sale One- to four-family construction $— $223 Subdivision construction 9,486 9,857 Land development 16,102 17,168 Commercial construction — — One- to four-family residential 1,986 3,353 Other residential 2,150 2,625 Commercial real estate 3,551 1,632 Commercial business 48 59 Consumer 553 624 33,876 35,541 FDIC-supported foreclosed assets, net of discounts 2,827 5,695 Acquired foreclosed assets no longer covered by FDIC loss sharing agreements, net of discounts 709 879 Acquired foreclosed assets not covered by FDIC loss sharing agreements, net of discounts 539 778 Foreclosed assets held for sale, net 37,951 42,893 Other real estate owned not acquired through foreclosure 2,046 2,945 Other real estate owned $ 39,997 $ 45,838 Other real estate owned not acquired through foreclosure includes 12 properties, 11 of which were branch locations that have been closed and are held for sale, and one of which is land which was acquired for a potential branch location. During the three months ended June 30, 2015, vacant land, which had previously been part of other real estate owned not acquired through foreclosure, was sold at a gain of $327,000, which is included in the gain on sale of foreclosed assets amount in the table below. At June 30, 2015, residential mortgage loans totaling $1.2 million were in the process of foreclosure, all of which were acquired loans. Of this total, $786,000 of the loans are covered by loss sharing agreements and $447,000 of the loans were acquired in the Valley Bank transaction. Expenses applicable to foreclosed assets included the following: Three Months Ended June 30, 2015 2014 (In Thousands) Net (gain) loss on sales of foreclosed assets $(484) $(203) Valuation write-downs 139 1,019 Operating expenses, net of rental income 663 526 $318 $1,342 Six Months Ended June 30, 2015 2014 (In Thousands) Net (gain) loss on sales of foreclosed assets $(609) $(54) Valuation write-downs 191 1,199 Operating expenses, net of rental income 1,121 1,047 $703 $2,192 |
Note 10_ Deposits
Note 10: Deposits | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 10: Deposits | NOTE 10: DEPOSITS June 30, December 31, 2015 2014 (In Thousands) Time Deposits: 0.00% - 0.99% $889,872 $ 798,932 1.00% - 1.99% 317,674 227,476 2.00% - 2.99% 52,513 61,146 3.00% - 3.99% 2,594 8,065 4.00% - 4.99% 1,361 1,435 5.00% and above 338 420 Total time deposits (0.83% - 0.78%) 1,264,352 1,097,474 Non-interest-bearing demand deposits 543,888 518,266 Interest-bearing demand and savings deposits (0.21% - 0.19%) 1,388,078 1,375,100 Total Deposits $3,196,318 $2,990,840 |
Note 11_ Advances From Federal
Note 11: Advances From Federal Home Loan Bank | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 11: Advances From Federal Home Loan Bank | NOTE 11: ADVANCES FROM FEDERAL HOME LOAN BANK Advances from the Federal Home Loan Bank at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, 2014 Weighted Weighted Average Average Interest Interest Due In Amount Rate Amount Rate (In Thousands) 2015 $162,033 0.46% $240,065 0.41% 2016 70 5.14 70 5.14 2017 30,826 3.26 30,826 3.26 2018 81 5.14 81 5.14 2019 28 5.14 28 5.14 2020 and thereafter 500 5.54 500 5.54 193,538 0.92 271,570 0.75 Unamortized fair value adjustment 56 71 $ 193,594 $ 271,641 Included in the BankÂ’s FHLBank advances at June 30, 2015 and December 31, 2014, was a $10.0 million advance with a maturity date of October 26, 2015. The interest rate on this advance is 3.86%. The advance has a call provision that allows the Federal Home Loan Bank of Topeka to call the advance quarterly. Also included in the BankÂ’s FHLBank advances at June 30, 2015 and December 31, 2014, was a $30.0 million advance with a maturity date of November 24, 2017. The interest rate on this advance is 3.20%. The advance has a call provision that allows the Federal Home Loan Bank of Des Moines to call the advance quarterly. In June 2014, the Company prepaid $80 million of its Federal Home Loan Bank advances and $50 million of structured repurchase agreements as part of a strategy to utilize the BankÂ’s liquidity and improve net interest margin. As a result, the Company incurred one-time prepayment penalties totaling $7.4 million, which were included in other operating expenses beginning in the period ending June 30, 2014. |
Note 12_ Securities Sold Under
Note 12: Securities Sold Under Reverse Repurchase Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 12: Securities Sold Under Reverse Repurchase Agreements | NOTE 12: SECURITIES SOLD UNDER REVERSE REPURCHASE AGREEMENTS The Bank enters into sales of securities under agreements to repurchase (reverse repurchase agreements). Reverse repurchase agreements are treated as financings, and the obligations to repurchase securities sold are reflected as a liability in the statements of financial condition. The dollar amount of securities underlying the agreements remains in the asset accounts. Securities underlying the agreements are being held by the Bank during the agreement period. All agreements are written on a one-month or less term. The following table represents the Company’s securities sold under reverse repurchase agreements, by collateral type and remaining contractual maturity. June 30, 2015 December 31, 2014 Overnight and Overnight and Continuous Continuous (In Thousands) FHLBank CD $ 41,000 $ 10,000 Mortgage-backed securities – GNMA, FNMA, FHLMC 175,100 158,993 $216,100 $168,993 |
Note 13_ Income Taxes
Note 13: Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 13: Income Taxes | NOTE 13: INCOME TAXES Reconciliations of the CompanyÂ’s effective tax rates to the statutory corporate tax rates were as follows: Three Months Ended June 30, 2015 2014 Tax at statutory rate 35.0% 35.0% Nontaxable interest and dividends (1.8) (3.1) Tax credits (8.0) (9.2) State taxes 1.3 1.6 Other (0.4) 0.7 26.1% 25.0% Six Months Ended June 30, 2015 2014 Tax at statutory rate 35.0% 35.0% Nontaxable interest and dividends (2.4) (3.4) Tax credits (8.1) (9.6) State taxes 1.1 1.4 Other (0.1) 0.3 25.5% 23.7% The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS) or the state taxing authorities with respect to income or franchise tax returns, and as such, tax years through December 31, 2005, have been closed without audit. The Company, through one of its subsidiaries, is a partner in two partnerships currently under IRS examination for 2006 and 2007. As a result, the CompanyÂ’s 2006 and subsequent tax years remain open for examination. The IRS audits of the two partnerships are ongoing. The IRS has raised questions about the validity of the allocation of a portion of the credits by one of the partnerships. At this time, the Company believes that the partnership has sufficient technical support for its |
Note 14_ Disclosures About Fair
Note 14: Disclosures About Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 14: Disclosures About Fair Value of Financial Instruments | NOTE 14: DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS ASC Topic 820, Fair Value Measurements · Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. · Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means. · Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity's own assumptions that are supported by little or no market activity or observable inputs. Financial instruments are broken down as follows by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period. The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. From December 31, 2014 to June 30, 2015, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy. Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014: Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) June 30, 2015 U.S. government agencies $19,803 $— $19,803 $ Mortgage-backed securities 224,860 — 224,860 — States and political subdivisions 78,367 — 78,367 — Equity securities 3,359 — 3,359 — Mortgage servicing rights 166 — — 166 Interest rate derivative asset 2,373 — — 2,373 Interest rate derivative liability (2,244) — — (2,244) Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2014 U.S. government agencies $19,514 $— $19,514 $ Mortgage-backed securities 257,798 — 257,798 — States and political subdivisions 85,040 — 85,040 — Equity securities 3,154 — 3,154 — Mortgage servicing rights 185 — — 185 Interest rate derivative asset 2,502 — — 2,502 Interest rate derivative liability (2,187) — — (2,187) The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at June 30, 2015 and December 31, 2014, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the three-month and six-month periods ended June 30, 2015. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Securities Available for Sale. Mortgage Servicing Rights. Interest Rate Derivatives. Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying statements of financial condition using significant unobservable (Level 3) inputs. Mortgage Servicing Rights 2015 2014 (In Thousands) Balance, April 1 $179 $200 Additions 17 30 Amortization (30) (34) Balance, June 30 $166 $196 Mortgage Servicing Rights 2015 2014 (In Thousands) Balance, January 1 $185 $211 Additions 43 53 Amortization (62) (68) Balance, June 30 $166 $196 Interest Rate Derivative Asset 2015 2014 (In Thousands) Balance, April 1 $3,105 $1,741 Change in fair value through earnings (939) (19) Balance, June 30 $2,166 $1,722 Interest Rate Derivative Asset 2015 2014 (In Thousands) Balance, January 1 $2,087 $1,859 Change in fair value through earnings 79 (137) Balance, June 30 $2,166 $1,722 Interest Rate Cap Derivative Asset Designated as Hedging Instrument 2015 2014 (In Thousands) Balance, April 1 $251 $620 Change in fair value through other comprehensive income (22) (155) Amortization of cost of interest rate cap (22) (3) Balance, June 30 $207 $462 Interest Rate Cap Derivative Asset Designated as Hedging Instrument 2015 2014 (In Thousands) Balance, January 1 $415 $685 Change in fair value through other comprehensive income (171) (220) Amortization of cost of interest rate cap (37) (3) Balance, June 30 $207 $462 Interest Rate Swap Liability 2015 2014 (In Thousands) Balance, April 1 $3,296 $1,597 Change in fair value through earnings (1,052) 114 Balance, June 30 $2,244 $1,711 Interest Rate Swap Liability 2015 2014 (In Thousands) Balance, January 1 $2,187 $1,613 Change in fair value through earnings 57 98 Balance, June 30 $2,244 $1,711 Nonrecurring Measurements The following tables present the fair value measurements of assets measured at fair value during the periods presented on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) June 30, 2015 Impaired loans One- to four-family residential construction $ $ $ $ Subdivision construction 275 — — 275 Land development 974 — — 974 Owner occupied one- to four-family residential 102 — — 102 Non-owner occupied one- to four-family residential 162 — — 162 Commercial real estate 4,595 — — 4,595 Other residential — — — — Commercial business 893 — — 893 Consumer auto 164 — — 164 Consumer other 380 — — 380 Home equity lines of credit 216 — — 216 Total impaired loans $7,761 $— $— $7,761 Foreclosed assets held for sale $1,526 $ $ $1,526 Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2014 Impaired loans One- to four-family residential construction $ $ $ $ Subdivision construction 274 — — 274 Land development 3,946 — — 3,946 Owner occupied one- to four-family residential 862 — — 862 Non-owner occupied one- to four-family residential 288 — — 288 Commercial real estate 5,333 — — 5,333 Other residential — — — — Commercial business 320 — — 320 Consumer auto 38 — — 38 Consumer other 399 — — 399 Home equity lines of credit 198 — — 198 Total impaired loans $11,658 $— $— $11,658 Foreclosed assets held for sale $6,975 $ $ $6,975 The following is a description of valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying statements of financial condition, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Loans Held for Sale. Impaired Loans. Receivables The Company records impaired loans as Nonrecurring Level 3. If a loan’s fair value as estimated by the Company is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a reserve within the allowance for loan losses specific to the loan. Loans for which such charge-offs or reserves were recorded during the six months ended June 30, 2015 or the year ended December 31, 2014, are shown in the table above (net of reserves). Foreclosed Assets Held for Sale. The following disclosure relates to financial assets for which it is not practicable for the Company to estimate the fair value at June 30, 2015 and December 31, 2014. FDIC Indemnification Asset Under the TeamBank agreement, the FDIC agreed to reimburse the Bank for 80% of the first $115 million in realized losses and 95% for realized losses that exceed $115 million. The indemnification asset was originally recorded at fair value on the acquisition date (March 20, 2009) and at June 30, 2015 and December 31, 2014, the carrying value was $473,000 and $684,000, respectively. Under the Vantus Bank agreement, the FDIC agreed to reimburse the Bank for 80% of the first $102 million in realized losses and 95% for realized losses that exceed $102 million. The indemnification asset was originally recorded at fair value on the acquisition date (September 4, 2009) and at June 30, 2015 and December 31, 2014, the carrying value of the FDIC indemnification asset was $611,000 and $785,000, respectively. Under the Sun Security Bank agreement, the FDIC agreed to reimburse the Bank for 80% of realized losses. The indemnification asset was originally recorded at fair value on the acquisition date (October 7, 2011) and at June 30, 2015 and December 31, 2014, the carrying value of the FDIC indemnification asset was $3.7 million and $5.7 million, respectively. Under the InterBank agreement, the FDIC agreed to reimburse the Bank for 80% of realized losses. The indemnification asset was originally recorded at fair value on the acquisition date (April 27, 2013) and at June 30, 2015 and December 31, 2014, the carrying value of the FDIC indemnification asset was $27.4 million and $37.2 million, respectively. From the dates of acquisition, each of the four loss sharing agreements extend ten years for 1-4 family real estate loans and five years for other loans. The loss sharing assets are measured separately from the loan portfolios because they are not contractually embedded in the loans and are not transferable with the loans should the Bank choose to dispose of them. Fair values on the acquisition dates were estimated using projected cash flows available for loss sharing based on the credit adjustments estimated for each loan pool and the loss sharing percentages. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursements from the FDIC. The loss sharing assets are also separately measured from the related foreclosed real estate. Although the assets are contractual receivables from the FDIC, they do not have effective interest rates. The Bank will collect the assets over the next several years. The amount ultimately collected will depend on the timing and amount of collections and charge-offs on the acquired assets covered by the loss sharing agreements. While the assets were recorded at their estimated fair values on the acquisition dates, it is not practicable to complete fair value analyses on a quarterly or annual basis. Estimating the fair value of the FDIC indemnification asset would involve preparing fair value analyses of the entire portfolios of loans and foreclosed assets covered by the loss sharing agreements from all four acquisitions on a quarterly or annual basis. Fair Value of Financial Instruments The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying statements of financial condition at amounts other than fair value. Cash and Cash Equivalents and Federal Home Loan Bank Stock. Loans and Interest Receivable. Deposits and Accrued Interest Payable. Federal Home Loan Bank Advances. Short-Term Borrowings. Subordinated Debentures Issued to Capital Trusts. Commitments to Originate Loans, Letters of Credit and Lines of Credit. The following table presents estimated fair values of the Company’s financial instruments not recorded at fair value on the statements of financial condition. The fair values of certain of these instruments were calculated by discounting expected cash flows, which method involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. June 30, 2015 December 31, 2014 Carrying Fair Hierarchy Carrying Fair Hierarchy Amount Value Level Amount Value Level (In Thousands) Financial assets Cash and cash equivalents $269,228 $269,228 1 $218,647 $218,647 1 Held-to-maturity securities 353 390 2 450 499 2 Mortgage loans held for sale 16,567 16,567 2 14,579 14,579 2 Loans, net of allowance for loan losses 3,202,377 3,211,512 3 3,038,848 3,047,741 3 Accrued interest receivable 11,306 11,306 3 11,219 11,219 3 Investment in FHLBank stock 12,605 12,605 3 16,893 16,893 3 Financial liabilities Deposits 3,196,318 3,198,714 3 2,990,840 2,996,226 3 FHLBank advances 193,594 195,074 3 271,641 273,568 3 Short-term borrowings 217,408 217,408 3 211,444 211,444 3 Subordinated debentures 30,929 30,929 3 30,929 30,929 3 Accrued interest payable 1,076 1,076 3 1,067 1,067 3 Unrecognized financial instruments (net of contractual value) Commitments to originate loans — — 3 — — 3 Letters of credit 112 112 3 92 92 3 Lines of credit — — 3 — — 3 |
Note 15_ Derivatives and Hedgin
