Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 19, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GLACIER BANCORP INC | ||
Entity Central Index Key | 868671 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,087,026,461 | ||
Entity Common Stock, Shares Outstanding | 75,085,510 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ||
Cash on hand and in banks | $122,834 | $109,995 |
Federal funds sold | 1,025 | 10,527 |
Interest bearing cash deposits | 318,550 | 35,135 |
Cash and cash equivalents | 442,409 | 155,657 |
Investment securities, available-for-sale | 2,387,428 | 3,222,829 |
Investment securities, held-to-maturity | 520,997 | 0 |
Total investment securities | 2,908,425 | 3,222,829 |
Loans held for sale | 46,726 | 46,738 |
Loans receivable | 4,488,095 | 4,062,838 |
Allowance for loan and lease losses | -129,753 | -130,351 |
Loans receivable, net | 4,358,342 | 3,932,487 |
Premises and equipment, net | 179,175 | 167,671 |
Other real estate owned | 27,804 | 26,860 |
Accrued interest receivable | 40,587 | 41,898 |
Deferred tax asset | 41,737 | 43,549 |
Core deposit intangible, net | 10,900 | 9,512 |
Goodwill | 129,706 | 129,706 |
Non-marketable equity securities | 52,868 | 52,192 |
Other assets | 67,828 | 55,251 |
Total assets | 8,306,507 | 7,884,350 |
Liabilities | ||
Non-interest bearing deposits | 1,632,403 | 1,374,419 |
Interest bearing deposits | 4,712,809 | 4,205,548 |
Securities sold under agreements to repurchase | 397,107 | 313,394 |
Federal Home Loan Bank advances | 296,944 | 840,182 |
Other borrowed funds | 7,311 | 8,387 |
Subordinated debentures | 125,705 | 125,562 |
Accrued interest payable | 4,155 | 3,505 |
Other liabilities | 102,026 | 50,103 |
Total liabilities | 7,278,460 | 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 | 750 | 744 |
Paid-in capital | 708,356 | 690,918 |
Retained earnings - substantially restricted | 301,197 | 261,943 |
Accumulated other comprehensive income | 17,744 | 9,645 |
Total stockholders’ equity | 1,028,047 | 963,250 |
Total liabilities and stockholders’ equity | $8,306,507 | $7,884,350 |
Number of common stock shares issued and outstanding | 75,026,092 | 74,373,296 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
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 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Income | |||
Residential real estate loans | $30,721 | $29,525 | $30,850 |
Commercial loans | 145,631 | 127,450 | 121,425 |
Consumer and other loans | 30,515 | 32,089 | 35,096 |
Investment securities | 93,052 | 74,512 | 66,386 |
Total interest income | 299,919 | 263,576 | 253,757 |
Interest Expense | |||
Deposits | 13,195 | 13,870 | 18,183 |
Securities sold under agreements to repurchase | 865 | 867 | 1,308 |
Federal Home Loan Bank advances | 9,570 | 10,610 | 12,566 |
Federal funds purchased and other borrowed funds | 199 | 206 | 229 |
Subordinated debentures | 3,137 | 3,205 | 3,428 |
Total interest expense | 26,966 | 28,758 | 35,714 |
Net Interest Income | 272,953 | 234,818 | 218,043 |
Provision for loan losses | 1,912 | 6,887 | 21,525 |
Net interest income after provision for loan losses | 271,041 | 227,931 | 196,518 |
Non-Interest Income | |||
Service charges and other fees | 54,089 | 49,478 | 45,343 |
Miscellaneous loan fees and charges | 4,696 | 4,982 | 4,363 |
Gain on sale of loans | 19,797 | 28,517 | 32,227 |
Loss on sale of investments | -188 | -299 | 0 |
Other income | 11,908 | 10,369 | 9,563 |
Total non-interest income | 90,302 | 93,047 | 91,496 |
Non-Interest Expense | |||
Compensation and employee benefits | 118,571 | 104,221 | 95,373 |
Occupancy and equipment | 27,498 | 24,875 | 23,837 |
Advertising and promotions | 7,912 | 6,913 | 6,413 |
Data processing | 6,607 | 4,493 | 3,324 |
Other real estate owned | 2,568 | 7,196 | 18,964 |
Regulatory assessments and insurance | 5,064 | 6,362 | 7,313 |
Core deposit intangible amortization | 2,811 | 2,401 | 2,110 |
Other expense | 41,648 | 38,856 | 36,087 |
Total non-interest expense | 212,679 | 195,317 | 193,421 |
Income Before Income Taxes | 148,664 | 125,661 | 94,593 |
Federal and state income tax expense | 35,909 | 30,017 | 19,077 |
Net Income | $112,755 | $95,644 | $75,516 |
Basic earnings per share | $1.51 | $1.31 | $1.05 |
Diluted earnings per share | $1.51 | $1.31 | $1.05 |
Dividends declared per share | $0.98 | $0.60 | $0.53 |
Average outstanding shares - basic | 74,641,957 | 73,191,713 | 71,928,570 |
Average outstanding shares - diluted | 74,687,315 | 73,260,278 | 71,928,656 |
Statements_of_Comprehensive_In
Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $112,755 | $95,644 | $75,516 |
Other Comprehensive Income (Loss), Net of Tax | |||
Unrealized gains (losses) on available-for-sale securities | 31,569 | -81,739 | 31,617 |
Reclassification adjustment for losses included in net income | 204 | 299 | 0 |
Net unrealized gains (losses) on available-for-sale securities | 31,773 | -81,440 | 31,617 |
Tax effect | -12,313 | 31,680 | -12,300 |
Net of tax amount | 19,460 | -49,760 | 19,317 |
Unrealized (losses) gains on derivatives used for cash flow hedges | -19,557 | 18,728 | -7,926 |
Reclassification adjustment for losses included in net income | 993 | 0 | 0 |
Net unrealized (losses) gains on derivatives used for cash flow hedges | -18,564 | 18,728 | -7,926 |
Tax effect | 7,203 | -7,285 | 3,084 |
Net of tax amount | -11,361 | 11,443 | -4,842 |
Total other comprehensive income (loss), net of tax | 8,099 | -38,317 | 14,475 |
Total Comprehensive Income | $120,854 | $57,327 | $89,991 |
Consolidated_Statements_of_Cha
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 at Dec. 31, 2011 | $850,227 | $719 | $642,882 | $173,139 | $33,487 |
Balance, shares at Dec. 31, 2011 | 71,915,073 | ||||
Net income | 75,516 | 75,516 | |||
Comprehensive income (loss), accumulated other comprehensive income | 14,475 | 14,475 | |||
Comprehensive income (loss), total | 89,991 | ||||
Cash dividends declared | -38,124 | -38,124 | |||
Stock issuances under stock incentive plans, shares | 22,149 | ||||
Stock issuances under stock incentive plans, value | 323 | 0 | 323 | ||
Stock-based compensation and related taxes | -1,468 | -1,468 | |||
Balance at Dec. 31, 2012 | 900,949 | 719 | 641,737 | 210,531 | 47,962 |
Balance, shares at Dec. 31, 2012 | 71,937,222 | ||||
Net income | 95,644 | 95,644 | |||
Comprehensive income (loss), accumulated other comprehensive income | -38,317 | -38,317 | |||
Comprehensive income (loss), total | 57,327 | ||||
Cash dividends declared | -44,232 | -44,232 | |||
Stock issuances under stock incentive plans, shares | 292,942 | ||||
Stock issuances under stock incentive plans, value | 4,507 | 3 | 4,504 | ||
Stock issued in connection with acquisitions, shares | 2,143,132 | ||||
Stock issued in connection with acquisitions, value | 45,033 | 22 | 45,011 | ||
Stock-based compensation and related taxes | -334 | -334 | |||
Balance at Dec. 31, 2013 | 963,250 | 744 | 690,918 | 261,943 | 9,645 |
Balance, shares at Dec. 31, 2013 | 74,373,296 | 74,373,296 | |||
Net income | 112,755 | 112,755 | |||
Comprehensive income (loss), accumulated other comprehensive income | 8,099 | 8,099 | |||
Comprehensive income (loss), total | 120,854 | ||||
Cash dividends declared | -73,501 | -73,501 | |||
Stock issuances under stock incentive plans, shares | 97,064 | ||||
Stock issuances under stock incentive plans, value | 784 | 1 | 783 | ||
Stock issued in connection with acquisitions, shares | 555,732 | ||||
Stock issued in connection with acquisitions, value | 15,127 | 5 | 15,122 | ||
Stock-based compensation and related taxes | 1,533 | 1,533 | |||
Balance at Dec. 31, 2014 | $1,028,047 | $750 | $708,356 | $301,197 | $17,744 |
Balance, shares at Dec. 31, 2014 | 75,026,092 | 75,026,092 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends declared per share | $0.98 | $0.60 | $0.53 |
Retained Earnings Substantially Restricted | |||
Cash dividends declared per share | $0.98 | $0.60 | $0.53 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $112,755 | $95,644 | $75,516 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 1,912 | 6,887 | 21,525 |
Net amortization of investment securities premiums and discounts | 27,491 | 64,066 | 71,992 |
Loans held for sale originated or acquired | -669,144 | -918,451 | -1,188,632 |
Proceeds from sales of loans held for sale | 705,178 | 1,084,799 | 1,204,431 |
Gain on sale of loans | -19,797 | -28,517 | -32,227 |
Loss on sale of investments | 188 | 299 | 0 |
Bargain purchase gain | -680 | 0 | 0 |
Stock-based compensation expense, net of tax benefits | 859 | 1,011 | 254 |
Excess tax (benefits) deficiencies from stock-based compensation | -138 | 223 | 8 |
Depreciation of premises and equipment | 12,108 | 10,485 | 10,615 |
(Gain) loss on sale of other real estate owned and write-downs, net | -937 | 1,450 | 13,311 |
Core deposit intangible amortization | 2,811 | 2,401 | 2,110 |
Deferred tax benefit | 5,931 | 4,633 | 837 |
Net decrease (increase) in accrued interest receivable | 2,648 | -265 | -2,809 |
Net (increase) decrease in other assets | -5,702 | 19,881 | -3,291 |
Net decrease (increase) in accrued interest payable | 567 | -1,354 | -1,150 |
Net increase (decrease) in other liabilities | 6,684 | -9,097 | 11,303 |
Net cash provided by operating activities | 182,734 | 334,095 | 183,793 |
Investing Activities | |||
Sales of available-for-sale securities | 169,372 | 181,971 | 0 |
Maturities, prepayments and calls of available-for-sale securities | 628,238 | 1,682,363 | 2,041,416 |
Purchases of available-for-sale securities | -281,332 | -1,426,262 | -2,638,054 |
Maturities, prepayments and calls of held-to-maturity securities | 8,930 | 0 | 0 |
Purchases of held-to-maturity securities | -49,691 | 0 | 0 |
Principal collected on loans | 1,418,517 | 1,224,222 | 1,034,374 |
Loans originated or acquired | -1,735,155 | -1,559,353 | -1,049,344 |
Net addition of premises and equipment and other real estate owned | -14,389 | -8,977 | -10,730 |
Proceeds from sale of other real estate owned | 15,714 | 28,535 | 41,804 |
Net sale of non-marketable equity securities | 801 | 583 | 888 |
Net cash (paid) received in acquisitions | -2,112 | 26,155 | 0 |
Net cash provided by (used in) investing activities | 158,893 | 149,237 | -579,646 |
Financing Activities | |||
Net increase (decrease) in deposits | 455,604 | -334,672 | 543,248 |
Net increase in securities sold under agreements to repurchase | 83,713 | 23,886 | 30,865 |
Net decrease in Federal Home Loan Bank advances | -543,238 | -162,298 | -72,033 |
Net decrease (increase) in other borrowed funds | -933 | -1,502 | 180 |
Cash dividends paid | -50,944 | -44,232 | -47,472 |
Excess tax benefits (deficiencies) from stock-based compensation | 138 | -223 | -8 |
Stock-based compensation activity | 785 | 4,326 | 81 |
Net cash (used in) provided by financing activities | -54,875 | -514,715 | 454,861 |
Net increase (decrease) in cash and cash equivalents | 286,752 | -31,383 | 59,008 |
Cash and cash equivalents at beginning of period | 155,657 | 187,040 | 128,032 |
Cash and cash equivalents at end of period | 442,409 | 155,657 | 187,040 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid during the period for interest | 26,398 | 30,111 | 36,865 |
Cash paid during the period for income taxes | 33,343 | 23,576 | 21,257 |
Supplemental Disclosure of Non-Cash Investing Activities | |||
Transfer of investment securities from available-for-sale to held-to-maturity | 484,583 | 0 | 0 |
Sale and refinancing of other real estate owned | 1,361 | 4,819 | 5,659 |
Transfer of loans to other real estate owned | 11,493 | 15,266 | 27,536 |
Fair value of common stock shares issued | 15,127 | 45,033 | 0 |
Cash consideration for outstanding shares | 16,690 | 24,858 | 0 |
Fair value of assets acquired | 349,167 | 630,569 | 0 |
