Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 25, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'GLACIER BANCORP INC | ' |
Entity Central Index Key | '0000868671 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 74,467,662 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Statements of Financial Condition (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ' | ' |
Cash on hand and in banks | $116,267 | $109,995 |
Federal funds sold | 14,055 | 10,527 |
Interest bearing cash deposits | 31,369 | 35,135 |
Cash and cash equivalents | 161,691 | 155,657 |
Investment securities, available-for-sale | 2,669,180 | 3,222,829 |
Investment securities, held-to-maturity | 481,476 | 0 |
Total investment securities | 3,150,656 | 3,222,829 |
Loans held for sale | 36,133 | 46,738 |
Loans receivable | 4,088,629 | 4,062,838 |
Allowance for loan and lease losses | -130,729 | -130,351 |
Loans receivable, net | 3,957,900 | 3,932,487 |
Premises and equipment, net | 166,757 | 167,671 |
Other real estate owned | 27,332 | 26,860 |
Accrued interest receivable | 41,274 | 41,898 |
Deferred tax asset | 39,997 | 43,549 |
Core deposit intangible, net | 8,802 | 9,512 |
Goodwill | 129,706 | 129,706 |
Non-marketable equity securities | 52,192 | 52,192 |
Other assets | 58,283 | 55,251 |
Total assets | 7,830,723 | 7,884,350 |
Liabilities | ' | ' |
Non-interest bearing deposits | 1,396,272 | 1,374,419 |
Interest bearing deposits | 4,228,193 | 4,205,548 |
Securities sold under agreements to repurchase | 327,322 | 313,394 |
Federal Home Loan Bank advances | 686,744 | 840,182 |
Other borrowed funds | 8,069 | 8,387 |
Subordinated debentures | 125,597 | 125,562 |
Accrued interest payable | 3,173 | 3,505 |
Other liabilities | 70,393 | 50,103 |
Total liabilities | 6,845,763 | 6,921,100 |
Stockholders' Equity | ' | ' |
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value per share, 117,187,500 shares authorized | 745 | 744 |
Paid-in capital | 692,196 | 690,918 |
Retained earnings - substantially restricted | 276,731 | 261,943 |
Accumulated other comprehensive income | 15,288 | 9,645 |
Total stockholders' equity | 984,960 | 963,250 |
Total liabilities and stockholders' equity | $7,830,723 | $7,884,350 |
Number of common stock shares issued and outstanding | 74,465,666 | 74,373,296 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Held-to-maturity securities, fair value | $498,902 | $0 |
Preferred shares, par value | $0.01 | $0.01 |
Preferred shares, authorized | 1,000,000 | 1,000,000 |
Preferred shares, issued | 0 | 0 |
Preferred shares, outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 117,187,500 | 117,187,500 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Income | ' | ' |
Residential real estate loans | $7,087 | $7,260 |
Commercial loans | 35,042 | 28,632 |
Consumer and other loans | 7,643 | 7,864 |
Investment securities | 24,315 | 14,199 |
Total interest income | 74,087 | 57,955 |
Interest Expense | ' | ' |
Deposits | 3,089 | 3,712 |
Securities sold under agreements to repurchase | 210 | 227 |
Federal Home Loan Bank advances | 2,514 | 2,651 |
Federal funds purchased and other borrowed funds | 53 | 52 |
Subordinated debentures | 774 | 816 |
Total interest expense | 6,640 | 7,458 |
Net Interest Income | 67,447 | 50,497 |
Provision for loan losses | 1,122 | 2,100 |
Net interest income after provision for loan losses | 66,325 | 48,397 |
Non-Interest Income | ' | ' |
Service charges and other fees | 12,219 | 10,586 |
Miscellaneous loan fees and charges | 1,029 | 1,089 |
Gain on sale of loans | 3,595 | 9,089 |
Loss on sale of investments | -51 | -137 |
Other income | 2,596 | 2,323 |
Total non-interest income | 19,388 | 22,950 |
Non-Interest Expense | ' | ' |
Compensation and employee benefits | 28,634 | 24,577 |
Occupancy and equipment | 6,613 | 5,825 |
Advertising and promotions | 1,777 | 1,548 |
Outsourced data processing | 1,288 | 825 |
Other real estate owned | 507 | 884 |
Regulatory assessments and insurance | 1,592 | 1,641 |
Core deposit intangibles amortization | 710 | 486 |
Other expense | 8,949 | 7,648 |
Total non-interest expense | 50,070 | 43,434 |
Income Before Income Taxes | 35,643 | 27,913 |
Federal and state income tax expense | 8,913 | 7,145 |
Net Income | $26,730 | $20,768 |
Basic earnings per share | $0.36 | $0.29 |
Diluted earnings per share | $0.36 | $0.29 |
Dividends declared per share | $0.16 | $0.14 |
Average outstanding shares - basic | 74,437,393 | 71,965,665 |
Average outstanding shares - diluted | 74,480,818 | 72,013,177 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $26,730 | $20,768 |
Other Comprehensive Income, Net of Tax | ' | ' |
Unrealized gains on available-for-sale securities | 14,603 | 571 |
Reclassification adjustment for losses included in net income | 73 | 137 |
Net unrealized gains on available-for-sale securities | 14,676 | 708 |
Tax effect | -5,680 | -275 |
Net of tax amount | 8,996 | 433 |
Unrealized (losses) gains on derivatives used for cash flow hedges | -5,479 | 2,752 |
Tax effect | 2,126 | -1,072 |
Net of tax amount | -3,353 | 1,680 |
Total other comprehensive income, net of tax | 5,643 | 2,113 |
Total Comprehensive Income | $32,373 | $22,881 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock | Paid-in Capital | Retained Earnings Substantially Restricted | Accumulated Other Comprehensive Income |
In Thousands, except Share data | |||||
Balance, beginning at Dec. 31, 2012 | $900,949 | $719 | $641,737 | $210,531 | $47,962 |
Balance, beginning, shares at Dec. 31, 2012 | ' | 71,937,222 | ' | ' | ' |
Net income | 20,768 | ' | ' | 20,768 | ' |
Comprehensive income, accumulated other comprehensive income | 2,113 | ' | ' | ' | 2,113 |
Comprehensive income, total | 22,881 | ' | ' | ' | ' |
Cash dividends declared | -10,099 | ' | ' | -10,099 | ' |
Stock issuances under stock incentive plans, shares | ' | 81,395 | ' | ' | ' |
Stock issuances under stock incentive plans, value | 1,266 | 1 | 1,265 | ' | ' |
Stock-based compensation and related taxes | -717 | ' | -717 | ' | ' |
Balance, ending at Mar. 31, 2013 | 914,280 | 720 | 642,285 | 221,200 | 50,075 |
Balance, ending, shares at Mar. 31, 2013 | ' | 72,018,617 | ' | ' | ' |
Balance, beginning at Dec. 31, 2013 | 963,250 | 744 | 690,918 | 261,943 | 9,645 |
Balance, beginning, shares at Dec. 31, 2013 | 74,373,296 | 74,373,296 | ' | ' | ' |
Net income | 26,730 | ' | ' | 26,730 | ' |
Comprehensive income, accumulated other comprehensive income | 5,643 | ' | ' | ' | 5,643 |
Comprehensive income, total | 32,373 | ' | ' | ' | ' |
Cash dividends declared | -11,942 | ' | ' | -11,942 | ' |
Stock issuances under stock incentive plans, shares | ' | 92,370 | ' | ' | ' |
Stock issuances under stock incentive plans, value | 1,037 | 1 | 1,036 | ' | ' |
Stock-based compensation and related taxes | 242 | ' | 242 | ' | ' |
Balance, ending at Mar. 31, 2014 | $984,960 | $745 | $692,196 | $276,731 | $15,288 |
Balance, ending, shares at Mar. 31, 2014 | 74,465,666 | 74,465,666 | ' | ' | ' |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash dividends declared per share | $0.16 | $0.14 |
Retained Earnings Substantially Restricted | ' | ' |
Cash dividends declared per share | $0.16 | $0.14 |
Unaudited_Condensed_Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income | $26,730 | $20,768 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | 1,122 | 2,100 |
Net amortization of investment securities premiums and discounts | 7,619 | 21,411 |
Loans held for sale originated or acquired | -116,771 | -263,004 |
Proceeds from sales of loans held for sale | 135,309 | 348,970 |
Gain on sale of loans | -3,595 | -9,089 |
Loss on sale of investments | 51 | 137 |
Stock-based compensation expense, net of tax benefits | 453 | 347 |
Excess tax deficiencies from stock-based compensation | 14 | 97 |
Depreciation of premises and equipment | 2,685 | 2,338 |
Gain on sale of other real estate owned and writedowns, net | -524 | -202 |
Amortization of core deposit intangibles | 710 | 486 |
Net decrease (increase) in accrued interest receivable | 624 | -1,254 |
Net (increase) decrease in other assets | -4,927 | 8,100 |
Net decrease in accrued interest payable | -332 | -580 |
Net increase (decrease) in other liabilities | 4,751 | -1,565 |
Net cash provided by operating activities | 53,919 | 129,060 |
Investing Activities | ' | ' |
Sales of available-for-sale securities | 788 | 3,839 |
Maturities, prepayments and calls of available-for-sale securities | 138,272 | 573,462 |
Purchases of available-for-sale securities | -58,192 | -573,174 |
Maturities, prepayments and calls of held-to-maturity securities | 3,930 | 0 |
Purchases of held-to-maturity securities | -5,618 | 0 |
Principal collected on loans | 323,418 | 255,672 |
Loans originated or acquired | -358,240 | -289,693 |
Net addition of premises and equipment and other real estate owned | -1,771 | -2,654 |
Proceeds from sale of other real estate owned | 4,000 | 7,493 |
Net cash provided by (used in) investment activities | 46,587 | -25,055 |
Financing Activities | ' | ' |
Net increase in deposits | 44,498 | 8,754 |
Net increase in securities sold under agreements to repurchase | 13,928 | 22,997 |
Net decrease in Federal Home Loan Bank advances | -153,438 | -195,009 |
Net (decrease) increase in other borrowed funds | -283 | 280 |
Excess tax deficiencies from stock-based compensation | -14 | -97 |
Proceeds from stock options exercised | 837 | 1,087 |
Net cash used in financing activities | -94,472 | -161,988 |
Net increase (decrease) in cash and cash equivalents | 6,034 | -57,983 |
Cash and cash equivalents at beginning of period | 155,657 | 187,040 |
Cash and cash equivalents at end of period | 161,691 | 129,057 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest | 6,972 | 8,038 |
Cash paid during the period for income taxes | 818 | 100 |
Supplemental Disclosure of Non-Cash Investing Activities | ' | ' |
Transfer of investment securities from available-for-sale to held-to-maturity | 484,583 | 0 |
Sale and refinancing of other real estate owned | 157 | 611 |
Transfer of loans to other real estate owned | $4,105 | $6,683 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | ' | ||||||||||||
Nature of Operations and Summary of Significant Accounting Policies | |||||||||||||
General | |||||||||||||
Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individual and corporate customers in Montana, Idaho, Wyoming, Colorado, Utah and Washington through thirteen divisions of its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including transaction and savings deposits, real estate, commercial, agriculture and consumer loans and mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities. | |||||||||||||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of March 31, 2014, the results of operations and comprehensive income for the three month periods ended March 31, 2014 and 2013, and changes in stockholders’ equity and cash flows for the three month periods ended March 31, 2014 and 2013. The condensed consolidated statement of financial condition of the Company as of December 31, 2013 has been derived from the audited consolidated statements of the Company as of that date. | |||||||||||||
The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results anticipated for the year ending December 31, 2014. | |||||||||||||
The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. | |||||||||||||
Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”), 2) the valuations related to investments and real estate acquired in connection with foreclosures or in satisfaction of loans, and 3) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. | |||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements of the Company include the parent holding company and the Bank. The Bank consists of thirteen bank divisions, a treasury division and an information technology division. The treasury division includes the Bank’s investment security portfolio and wholesale borrowings and the information technology division includes the Bank’s internal data processing and information technology expenses. Each of the bank divisions operate under separate names, management teams and directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses, 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank, and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation. | |||||||||||||
In May 2013, the Company acquired Wheatland Bankshares, Inc. and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. In July 2013, the Company completed its acquisition of North Cascades Bancshares, Inc. and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. Both transactions were accounted for using the acquisition method, and their results of operations have been included in the Company’s consolidated financial statements as of the acquisition dates. | |||||||||||||
The Company formed GBCI Other Real Estate (“GORE”) to isolate certain bank foreclosed properties for legal protection and administrative purposes and the remaining properties are currently held for sale. GORE is included in the Bank operating segment due to its insignificant activity. | |||||||||||||
The Company owns the following trust subsidiaries, each of which issued trust preferred securities as Tier 1 capital instruments: Glacier Capital Trust II, Glacier Capital Trust III, Glacier Capital Trust IV, Citizens (ID) Statutory Trust I, Bank of the San Juans Bancorporation Trust I, First Company Statutory Trust 2001 and First Company Statutory Trust 2003. The trust subsidiaries are not included in the Company’s consolidated financial statements. | |||||||||||||
Variable Interest Entities | |||||||||||||
The Company has equity investments in Certified Development Entities (“CDE”) which have received allocations of New Markets Tax Credits (“NMTC”). The Company also has equity investments in Low-Income Housing Tax Credit (“LIHTC”) partnerships. The CDEs and the LIHTC partnerships are variable interest entities (“VIE”). | |||||||||||||
The following table summarizes the carrying amounts of the VIE’s assets and liabilities included in the Company’s consolidated financial statements at March 31, 2014 and December 31, 2013: | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Dollars in thousands) | CDE (NMTC) | LIHTC | CDE (NMTC) | LIHTC | |||||||||
Assets | |||||||||||||
Loans receivable | $ | 36,077 | — | 36,039 | — | ||||||||
Premises and equipment, net | — | 13,432 | — | 13,536 | |||||||||
Accrued interest receivable | 116 | — | 117 | — | |||||||||
Other assets | 780 | 153 | 843 | 153 | |||||||||
Total assets | $ | 36,973 | 13,585 | 36,999 | 13,689 | ||||||||
Liabilities | |||||||||||||
Other borrowed funds | $ | 4,555 | 1,690 | 4,555 | 1,723 | ||||||||
Accrued interest payable | 4 | 5 | 4 | 5 | |||||||||
Other liabilities | 152 | 87 | 151 | 189 | |||||||||
Total liabilities | $ | 4,711 | 1,782 | 4,710 | 1,917 | ||||||||
Amounts presented in the table above are adjusted for intercompany eliminations. All assets presented can be used only to settle obligations of the consolidated VIEs and all liabilities presented consist of liabilities for which creditors and other beneficial interest holders therein have no recourse to the general credit of the Company. | |||||||||||||
Loans Receivable | |||||||||||||
Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. | |||||||||||||
The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). | |||||||||||||
Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. | |||||||||||||
The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. | |||||||||||||
A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR: | |||||||||||||
• | Reduction of the stated interest rate for the remaining term of the debt; | ||||||||||||
• | Extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and | ||||||||||||
• | Reduction of the face amount of the debt as stated in the debt agreements. | ||||||||||||
The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example: | |||||||||||||
• | analysis of global, i.e., aggregate debt service for total debt obligations; | ||||||||||||
• | assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and | ||||||||||||
• | loan structures and related covenants. | ||||||||||||
For additional information relating to loans, see Note 3. | |||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||
Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about all known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. | |||||||||||||
Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: | |||||||||||||
Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. | |||||||||||||
Commercial Real Estate. Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and / or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. | |||||||||||||
Commercial. Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. | |||||||||||||
Home Equity. Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 15 years. | |||||||||||||
Other Consumer. The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. | |||||||||||||