Note 15: Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 15: Derivatives and Hedging Activities | NOTE 15: DERIVATIVES AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities. In the normal course of business, the Company may use derivative financial instruments (primarily interest rate swaps) from time to time to assist in its interest rate risk management. The Company has interest rate derivatives that result from a service provided to certain qualifying loan customers that are not used to manage interest rate risk in the CompanyÂ’s assets or liabilities and are not designated in a qualifying hedging relationship. The Company manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions. In addition, the Company has interest rate derivatives that are designated in a qualified hedging relationship. Nondesignated Hedges The Company has interest rate swaps that are not designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers, which the Company began offering during 2011. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As part of the Valley Bank FDIC-assisted acquisition, the Company acquired seven loans with related interest rate swaps. ValleyÂ’s swap program differed from the CompanyÂ’s in that Valley did not have back to back swaps with the customer and a counterparty. Two of the seven acquired loans with interest rate swaps have paid off. The notional amount of the five remaining Valley swaps is $4.0 million at June 30, 2015. As of June 30, 2015, the Company had 26 interest rate swaps totaling $113.9 million in notional amount with commercial customers, and 26 interest rate swaps with the same notional amount with third parties related to its program. As of December 31, 2014, the Company had 28 interest rate swaps totaling $125.1 million in notional amount with commercial customers, and 28 interest rate swaps with the same notional amount with third parties related to its program. During the three months ended June 30, 2015 and 2014, the Company recognized a net gain of $113,000 and a net loss of $130,000, respectively, in noninterest income related to changes in the fair value of these swaps. During the six months ended June 30, 2015 and 2014, the Company recognized a net gain of $20,000 and a net loss of $233,000, respectively, in noninterest income related to changes in the fair value of these swaps. Cash Flow Hedges As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due to interest rate fluctuations, the Company entered into two interest rate cap agreements for a portion of its floating rate debt associated with its trust preferred securities. One agreement, with a notional amount of $25 million, states that the Company will pay interest on its trust preferred debt in accordance with the original debt terms at a rate of 3-month LIBOR + 1.60%. Should interest rates rise above a certain threshold, the counterparty will reimburse the Company for interest paid such that the Company will have an effective interest rate on that portion of its trust preferred securities no higher than 2.37%. The other agreement, with a notional amount of $5 million, states that the Company will pay interest on its trust preferred debt in accordance with the original debt terms at a rate of 3-month LIBOR + 1.40%. Should interest rates rise above a certain threshold, the counterparty will reimburse the Company for interest paid such that the Company will have an effective interest rate on that portion of its trust preferred securities no higher than 2.17%. The agreements were effective on August 1, 2013 and July 1, 2013, respectively, and each has a term of four years. The effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. During each of the three and six months ended June 30, 2015 and 2014, the Company recognized $-0- in noninterest income related to changes in the fair value of these derivatives. During the three months ended June 30, 2015 and 2014, the Company recognized $21,000 and $3,000, respectively, in interest expense related to the amortization of the cost of these interest rate caps. During the six months ended June 30, 2015 and 2014, the Company recognized $36,000 and $3,000, respectively, in interest expense related to the amortization of the cost of these interest rate caps. The table below presents the fair value of the CompanyÂ’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition: Location in Fair Value Consolidated Statements June 30, December 31, of Financial Condition 2015 2014 (In Thousands) Derivatives designated as hedging instruments Interest rate caps Prepaid expenses and other assets $ 207 $ 415 Total derivatives designated as hedging instruments $ 207 $ 415 Derivatives not designated as hedging instruments Asset Derivatives Interest rate products Prepaid expenses and other assets $ 2,166 $ 2,087 Total derivatives not designated as hedging instruments $ 2,166 $ 2,087 Liability Derivatives Interest rate products Accrued expenses and other liabilities $ 2,244 $ 2,187 Total derivatives not designated as hedging instruments $ 2,244 $ 2,187 The following table presents the effect of derivative instruments on the statements of comprehensive income for the three and six months ended June 30, 2015 and 2014: Amount of Gain (Loss) Recognized in AOCI Three Months Ended June 30, Cash Flow Hedges 2015 2014 (In Thousands) Interest rate cap $ (9) $ ( 101) Amount of Gain (Loss) Recognized in AOCI Six Months Ended June 30, Cash Flow Hedges 2015 2014 (In Thousands) Interest rate cap $ (105) $ ( 143) Agreements with Derivative Counterparties The Company has agreements with its derivative counterparties. If the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Bank fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. Similarly, the Company could be required to settle its obligations under certain of its agreements if certain regulatory events occurred, such as the issuance of a formal directive, or if the CompanyÂ’s credit rating is downgraded below a specified level. As of June 30, 2015, the termination value of derivatives in a net liability position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $2.2 million. The Company has minimum collateral posting thresholds with its derivative counterparties. At June 30, 2015, the CompanyÂ’s activity with its derivative counterparties had met the level in which the minimum collateral posting thresholds take effect and the Company had posted $4.2 million of collateral to satisfy the agreements. As of December 31, 2014, the termination value of derivatives in a net liability position, which included accrued interest but excluded any adjustment for nonperformance risk, related to these agreements was $2.1 million. At December 31, 2014, the CompanyÂ’s activity with its derivative counterparties had met the level in which the minimum collateral posting thresholds take effect and the Company had posted $3.1 million of collateral to satisfy the agreements. If the Company had breached any of these provisions at June 30, 2015 or December 31, 2014, it could have been required to settle its obligations under the agreements at the termination value. |
Note 16_ Subsequent Event
Note 16: Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 16: Subsequent Event | NOTE 16: SUBSEQUENT EVENT On July 29, 2015, the Company was the successful bidder in an auction of the $5.0 million aggregate liquidation amount of floating rate cumulative trust preferred securities issued in 2007 by Great Southern Capital Trust III, a statutory trust formed by the Company for the purpose of issuing those securities and holding the CompanyÂ’s related floating rate junior subordinated debentures. The Company purchased the trust preferred securities at a discount, which it expects will result in a pre-tax gain of approximately $1.0 million. Subsequent to the purchase, which resulted in the CompanyÂ’s ownership of all of the outstanding common and preferred securities of Great Southern Capital Trust III, such securities were canceled and the principal amount of the CompanyÂ’s related debentures, which had equaled the aggregate liquidation amount of the outstanding common and preferred securities of Great Southern Capital Trust III, was reduced to zero. |
Note 1_ Basis of Presentation_
Note 1: Basis of Presentation: Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies | The accompanying unaudited interim consolidated financial statements of Great Southern Bancorp, Inc. (the "Company" or "Great Southern") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The financial statements presented herein reflect all adjustments which are, in the opinion of management, necessary to fairly present the financial condition, results of operations and cash flows of the Company for the periods presented. Those adjustments consist only of normal recurring adjustments. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the full year. The consolidated statement of financial condition of the Company as of December 31, 2014, has been derived from the audited consolidated statement of financial condition of the Company as of that date. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on net income. Certain information and note disclosures normally included in the Company's annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K |
Note 2_ Nature of Operations 25
Note 2: Nature of Operations and Operating Segments: Segment Reporting, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Segment Reporting, Policy | The CompanyÂ’s banking operation is its only reportable segment. The banking operation is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans and consumer loans and funding these loans through attracting deposits from the general public, accepting brokered deposits and borrowing from the Federal Home Loan Bank and others |
Note 4_ Stockholders' Equity_ S
Note 4: Stockholders' Equity: Stockholders Equity Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Stockholders Equity Policy | Previously, the Company's stockholders approved the Company's reincorporation to the State of Maryland. Under Maryland law, there is no concept of "Treasury Shares." Instead, shares purchased by the Company constitute authorized but unissued shares under Maryland law. Accounting principles generally accepted in the United States of America state that accounting for treasury stock shall conform to state law. The cost of shares purchased by the Company has been allocated to Common Stock and Retained Earnings balances. |
Note 5_ Earnings Per Share_ Ear
Note 5: Earnings Per Share: Earnings Per Share, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Earnings Per Share, Policy | Options outstanding at June 30, 2015 and 2014, to purchase 12,750 and 182,275 shares of common stock, respectively, were not included in the computation of diluted earnings per common share for each of the three and six month periods because such optionsÂ’ exercise prices were greater than the average market prices of the common shares for the three and six months ended June 30, 2015 and 2014, respectively. |
Note 6_ Investment Securities_
Note 6: Investment Securities: Investment, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Investment, Policy | Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2015 and December 31, 2014, respectively, was approximately $85.8 million and $106.0 million, which is approximately 26.3% and 29.0% of the CompanyÂ’s available-for-sale and held-to-maturity investment portfolio, respectively. |
Note 8_ Acquired Loans, Loss 29
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: Business Combinations Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
TeamBank | |
Business Combinations Policy | On March 20, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits (excluding brokered deposits) and acquire certain assets of TeamBank, N.A., a full service commercial bank headquartered in Paola, Kansas. The loans, commitments and foreclosed assets purchased in the TeamBank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the Bank shares in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $115.0 million, the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $115.0 million, the FDIC agreed to reimburse the Bank for 95% of the losses. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by the Bank. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans, which five-year period ended March 31, 2014. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. |
Vantus Bank | |
Business Combinations Policy | On September 4, 2009, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Vantus Bank, a full service thrift headquartered in Sioux City, Iowa. The loans, commitments and foreclosed assets purchased in the Vantus Bank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the Bank shares in the losses on assets covered under the agreement (referred to as covered assets). On losses up to $102.0 million, the FDIC agreed to reimburse the Bank for 80% of the losses. On losses exceeding $102.0 million, the FDIC agreed to reimburse the Bank for 95% of the losses. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by the Bank. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans, which five year period ended on September 30, 2014. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. |
Sun Security Bank | |
Business Combinations Policy | On October 7, 2011, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Sun Security Bank, a full service bank headquartered in Ellington, Missouri. The loans and foreclosed assets purchased in the Sun Security Bank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the FDIC agreed to cover 80% of the losses on the loans (excluding approximately $4 million of consumer loans at the date of the acquisition) and foreclosed assets purchased subject to certain limitations. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by Great Southern. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A discount was recorded in conjunction with the fair value of the acquired loans and no amount was accreted to yield during either of the three and six months ended June 30, 2015. The amount accreted to yield during the three and six months ended June 30, 2014 $21,000 and $105,000, respectively. |
InterBank | |
Business Combinations Policy | On April 27, 2012, Great Southern Bank entered into a purchase and assumption agreement with loss share with the FDIC to assume all of the deposits and acquire certain assets of Inter Savings Bank, FSB (“InterBank”), a full service bank headquartered in Maple Grove, Minnesota. The loans and foreclosed assets purchased in the InterBank transaction are covered by a loss sharing agreement between the FDIC and Great Southern Bank. Under the loss sharing agreement, the FDIC agreed to cover 80% of the losses on the loans (excluding approximately $60,000 of consumer loans) and foreclosed assets purchased subject to certain limitations. Realized losses covered by the loss sharing agreement include loan contractual balances (and related unfunded commitments that were acquired), accrued interest on loans for up to 90 days, the book value of foreclosed real estate acquired, and certain direct costs, less cash or other consideration received by Great Southern. This agreement extends for ten years for 1-4 family real estate loans and for five years for other loans. The value of this loss sharing agreement was considered in determining fair values of loans and foreclosed assets acquired. The loss sharing agreement is subject to the Bank following servicing procedures as specified in the agreement with the FDIC. The expected reimbursements under the loss sharing agreement were recorded as an indemnification asset at their preliminary estimated fair value on the acquisition date. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three and six months ended June 30, 2015 was $116,000 and $238,000, respectively. The amount amortized to yield during the three and six months ended June 30, 2014 was $139,000 and $284,000, respectively. |
Valley Bank | |
Business Combinations Policy | On June 20, 2014, Great Southern Bank entered into a purchase and assumption agreement with the FDIC to purchase a substantial portion of the loans and investment securities, as well as certain other assets, and assume all of the deposits, as well as certain other liabilities, of Valley Bank (“Valley”), a full-service bank headquartered in Moline, Illinois, with significant operations in Iowa. This transaction did not include a loss sharing agreement. Based upon the acquisition date fair values of the net assets acquired, no goodwill was recorded. A premium was recorded in conjunction with the fair value of the acquired loans and the amount amortized to yield during the three and six months ended June 30, 2015 was $201,000 and $420,000, respectively. |
Note 8_ Acquired Loans, Loss 30
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: Business Acquisition Fair Value and Expected Cash Flows Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Business Acquisition Fair Value and Expected Cash Flows Policy | Fair Value and Expected Cash Flows. The amount of the estimated cash flows expected to be received from the acquired loan pools in excess of the fair values recorded for the loan pools is referred to as the accretable yield. The accretable yield is recognized as interest income over the estimated lives of the loans. The Company continues to evaluate the fair value of the loans including cash flows expected to be collected. Increases in the CompanyÂ’s cash flow expectations are recognized as increases to the accretable yield while decreases are recognized as impairments through the allowance for loan losses. During the three and six months ended June 30, 2015, increases in expected cash flows related to the acquired loan portfolios resulted in adjustments of $900,000 and $8.2 million, respectively, to the accretable yield to be spread over the estimated remaining lives of the loans on a level-yield basis. During the three and six months ended June 30, 2014, similar such adjustments totaling $13.2 million and $20.0 million, respectively, were made to the accretable yield. The current year increases in expected cash flows also reduced the amount of expected reimbursements under the loss sharing agreements. During the three and six months ended June 30, 2015, this resulted in corresponding adjustments of $-0- and $4.4 million, respectively, to the indemnification assets to be amortized on a level-yield basis over the remainder of the loss sharing agreements or the remaining expected lives of the loan pools, whichever is shorter. During the three and six months ended June 30, 2014, corresponding adjustments of $10.6 million and $16.0 million, respectively, were made to the indemnification assets. Because these adjustments will be recognized over the remaining lives of the loan pools and the remainder of the loss sharing agreements, respectively, they will impact future periods as well. The remaining accretable yield adjustment that will affect interest income is $18.8 million and the remaining adjustment to the indemnification assets, including the effects of the clawback liability related to Interbank, that will affect non-interest income (expense) is $(15.3) million. Of the remaining adjustments, we expect to recognize $9.7 million of interest income and $(7.3) million of non-interest income (expense) during the remainder of 2015. Additional adjustments may be recorded in future periods from the FDIC-assisted acquisitions, as the Company continues to estimate expected cash flows from the acquired loan pools. |
Note 8_ Acquired Loans, Loss 31
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: FDIC Indemnification Asset Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
TeamBank | |