Liabilities assumed | $316,670 | $560,678 | $0 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 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 individuals and businesses in Montana, Idaho, Wyoming, Colorado, Utah and Washington through 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. | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
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 valuation of investment securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) 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 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 August 2014, the Company completed its acquisition of FNBR Holding Corporation (“FNBR”) and its wholly-owned subsidiary, First National Bank of the Rockies, a community bank based in Grand Junction, Colorado. In July 2013, the Company completed its acquisition of North Cascades Bancshares, Inc. (“NCBI”) and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. In May 2013, the Company acquired Wheatland Bankshares, Inc. (“Wheatland”) and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. The 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 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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
Pending Acquisition | |||||||||||||
On November 5, 2014, the Company announced the signing of a definitive agreement to acquire Montana Community Banks, Inc. (“Community”) and its wholly-owned subsidiary, Community Bank, Inc., a community bank based in Ronan, Montana. Community provides banking services to individuals and businesses in western Montana, with banking offices located in Missoula, Polson, Ronan and Pablo, Montana. As of December 31, 2014, Community had total assets of $175,041,000, gross loans of $92,952,000 and total deposits of $149,544,000. All necessary regulatory approvals and waivers have been obtained and closing is anticipated to take place in the first quarter of 2015. The branches of Community will be merged into Glacier Bank and will become part of the Glacier Bank and First Security Bank of Missoula bank divisions. | |||||||||||||
Variable Interest Entities | |||||||||||||
A variable interest entity (“VIE”) exists when either 1) the entity’s total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or 2) the entity has equity investors that cannot make significant decisions about the entity’s operations or that do not absorb their proportionate share of the expected losses or receive the expected returns of the entity. In addition, a VIE must be consolidated by the Company if it is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has the power to direct the VIE’s significant activities and will absorb a majority of the expected losses, receive a majority of the expected residual returns, or both. The Company’s VIEs are regularly monitored to determine if any reconsideration events have occurred that could cause the primary beneficiary status to change. | |||||||||||||
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 VIEs. The underlying activities of the VIEs are community development projects designed primarily to promote community welfare, such as economic rehabilitation and development of low-income areas by providing housing, services, or jobs for residents. The maximum exposure to loss in the VIEs is the amount of equity invested and credit extended by the Company. However, the Company has credit protection in the form of indemnification agreements, guarantees, and collateral arrangements. The primary activities of the VIEs are recognized in commercial loans interest income, other non-interest income and other borrowed funds interest expense on the Company’s statements of operations. Such related cash flows are recognized in loans originated, principal collected on loans and change in other borrowed funds. The Company has evaluated the variable interests held by the Company in each CDE (NMTC) and LIHTC partnership investment and determined that the Company continues to be the primary beneficiary of such VIEs. As the primary beneficiary, the VIEs’ assets, liabilities, and results of operations are included in the Company’s consolidated financial statements. | |||||||||||||
The following table summarizes the carrying amounts of the VIEs’ assets and liabilities included in the Company’s consolidated financial statements at December 31, 2014 and 2013: | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
(Dollars in thousands) | CDE (NMTC) | LIHTC | CDE (NMTC) | LIHTC | |||||||||
Assets | |||||||||||||
Loans receivable | $ | 36,077 | — | 36,039 | — | ||||||||
Premises and equipment, net | — | 13,106 | — | 13,536 | |||||||||
Accrued interest receivable | 116 | — | 117 | — | |||||||||
Other assets | 616 | 258 | 843 | 153 | |||||||||
Total assets | $ | 36,809 | 13,364 | 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 | 185 | — | 151 | 189 | |||||||||
Total liabilities | $ | 4,744 | 1,695 | 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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents include cash on hand, cash held as demand deposits at various banks and the Federal Reserve Bank (“FRB”), interest bearing deposits, federal funds sold, and liquid investments with original maturities of three months or less. | |||||||||||||
Investment Securities | |||||||||||||
Debt securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Debt and equity securities held primarily for the purpose of selling in the near term are classified as trading securities and are reported at fair market value, with unrealized gains and losses included in income. Debt and equity securities not classified as held-to-maturity or trading are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of other comprehensive income. Premiums and discounts on investment securities are amortized or accreted into income using a method that approximates the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. The Company does not have any investment securities classified as trading securities. | |||||||||||||
The Company reviews and analyzes the various risks that may be present within the investment portfolio on an ongoing basis, including market risk and credit risk. Market risk is the risk to an entity’s financial condition resulting from adverse changes in the value of its holdings arising from movements in interest rates, foreign exchange rates, equity prices or commodity prices. The Company assesses the market risk of individual securities as well as the investment portfolio as a whole. Credit risk, broadly defined, is the risk that an issuer or counterparty will fail to perform on an obligation. A security is investment grade if the issuer has an adequate capacity to meet its commitment over the expected life of the investment, i.e., the risk of default is low and full and timely repayment of interest and principal is expected. To determine investment grade status for securities, the Company conducts due diligence of the creditworthiness of the issuer or counterparty prior to acquisition and ongoing thereafter consistent with the risk characteristics of the security and the overall risk of the investment portfolio. Credit quality due diligence takes into account the extent to which a security is guaranteed by the U.S. government and other agencies of the U.S. government. The depth of the due diligence is based on the complexity of the structure, the size of the security, and takes into account material positions and specific groups of securities or stratifications for analysis and review of similar risk positions. The due diligence includes consideration of payment performance, collateral adequacy, internal analyses, third party research and analytics, external credit ratings and default statistics. | |||||||||||||
For additional information relating to investment securities, see Note 3. | |||||||||||||
Temporary versus Other-Than-Temporary Impairment | |||||||||||||
The Company assesses individual securities in its investment portfolio for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. An investment is impaired if the fair value of the security is less than its carrying value at the financial statement date. If impairment is determined to be other-than-temporary, an impairment loss is recognized by reducing the amortized cost for the credit loss portion of the impairment with a corresponding charge to earnings for a like amount. | |||||||||||||
In evaluating impaired securities for other-than-temporary impairment losses, management considers 1) the severity and duration of the impairment; 2) the credit ratings of the security; and 3) the overall deal structure, including the Company’s position within the structure, the overall and near term financial performance of the issuer and underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, discounted cash flows and fair value estimates. | |||||||||||||
In evaluating debt securities for other-than-temporary impairment losses, management assesses whether the Company intends to sell the security or if it is more-likely-than-not that the Company will be required to sell the debt security. In so doing, management considers contractual constraints, liquidity, capital, asset / liability management and securities portfolio objectives. If impairment is determined to be other-than-temporary and the Company does not intend to sell a debt security, and it is more-likely-than-not the Company will not be required to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion (noncredit portion) in other comprehensive income, net of tax. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively, as an increase to the carrying amount of the security, over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |||||||||||||
If impairment is determined to be other-than-temporary and the Company intends to sell a debt security or it is more-likely-than-not the Company will be required to sell the security before recovery of its cost basis, it recognizes the entire amount of the other-than-temporary impairment in earnings. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
For debt securities with other-than-temporary impairment, the previous amortized cost basis less the other-than-temporary impairment recognized in earnings shall be the new amortized cost basis of the security. In subsequent periods, the Company accretes into interest income the difference between the new amortized cost basis and cash flows expected to be collected prospectively over the life of the debt security. | |||||||||||||
Loans Held for Sale | |||||||||||||
Loans held for sale generally consist of long-term, fixed rate, conforming, single-family residential real estate loans and are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized by charges to non-interest income. A sale is recognized when the Company surrenders control of the loan and consideration, is received in exchange. A gain is recognized in non-interest income to the extent the sales price exceeds the carrying value of the sold loan. | |||||||||||||
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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. 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 4. | |||||||||||||
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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. | |||||||||||||
Premises and Equipment | |||||||||||||
Premises and equipment are accounted for at cost less depreciation. Depreciation is computed on a straight-line method over the estimated useful lives or the term of the related lease. The estimated useful life for office buildings is 15 - 40 years and the estimated useful life for furniture, fixtures, and equipment is 3 - 10 years. Interest is capitalized for any significant building projects. For additional information relating to premises and equipment, see Note 5. | |||||||||||||
Leases | |||||||||||||