The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. | |||||||||||||
The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. | |||||||||||||
The changes in trends and conditions evaluated for each class within the loan portfolio include the following: | |||||||||||||
• | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; | ||||||||||||
• | Changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; | ||||||||||||
• | Changes in the nature and volume of the portfolio and in the terms of loans; | ||||||||||||
• | Changes in experience, ability, and depth of lending management and other relevant staff; | ||||||||||||
• | Changes in the volume and severity of past due and nonaccrual loans; | ||||||||||||
• | Changes in the quality of the Company’s loan review system; | ||||||||||||
• | Changes in the value of underlying collateral for collateral-dependent loans; | ||||||||||||
• | The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and | ||||||||||||
• | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. | ||||||||||||
The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged-off as a reduction of the ALLL and recoveries of amounts previously charged-off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. | |||||||||||||
At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. | |||||||||||||
Impact of Recent Authoritative Accounting Guidance | |||||||||||||
The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. | |||||||||||||
In January 2014, FASB amended FASB ASC Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors. The amendment clarifies that an in substance repossession foreclosure occurs when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either 1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or 2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both 1) the amount of foreclosed residential real estate property held by the creditor and 2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendment is effective for public business entities for interim and annual periods beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method as defined in the amendment. The Company is currently evaluating the impact of the adoption of this amendment, but does not expect it to have a material effect on the Company’s financial position or results of operations. | |||||||||||||
In January 2014, FASB amended FASB ASC Topic 323, Investments - Equity Method and Joint Ventures. The amendments permit entities to make an accounting policy election for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The amendments should be applied retrospectively to all periods presented and are effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of the adoption of the amendments, but does not expect them to have a material effect on the Company’s financial position or results of operations. |
Investment_Securities
Investment Securities | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||
Investment Securities | |||||||||||||||||||
Effective January 1, 2014, the Company reclassified state and local government securities with a fair value of approximately $484,583,000, inclusive of a net unrealized gain of $4,624,000, from available-for-sale classification to held-to-maturity classification. The Company considers the held-to-maturity classification of these investment securities to be appropriate as it has the positive intent and ability to hold these securities to maturity. | |||||||||||||||||||
The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s investment securities: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||
(Dollars in thousands) | Gains | Losses | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 9,792 | 150 | — | 9,942 | ||||||||||||||
State and local governments | 902,464 | 27,337 | (8,351 | ) | 921,450 | ||||||||||||||
Corporate bonds | 431,831 | 4,567 | (713 | ) | 435,685 | ||||||||||||||
Residential mortgage-backed securities 1 | 1,296,529 | 12,512 | (6,938 | ) | 1,302,103 | ||||||||||||||
Total available-for-sale | 2,640,616 | 44,566 | (16,002 | ) | 2,669,180 | ||||||||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | 481,476 | 23,505 | (6,079 | ) | 498,902 | ||||||||||||||
Total held-to-maturity | 481,476 | 23,505 | (6,079 | ) | 498,902 | ||||||||||||||
Total investment securities | $ | 3,122,092 | 68,071 | (22,081 | ) | 3,168,082 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||
(Dollars in thousands) | Gains | Losses | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 10,441 | 187 | — | 10,628 | ||||||||||||||
State and local governments | 1,377,347 | 31,621 | (23,890 | ) | 1,385,078 | ||||||||||||||
Corporate bonds | 440,337 | 3,922 | (1,758 | ) | 442,501 | ||||||||||||||
Residential mortgage-backed securities 1 | 1,380,816 | 14,071 | (10,265 | ) | 1,384,622 | ||||||||||||||
Total available-for-sale | 3,208,941 | 49,801 | (35,913 | ) | 3,222,829 | ||||||||||||||
Total investment securities | $ | 3,208,941 | 49,801 | (35,913 | ) | 3,222,829 | |||||||||||||
________ | |||||||||||||||||||
1 Residential mortgage-backed securities are obligations of U.S. government sponsored enterprises and include collateralized mortgage obligations. | |||||||||||||||||||
The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at March 31, 2014. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Carrying Value | Fair Value | |||||||||||||||
Due within one year | $ | 110,456 | 111,108 | — | — | ||||||||||||||
Due after one year through five years | 510,168 | 516,571 | — | — | |||||||||||||||
Due after five years through ten years | 61,297 | 61,933 | — | — | |||||||||||||||
Due after ten years | 662,166 | 677,465 | 481,476 | 498,902 | |||||||||||||||
1,344,087 | 1,367,077 | 481,476 | 498,902 | ||||||||||||||||
Residential mortgage-backed securities 1 | 1,296,529 | 1,302,103 | — | — | |||||||||||||||
Total | $ | 2,640,616 | 2,669,180 | 481,476 | 498,902 | ||||||||||||||
________ | |||||||||||||||||||
1 Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. | |||||||||||||||||||
Gain or loss on sale of investment securities consists of the following: | |||||||||||||||||||
Three Months ended | |||||||||||||||||||
(Dollars in thousands) | March 31, | March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Available-for-sale | |||||||||||||||||||
Gross proceeds | $ | 11,927 | 3,839 | ||||||||||||||||
Less amortized cost 1 | (12,000 | ) | (3,976 | ) | |||||||||||||||
Net loss on sale of available-for-sale investment securities | $ | (73 | ) | (137 | ) | ||||||||||||||
Gross gain on sale of investments | $ | 21 | — | ||||||||||||||||
Gross loss on sale of investments | (94 | ) | (137 | ) | |||||||||||||||
Net loss on sale of available-for-sale investment securities | $ | (73 | ) | (137 | ) | ||||||||||||||
Held-to-maturity 2 | |||||||||||||||||||
Gross proceeds | $ | 3,930 | — | ||||||||||||||||
Less amortized cost 1 | (3,908 | ) | — | ||||||||||||||||
Net gain on sale of held-to-maturity investment securities | $ | 22 | — | ||||||||||||||||
Gross gain on sale of investments | $ | 22 | — | ||||||||||||||||
Gross loss on sale of investments | — | — | |||||||||||||||||
Net gain on sale of held-to-maturity investment securities | $ | 22 | — | ||||||||||||||||
__________ | |||||||||||||||||||
1 The cost of each investment security sold is determined by specific identification. | |||||||||||||||||||
2 The gain or loss on sale of held-to-maturity investment securities is solely due to securities that were partially or wholly called. | |||||||||||||||||||
Investment securities with an unrealized loss position are summarized as follows: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 25 | — | — | — | 25 | — | ||||||||||||
State and local governments | 155,418 | (4,861 | ) | 77,090 | (3,490 | ) | 232,508 | (8,351 | ) | ||||||||||
Corporate bonds | 65,131 | (536 | ) | 17,722 | (177 | ) | 82,853 | (713 | ) | ||||||||||
Residential mortgage-backed securities | 273,531 | (4,109 | ) | 132,600 | (2,829 | ) | 406,131 | (6,938 | ) | ||||||||||
Total available-for-sale | $ | 494,105 | (9,506 | ) | 227,412 | (6,496 | ) | 721,517 | (16,002 | ) | |||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | $ | 19,803 | (979 | ) | 75,916 | (5,100 | ) | 95,719 | (6,079 | ) | |||||||||
Total held-to-maturity | $ | 19,803 | (979 | ) | 75,916 | (5,100 | ) | 95,719 | (6,079 | ) | |||||||||
31-Dec-13 | |||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 3 | — | — | — | 3 | — | ||||||||||||
State and local governments | 408,812 | (17,838 | ) | 74,161 | (6,052 | ) | 482,973 | (23,890 | ) | ||||||||||
Corporate bonds | 129,515 | (1,672 | ) | 1,702 | (86 | ) | 131,217 | (1,758 | ) | ||||||||||
Residential mortgage-backed securities | 457,611 | (10,226 | ) | 1,993 | (39 | ) | 459,604 | (10,265 | ) | ||||||||||
Total available-for-sale | $ | 995,941 | (29,736 | ) | 77,856 | (6,177 | ) | 1,073,797 | (35,913 | ) | |||||||||
Based on an analysis of its investment securities with unrealized losses as of March 31, 2014 and December 31, 2013, the Company determined that none of such securities had other-than-temporary impairment and the unrealized losses were primarily the result of interest rate changes and market spreads subsequent to acquisition. The fair value of the investment securities is expected to recover as payments are received and the securities approach maturity. At March 31, 2014, management determined that it did not intend to sell investment securities with unrealized losses, and there was no expected requirement to sell any of its investment securities with unrealized losses before recovery of their amortized cost. |
Loans_Receivable_Net
Loans Receivable, Net | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||
Loans Receivable, Net | ' | ||||||||||||||||||
Loans Receivable, Net | |||||||||||||||||||
The Company’s loan portfolio is comprised of three segments: residential real estate, commercial and consumer and other loans. The loan segments are further disaggregated into the following classes: residential real estate, commercial real estate, other commercial, home equity and other consumer loans. The following tables are presented for each portfolio class of loans receivable and provide information about the ALLL, loans receivable, impaired loans and TDRs. | |||||||||||||||||||
The following schedules summarize the activity in the ALLL: | |||||||||||||||||||
Three Months ended March 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Balance at beginning of period | $ | 130,351 | 14,067 | 70,332 | 28,630 | 9,299 | 8,023 | ||||||||||||
Provision for loan losses | 1,122 | (178 | ) | 40 | 933 | 203 | 124 | ||||||||||||
Charge-offs | (1,586 | ) | (36 | ) | (181 | ) | (1,163 | ) | (113 | ) | (93 | ) | |||||||
Recoveries | 842 | 213 | 380 | 84 | 37 | 128 | |||||||||||||
Balance at end of period | $ | 130,729 | 14,066 | 70,571 | 28,484 | 9,426 | 8,182 | ||||||||||||
Three Months ended March 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Balance at beginning of period | $ | 130,854 | 15,482 | 74,398 | 21,567 | 10,659 | 8,748 | ||||||||||||
Provision for loan losses | 2,100 | 23 | (952 | ) | 1,699 | 1,457 | (127 | ) | |||||||||||
Charge-offs | (3,614 | ) | (177 | ) | (765 | ) | (1,158 | ) | (1,338 | ) | (176 | ) | |||||||
Recoveries | 1,495 | 83 | 654 | 373 | 55 | 330 | |||||||||||||
Balance at end of period | $ | 130,835 | 15,411 | 73,335 | 22,481 | 10,833 | 8,775 | ||||||||||||
The following schedules disclose the ALLL and loans receivable: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Individually evaluated for impairment | $ | 10,236 | 699 | 3,429 | 4,731 | 167 | 1,210 | ||||||||||||
Collectively evaluated for impairment | 120,493 | 13,367 | 67,142 | 23,753 | 9,259 | 6,972 | |||||||||||||
Total allowance for loan and lease losses | $ | 130,729 | 14,066 | 70,571 | 28,484 | 9,426 | 8,182 | ||||||||||||
Loans receivable | |||||||||||||||||||
Individually evaluated for impairment | $ | 192,184 | 21,420 | 118,724 | 37,029 | 8,922 | 6,089 | ||||||||||||
Collectively evaluated for impairment | 3,896,445 | 558,886 | 1,952,308 | 820,934 | 354,190 | 210,127 | |||||||||||||
Total loans receivable | $ | 4,088,629 | 580,306 | 2,071,032 | 857,963 | 363,112 | 216,216 | ||||||||||||
31-Dec-13 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Individually evaluated for impairment | $ | 11,949 | 990 | 3,763 | 6,155 | 265 | 776 | ||||||||||||
Collectively evaluated for impairment | 118,402 | 13,077 | 66,569 | 22,475 | 9,034 | 7,247 | |||||||||||||
Total allowance for loan and lease losses | $ | 130,351 | 14,067 | 70,332 | 28,630 | 9,299 | 8,023 | ||||||||||||
Loans receivable | |||||||||||||||||||
Individually evaluated for impairment | $ | 199,680 | 24,070 | 119,526 | 41,504 | 9,039 | 5,541 | ||||||||||||
Collectively evaluated for impairment | 3,863,158 | 553,519 | 1,929,721 | 810,532 | 357,426 | 211,960 | |||||||||||||
Total loans receivable | $ | 4,062,838 | 577,589 | 2,049,247 | 852,036 | 366,465 | 217,501 | ||||||||||||
Substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas. Net deferred fees, costs, premiums, and discounts of $7,746,000 and $10,662,000 were included in the loans receivable balance at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||
The following schedules disclose the impaired loans: | |||||||||||||||||||
At or for the Three Months ended March 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 59,876 | 6,083 | 27,047 | 22,794 | 1,104 | 2,848 | ||||||||||||
Unpaid principal balance | 61,145 | 6,277 | 27,762 | 22,975 | 1,190 | 2,941 | |||||||||||||
Specific valuation allowance | 10,236 | 699 | 3,429 | 4,731 | 167 | 1,210 | |||||||||||||
Average balance | 60,689 | 6,658 | 25,482 | 24,904 | 995 | 2,650 | |||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 132,308 | 15,337 | 91,677 | 14,235 | 7,818 | 3,241 | ||||||||||||
Unpaid principal balance | 163,353 | 16,361 | 115,489 | 18,882 | 9,274 | 3,347 | |||||||||||||
Average balance | 135,243 | 16,087 | 93,643 | 14,362 | 7,986 | 3,165 | |||||||||||||
Totals | |||||||||||||||||||
Recorded balance | $ | 192,184 | 21,420 | 118,724 | 37,029 | 8,922 | 6,089 | ||||||||||||
Unpaid principal balance | 224,498 | 22,638 | 143,251 | 41,857 | 10,464 | 6,288 | |||||||||||||
Specific valuation allowance | 10,236 | 699 | 3,429 | 4,731 | 167 | 1,210 | |||||||||||||
Average balance | 195,932 | 22,745 | 119,125 | 39,266 | 8,981 | 5,815 | |||||||||||||
At or for the Year ended December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 61,503 | 7,233 | 23,917 | 27,015 | 886 | 2,452 | ||||||||||||
Unpaid principal balance | 63,406 | 7,394 | 25,331 | 27,238 | 949 | 2,494 | |||||||||||||
Specific valuation allowance | 11,949 | 990 | 3,763 | 6,155 | 265 | 776 | |||||||||||||
Average balance | 59,823 | 7,237 | 26,105 | 22,460 | 767 | 3,254 | |||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 138,177 | 16,837 | 95,609 | 14,489 | 8,153 | 3,089 | ||||||||||||
Unpaid principal balance | 169,082 | 18,033 | 119,017 | 19,156 | 9,631 | 3,245 | |||||||||||||
Average balance | 139,129 | 18,103 | 95,808 | 14,106 | 8,844 | 2,268 | |||||||||||||
Totals | |||||||||||||||||||
Recorded balance | $ | 199,680 | 24,070 | 119,526 | 41,504 | 9,039 | 5,541 | ||||||||||||
Unpaid principal balance | 232,488 | 25,427 | 144,348 | 46,394 | 10,580 | 5,739 | |||||||||||||
Specific valuation allowance | 11,949 | 990 | 3,763 | 6,155 | 265 | 776 | |||||||||||||
Average balance | 198,952 | 25,340 | 121,913 | 36,566 | 9,611 | 5,522 | |||||||||||||
Interest income recognized on impaired loans for the periods ended March 31, 2014 and December 31, 2013 was not significant. | |||||||||||||||||||
The following is a loans receivable aging analysis: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Accruing loans 30-59 days past due | $ | 37,787 | 12,313 | 14,823 | 7,135 | 2,425 | 1,091 | ||||||||||||
Accruing loans 60-89 days past due | 5,075 | 1,043 | 2,183 | 1,245 | 186 | 418 | |||||||||||||
Accruing loans 90 days or more past due | 569 | 146 | 256 | 66 | 68 | 33 | |||||||||||||
Non-accrual loans | 78,905 | 8,439 | 51,614 | 8,640 | 7,875 | 2,337 | |||||||||||||
Total past due and non-accrual loans | 122,336 | 21,941 | 68,876 | 17,086 | 10,554 | 3,879 | |||||||||||||
Current loans receivable | 3,966,293 | 558,365 | 2,002,156 | 840,877 | 352,558 | 212,337 | |||||||||||||
Total loans receivable | $ | 4,088,629 | 580,306 | 2,071,032 | 857,963 | 363,112 | 216,216 | ||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Accruing loans 30-59 days past due | $ | 25,761 | 10,367 | 7,016 | 3,673 | 2,432 | 2,273 | ||||||||||||
Accruing loans 60-89 days past due | 6,355 | 1,055 | 2,709 | 1,421 | 668 | 502 | |||||||||||||
Accruing loans 90 days or more past due | 604 | 429 | — | 160 | 5 | 10 | |||||||||||||
Non-accrual loans | 81,956 | 10,702 | 51,438 | 10,139 | 7,950 | 1,727 | |||||||||||||
Total past due and non-accrual loans | 114,676 | 22,553 | 61,163 | 15,393 | 11,055 | 4,512 | |||||||||||||
Current loans receivable | 3,948,162 | 555,036 | 1,988,084 | 836,643 | 355,410 | 212,989 | |||||||||||||