FDIC Indemnification Asset Policy | TeamBank Loans, Foreclosed Assets and Indemnification Asset. |
Vantus Bank | |
FDIC Indemnification Asset Policy | Vantus Bank Loans, Foreclosed Assets and Indemnification Asset. |
Sun Security Bank | |
FDIC Indemnification Asset Policy | Sun Security Bank Loans, Foreclosed Assets and Indemnification Asset. |
InterBank | |
FDIC Indemnification Asset Policy | InterBank Loans, Foreclosed Assets and Indemnification Asset. |
Valley Bank | |
FDIC Indemnification Asset Policy | Valley Bank Loans and Foreclosed Assets. |
Note 11_ Advances From Federa32
Note 11: Advances From Federal Home Loan Bank: Federal Home Loan Bank, Advances (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Federal Home Loan Bank, Advances | Included in the BankÂ’s FHLBank advances at June 30, 2015 and December 31, 2014, was a $10.0 million advance with a maturity date of October 26, 2015. The interest rate on this advance is 3.86%. The advance has a call provision that allows the Federal Home Loan Bank of Topeka to call the advance quarterly. Also included in the BankÂ’s FHLBank advances at June 30, 2015 and December 31, 2014, was a $30.0 million advance with a maturity date of November 24, 2017. The interest rate on this advance is 3.20%. The advance has a call provision that allows the Federal Home Loan Bank of Des Moines to call the advance quarterly. In June 2014, the Company prepaid $80 million of its Federal Home Loan Bank advances and $50 million of structured repurchase agreements as part of a strategy to utilize the BankÂ’s liquidity and improve net interest margin. As a result, the Company incurred one-time prepayment penalties totaling $7.4 million, which were included in other operating expenses beginning in the period ending June 30, 2014. |
Note 13_ Income Taxes_ Income T
Note 13: Income Taxes: Income Tax, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Income Tax, Policy | The Company and its consolidated subsidiaries have not been audited recently by the Internal Revenue Service (IRS) or the state taxing authorities with respect to income or franchise tax returns, and as such, tax years through December 31, 2005, have been closed without audit. The Company, through one of its subsidiaries, is a partner in two partnerships currently under IRS examination for 2006 and 2007. As a result, the CompanyÂ’s 2006 and subsequent tax years remain open for examination. The IRS audits of the two partnerships are ongoing. The IRS has raised questions about the validity of the allocation of a portion of the credits by one of the partnerships. At this time, the Company believes that the partnership has sufficient technical support for its |
Note 14_ Disclosures About Fa34
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Fair Value Measurement, Policy | ASC Topic 820, Fair Value Measurements · Quoted prices in active markets for identical assets or liabilities (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. · Other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets, quoted prices for securities in inactive markets and inputs derived principally from or corroborated by observable market data by correlation or other means. · Significant unobservable inputs (Level 3): Inputs that reflect assumptions of a source independent of the reporting entity or the reporting entity's own assumptions that are supported by little or no market activity or observable inputs. Financial instruments are broken down as follows by recurring or nonrecurring measurement status. Recurring assets are initially measured at fair value and are required to be remeasured at fair value in the financial statements at each reporting date. Assets measured on a nonrecurring basis are assets that, due to an event or circumstance, were required to be remeasured at fair value after initial recognition in the financial statements at some time during the reporting period. The Company considers transfers between the levels of the hierarchy to be recognized at the end of related reporting periods. From December 31, 2014 to June 30, 2015, no assets for which fair value is measured on a recurring basis transferred between any levels of the hierarchy. Recurring Measurements The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014: Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) June 30, 2015 U.S. government agencies $19,803 $— $19,803 $ Mortgage-backed securities 224,860 — 224,860 — States and political subdivisions 78,367 — 78,367 — Equity securities 3,359 — 3,359 — Mortgage servicing rights 166 — — 166 Interest rate derivative asset 2,373 — — 2,373 Interest rate derivative liability (2,244) — — (2,244) Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2014 U.S. government agencies $19,514 $— $19,514 $ Mortgage-backed securities 257,798 — 257,798 — States and political subdivisions 85,040 — 85,040 — Equity securities 3,154 — 3,154 — Mortgage servicing rights 185 — — 185 Interest rate derivative asset 2,502 — — 2,502 Interest rate derivative liability (2,187) — — (2,187) The following is a description of inputs and valuation methodologies used for assets recorded at fair value on a recurring basis and recognized in the accompanying statements of financial condition at June 30, 2015 and December 31, 2014, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the three-month and six-month periods ended June 30, 2015. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Securities Available for Sale. Mortgage Servicing Rights. Interest Rate Derivatives. Level 3 Reconciliation The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying statements of financial condition using significant unobservable (Level 3) inputs. Mortgage Servicing Rights 2015 2014 (In Thousands) Balance, April 1 $179 $200 Additions 17 30 Amortization (30) (34) Balance, June 30 $166 $196 Mortgage Servicing Rights 2015 2014 (In Thousands) Balance, January 1 $185 $211 Additions 43 53 Amortization (62) (68) Balance, June 30 $166 $196 Interest Rate Derivative Asset 2015 2014 (In Thousands) Balance, April 1 $3,105 $1,741 Change in fair value through earnings (939) (19) Balance, June 30 $2,166 $1,722 Interest Rate Derivative Asset 2015 2014 (In Thousands) Balance, January 1 $2,087 $1,859 Change in fair value through earnings 79 (137) Balance, June 30 $2,166 $1,722 Interest Rate Cap Derivative Asset Designated as Hedging Instrument 2015 2014 (In Thousands) Balance, April 1 $251 $620 Change in fair value through other comprehensive income (22) (155) Amortization of cost of interest rate cap (22) (3) Balance, June 30 $207 $462 Interest Rate Cap Derivative Asset Designated as Hedging Instrument 2015 2014 (In Thousands) Balance, January 1 $415 $685 Change in fair value through other comprehensive income (171) (220) Amortization of cost of interest rate cap (37) (3) Balance, June 30 $207 $462 Interest Rate Swap Liability 2015 2014 (In Thousands) Balance, April 1 $3,296 $1,597 Change in fair value through earnings (1,052) 114 Balance, June 30 $2,244 $1,711 Interest Rate Swap Liability 2015 2014 (In Thousands) Balance, January 1 $2,187 $1,613 Change in fair value through earnings 57 98 Balance, June 30 $2,244 $1,711 Nonrecurring Measurements The following tables present the fair value measurements of assets measured at fair value during the periods presented on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) June 30, 2015 Impaired loans One- to four-family residential construction $ $ $ $ Subdivision construction 275 — — 275 Land development 974 — — 974 Owner occupied one- to four-family residential 102 — — 102 Non-owner occupied one- to four-family residential 162 — — 162 Commercial real estate 4,595 — — 4,595 Other residential — — — — Commercial business 893 — — 893 Consumer auto 164 — — 164 Consumer other 380 — — 380 Home equity lines of credit 216 — — 216 Total impaired loans $7,761 $— $— $7,761 Foreclosed assets held for sale $1,526 $ $ $1,526 Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2014 Impaired loans One- to four-family residential construction $ $ $ $ Subdivision construction 274 — — 274 Land development 3,946 — — 3,946 Owner occupied one- to four-family residential 862 — — 862 Non-owner occupied one- to four-family residential 288 — — 288 Commercial real estate 5,333 — — 5,333 Other residential — — — — Commercial business 320 — — 320 Consumer auto 38 — — 38 Consumer other 399 — — 399 Home equity lines of credit 198 — — 198 Total impaired loans $11,658 $— $— $11,658 Foreclosed assets held for sale $6,975 $ $ $6,975 |
Note 16_ Subsequent Event_ Subs
Note 16: Subsequent Event: Subsequent Events, Policy (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Subsequent Events, Policy | On July 29, 2015, the Company was the successful bidder in an auction of the $5.0 million aggregate liquidation amount of floating rate cumulative trust preferred securities issued in 2007 by Great Southern Capital Trust III, a statutory trust formed by the Company for the purpose of issuing those securities and holding the CompanyÂ’s related floating rate junior subordinated debentures. The Company purchased the trust preferred securities at a discount, which it expects will result in a pre-tax gain of approximately $1.0 million. Subsequent to the purchase, which resulted in the CompanyÂ’s ownership of all of the outstanding common and preferred securities of Great Southern Capital Trust III, such securities were canceled and the principal amount of the CompanyÂ’s related debentures, which had equaled the aggregate liquidation amount of the outstanding common and preferred securities of Great Southern Capital Trust III, was reduced to zero. |
Note 5_ Earnings Per Share_ Sch
Note 5: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended June 30, 2015 2014 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 13,790 13,685 Net income available to common stockholders $11,858 $10,909 Per common share amount $0.86 $0.80 Diluted: Average shares outstanding 13,790 13,685 Net effect of dilutive stock options – based on the treasury stock method using average market price 189 95 Diluted shares 13,979 13,780 Net income available to common stockholders $11,858 $10,909 Per common share amount $0.85 $0.79 Six Months Ended June 30, 2015 2014 (In Thousands, Except Per Share Data) Basic: Average shares outstanding 13,790 13,685 Net income available to common stockholders $23,366 $19,582 Per common share amount $1.69 $1.43 Diluted: Average shares outstanding 13,790 13,685 Net effect of dilutive stock options – based on the treasury stock method using average market price 189 95 Diluted shares 13,979 13,780 Net income available to common stockholders $23,366 $19,582 Per common share amount $1.67 $1.42 |
Note 6_ Investment Securities37
Note 6: Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Available-for-sale Securities Reconciliation | June 30, 2015 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: U.S. government agencies $20,000 $— $197 $19,803 2.00% Mortgage-backed securities 221,842 3,544 526 224,860 1.79 States and political subdivisions 74,018 4,388 39 78,367 5.72 Equity securities 847 2,512 — 3,359 — $316,707 $10,444 $762 $326,389 2.72% December 31, 2014 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) AVAILABLE-FOR-SALE SECURITIES: U.S. government agencies $20,000 $— $486 $19,514 2.00% Mortgage-backed securities 254,294 4,325 821 257,798 1.97 States and political subdivisions 79,237 5,810 7 85,040 5.76 Equity securities 847 2,307 — 3,154 — $354,378 $12,442 $1,314 $365,506 2.82% |
Note 6_ Investment Securities38
Note 6: Investment Securities: Schedule of Held-to-maturity Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Held-to-maturity Securities | June 30, 2015 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) HELD-TO-MATURITY SECURITIES: States and political subdivisions $353 $37 $ $390 7.37% December 31, 2014 Gross Gross Tax Amortized Unrealized Unrealized Fair Equivalent Cost Gains Losses Value Yield (In Thousands) HELD-TO-MATURITY SECURITIES: States and political subdivisions $450 $49 $ $499 7.37% |
Note 6_ Investment Securities39
Note 6: Investment Securities: Investments Classified by Contractual Maturity Date (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Investments Classified by Contractual Maturity Date | Amortized Fair Cost Value (In Thousands) One year or less $ — $ — After one through five years 254 266 After five through ten years 3,643 3,842 After ten years 90,121 94,062 Securities not due on a single maturity date 221,842 224,860 Equity securities 847 3,359 $316,707 $326,389 |
Note 6_ Investment Securities40
Note 6: Investment Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Contractual Obligation, Fiscal Year Maturity Schedule | Amortized Fair Cost Value (In Thousands) After one through five years $353 $390 |
Note 6_ Investment Securities41
Note 6: Investment Securities: Unrealized Gain (Loss) on Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Unrealized Gain (Loss) on Investments | The following table shows the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and December 31, 2014: June 30, 2015 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) U.S. government agencies $ $ $20,000 $ $20,000 $(197) Mortgage-backed securities 19,004 (93) 43,333 (433) 62,337 (526) State and political subdivisions 2,555 (25) 917 (14) 3,472 (39) $21,559 $(118) $64,250 $(644) $85,809 $(762) December 31, 2014 Less than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized Description of Securities Value Losses Value Losses Value Losses (In Thousands) U.S. government agencies $ — $ $ $20,000 $(486) Mortgage-backed securities 40,042 (328) 45,056 (493) 85,098 (821) State and political subdivisions — — 925 (7) 925 (7) $40,042 $(328) $65,981 $(986) $106,023 $(1,314) |
Note 6_ Investment Securities42
Note 6: Investment Securities: Other Than Temporary Impairment Credit Losses Recognized in Earnings (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Other Than Temporary Impairment Credit Losses Recognized in Earnings | Amounts Reclassified Out of Accumulated Other Comprehensive Income. Amounts Reclassified from Other Comprehensive Income Three Months Ended June 30, Affected Line Item in the Statements 2015 2014 of Income (In Thousands) Unrealized gains (losses) on available- Net realized gains on available- for-sale securities $— $569 for-sale securities (Total reclassified amount before tax) Income Taxes — (199) Provision for income taxes Total reclassifications out of accumulated other comprehensive income $— $370 Amounts Reclassified from Other Comprehensive Income Six Months Ended June 30, Affected Line Item in the Statements 2015 2014 of Income (In Thousands) Unrealized gains (losses) on available- Net realized gains on available- for-sale securities $— $642 for-sale securities (Total reclassified amount before tax) Income Taxes — (225) Provision for income taxes Total reclassifications out of accumulated other comprehensive income $— $417 |
Note 7_ Loans and Allowance F43
Note 7: Loans and Allowance For Loan Losses: Schedule of Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Loans | June 30, December 31, 2015 2014 (In Thousands) One- to four-family residential construction $38,476 $40,361 Subdivision construction 34,253 28,593 Land development 48,574 52,096 Commercial construction 459,907 392,929 Owner occupied one- to four-family residential 94,024 87,549 Non-owner occupied one- to four-family residential 146,480 143,051 Commercial real estate 1,015,454 945,876 Other residential 385,901 392,414 Commercial business 391,674 354,012 Industrial revenue bonds 39,532 41,061 Consumer auto 371,271 323,353 Consumer other 76,581 78,029 Home equity lines of credit 70,515 66,272 Acquired FDIC-covered loans, net of discounts 266,371 286,608 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 38,482 49,945 Acquired non-covered loans, net of discounts 110,865 121,982 3,588,360 3,404,131 Undisbursed portion of loans in process (343,276) (323,572) Allowance for loan losses (39,698) (38,435) Deferred loan fees and gains, net (3,009) (3,276) $3,202,377 $3,038,848 Weighted average interest rate 4.59% 4.66% |
Note 7_ Loans and Allowance F44
Note 7: Loans and Allowance For Loan Losses: Schedule of Financing Receivables NonAccrual Status (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Financing Receivables NonAccrual Status | Nonaccruing loans (excluding FDIC-supported loans, net of discount and acquired non-covered loans, net of discount) are summarized as follows: June 30, December 31, 2015 2014 (In Thousands) One- to four-family residential construction $ — $— Subdivision construction 56 — Land development 11 255 Commercial construction — — Owner occupied one- to four-family residential 760 859 Non-owner occupied one- to four-family residential 212 296 Commercial real estate 2,670 4,512 Other residential — — Commercial business 215 411 Industrial revenue bonds — — Consumer auto 472 316 Consumer other 293 404 Home equity lines of credit 194 318 Total $4,883 $7,371 |
Note 7_ Loans and Allowance F45
Note 7: Loans and Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2015. Also presented is the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2015: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance April 1, 2015 $3,985 $2,809 $20,216 $3,356 $3,945 $4,760 $39,071 Provision (benefit) charged to expense (110) 524 (146) (77) 423 686 1,300 Losses charged off (80) — (2) — (551) (935) (1,568) Recoveries 91 9 123 9 175 488 895 Balance June 30, 2015 $3,886 $3,342 $20,191 $3,288 $3,992 $4,999 $39,698 Balance January 1, 2015 $3,455 $2,941 $19,773 $3,562 $3,679 $5,025 $38,435 Provision (benefit) charged to expense 446 384 239 (190) 890 831 2,600 Losses charged off (220) (2) (4) (197) (775) (2,082) (3,280) Recoveries 205 19 183 113 198 1,225 1,943 Balance June 30, 2015 $3,886 $3,342 $20,191 $3,288 $3,992 $4,999 $39,698 Ending balance: Individually evaluated for impairment $ 663 $— $2,130 $ 1,411 $ 261 $243 $ 4,708 Collectively evaluated for impairment $3,044 $ 3,323 $ 16,752 $1,671 $3,693 $4,352 $ 32,835 Loans acquired and accounted for under ASC 310-30 $179 $19 $1,309 $206 $38 $404 $2,155 Loans Individually evaluated for impairment $ 9,992 $9,729 $ 25,891 $ 7,334 $ 1,567 $ 1,558 $ 56,071 Collectively evaluated for impairment $ 303,241 $ 376,172 $ 989,563 $ 501,147 $ 429,639 $ 516,809 $3,116,571 Loans acquired and accounted for under ASC 310-30 $ 209,627 $ 47,199 $ 90,814 $ 6,726 $ 14,284 $ 47,068 $ 415,718 The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2014: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Balance April 1, 2014 $4,638 $1,998 $18,443 $7,071 $2,341 $3,784 $38,275 Provision (benefit) charged to expense 915 (281) (1,629) 1,110 979 368 1,462 Losses charged off (505) (2) (338) (95) (738) (764) (2,442) Recoveries 25 8 — 163 — 591 787 Balance June 30, 2014 $5,073 $1,723 $16,476 $8,249 $2,582 $3,979 $38,082 Balance January 1, 2014 $6,235 $2,678 $16,939 $4,464 $6,451 $3,349 $40,116 Provision (benefit) charged to expense 367 (968) (134) 3,693 (1,182) 1,378 3,154 Losses charged off (1,697) (2) (719) (130) (2,687) (1,784) (7,019) Recoveries 168 15 390 222 — 1,036 1,831 Balance June 30, 2014 $5,073 $1,723 $16,476 $8,249 $2,582 $3,979 $38,082 The following table presents the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2014: One- to Four- Family Residential and Other Commercial Commercial Commercial Construction Residential Real Estate Construction Business Consumer Total (In Thousands) Allowance for loan losses Individually evaluated for impairment $829 $— $1,751 $1,507 $823 $232 $5,142 Collectively evaluated for impairment $2,532 $2,923 $16,671 $1,905 $2,805 $4,321 $31,157 Loans acquired and accounted for under ASC 310-30 $94 $18 $1,351 $150 $51 $472 $2,136 Loans Individually evaluated for impairment $11,488 $9,804 $28,641 $7,601 $2,725 $1,480 $61,739 Collectively evaluated for impairment $288,066 $382,610 $917,235 $437,424 $392,348 $466,174 $2,883,857 Loans acquired and accounted for under ASC 310-30 $234,158 $48,470 $107,278 $1,937 $17,789 $48,903 $458,535 |