The Company leases certain land, premises and equipment from third parties under operating and capital leases. The lease payments for operating lease agreements are recognized on a straight-line basis. The present value of the future minimum rental payments for capital leases is recognized as an asset when the lease is formed. Lease improvements incurred at the inception of the lease are recorded as an asset and depreciated over the initial term of the lease and lease improvements incurred subsequently are depreciated over the remaining term of the lease. For additional information relating to leases, see Note 5. | |||||||||||||
Other Real Estate Owned | |||||||||||||
Property acquired by foreclosure or deed-in-lieu of foreclosure is initially recorded at fair value, less estimated selling cost, at acquisition date (i.e., cost of the property). The Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon the occurrence of either the Company obtaining legal title to the property or the borrower conveying all interest in the property through a deed-in-lieu or similar agreement. Fair value is determined as the amount that could be reasonably expected in a current sale between a willing buyer and a willing seller in an orderly transaction between market participants at the measurement date. Subsequent to the initial acquisition, if the fair value of the asset, less estimated selling cost, is less than the cost of the property, a loss is recognized in other expense and the asset carrying value is reduced. Gain or loss on disposition of other real estate owned (“OREO”) is recorded in non-interest income or non-interest expense, respectively. In determining the fair value of the properties on the date of transfer and any subsequent estimated losses of net realizable value, the fair value of other real estate acquired by foreclosure or deed-in-lieu of foreclosure is determined primarily based upon appraisal or evaluation of the underlying property value. | |||||||||||||
Long-lived Assets | |||||||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is deemed impaired if the sum of the expected future cash flows is less than the carrying amount of the asset. If impaired, an impairment loss is recognized in other expense to reduce the carrying value of the asset to fair value. At December 31, 2014 and 2013, no long-lived assets were considered impaired. | |||||||||||||
Business Combinations and Intangible Assets | |||||||||||||
Acquisition accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets. Goodwill is recorded if the purchase price exceeds the net fair value of assets acquired and a bargain purchase gain is recorded in other income if the net fair value of assets acquired exceeds the purchase price. | |||||||||||||
Adjustment of the allocated purchase price may be related to fair value estimates for which all information has not been obtained of the acquired entity known or discovered during the allocation period, the period of time required to identify and measure the fair values of the assets and liabilities acquired in the business combination. The allocation period is generally limited to one year following consummation of a business combination. | |||||||||||||
Core deposit intangible represents the intangible value of depositor relationships resulting from deposit liabilities assumed in acquisitions and is amortized using an accelerated method based on an estimated runoff of the related deposits. The core deposit intangible is evaluated for impairment and recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. For additional information relating to core deposit intangibles, see Note 6. | |||||||||||||
The Company tests goodwill for impairment at the reporting unit level annually during the third quarter. The Company has identified that each of the bank divisions are reporting units (i.e., components of the Glacier Bank operating segment) given that each division has a separate management team that regularly reviews its respective division financial information; however, the reporting units are aggregated into a single reporting unit due to the reporting units having similar economic characteristics. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
The goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting units below its carrying amount. Examples of events and circumstances that could trigger the need for interim impairment testing include: | |||||||||||||
• | A significant change in legal factors or in the business climate; | ||||||||||||
• | An adverse action or assessment by a regulator; | ||||||||||||
• | Unanticipated competition; | ||||||||||||
• | A loss of key personnel; | ||||||||||||
• | A more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; and | ||||||||||||
• | The testing for recoverability of a significant asset group within a reporting unit. | ||||||||||||
For the goodwill impairment assessment, the Company has the option, prior to the two-step process, to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. The Company opted to bypass the qualitative assessment for its 2014 and 2013 annual goodwill impairment testing and proceed directly to the two-step goodwill impairment test. The goodwill impairment two-step process requires the Company to make assumptions and judgments regarding fair value. In the first step, the Company calculates an implied fair value based on a control premium analysis. If the implied fair value is less than the carrying value, the second step is completed to compute the impairment amount, if any, by determining the “implied fair value” of goodwill. This determination requires the allocation of the estimated fair value of the reporting units to the assets and liabilities of the reporting units. Any remaining unallocated fair value represents the “implied fair value” of goodwill, which is compared to the corresponding carrying value of goodwill to compute impairment, if any. | |||||||||||||
For additional information relating to goodwill, see Note 6. | |||||||||||||
Non-Marketable Equity Securities | |||||||||||||
Non-marketable equity securities primarily consists of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Company’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. | |||||||||||||
Bank-Owned Life Insurance | |||||||||||||
The Company maintains bank-owned life insurance policies on certain current and former employees and directors, which are recorded at their cash surrender values as determined by the insurance carriers. At December 31, 2014 and 2013, the carrying value associated with these policies is $46,030,000 and $37,617,000, respectively, and is recorded in other assets in the Company’s statements of financial position. The appreciation in the cash surrender value of the policies is recognized as a component of other non-interest income in the Company’s statements of operations. | |||||||||||||
Derivatives and Hedging Activities | |||||||||||||
For asset and liability management purposes, the Company has entered into interest rate swap agreements to hedge against changes in forecasted cash flows due to interest rate exposures. The interest rate swaps are recognized as assets or liabilities on the Company’s statements of financial condition and measured at fair value. Fair value estimates are obtained from third parties and are based on pricing models. The Company does not enter into interest rate swap agreements for trading or speculative purposes. | |||||||||||||
The Company takes into account the impact of bilateral collateral and master netting agreements that allows the Company to settle all interest rate swap agreements held with a single counterparty on a net basis, and to offset the net interest rate swap derivative position with the related collateral when recognizing interest rate swap derivative assets and liabilities. | |||||||||||||
Interest rate swaps are contracts in which a series of interest payments are exchanged over a prescribed period. The notional amount upon which the interest payments are based is not exchanged. The swap agreements are derivative instruments and convert a portion of the Company’s forecasted variable rate debt to a fixed rate (i.e., cash flow hedge) over the payment term of the interest rate swap. The effective portion of the gain or loss on the cash flow hedging instruments is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same period during which the transaction affects earnings. The ineffective portion of the gain or loss on derivative instruments, if any, is recognized in earnings. For the years ended December 31, 2014, 2013, and 2012, the Company’s cash flow hedges were determined to be fully effective. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, highly effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Derivative financial instruments that do not meet specified hedging criteria are recorded at fair value with changes in fair value recorded in income. The Company’s interest rate swaps are considered highly effective and currently meet the hedging accounting criteria. | |||||||||||||
Cash flows resulting from the interest rate derivative financial instruments that are accounted for as hedges of assets and liabilities are classified in the Company’s cash flow statement in the same category as the cash flows of the items being hedged. For additional information relating to interest rate swap agreements, see Note 10. | |||||||||||||
The Company also has residential real estate derivatives for commitments to fund certain residential real estate loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of residential real estate loans to third party investors on a best efforts basis. It is the Company’s practice to enter into forward commitments for the future delivery of residential real estate loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These derivatives are not designated in hedge relationships. Such derivatives are short-term in nature and changes in fair value are not recorded as gains on sale of loans because the change is not significant. | |||||||||||||
Stock-based Compensation | |||||||||||||
Stock-based compensation awards granted, comprised of stock options and restricted stock awards, are valued at fair value and compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of each award. For additional information relating to stock-based compensation, see Note 12. | |||||||||||||
Advertising and Promotion | |||||||||||||
Advertising and promotion costs are recognized in the period incurred. | |||||||||||||
Income Taxes | |||||||||||||
The Company’s income tax expense consists of current and deferred income tax expense. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to earnings or losses. Deferred income tax expense results from changes in deferred assets and liabilities between periods. | |||||||||||||
Deferred tax assets and liabilities are recognized for estimated future income tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||
Deferred tax assets are reduced by a valuation allowance, if based on the weight of available evidence, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The term more-likely-than-not means a likelihood of more than fifty percent. The recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the Company’s judgment. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence. For additional information relating to income taxes, see Note 15. | |||||||||||||
Comprehensive Income | |||||||||||||
Comprehensive income consists of net income and other comprehensive income (“OCI”). OCI includes unrealized gains and losses, net of tax effect, on available-for-sale securities and derivatives used for cash flow hedges. | |||||||||||||