Total loans receivable | $ | 4,062,838 | 577,589 | 2,049,247 | 852,036 | 366,465 | 217,501 | ||||||||||||
The following is a summary of the TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: | |||||||||||||||||||
Three Months ended March 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 13 | — | 5 | 7 | 1 | — | |||||||||||||
Pre-modification recorded balance | $ | 5,110 | — | 2,475 | 2,439 | 196 | — | ||||||||||||
Post-modification recorded balance | $ | 4,481 | — | 2,475 | 1,810 | 196 | — | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 2 | — | — | 2 | — | — | |||||||||||||
Recorded balance | $ | 42 | — | — | 42 | — | — | ||||||||||||
Three Months ended March 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 24 | 7 | 9 | 7 | — | 1 | |||||||||||||
Pre-modification recorded balance | $ | 6,250 | 1,358 | 3,316 | 1,505 | — | 71 | ||||||||||||
Post-modification recorded balance | $ | 6,591 | 1,699 | 3,316 | 1,505 | — | 71 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 5 | — | 3 | 1 | — | 1 | |||||||||||||
Recorded balance | $ | 1,109 | — | 1,052 | 12 | — | 45 | ||||||||||||
During the three months ended March 31, 2014, 29 percent of the modifications were due to extensions of maturity dates and 39 percent were due to a combination of interest rate reductions, extensions of maturity dates, or reductions in the face amount. For commercial real estate, the class with the largest dollar amount of TDRs, approximately 81 percent of the modifications were due to a combination of interest rate reductions, extension of maturity dates, or reductions in the face amount. During the three months ended March 31, 2013, 43 percent of modifications were due to extensions of maturity dates and 29 percent were due to a combination of interest rate reductions, extensions of maturity dates, or reductions in the face amount. For commercial real estate, 29 percent of the modifications were due to to extensions of maturity dates and 30 percent were due to a combination of interest rate reductions, extension of maturity dates, or reductions in the face amount. | |||||||||||||||||||
In addition to the TDRs that occurred during the period provided in the preceding table, the Company had TDRs with pre-modification loan balances of $4,413,000 and $7,186,000 for the three months ended March 31, 2014 and 2013, respectively, for which other real estate owned (“OREO”) was received in full or partial satisfaction of the loans. The majority of such TDRs were in residential real estate and commercial real estate for the three months ended March 31, 2014 and 2013, respectively. |
Goodwill
Goodwill | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||
Goodwill | ' | ||||||
Goodwill | |||||||
The Company performed its annual goodwill impairment test during the third quarter of 2013 and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. In recognition there were no events or circumstances that occurred since the third quarter of 2013 that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value, the Company did not perform interim testing at March 31, 2014. However, changes in the economic environment, operations of the aggregated reporting units, or other factors could result in the decline in the fair value of the aggregated reporting units which could result in a goodwill impairment in the future. | |||||||
There were no changes in the carrying value of goodwill during the three months ended March 31, 2014 and 2013. The gross carrying value of goodwill and the accumulated impairment charge consists of the following: | |||||||
(Dollars in thousands) | March 31, | December 31, | |||||
2014 | 2013 | ||||||
Gross carrying value | $ | 169,865 | 169,865 | ||||
Accumulated impairment charge | (40,159 | ) | (40,159 | ) | |||
Net carrying value | $ | 129,706 | 129,706 | ||||
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Derivatives and Hedging Activities | ' | ||||||||||||||||||
Derivatives and Hedging Activities | |||||||||||||||||||
As of March 31, 2014, the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows: | |||||||||||||||||||
(Dollars in thousands) | Forecasted | Variable | Fixed | Term 2 | |||||||||||||||
Notional Amount | Interest Rate 1 | Interest Rate 1 | |||||||||||||||||
Interest rate swap | $ | 160,000 | 3 month LIBOR | 3.378 | % | Oct. 21, 2014 - Oct. 21, 2021 | |||||||||||||
Interest rate swap | 100,000 | 3 month LIBOR | 2.498 | % | Nov 30, 2015 - Nov. 30, 2022 | ||||||||||||||
__________ | |||||||||||||||||||
1 The Company pays the fixed interest rate and the counterparties pay the Company the variable interest rate. | |||||||||||||||||||
2 No cash will be exchanged prior to the term. | |||||||||||||||||||
The hedging strategy converts the LIBOR based variable interest rate on forecasted borrowings to a fixed interest rate, thereby protecting the Company from floating interest rate variability. | |||||||||||||||||||
The following table discloses the offsetting of financial assets and interest rate swap derivative assets: | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Assets Presented in the Statements of Financial Position | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Assets Presented in the Statements of Financial Position | |||||||||||||
Interest rate swaps | $ | 4,502 | (4,502 | ) | — | 6,844 | (4,948 | ) | 1,896 | ||||||||||
The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities: | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Liabilities Presented in the Statements of Financial Position | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Liabilities Presented in the Statements of Financial Position | |||||||||||||
Interest rate swaps | $ | 8,085 | (4,502 | ) | 3,583 | 4,948 | (4,948 | ) | — | ||||||||||
Pursuant to the interest rate swap agreements, the Company pledged collateral to the counterparties in the form of investment securities totaling $6,200,000 at March 31, 2014. There was $0 collateral pledged from the counterparties to the Company as of March 31, 2014. There is the possibility that the Company may need to pledge additional collateral in the future if there were declines in the fair value of the interest rate swap derivative financial instruments versus the collateral pledged. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Equity [Abstract] | ' | ||||||
Accumulated Other Comprehensive Income | ' | ||||||
Accumulated Other Comprehensive Income | |||||||
The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: | |||||||
(Dollars in thousands) | March 31, | December 31, | |||||
2014 | 2013 | ||||||
Unrealized gains on available-for-sale securities | $ | 28,564 | 13,888 | ||||
Tax effect | (11,083 | ) | (5,403 | ) | |||
Net of tax amount | 17,481 | 8,485 | |||||
Unrealized (losses) gains on derivatives used for cash flow hedges | (3,583 | ) | 1,896 | ||||
Tax effect | 1,390 | (736 | ) | ||||
Net of tax amount | (2,193 | ) | 1,160 | ||||
Total accumulated other comprehensive income | $ | 15,288 | 9,645 | ||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Earnings Per Share | ' | ||||||
Earnings Per Share | |||||||
Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period presented. Diluted earnings per share is computed by including the net increase in shares as if dilutive outstanding stock options were exercised and restricted stock awards were vested, using the treasury stock method. | |||||||
Basic and diluted earnings per share has been computed based on the following: | |||||||
Three Months ended | |||||||
(Dollars in thousands, except per share data) | March 31, | March 31, | |||||
2014 | 2013 | ||||||
Net income available to common stockholders, basic and diluted | $ | 26,730 | 20,768 | ||||
Average outstanding shares - basic | 74,437,393 | 71,965,665 | |||||
Add: dilutive stock options and awards | 43,425 | 47,512 | |||||
Average outstanding shares - diluted | 74,480,818 | 72,013,177 | |||||
Basic earnings per share | $ | 0.36 | 0.29 | ||||
Diluted earnings per share | $ | 0.36 | 0.29 | ||||
There were 0 and 152,559 options excluded from the diluted average outstanding share calculation for the three months ended March 31, 2014 and 2013, respectively, due to the option exercise price exceeding the market price of the Company’s common stock. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value of Assets and Liabilities | ' | ||||||||||||
Fair Value of Assets and Liabilities | |||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. There is a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are as follows: | |||||||||||||
Level 1 Quoted prices in active markets for identical assets or liabilities | |||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | ||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||||||
Transfers in and out of Level 1 (quoted prices in active markets), Level 2 (significant other observable inputs) and Level 3 (significant unobservable inputs) are recognized on the actual transfer date. There were no transfers between fair value hierarchy levels during the three month periods ended March 31, 2014 and 2013. | |||||||||||||
Recurring Measurements | |||||||||||||
The following is a description of the inputs and valuation methodologies used for assets and liabilities measured at fair value on a recurring basis, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended March 31, 2014. | |||||||||||||
Investment securities, available-for-sale: fair value for available-for-sale securities is estimated by obtaining quoted market prices for identical assets, where available. If such prices are not available, fair value is based on independent asset pricing services and models, the inputs of which are market-based or independently sourced market parameters, including but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections, and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. Where Level 1 or Level 2 inputs are not available, such securities are classified as Level 3 within the hierarchy. | |||||||||||||
Fair value determinations of available-for-sale securities are the responsibility of the Company’s corporate accounting and treasury departments. The Company obtains fair value estimates from independent third party vendors on a monthly basis. The Company reviews the vendors’ inputs for fair value estimates and the recommended assignments of levels within the fair value hierarchy. The review includes the extent to which markets for investment securities are determined to have limited or no activity, or are judged to be active markets. The Company reviews the extent to which observable and unobservable inputs are used as well as the appropriateness of the underlying assumptions about risk that a market participant would use in active markets, with adjustments for limited or inactive markets. In considering the inputs to the fair value estimates, the Company places less reliance on quotes that are judged to not reflect orderly transactions, or are non-binding indications. In assessing credit risk, the Company reviews payment performance, collateral adequacy, third party research and analyses, credit rating histories and issuers’ financial statements. For those markets determined to be inactive or limited, the valuation techniques used are models for which management has verified that discount rates are appropriately adjusted to reflect illiquidity and credit risk. The Company also independently obtains cash flow estimates that are stressed at levels that exceed those used by the independent third party pricing vendors. | |||||||||||||
Interest rate swap derivative financial instruments: fair values for interest rate swap derivative financial instruments are based upon the estimated amounts to settle the contracts considering current interest rates and are calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The inputs used to determine fair value include the 3 month LIBOR forward curve to estimate variable rate cash inflows and the Fed Funds Effective Swap Rate to estimate the discount rate. The estimated variable rate cash inflows are compared to the fixed rate outflows and such difference is discounted to a present value to estimate the fair value of the interest rate swaps. The Company also obtains and compares the reasonableness of the pricing from an independent third party. | |||||||||||||
The following schedules disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis: | |||||||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value March 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Investment securities, available-for-sale | |||||||||||||
U.S. government sponsored enterprises | $ | 9,942 | — | 9,942 | — | ||||||||
State and local governments | 921,450 | — | 921,450 | — | |||||||||
Corporate bonds | 435,685 | — | 435,685 | — | |||||||||
Residential mortgage-backed securities | 1,302,103 | — | 1,302,103 | — | |||||||||
Total assets measured at fair value on a recurring basis | $ | 2,669,180 | — | 2,669,180 | — | ||||||||
Interest rate swaps | $ | 3,583 | — | 3,583 | — | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | 3,583 | — | 3,583 | — | ||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Investment securities, available-for-sale | |||||||||||||
U.S. government sponsored enterprises | $ | 10,628 | — | 10,628 | — | ||||||||
State and local governments | 1,385,078 | — | 1,385,078 | — | |||||||||
Corporate bonds | 442,501 | — | 442,501 | — | |||||||||
Residential mortgage-backed securities | 1,384,622 | — | 1,384,622 | — | |||||||||
Interest rate swaps | 1,896 | — | 1,896 | — | |||||||||
Total assets measured at fair value on a recurring basis | $ | 3,224,725 | — | 3,224,725 | — | ||||||||
Non-recurring Measurements | |||||||||||||
The following is a description of the inputs and valuation methodologies used for assets recorded at fair value on a non-recurring basis, 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 period ended March 31, 2014. | |||||||||||||
Other real estate owned: OREO is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell. Estimated fair value of OREO is based on appraisals or evaluations (new or updated). OREO is classified within Level 3 of the fair value hierarchy. | |||||||||||||
Collateral-dependent impaired loans, net of ALLL: loans included in the Company’s loan portfolio for which it is probable that the Company will not collect all principal and interest due according to contractual terms are considered impaired. Estimated fair value of collateral-dependent impaired loans is based on the fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. | |||||||||||||
The Company’s credit departments review appraisals for OREO and collateral-dependent loans, giving consideration to the highest and best use of the collateral. The appraisal or evaluation (new or updated) is considered the starting point for determining fair value. The valuation techniques used in preparing appraisals or evaluations (new or updated) include the cost approach, income approach, sales comparison approach, or a combination of the preceding valuation techniques. The key inputs used to determine the fair value of the collateral-dependent loans and OREO include selling costs, discounted cash flow rate or capitalization rate, and adjustment to comparables. Valuations and significant inputs obtained by independent sources are reviewed by the Company for accuracy and reasonableness. The Company also considers other factors and events in the environment that may affect the fair value. The appraisals or evaluations (new or updated) are reviewed at least quarterly and more frequently based on current market conditions, including deterioration in a borrower’s financial condition and when property values may be subject to significant volatility. After review and acceptance of the collateral appraisal or evaluation (new or updated), adjustments to the impaired loan or OREO may occur. The Company generally obtains appraisals or evaluations (new or updated) annually. | |||||||||||||
The following schedules disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: | |||||||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value March 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Other real estate owned | $ | 971 | — | — | 971 | ||||||||
Collateral-dependent impaired loans, net of ALLL | 17,567 | — | — | 17,567 | |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 18,538 | — | — | 18,538 | ||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Other real estate owned | $ | 10,888 | — | — | 10,888 | ||||||||
Collateral-dependent impaired loans, net of ALLL | 18,670 | — | — | 18,670 | |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 29,558 | — | — | 29,558 | ||||||||
Non-recurring Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||
Fair Value March 31, 2014 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | Valuation Technique | Unobservable Input | Range (Weighted Average) 1 | ||||||||||
Other real estate owned | $ | 191 | Sales comparison approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||||