Note 7_ Loans and Allowance F46
Note 7: Loans and Allowance For Loan Losses: Impaired Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Impaired Financing Receivables | June 30, 2015 Unpaid Recorded Principal Specific Balance Balance Allowance (In Thousands) One- to four-family residential construction $467 $467 $— Subdivision construction 4,361 4,418 223 Land development 7,334 7,337 1,411 Commercial construction — — — Owner occupied one- to four-family residential 3,555 3,819 370 Non-owner occupied one- to four-family residential 1,609 1,826 70 Commercial real estate 25,891 27,250 2,130 Other residential 9,729 9,729 — Commercial business 1,567 1,591 261 Industrial revenue bonds — — — Consumer auto 561 604 84 Consumer other 604 756 91 Home equity lines of credit 393 492 68 Total $56,071 $58,289 $4,708 Three Months Ended Six Months Ended June 30, 2015 June 30, 2015 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $660 $12 $815 $28 Subdivision construction 4,421 53 4,452 106 Land development 7,339 66 7,424 132 Commercial construction — — — — Owner occupied one- to four-family residential 3,681 39 3,832 88 Non-owner occupied one- to four-family residential 1,688 20 1,737 45 Commercial real estate 26,275 326 26,456 630 Other residential 9,742 93 9,761 180 Commercial business 1,962 19 2,216 47 Industrial revenue bonds — — — — Consumer auto 456 14 440 21 Consumer other 569 16 575 33 Home equity lines of credit 404 4 405 13 Total $57,197 $662 $58,113 $1,323 At or for the Year Ended December 31, 2014 Average Unpaid Investment Interest Recorded Principal Specific in Impaired Income Balance Balance Allowance Loans Recognized (In Thousands) One- to four-family residential construction $1,312 $1,312 $— $173 $76 Subdivision construction 4,540 4,540 344 2,593 226 Land development 7,601 8,044 1,507 9,691 292 Commercial construction — — — — — Owner occupied one- to four-family residential 3,747 4,094 407 4,808 212 Non-owner occupied one- to four-family residential 1,889 2,113 78 4,010 94 Commercial real estate 28,641 30,781 1,751 29,808 1,253 Other residential 9,804 9,804 — 10,469 407 Commercial business 2,725 2,750 823 2,579 158 Industrial revenue bonds — — — 2,644 — Consumer auto 420 507 63 219 37 Consumer other 629 765 94 676 71 Home equity lines of credit 431 476 75 461 25 Total $ 61,739 $ 65,186 $ 5,142 $ 68,131 $ 2,851 June 30, 2014 Unpaid Recorded Principal Specific Balance Balance Allowance (In Thousands) One- to four-family residential construction $170 $170 $— Subdivision construction 1,707 1,783 585 Land development 7,600 8,024 1,531 Commercial construction — — — Owner occupied one- to four-family residential 5,149 5,490 581 Non-owner occupied one- to four-family residential 4,534 4,680 457 Commercial real estate 30,744 33,200 1,507 Other residential 10,586 10,586 — Commercial business 2,183 2,203 606 Industrial revenue bonds 3,651 4,585 — Consumer auto 187 215 28 Consumer other 738 856 111 Home equity lines of credit 436 460 92 Total $67,685 $72,252 $5,498 Three Months Ended Six Months Ended June 30, 2014 June 30, 2014 Average Average Investment Interest Investment Interest in Impaired Income in Impaired Income Loans Recognized Loans Recognized (In Thousands) One- to four-family residential construction $57 $3 $28 $3 Subdivision construction 2,310 8 2,720 30 Land development 10,937 42 11,779 143 Commercial construction — — — — Owner occupied one- to four-family residential 5,101 60 5,318 112 Non-owner occupied one- to four-family residential 4,140 69 3,930 110 Commercial real estate 29,958 360 30,541 690 Other residential 10,734 120 10,845 210 Commercial business 1,847 47 2,904 68 Industrial revenue bonds 2,933 303 2,815 303 Consumer auto 160 5 166 7 Consumer other 714 24 696 42 Home equity lines of credit 441 — 484 14 Total $69,332 $1,041 $72,226 $1,732 |
Note 7_ Loans and Allowance F47
Note 7: Loans and Allowance For Loan Losses: Troubled Debt Restructurings on Financing Receivables (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Troubled Debt Restructurings on Financing Receivables | The following tables present newly restructured loans during the three and six months ended June 30, 2015 by type of modification: Three Months Ended June 30, 2015 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: One -to four- family residential $— $82 $— $82 Commercial real estate — 115 — 115 Consumer — 48 — 48 $ — $ 245 $ — $ 245 Six Months Ended June 30, 2015 Total Interest Only Term Combination Modification (In Thousands) Mortgage loans on real estate: One -to four- family residential $— $209 $— $209 Commercial real estate — 115 — 115 Consumer — 48 — 48 $ — $ 372 $ — $ 372 |
Note 7_ Loans and Allowance F48
Note 7: Loans and Allowance For Loan Losses: Financing Receivable Credit Quality Indicators (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Financing Receivable Credit Quality Indicators | June 30, 2015 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $38,009 $ — $ — $ 467 $ — $38,476 Subdivision construction 30,153 269 — 3,831 — 34,253 Land development 37,603 5,432 — 5,539 — 48,574 Commercial construction 459,907 — — — — 459,907 Owner occupied one- to four- family residential 91,783 596 — 1,645 — 94,024 Non-owner occupied one- to four- family residential 144,892 531 — 1,057 — 146,480 Commercial real estate 977,324 28,349 — 9,781 — 1,015,454 Other residential 374,377 9,569 — 1,955 — 385,901 Commercial business 389,655 1,322 — 697 — 391,674 Industrial revenue bonds 39,532 — — — — 39,532 Consumer auto 370,770 — — 501 — 371,271 Consumer other 76,122 — — 459 — 76,581 Home equity lines of credit 70,122 — — 393 — 70,515 Acquired FDIC-covered loans, net of discounts 265,833 — — 538 — 266,371 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 38,343 — — 139 — 38,482 Acquired non-covered loans, net of discounts 110,798 — — 67 — 110,865 Total $3,515,223 $46,068 $ — $27,069 $ — $3,588,360 December 31, 2014 Special Satisfactory Watch Mention Substandard Doubtful Total (In Thousands) One- to four-family residential construction $39,049 $— $— $1,312 $— $40,361 Subdivision construction 24,269 21 — 4,303 — 28,593 Land development 41,035 5,000 — 6,061 — 52,096 Commercial construction 392,929 — — — — 392,929 Owner occupied one- to-four- family residential 85,041 745 — 1,763 — 87,549 Non-owner occupied one- to- four-family residential 141,198 580 — 1,273 — 143,051 Commercial real estate 901,167 32,155 — 12,554 — 945,876 Other residential 380,811 9,647 — 1,956 — 392,414 Commercial business 351,744 423 — 1,845 — 354,012 Industrial revenue bonds 40,037 1,024 — — — 41,061 Consumer auto 323,002 — — 351 — 323,353 Consumer other 77,507 3 — 519 — 78,029 Home equity lines of credit 65,841 — — 431 — 66,272 Acquired FDIC-covered loans, net of discounts 286,049 — — 559 — 286,608 Acquired loans no longer covered by FDIC loss sharing agreements, net of discounts 48,592 — — 1,353 — 49,945 Acquired non-covered loans, net of discounts 121,982 — — — — 121,982 Total $3,320,253 $49,598 $— $34,280 $— $3,404,131 |
Note 8_ Acquired Loans, Loss 49
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: Schedule of Impact of Adjustments of Acquired Loans on Financial Results (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Impact of Adjustments of Acquired Loans on Financial Results | Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $7,259 78 bps $9,085 107 bps Non-interest income (5,374) (7,469) Net impact to pre-tax income $1,885 $1,616 Net impact net of taxes $1,225 $1,050 Impact to diluted earnings per common share $0.09 $0.08 Six Months Ended Six Months Ended June 30, 2015 June 30, 2014 (In Thousands, Except Per Share Data and Basis Points Data) Impact on net interest income/ net interest margin (in basis points) $16,221 88 bps $16,988 102 bps Non-interest income (12,052) (13,805) Net impact to pre-tax income $4,169 $3,183 Net impact net of taxes $2,710 $2,069 Impact to diluted earnings per common share $0.19 $0.15 |
Note 8_ Acquired Loans, Loss 50
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: FDIC Indemnification Asset Roll Forward (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
TeamBank | |
FDIC Indemnification Asset Roll Forward | June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $34,204 $21 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,619) — Original estimated fair value of assets, net of activity since acquisition date (32,440) (21) Expected loss remaining 145 — Assumed loss sharing recovery percentage 92% —% Estimated loss sharing value 133 — Indemnification asset to be amortized resulting from change in expected losses 340 — FDIC indemnification asset $473 $— December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $43,855 $132 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,923) — Original estimated fair value of assets, net of activity since acquisition date (41,560) (119) Expected loss remaining 372 13 Assumed loss sharing recovery percentage 85% 77% Estimated loss sharing value 315 10 Indemnification asset to be amortized resulting from change in expected losses 359 — FDIC indemnification asset $674 $10 |
Vantus Bank | |
FDIC Indemnification Asset Roll Forward | June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $35,556 $899 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (654) — Original estimated fair value of assets, net of activity since acquisition date (34,649) (709) Expected loss remaining 253 190 Assumed loss sharing recovery percentage 61% 0% Estimated loss sharing value (1) 154 — Indemnification asset to be amortized resulting from change in expected losses 457 — FDIC indemnification asset $611 $— (1) Includes $152,000 impairment of indemnification asset for foreclosed assets. Resolution of certain items related to commercial foreclosed assets did not occur prior to the expiration of the non-single-family loss sharing agreement for Vantus Bank on September 30, 2014. December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $42,138 $1,084 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (504) — Original estimated fair value of assets, net of activity since acquisition date (40,997) (894) Expected loss remaining 637 190 Assumed loss sharing recovery percentage 72% 0% Estimated loss sharing value 461 — Indemnification asset to be amortized resulting from change in expected losses 324 — FDIC indemnification asset $785 $— |
Sun Security Bank | |
FDIC Indemnification Asset Roll Forward | June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $51,172 $736 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (2,554) — Original estimated fair value of assets, net of activity since acquisition date (45,584) (646) Expected loss remaining 3,034 90 Assumed loss sharing recovery percentage 60% 80% Estimated loss sharing value 1,815 72 Indemnification asset to be amortized resulting from change in expected losses 2,035 — Accretable discount on FDIC indemnification asset (115) (63) FDIC indemnification asset $3,735 $9 December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $59,618 $2,325 Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (3,341) — Original estimated fair value of assets, net of activity since acquisition date (52,166) (1,488) Expected loss remaining 4,111 837 Assumed loss sharing recovery percentage 65% 80% Estimated loss sharing value 2,676 670 Indemnification asset to be amortized resulting from change in expected losses 2,662 — Accretable discount on FDIC indemnification asset (267) (64) FDIC indemnification asset $5,071 $606 |
InterBank | |
FDIC Indemnification Asset Roll Forward | June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $222,865 $2,837 Non-credit premium/(discount), net of activity since acquisition date 1,123 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (11,773) — Original estimated fair value of assets, net of activity since acquisition date (192,181) (2,118) Expected loss remaining 20,034 719 Assumed loss sharing recovery percentage 83% 80% Estimated loss sharing value (1) 16,583 575 FDIC loss share clawback 3,073 — Indemnification asset to be amortized resulting from change in expected losses 9,418 — Accretable discount on FDIC indemnification asset (2,266) (33) FDIC indemnification asset $26,808 $542 (1) Includes $400,000 impairment of indemnification asset for loans December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis for loss sharing determination, net of activity since acquisition date $244,977 $4,494 Non-credit premium/(discount), net of activity since acquisition date 1,361 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (19,566) — Original estimated fair value of assets, net of activity since acquisition date (201,830) (3,986) Expected loss remaining 24,942 508 Assumed loss sharing recovery percentage 82% 80% Estimated loss sharing value 20,509 406 FDIC loss share clawback 3,620 — Indemnification asset to be amortized resulting from change in expected losses 15,652 — Accretable discount on FDIC indemnification asset (2,967) (33) FDIC indemnification asset $36,814 $373 |
Valley Bank | |
FDIC Indemnification Asset Roll Forward | June 30, 2015 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $132,354 $539 Non-credit premium/(discount), net of activity since acquisition date 1,094 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (2,227) — Original estimated fair value of assets, net of activity since acquisition date (110,864) (539) Expected loss remaining $20,357 $— December 31, 2014 Foreclosed Loans Assets (In Thousands) Initial basis, net of activity since acquisition date $145,845 $778 Non-credit premium/(discount), net of activity since acquisition date 1,514 — Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) (1,519) — Original estimated fair value of assets, net of activity since acquisition date (121,982) (778) Expected loss remaining $23,858 $— |
Note 9_ Other Real Estate Own51
Note 9: Other Real Estate Owned: Schedule of Major Classifications of Foreclosed Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Major Classifications of Foreclosed Assets | Major classifications of other real estate owned were as follows: June 30, December 31, 2015 2014 (In Thousands) Foreclosed assets held for sale One- to four-family construction $— $223 Subdivision construction 9,486 9,857 Land development 16,102 17,168 Commercial construction — — One- to four-family residential 1,986 3,353 Other residential 2,150 2,625 Commercial real estate 3,551 1,632 Commercial business 48 59 Consumer 553 624 33,876 35,541 FDIC-supported foreclosed assets, net of discounts 2,827 5,695 Acquired foreclosed assets no longer covered by FDIC loss sharing agreements, net of discounts 709 879 Acquired foreclosed assets not covered by FDIC loss sharing agreements, net of discounts 539 778 Foreclosed assets held for sale, net 37,951 42,893 Other real estate owned not acquired through foreclosure 2,046 2,945 Other real estate owned $ 39,997 $ 45,838 |
Note 9_ Other Real Estate Own52
Note 9: Other Real Estate Owned: Schedule of Expenses Applicable to Foreclosed Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Expenses Applicable to Foreclosed Assets | Three Months Ended June 30, 2015 2014 (In Thousands) Net (gain) loss on sales of foreclosed assets $(484) $(203) Valuation write-downs 139 1,019 Operating expenses, net of rental income 663 526 $318 $1,342 Six Months Ended June 30, 2015 2014 (In Thousands) Net (gain) loss on sales of foreclosed assets $(609) $(54) Valuation write-downs 191 1,199 Operating expenses, net of rental income 1,121 1,047 $703 $2,192 |
Note 10_ Deposits_ Schedule of
Note 10: Deposits: Schedule of Deposit Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Deposit Liabilities | June 30, December 31, 2015 2014 (In Thousands) Time Deposits: 0.00% - 0.99% $889,872 $ 798,932 1.00% - 1.99% 317,674 227,476 2.00% - 2.99% 52,513 61,146 3.00% - 3.99% 2,594 8,065 4.00% - 4.99% 1,361 1,435 5.00% and above 338 420 Total time deposits (0.83% - 0.78%) 1,264,352 1,097,474 Non-interest-bearing demand deposits 543,888 518,266 Interest-bearing demand and savings deposits (0.21% - 0.19%) 1,388,078 1,375,100 Total Deposits $3,196,318 $2,990,840 |
Note 11_ Advances From Federa54
Note 11: Advances From Federal Home Loan Bank: Federal Home Loan Bank, Advances (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Federal Home Loan Bank, Advances | Advances from the Federal Home Loan Bank at June 30, 2015 and December 31, 2014 consisted of the following: June 30, 2015 December 31, 2014 Weighted Weighted Average Average Interest Interest Due In Amount Rate Amount Rate (In Thousands) 2015 $162,033 0.46% $240,065 0.41% 2016 70 5.14 70 5.14 2017 30,826 3.26 30,826 3.26 2018 81 5.14 81 5.14 2019 28 5.14 28 5.14 2020 and thereafter 500 5.54 500 5.54 193,538 0.92 271,570 0.75 Unamortized fair value adjustment 56 71 $ 193,594 $ 271,641 |
Note 12_ Securities Sold Unde55
Note 12: Securities Sold Under Reverse Repurchase Agreements: Schedule of Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Repurchase Agreements | June 30, 2015 December 31, 2014 Overnight and Overnight and Continuous Continuous (In Thousands) FHLBank CD $ 41,000 $ 10,000 Mortgage-backed securities – GNMA, FNMA, FHLMC 175,100 158,993 $216,100 $168,993 |
Note 14_ Disclosures About Fa56