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, using the treasury stock method. For additional information relating to earnings per share, see Note 17. | |||||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to the 2013 and 2012 financial statements to conform to the 2014 presentation. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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 August 2014, FASB amended FASB ASC Subtopic 310-40, Receivables - Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The amendment requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: 1) The loan has a government guarantee that is not separable from the loan before foreclosure; 2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and 3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. 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 prospective transition method or a modified retrospective method as defined in the amendment. The Company has evaluated the impact of the adoption of this amendment and determined there would not be a material effect on the Company’s financial position or results of operations. | |||||||||||||
In June 2014, FASB amended FASB ASC Topic 860, Transfers and Servicing. The amendments in this Update require the following two accounting changes: 1) change the accounting for repurchase-to-maturity transactions to secured borrowing accounting; and 2) for repurchase finance arrangements, require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in a secured borrowing accounting for the repurchase agreement. The amendments also require certain disclosures for securities sold under agreements to repurchase (“repurchase agreements”), securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The accounting changes are effective for public business entities for the first interim or annual reporting periods beginning after December 15, 2014. Early application for public business entities is not permitted. The disclosure changes for repurchase agreements are effective for public business entities for annual reporting 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. | |||||||||||||
In May 2014, FASB amended FASB ASC Topic 606, Revenue from Contracts with Customers. The amendments clarify the principals for recognizing revenue and develop a common revenue standard among industries. The new guidance establishes the following core principal: recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. Five steps are provided for a company or organization to follow to achieve such core principle. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period. Early application is not permitted. The entity should apply the amendments using one of two retrospective methods described in the amendment. 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. | |||||||||||||
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 has evaluated the impact of the adoption of this amendment and determined there was not a material effect on the Company’s financial position or results of operations. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. |
Cash_on_Hand_and_in_Banks
Cash on Hand and in Banks | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash on Hand and in Banks | Cash on Hand and in Banks |
The Bank is required to maintain an average reserve balance with either FRB or in the form of cash on hand. The required reserve balance at December 31, 2014 was $33,177,000. |
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||
Investment Securities | Investment Securities | ||||||||||||||||||
Effective January 1, 2014, the Company redesignated 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-Dec-14 | |||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||
(Dollars in thousands) | Gains | Losses | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government and federal agency | $ | 44 | — | — | 44 | ||||||||||||||
U.S. government sponsored enterprises | 21,916 | 31 | (2 | ) | 21,945 | ||||||||||||||
State and local governments | 962,365 | 40,173 | (4,569 | ) | 997,969 | ||||||||||||||
Corporate bonds | 313,545 | 2,059 | (750 | ) | 314,854 | ||||||||||||||
Residential mortgage-backed securities | 1,043,897 | 11,205 | (2,486 | ) | 1,052,616 | ||||||||||||||
Total available-for-sale | 2,341,767 | 53,468 | (7,807 | ) | 2,387,428 | ||||||||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | 520,997 | 32,925 | (2,976 | ) | 550,946 | ||||||||||||||
Total held-to-maturity | 520,997 | 32,925 | (2,976 | ) | 550,946 | ||||||||||||||
Total investment securities | $ | 2,862,764 | 86,393 | (10,783 | ) | 2,938,374 | |||||||||||||
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 | 1,380,816 | 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 | |||||||||||||
Note 3. Investment Securities (continued) | |||||||||||||||||||
The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at December 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-Dec-14 | |||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||
Due within one year | $ | 126,102 | 126,779 | — | — | ||||||||||||||
Due after one year through five years | 367,037 | 370,349 | — | — | |||||||||||||||
Due after five years through ten years | 90,172 | 93,356 | 188 | 188 | |||||||||||||||
Due after ten years | 714,559 | 744,328 | 520,809 | 550,758 | |||||||||||||||
1,297,870 | 1,334,812 | 520,997 | 550,946 | ||||||||||||||||
Residential mortgage-backed securities 1 | 1,043,897 | 1,052,616 | — | — | |||||||||||||||
Total | $ | 2,341,767 | 2,387,428 | 520,997 | 550,946 | ||||||||||||||
________ | |||||||||||||||||||
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: | |||||||||||||||||||
Years ended | |||||||||||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
Gross proceeds | $ | 219,849 | 181,971 | — | |||||||||||||||
Less amortized cost 1 | (220,053 | ) | (182,270 | ) | — | ||||||||||||||
Net available-for-sale | $ | (204 | ) | (299 | ) | — | |||||||||||||
Gross gain on sale of investments | $ | 501 | 3,723 | — | |||||||||||||||
Gross loss on sale of investments | (705 | ) | (4,022 | ) | — | ||||||||||||||
Net available-for-sale | $ | (204 | ) | (299 | ) | — | |||||||||||||
Held-to-maturity 2 | |||||||||||||||||||
Gross proceeds | $ | 8,930 | — | — | |||||||||||||||
Less amortized cost 1 | (8,914 | ) | — | — | |||||||||||||||
Net held-to-maturity | $ | 16 | — | — | |||||||||||||||
Gross gain on sale of investments | $ | 22 | — | — | |||||||||||||||
Gross loss on sale of investments | (6 | ) | — | — | |||||||||||||||
Net held-to-maturity | $ | 16 | — | — | |||||||||||||||
__________ | |||||||||||||||||||
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. | |||||||||||||||||||
Note 3. Investment Securities (continued) | |||||||||||||||||||
At December 31, 2014 and 2013, the Company had investment securities with carrying values of $1,673,263,000 and $1,635,316,000, respectively, pledged as collateral for FHLB advances, FRB discount window borrowings, repurchase agreements, interest rate swap agreements and deposits of several local government units. | |||||||||||||||||||
Investment securities with an unrealized loss position are summarized as follows: | |||||||||||||||||||
31-Dec-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 and federal agency | $ | — | — | 3 | — | 3 | — | ||||||||||||
U.S. government sponsored enterprises | 13,793 | (2 | ) | — | — | 13,793 | (2 | ) | |||||||||||
State and local governments | 91,082 | (1,273 | ) | 115,927 | (3,296 | ) | 207,009 | (4,569 | ) | ||||||||||
Corporate bonds | 60,289 | (545 | ) | 7,874 | (205 | ) | 68,163 | (750 | ) | ||||||||||
Residential mortgage-backed securities | 192,962 | (926 | ) | 78,223 | (1,560 | ) | 271,185 | (2,486 | ) | ||||||||||
Total available-for-sale | $ | 358,126 | (2,746 | ) | 202,027 | (5,061 | ) | 560,153 | (7,807 | ) | |||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | $ | 18,643 | (624 | ) | 76,761 | (2,352 | ) | 95,404 | (2,976 | ) | |||||||||
Total held-to-maturity | $ | 18,643 | (624 | ) | 76,761 | (2,352 | ) | 95,404 | (2,976 | ) | |||||||||
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 December 31, 2014 and 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 December 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 | 12 Months Ended | ||||||||||||||||||
Dec. 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: | |||||||||||||||||||
Year ended December 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 | 1,912 | 716 | (2,877 | ) | 3,708 | 1,254 | (889 | ) | |||||||||||
Charge-offs | (7,603 | ) | (431 | ) | (1,802 | ) | (3,058 | ) | (1,038 | ) | (1,274 | ) | |||||||
Recoveries | 5,093 | 328 | 2,146 | 1,611 | 448 | 560 | |||||||||||||
Balance at end of period | $ | 129,753 | 14,680 | 67,799 | 30,891 | 9,963 | 6,420 | ||||||||||||
Year ended December 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 | 6,887 | (921 | ) | (3,670 | ) | 10,271 | 868 | 339 | |||||||||||
Charge-offs | (13,643 | ) | (793 | ) | (3,736 | ) | (4,671 | ) | (2,594 | ) | (1,849 | ) | |||||||
Recoveries | 6,253 | 299 | 3,340 | 1,463 | 366 | 785 | |||||||||||||
Balance at end of period | $ | 130,351 | 14,067 | 70,332 | 28,630 | 9,299 | 8,023 | ||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||
(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 | $ | 137,516 | 17,227 | 76,920 | 20,833 | 13,616 | 8,920 | ||||||||||||
Provision for loan losses | 21,525 | 2,879 | 11,012 | 4,690 | 324 | 2,620 | |||||||||||||
Charge-offs | (34,672 | ) | (5,267 | ) | (16,339 | ) | (5,239 | ) | (4,369 | ) | (3,458 | ) | |||||||
Recoveries | 6,485 | 643 | 2,805 | 1,283 | 1,088 | 666 | |||||||||||||
Balance at end of period | $ | 130,854 | 15,482 | 74,398 | 21,567 | 10,659 | 8,748 | ||||||||||||
Note 4. Loans Receivable, Net (continued) | |||||||||||||||||||
The following schedules disclose the ALLL and loans receivable: | |||||||||||||||||||
31-Dec-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 | $ | 11,597 | 853 | 2,967 | 6,836 | 447 | 494 | ||||||||||||
Collectively evaluated for impairment | 118,156 | 13,827 | 64,832 | 24,055 | 9,516 | 5,926 | |||||||||||||
Total allowance for loan and lease losses | $ | 129,753 | 14,680 | 67,799 | 30,891 | 9,963 | 6,420 | ||||||||||||
Loans receivable | |||||||||||||||||||
Individually evaluated for impairment | $ | 161,366 | 19,576 | 105,264 | 25,321 | 6,901 | 4,304 | ||||||||||||
Collectively evaluated for impairment | 4,326,729 | 591,887 | 2,232,284 | 900,579 | 387,769 | 214,210 | |||||||||||||
Total loans receivable | $ | 4,488,095 | 611,463 | 2,337,548 | 925,900 | 394,670 | 218,514 | ||||||||||||
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. The Company is subject to regulatory limits for the amount of loans to any individual borrower and the Company is in compliance with this regulation as of December 31, 2014 and 2013. No borrower had outstanding loans or commitments exceeding 10 percent of the Company’s consolidated stockholders’ equity as of December 31, 2014. | |||||||||||||||||||
Net deferred fees, costs, premiums and discounts of $13,710,000 and $10,662,000 were included in the loans receivable balance at December 31, 2014 and 2013, respectively. At December 31, 2014, the Company had $2,915,617,000 in variable rate loans and $1,572,478,000 in fixed rate loans. The weighted-average interest rate on loans was 4.86 percent and 5.04 percent at December 31, 2014 and 2013, respectively. At December 31, 2014, 2013, and 2012, loans sold and serviced for others were $133,768,000, $148,376,000, and $116,439,000, respectively. At December 31, 2014, the Company had loans of $2,596,010,000 pledged as collateral for FHLB advances and FRB discount window. There were no significant purchases or sales of loans designated held-to-maturity during 2014 and 2013. | |||||||||||||||||||
The Company has entered into transactions with its executive officers and directors and their affiliates. The aggregate amount of loans outstanding to such related parties at December 31, 2014 and 2013 was $49,446,000 and $35,224,000, respectively. During 2014, new loans to such related parties were $24,380,000, repayments were $9,864,000 and the effect of changes in composition of related parties was $(294,000). In management’s opinion, such loans were made in the ordinary course of business and were made on substantially the same terms as those prevailing at the time for comparable transaction with other persons. | |||||||||||||||||||