780 | Combined approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||||||
Discount rate | 10.0% - 10.0% (10.0%) | ||||||||||||
$ | 971 | ||||||||||||
Collateral-dependent impaired loans, net of ALLL | $ | 4,078 | Income approach | Selling costs | 8.0% - 8.0% (8.0%) | ||||||||
Discount rate | 8.3% - 8.3% (8.3%) | ||||||||||||
10,795 | Sales comparison approach | Selling costs | 0.0% - 10.0% (8.0%) | ||||||||||
2,694 | Combined approach | Selling costs | 8.0% - 8.0% (8.0%) | ||||||||||
Discount rate | 7.3% - 7.3% (7.3%) | ||||||||||||
Adjustment to comparables | 0.0% - 10.0% (5.6%) | ||||||||||||
$ | 17,567 | ||||||||||||
Fair Value December 31, 2013 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | Valuation Technique | Unobservable Input | Range (Weighted- Average) 1 | ||||||||||
Other real estate owned | $ | 9,278 | Sales comparison approach | Selling costs | 7.0% - 10.0% (7.7%) | ||||||||
Adjustment to comparables | 0.0% - 37.5% (1.4%) | ||||||||||||
1,610 | Combined approach | Selling costs | 5.0% - 10.0% (7.5%) | ||||||||||
Discount rate | 8.5% - 8.5% (8.5%) | ||||||||||||
Adjustment to comparables | 25.0% - 25.0% (25.0%) | ||||||||||||
$ | 10,888 | ||||||||||||
Collateral-dependent impaired loans, net of ALLL | $ | 4,076 | Income approach | Selling costs | 8.0% - 8.0% (8.0%) | ||||||||
Discount rate | 8.3% - 8.3% (8.3%) | ||||||||||||
11,784 | Sales comparison approach | Selling costs | 0.0% - 10.0% (7.9%) | ||||||||||
Adjustment to comparables | 0.0% - 1.0% (0.0%) | ||||||||||||
2,810 | Combined approach | Selling costs | 0.0% - 8.0% (7.8%) | ||||||||||
Discount rate | 7.3% - 7.3% (7.3%) | ||||||||||||
Adjustment to comparables | 10.0% - 50.0% (18.9%) | ||||||||||||
$ | 18,670 | ||||||||||||
__________ | |||||||||||||
1 The range for selling costs and adjustments to comparables indicate reductions to the fair value. | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The following is a description of the methods used to estimate the fair value of all other assets and liabilities recognized at amounts other than fair value. | |||||||||||||
Cash and cash equivalents: fair value is estimated at book value. | |||||||||||||
Investment securities, held-to-maturity: fair value for held-to-maturity securities is estimated in the same manner as available-for-sale securities, which is described above. | |||||||||||||
Loans held for sale: fair value is estimated at book value. | |||||||||||||
Loans receivable, net of ALLL: fair value is estimated by discounting the future cash flows using the rates at which similar notes would be written for the same remaining maturities. The market rates used are based on current rates the Company would impose for similar loans and reflect a market participant assumption about risks associated with non-performance, illiquidity, and the structure and term of the loans along with local economic and market conditions. Estimated fair value of impaired loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All impaired loans are classified as Level 3 and all other loans are classified as Level 2 within the valuation hierarchy. | |||||||||||||
Accrued interest receivable: fair value is estimated at book value. | |||||||||||||
Non-marketable equity securities: fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities. | |||||||||||||
Deposits: fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from an independent third party and reviewed by the Company. The rates were the average of current rates offered by the Company’s local competitors. The estimated fair value of demand, NOW, savings, and money market deposits is the book value since rates are regularly adjusted to market rates and transactions are executed at book value daily. Therefore, such deposits are classified in Level 1 of the valuation hierarchy. Certificate accounts and wholesale deposits are classified as Level 2 within the hierarchy. | |||||||||||||
FHLB advances: fair value of non-callable FHLB advances is estimated by discounting the future cash flows using rates of similar advances with similar maturities. Such rates were obtained from current rates offered by FHLB. The estimated fair value of callable FHLB advances was obtained from FHLB and the model was reviewed by the Company, including discussions with FHLB. | |||||||||||||
Repurchase agreements and other borrowed funds: fair value of term repurchase agreements and other term borrowings is estimated based on current repurchase rates and borrowing rates currently available to the Company for repurchases and borrowings with similar terms and maturities. The estimated fair value for overnight repurchase agreements and other borrowings is book value. | |||||||||||||
Subordinated debentures: fair value of the subordinated debt is estimated by discounting the estimated future cash flows using current estimated market rates. The market rates used were averages of currently traded trust preferred securities with similar characteristics to the Company’s issuances and obtained from an independent third party. | |||||||||||||
Accrued interest payable: fair value is estimated at book value. | |||||||||||||
Off-balance sheet financial instruments: commitments to extend credit and letters of credit represent the principal categories of off-balance sheet financial instruments. Rates for these commitments are set at time of loan closing, such that no adjustment is necessary to reflect these commitments at market value. The Company has an insignificant amount of off-balance sheet financial instruments. | |||||||||||||
The following schedules present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: | |||||||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Carrying Amount March 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Financial assets | |||||||||||||
Cash and cash equivalents | $ | 161,691 | 161,691 | — | — | ||||||||
Investment securities, available-for-sale | 2,669,180 | — | 2,669,180 | — | |||||||||
Investment securities, held-to-maturity | 481,476 | — | 498,902 | — | |||||||||
Loans held for sale | 36,133 | 36,133 | — | — | |||||||||
Loans receivable, net of ALLL | 3,957,900 | — | 3,840,131 | 181,948 | |||||||||
Accrued interest receivable | 41,274 | 41,274 | — | — | |||||||||
Non-marketable equity securities | 52,192 | — | 52,192 | — | |||||||||
Total financial assets | $ | 7,399,846 | 239,098 | 7,060,405 | 181,948 | ||||||||
Financial liabilities | |||||||||||||
Deposits | $ | 5,624,465 | 4,315,105 | 1,314,661 | — | ||||||||
FHLB advances | 686,744 | — | 703,287 | — | |||||||||
Repurchase agreements and other borrowed funds | 335,391 | — | 335,391 | — | |||||||||
Subordinated debentures | 125,597 | — | 68,673 | — | |||||||||
Accrued interest payable | 3,173 | 3,173 | — | — | |||||||||
Interest rate swaps | 3,583 | — | 3,583 | — | |||||||||
Total financial liabilities | $ | 6,778,953 | 4,318,278 | 2,425,595 | — | ||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Carrying Amount December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Financial assets | |||||||||||||
Cash and cash equivalents | $ | 155,657 | 155,657 | — | — | ||||||||
Investment securities, available-for-sale | 3,222,829 | — | 3,222,829 | — | |||||||||
Loans held for sale | 46,738 | 46,738 | — | — | |||||||||
Loans receivable, net of ALLL | 3,932,487 | — | 3,807,993 | 187,731 | |||||||||
Accrued interest receivable | 41,898 | 41,898 | — | — | |||||||||
Non-marketable equity securities | 52,192 | — | 52,192 | — | |||||||||
Interest rate swaps | 1,896 | — | 1,896 | — | |||||||||
Total financial assets | $ | 7,453,697 | 244,293 | 7,084,910 | 187,731 | ||||||||
Financial liabilities | |||||||||||||
Deposits | $ | 5,579,967 | 4,258,213 | 1,341,382 | — | ||||||||
FHLB advances | 840,182 | — | 857,551 | — | |||||||||
Repurchase agreements and other borrowed funds | 321,781 | — | 321,781 | — | |||||||||
Subordinated debentures | 125,562 | — | 71,501 | — | |||||||||
Accrued interest payable | 3,505 | 3,505 | — | — | |||||||||
Total financial liabilities | $ | 6,870,997 | 4,261,718 | 2,592,215 | — | ||||||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
General | ' | ||||||||||||
General | |||||||||||||
Glacier Bancorp, Inc. (“Company”) is a Montana corporation headquartered in Kalispell, Montana. The Company provides a full range of banking services to individual and corporate customers in Montana, Idaho, Wyoming, Colorado, Utah and Washington through thirteen divisions of its wholly-owned bank subsidiary, Glacier Bank (“Bank”). The Company offers a wide range of banking products and services, including transaction and savings deposits, real estate, commercial, agriculture and consumer loans and mortgage origination services. The Company serves individuals, small to medium-sized businesses, community organizations and public entities. | |||||||||||||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of March 31, 2014, the results of operations and comprehensive income for the three month periods ended March 31, 2014 and 2013, and changes in stockholders’ equity and cash flows for the three month periods ended March 31, 2014 and 2013. The condensed consolidated statement of financial condition of the Company as of December 31, 2013 has been derived from the audited consolidated statements of the Company as of that date. | |||||||||||||
The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results anticipated for the year ending December 31, 2014. | |||||||||||||
The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. | |||||||||||||
Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”), 2) the valuations related to investments and real estate acquired in connection with foreclosures or in satisfaction of loans, and 3) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The consolidated financial statements of the Company include the parent holding company and the Bank. The Bank consists of thirteen bank divisions, a treasury division and an information technology division. The treasury division includes the Bank’s investment security portfolio and wholesale borrowings and the information technology division includes the Bank’s internal data processing and information technology expenses. Each of the bank divisions operate under separate names, management teams and directors. The Company considers the Bank to be its sole operating segment as the Bank 1) engages in similar bank business activity from which it earns revenues and incurs expenses, 2) the operating results of the Bank are regularly reviewed by the Chief Executive Officer (i.e., the chief operating decision maker) who makes decisions about resources to be allocated to the Bank, and 3) financial information is available for the Bank. All significant inter-company transactions have been eliminated in consolidation. | |||||||||||||
In May 2013, the Company acquired Wheatland Bankshares, Inc. and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. In July 2013, the Company completed its acquisition of North Cascades Bancshares, Inc. and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. Both transactions were accounted for using the acquisition method, and their results of operations have been included in the Company’s consolidated financial statements as of the acquisition dates. | |||||||||||||
The Company formed GBCI Other Real Estate (“GORE”) to isolate certain bank foreclosed properties for legal protection and administrative purposes and the remaining properties are currently held for sale. GORE is included in the Bank operating segment due to its insignificant activity. | |||||||||||||
The Company owns the following trust subsidiaries, each of which issued trust preferred securities as Tier 1 capital instruments: Glacier Capital Trust II, Glacier Capital Trust III, Glacier Capital Trust IV, Citizens (ID) Statutory Trust I, Bank of the San Juans Bancorporation Trust I, First Company Statutory Trust 2001 and First Company Statutory Trust 2003. The trust subsidiaries are not included in the Company’s consolidated financial statements. | |||||||||||||
Variable Interest Entities | ' | ||||||||||||
Variable Interest Entities | |||||||||||||
The Company has equity investments in Certified Development Entities (“CDE”) which have received allocations of New Markets Tax Credits (“NMTC”). The Company also has equity investments in Low-Income Housing Tax Credit (“LIHTC”) partnerships. The CDEs and the LIHTC partnerships are variable interest entities (“VIE”). | |||||||||||||
The following table summarizes the carrying amounts of the VIE’s assets and liabilities included in the Company’s consolidated financial statements at March 31, 2014 and December 31, 2013: | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Dollars in thousands) | CDE (NMTC) | LIHTC | CDE (NMTC) | LIHTC | |||||||||
Assets | |||||||||||||
Loans receivable | $ | 36,077 | — | 36,039 | — | ||||||||
Premises and equipment, net | — | 13,432 | — | 13,536 | |||||||||
Accrued interest receivable | 116 | — | 117 | — | |||||||||
Other assets | 780 | 153 | 843 | 153 | |||||||||
Total assets | $ | 36,973 | 13,585 | 36,999 | 13,689 | ||||||||
Liabilities | |||||||||||||
Other borrowed funds | $ | 4,555 | 1,690 | 4,555 | 1,723 | ||||||||
Accrued interest payable | 4 | 5 | 4 | 5 | |||||||||
Other liabilities | 152 | 87 | 151 | 189 | |||||||||
Total liabilities | $ | 4,711 | 1,782 | 4,710 | 1,917 | ||||||||
Amounts presented in the table above are adjusted for intercompany eliminations. All assets presented can be used only to settle obligations of the consolidated VIEs and all liabilities presented consist of liabilities for which creditors and other beneficial interest holders therein have no recourse to the general credit of the Company. | |||||||||||||
Loans Receivable | ' | ||||||||||||
Loans Receivable | |||||||||||||
Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. | |||||||||||||
The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). | |||||||||||||
Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. | |||||||||||||
The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. | |||||||||||||
A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR: | |||||||||||||
• | Reduction of the stated interest rate for the remaining term of the debt; | ||||||||||||
• | Extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and | ||||||||||||
• | Reduction of the face amount of the debt as stated in the debt agreements. | ||||||||||||
The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example: | |||||||||||||
• | analysis of global, i.e., aggregate debt service for total debt obligations; | ||||||||||||
• | assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and | ||||||||||||
• | loan structures and related covenants. | ||||||||||||
For additional information relating to loans, see Note 3. | |||||||||||||
Allowance for Loan and Lease Losses | ' | ||||||||||||
Allowance for Loan and Lease Losses | |||||||||||||
Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about all known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. | |||||||||||||
Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: | |||||||||||||
Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. | |||||||||||||
Commercial Real Estate. Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and / or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. | |||||||||||||
Commercial. Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. | |||||||||||||
Home Equity. Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 15 years. | |||||||||||||
Other Consumer. The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. | |||||||||||||
The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. | |||||||||||||
The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. | |||||||||||||
The changes in trends and conditions evaluated for each class within the loan portfolio include the following: | |||||||||||||
• | Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; | ||||||||||||
• | Changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; | ||||||||||||
• | Changes in the nature and volume of the portfolio and in the terms of loans; | ||||||||||||
• | Changes in experience, ability, and depth of lending management and other relevant staff; | ||||||||||||
• | Changes in the volume and severity of past due and nonaccrual loans; | ||||||||||||
• | Changes in the quality of the Company’s loan review system; | ||||||||||||
• | Changes in the value of underlying collateral for collateral-dependent loans; | ||||||||||||
• | The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and | ||||||||||||
• | The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. | ||||||||||||
The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged-off as a reduction of the ALLL and recoveries of amounts previously charged-off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. | |||||||||||||
At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. | |||||||||||||
Impact of Recent Authoritative Accounting Guidance | ' | ||||||||||||