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets Measured on Recurring Basis (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying statements of financial condition measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014: Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) June 30, 2015 U.S. government agencies $19,803 $— $19,803 $ Mortgage-backed securities 224,860 — 224,860 — States and political subdivisions 78,367 — 78,367 — Equity securities 3,359 — 3,359 — Mortgage servicing rights 166 — — 166 Interest rate derivative asset 2,373 — — 2,373 Interest rate derivative liability (2,244) — — (2,244) Fair value measurements using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2014 U.S. government agencies $19,514 $— $19,514 $ Mortgage-backed securities 257,798 — 257,798 — States and political subdivisions 85,040 — 85,040 — Equity securities 3,154 — 3,154 — Mortgage servicing rights 185 — — 185 Interest rate derivative asset 2,502 — — 2,502 Interest rate derivative liability (2,187) — — (2,187) |
Note 14_ Disclosures About Fa57
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | Mortgage Servicing Rights 2015 2014 (In Thousands) Balance, April 1 $179 $200 Additions 17 30 Amortization (30) (34) Balance, June 30 $166 $196 Mortgage Servicing Rights 2015 2014 (In Thousands) Balance, January 1 $185 $211 Additions 43 53 Amortization (62) (68) Balance, June 30 $166 $196 Interest Rate Derivative Asset 2015 2014 (In Thousands) Balance, April 1 $3,105 $1,741 Change in fair value through earnings (939) (19) Balance, June 30 $2,166 $1,722 Interest Rate Derivative Asset 2015 2014 (In Thousands) Balance, January 1 $2,087 $1,859 Change in fair value through earnings 79 (137) Balance, June 30 $2,166 $1,722 Interest Rate Cap Derivative Asset Designated as Hedging Instrument 2015 2014 (In Thousands) Balance, April 1 $251 $620 Change in fair value through other comprehensive income (22) (155) Amortization of cost of interest rate cap (22) (3) Balance, June 30 $207 $462 Interest Rate Cap Derivative Asset Designated as Hedging Instrument 2015 2014 (In Thousands) Balance, January 1 $415 $685 Change in fair value through other comprehensive income (171) (220) Amortization of cost of interest rate cap (37) (3) Balance, June 30 $207 $462 Interest Rate Swap Liability 2015 2014 (In Thousands) Balance, April 1 $3,296 $1,597 Change in fair value through earnings (1,052) 114 Balance, June 30 $2,244 $1,711 Interest Rate Swap Liability 2015 2014 (In Thousands) Balance, January 1 $2,187 $1,613 Change in fair value through earnings 57 98 Balance, June 30 $2,244 $1,711 |
Note 14_ Disclosures About Fa58
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets and Liabilities Measured on Nonrecurring Basis (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | The following tables present the fair value measurements of assets measured at fair value during the periods presented on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014: Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) June 30, 2015 Impaired loans One- to four-family residential construction $ $ $ $ Subdivision construction 275 — — 275 Land development 974 — — 974 Owner occupied one- to four-family residential 102 — — 102 Non-owner occupied one- to four-family residential 162 — — 162 Commercial real estate 4,595 — — 4,595 Other residential — — — — Commercial business 893 — — 893 Consumer auto 164 — — 164 Consumer other 380 — — 380 Home equity lines of credit 216 — — 216 Total impaired loans $7,761 $— $— $7,761 Foreclosed assets held for sale $1,526 $ $ $1,526 Fair Value Measurements Using Quoted prices in active markets Other Significant for identical observable unobservable assets inputs inputs Fair value (Level 1) (Level 2) (Level 3) (In Thousands) December 31, 2014 Impaired loans One- to four-family residential construction $ $ $ $ Subdivision construction 274 — — 274 Land development 3,946 — — 3,946 Owner occupied one- to four-family residential 862 — — 862 Non-owner occupied one- to four-family residential 288 — — 288 Commercial real estate 5,333 — — 5,333 Other residential — — — — Commercial business 320 — — 320 Consumer auto 38 — — 38 Consumer other 399 — — 399 Home equity lines of credit 198 — — 198 Total impaired loans $11,658 $— $— $11,658 Foreclosed assets held for sale $6,975 $ $ $6,975 |
Note 14_ Disclosures About Fa59
Note 14: Disclosures About Fair Value of Financial Instruments: Schedule Of Financial Instruments Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule Of Financial Instruments Fair Value | June 30, 2015 December 31, 2014 Carrying Fair Hierarchy Carrying Fair Hierarchy Amount Value Level Amount Value Level (In Thousands) Financial assets Cash and cash equivalents $269,228 $269,228 1 $218,647 $218,647 1 Held-to-maturity securities 353 390 2 450 499 2 Mortgage loans held for sale 16,567 16,567 2 14,579 14,579 2 Loans, net of allowance for loan losses 3,202,377 3,211,512 3 3,038,848 3,047,741 3 Accrued interest receivable 11,306 11,306 3 11,219 11,219 3 Investment in FHLBank stock 12,605 12,605 3 16,893 16,893 3 Financial liabilities Deposits 3,196,318 3,198,714 3 2,990,840 2,996,226 3 FHLBank advances 193,594 195,074 3 271,641 273,568 3 Short-term borrowings 217,408 217,408 3 211,444 211,444 3 Subordinated debentures 30,929 30,929 3 30,929 30,929 3 Accrued interest payable 1,076 1,076 3 1,067 1,067 3 Unrecognized financial instruments (net of contractual value) Commitments to originate loans — — 3 — — 3 Letters of credit 112 112 3 92 92 3 Lines of credit — — 3 — — 3 |
Note 15_ Derivatives and Hedg60
Note 15: Derivatives and Hedging Activities: Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The table below presents the fair value of the CompanyÂ’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition: Location in Fair Value Consolidated Statements June 30, December 31, of Financial Condition 2015 2014 (In Thousands) Derivatives designated as hedging instruments Interest rate caps Prepaid expenses and other assets $ 207 $ 415 Total derivatives designated as hedging instruments $ 207 $ 415 Derivatives not designated as hedging instruments Asset Derivatives Interest rate products Prepaid expenses and other assets $ 2,166 $ 2,087 Total derivatives not designated as hedging instruments $ 2,166 $ 2,087 Liability Derivatives Interest rate products Accrued expenses and other liabilities $ 2,244 $ 2,187 Total derivatives not designated as hedging instruments $ 2,244 $ 2,187 |
Note 15_ Derivatives and Hedg61
Note 15: Derivatives and Hedging Activities: Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Amount of Gain (Loss) Recognized in AOCI Three Months Ended June 30, Cash Flow Hedges 2015 2014 (In Thousands) Interest rate cap $ (9) $ ( 101) Amount of Gain (Loss) Recognized in AOCI Six Months Ended June 30, Cash Flow Hedges 2015 2014 (In Thousands) Interest rate cap $ (105) $ ( 143) |
Note 2_ Nature of Operations 62
Note 2: Nature of Operations and Operating Segments (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Details | |
Segment Reporting, Additional Information about Entity's Reportable Segments | The operating results of this segment are regularly reviewed by management to make decisions about resource allocations and to assess performance. Selected information is not presented separately for the Company’s reportable segment, as there is no material difference between that information and the corresponding information in the consolidated financial statements |
Note 5_ Earnings Per Share_ S63
Note 5: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Weighted Average Number of Shares Outstanding, Basic | 13,790 | 13,685 | 13,790 | 13,685 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 11,858 | $ 10,909 | $ 23,366 | $ 19,582 |
BASIC EARNINGS PER COMMON SHARE | $ 0.86 | $ 0.80 | $ 1.69 | $ 1.43 |
Weighted Average Number of Shares Outstanding, Diluted | 13,790 | 13,685 | 13,790 | 13,685 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 189 | $ 95 | $ 189 | $ 95 |
Weighted Average Number Diluted Shares Outstanding Adjustment | 13,979 | 13,780 | 13,979 | 13,780 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ 11,858 | $ 10,909 | $ 23,366 | $ 19,582 |
DILUTED EARNINGS PER COMMON SHARE | $ 0.85 | $ 0.79 | $ 1.67 | $ 1.42 |
Note 5_ Earnings Per Share_ E64
Note 5: Earnings Per Share: Earnings Per Share, Policy (Details) - shares | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Options to purchase shares of common stock outstanding not included in computation of diluted earnings per share because exercise price greater than average market price | 12,750 | 182,275 |
Note 6_ Investment Securities65
Note 6: Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Amortized Cost Basis | $ 316,707 | |
Available for Sale Securities, Fair Value | 326,389 | |
Available-for-sale Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 316,707 | $ 354,378 |
Available for sale Securities, Gross Unrealized Gain | 10,444 | 12,442 |
Available For Sale Securities Gross Unrealized Losses | 762 | 1,314 |
Available for Sale Securities, Fair Value | $ 326,389 | $ 365,506 |
Available for Sale Securities Tax Equivalent Yield | 2.72% | 2.82% |
US Government Agencies Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 20,000 | $ 20,000 |
Available For Sale Securities Gross Unrealized Losses | 197 | 486 |
Available for Sale Securities, Fair Value | $ 19,803 | $ 19,514 |
Available for Sale Securities Tax Equivalent Yield | 2.00% | 2.00% |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Amortized Cost Basis | $ 221,842 | $ 254,294 |
Available for sale Securities, Gross Unrealized Gain | 3,544 | 4,325 |
Available For Sale Securities Gross Unrealized Losses | 526 | 821 |
Available for Sale Securities, Fair Value | $ 224,860 | $ 257,798 |
Available for Sale Securities Tax Equivalent Yield | 1.79% | 1.97% |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 74,018 | $ 79,237 |
Available for sale Securities, Gross Unrealized Gain | 4,388 | 5,810 |
Available For Sale Securities Gross Unrealized Losses | 39 | 7 |
Available for Sale Securities, Fair Value | $ 78,367 | $ 85,040 |
Available for Sale Securities Tax Equivalent Yield | 5.72% | 5.76% |
Equity Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 847 | $ 847 |
Available for sale Securities, Gross Unrealized Gain | 2,512 | 2,307 |
Available for Sale Securities, Fair Value | $ 3,359 | $ 3,154 |
Note 6_ Investment Securities66
Note 6: Investment Securities: Schedule of Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Held-to-maturity securities fair value | $ 390 | $ 499 |
US States and Political Subdivisions Debt Securities | ||
Held to Maturity Securities Amortized Cost | 353 | 450 |
Held to Maturity Securities Gross Unrealized Gains | 37 | 49 |
Held-to-maturity securities fair value | $ 390 | $ 499 |
Held to Maturity Securities Tax Equivalent Yield | 7.37% | 7.37% |
Note 6_ Investment Securities67
Note 6: Investment Securities: Investments Classified by Contractual Maturity Date (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Details | |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | $ 254 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 266 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 3,643 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 3,842 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 90,121 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 94,062 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 221,842 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 224,860 |
Available for Sale Securities Equity Securities Amortized Cost | 847 |
Available for Sale Securities Equity Securities Fair Value | 3,359 |
Available-for-sale Securities, Amortized Cost Basis | 316,707 |
Available for Sale Securities, Fair Value | $ 326,389 |
Note 6_ Investment Securities68
Note 6: Investment Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Details | |
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | $ 353 |
Held-to-maturity Securities, Debt Maturities, Year Two Through Five, Fair Value | $ 390 |
Note 6_ Investment Securities69
Note 6: Investment Securities: Investment, Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Fair value investments reported less than historical cost | $ 85,800 | $ 106,000 |
Fair value investments reported less than historical cost percentage of investment portfolio | 26.30% | 29.00% |
Note 6_ Investment Securities70
Note 6: Investment Securities: Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Total Unrealized Losses And Estimated Fair Value | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 21,559 | $ 40,042 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (118) | (328) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 64,250 | 65,981 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (644) | (986) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 85,809 | 106,023 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | (762) | (1,314) |
US Government Agencies Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 20,000 | 20,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (197) | (486) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 20,000 | 20,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | (197) | (486) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 19,004 | 40,042 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (93) | (328) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 43,333 | 45,056 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (433) | (493) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 62,337 | 85,098 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | (526) | (821) |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,555 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | (25) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 917 | 925 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | (14) | (7) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,472 | 925 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | $ (39) | $ (7) |
Note 6_ Investment Securities71
Note 6: Investment Securities: Gross Gains and Losses on Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Available-for-sale Securities, Gross Realized Gains | $ 0 | $ 569 | $ 0 | $ 642 |
Available-for-sale Securities, Gross Realized Losses | $ 0 | $ 0 | $ 0 | $ 0 |
Note 6_ Investment Securities72
Note 6: Investment Securities: Other Than Temporary Impairment Credit Losses Recognized in Earnings (Details) - Jun. 30, 2014 - USD ($) $ in Thousands | Total | Total |
Reclassifications out of accumulated other comprehensive income | $ 370 | $ 417 |
Amounts Reclassified From Other Comprehensive Income | Net Realized Gains On Sales Of Available For Sale Securities Total Reclassified Amount Before Tax | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 569 | 642 |
Amounts Reclassified From Other Comprehensive Income | Provision For Income Taxes | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ (199) | $ (225) |
Note 7_ Loans and Allowance F73
Note 7: Loans and Allowance For Loan Losses: Schedule of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans Receivable weighted average interest rate | 4.59% | 4.66% |
Consumer Loan | ||
Loans Receivable | $ 76,581 | $ 78,029 |
Automobile Loan | ||
Loans Receivable | 371,271 | 323,353 |
One To Four Family Residential Construction | ||
Loans Receivable | 38,476 | 40,361 |
Subdivision Construction | ||
Loans Receivable | 34,253 | 28,593 |
Land Development | ||
Loans Receivable | 48,574 | 52,096 |
Commercial Construction | ||
Loans Receivable | 459,907 | 392,929 |
Owner Occupied One To Four Family Residential | ||
Loans Receivable | 94,024 | 87,549 |
Non-Owner Occupied One To Four Family Residential | ||
Loans Receivable | 146,480 | 143,051 |
Commercial Real Estate | ||
Loans Receivable | 1,015,454 | 945,876 |
Other Residential | ||
Loans Receivable | 385,901 | 392,414 |
Commercial Business | ||
Loans Receivable | 391,674 | 354,012 |
Industrial Revenue Bonds | ||
Loans Receivable | 39,532 | 41,061 |
Home Equity Line of Credit | ||
Loans Receivable | 70,515 | 66,272 |
Acquired FDIC-covered loans, net of discount | ||
Loans Receivable | 266,371 | 286,608 |
AcquiredLoansNoLongerCoveredByFdicLossSharingAgreementsNetOfDiscountsMember | ||
Loans Receivable | 38,482 | 49,945 |
Acquired non-covered loans, net of discounts | ||
Loans Receivable | 110,865 | 121,982 |
Loans receivable, gross | ||
Loans Receivable | 3,588,360 | 3,404,131 |
Undisbursed Portion Of Loans In Process | ||
Loans Receivable | (343,276) | (323,572) |
Allowance for Loans and Leases Receivable | ||
Loans Receivable | (39,698) | (38,435) |
Deferred Loan Fees And Gains, Net | ||
Loans Receivable | (3,009) | (3,276) |
Loans Receivable | ||
Loans Receivable | $ 3,202,377 | $ 3,038,848 |
Note 7_ Loans and Allowance F74
Note 7: Loans and Allowance For Loan Losses: Schedule of Loans Classified by Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Consumer Loan | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | $ 659 | $ 1,301 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 235 | 260 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 515 | 801 |
Financing Receivable, Recorded Investment, Past Due | 1,409 | 2,362 |
Financing Receivable, Recorded Investment, Current | 75,172 | 75,667 |
Notes, Loans and Financing Receivable, Gross, Current | 76,581 | 78,029 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 222 | 397 |
Automobile Loan | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 1,773 | 1,801 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 397 | 244 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 476 | 316 |
Financing Receivable, Recorded Investment, Past Due | 2,646 | 2,361 |
Financing Receivable, Recorded Investment, Current | 368,625 | 320,992 |
Notes, Loans and Financing Receivable, Gross, Current | 371,271 | 323,353 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 4 | |
One To Four Family Residential Construction | ||
Financing Receivable, Recorded Investment, Current | 38,476 | 40,361 |
Notes, Loans and Financing Receivable, Gross, Current | 38,476 | 40,361 |
Subdivision Construction | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 306 | 109 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 56 | |
Financing Receivable, Recorded Investment, Past Due | 362 | 109 |
Financing Receivable, Recorded Investment, Current | 33,891 | 28,484 |
Notes, Loans and Financing Receivable, Gross, Current | 34,253 | 28,593 |