Note 4. Loans Receivable, Net (continued) | |||||||||||||||||||
The following schedules disclose the impaired loans: | |||||||||||||||||||
At or for the Year ended December 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 | $ | 45,688 | 4,110 | 27,155 | 11,377 | 1,214 | 1,832 | ||||||||||||
Unpaid principal balance | 48,477 | 4,276 | 28,048 | 12,461 | 1,336 | 2,356 | |||||||||||||
Specific valuation allowance | 11,597 | 853 | 2,967 | 6,836 | 447 | 494 | |||||||||||||
Average balance | 53,339 | 5,480 | 24,519 | 19,874 | 1,039 | 2,427 | |||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 115,678 | 15,466 | 78,109 | 13,944 | 5,687 | 2,472 | ||||||||||||
Unpaid principal balance | 145,038 | 16,683 | 100,266 | 19,117 | 6,403 | 2,569 | |||||||||||||
Average balance | 128,645 | 15,580 | 89,015 | 14,024 | 7,163 | 2,863 | |||||||||||||
Total | |||||||||||||||||||
Recorded balance | $ | 161,366 | 19,576 | 105,264 | 25,321 | 6,901 | 4,304 | ||||||||||||
Unpaid principal balance | 193,515 | 20,959 | 128,314 | 31,578 | 7,739 | 4,925 | |||||||||||||
Specific valuation allowance | 11,597 | 853 | 2,967 | 6,836 | 447 | 494 | |||||||||||||
Average balance | 181,984 | 21,060 | 113,534 | 33,898 | 8,202 | 5,290 | |||||||||||||
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 | |||||||||||||
Total | |||||||||||||||||||
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 years ended December 31, 2014, 2013, and 2012 was not significant. | |||||||||||||||||||
Note 4. Loans Receivable, Net (continued) | |||||||||||||||||||
The following is a loans receivable aging analysis: | |||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Accruing loans 30-59 days past due | $ | 19,139 | 3,506 | 7,925 | 5,310 | 1,374 | 1,024 | ||||||||||||
Accruing loans 60-89 days past due | 6,765 | 1,686 | 3,592 | 609 | 679 | 199 | |||||||||||||
Accruing loans 90 days or more past due | 214 | 35 | 31 | 74 | 17 | 57 | |||||||||||||
Non-accrual loans | 61,882 | 6,798 | 39,717 | 8,421 | 5,969 | 977 | |||||||||||||
Total past due and non-accrual loans | 88,000 | 12,025 | 51,265 | 14,414 | 8,039 | 2,257 | |||||||||||||
Current loans receivable | 4,400,095 | 599,438 | 2,286,283 | 911,486 | 386,631 | 216,257 | |||||||||||||
Total loans receivable | $ | 4,488,095 | 611,463 | 2,337,548 | 925,900 | 394,670 | 218,514 | ||||||||||||
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 | ||||||||||||
Interest income that would have been recorded on non-accrual loans if such loans had been current for the entire period would have been approximately $3,005,000, $4,122,000, and $5,161,000 for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||
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: | |||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 51 | — | 18 | 24 | 6 | 3 | |||||||||||||
Pre-modification recorded balance | $ | 37,781 | — | 21,760 | 12,522 | 3,385 | 114 | ||||||||||||
Post-modification recorded balance | $ | 37,075 | — | 21,803 | 11,884 | 3,274 | 114 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 5 | — | 2 | 1 | 2 | — | |||||||||||||
Recorded balance | $ | 4,453 | — | 927 | 693 | 2,833 | — | ||||||||||||
Note 4. Loans Receivable, Net (continued) | |||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 63 | 9 | 21 | 23 | 2 | 8 | |||||||||||||
Pre-modification recorded balance | $ | 29,046 | 1,907 | 20,334 | 6,087 | 147 | 571 | ||||||||||||
Post-modification recorded balance | $ | 29,359 | 2,293 | 20,334 | 6,087 | 147 | 498 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 5 | 1 | 1 | 3 | — | — | |||||||||||||
Recorded balance | $ | 849 | 265 | 79 | 505 | — | — | ||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 198 | 11 | 85 | 75 | 10 | 17 | |||||||||||||
Pre-modification recorded balance | $ | 90,747 | 2,280 | 57,382 | 28,639 | 1,358 | 1,088 | ||||||||||||
Post-modification recorded balance | $ | 89,558 | 2,281 | 56,120 | 28,711 | 1,358 | 1,088 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 14 | — | 4 | 6 | 3 | 1 | |||||||||||||
Recorded balance | $ | 8,304 | — | 6,192 | 1,753 | 301 | 58 | ||||||||||||
For the years ended December 31, 2014, 2013 and 2012 the majority of TDRs occurred in the commercial real estate class. The concessions granted typically were for extensions of maturity date and a combination of an interest rate reduction, extension of the maturity date, or reduction 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 $12,674,000, $18,345,000 and $39,769,000 for the years ended December 31, 2014, 2013 and 2012, respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs for all years was in commercial real estate. At December 31, 2014, the Company had $698,000 of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At December 31, 2014, the Company had $2,322,000 of OREO secured by residential real estate properties. | |||||||||||||||||||
There were $4,263,000 and $2,024,000 of additional unfunded commitments on TDRs outstanding at December 31, 2014 and 2013, respectively. The amount of charge-offs on TDRs during 2014, 2013 and 2012 was $1,361,000, $1,945,000 and $6,271,000, respectively. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Premises and Equipment | Premises and Equipment | |||||||||
Premises and equipment, net of accumulated depreciation, consist of the following: | ||||||||||
(Dollars in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||
Land | $ | 27,605 | 27,260 | |||||||
Office buildings and construction in progress | 172,544 | 159,391 | ||||||||
Furniture, fixtures and equipment | 70,622 | 66,375 | ||||||||
Leasehold improvements | 7,813 | 7,589 | ||||||||
Accumulated depreciation | (99,409 | ) | (92,944 | ) | ||||||
Net premises and equipment | $ | 179,175 | 167,671 | |||||||
Depreciation expense for the years ended December 31, 2014, 2013, and 2012 was $12,108,000, $10,485,000, and $10,615,000, respectively. | ||||||||||
The Company leases certain land, premises and equipment from third parties under operating and capital leases. Total rent expense for the years ended December 31, 2014, 2013, and 2012 was $2,786,000, $2,912,000, and $2,868,000, respectively. Amortization of building capital lease assets is included in depreciation. The Company has entered into lease transactions with related parties. Rent expense with such related parties for the years ended December 31, 2014, 2013, and 2012 was $146,000, $142,000, and $410,000, respectively. | ||||||||||
The total future minimum rental commitments required under operating and capital leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2014 are as follows: | ||||||||||
(Dollars in thousands) | Capital | Operating | Total | |||||||
Leases | Leases | |||||||||
Years ending December 31, | ||||||||||
2015 | $ | 694 | 2,348 | 3,042 | ||||||
2016 | 92 | 2,089 | 2,181 | |||||||
2017 | 92 | 1,786 | 1,878 | |||||||
2018 | 92 | 1,541 | 1,633 | |||||||
2019 | 92 | 1,360 | 1,452 | |||||||
Thereafter | 103 | 3,820 | 3,923 | |||||||
Total minimum lease payments | 1,165 | 12,944 | 14,109 | |||||||
Less: Amount representing interest | 99 | |||||||||
Present value of minimum lease payments | 1,066 | |||||||||
Less: Current portion of obligations under capital leases | 659 | |||||||||
Long-term portion of obligations under capital leases | $ | 407 | ||||||||
Other_Intangible_Assets_and_Go
Other Intangible Assets and Goodwill | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Other Intangible Assets and Goodwill | Other Intangible Assets and Goodwill | |||||||||
The following table sets forth information regarding the Company’s core deposit intangibles: | ||||||||||
At or for the Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Gross carrying value | $ | 32,056 | 27,857 | 22,404 | ||||||
Accumulated amortization | (21,156 | ) | (18,345 | ) | (16,230 | ) | ||||
Net carrying value | $ | 10,900 | 9,512 | 6,174 | ||||||
Aggregate amortization expense | $ | 2,811 | 2,401 | 2,110 | ||||||
Weighted-average amortization period | ||||||||||
(Period in years) | 9.6 | |||||||||
Estimated amortization expense for the years ending December 31, | ||||||||||
2015 | $ | 2,676 | ||||||||
2016 | 2,170 | |||||||||
2017 | 1,287 | |||||||||
2018 | 876 | |||||||||
2019 | 810 | |||||||||
Core deposit intangibles increased $4,199,000 and $5,739,000 during 2014 and 2013, respectively, due to acquisitions. For additional information relating to acquisitions, see Note 22. | ||||||||||
The following schedule discloses the changes in the carrying value of goodwill: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Net carrying value at beginning of period | $ | 129,706 | 106,100 | 106,100 | ||||||
Acquisitions | — | 23,606 | — | |||||||
Net carrying value at end of period | $ | 129,706 | 129,706 | 106,100 | ||||||
The gross carrying value of goodwill and the accumulated impairment charge consists of the following: | ||||||||||
(Dollars in thousands) | December 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 | |||||||
Note 6. Other Intangible Assets and Goodwill (continued) | ||||||||||
The Company’s first step in evaluating goodwill for possible impairment is a control premium analysis. The analysis first calculates the market capitalization and then adjusts such value for a control premium range which results in an implied fair value. The control premium range is determined based on historical control premiums for acquisitions that are comparable to the Company and is obtained from an independent third party. The calculated implied fair value is then compared to the book value to determine whether the Company needs to proceed to step two of the goodwill impairment assessment. The Company performed its annual goodwill impairment test during the third quarter of 2014 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 during the fourth quarter of 2014 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 December 31, 2014. 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. |
Deposits
Deposits | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Deposits [Abstract] | ||||
Deposits | Deposits | |||
Time deposits that meet or exceed the Federal Deposit Insurance Corporation Insurance limit of $250,000 at December 31, 2014 and 2013 were $314,752,000 and $232,783,000, respectively. | ||||
The scheduled maturities of time deposits are as follows and include $15,699,000 of wholesale deposits as of December 31, 2014: | ||||
(Dollars in thousands) | Amount | |||
Years ending December 31, | ||||
2015 | $ | 871,060 | ||
2016 | 182,513 | |||
2017 | 72,987 | |||
2018 | 23,335 | |||
2019 | 29,745 | |||
Thereafter | 3,287 | |||
$ | 1,182,927 | |||
The Company reclassified $4,385,000 and $3,422,000 of overdraft demand deposits to loans as of December 31, 2014 and 2013, respectively. The Company has entered into deposit transactions with its executive officers and directors and their affiliates. The aggregate amount of deposits with such related parties at December 31, 2014 and 2013 was $11,263,000 and $12,770,000, respectively. |
Borrowings
Borrowings | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Borrowings | Borrowings | |||||||||||||
The Company’s repurchase agreements amounted to $397,107,000 and $313,394,000 at December 31, 2014 and 2013, respectively, are short-term in nature, and are secured by residential mortgage-backed securities with carrying values of $523,855,000 and $398,447,000, respectively. Securities are pledged to customers at the time of the transaction in an amount at least equal to the outstanding balance and is held in custody accounts by third parties. The fair value of collateral is continually monitored and additional collateral is provided as deemed appropriate. | ||||||||||||||