Impact of Recent Authoritative Accounting Guidance | |||||||||||||
The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. | |||||||||||||
In January 2014, FASB amended FASB ASC Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors. The amendment clarifies that an in substance repossession foreclosure occurs when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either 1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or 2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both 1) the amount of foreclosed residential real estate property held by the creditor and 2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendment is effective for public business entities for interim and annual periods beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method as defined in the amendment. The Company is currently evaluating the impact of the adoption of this amendment, but does not expect it to have a material effect on the Company’s financial position or results of operations. | |||||||||||||
In January 2014, FASB amended FASB ASC Topic 323, Investments - Equity Method and Joint Ventures. The amendments permit entities to make an accounting policy election for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The amendments should be applied retrospectively to all periods presented and are effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of the adoption of the amendments, but does not expect them to have a material effect on the Company’s financial position or results of operations. |
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Carrying amounts of VIEs' assets and liabilities | ' | ||||||||||||
The following table summarizes the carrying amounts of the VIE’s assets and liabilities included in the Company’s consolidated financial statements at March 31, 2014 and December 31, 2013: | |||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||
(Dollars in thousands) | CDE (NMTC) | LIHTC | CDE (NMTC) | LIHTC | |||||||||
Assets | |||||||||||||
Loans receivable | $ | 36,077 | — | 36,039 | — | ||||||||
Premises and equipment, net | — | 13,432 | — | 13,536 | |||||||||
Accrued interest receivable | 116 | — | 117 | — | |||||||||
Other assets | 780 | 153 | 843 | 153 | |||||||||
Total assets | $ | 36,973 | 13,585 | 36,999 | 13,689 | ||||||||
Liabilities | |||||||||||||
Other borrowed funds | $ | 4,555 | 1,690 | 4,555 | 1,723 | ||||||||
Accrued interest payable | 4 | 5 | 4 | 5 | |||||||||
Other liabilities | 152 | 87 | 151 | 189 | |||||||||
Total liabilities | $ | 4,711 | 1,782 | 4,710 | 1,917 | ||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||
Amortized cost, gross unrealized gain and losses and fair value of investment securities | ' | ||||||||||||||||||
The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s investment securities: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||
(Dollars in thousands) | Gains | Losses | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 9,792 | 150 | — | 9,942 | ||||||||||||||
State and local governments | 902,464 | 27,337 | (8,351 | ) | 921,450 | ||||||||||||||
Corporate bonds | 431,831 | 4,567 | (713 | ) | 435,685 | ||||||||||||||
Residential mortgage-backed securities 1 | 1,296,529 | 12,512 | (6,938 | ) | 1,302,103 | ||||||||||||||
Total available-for-sale | 2,640,616 | 44,566 | (16,002 | ) | 2,669,180 | ||||||||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | 481,476 | 23,505 | (6,079 | ) | 498,902 | ||||||||||||||
Total held-to-maturity | 481,476 | 23,505 | (6,079 | ) | 498,902 | ||||||||||||||
Total investment securities | $ | 3,122,092 | 68,071 | (22,081 | ) | 3,168,082 | |||||||||||||
31-Dec-13 | |||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||
(Dollars in thousands) | Gains | Losses | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 10,441 | 187 | — | 10,628 | ||||||||||||||
State and local governments | 1,377,347 | 31,621 | (23,890 | ) | 1,385,078 | ||||||||||||||
Corporate bonds | 440,337 | 3,922 | (1,758 | ) | 442,501 | ||||||||||||||
Residential mortgage-backed securities 1 | 1,380,816 | 14,071 | (10,265 | ) | 1,384,622 | ||||||||||||||
Total available-for-sale | 3,208,941 | 49,801 | (35,913 | ) | 3,222,829 | ||||||||||||||
Total investment securities | $ | 3,208,941 | 49,801 | (35,913 | ) | 3,222,829 | |||||||||||||
________ | |||||||||||||||||||
1 Residential mortgage-backed securities are obligations of U.S. government sponsored enterprises and include collateralized mortgage obligations. | |||||||||||||||||||
Amortized cost and fair value of securities by contractual maturity | ' | ||||||||||||||||||
The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at March 31, 2014. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Carrying Value | Fair Value | |||||||||||||||
Due within one year | $ | 110,456 | 111,108 | — | — | ||||||||||||||
Due after one year through five years | 510,168 | 516,571 | — | — | |||||||||||||||
Due after five years through ten years | 61,297 | 61,933 | — | — | |||||||||||||||
Due after ten years | 662,166 | 677,465 | 481,476 | 498,902 | |||||||||||||||
1,344,087 | 1,367,077 | 481,476 | 498,902 | ||||||||||||||||
Residential mortgage-backed securities 1 | 1,296,529 | 1,302,103 | — | — | |||||||||||||||
Total | $ | 2,640,616 | 2,669,180 | 481,476 | 498,902 | ||||||||||||||
________ | |||||||||||||||||||
1 Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. | |||||||||||||||||||
Gain or loss on sale of Investments | ' | ||||||||||||||||||
Gain or loss on sale of investment securities consists of the following: | |||||||||||||||||||
Three Months ended | |||||||||||||||||||
(Dollars in thousands) | March 31, | March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Available-for-sale | |||||||||||||||||||
Gross proceeds | $ | 11,927 | 3,839 | ||||||||||||||||
Less amortized cost 1 | (12,000 | ) | (3,976 | ) | |||||||||||||||
Net loss on sale of available-for-sale investment securities | $ | (73 | ) | (137 | ) | ||||||||||||||
Gross gain on sale of investments | $ | 21 | — | ||||||||||||||||
Gross loss on sale of investments | (94 | ) | (137 | ) | |||||||||||||||
Net loss on sale of available-for-sale investment securities | $ | (73 | ) | (137 | ) | ||||||||||||||
Held-to-maturity 2 | |||||||||||||||||||
Gross proceeds | $ | 3,930 | — | ||||||||||||||||
Less amortized cost 1 | (3,908 | ) | — | ||||||||||||||||
Net gain on sale of held-to-maturity investment securities | $ | 22 | — | ||||||||||||||||
Gross gain on sale of investments | $ | 22 | — | ||||||||||||||||
Gross loss on sale of investments | — | — | |||||||||||||||||
Net gain on sale of held-to-maturity investment securities | $ | 22 | — | ||||||||||||||||
__________ | |||||||||||||||||||
1 The cost of each investment security sold is determined by specific identification. | |||||||||||||||||||
2 The gain or loss on sale of held-to-maturity investment securities is solely due to securities that were partially or wholly called. | |||||||||||||||||||
Summary of investments with an unrealized loss position | ' | ||||||||||||||||||
Investment securities with an unrealized loss position are summarized as follows: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 25 | — | — | — | 25 | — | ||||||||||||
State and local governments | 155,418 | (4,861 | ) | 77,090 | (3,490 | ) | 232,508 | (8,351 | ) | ||||||||||
Corporate bonds | 65,131 | (536 | ) | 17,722 | (177 | ) | 82,853 | (713 | ) | ||||||||||
Residential mortgage-backed securities | 273,531 | (4,109 | ) | 132,600 | (2,829 | ) | 406,131 | (6,938 | ) | ||||||||||
Total available-for-sale | $ | 494,105 | (9,506 | ) | 227,412 | (6,496 | ) | 721,517 | (16,002 | ) | |||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | $ | 19,803 | (979 | ) | 75,916 | (5,100 | ) | 95,719 | (6,079 | ) | |||||||||
Total held-to-maturity | $ | 19,803 | (979 | ) | 75,916 | (5,100 | ) | 95,719 | (6,079 | ) | |||||||||
31-Dec-13 | |||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||
(Dollars in thousands) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government sponsored enterprises | $ | 3 | — | — | — | 3 | — | ||||||||||||
State and local governments | 408,812 | (17,838 | ) | 74,161 | (6,052 | ) | 482,973 | (23,890 | ) | ||||||||||
Corporate bonds | 129,515 | (1,672 | ) | 1,702 | (86 | ) | 131,217 | (1,758 | ) | ||||||||||
Residential mortgage-backed securities | 457,611 | (10,226 | ) | 1,993 | (39 | ) | 459,604 | (10,265 | ) | ||||||||||
Total available-for-sale | $ | 995,941 | (29,736 | ) | 77,856 | (6,177 | ) | 1,073,797 | (35,913 | ) | |||||||||
Loans_Receivable_Net_Tables
Loans Receivable, Net (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||
Summary of the activity in the ALLL on a portfolio class basis | ' | ||||||||||||||||||
The following schedules summarize the activity in the ALLL: | |||||||||||||||||||
Three Months ended March 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Balance at beginning of period | $ | 130,351 | 14,067 | 70,332 | 28,630 | 9,299 | 8,023 | ||||||||||||
Provision for loan losses | 1,122 | (178 | ) | 40 | 933 | 203 | 124 | ||||||||||||
Charge-offs | (1,586 | ) | (36 | ) | (181 | ) | (1,163 | ) | (113 | ) | (93 | ) | |||||||
Recoveries | 842 | 213 | 380 | 84 | 37 | 128 | |||||||||||||
Balance at end of period | $ | 130,729 | 14,066 | 70,571 | 28,484 | 9,426 | 8,182 | ||||||||||||
Three Months ended March 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Balance at beginning of period | $ | 130,854 | 15,482 | 74,398 | 21,567 | 10,659 | 8,748 | ||||||||||||
Provision for loan losses | 2,100 | 23 | (952 | ) | 1,699 | 1,457 | (127 | ) | |||||||||||
Charge-offs | (3,614 | ) | (177 | ) | (765 | ) | (1,158 | ) | (1,338 | ) | (176 | ) | |||||||
Recoveries | 1,495 | 83 | 654 | 373 | 55 | 330 | |||||||||||||
Balance at end of period | $ | 130,835 | 15,411 | 73,335 | 22,481 | 10,833 | 8,775 | ||||||||||||
Summary of Loans and ALLL on a portfolio class basis | ' | ||||||||||||||||||
The following schedules disclose the ALLL and loans receivable: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Individually evaluated for impairment | $ | 10,236 | 699 | 3,429 | 4,731 | 167 | 1,210 | ||||||||||||
Collectively evaluated for impairment | 120,493 | 13,367 | 67,142 | 23,753 | 9,259 | 6,972 | |||||||||||||
Total allowance for loan and lease losses | $ | 130,729 | 14,066 | 70,571 | 28,484 | 9,426 | 8,182 | ||||||||||||
Loans receivable | |||||||||||||||||||
Individually evaluated for impairment | $ | 192,184 | 21,420 | 118,724 | 37,029 | 8,922 | 6,089 | ||||||||||||
Collectively evaluated for impairment | 3,896,445 | 558,886 | 1,952,308 | 820,934 | 354,190 | 210,127 | |||||||||||||
Total loans receivable | $ | 4,088,629 | 580,306 | 2,071,032 | 857,963 | 363,112 | 216,216 | ||||||||||||
31-Dec-13 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Allowance for loan and lease losses | |||||||||||||||||||
Individually evaluated for impairment | $ | 11,949 | 990 | 3,763 | 6,155 | 265 | 776 | ||||||||||||
Collectively evaluated for impairment | 118,402 | 13,077 | 66,569 | 22,475 | 9,034 | 7,247 | |||||||||||||
Total allowance for loan and lease losses | $ | 130,351 | 14,067 | 70,332 | 28,630 | 9,299 | 8,023 | ||||||||||||
Loans receivable | |||||||||||||||||||
Individually evaluated for impairment | $ | 199,680 | 24,070 | 119,526 | 41,504 | 9,039 | 5,541 | ||||||||||||
Collectively evaluated for impairment | 3,863,158 | 553,519 | 1,929,721 | 810,532 | 357,426 | 211,960 | |||||||||||||
Total loans receivable | $ | 4,062,838 | 577,589 | 2,049,247 | 852,036 | 366,465 | 217,501 | ||||||||||||
Summary of impaired loans by portfolio class of loans | ' | ||||||||||||||||||
The following schedules disclose the impaired loans: | |||||||||||||||||||
At or for the Three Months ended March 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 59,876 | 6,083 | 27,047 | 22,794 | 1,104 | 2,848 | ||||||||||||
Unpaid principal balance | 61,145 | 6,277 | 27,762 | 22,975 | 1,190 | 2,941 | |||||||||||||
Specific valuation allowance | 10,236 | 699 | 3,429 | 4,731 | 167 | 1,210 | |||||||||||||
Average balance | 60,689 | 6,658 | 25,482 | 24,904 | 995 | 2,650 | |||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 132,308 | 15,337 | 91,677 | 14,235 | 7,818 | 3,241 | ||||||||||||
Unpaid principal balance | 163,353 | 16,361 | 115,489 | 18,882 | 9,274 | 3,347 | |||||||||||||
Average balance | 135,243 | 16,087 | 93,643 | 14,362 | 7,986 | 3,165 | |||||||||||||
Totals | |||||||||||||||||||
Recorded balance | $ | 192,184 | 21,420 | 118,724 | 37,029 | 8,922 | 6,089 | ||||||||||||
Unpaid principal balance | 224,498 | 22,638 | 143,251 | 41,857 | 10,464 | 6,288 | |||||||||||||
Specific valuation allowance | 10,236 | 699 | 3,429 | 4,731 | 167 | 1,210 | |||||||||||||
Average balance | 195,932 | 22,745 | 119,125 | 39,266 | 8,981 | 5,815 | |||||||||||||
At or for the Year ended December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 61,503 | 7,233 | 23,917 | 27,015 | 886 | 2,452 | ||||||||||||
Unpaid principal balance | 63,406 | 7,394 | 25,331 | 27,238 | 949 | 2,494 | |||||||||||||
Specific valuation allowance | 11,949 | 990 | 3,763 | 6,155 | 265 | 776 | |||||||||||||
Average balance | 59,823 | 7,237 | 26,105 | 22,460 | 767 | 3,254 | |||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 138,177 | 16,837 | 95,609 | 14,489 | 8,153 | 3,089 | ||||||||||||
Unpaid principal balance | 169,082 | 18,033 | 119,017 | 19,156 | 9,631 | 3,245 | |||||||||||||
Average balance | 139,129 | 18,103 | 95,808 | 14,106 | 8,844 | 2,268 | |||||||||||||
Totals | |||||||||||||||||||
Recorded balance | $ | 199,680 | 24,070 | 119,526 | 41,504 | 9,039 | 5,541 | ||||||||||||
Unpaid principal balance | 232,488 | 25,427 | 144,348 | 46,394 | 10,580 | 5,739 | |||||||||||||
Specific valuation allowance | 11,949 | 990 | 3,763 | 6,155 | 265 | 776 | |||||||||||||
Average balance | 198,952 | 25,340 | 121,913 | 36,566 | 9,611 | 5,522 | |||||||||||||
Loan portfolio aging analysis on a portfolio class basis | ' | ||||||||||||||||||
The following is a loans receivable aging analysis: | |||||||||||||||||||
31-Mar-14 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Accruing loans 30-59 days past due | $ | 37,787 | 12,313 | 14,823 | 7,135 | 2,425 | 1,091 | ||||||||||||
Accruing loans 60-89 days past due | 5,075 | 1,043 | 2,183 | 1,245 | 186 | 418 | |||||||||||||
Accruing loans 90 days or more past due | 569 | 146 | 256 | 66 | 68 | 33 | |||||||||||||
Non-accrual loans | 78,905 | 8,439 | 51,614 | 8,640 | 7,875 | 2,337 | |||||||||||||
Total past due and non-accrual loans | 122,336 | 21,941 | 68,876 | 17,086 | 10,554 | 3,879 | |||||||||||||
Current loans receivable | 3,966,293 | 558,365 | 2,002,156 | 840,877 | 352,558 | 212,337 | |||||||||||||
Total loans receivable | $ | 4,088,629 | 580,306 | 2,071,032 | 857,963 | 363,112 | 216,216 | ||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Accruing loans 30-59 days past due | $ | 25,761 | 10,367 | 7,016 | 3,673 | 2,432 | 2,273 | ||||||||||||
Accruing loans 60-89 days past due | 6,355 | 1,055 | 2,709 | 1,421 | 668 | 502 | |||||||||||||
Accruing loans 90 days or more past due | 604 | 429 | — | 160 | 5 | 10 | |||||||||||||
Non-accrual loans | 81,956 | 10,702 | 51,438 | 10,139 | 7,950 | 1,727 | |||||||||||||
Total past due and non-accrual loans | 114,676 | 22,553 | 61,163 | 15,393 | 11,055 | 4,512 | |||||||||||||
Current loans receivable | 3,948,162 | 555,036 | 1,988,084 | 836,643 | 355,410 | 212,989 | |||||||||||||
Total loans receivable | $ | 4,062,838 | 577,589 | 2,049,247 | 852,036 | 366,465 | 217,501 | ||||||||||||
Summary of TDRs on a portfolio class basis | ' | ||||||||||||||||||
The following is a summary of the TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: | |||||||||||||||||||
Three Months ended March 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 13 | — | 5 | 7 | 1 | — | |||||||||||||
Pre-modification recorded balance | $ | 5,110 | — | 2,475 | 2,439 | 196 | — | ||||||||||||
Post-modification recorded balance | $ | 4,481 | — | 2,475 | 1,810 | 196 | — | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 2 | — | — | 2 | — | — | |||||||||||||
Recorded balance | $ | 42 | — | — | 42 | — | — | ||||||||||||
Three Months ended March 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 24 | 7 | 9 | 7 | — | 1 | |||||||||||||
Pre-modification recorded balance | $ | 6,250 | 1,358 | 3,316 | 1,505 | — | 71 | ||||||||||||
Post-modification recorded balance | $ | 6,591 | 1,699 | 3,316 | 1,505 | — | 71 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 5 | — | 3 | 1 | — | 1 | |||||||||||||
Recorded balance | $ | 1,109 | — | 1,052 | 12 | — | 45 | ||||||||||||
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||
Gross carrying value of goodwill and the accumulated impairment charge | ' | ||||||
The gross carrying value of goodwill and the accumulated impairment charge consists of the following: | |||||||
(Dollars in thousands) | March 31, | December 31, | |||||
2014 | 2013 | ||||||
Gross carrying value | $ | 169,865 | 169,865 | ||||
Accumulated impairment charge | (40,159 | ) | (40,159 | ) | |||