Land Development | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 34 | 110 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 106 | |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 11 | 255 |
Financing Receivable, Recorded Investment, Past Due | 151 | 365 |
Financing Receivable, Recorded Investment, Current | 48,423 | 51,731 |
Notes, Loans and Financing Receivable, Gross, Current | 48,574 | 52,096 |
Commercial Construction | ||
Financing Receivable, Recorded Investment, Current | 459,907 | 392,929 |
Notes, Loans and Financing Receivable, Gross, Current | 459,907 | 392,929 |
Owner Occupied One To Four Family Residential | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 68 | 2,037 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 120 | 441 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 760 | 1,029 |
Financing Receivable, Recorded Investment, Past Due | 948 | 3,507 |
Financing Receivable, Recorded Investment, Current | 93,076 | 84,042 |
Notes, Loans and Financing Receivable, Gross, Current | 94,024 | 87,549 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 170 | |
Non-Owner Occupied One To Four Family Residential | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 583 | |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 101 | |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 212 | 296 |
Financing Receivable, Recorded Investment, Past Due | 313 | 879 |
Financing Receivable, Recorded Investment, Current | 146,167 | 142,172 |
Notes, Loans and Financing Receivable, Gross, Current | 146,480 | 143,051 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 2,349 | 6,887 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 87 | |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 2,670 | 4,699 |
Financing Receivable, Recorded Investment, Past Due | 5,106 | 11,586 |
Financing Receivable, Recorded Investment, Current | 1,010,348 | 934,290 |
Notes, Loans and Financing Receivable, Gross, Current | 1,015,454 | 945,876 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 187 | |
Other Residential | ||
Financing Receivable, Recorded Investment, Current | 385,901 | 392,414 |
Notes, Loans and Financing Receivable, Gross, Current | 385,901 | 392,414 |
Commercial Business | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 190 | 59 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 215 | 411 |
Financing Receivable, Recorded Investment, Past Due | 405 | 470 |
Financing Receivable, Recorded Investment, Current | 391,269 | 353,542 |
Notes, Loans and Financing Receivable, Gross, Current | 391,674 | 354,012 |
Industrial Revenue Bonds | ||
Financing Receivable, Recorded Investment, Current | 39,532 | 41,061 |
Notes, Loans and Financing Receivable, Gross, Current | 39,532 | 41,061 |
Home Equity Line of Credit | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 128 | 89 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 105 | |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 194 | 340 |
Financing Receivable, Recorded Investment, Past Due | 427 | 429 |
Financing Receivable, Recorded Investment, Current | 70,088 | 65,843 |
Notes, Loans and Financing Receivable, Gross, Current | 70,515 | 66,272 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 22 | |
Acquired FDIC-covered loans, net of discount | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 1,173 | 6,236 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 1,661 | 1,062 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 14,753 | 16,419 |
Financing Receivable, Recorded Investment, Past Due | 17,587 | 23,717 |
Financing Receivable, Recorded Investment, Current | 248,784 | 262,891 |
Notes, Loans and Financing Receivable, Gross, Current | 266,371 | 286,608 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 747 | 194 |
Acquired loans not covered by FDIC loss sharing agreements, net of discounts | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 16 | |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 91 | |
Financing Receivable, Recorded Investment, Past Due | 107 | |
Financing Receivable, Recorded Investment, Current | 38,375 | |
Notes, Loans and Financing Receivable, Gross, Current | 38,482 | |
Acquired non-covered loans, net of discounts | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 786 | 2,638 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 304 | 640 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 8,956 | 11,248 |
Financing Receivable, Recorded Investment, Past Due | 10,046 | 14,526 |
Financing Receivable, Recorded Investment, Current | 100,819 | 107,456 |
Notes, Loans and Financing Receivable, Gross, Current | 110,865 | 121,982 |
Loans receivable, gross | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 7,482 | 22,604 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 3,116 | 2,693 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 28,909 | 36,057 |
Financing Receivable, Recorded Investment, Past Due | 39,507 | 61,354 |
Financing Receivable, Recorded Investment, Current | 3,548,853 | 3,342,777 |
Notes, Loans and Financing Receivable, Gross, Current | 3,588,360 | 3,404,131 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 973 | 970 |
Less FDIC Supported Loans and Acquired Not Covered Loans, Net Of Discounts | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 1,975 | 9,628 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 1,965 | 1,748 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 23,800 | 27,910 |
Financing Receivable, Recorded Investment, Past Due | 27,740 | 39,286 |
Financing Receivable, Recorded Investment, Current | 387,978 | 419,249 |
Notes, Loans and Financing Receivable, Gross, Current | 415,718 | 458,535 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 747 | 194 |
Loans Receivable | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 5,507 | 12,976 |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 1,151 | 945 |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 5,109 | 8,147 |
Financing Receivable, Recorded Investment, Past Due | 11,767 | 22,068 |
Financing Receivable, Recorded Investment, Current | 3,160,875 | 2,923,528 |
Notes, Loans and Financing Receivable, Gross, Current | 3,172,642 | 2,945,596 |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 226 | 776 |
AcquiredLoansNoLongerCoveredByFdicLossSharingAgreementsNetOfDiscountsMember | ||
Financing Receivable Recorded Investment 30 To 59 Days Past Due | 754 | |
Financing Receivable Recorded Investment 60 To 89 Days Past Due | 46 | |
Financing Receivable Recorded Investment Equal To Greater Than 90 Days Past Due | 243 | |
Financing Receivable, Recorded Investment, Past Due | 1,043 | |
Financing Receivable, Recorded Investment, Current | 48,902 | |
Notes, Loans and Financing Receivable, Gross, Current | $ 49,945 |
Note 7_ Loans and Allowance F75
Note 7: Loans and Allowance For Loan Losses: Schedule of Financing Receivables NonAccrual Status (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Consumer Loan | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 293 | $ 404 |
Automobile Loan | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 472 | 316 |
Subdivision Construction | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 56 | |
Land Development | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 11 | 255 |
Owner Occupied One To Four Family Residential | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 760 | 859 |
Non-Owner Occupied One To Four Family Residential | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 212 | 296 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,670 | 4,512 |
Commercial Business | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 215 | 411 |
Home Equity Line of Credit | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 194 | 318 |
Loans Receivable Nonaccrual | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 4,883 | $ 7,371 |
Note 7_ Loans and Allowance F76
Note 7: Loans and Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Provision for loan losses | $ 1,300 | $ 1,462 | $ 2,600 | $ 3,154 | |
One To Four Family Residential Construction | |||||
Provision for Loan Losses Expensed | (110) | 915 | 446 | 367 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (80) | (505) | (220) | (1,697) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 91 | 25 | 205 | 168 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 663 | 663 | $ 829 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,044 | 3,044 | 2,532 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 179 | 94 | |||
Financing Receivable, Individually Evaluated for Impairment | 9,992 | 9,992 | 11,488 | ||
Financing Receivable, Collectively Evaluated for Impairment | 303,241 | 303,241 | 288,066 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 209,627 | 209,627 | 234,158 | ||
One To Four Family Residential Construction | Beginning of period | |||||
Provision for loan losses | 3,985 | 4,638 | 3,455 | 6,235 | |
One To Four Family Residential Construction | End of period | |||||
Provision for loan losses | 3,886 | 5,073 | 3,886 | 5,073 | |
Other Residential | |||||
Provision for Loan Losses Expensed | 524 | (281) | 384 | (968) | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (2) | (2) | (2) | ||
Allowance for Doubtful Accounts Receivable, Recoveries | 9 | 8 | 19 | 15 | |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,323 | 3,323 | 2,923 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 19 | 18 | |||
Financing Receivable, Individually Evaluated for Impairment | 9,729 | 9,729 | 9,804 | ||
Financing Receivable, Collectively Evaluated for Impairment | 376,172 | 376,172 | 382,610 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 47,199 | 47,199 | 48,470 | ||
Other Residential | Beginning of period | |||||
Provision for loan losses | 2,809 | 1,998 | 2,941 | 2,678 | |
Other Residential | End of period | |||||
Provision for loan losses | 3,342 | 1,723 | 3,342 | 1,723 | |
Commercial Real Estate | |||||
Provision for Loan Losses Expensed | (146) | (1,629) | 239 | (134) | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (2) | (338) | (4) | (719) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 123 | 183 | 390 | ||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,130 | 2,130 | 1,751 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 16,752 | 16,752 | 16,671 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 1,309 | 1,351 | |||
Financing Receivable, Individually Evaluated for Impairment | 25,891 | 25,891 | 28,641 | ||
Financing Receivable, Collectively Evaluated for Impairment | 989,563 | 989,563 | 917,235 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 90,814 | 90,814 | 107,278 | ||
Commercial Real Estate | Beginning of period | |||||
Provision for loan losses | 20,216 | 18,443 | 19,773 | 16,939 | |
Commercial Real Estate | End of period | |||||
Provision for loan losses | 20,191 | 16,476 | 20,191 | 16,476 | |
Commercial Construction | |||||
Provision for Loan Losses Expensed | (77) | 1,110 | (190) | 3,693 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (95) | (197) | (130) | ||
Allowance for Doubtful Accounts Receivable, Recoveries | 9 | 163 | 113 | 222 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,411 | 1,411 | 1,507 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,671 | 1,671 | 1,905 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 206 | 150 | |||
Financing Receivable, Individually Evaluated for Impairment | 7,334 | 7,334 | 7,601 | ||
Financing Receivable, Collectively Evaluated for Impairment | 501,147 | 501,147 | 437,424 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 6,726 | 6,726 | 1,937 | ||
Commercial Construction | Beginning of period | |||||
Provision for loan losses | 3,356 | 7,071 | 3,562 | 4,464 | |
Commercial Construction | End of period | |||||
Provision for loan losses | 3,288 | 8,249 | 3,288 | 8,249 | |
Commercial Business | |||||
Provision for Loan Losses Expensed | 423 | 979 | 890 | (1,182) | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (551) | (738) | (775) | (2,687) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 175 | 198 | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 261 | 261 | 823 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,693 | 3,693 | 2,805 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 38 | 51 | |||
Financing Receivable, Individually Evaluated for Impairment | 1,567 | 1,567 | 2,725 | ||
Financing Receivable, Collectively Evaluated for Impairment | 429,639 | 429,639 | 392,348 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 14,284 | 14,284 | 17,789 | ||
Commercial Business | Beginning of period | |||||
Provision for loan losses | 3,945 | 2,341 | 3,679 | 6,451 | |
Commercial Business | End of period | |||||
Provision for loan losses | 3,992 | 2,582 | 3,992 | 2,582 | |
Consumer | |||||
Provision for Loan Losses Expensed | 686 | 368 | 831 | 1,378 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (935) | (764) | (2,082) | (1,784) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 488 | 591 | 1,225 | 1,036 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 243 | 243 | 232 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,352 | 4,352 | 4,321 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 404 | 472 | |||
Financing Receivable, Individually Evaluated for Impairment | 1,558 | 1,558 | 1,480 | ||
Financing Receivable, Collectively Evaluated for Impairment | 516,809 | 516,809 | 466,174 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 47,068 | 47,068 | 48,903 | ||
Consumer | Beginning of period | |||||
Provision for loan losses | 4,760 | 3,784 | 5,025 | 3,349 | |
Consumer | End of period | |||||
Provision for loan losses | 4,999 | 3,979 | 4,999 | 3,979 | |
Loans Receivable | |||||
Provision for Loan Losses Expensed | 1,300 | 1,462 | 2,600 | 3,154 | |
Financing Receivable, Allowance for Credit Losses, Write-downs | (1,568) | (2,442) | (3,280) | (7,019) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 895 | 787 | 1,943 | 1,831 | |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 4,708 | 4,708 | 5,142 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 32,835 | 32,835 | 31,157 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Provision for Loan Losses | 2,155 | 2,136 | |||
Financing Receivable, Individually Evaluated for Impairment | 56,071 | 56,071 | 61,739 | ||
Financing Receivable, Collectively Evaluated for Impairment | 3,116,571 | 3,116,571 | 2,883,857 | ||
All Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Not Accounted for Using Income Recognition Model | 415,718 | 415,718 | $ 458,535 | ||
Loans Receivable | Beginning of period | |||||
Provision for loan losses | 39,071 | 38,275 | 38,435 | 40,116 | |
Loans Receivable | End of period | |||||
Provision for loan losses | $ 39,698 | $ 38,082 | $ 39,698 | $ 38,082 |
Note 7_ Loans and Allowance F77
Note 7: Loans and Allowance For Loan Losses: Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Consumer Loan | |||||
Impaired Financing Receivable, Recorded Investment | $ 604 | $ 738 | $ 604 | $ 738 | $ 629 |
Impaired Financing Receivable, Unpaid Principal Balance | 756 | 856 | 756 | 856 | 765 |
Impaired Financing Receivable, Related Allowance | 91 | 111 | 91 | 111 | 94 |
Impaired Financing Receivable, Average Recorded Investment | 569 | 714 | 575 | 696 | 676 |
Impaired Financing Receivable Interest Income Recognized | 16 | 24 | 33 | 42 | 71 |
Automobile Loan | |||||
Impaired Financing Receivable, Recorded Investment | 561 | 187 | 561 | 187 | 420 |
Impaired Financing Receivable, Unpaid Principal Balance | 604 | 215 | 604 | 215 | 507 |
Impaired Financing Receivable, Related Allowance | 84 | 28 | 84 | 28 | 63 |
Impaired Financing Receivable, Average Recorded Investment | 456 | 160 | 440 | 166 | 219 |
Impaired Financing Receivable Interest Income Recognized | 14 | 5 | 21 | 7 | 37 |
One To Four Family Residential Construction | |||||
Impaired Financing Receivable, Recorded Investment | 467 | 170 | 467 | 170 | 1,312 |
Impaired Financing Receivable, Unpaid Principal Balance | 467 | 170 | 467 | 170 | 1,312 |
Impaired Financing Receivable, Average Recorded Investment | 660 | 57 | 815 | 28 | 173 |
Impaired Financing Receivable Interest Income Recognized | 12 | 3 | 28 | 3 | 76 |
Subdivision Construction | |||||
Impaired Financing Receivable, Recorded Investment | 4,361 | 1,707 | 4,361 | 1,707 | 4,540 |
Impaired Financing Receivable, Unpaid Principal Balance | 4,418 | 1,783 | 4,418 | 1,783 | 4,540 |
Impaired Financing Receivable, Related Allowance | 223 | 585 | 223 | 585 | 344 |
Impaired Financing Receivable, Average Recorded Investment | 4,421 | 2,310 | 4,452 | 2,720 | 2,593 |
Impaired Financing Receivable Interest Income Recognized | 53 | 8 | 106 | 30 | 226 |
Land Development | |||||
Impaired Financing Receivable, Recorded Investment | 7,334 | 7,600 | 7,334 | 7,600 | 7,601 |
Impaired Financing Receivable, Unpaid Principal Balance | 7,337 | 8,024 | 7,337 | 8,024 | 8,044 |
Impaired Financing Receivable, Related Allowance | 1,411 | 1,531 | 1,411 | 1,531 | 1,507 |
Impaired Financing Receivable, Average Recorded Investment | 7,339 | 10,937 | 7,424 | 11,779 | 9,691 |
Impaired Financing Receivable Interest Income Recognized | 66 | 42 | 132 | 143 | 292 |
Owner Occupied One To Four Family Residential | |||||
Impaired Financing Receivable, Recorded Investment | 3,555 | 5,149 | 3,555 | 5,149 | 3,747 |
Impaired Financing Receivable, Unpaid Principal Balance | 3,819 | 5,490 | 3,819 | 5,490 | 4,094 |
Impaired Financing Receivable, Related Allowance | 370 | 581 | 370 | 581 | 407 |
Impaired Financing Receivable, Average Recorded Investment | 3,681 | 5,101 | 3,832 | 5,318 | 4,808 |
Impaired Financing Receivable Interest Income Recognized | 39 | 60 | 88 | 112 | 212 |
Non-Owner Occupied One To Four Family Residential | |||||
Impaired Financing Receivable, Recorded Investment | 1,609 | 4,534 | 1,609 | 4,534 | 1,889 |
Impaired Financing Receivable, Unpaid Principal Balance | 1,826 | 4,680 | 1,826 | 4,680 | 2,113 |
Impaired Financing Receivable, Related Allowance | 70 | 457 | 70 | 457 | 78 |
Impaired Financing Receivable, Average Recorded Investment | 1,688 | 4,140 | 1,737 | 3,930 | 4,010 |
Impaired Financing Receivable Interest Income Recognized | 20 | 69 | 45 | 110 | 94 |
Commercial Real Estate | |||||
Impaired Financing Receivable, Recorded Investment | 25,891 | 30,744 | 25,891 | 30,744 | 28,641 |
Impaired Financing Receivable, Unpaid Principal Balance | 27,250 | 33,200 | 27,250 | 33,200 | 30,781 |
Impaired Financing Receivable, Related Allowance | 2,130 | 1,507 | 2,130 | 1,507 | 1,751 |
Impaired Financing Receivable, Average Recorded Investment | 26,275 | 29,958 | 26,456 | 30,541 | 29,808 |
Impaired Financing Receivable Interest Income Recognized | 326 | 360 | 630 | 690 | 1,253 |
Other Residential | |||||