The Company’s FHLB advances bear a fixed rate of interest and are subject to restrictions or penalties in the event of prepayment. The advances are collateralized by specifically pledged loans and investment securities, FHLB stock owned by the Company, and a blanket assignment of the unpledged qualifying loans and investments. The scheduled maturities of FHLB advances consist of the following: | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
(Dollars in thousands) | Amount | Weighted | Amount | Weighted | ||||||||||
Rate | Rate | |||||||||||||
Maturing within one year | $ | 93,979 | 2.81 | % | $ | 559,084 | 0.24 | % | ||||||
Maturing one year through two years | 45,042 | 2.99 | % | 77,979 | 3.36 | % | ||||||||
Maturing two years through three years | — | — | % | 45,042 | 2.99 | % | ||||||||
Maturing three years through four years | 20,250 | 2.83 | % | — | — | % | ||||||||
Maturing four years through five years | 174 | 4.74 | % | 20,250 | 2.83 | % | ||||||||
Thereafter | 137,499 | 3.12 | % | 137,827 | 3.12 | % | ||||||||
Total | $ | 296,944 | 2.98 | % | $ | 840,182 | 1.21 | % | ||||||
With respect to $275,000,000 of FHLB advances at December 31, 2014, FHLB holds put options that will be exercised on the quarterly measurement date when 3-month LIBOR is 8 percent or greater. The FHLB put option maturities range from 2015 to 2021 and the interest rates range from 2.73 percent to 3.64 percent. | ||||||||||||||
The Company’s remaining borrowings consisted of capital lease obligations, liens on OREO and other debt obligations through consolidation of certain VIEs. At December 31, 2014, the Company had $255,000,000 in unsecured lines of credit which are typically renewed on an annual basis with various correspondent entities. |
Subordinated_Debentures
Subordinated Debentures | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Instruments [Abstract] | |||||||||||
Subordinated Debentures | Subordinated Debentures | ||||||||||
Trust preferred securities were issued by the Company’s trust subsidiaries, the common stock of which is wholly-owned by the Company, in conjunction with the Company issuing subordinated debentures to the trust subsidiaries. The terms of the subordinated debentures are the same as the terms of the trust preferred securities. The Company guaranteed the payment of distributions and payments for redemption or liquidation of the trust preferred securities to the extent of funds held by the trust subsidiaries. The obligations of the Company under the subordinated debentures together with the guarantee and other back-up obligations, in the aggregate, constitute a full and unconditional guarantee by the Company of the obligations of all trusts under the trust preferred securities. | |||||||||||
The trust preferred securities are subject to mandatory redemption upon repayment of the subordinated debentures at their stated maturity date or the earlier redemption in an amount equal to their liquidation amount plus accumulated and unpaid distributions to the date of redemption. Interest distributions are payable quarterly. The Company may defer the payment of interest at any time for a period not exceeding 20 consecutive quarters provided that the deferral period does not extend past the stated maturity. During any such deferral period, distributions on the trust preferred securities will also be deferred and the Company’s ability to pay dividends on its common shares will be restricted. | |||||||||||
Subject to prior approval by the FRB, the trust preferred securities may be redeemed at par prior to maturity at the Company’s option on or after the redemption date. All of the Company’s trust preferred securities have reached the redemption date and could be redeemed at the Company’s option. The trust preferred securities may also be redeemed at any time in whole (but not in part) for the Trusts in the event of unfavorable changes in laws or regulations that result in 1) subsidiary trusts becoming subject to federal income tax on income received on the subordinated debentures; 2) interest payable by the Company on the subordinated debentures becoming non-deductible for federal tax purposes; 3) the requirement for the trusts to register under the Investment Company Act of 1940, as amended; or 4) loss of the ability to treat the trust preferred securities as Tier 1 capital under the FRB capital adequacy guidelines. | |||||||||||
Note 9. Subordinated Debentures (continued) | |||||||||||
For regulatory purposes, the FRB has allowed bank holding companies to include trust preferred securities in Tier 1 capital up to a certain limit. Provisions of the Dodd-Frank Act require the FRB to exclude trust preferred securities from Tier 1 capital, but a grandfather provision applicable to the Company permits bank holding companies with consolidated assets of less than $15 billion to continue counting existing trust preferred securities as Tier 1 capital until they mature. All of the Company’s trust preferred securities qualified as Tier 1 instruments at December 31, 2014. | |||||||||||
The terms of the subordinated debentures, arranged by maturity date, are reflected in the table below. The amounts include fair value adjustments from acquisitions. | |||||||||||
31-Dec-14 | Variable Rate Structure | Maturity Date | |||||||||
(Dollars in thousands) | Balance | Rate | |||||||||
First Company Statutory Trust 2001 | $ | 3,081 | 3.533 | % | 3 mo LIBOR plus 3.30% | 7/31/31 | |||||
First Company Statutory Trust 2003 | 2,272 | 3.505 | % | 3 mo LIBOR plus 3.25% | 3/26/33 | ||||||
Glacier Capital Trust II | 46,393 | 2.98 | % | 3 mo LIBOR plus 2.75% | 4/7/34 | ||||||
Citizens (ID) Statutory Trust I | 5,155 | 2.893 | % | 3 mo LIBOR plus 2.65% | 6/17/34 | ||||||
Glacier Capital Trust III | 36,083 | 1.52 | % | 3 mo LIBOR plus 1.29% | 4/7/36 | ||||||
Glacier Capital Trust IV | 30,928 | 1.811 | % | 3 mo LIBOR plus 1.57% | 9/15/36 | ||||||
Bank of the San Juans Bancorporation Trust I | 1,793 | 2.056 | % | 3 mo LIBOR plus 1.82% | 3/1/37 | ||||||
$ | 125,705 | ||||||||||
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities | ||||||||||||||||||
The Company is exposed to certain risk relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s forecasted variable rate borrowings. The Company recognizes interest rate swaps as either assets or liabilities at fair value in the statements of financial condition, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow the Company to settle all interest rate swap agreements held with a single counterparty on a net basis, and to offset net interest rate swap derivative positions with related collateral, where applicable. | |||||||||||||||||||
The interest rate swaps on variable rate borrowings were designated as cash flow hedges and were over-the-counter contracts. The contracts were entered into by the Company with a single counterparty and the specific agreement of terms were negotiated, including forecasted notional amounts, interest rates and maturity dates. The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to the agreements. The Company controls the counterparty credit risk by maintaining bilateral collateral agreements and through monitoring policy and procedures. The Company only conducts business with primary dealers and believes that the credit risk inherent in these contracts was not significant. | |||||||||||||||||||
The Company’s interest rate swap derivative financial instruments as of December 31, 2014 are as follows: | |||||||||||||||||||
(Dollars in thousands) | Forecasted | Variable | Fixed | Payment 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 counterparty pays the Company the variable interest rate. | |||||||||||||||||||
2 No cash will be exchanged prior to the beginning of the payment term. | |||||||||||||||||||
Note 10. Derivatives and Hedging Activities (continued) | |||||||||||||||||||
The hedging strategy converts the LIBOR-based variable interest rate on borrowings to a fixed interest rate, thereby protecting the Company from interest rate variability. | |||||||||||||||||||
On October 21, 2014, the interest rate swap with the $160,000,000 notional amount began its payment term. The Company designated wholesale deposits as the cash flow hedge and these deposits were determined to be fully effective during the current year. As such, no amount of ineffectiveness has been included in the Company’s statements of operations. Therefore, the aggregate fair value of the interest rate swap was recorded in other liabilities with changes recorded in OCI. The Company expects the hedge to remain highly effective during the remaining term of the interest rate swap. Interest expense recorded on this interest rate swap totaled $1,066,000 during 2014 and is reported as a component of interest expense on wholesale deposits. Unless the interest rate swap is terminated during the next year, the Company expects $5,064,000 of the unrealized loss reported in OCI at December 31, 2014 to be reclassified to interest expense during 2015. | |||||||||||||||||||
The following table presents the pre-tax gains or losses recorded in accumulated other comprehensive income and the Company’s statements of operations relating to the interest rate swap derivative financial instruments: | |||||||||||||||||||
Years ended | |||||||||||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Interest rate swaps | |||||||||||||||||||
Amount of (loss) gain recognized in OCI (effective portion) | $ | (19,557 | ) | 18,728 | (7,926 | ) | |||||||||||||
Amount of loss reclassified from OCI to interest expense | (993 | ) | — | — | |||||||||||||||
Amount of loss recognized in other non-interest expense (ineffective portion) | — | — | — | ||||||||||||||||
The following table discloses the offsetting of financial assets and interest rate swap derivative assets: | |||||||||||||||||||
December 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 | $ | — | — | — | 6,844 | (4,948 | ) | 1,896 | |||||||||||
The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities: | |||||||||||||||||||
December 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 | $ | 16,668 | — | 16,668 | 4,948 | (4,948 | ) | — | |||||||||||
Pursuant to the interest rate swap agreements, the Company pledged collateral to the counterparty in the form of investment securities totaling $20,339,000 at December 31, 2014. There was $0 collateral pledged from the counterparty to the Company as of December 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. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||
Regulatory Capital | Regulatory Capital | ||||||||||||||||||||
The FRB has adopted capital adequacy guidelines pursuant to which it assesses the adequacy of capital in supervising a bank holding company. The following tables illustrate the FRB’s adequacy guidelines and the Company’s and the Bank’s compliance with those guidelines: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Actual | Minimum Capital | Well Capitalized | |||||||||||||||||||
Requirement | Requirement | ||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 1,065,282 | 18.93 | % | $ | 450,240 | 8 | % | $ | 562,800 | 10 | % | |||||||||
Glacier Bank | 1,023,669 | 18.25 | % | 448,739 | 8 | % | 560,924 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 994,197 | 17.67 | % | $ | 225,120 | 4 | % | $ | 337,680 | 6 | % | |||||||||
Glacier Bank | 952,815 | 16.99 | % | 224,370 | 4 | % | 336,554 | 6 | % | ||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||
Consolidated | $ | 994,197 | 12.45 | % | $ | 319,505 | 4 | % | N/A | N/A | |||||||||||
Glacier Bank | 952,815 | 12.03 | % | 316,938 | 4 | % | $ | 396,173 | 5 | % | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Actual | Minimum Capital | Well Capitalized | |||||||||||||||||||
Requirement | Requirement | ||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 1,005,980 | 18.97 | % | $ | 424,322 | 8 | % | $ | 530,402 | 10 | % | |||||||||