Net carrying value | $ | 129,706 | 129,706 | ||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||
Summary of interest rate swap derivative financial instruments | ' | ||||||||||||||||||
As of March 31, 2014, the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows: | |||||||||||||||||||
(Dollars in thousands) | Forecasted | Variable | Fixed | Term 2 | |||||||||||||||
Notional Amount | Interest Rate 1 | Interest Rate 1 | |||||||||||||||||
Interest rate swap | $ | 160,000 | 3 month LIBOR | 3.378 | % | Oct. 21, 2014 - Oct. 21, 2021 | |||||||||||||
Interest rate swap | 100,000 | 3 month LIBOR | 2.498 | % | Nov 30, 2015 - Nov. 30, 2022 | ||||||||||||||
__________ | |||||||||||||||||||
1 The Company pays the fixed interest rate and the counterparties pay the Company the variable interest rate. | |||||||||||||||||||
2 No cash will be exchanged prior to the term. | |||||||||||||||||||
Offsetting assets | ' | ||||||||||||||||||
The following table discloses the offsetting of financial assets and interest rate swap derivative assets: | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Assets Presented in the Statements of Financial Position | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Assets Presented in the Statements of Financial Position | |||||||||||||
Interest rate swaps | $ | 4,502 | (4,502 | ) | — | 6,844 | (4,948 | ) | 1,896 | ||||||||||
Offsetting liabilities | ' | ||||||||||||||||||
The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities: | |||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||
(Dollars in thousands) | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Liabilities Presented in the Statements of Financial Position | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statements of Financial Position | Net Amounts of Liabilities Presented in the Statements of Financial Position | |||||||||||||
Interest rate swaps | $ | 8,085 | (4,502 | ) | 3,583 | 4,948 | (4,948 | ) | — | ||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Equity [Abstract] | ' | ||||||
Components of accumulated other comprehensive income | ' | ||||||
The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: | |||||||
(Dollars in thousands) | March 31, | December 31, | |||||
2014 | 2013 | ||||||
Unrealized gains on available-for-sale securities | $ | 28,564 | 13,888 | ||||
Tax effect | (11,083 | ) | (5,403 | ) | |||
Net of tax amount | 17,481 | 8,485 | |||||
Unrealized (losses) gains on derivatives used for cash flow hedges | (3,583 | ) | 1,896 | ||||
Tax effect | 1,390 | (736 | ) | ||||
Net of tax amount | (2,193 | ) | 1,160 | ||||
Total accumulated other comprehensive income | $ | 15,288 | 9,645 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Basic and diluted earnings per share | ' | ||||||
Basic and diluted earnings per share has been computed based on the following: | |||||||
Three Months ended | |||||||
(Dollars in thousands, except per share data) | March 31, | March 31, | |||||
2014 | 2013 | ||||||
Net income available to common stockholders, basic and diluted | $ | 26,730 | 20,768 | ||||
Average outstanding shares - basic | 74,437,393 | 71,965,665 | |||||
Add: dilutive stock options and awards | 43,425 | 47,512 | |||||
Average outstanding shares - diluted | 74,480,818 | 72,013,177 | |||||
Basic earnings per share | $ | 0.36 | 0.29 | ||||
Diluted earnings per share | $ | 0.36 | 0.29 | ||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair value measurement of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||
The following schedules disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis: | |||||||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value March 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Investment securities, available-for-sale | |||||||||||||
U.S. government sponsored enterprises | $ | 9,942 | — | 9,942 | — | ||||||||
State and local governments | 921,450 | — | 921,450 | — | |||||||||
Corporate bonds | 435,685 | — | 435,685 | — | |||||||||
Residential mortgage-backed securities | 1,302,103 | — | 1,302,103 | — | |||||||||
Total assets measured at fair value on a recurring basis | $ | 2,669,180 | — | 2,669,180 | — | ||||||||
Interest rate swaps | $ | 3,583 | — | 3,583 | — | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | 3,583 | — | 3,583 | — | ||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Investment securities, available-for-sale | |||||||||||||
U.S. government sponsored enterprises | $ | 10,628 | — | 10,628 | — | ||||||||
State and local governments | 1,385,078 | — | 1,385,078 | — | |||||||||
Corporate bonds | 442,501 | — | 442,501 | — | |||||||||
Residential mortgage-backed securities | 1,384,622 | — | 1,384,622 | — | |||||||||
Interest rate swaps | 1,896 | — | 1,896 | — | |||||||||
Total assets measured at fair value on a recurring basis | $ | 3,224,725 | — | 3,224,725 | — | ||||||||
Fair value measurement of assets measured at fair value on a non-recurring basis | ' | ||||||||||||
The following schedules disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: | |||||||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value March 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Other real estate owned | $ | 971 | — | — | 971 | ||||||||
Collateral-dependent impaired loans, net of ALLL | 17,567 | — | — | 17,567 | |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 18,538 | — | — | 18,538 | ||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Fair Value December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Other real estate owned | $ | 10,888 | — | — | 10,888 | ||||||||
Collateral-dependent impaired loans, net of ALLL | 18,670 | — | — | 18,670 | |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 29,558 | — | — | 29,558 | ||||||||
Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used | ' | ||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||
Fair Value March 31, 2014 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | Valuation Technique | Unobservable Input | Range (Weighted Average) 1 | ||||||||||
Other real estate owned | $ | 191 | Sales comparison approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||||
780 | Combined approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||||||
Discount rate | 10.0% - 10.0% (10.0%) | ||||||||||||
$ | 971 | ||||||||||||
Collateral-dependent impaired loans, net of ALLL | $ | 4,078 | Income approach | Selling costs | 8.0% - 8.0% (8.0%) | ||||||||
Discount rate | 8.3% - 8.3% (8.3%) | ||||||||||||
10,795 | Sales comparison approach | Selling costs | 0.0% - 10.0% (8.0%) | ||||||||||
2,694 | Combined approach | Selling costs | 8.0% - 8.0% (8.0%) | ||||||||||
Discount rate | 7.3% - 7.3% (7.3%) | ||||||||||||
Adjustment to comparables | 0.0% - 10.0% (5.6%) | ||||||||||||
$ | 17,567 | ||||||||||||
Fair Value December 31, 2013 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | Valuation Technique | Unobservable Input | Range (Weighted- Average) 1 | ||||||||||
Other real estate owned | $ | 9,278 | Sales comparison approach | Selling costs | 7.0% - 10.0% (7.7%) | ||||||||
Adjustment to comparables | 0.0% - 37.5% (1.4%) | ||||||||||||
1,610 | Combined approach | Selling costs | 5.0% - 10.0% (7.5%) | ||||||||||
Discount rate | 8.5% - 8.5% (8.5%) | ||||||||||||
Adjustment to comparables | 25.0% - 25.0% (25.0%) | ||||||||||||
$ | 10,888 | ||||||||||||
Collateral-dependent impaired loans, net of ALLL | $ | 4,076 | Income approach | Selling costs | 8.0% - 8.0% (8.0%) | ||||||||
Discount rate | 8.3% - 8.3% (8.3%) | ||||||||||||
11,784 | Sales comparison approach | Selling costs | 0.0% - 10.0% (7.9%) | ||||||||||
Adjustment to comparables | 0.0% - 1.0% (0.0%) | ||||||||||||
2,810 | Combined approach | Selling costs | 0.0% - 8.0% (7.8%) | ||||||||||
Discount rate | 7.3% - 7.3% (7.3%) | ||||||||||||
Adjustment to comparables | 10.0% - 50.0% (18.9%) | ||||||||||||
$ | 18,670 | ||||||||||||
__________ | |||||||||||||
1 The range for selling costs and adjustments to comparables indicate reductions to the fair value. | |||||||||||||
Carrying amounts and estimated fair values of financial instruments | ' | ||||||||||||
The following schedules present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: | |||||||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Carrying Amount March 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Financial assets | |||||||||||||
Cash and cash equivalents | $ | 161,691 | 161,691 | — | — | ||||||||
Investment securities, available-for-sale | 2,669,180 | — | 2,669,180 | — | |||||||||
Investment securities, held-to-maturity | 481,476 | — | 498,902 | — | |||||||||
Loans held for sale | 36,133 | 36,133 | — | — | |||||||||
Loans receivable, net of ALLL | 3,957,900 | — | 3,840,131 | 181,948 | |||||||||
Accrued interest receivable | 41,274 | 41,274 | — | — | |||||||||
Non-marketable equity securities | 52,192 | — | 52,192 | — | |||||||||
Total financial assets | $ | 7,399,846 | 239,098 | 7,060,405 | 181,948 | ||||||||
Financial liabilities | |||||||||||||
Deposits | $ | 5,624,465 | 4,315,105 | 1,314,661 | — | ||||||||
FHLB advances | 686,744 | — | 703,287 | — | |||||||||
Repurchase agreements and other borrowed funds | 335,391 | — | 335,391 | — | |||||||||
Subordinated debentures | 125,597 | — | 68,673 | — | |||||||||
Accrued interest payable | 3,173 | 3,173 | — | — | |||||||||
Interest rate swaps | 3,583 | — | 3,583 | — | |||||||||
Total financial liabilities | $ | 6,778,953 | 4,318,278 | 2,425,595 | — | ||||||||
Fair Value Measurements | |||||||||||||
At the End of the Reporting Period Using | |||||||||||||
(Dollars in thousands) | Carrying Amount December 31, 2013 | Quoted Prices | Significant | Significant | |||||||||
in Active | Other | Unobservable | |||||||||||
Markets for | Observable | Inputs | |||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Financial assets | |||||||||||||
Cash and cash equivalents | $ | 155,657 | 155,657 | — | — | ||||||||
Investment securities, available-for-sale | 3,222,829 | — | 3,222,829 | — | |||||||||
Loans held for sale | 46,738 | 46,738 | — | — | |||||||||
Loans receivable, net of ALLL | 3,932,487 | — | 3,807,993 | 187,731 | |||||||||
Accrued interest receivable | 41,898 | 41,898 | — | — | |||||||||
Non-marketable equity securities | 52,192 | — | 52,192 | — | |||||||||
Interest rate swaps | 1,896 | — | 1,896 | — | |||||||||
Total financial assets | $ | 7,453,697 | 244,293 | 7,084,910 | 187,731 | ||||||||
Financial liabilities | |||||||||||||
Deposits | $ | 5,579,967 | 4,258,213 | 1,341,382 | — | ||||||||
FHLB advances | 840,182 | — | 857,551 | — | |||||||||
Repurchase agreements and other borrowed funds | 321,781 | — | 321,781 | — | |||||||||
Subordinated debentures | 125,562 | — | 71,501 | — | |||||||||
Accrued interest payable | 3,505 | 3,505 | — | — | |||||||||
Total financial liabilities | $ | 6,870,997 | 4,261,718 | 2,592,215 | — | ||||||||
VIE_Carrying_Amounts_Included_
VIE Carrying Amounts Included in Financial Statements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CDE (NMTC) | ' | ' |
Carrying amounts of the VIEs' assets and liabilities | ' | ' |
Loans receivable | $36,077 | $36,039 |
Premises and equipment, net | 0 | 0 |
Accrued interest receivable | 116 | 117 |
Other assets | 780 | 843 |
Total assets | 36,973 | 36,999 |
Other borrowed funds | 4,555 | 4,555 |
Accrued interest payable | 4 | 4 |
Other liabilities | 152 | 151 |
Total liabilities | 4,711 | 4,710 |
LIHTC | ' | ' |
Carrying amounts of the VIEs' assets and liabilities | ' | ' |
Loans receivable | 0 | 0 |
Premises and equipment, net | 13,432 | 13,536 |
Accrued interest receivable | 0 | 0 |
Other assets | 153 | 153 |
Total assets | 13,585 | 13,689 |
Other borrowed funds | 1,690 | 1,723 |
Accrued interest payable | 5 | 5 |
Other liabilities | 87 | 189 |
Total liabilities | $1,782 | $1,917 |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended |
Mar. 31, 2014 | |
Number of Bank Divisions | 13 |
Number of Operating Segments | 1 |
Minimum Period Past Due to Consider Loan as Delinquent | '30 days |
Minimum Period Past Due to Consider Loan as Non Accrual | '90 days |
Minimum Number of Days Delinquent to Charge off Consumer Loans | '120 days |
Minimum Range | ' |
Number of years for home equity loan origination term | '10 |
Maximum Range | ' |
Number of years for home equity loan origination term | '15 |
Amortized_Cost_Gross_Unrealize
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Summary of investment securities | ' | ' | ||
Amortized Cost | $3,122,092 | $3,208,941 | ||
Gross Unrealized Gains | 68,071 | 49,801 | ||
Gross Unrealized Losses | -22,081 | -35,913 | ||
Fair Value | 3,168,082 | 3,222,829 | ||
Available-for-sale securities | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 2,640,616 | 3,208,941 | ||
Gross Unrealized Gains | 44,566 | 49,801 | ||
Gross Unrealized Losses | -16,002 | -35,913 | ||
Fair Value | 2,669,180 | 3,222,829 | ||
Available-for-sale securities | U.S. government sponsored enterprises | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 9,792 | 10,441 | ||
Gross Unrealized Gains | 150 | 187 | ||
Gross Unrealized Losses | 0 | 0 | ||
Fair Value | 9,942 | 10,628 | ||
Available-for-sale securities | State and local governments | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 902,464 | 1,377,347 | ||
Gross Unrealized Gains | 27,337 | 31,621 | ||
Gross Unrealized Losses | -8,351 | -23,890 | ||
Fair Value | 921,450 | 1,385,078 | ||
Available-for-sale securities | Corporate bonds | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 431,831 | 440,337 | ||
Gross Unrealized Gains | 4,567 | 3,922 | ||
Gross Unrealized Losses | -713 | -1,758 | ||
Fair Value | 435,685 | 442,501 | ||
Available-for-sale securities | Residential mortgage-backed securities | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 1,296,529 | [1] | 1,380,816 | [1] |
Gross Unrealized Gains | 12,512 | [1] | 14,071 | [1] |
Gross Unrealized Losses | -6,938 | [1] | -10,265 | [1] |
Fair Value | 1,302,103 | [1] | 1,384,622 | [1] |
Held-to-maturity securities | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 481,476 | ' | ||
Gross Unrealized Gains | 23,505 | ' | ||
Gross Unrealized Losses | -6,079 | ' | ||
Fair Value | 498,902 | ' | ||
Held-to-maturity securities | State and local governments | ' | ' | ||
Summary of investment securities | ' | ' | ||
Amortized Cost | 481,476 | ' | ||
Gross Unrealized Gains | 23,505 | ' | ||
Gross Unrealized Losses | -6,079 | ' | ||
Fair Value | $498,902 | ' | ||
[1] | Residential mortgage-backed securities are obligations of U.S. government sponsored enterprises and include collateralized mortgage obligations. |
Investment_Securities_Maturity
Investment Securities Maturity Schedule (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Available-for-Sale, Amortized Cost | ' | ' | |
Due within one year | $110,456 | ' | |
Due after one year through five years | 510,168 | ' | |
Due after five years through ten years | 61,297 | ' | |
Due after ten years | 662,166 | ' | |
Total, single maturity date | 1,344,087 | ' | |
Total | 2,640,616 | ' | |
Available-for-Sale, Fair Value | ' | ' | |
Due within one year | 111,108 | ' | |
Due after one year through five years | 516,571 | ' | |
Due after five years through ten years | 61,933 | ' | |
Due after ten years | 677,465 | ' | |
Total, single maturity date | 1,367,077 | ' | |
Total | 2,669,180 | ' | |
Held-to-Maturity, Carrying Value | ' | ' | |
Due within one year | 0 | ' | |
Due after one year through five years | 0 | ' | |
Due after five years through ten years | 0 | ' | |
Due after ten years | 481,476 | ' | |
Total, single maturity date | 481,476 | ' | |
Total | 481,476 | 0 | |
Held-to-Maturity, Fair Value | ' | ' | |
Due within one year | 0 | ' | |
Due after one year through five years | 0 | ' | |
Due after five years through ten years | 0 | ' | |
Due after ten years | 498,902 | ' | |
Total, single maturity date | 498,902 | ' | |
Total | 498,902 | 0 | |
Residential mortgage-backed securities | ' | ' | |
Available-for-Sale, Amortized Cost | ' | ' | |
Residential mortgage-backed securities | 1,296,529 | [1] | ' |
Available-for-Sale, Fair Value | ' | ' | |
Residential mortgage-backed securities | 1,302,103 | [1] | ' |
Held-to-Maturity, Carrying Value | ' | ' | |
Residential mortgage-backed securities | 0 | [1] | ' |
Held-to-Maturity, Fair Value | ' | ' | |
Residential mortgage-backed securities | $0 | [1] | ' |
[1] | Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
Gain_or_Loss_on_Sale_of_Invest
Gain or Loss on Sale of Investments (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Available-for-sale | ' | ' | ||
Gross proceeds | $11,927 | $3,839 | ||
Less amortized cost | -12,000 | [1] | -3,976 | [1] |
Net loss on sale of available-for-sale investment securities | -73 | -137 | ||
Gross gain on sale of investments | 21 | 0 | ||
Gross loss on sale of investments | -94 | -137 | ||
Held-to-maturity | ' | ' | ||
Gross proceeds | 3,930 | [2] | 0 | [2] |
Less amortized cost | -3,908 | [1],[2] | 0 | [1],[2] |
Net gain on sale of held-to-maturity investment securities | 22 | [2] | 0 | [2] |