Impaired Financing Receivable, Recorded Investment | 9,729 | 10,586 | 9,729 | 10,586 | 9,804 |
Impaired Financing Receivable, Unpaid Principal Balance | 9,729 | 10,586 | 9,729 | 10,586 | 9,804 |
Impaired Financing Receivable, Average Recorded Investment | 9,742 | 10,734 | 9,761 | 10,845 | 10,469 |
Impaired Financing Receivable Interest Income Recognized | 93 | 120 | 180 | 210 | 407 |
Commercial Business | |||||
Impaired Financing Receivable, Recorded Investment | 1,567 | 2,183 | 1,567 | 2,183 | 2,725 |
Impaired Financing Receivable, Unpaid Principal Balance | 1,591 | 2,203 | 1,591 | 2,203 | 2,750 |
Impaired Financing Receivable, Related Allowance | 261 | 606 | 261 | 606 | 823 |
Impaired Financing Receivable, Average Recorded Investment | 1,962 | 1,847 | 2,216 | 2,904 | 2,579 |
Impaired Financing Receivable Interest Income Recognized | 19 | 47 | 47 | 68 | 158 |
Industrial Revenue Bonds | |||||
Impaired Financing Receivable, Recorded Investment | 3,651 | 3,651 | |||
Impaired Financing Receivable, Unpaid Principal Balance | 4,585 | 4,585 | |||
Impaired Financing Receivable, Average Recorded Investment | 2,933 | 2,815 | 2,644 | ||
Impaired Financing Receivable Interest Income Recognized | 303 | 303 | |||
Home Equity Line of Credit | |||||
Impaired Financing Receivable, Recorded Investment | 393 | 436 | 393 | 436 | 431 |
Impaired Financing Receivable, Unpaid Principal Balance | 492 | 460 | 492 | 460 | 476 |
Impaired Financing Receivable, Related Allowance | 68 | 92 | 68 | 92 | 75 |
Impaired Financing Receivable, Average Recorded Investment | 404 | 441 | 405 | 484 | 461 |
Impaired Financing Receivable Interest Income Recognized | 4 | 13 | 14 | 25 | |
Loans Receivable Impaired | |||||
Impaired Financing Receivable, Recorded Investment | 56,071 | 67,685 | 56,071 | 67,685 | 61,739 |
Impaired Financing Receivable, Unpaid Principal Balance | 58,289 | 72,252 | 58,289 | 72,252 | 65,186 |
Impaired Financing Receivable, Related Allowance | 4,708 | 5,498 | 4,708 | 5,498 | 5,142 |
Impaired Financing Receivable, Average Recorded Investment | 57,197 | 69,332 | 58,113 | 72,226 | 68,131 |
Impaired Financing Receivable Interest Income Recognized | $ 662 | $ 1,041 | $ 1,323 | $ 1,732 | $ 2,851 |
Note 7_ Loans and Allowance F78
Note 7: Loans and Allowance For Loan Losses: Impaired Loans Specific Valuation Allowance (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Impaired Loans With Specific Valuation Allowance | $ 19,600 | $ 20,000 |
Impaired Loans Valuation Allowance | $ 4,700 | $ 5,100 |
Note 7_ Loans and Allowance F79
Note 7: Loans and Allowance For Loan Losses: Troubled Debt Restructurings on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Troubled Debt Restructurings Total Modifications | $ 45,400 | $ 47,600 | |
Total Newly Restructured Loans | |||
Troubled Debt Restructuring Loans Modified Term | 245 | $ 372 | |
Troubled Debt Restructurings Total Modifications | 245 | 372 | |
Mortgage loan on real estate | One To Four Family Residential | |||
Troubled Debt Restructuring Loans Modified Term | 82 | 209 | |
Troubled Debt Restructurings Total Modifications | 82 | 209 | |
Mortgage loan on real estate | Commercial Real Estate | |||
Troubled Debt Restructuring Loans Modified Term | 115 | 115 | |
Troubled Debt Restructurings Total Modifications | 115 | 115 | |
Mortgage loan on real estate | Consumer Loan | |||
Troubled Debt Restructuring Loans Modified Term | 48 | 48 | |
Troubled Debt Restructurings Total Modifications | $ 48 | $ 48 |
Note 7_ Loans and Allowance F80
Note 7: Loans and Allowance For Loan Losses: Loans Modified in Troubled Debt Restructurings by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Troubled Debt Restructurings Total Modifications | $ 45,400 | $ 47,600 |
Troubled Debt Restructurings Accruing Interest | 43,300 | 39,200 |
Substandard | ||
Troubled Debt Restructurings | 16,600 | 18,300 |
Construction And Land Development | ||
Troubled Debt Restructured Loans and Impaired | 8,000 | 8,300 |
Single Family And Multi-Family Residential Mortgage Loans | ||
Troubled Debt Restructured Loans and Impaired | 13,400 | 13,800 |
Commercial Real Estate | ||
Troubled Debt Restructured Loans and Impaired | 22,700 | 23,300 |
Commercial Business | ||
Troubled Debt Restructured Loans and Impaired | 963 | 1,900 |
Consumer Loan | ||
Troubled Debt Restructured Loans and Impaired | $ 294 | $ 324 |
Note 7_ Loans and Allowance F81
Note 7: Loans and Allowance For Loan Losses: Troubled Debt Restructurings Returned to Accrual Status (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Troubled Debt Restructurings Returned to Accrual Status | $ 1 | $ 768 |
Residential Mortgage | ||
Troubled Debt Restructurings Returned to Accrual Status | 711 | |
Commercial Business | ||
Troubled Debt Restructurings Returned to Accrual Status | 29 | |
Consumer Loan | ||
Troubled Debt Restructurings Returned to Accrual Status | 22 | |
Construction And Land Development | ||
Troubled Debt Restructurings Returned to Accrual Status | $ 6 |
Note 7_ Loans and Allowance F82
Note 7: Loans and Allowance For Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Satisfactory | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | $ 76,122 | $ 77,507 |
Satisfactory | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 370,770 | 323,002 |
Satisfactory | One To Four Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 38,009 | 39,049 |
Satisfactory | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 30,153 | 24,269 |
Satisfactory | Land Development | ||
Loan Portfolio Internal Grading System Classification | 37,603 | 41,035 |
Satisfactory | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 459,907 | 392,929 |
Satisfactory | Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 91,783 | 85,041 |
Satisfactory | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 144,892 | 141,198 |
Satisfactory | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 977,324 | 901,167 |
Satisfactory | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 374,377 | 380,811 |
Satisfactory | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 389,655 | 351,744 |
Satisfactory | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 39,532 | 40,037 |
Satisfactory | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 70,122 | 65,841 |
Satisfactory | Acquired FDIC-covered loans, net of discount | ||
Loan Portfolio Internal Grading System Classification | 265,833 | 286,049 |
Satisfactory | Acquired foreclosed assets no longer covered by FDIC loss sharing agreements, net of discounts | ||
Loan Portfolio Internal Grading System Classification | 38,343 | 48,592 |
Satisfactory | Acquired non-covered loans, net of discounts | ||
Loan Portfolio Internal Grading System Classification | 110,798 | 121,982 |
Satisfactory | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 3,515,223 | 3,320,253 |
Watch | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 3 | |
Watch | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 269 | 21 |
Watch | Land Development | ||
Loan Portfolio Internal Grading System Classification | 5,432 | 5,000 |
Watch | Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 596 | 745 |
Watch | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 531 | 580 |
Watch | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 28,349 | 32,155 |
Watch | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 9,569 | 9,647 |
Watch | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 1,322 | 423 |
Watch | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 1,024 | |
Watch | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 46,068 | 49,598 |
Substandard | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 459 | 519 |
Substandard | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 501 | 351 |
Substandard | One To Four Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 467 | 1,312 |
Substandard | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 3,831 | 4,303 |
Substandard | Land Development | ||
Loan Portfolio Internal Grading System Classification | 5,539 | 6,061 |
Substandard | Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 1,645 | 1,763 |
Substandard | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 1,057 | 1,273 |
Substandard | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 9,781 | 12,554 |
Substandard | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 1,955 | 1,956 |
Substandard | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 697 | 1,845 |
Substandard | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 393 | 431 |
Substandard | Acquired FDIC-covered loans, net of discount | ||
Loan Portfolio Internal Grading System Classification | 538 | 559 |
Substandard | Acquired foreclosed assets no longer covered by FDIC loss sharing agreements, net of discounts | ||
Loan Portfolio Internal Grading System Classification | 139 | 1,353 |
Substandard | Acquired non-covered loans, net of discounts | ||
Loan Portfolio Internal Grading System Classification | 67 | |
Substandard | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | 27,069 | 34,280 |
Total For Portfolio | Consumer Loan | ||
Loan Portfolio Internal Grading System Classification | 76,581 | 78,029 |
Total For Portfolio | Automobile Loan | ||
Loan Portfolio Internal Grading System Classification | 371,271 | 323,353 |
Total For Portfolio | One To Four Family Residential Construction | ||
Loan Portfolio Internal Grading System Classification | 38,476 | 40,361 |
Total For Portfolio | Subdivision Construction | ||
Loan Portfolio Internal Grading System Classification | 34,253 | 28,593 |
Total For Portfolio | Land Development | ||
Loan Portfolio Internal Grading System Classification | 48,574 | 52,096 |
Total For Portfolio | Commercial Construction | ||
Loan Portfolio Internal Grading System Classification | 459,907 | 392,929 |
Total For Portfolio | Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 94,024 | 87,549 |
Total For Portfolio | Non-Owner Occupied One To Four Family Residential | ||
Loan Portfolio Internal Grading System Classification | 146,480 | 143,051 |
Total For Portfolio | Commercial Real Estate | ||
Loan Portfolio Internal Grading System Classification | 1,015,454 | 945,876 |
Total For Portfolio | Other Residential | ||
Loan Portfolio Internal Grading System Classification | 385,901 | 392,414 |
Total For Portfolio | Commercial Business | ||
Loan Portfolio Internal Grading System Classification | 391,674 | 354,012 |
Total For Portfolio | Industrial Revenue Bonds | ||
Loan Portfolio Internal Grading System Classification | 39,532 | 41,061 |
Total For Portfolio | Home Equity Line of Credit | ||
Loan Portfolio Internal Grading System Classification | 70,515 | 66,272 |
Total For Portfolio | Acquired FDIC-covered loans, net of discount | ||
Loan Portfolio Internal Grading System Classification | 266,371 | 286,608 |
Total For Portfolio | Acquired foreclosed assets no longer covered by FDIC loss sharing agreements, net of discounts | ||
Loan Portfolio Internal Grading System Classification | 38,482 | 49,945 |
Total For Portfolio | Acquired non-covered loans, net of discounts | ||
Loan Portfolio Internal Grading System Classification | 110,865 | 121,982 |
Total For Portfolio | Loans Receivable | ||
Loan Portfolio Internal Grading System Classification | $ 3,588,360 | $ 3,404,131 |
Note 8_ Acquired Loans, Loss 83
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: Schedule of Impact of Adjustments of Acquired Loans on Financial Results (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | |
Details | ||||
Impact of acquired loan pools on net interest income | $ 7,259 | $ 9,085 | $ 16,221 | $ 16,988 |
Impact of acquired loan pools on net interest margin (in basis points) | 78 | 107 | 88 | |
Impact of acquired loan pools on non-interest income | $ (5,374) | $ (7,469) | $ (12,052) | (13,805) |
Net impact of acquired loan pools to pre-tax income | 1,885 | 1,616 | 4,169 | 3,183 |
Net impact of acquired loan pools to net of taxes | $ 1,225 | $ 1,050 | $ 2,710 | $ 2,069 |
Impact of acquired loan pools to diluted earnings per common share | $ / shares | $ 0.09 | $ 0.08 | $ 0.19 | $ 0.15 |
Note 8_ Acquired Loans, Loss 84
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: FDIC Indemnification Asset Roll Forward (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
FDIC indemnification asset | $ 32,177 | $ 44,334 | |
TeamBank Loans | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 34,204 | 43,855 | |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (1,619) | (1,923) | |
Original estimated fair value of assets, net of activity since acquisition date | (32,440) | (41,560) | |
Expected loss remaining | $ 145 | $ 372 | |
Assumed loss sharing recovery percentage | 92.00% | 85.00% | |
Estimated loss sharing value | $ 133 | $ 315 | |
Indemnification assets to be amortized resulting from change in expected losses | 340 | 359 | |
FDIC indemnification asset | 473 | 674 | |
TeamBank Foreclosed Assets | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 21 | 132 | |
Original estimated fair value of assets, net of activity since acquisition date | (21) | (119) | |
Expected loss remaining | $ 13 | ||
Assumed loss sharing recovery percentage | 77.00% | ||
Estimated loss sharing value | $ 10 | ||
FDIC indemnification asset | 10 | ||
Vantus Bank Loans | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 35,556 | 42,138 | |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (654) | (504) | |
Original estimated fair value of assets, net of activity since acquisition date | (34,649) | (40,997) | |
Expected loss remaining | $ 253 | $ 637 | |
Assumed loss sharing recovery percentage | 61.00% | 72.00% | |
Estimated loss sharing value | $ 154 | [1] | $ 461 |
Indemnification assets to be amortized resulting from change in expected losses | 457 | 324 | |
FDIC indemnification asset | 611 | 785 | |
Vantus Bank Foreclosed Assets | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 899 | 1,084 | |
Original estimated fair value of assets, net of activity since acquisition date | (709) | (894) | |
Expected loss remaining | $ 190 | $ 190 | |
Assumed loss sharing recovery percentage | 0.00% | 0.00% | |
Sun Security Bank Loans | |||
Initial basis for loss sharing determination, net of activity since acquisition date | $ 51,172 | $ 59,618 | |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (2,554) | (3,341) | |
Original estimated fair value of assets, net of activity since acquisition date | (45,584) | (52,166) | |
Expected loss remaining | $ 3,034 | $ 4,111 | |
Assumed loss sharing recovery percentage | 60.00% | 65.00% | |
Estimated loss sharing value | $ 1,815 | $ 2,676 | |
Indemnification assets to be amortized resulting from change in expected losses | 2,035 | 2,662 | |
FDIC indemnification asset | 3,735 | 5,071 | |
Accretable Discount on FDIC Indemnification Asset | (115) | (267) | |
Sun Security Bank Foreclosed Assets | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 736 | 2,325 | |
Original estimated fair value of assets, net of activity since acquisition date | (646) | (1,488) | |
Expected loss remaining | $ 90 | $ 837 | |
Assumed loss sharing recovery percentage | 80.00% | 80.00% | |
Estimated loss sharing value | $ 72 | $ 670 | |
FDIC indemnification asset | 9 | 606 | |
Accretable Discount on FDIC Indemnification Asset | (63) | (64) | |
InterBank Loans | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 222,865 | 244,977 | |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (11,773) | (19,566) | |
Original estimated fair value of assets, net of activity since acquisition date | (192,181) | (201,830) | |
Expected loss remaining | $ 20,034 | $ 24,942 | |
Assumed loss sharing recovery percentage | 83.00% | 82.00% | |
Estimated loss sharing value | $ 16,583 | [2] | $ 20,509 |
Indemnification assets to be amortized resulting from change in expected losses | 9,418 | 15,652 | |
FDIC indemnification asset | 26,808 | 36,814 | |
Accretable Discount on FDIC Indemnification Asset | (2,266) | (2,967) | |
Non-credit premium (discount), net of activity since acquisition date | 1,123 | 1,361 | |
FDIC loss share clawback | 3,073 | 3,620 | |
InterBank Foreclosed Assets | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 2,837 | 4,494 | |
Original estimated fair value of assets, net of activity since acquisition date | (2,118) | (3,986) | |
Expected loss remaining | $ 719 | $ 508 | |
Assumed loss sharing recovery percentage | 80.00% | 80.00% | |
Estimated loss sharing value | $ 575 | [2] | $ 406 |
FDIC indemnification asset | 542 | 373 | |
Accretable Discount on FDIC Indemnification Asset | (33) | (33) | |
Valley Bank Loans | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 132,354 | 145,845 | |
Reclassification from nonaccretable discount to accretable discount due to change in expected losses (net of accretion to date) | (2,227) | (1,519) | |
Original estimated fair value of assets, net of activity since acquisition date | (110,864) | (121,982) | |
Expected loss remaining | 20,357 | 23,858 | |
Non-credit premium (discount), net of activity since acquisition date | 1,094 | 1,514 | |
Valley Bank Foreclosed Assets | |||
Initial basis for loss sharing determination, net of activity since acquisition date | 539 | 778 | |
Original estimated fair value of assets, net of activity since acquisition date | $ (539) | $ (778) | |
[1] | Includes $152,000 impairment of indemnification asset for foreclosed assets. Resolution of certain items related to commercial foreclosed assets did not occur prior to the expiration of the non-single-family loss sharing agreement for Vantus Bank on September 30, 2014. | ||
[2] | Includes $400,000 impairment of indemnification asset for loans |
Note 8_ Acquired Loans, Loss 85
Note 8: Acquired Loans, Loss Sharing Agreements and FDIC Indemnification Assets: Schedule of Accretable Yield Changes for Acquired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||||
TeamBank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | $ (713) | $ (976) | $ (2,114) | $ (2,282) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | (496) | [1] | 1,047 | [1] | (11) | [2] | 2,314 | [2] |
TeamBank | Beginning of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 5,949 | 7,363 | 6,865 | 7,402 | ||||
TeamBank | End of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 4,740 | 7,434 | 4,740 | 7,434 | ||||
Vantus Bank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (710) | (1,000) | (1,391) | (2,131) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 154 | [1] | 427 | [1] | 913 | [2] | 984 | [2] |
Vantus Bank | Beginning of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 4,531 | 5,151 | 4,453 | 5,725 | ||||