Glacier Bank | 948,618 | 17.93 | % | 423,235 | 8 | % | 529,044 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 938,887 | 17.7 | % | $ | 212,161 | 4 | % | $ | 318,241 | 6 | % | |||||||||
Glacier Bank | 881,692 | 16.67 | % | 211,618 | 4 | % | 317,426 | 6 | % | ||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||
Consolidated | $ | 938,887 | 12.11 | % | $ | 310,082 | 4 | % | N/A | N/A | |||||||||||
Glacier Bank | 881,692 | 11.44 | % | 308,281 | 4 | % | $ | 385,351 | 5 | % | |||||||||||
The Federal Deposit Insurance Corporation Improvement Act generally restricts a depository institution from making any capital distribution (including payment of a dividend) or paying any management fee to its bank holding company if the institution would thereafter be capitalized at less than 8 percent Total capital (to risk-weighted assets), 4 percent Tier 1 capital (to risk-weighted assets), or 4 percent Tier 1 capital (to average assets). | |||||||||||||||||||||
At December 31, 2014 and 2013, the Bank’s capital measures exceeded the well capitalized threshold, which requires Total capital (to risk-weighted assets) of at least 10 percent, Tier 1 capital (to risk-weighted assets) of at least 6 percent, and Tier 1 capital (to average assets) of at least 5 percent. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial condition. There are no conditions or events since year end that management believes have changed the Company’s or Bank’s risk-based capital category. | |||||||||||||||||||||
Current guidance from the Federal Reserve provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. The Bank is also subject to Montana state law and cannot declare a dividend greater than the previous two years’ net earnings without providing notice to the state. |
Stockbased_Compensation_Plan
Stock-based Compensation Plan | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Stock-based Compensation Plan | Stock-based Compensation Plan | ||||||
The Company has a stock-based compensation plan that provides awards to certain full-time employees and directors of the Company. The 2005 Stock Incentive Plan permits the granting of stock options, share appreciation rights, restricted shares, restricted share units, and unrestricted shares, deferred share units, and performance awards. At December 31, 2014, the number of shares available to grant to employees and directors under this plan was 4,022,452. | |||||||
Stock Options | |||||||
The Company has granted stock options to certain full-time employees and directors of the Company under the 2005 Stock Incentive Plan. The plan contains provisions authorizing the grant of limited stock rights, which permit the optionee, upon a change in control of the Company, to surrender his or her stock options for cancellation and receive cash or common stock equal to the difference between the exercise price and the fair market value of the shares on the date of the grant. The option price at which the Company’s common stock may be purchased upon exercise of stock options granted under the plans must be at least equal to the per share market value of such stock at the date the option is granted. All stock option shares are adjusted for stock splits and stock dividends. The term of the stock options may not exceed five years from the date the options are granted. | |||||||
The fair value of stock options granted is estimated at the date of grant using the Black Scholes option-pricing model. The Company uses historical data to estimate option exercise and termination within the valuation model. Employee and director awards, which have dissimilar historical exercise behavior, are considered separately for valuation purposes. The risk-free interest rate for periods within the contractual life of the stock option is based on the U.S. Treasury yield in effect at the time of the grant. The stock option grants generally vest upon six months or two years of service for directors and employees, respectively, and generally expire in five years. Expected volatilities are based on historical volatility and other factors. There were no stock options granted during 2014, 2013 or 2012. | |||||||
Compensation expense and the recognized income tax benefit related to stock options for the years ended December 31, 2014, 2013 and 2012 was not significant. There was no unrecognized compensation cost related to stock options as of December 31, 2014. | |||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $778,000, $1,907,000 and $3,000, respectively, and the income tax benefit related to these exercises was $302,000, $742,000 and $1,000. Total cash received from options exercised during the years ended December 31, 2014, 2013 and 2012 was $871,000, $4,327,000 and $81,000. Upon exercise of stock options, the shares are issued from the Company’s authorized stock balance. | |||||||
Changes in shares granted for stock options for the year ended December 31, 2014 are summarized as follows: | |||||||
Options | Weighted- | ||||||
Average | |||||||
Exercise Price | |||||||
Outstanding at December 31, 2013 | 58,810 | $ | 15.47 | ||||
Exercised | (56,360 | ) | 15.45 | ||||
Forfeited or expired | (1,450 | ) | 15.37 | ||||
Outstanding at December 31, 2014 | 1,000 | 16.73 | |||||
Exercisable at December 31, 2014 | 1,000 | 16.73 | |||||
The average remaining contractual term on stock options outstanding and exercisable at December 31, 2014 is six months. The aggregate intrinsic value of the outstanding and exercisable shares at December 31, 2014 was $11,000. | |||||||
Restricted Stock Awards | |||||||
The Company has awarded restricted stock to certain senior officers and directors under the 2005 Stock Incentive Plan. Common stock issued under restricted stock awards may be issued under the terms of a vesting schedule or with an immediate vest and may not be sold or otherwise transferred until restrictions have lapsed. The recipient does not have voting rights until the restricted stock award has vested. The fair value of the restricted stock awarded is the closing price of the Company’s common stock on the award date. | |||||||
Compensation expense related to restricted stock awards for the years ended December 31, 2014, 2013 and 2012 was $1,603,000, $768,000 and $243,000, respectively, and the recognized income tax benefit related to this expense was $622,000, $299,000 and $96,000. As of December 31, 2014, total unrecognized compensation expense of $2,276,000 related to restricted stock awards is expected to be recognized over a weighted-average period of 1.9 years. | |||||||
Note 12. Stock-based Compensation Plan (continued) | |||||||
The fair value of restricted stock awards that vested during the years ended December 31, 2014, 2013 and 2012 was $953,000, $197,000 and $243,000, respectively, and the income tax benefit related to these awards was $532,000, $77,000 and $96,000, respectively. Upon vesting of restricted stock awards, the shares are issued from the Company’s authorized stock balance. | |||||||
The following table summarizes the restricted stock award activity for the year ended December 31, 2014: | |||||||
Restricted Stock | Weighted- | ||||||
Average | |||||||
Grant Date Fair Value | |||||||
Non-vested at December 31, 2013 | 117,442 | $ | 16.76 | ||||
Granted | 97,367 | 26.63 | |||||
Vested | (51,068 | ) | 18.66 | ||||
Forfeited | (1,688 | ) | 21.76 | ||||
Non-vested at December 31, 2014 | 162,053 | 22.04 | |||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
The Company provides its employees with a comprehensive benefit program, including health, dental and vision insurance, life and accident insurance, long-term disability coverage, vacation and sick leave, 401(k) plan, profit sharing plan and a stock-based compensation plan. The Company has elected to self-insure certain costs related to employee health, dental and vision benefit programs. Costs resulting from noninsured losses are expensed as incurred. The Company has purchased insurance that limits its exposure on an individual claim basis for the employee health benefit programs. The Company has entered into employment contracts with 25 senior officers that provide benefits under certain conditions following a change in control of the Company. | |
The Company’s 401(k) plan and profit sharing plan have safe harbor and employer discretionary components. To be considered eligible for the 401(k) and safe harbor components of the profit sharing plan, an employee must be 21 years of age and employed for three full months. Employees are eligible to participate in the 401(k) plan the first day of the month once they have met the eligibility requirements. To be considered eligible for the employer discretionary contribution of the profit sharing plan, an employee must be 21 years of age, worked one full calendar quarter, worked 501 hours in the plan year and be employed as of the last day of the plan year. Participants are at all times fully vested in all contributions. | |
The profit sharing plan contributions consists of a 3 percent non-elective safe harbor contribution fully funded by the Company and an employer discretionary contribution. The employer discretionary contribution depends on the Company’s profitability. The total profit sharing plan expense for the years ended December 31, 2014, 2013, and 2012 was $7,107,000, $5,862,000 and $3,974,000 respectively. | |
The 401(k) plan allows eligible employees to contribute up to 60 percent of their eligible annual compensation up to the limit set annually by the Internal Revenue Service (“IRS”). The Company matches an amount equal to 50 percent of the first 6 percent of an employee’s contribution. The Company’s contribution to the 401(k) for the years ended December 31, 2014, 2013 and 2012 was $2,246,000, $1,935,000, and $1,751,000, respectively. | |
The Company has non-funded deferred compensation plans for directors, senior officers and certain nonemployee service providers. The plans provide for participants’ elective deferral of cash payments of up to 50 percent of a participants’ salary and 100 percent of bonuses and directors fees. The total amount deferred for the plans was $591,000, $376,000, and $278,000, for the years ending December 31, 2014, 2013, and 2012, respectively. The participant receives an earnings credit at a rate equal to 50 percent of the Company’s return on average equity. The total earnings for the years ended December 31, 2014, 2013, and 2012 for the plans was $369,000, $515,000 and $231,000, respectively. In connection with several acquisitions, the Company assumed the obligations of deferred compensation plans for certain key employees. As of December 31, 2014 and 2013, the liability related to the obligations was $4,810,000 and $5,042,000, respectively, and was included in other liabilities. The total earnings for the years ended December 31, 2014, 2013, and 2012 for the acquired plans was insignificant. | |
Note 13. Employee Benefit Plans (continued) | |
The Company has a Supplemental Executive Retirement Plan (“SERP”) which is intended to supplement payments due to participants upon retirement under the Company’s other qualified plans. The Company credits the participant’s account on an annual basis for an amount equal to employer contributions that would have otherwise been allocated to the participant’s account under the tax-qualified plans were it not for limitations imposed by the IRS or the participation in the non-funded deferred compensation plan. Eligible employees include participants of the non-funded deferred compensation plan and employees whose benefits were limited as a result of IRS regulations. The Company’s required contribution to the SERP for the years ended December 31, 2014, 2013 and 2012 was $151,000, $76,000, and $47,000, respectively. The participant receives an earnings credit at a rate equal to 50 percent of the Company’s return on average equity. The total earnings for the years ended December 31, 2014, 2013, and 2012 for this plan was $59,000, $48,000, and $37,000, respectively. |