Gross gain on sale of investments | 22 | [2] | 0 | [2] |
Gross loss on sale of investments | $0 | [2] | $0 | [2] |
[1] | The cost of each investment security sold is determined by specific identification. | |||
[2] | The gain or loss on sale of held-to-maturity investment securities is solely due to securities that were partially or wholly called. |
Investment_with_an_Unrealized_
Investment with an Unrealized Loss Position (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-Sale, Fair Value | ' | ' |
Fair Value, Less than 12 Months | $494,105 | $995,941 |
Fair Value, 12 Months or More | 227,412 | 77,856 |
Fair Value, Total | 721,517 | 1,073,797 |
Available-for-Sale, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | -9,506 | -29,736 |
Unrealized Loss, 12 Months or More | -6,496 | -6,177 |
Unrealized Loss, Total | -16,002 | -35,913 |
Held-to-Maturity, Fair Value | ' | ' |
Fair Value, Less than 12 Months | 19,803 | ' |
Fair Value, 12 Months or More | 75,916 | ' |
Fair Value, Total | 95,719 | ' |
Held-to-Maturity, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | -979 | ' |
Unrealized Loss, 12 Months or More | -5,100 | ' |
Unrealized Loss, Total | -6,079 | ' |
U.S. government sponsored enterprises | ' | ' |
Available-for-Sale, Fair Value | ' | ' |
Fair Value, Less than 12 Months | 25 | 3 |
Fair Value, 12 Months or More | 0 | 0 |
Fair Value, Total | 25 | 3 |
Available-for-Sale, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | 0 | 0 |
Unrealized Loss, 12 Months or More | 0 | 0 |
Unrealized Loss, Total | 0 | 0 |
State and local governments | ' | ' |
Available-for-Sale, Fair Value | ' | ' |
Fair Value, Less than 12 Months | 155,418 | 408,812 |
Fair Value, 12 Months or More | 77,090 | 74,161 |
Fair Value, Total | 232,508 | 482,973 |
Available-for-Sale, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | -4,861 | -17,838 |
Unrealized Loss, 12 Months or More | -3,490 | -6,052 |
Unrealized Loss, Total | -8,351 | -23,890 |
Held-to-Maturity, Fair Value | ' | ' |
Fair Value, Less than 12 Months | 19,803 | ' |
Fair Value, 12 Months or More | 75,916 | ' |
Fair Value, Total | 95,719 | ' |
Held-to-Maturity, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | -979 | ' |
Unrealized Loss, 12 Months or More | -5,100 | ' |
Unrealized Loss, Total | -6,079 | ' |
Corporate bonds | ' | ' |
Available-for-Sale, Fair Value | ' | ' |
Fair Value, Less than 12 Months | 65,131 | 129,515 |
Fair Value, 12 Months or More | 17,722 | 1,702 |
Fair Value, Total | 82,853 | 131,217 |
Available-for-Sale, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | -536 | -1,672 |
Unrealized Loss, 12 Months or More | -177 | -86 |
Unrealized Loss, Total | -713 | -1,758 |
Residential mortgage-backed securities | ' | ' |
Available-for-Sale, Fair Value | ' | ' |
Fair Value, Less than 12 Months | 273,531 | 457,611 |
Fair Value, 12 Months or More | 132,600 | 1,993 |
Fair Value, Total | 406,131 | 459,604 |
Available-for-Sale, Unrealized Loss | ' | ' |
Unrealized Loss, Less than 12 Months | -4,109 | -10,226 |
Unrealized Loss, 12 Months or More | -2,829 | -39 |
Unrealized Loss, Total | ($6,938) | ($10,265) |
Investment_Securities_Details_
Investment Securities (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | Jan. 02, 2014 | |
State and local governments | |||
Investment Securities | ' | ' | ' |
Available-for-sale securities transferred to held-to-maturity securities, fair value | ' | ' | $484,583,000 |
Available-for-sale securities transferred to held-to-maturity securities, unrealized gain (loss) | ' | ' | 4,624,000 |
Other-than-temporary impairment on investment securities | $0 | $0 | ' |
ALLL_Activity_Details
ALLL Activity (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Allowance for loan and lease losses | ' | ' |
Balance at beginning of period | $130,351 | $130,854 |
Provision for loan losses | 1,122 | 2,100 |
Charge-offs | -1,586 | -3,614 |
Recoveries | 842 | 1,495 |
Balance at end of period | 130,729 | 130,835 |
Residential Real Estate | ' | ' |
Allowance for loan and lease losses | ' | ' |
Balance at beginning of period | 14,067 | 15,482 |
Provision for loan losses | -178 | 23 |
Charge-offs | -36 | -177 |
Recoveries | 213 | 83 |
Balance at end of period | 14,066 | 15,411 |
Commercial Real Estate | ' | ' |
Allowance for loan and lease losses | ' | ' |
Balance at beginning of period | 70,332 | 74,398 |
Provision for loan losses | 40 | -952 |
Charge-offs | -181 | -765 |
Recoveries | 380 | 654 |
Balance at end of period | 70,571 | 73,335 |
Other Commercial | ' | ' |
Allowance for loan and lease losses | ' | ' |
Balance at beginning of period | 28,630 | 21,567 |
Provision for loan losses | 933 | 1,699 |
Charge-offs | -1,163 | -1,158 |
Recoveries | 84 | 373 |
Balance at end of period | 28,484 | 22,481 |
Home Equity | ' | ' |
Allowance for loan and lease losses | ' | ' |
Balance at beginning of period | 9,299 | 10,659 |
Provision for loan losses | 203 | 1,457 |
Charge-offs | -113 | -1,338 |
Recoveries | 37 | 55 |
Balance at end of period | 9,426 | 10,833 |
Other Consumer | ' | ' |
Allowance for loan and lease losses | ' | ' |
Balance at beginning of period | 8,023 | 8,748 |
Provision for loan losses | 124 | -127 |
Charge-offs | -93 | -176 |
Recoveries | 128 | 330 |
Balance at end of period | $8,182 | $8,775 |
ALLL_and_Loans_Receivable_Summ
ALLL and Loans Receivable Summary (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Allowance for Loan and Lease Losses and Loans Receivable | ' | ' |
Individually evaluated for impairment | $10,236 | $11,949 |
Collectively evaluated for impairment | 120,493 | 118,402 |
Total allowances for loan and lease losses | 130,729 | 130,351 |
Individually evaluated for impairment | 192,184 | 199,680 |
Collectively evaluated for impairment | 3,896,445 | 3,863,158 |
Total loans receivable | 4,088,629 | 4,062,838 |
Residential Real Estate | ' | ' |
Allowance for Loan and Lease Losses and Loans Receivable | ' | ' |
Individually evaluated for impairment | 699 | 990 |
Collectively evaluated for impairment | 13,367 | 13,077 |
Total allowances for loan and lease losses | 14,066 | 14,067 |
Individually evaluated for impairment | 21,420 | 24,070 |
Collectively evaluated for impairment | 558,886 | 553,519 |
Total loans receivable | 580,306 | 577,589 |
Commercial Real Estate | ' | ' |
Allowance for Loan and Lease Losses and Loans Receivable | ' | ' |
Individually evaluated for impairment | 3,429 | 3,763 |
Collectively evaluated for impairment | 67,142 | 66,569 |
Total allowances for loan and lease losses | 70,571 | 70,332 |
Individually evaluated for impairment | 118,724 | 119,526 |
Collectively evaluated for impairment | 1,952,308 | 1,929,721 |
Total loans receivable | 2,071,032 | 2,049,247 |
Other Commercial | ' | ' |
Allowance for Loan and Lease Losses and Loans Receivable | ' | ' |
Individually evaluated for impairment | 4,731 | 6,155 |
Collectively evaluated for impairment | 23,753 | 22,475 |
Total allowances for loan and lease losses | 28,484 | 28,630 |
Individually evaluated for impairment | 37,029 | 41,504 |
Collectively evaluated for impairment | 820,934 | 810,532 |
Total loans receivable | 857,963 | 852,036 |
Home Equity | ' | ' |
Allowance for Loan and Lease Losses and Loans Receivable | ' | ' |
Individually evaluated for impairment | 167 | 265 |
Collectively evaluated for impairment | 9,259 | 9,034 |
Total allowances for loan and lease losses | 9,426 | 9,299 |
Individually evaluated for impairment | 8,922 | 9,039 |
Collectively evaluated for impairment | 354,190 | 357,426 |
Total loans receivable | 363,112 | 366,465 |
Other Consumer | ' | ' |
Allowance for Loan and Lease Losses and Loans Receivable | ' | ' |
Individually evaluated for impairment | 1,210 | 776 |
Collectively evaluated for impairment | 6,972 | 7,247 |
Total allowances for loan and lease losses | 8,182 | 8,023 |
Individually evaluated for impairment | 6,089 | 5,541 |
Collectively evaluated for impairment | 210,127 | 211,960 |
Total loans receivable | $216,216 | $217,501 |
Impaired_Loans_Details
Impaired Loans (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Summary of the impaired loans by portfolio class of loans | ' | ' |
Loans with a specific valuation allowance, Recorded balance | $59,876 | $61,503 |
Loans with a specific valuation allowance, Unpaid principal balance | 61,145 | 63,406 |
Loans with a specific valuation allowance, Specific valuation allowance | 10,236 | 11,949 |
Loans with a specific valuation allowance, Average balance | 60,689 | 59,823 |
Loans without a specific valuation allowance, Recorded balance | 132,308 | 138,177 |
Loans without a specific valuation allowance, Unpaid principal balance | 163,353 | 169,082 |
Loans without a specific valuation allowance, Average balance | 135,243 | 139,129 |
Recorded balance | 192,184 | 199,680 |
Unpaid principal balance | 224,498 | 232,488 |
Specific valuation allowance | 10,236 | 11,949 |
Average balance | 195,932 | 198,952 |
Residential Real Estate | ' | ' |
Summary of the impaired loans by portfolio class of loans | ' | ' |
Loans with a specific valuation allowance, Recorded balance | 6,083 | 7,233 |
Loans with a specific valuation allowance, Unpaid principal balance | 6,277 | 7,394 |
Loans with a specific valuation allowance, Specific valuation allowance | 699 | 990 |
Loans with a specific valuation allowance, Average balance | 6,658 | 7,237 |
Loans without a specific valuation allowance, Recorded balance | 15,337 | 16,837 |
Loans without a specific valuation allowance, Unpaid principal balance | 16,361 | 18,033 |
Loans without a specific valuation allowance, Average balance | 16,087 | 18,103 |
Recorded balance | 21,420 | 24,070 |
Unpaid principal balance | 22,638 | 25,427 |
Specific valuation allowance | 699 | 990 |
Average balance | 22,745 | 25,340 |
Commercial Real Estate | ' | ' |
Summary of the impaired loans by portfolio class of loans | ' | ' |
Loans with a specific valuation allowance, Recorded balance | 27,047 | 23,917 |
Loans with a specific valuation allowance, Unpaid principal balance | 27,762 | 25,331 |
Loans with a specific valuation allowance, Specific valuation allowance | 3,429 | 3,763 |
Loans with a specific valuation allowance, Average balance | 25,482 | 26,105 |
Loans without a specific valuation allowance, Recorded balance | 91,677 | 95,609 |
Loans without a specific valuation allowance, Unpaid principal balance | 115,489 | 119,017 |
Loans without a specific valuation allowance, Average balance | 93,643 | 95,808 |
Recorded balance | 118,724 | 119,526 |
Unpaid principal balance | 143,251 | 144,348 |
Specific valuation allowance | 3,429 | 3,763 |
Average balance | 119,125 | 121,913 |
Other Commercial | ' | ' |
Summary of the impaired loans by portfolio class of loans | ' | ' |
Loans with a specific valuation allowance, Recorded balance | 22,794 | 27,015 |
Loans with a specific valuation allowance, Unpaid principal balance | 22,975 | 27,238 |
Loans with a specific valuation allowance, Specific valuation allowance | 4,731 | 6,155 |
Loans with a specific valuation allowance, Average balance | 24,904 | 22,460 |
Loans without a specific valuation allowance, Recorded balance | 14,235 | 14,489 |
Loans without a specific valuation allowance, Unpaid principal balance | 18,882 | 19,156 |
Loans without a specific valuation allowance, Average balance | 14,362 | 14,106 |
Recorded balance | 37,029 | 41,504 |
Unpaid principal balance | 41,857 | 46,394 |
Specific valuation allowance | 4,731 | 6,155 |
Average balance | 39,266 | 36,566 |
Home Equity | ' | ' |
Summary of the impaired loans by portfolio class of loans | ' | ' |
Loans with a specific valuation allowance, Recorded balance | 1,104 | 886 |
Loans with a specific valuation allowance, Unpaid principal balance | 1,190 | 949 |
Loans with a specific valuation allowance, Specific valuation allowance | 167 | 265 |
Loans with a specific valuation allowance, Average balance | 995 | 767 |
Loans without a specific valuation allowance, Recorded balance | 7,818 | 8,153 |
Loans without a specific valuation allowance, Unpaid principal balance | 9,274 | 9,631 |
Loans without a specific valuation allowance, Average balance | 7,986 | 8,844 |
Recorded balance | 8,922 | 9,039 |
Unpaid principal balance | 10,464 | 10,580 |
Specific valuation allowance | 167 | 265 |
Average balance | 8,981 | 9,611 |
Other Consumer | ' | ' |
Summary of the impaired loans by portfolio class of loans | ' | ' |
Loans with a specific valuation allowance, Recorded balance | 2,848 | 2,452 |
Loans with a specific valuation allowance, Unpaid principal balance | 2,941 | 2,494 |
Loans with a specific valuation allowance, Specific valuation allowance | 1,210 | 776 |
Loans with a specific valuation allowance, Average balance | 2,650 | 3,254 |
Loans without a specific valuation allowance, Recorded balance | 3,241 | 3,089 |
Loans without a specific valuation allowance, Unpaid principal balance | 3,347 | 3,245 |
Loans without a specific valuation allowance, Average balance | 3,165 | 2,268 |
Recorded balance | 6,089 | 5,541 |
Unpaid principal balance | 6,288 | 5,739 |
Specific valuation allowance | 1,210 | 776 |
Average balance | $5,815 | $5,522 |
Loans_Receivable_Aging_Analysi
Loans Receivable Aging Analysis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loan portfolio aging analysis | ' | ' |
Accruing loans 30-59 days past due | $37,787 | $25,761 |
Accruing loans 60-89 days past due | 5,075 | 6,355 |
Accruing loans 90 days or more past due | 569 | 604 |
Non-accrual loans | 78,905 | 81,956 |
Total past due and non-accrual loans | 122,336 | 114,676 |
Current loans receivable | 3,966,293 | 3,948,162 |
Total loans receivable | 4,088,629 | 4,062,838 |
Residential Real Estate | ' | ' |
Loan portfolio aging analysis | ' | ' |
Accruing loans 30-59 days past due | 12,313 | 10,367 |
Accruing loans 60-89 days past due | 1,043 | 1,055 |
Accruing loans 90 days or more past due | 146 | 429 |
Non-accrual loans | 8,439 | 10,702 |
Total past due and non-accrual loans | 21,941 | 22,553 |
Current loans receivable | 558,365 | 555,036 |
Total loans receivable | 580,306 | 577,589 |
Commercial Real Estate | ' | ' |
Loan portfolio aging analysis | ' | ' |
Accruing loans 30-59 days past due | 14,823 | 7,016 |
Accruing loans 60-89 days past due | 2,183 | 2,709 |
Accruing loans 90 days or more past due | 256 | 0 |
Non-accrual loans | 51,614 | 51,438 |
Total past due and non-accrual loans | 68,876 | 61,163 |
Current loans receivable | 2,002,156 | 1,988,084 |
Total loans receivable | 2,071,032 | 2,049,247 |
Other Commercial | ' | ' |
Loan portfolio aging analysis | ' | ' |
Accruing loans 30-59 days past due | 7,135 | 3,673 |
Accruing loans 60-89 days past due | 1,245 | 1,421 |
Accruing loans 90 days or more past due | 66 | 160 |
Non-accrual loans | 8,640 | 10,139 |
Total past due and non-accrual loans | 17,086 | 15,393 |
Current loans receivable | 840,877 | 836,643 |
Total loans receivable | 857,963 | 852,036 |
Home Equity | ' | ' |
Loan portfolio aging analysis | ' | ' |
Accruing loans 30-59 days past due | 2,425 | 2,432 |
Accruing loans 60-89 days past due | 186 | 668 |
Accruing loans 90 days or more past due | 68 | 5 |
Non-accrual loans | 7,875 | 7,950 |
Total past due and non-accrual loans | 10,554 | 11,055 |
Current loans receivable | 352,558 | 355,410 |
Total loans receivable | 363,112 | 366,465 |
Other Consumer | ' | ' |
Loan portfolio aging analysis | ' | ' |
Accruing loans 30-59 days past due | 1,091 | 2,273 |
Accruing loans 60-89 days past due | 418 | 502 |
Accruing loans 90 days or more past due | 33 | 10 |
Non-accrual loans | 2,337 | 1,727 |
Total past due and non-accrual loans | 3,879 | 4,512 |
Current loans receivable | 212,337 | 212,989 |
Total loans receivable | $216,216 | $217,501 |
Troubled_Debt_Restructurings_D
Troubled Debt Restructurings (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Loan | Loan | |
Troubled Debt Restructurings | ' | ' |
Troubled debt restructurings, Number of Loans | 13 | 24 |
Troubled debt restructurings, Pre-modification recorded balance | $5,110 | $6,250 |
Troubled debt restructurings, Post-modification recorded balance | 4,481 | 6,591 |
TDRs that Subsequently Defaulted, Number of Loans | 2 | 5 |
TDRs that Subsequently Defaulted, Recorded Balance | 42 | 1,109 |
Residential Real Estate | ' | ' |
Troubled Debt Restructurings | ' | ' |
Troubled debt restructurings, Number of Loans | 0 | 7 |
Troubled debt restructurings, Pre-modification recorded balance | 0 | 1,358 |
Troubled debt restructurings, Post-modification recorded balance | 0 | 1,699 |
TDRs that Subsequently Defaulted, Number of Loans | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | 0 | 0 |
Commercial Real Estate | ' | ' |
Troubled Debt Restructurings | ' | ' |
Troubled debt restructurings, Number of Loans | 5 | 9 |
Troubled debt restructurings, Pre-modification recorded balance | 2,475 | 3,316 |
Troubled debt restructurings, Post-modification recorded balance | 2,475 | 3,316 |
TDRs that Subsequently Defaulted, Number of Loans | 0 | 3 |
TDRs that Subsequently Defaulted, Recorded Balance | 0 | 1,052 |
Other Commercial | ' | ' |