Vantus Bank | End of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 3,975 | 4,578 | 3,975 | 4,578 | ||||
Sun Security Bank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (1,365) | (2,407) | (3,318) | (5,224) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 649 | [1] | 1,827 | [1] | 2,050 | [2] | 3,538 | [2] |
Sun Security Bank | Beginning of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 7,400 | 10,007 | 7,952 | 11,113 | ||||
Sun Security Bank | End of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 6,684 | 9,427 | 6,684 | 9,427 | ||||
InterBank | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (7,797) | (10,038) | (16,997) | (18,402) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 716 | [1] | 12,173 | [1] | 5,632 | [2] | 19,415 | [2] |
InterBank | Beginning of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 31,808 | 38,973 | 36,092 | 40,095 | ||||
InterBank | End of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 24,727 | 41,108 | 24,727 | 41,108 | ||||
Valley Bank | ||||||||
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield, Additions | 23,000 | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Accretion | (2,357) | (165) | (4,860) | (165) | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference | 636 | [1] | 3,094 | [2] | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Additions | 23,000 | |||||||
Valley Bank | Beginning of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | 11,087 | 11,132 | ||||||
Valley Bank | End of period | ||||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Period Increase (Decrease) | $ 9,366 | $ 22,835 | $ 9,366 | $ 22,835 | ||||
[1] | Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the three months ended June 30, 2015, totaling $(496,000), $154,000, $649,000, $716,000 and $(264,000), respectively, and for the three months ended June 30, 2014, totaling $1.0 million, $427,000, $352,000, $448,000 and $-0-, respectively. | |||||||
[2] | Represents increases in estimated cash flows expected to be received from the acquired loan pools, primarily due to lower estimated credit losses. The numbers also include changes in expected accretion of the loan pools for TeamBank, Vantus Bank, Sun Security Bank, InterBank and Valley Bank for the six months ended June 30, 2015, totaling $(176,000), $527,000, $1.1 million, $1.6 million and $344,000, respectively, and for the six months ended June 30, 2014, totaling $2.3 million, $984,000, $1.4 million, $1.7 million and $-0-, respectively. |
Note 9_ Other Real Estate Own86
Note 9: Other Real Estate Owned: Schedule of Major Classifications of Foreclosed Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Real Estate Owned, Net | $ 39,997 | $ 45,838 |
Foreclosed Assets Held For Sale | One To Four Family Residential Construction | ||
Foreclosed Assets | 223 | |
Foreclosed Assets Held For Sale | Subdivision Construction | ||
Foreclosed Assets | 9,486 | 9,857 |
Foreclosed Assets Held For Sale | Land Development | ||
Foreclosed Assets | 16,102 | 17,168 |
Foreclosed Assets Held For Sale | One To Four Family Residential | ||
Foreclosed Assets | 1,986 | 3,353 |
Foreclosed Assets Held For Sale | Other Residential | ||
Foreclosed Assets | 2,150 | 2,625 |
Foreclosed Assets Held For Sale | Commercial Real Estate | ||
Foreclosed Assets | 3,551 | 1,632 |
Foreclosed Assets Held For Sale | Commercial Business | ||
Foreclosed Assets | 48 | 59 |
Foreclosed Assets Held For Sale | Consumer | ||
Foreclosed Assets | 553 | 624 |
Foreclosed Assets Held For Sale | Foreclosed Assets Before FDIC Supported Foreclosed Assets | ||
Foreclosed Assets | 33,876 | 35,541 |
Foreclosed Assets Held For Sale | FDIC Supported Foreclosed Assets Net Of Discounts | ||
Foreclosed Assets | 2,827 | 5,695 |
Foreclosed Assets Held For Sale | Acquired foreclosed assets no longer covered by FDIC loss sharing agreements, net of discounts | ||
Foreclosed Assets | 709 | 879 |
Foreclosed Assets Held For Sale | Acquired loans not covered by FDIC loss sharing agreements, net of discounts | ||
Foreclosed Assets | 539 | 778 |
Foreclosed Assets Held For Sale, Net | ||
Foreclosed Assets | 37,951 | 42,893 |
Other real estate owned not acquired through foreclosure | ||
Other Real Estate Owned, Net | $ 2,046 | $ 2,945 |
Note 9_ Other Real Estate Own87
Note 9: Other Real Estate Owned: Schedule of Expenses Applicable to Foreclosed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Loss (Gain) on Sales of Foreclosed Assets | $ (484) | $ (203) | $ (609) | $ (54) |
Valuation write-downs on foreclosed assets | 139 | 1,019 | 191 | 1,199 |
Operating expenses, net of rental income | 663 | 526 | 1,121 | 1,047 |
Total foreclosed assets expenses | $ 318 | $ 1,342 | $ 703 | $ 2,192 |
Note 10_ Deposits_ Schedule o88
Note 10: Deposits: Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Deposits | $ 3,196,318 | $ 2,990,840 | |
Non-Interest Bearing Demand Deposits | |||
Deposits | 543,888 | 518,266 | |
Interest Bearing Demand And Savings Deposits | |||
Deposits | [1] | 1,388,078 | 1,375,100 |
Total Deposits | |||
Deposits | 3,196,318 | 2,990,840 | |
Bank Time Deposits | 0.00% - 0.99% | |||
Deposits | 889,872 | 798,932 | |
Bank Time Deposits | 1.00% - 1.99% | |||
Deposits | 317,674 | 227,476 | |
Bank Time Deposits | 2.00% - 2.99% | |||
Deposits | 52,513 | 61,146 | |
Bank Time Deposits | 3.00% - 3.99% | |||
Deposits | 2,594 | 8,065 | |
Bank Time Deposits | 4.00% - 4.99% | |||
Deposits | 1,361 | 1,435 | |
Bank Time Deposits | 5% and above | |||
Deposits | 338 | 420 | |
Bank Time Deposits | Total Time Deposits | |||
Deposits | [2] | $ 1,264,352 | $ 1,097,474 |
[1] | (0.21% - 0.19%) | ||
[2] | (0.83% - 0.78%) |
Note 11_ Advances From Federa89
Note 11: Advances From Federal Home Loan Bank: Federal Home Loan Bank, Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank advances | $ 193,594 | $ 271,641 |
Due in 2015 | ||
Federal Home Loan Bank advances | $ 162,033 | $ 240,065 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 0.46% | 0.41% |
Due in 2016 | ||
Federal Home Loan Bank advances | $ 70 | $ 70 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 5.14% | 5.14% |
Due in 2017 | ||
Federal Home Loan Bank advances | $ 30,826 | $ 30,826 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 3.26% | 3.26% |
Due in 2018 | ||
Federal Home Loan Bank advances | $ 81 | $ 81 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 5.14% | 5.14% |
Due in 2019 | ||
Federal Home Loan Bank advances | $ 28 | $ 28 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 5.14% | 5.14% |
Due In 2020 And Thereafter | ||
Federal Home Loan Bank advances | $ 500 | $ 500 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 5.54% | 5.54% |
Federal Home Loan Bank Advances, Gross | ||
Federal Home Loan Bank advances | $ 193,538 | $ 271,570 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 0.92% | 0.75% |
Federal Home Loan Bank Advances Unamortized Fair Value Adjustment | ||
Federal Home Loan Bank advances | $ 56 | $ 71 |
Federal Home Loan Bank Advances, Net | ||
Federal Home Loan Bank advances | $ 193,594 | $ 271,641 |
Note 12_ Securities Sold Unde90
Note 12: Securities Sold Under Reverse Repurchase Agreements: Schedule of Repurchase Agreements (Details) - Financial Assets Sold under Agreement to Repurchase - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 216,100 | $ 168,993 |
Maturity Overnight | Federal Home Loan Bank Certificates and Obligations (FHLB) | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | 41,000 | 10,000 |
Maturity Overnight | Mortgage Backed Securities, Other | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 175,100 | $ 158,993 |
Note 13_ Income Taxes (Details)
Note 13: Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent | (1.80%) | (3.10%) | (2.40%) | (3.40%) |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | (8.00%) | (9.20%) | (8.10%) | (9.60%) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 1.30% | 1.60% | 1.10% | 1.40% |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.40%) | 0.70% | (0.10%) | 0.30% |
Effective Income Tax Rate Reconciliation, Percent | 26.10% | 25.00% | 25.50% | 23.70% |
Note 14_ Disclosures About Fa92
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
US Government Agencies Debt Securities | ||
Assets, Fair Value Disclosure, Recurring | $ 19,803 | $ 19,514 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Assets, Fair Value Disclosure, Recurring | 224,860 | 257,798 |
US States and Political Subdivisions Debt Securities | ||
Assets, Fair Value Disclosure, Recurring | 78,367 | 85,040 |
Equity Securities | ||
Assets, Fair Value Disclosure, Recurring | 3,359 | 3,154 |
Mortgage Servicing Rights | ||
Assets, Fair Value Disclosure, Recurring | 166 | 185 |
Interest Rate Swap Asset | ||
Assets, Fair Value Disclosure, Recurring | 2,373 | 2,502 |
Interest Rate Swap Liability | ||
Assets, Fair Value Disclosure, Recurring | (2,244) | (2,187) |
Fair Value, Inputs, Level 2 | US Government Agencies Debt Securities | ||
Assets, Fair Value Disclosure, Recurring | 19,803 | 19,514 |
Fair Value, Inputs, Level 2 | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Assets, Fair Value Disclosure, Recurring | 224,860 | 257,798 |
Fair Value, Inputs, Level 2 | US States and Political Subdivisions Debt Securities | ||
Assets, Fair Value Disclosure, Recurring | 78,367 | 85,040 |
Fair Value, Inputs, Level 2 | Equity Securities | ||
Assets, Fair Value Disclosure, Recurring | 3,359 | 3,154 |
Fair Value, Inputs, Level 3 | Mortgage Servicing Rights | ||
Assets, Fair Value Disclosure, Recurring | 166 | 185 |
Fair Value, Inputs, Level 3 | Interest Rate Swap Asset | ||
Assets, Fair Value Disclosure, Recurring | 2,373 | 2,502 |
Fair Value, Inputs, Level 3 | Interest Rate Swap Liability | ||
Assets, Fair Value Disclosure, Recurring | $ (2,244) | $ (2,187) |
Note 14_ Disclosures About Fa93
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Mortgage Servicing Rights | ||||
Servicing Asset at Fair Value, Additions | $ 17 | $ 30 | $ 43 | $ 53 |
Amortization of Mortgage Servicing Rights (MSRs) | (30) | (34) | (62) | (68) |
Mortgage Servicing Rights | Beginning of period | ||||
Fair Value Mortgage Servicing Rights | 179 | 200 | 185 | 211 |
Mortgage Servicing Rights | End of period | ||||
Fair Value Mortgage Servicing Rights | 166 | 196 | 166 | 196 |
Interest Rate Derivative Asset | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (939) | (19) | 79 | (137) |
Interest Rate Derivative Asset | Beginning of period | ||||
Increase (Decrease) in Derivative Assets | 3,105 | 1,741 | 2,087 | 1,859 |
Interest Rate Derivative Asset | End of period | ||||
Increase (Decrease) in Derivative Assets | 2,166 | 1,722 | 2,166 | 1,722 |
Interest Rate Cap Derivative Asset Designated As HedgingI nstrument | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | (22) | (155) | (171) | (220) |
Amortization of cost of interest rate cap | (22) | (3) | (37) | (3) |
Interest Rate Cap Derivative Asset Designated As HedgingI nstrument | Beginning of period | ||||
Derivative Asset Designated as Hedging Instrument Cap | 251 | 620 | 415 | 685 |
Interest Rate Cap Derivative Asset Designated As HedgingI nstrument | End of period | ||||
Derivative Asset Designated as Hedging Instrument Cap | 207 | 462 | 207 | 462 |
Interest Rate Swap Liability | ||||
Change in Unrealized Gain (Loss) on Fair Value Hedging Instruments | (1,052) | 114 | 57 | 98 |
Interest Rate Swap Liability | Beginning of period | ||||
Fair Value Interest Rate Swap Liabilities | 3,296 | 1,597 | 2,187 | 1,613 |
Interest Rate Swap Liability | End of period | ||||
Fair Value Interest Rate Swap Liabilities | $ 2,244 | $ 1,711 | $ 2,244 | $ 1,711 |
Note 14_ Disclosures About Fa94
Note 14: Disclosures About Fair Value of Financial Instruments: Fair Value Measurement, Policy: Fair Value, Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired Loans | Consumer Loan | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 380 | $ 399 |
Impaired Loans | Automobile Loan | ||
Assets, Fair Value Disclosure, Nonrecurring | 164 | 38 |
Impaired Loans | Subdivision Construction | ||
Assets, Fair Value Disclosure, Nonrecurring | 275 | 274 |
Impaired Loans | Land Development | ||
Assets, Fair Value Disclosure, Nonrecurring | 974 | 3,946 |
Impaired Loans | Owner Occupied One To Four Family Residential | ||
Assets, Fair Value Disclosure, Nonrecurring | 102 | 862 |
Impaired Loans | Non-Owner Occupied One To Four Family Residential | ||
Assets, Fair Value Disclosure, Nonrecurring | 162 | 288 |
Impaired Loans | Commercial Real Estate | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,595 | 5,333 |
Impaired Loans | Commercial Business | ||
Assets, Fair Value Disclosure, Nonrecurring | 893 | 320 |
Impaired Loans | Home Equity Line of Credit | ||
Assets, Fair Value Disclosure, Nonrecurring | 216 | 198 |
Impaired Loans | Total Impaired Loans | ||
Assets, Fair Value Disclosure, Nonrecurring | 7,761 | 11,658 |
Foreclosed Assets Held For Sale | ||
Assets, Fair Value Disclosure, Nonrecurring | 1,526 | 6,975 |
Fair Value, Inputs, Level 3 | Impaired Loans | Consumer Loan | ||
Assets, Fair Value Disclosure, Nonrecurring | 380 | 399 |
Fair Value, Inputs, Level 3 | Impaired Loans | Automobile Loan | ||
Assets, Fair Value Disclosure, Nonrecurring | 164 | 38 |
Fair Value, Inputs, Level 3 | Impaired Loans | Subdivision Construction | ||
Assets, Fair Value Disclosure, Nonrecurring | 275 | 274 |
Fair Value, Inputs, Level 3 | Impaired Loans | Land Development | ||
Assets, Fair Value Disclosure, Nonrecurring | 974 | 3,946 |
Fair Value, Inputs, Level 3 | Impaired Loans | Owner Occupied One To Four Family Residential | ||
Assets, Fair Value Disclosure, Nonrecurring | 102 | 862 |
Fair Value, Inputs, Level 3 | Impaired Loans | Non-Owner Occupied One To Four Family Residential | ||
Assets, Fair Value Disclosure, Nonrecurring | 162 | 288 |
Fair Value, Inputs, Level 3 | Impaired Loans | Commercial Real Estate | ||
Assets, Fair Value Disclosure, Nonrecurring | 4,595 | 5,333 |
Fair Value, Inputs, Level 3 | Impaired Loans | Commercial Business | ||
Assets, Fair Value Disclosure, Nonrecurring | 893 | 320 |
Fair Value, Inputs, Level 3 | Impaired Loans | Home Equity Line of Credit | ||
Assets, Fair Value Disclosure, Nonrecurring | 216 | 198 |
Fair Value, Inputs, Level 3 | Impaired Loans | Total Impaired Loans | ||
Assets, Fair Value Disclosure, Nonrecurring | 7,761 | 11,658 |
Fair Value, Inputs, Level 3 | Foreclosed Assets Held For Sale | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,526 | $ 6,975 |
Note 14_ Disclosures About Fa95
Note 14: Disclosures About Fair Value of Financial Instruments: Schedule Of Financial Instruments Fair Value (Details) $ in Thousands | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | $ 269,228 | $ 218,647 |
Financial Instruments, Owned, at Fair Value | $ 269,228 | $ 218,647 |
Fair Value by Fair Value Hierarchy Level | 1 | 1 |
Financial Assets | Held-to-maturity Securities | ||
Financial Instruments Owned Carrying Amount | $ 353 | $ 450 |
Financial Instruments, Owned, at Fair Value | $ 390 | $ 499 |
Fair Value by Fair Value Hierarchy Level | 2 | 2 |
Financial Assets | Mortgage Loans Held For Sale | ||
Financial Instruments Owned Carrying Amount | $ 16,567 | $ 14,579 |
Financial Instruments, Owned, at Fair Value | $ 16,567 | $ 14,579 |
Fair Value by Fair Value Hierarchy Level | 2 | 2 |
Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | $ 3,202,377 | $ 3,038,848 |
Financial Instruments, Owned, at Fair Value | $ 3,211,512 | $ 3,047,741 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Assets | Accrued Interest Receivable | ||
Financial Instruments Owned Carrying Amount | $ 11,306 | $ 11,219 |
Financial Instruments, Owned, at Fair Value | $ 11,306 | $ 11,219 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | $ 12,605 | $ 16,893 |
Financial Instruments, Owned, at Fair Value | $ 12,605 | $ 16,893 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | $ 3,196,318 | $ 2,990,840 |
Financial Instruments, Owned, at Fair Value | $ 3,198,714 | $ 2,996,226 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | $ 193,594 | $ 271,641 |
Financial Instruments, Owned, at Fair Value | $ 195,074 | $ 273,568 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Short-term Debt | ||
Financial Instruments Owned Carrying Amount | $ 217,408 | $ 211,444 |
Financial Instruments, Owned, at Fair Value | $ 217,408 | $ 211,444 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | $ 30,929 | $ 30,929 |
Financial Instruments, Owned, at Fair Value | $ 30,929 | $ 30,929 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Financial Liabilities | Accrued Interest Payable | ||
Financial Instruments Owned Carrying Amount | $ 1,076 | $ 1,067 |
Financial Instruments, Owned, at Fair Value | $ 1,076 | $ 1,067 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Unrecognized Financial Instruments Net Of Contractual Value | Loan Origination Commitments | ||
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Unrecognized Financial Instruments Net Of Contractual Value | Letter of Credit | ||
Financial Instruments Owned Carrying Amount | $ 112 | $ 92 |
Financial Instruments, Owned, at Fair Value | $ 112 | $ 92 |
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Unrecognized Financial Instruments Net Of Contractual Value | Line of Credit | ||
Fair Value by Fair Value Hierarchy Level | 3 | 3 |
Note 15_ Derivatives and Hedg96
Note 15: Derivatives and Hedging Activities: Nondesignated Hedges (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Interest Rate Swap | Not Designated as Hedging Instrument | Commercial customers | ||
Derivative, Notional Amount | $ 113,900 | $ 125,100 |
Note 15_ Derivatives and Hedg97
Note 15: Derivatives and Hedging Activities: Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Total derivatives designated as hedging instruments | $ 207 | $ 415 |
Asset Derivative Fair Value | ||
Total derivatives not designated as hedging instruments | 2,166 | 2,087 |
Liability Derivative Fair Value | ||
Total derivatives not designated as hedging instruments | $ 2,244 | $ 2,187 |
Note 15_ Derivatives and Hedg98
Note 15: Derivatives and Hedging Activities: Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Interest Rate Cap | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (9) | $ (101) | $ (105) | $ (143) |
Uncategorized Items - gsbc-2015
Label | Element | Value |
Net realized gains on sales of loans | us-gaap_GainLossOnSalesOfLoansNet | $ 1,059 |
Net realized gains on sales of loans | us-gaap_GainLossOnSalesOfLoansNet | 608 |
Initial gain recognized on business acquisition | fil_InitialGainRecognizedOnBusinessAcquisition | $ 10,805 |