Troubled Debt Restructurings | ' | ' |
Troubled debt restructurings, Number of Loans | 7 | 7 |
Troubled debt restructurings, Pre-modification recorded balance | 2,439 | 1,505 |
Troubled debt restructurings, Post-modification recorded balance | 1,810 | 1,505 |
TDRs that Subsequently Defaulted, Number of Loans | 2 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | 42 | 12 |
Home Equity | ' | ' |
Troubled Debt Restructurings | ' | ' |
Troubled debt restructurings, Number of Loans | 1 | 0 |
Troubled debt restructurings, Pre-modification recorded balance | 196 | 0 |
Troubled debt restructurings, Post-modification recorded balance | 196 | 0 |
TDRs that Subsequently Defaulted, Number of Loans | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | 0 | 0 |
Other Consumer | ' | ' |
Troubled Debt Restructurings | ' | ' |
Troubled debt restructurings, Number of Loans | 0 | 1 |
Troubled debt restructurings, Pre-modification recorded balance | 0 | 71 |
Troubled debt restructurings, Post-modification recorded balance | 0 | 71 |
TDRs that Subsequently Defaulted, Number of Loans | 0 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | $0 | $45 |
Loans_Receivable_Net_Details_T
Loans Receivable, Net (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Loans and Leases Receivable Disclosure | ' | ' | ' |
Net deferred fees, costs, premiums, and discounts included in loans receivable | $7,746,000 | ' | $10,662,000 |
Troubled Debt Restructurings | ' | ' | ' |
Percentage of Troubled Debt Restructurings Resulting from Extensions of Maturity Date | 29.00% | 43.00% | ' |
Percentage of TDRs Resulting of Combination of Interest Rate Reduction Extension of Maturity Date or Reduction in Face Amount | 39.00% | 29.00% | ' |
TDR With Pre Modification Loan Balance for Which Oreo Was Received | $4,413,000 | $7,186,000 | ' |
Commercial Real Estate | ' | ' | ' |
Troubled Debt Restructurings | ' | ' | ' |
Percentage of Troubled Debt Restructurings Resulting from Extensions of Maturity Date | ' | 29.00% | ' |
Percentage of TDRs Resulting of Combination of Interest Rate Reduction Extension of Maturity Date or Reduction in Face Amount | 81.00% | 30.00% | ' |
Net_Carrying_Value_of_Goodwill
Net Carrying Value of Goodwill (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Gross carrying value of goodwill and the accumulated impairment charge | ' | ' |
Gross carrying value | $169,865 | $169,865 |
Accumulated impairment charge | -40,159 | -40,159 |
Net carrying value | $129,706 | $129,706 |
Interest_Rate_Swap_Summary_Det
Interest Rate Swap Summary (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Interest Rate Swap One | ' | |
Interest rate swap derivative financial instruments | ' | |
Forecasted Notional Amount | $160,000 | |
Variable Interest Rate | '3 month LIBOR | [1] |
Fixed Interest Rate | 3.38% | [1] |
Term, Effective Date | 21-Oct-14 | [2] |
Term, Maturity Date | 21-Oct-21 | [2] |
Interest Rate Swap Two | ' | |
Interest rate swap derivative financial instruments | ' | |
Forecasted Notional Amount | $100,000 | |
Variable Interest Rate | '3B monthB LIBOR | [1] |
Fixed Interest Rate | 2.50% | [1] |
Term, Effective Date | 30-Nov-15 | [2] |
Term, Maturity Date | 30-Nov-22 | [2] |
[1] | The Company pays the fixed interest rate and the counterparties pay the Company the variable interest rate. | |
[2] | No cash will be exchanged prior to the term. |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities Derivatives and Hedging Activities Offsetting Assets (Details) (Interest Rate Swap, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap | ' | ' |
Offsetting Derivative Assets | ' | ' |
Gross Amounts of Recognized Assets | $4,502 | $6,844 |
Gross Amounts Offset in the Statements of Financial Position | 4,502 | 4,948 |
Net Amounts of Assets Presented in the Statements of Financial Position | $0 | $1,896 |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities Derivatives and Hedging Activities Offsetting Liabilities (Details) (Interest Rate Swap, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap | ' | ' |
Offsetting Derivative Liabilities | ' | ' |
Gross Amounts of Recognized Liabilities | $8,085 | $4,948 |
Gross Amounts Offset in the Statements of Financial Position | 4,502 | 4,948 |
Net Amounts of Liabilities Presented in the Statements of Financial Position | $3,583 | $0 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities (Details Textual) (USD $) | Mar. 31, 2014 |
Derivatives | ' |
Investment securities pledged to counterparties as collateral | $6,200,000 |
Collateral pledged from the counterparties to the Company | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income | ' | ' |
Net of Tax | $15,288 | $9,645 |
Available-For-Sale Securities | ' | ' |
Accumulated Other Comprehensive Income | ' | ' |
Before Tax | 28,564 | 13,888 |
Tax effect | -11,083 | -5,403 |
Net of Tax | 17,481 | 8,485 |
Derivatives Used for Cash Flow Hedges | ' | ' |
Accumulated Other Comprehensive Income | ' | ' |
Before Tax | -3,583 | 1,896 |
Tax effect | 1,390 | -736 |
Net of Tax | ($2,193) | $1,160 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Basic and Diluted Earnings Per Share | ' | ' |
Net income available to common stockholders, basic and diluted | $26,730 | $20,768 |
Average outstanding shares - basic | 74,437,393 | 71,965,665 |
Add: dilutive stock options and awards | 43,425 | 47,512 |
Average outstanding shares - diluted | 74,480,818 | 72,013,177 |
Basic earnings per share | $0.36 | $0.29 |
Diluted earnings per share | $0.36 | $0.29 |
Earnings Per Share | ' | ' |
Options excluded from the diluted average outstanding share calculation | 0 | 152,559 |
Fair_Value_Measurements_on_a_R
Fair Value Measurements on a Recurring Basis (Details) (Recurring Measurements, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets | ' | ' |
Total assets measured at fair value on a recurring basis | $2,669,180 | $3,224,725 |
Financial Liabilities | ' | ' |
Total liabilities measured at fair value on a recurring basis | 3,583 | ' |
Interest rate swaps | ' | ' |
Financial Liabilities | ' | ' |
Interest rate swaps | 3,583 | ' |
U.S. government sponsored enterprises | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 9,942 | 10,628 |
State and local governments | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 921,450 | 1,385,078 |
Corporate bonds | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 435,685 | 442,501 |
Residential mortgage-backed securities | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 1,302,103 | 1,384,622 |
Interest rate swaps | ' | ' |
Financial Assets | ' | ' |
Interest rate swaps | ' | 1,896 |
Level 1 | ' | ' |
Financial Assets | ' | ' |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities | ' | ' |
Total liabilities measured at fair value on a recurring basis | 0 | ' |
Level 1 | Interest rate swaps | ' | ' |
Financial Liabilities | ' | ' |
Interest rate swaps | 0 | ' |
Level 1 | U.S. government sponsored enterprises | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 1 | State and local governments | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 1 | Corporate bonds | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 1 | Residential mortgage-backed securities | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 1 | Interest rate swaps | ' | ' |
Financial Assets | ' | ' |
Interest rate swaps | ' | 0 |
Level 2 | ' | ' |
Financial Assets | ' | ' |
Total assets measured at fair value on a recurring basis | 2,669,180 | 3,224,725 |
Financial Liabilities | ' | ' |
Total liabilities measured at fair value on a recurring basis | 3,583 | ' |
Level 2 | Interest rate swaps | ' | ' |
Financial Liabilities | ' | ' |
Interest rate swaps | 3,583 | ' |
Level 2 | U.S. government sponsored enterprises | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 9,942 | 10,628 |
Level 2 | State and local governments | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 921,450 | 1,385,078 |
Level 2 | Corporate bonds | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 435,685 | 442,501 |
Level 2 | Residential mortgage-backed securities | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 1,302,103 | 1,384,622 |
Level 2 | Interest rate swaps | ' | ' |
Financial Assets | ' | ' |
Interest rate swaps | ' | 1,896 |
Level 3 | ' | ' |
Financial Assets | ' | ' |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Financial Liabilities | ' | ' |
Total liabilities measured at fair value on a recurring basis | 0 | ' |
Level 3 | Interest rate swaps | ' | ' |
Financial Liabilities | ' | ' |
Interest rate swaps | 0 | ' |
Level 3 | U.S. government sponsored enterprises | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 3 | State and local governments | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 3 | Corporate bonds | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 3 | Residential mortgage-backed securities | ' | ' |
Financial Assets | ' | ' |
Investment securities, available-for-sale | 0 | 0 |
Level 3 | Interest rate swaps | ' | ' |
Financial Assets | ' | ' |
Interest rate swaps | ' | $0 |
Fair_Value_Measurements_on_a_N
Fair Value Measurements on a Non-Recurring Basis (Details) (Non-Recurring Measurements, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ' | ' |
Other real estate owned | $971 | $10,888 |
Collateral-dependent impaired loans, net of ALLL | 17,567 | 18,670 |
Total assets measured at fair value on a non-recurring basis | 18,538 | 29,558 |
Level 1 | ' | ' |
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ' | ' |
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | ' | ' |
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ' | ' |
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 3 | ' | ' |
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ' | ' |
Other real estate owned | 971 | 10,888 |
Collateral-dependent impaired loans, net of ALLL | 17,567 | 18,670 |
Total assets measured at fair value on a non-recurring basis | $18,538 | $29,558 |
Quantitative_Information_about
Quantitative Information about Level 3 Fair Value Measurements (Details) (Non-Recurring Measurements, USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 18,538 | 29,558 | ||
Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 18,538 | 29,558 | ||
Other real estate owned | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 971 | 10,888 | ||
Other real estate owned | Sales Comparison Approach | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 191 | 9,278 | ||
Other real estate owned | Combined Approach | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 780 | 1,610 | ||
Other real estate owned | Minimum Range | Sales Comparison Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 7.00% | [1] |
Adjustment to Comparables | ' | 0.00% | [1] | |
Other real estate owned | Minimum Range | Combined Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 5.00% | [1] |
Discount Rate | 10.00% | [1] | 8.50% | [1] |
Adjustment to Comparables | ' | 25.00% | [1] | |
Other real estate owned | Maximum Range | Sales Comparison Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 10.00% | [1] |
Adjustment to Comparables | ' | 37.50% | [1] | |
Other real estate owned | Maximum Range | Combined Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 10.00% | [1] |
Discount Rate | 10.00% | [1] | 8.50% | [1] |
Adjustment to Comparables | ' | 25.00% | [1] | |
Other real estate owned | Weighted Average Range | Sales Comparison Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 7.70% | [1] |
Adjustment to Comparables | ' | 1.40% | [1] | |
Other real estate owned | Weighted Average Range | Combined Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 7.50% | [1] |
Discount Rate | 10.00% | [1] | 8.50% | [1] |
Adjustment to Comparables | ' | 25.00% | [1] | |
Collateral-dependent Impaired Loans, Net of ALLL | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 17,567 | 18,670 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Income Approach | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 4,078 | 4,076 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Sales Comparison Approach | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 10,795 | 11,784 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Combined Approach | Level 3 | ' | ' | ||
Quantitative Information About Level 3 Fair Value Measurements | ' | ' | ||
Fair Value | 2,694 | 2,810 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Income Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 8.00% | [1] |
Discount Rate | 8.30% | [1] | 8.30% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Sales Comparison Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 0.00% | [1] | 0.00% | [1] |
Adjustment to Comparables | ' | 0.00% | [1] | |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Combined Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 0.00% | [1] |
Discount Rate | 7.30% | [1] | 7.30% | [1] |
Adjustment to Comparables | 0.00% | [1] | 10.00% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Income Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 8.00% | [1] |
Discount Rate | 8.30% | [1] | 8.30% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Sales Comparison Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 10.00% | [1] | 10.00% | [1] |
Adjustment to Comparables | ' | 1.00% | [1] | |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Combined Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 8.00% | [1] |
Discount Rate | 7.30% | [1] | 7.30% | [1] |
Adjustment to Comparables | 10.00% | [1] | 50.00% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Income Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 8.00% | [1] |
Discount Rate | 8.30% | [1] | 8.30% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Sales Comparison Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 7.90% | [1] |
Adjustment to Comparables | ' | 0.00% | [1] | |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Combined Approach | Level 3 | ' | ' | ||
Unobservable Inputs | ' | ' | ||
Selling Costs | 8.00% | [1] | 7.80% | [1] |
Discount Rate | 7.30% | [1] | 7.30% | [1] |
Adjustment to Comparables | 5.60% | [1] | 18.90% | [1] |
[1] | The range for selling costs and adjustments to comparables indicate reductions to the fair value. |
Carrying_Amount_and_Fair_Value
Carrying Amount and Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ' | ' |
Financial assets | ' | ' |
Cash and cash equivalents | $161,691 | $155,657 |
Investment securities, available-for-sale | 2,669,180 | 3,222,829 |
Investment securities, held-to-maturity | 481,476 | ' |
Loans held for sale | 36,133 | 46,738 |
Loans receivable, net of ALLL | 3,957,900 | 3,932,487 |
Accrued interest receivable | 41,274 | 41,898 |
Non-marketable equity securities | 52,192 | 52,192 |
Interest rate swaps | ' | 1,896 |
Total financial assets | 7,399,846 | 7,453,697 |
Financial liabilities | ' | ' |
Deposits | 5,624,465 | 5,579,967 |
FHLB advances | 686,744 | 840,182 |
Repurchase agreements and other borrowed funds | 335,391 | 321,781 |
Subordinated debentures | 125,597 | 125,562 |
Accrued interest payable | 3,173 | 3,505 |
Interest rate swaps | 3,583 | ' |
Total financial liabilities | 6,778,953 | 6,870,997 |
Estimated Fair Value | Level 1 | ' | ' |
Financial assets | ' | ' |
Cash and cash equivalents | 161,691 | 155,657 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | ' |
Loans held for sale | 36,133 | 46,738 |
Loans receivable, net of ALLL | 0 | 0 |
Accrued interest receivable | 41,274 | 41,898 |
Non-marketable equity securities | 0 | 0 |
Interest rate swaps | ' | 0 |
Total financial assets | 239,098 | 244,293 |
Financial liabilities | ' | ' |
Deposits | 4,315,105 | 4,258,213 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 3,173 | 3,505 |
Interest rate swaps | 0 | ' |
Total financial liabilities | 4,318,278 | 4,261,718 |
Estimated Fair Value | Level 2 | ' | ' |
Financial assets | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities, available-for-sale | 2,669,180 | 3,222,829 |
Investment securities, held-to-maturity | 498,902 | ' |
Loans held for sale | 0 | 0 |
Loans receivable, net of ALLL | 3,840,131 | 3,807,993 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 52,192 | 52,192 |
Interest rate swaps | ' | 1,896 |
Total financial assets | 7,060,405 | 7,084,910 |
Financial liabilities | ' | ' |
Deposits | 1,314,661 | 1,341,382 |
FHLB advances | 703,287 | 857,551 |
Repurchase agreements and other borrowed funds | 335,391 | 321,781 |
Subordinated debentures | 68,673 | 71,501 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 3,583 | ' |
Total financial liabilities | 2,425,595 | 2,592,215 |
Estimated Fair Value | Level 3 | ' | ' |
Financial assets | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | ' |
Loans held for sale | 0 | 0 |
Loans receivable, net of ALLL | 181,948 | 187,731 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 0 | 0 |
Interest rate swaps | ' | 0 |
Total financial assets | 181,948 | 187,731 |
Financial liabilities | ' | ' |
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | ' |
Total financial liabilities | $0 | $0 |