Other_Expenses
Other Expenses | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Expenses [Abstract] | ||||||||||
Other Expenses | Other Expenses | |||||||||
Other expenses consists of the following: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Debit card expenses | $ | 5,802 | 6,131 | 4,497 | ||||||
VIE write-downs, losses and other expenses | 4,231 | 4,210 | 3,879 | |||||||
Consulting and outside services | 4,179 | 3,243 | 2,079 | |||||||
Employee expenses | 3,557 | 2,686 | 2,098 | |||||||
Printing and supplies | 3,547 | 3,112 | 2,922 | |||||||
Checking and operating expenses | 3,517 | 3,091 | 1,644 | |||||||
Postage | 3,391 | 3,302 | 3,120 | |||||||
Telephone | 2,911 | 2,498 | 2,252 | |||||||
Loan expenses | 2,513 | 2,444 | 3,430 | |||||||
Legal fees | 1,455 | 1,728 | 1,521 | |||||||
Accounting and audit fees | 1,393 | 1,146 | 1,442 | |||||||
ATM expenses | 1,268 | 1,087 | 1,161 | |||||||
Other | 3,884 | 4,178 | 6,042 | |||||||
Total other expenses | $ | 41,648 | 38,856 | 36,087 | ||||||
Federal_and_State_Income_Taxes
Federal and State Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Federal and State Income Taxes | Federal and State Income Taxes | |||||||||
The following is a summary of consolidated income tax expense: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Current | ||||||||||
Federal | $ | 21,860 | 18,377 | 12,718 | ||||||
State | 8,118 | 7,007 | 5,522 | |||||||
Total current income tax expense | 29,978 | 25,384 | 18,240 | |||||||
Deferred | ||||||||||
Federal | 5,016 | 3,918 | 708 | |||||||
State | 915 | 715 | 129 | |||||||
Total deferred income tax expense | 5,931 | 4,633 | 837 | |||||||
Total income tax expense | $ | 35,909 | 30,017 | 19,077 | ||||||
Note 15. Federal and State Income Taxes (continued) | ||||||||||
Combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: | ||||||||||
Years ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||
2014 | 2013 | 2012 | ||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||
State taxes, net of federal income tax benefit | 4 | % | 4 | % | 3.9 | % | ||||
Tax-exempt interest income | (11.5 | )% | (12.2 | )% | (14.0 | )% | ||||
Tax credits | (2.8 | )% | (3.2 | )% | (4.2 | )% | ||||
Other, net | (0.5 | )% | 0.3 | % | (0.5 | )% | ||||
Effective tax rate | 24.2 | % | 23.9 | % | 20.2 | % | ||||
The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows: | ||||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Deferred tax assets | ||||||||||
Allowance for loan and lease losses | $ | 50,013 | 50,652 | |||||||
Other real estate owned | 8,200 | 8,041 | ||||||||
Interest rate swap agreements | 6,467 | — | ||||||||
Acquisition fair market value adjustments | 5,302 | 4,151 | ||||||||
Deferred compensation | 5,024 | 4,837 | ||||||||
Income tax credits and net operating loss carryforwards | 4,652 | 2,778 | ||||||||
Employee benefits | 2,839 | 3,132 | ||||||||
Other | 4,290 | 3,662 | ||||||||
Total gross deferred tax assets | 86,787 | 77,253 | ||||||||
Deferred tax liabilities | ||||||||||
Available-for-sale securities | (17,716 | ) | (5,402 | ) | ||||||
FHLB stock dividends | (10,342 | ) | (10,359 | ) | ||||||
Deferred loan costs | (6,419 | ) | (6,058 | ) | ||||||
Intangibles | (4,290 | ) | (3,099 | ) | ||||||
Depreciation of premises and equipment | (2,358 | ) | (3,939 | ) | ||||||
Interest rate swap agreements | — | (736 | ) | |||||||
Other | (3,925 | ) | (4,111 | ) | ||||||
Total gross deferred tax liabilities | (45,050 | ) | (33,704 | ) | ||||||
Net deferred tax asset | $ | 41,737 | 43,549 | |||||||
Note 15. Federal and State Income Taxes (continued) | ||||||||||
The Company has federal income tax credit carryforwards of $845,000 expiring in 2034. The Company has federal net operating loss carryforwards of $9,388,000 expiring between 2029 and 2031. The Company has Colorado net operating loss carryforwards of $17,317,000 expiring between 2029 and 2031. | ||||||||||
The Company and the Bank join together in the filing of consolidated income tax returns in the following jurisdictions: federal, Montana, Idaho, Colorado and Utah. Although the Bank has operations in Wyoming and Washington, neither Wyoming nor Washington imposes a corporate-level income tax. All required income tax returns have been timely filed. The following schedule summarizes the years that remain subject to examination as of December 31, 2014: | ||||||||||
Years ended December 31, | ||||||||||
Federal | 2008, 2009, 2010, 2011, 2012 and 2013 | |||||||||
Montana | 2011, 2012 and 2013 | |||||||||
Idaho | 2009, 2010, 2011, 2012 and 2013 | |||||||||
Colorado | 2008, 2009, 2010, 2011, 2012 and 2013 | |||||||||
Utah | 2011, 2012 and 2013 | |||||||||
The Company had no unrecognized income tax benefits as of December 31, 2014 and 2013. The Company recognizes interest related to unrecognized income tax benefits in interest expense and penalties are recognized in other expense. Interest expense and penalties recognized with respect to income tax liabilities for the years ended December 31, 2014, 2013, and 2012 was not significant. The Company had no accrued liabilities for the payment of interest or penalties at December 31, 2014 and 2013. | ||||||||||
The Company has assessed the need for a valuation allowance and determined that a valuation allowance was not necessary at December 31, 2014 and 2013. The Company believes that it is more-likely-than-not that the Company’s deferred tax assets will be realizable by offsetting future taxable income from reversing taxable temporary differences and anticipated future taxable income (exclusive of reversing temporary differences). In its assessment, the Company considered its strong earnings history, no history of income tax credit carryforwards expiring unused, and no future net operating losses (for tax purposes) are expected. | ||||||||||
Retained earnings at December 31, 2014 includes $3,600,000 for which no provision for federal income tax has been made. This amount represents the base year reserve for bad debts, which is essentially an allocation of earnings to pre-1988 bad debt deductions for federal income tax purposes only. This amount is treated as a permanent difference and deferred taxes are not recognized unless it appears that this bad debt reserve will be reduced and thereby result in taxable income in the foreseeable future. The Company is not currently contemplating any changes in its business or operations which would result in a recapture of this reserve for bad debts for federal income tax purposes. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity [Abstract] | ||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | |||||||||
The following table illustrates the activity within accumulated other comprehensive income by component, net of tax: | ||||||||||
(Dollars in thousands) | Gains (Losses) on Available-For-Sale Securities | (Losses) Gains on Derivatives Used for Cash Flow Hedges | Total | |||||||
Balance at December 31, 2011 | $ | 38,928 | (5,441 | ) | 33,487 | |||||
Other comprehensive income (loss) before reclassification | 19,317 | (4,842 | ) | 14,475 | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||
Net current period other comprehensive income (loss) | 19,317 | (4,842 | ) | 14,475 | ||||||
Balance at December 31, 2012 | 58,245 | (10,283 | ) | 47,962 | ||||||
Other comprehensive (loss) income before reclassification | (49,943 | ) | 11,443 | (38,500 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | 183 | — | 183 | |||||||
Net current period other comprehensive (loss) income | (49,760 | ) | 11,443 | (38,317 | ) | |||||
Balance at December 31, 2013 | 8,485 | 1,160 | 9,645 | |||||||
Other comprehensive income (loss) before reclassification | 19,335 | (11,969 | ) | 7,366 | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 125 | 608 | 733 | |||||||
Net current period other comprehensive income (loss) | 19,460 | (11,361 | ) | 8,099 | ||||||
Balance at December 31, 2014 | $ | 27,945 | (10,201 | ) | 17,744 | |||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 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: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands, except per share data) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Net income available to common stockholders, basic and diluted | $ | 112,755 | 95,644 | 75,516 | ||||||
Average outstanding shares - basic | 74,641,957 | 73,191,713 | 71,928,570 | |||||||
Add: dilutive stock options and awards | 45,358 | 68,565 | 86 | |||||||
Average outstanding shares - diluted | 74,687,315 | 73,260,278 | 71,928,656 | |||||||
Basic earnings per share | $ | 1.51 | 1.31 | 1.05 | ||||||
Diluted earnings per share | $ | 1.51 | 1.31 | 1.05 | ||||||
There were 0, 38,915 and 879,525 options excluded from the diluted average outstanding share calculation for the years ended December 31, 2014, 2013, and 2012, respectively, due to the option exercise price exceeding the market price of the Company’s common stock. |
Parent_Holding_Company_Informa
Parent Holding Company Information (Condensed) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
Parent Holding Company Information (Condensed) | Parent Holding Company Information (Condensed) | |||||||||
The following condensed financial information was the unconsolidated information for the parent holding company: | ||||||||||
Condensed Statements of Financial Condition | ||||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Assets | ||||||||||
Cash on hand and in banks | $ | 4,019 | 1,582 | |||||||
Interest bearing cash deposits | 51,127 | 49,097 | ||||||||
Cash and cash equivalents | 55,146 | 50,679 | ||||||||
Investment securities, available-for-sale | 91 | 87 | ||||||||
Other assets | 8,511 | 9,050 | ||||||||
Investment in subsidiaries | 1,121,937 | 1,040,104 | ||||||||
Total assets | $ | 1,185,685 | 1,099,920 | |||||||
Liabilities and Stockholders’ Equity | ||||||||||
Dividends payable | $ | 22,557 | — | |||||||
Subordinated debentures | 125,705 | 125,562 | ||||||||
Other liabilities | 9,376 | 11,108 | ||||||||
Total liabilities | 157,638 | 136,670 | ||||||||
Common stock | 750 | 744 | ||||||||
Paid-in capital | 708,356 | 690,918 | ||||||||
Retained earnings | 301,197 | 261,943 | ||||||||
Accumulated other comprehensive income | 17,744 | 9,645 | ||||||||
Total stockholders’ equity | 1,028,047 | 963,250 | ||||||||
Total liabilities and stockholders’ equity | $ | 1,185,685 | 1,099,920 | |||||||
Condensed Statements of Operations and Comprehensive Income | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Income | ||||||||||
Dividends from subsidiaries | $ | 78,500 | 65,445 | 78,209 | ||||||
Loss on sale of investments | — | (3,248 | ) | — | ||||||
Other income | 199 | 966 | 566 | |||||||
Intercompany charges for services | 9,283 | 7,387 | 16,041 | |||||||
Total income | 87,982 | 70,550 | 94,816 | |||||||
Expenses | ||||||||||
Compensation and employee benefits | 10,773 | 9,175 | 12,392 | |||||||
Other operating expenses | 6,824 | 6,536 | 10,267 | |||||||
Total expenses | 17,597 | 15,711 | 22,659 | |||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 70,385 | 54,839 | 72,157 | |||||||
Income tax benefit | 2,919 | 3,676 | 2,319 | |||||||
Income before equity in undistributed net income of subsidiaries | 73,304 | 58,515 | 74,476 | |||||||
Equity in undistributed net income of subsidiaries | 39,451 | 37,129 | 1,040 | |||||||
Net Income | $ | 112,755 | 95,644 | 75,516 | ||||||
Comprehensive Income | $ | 120,854 | 57,327 | 89,991 | ||||||
Note 18. Parent Holding Company Information (Condensed) (continued) | ||||||||||
Condensed Statements of Cash Flows | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Operating Activities | ||||||||||
Net income | $ | 112,755 | 95,644 | 75,516 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Subsidiary income in excess of dividends distributed | (39,451 | ) | (37,129 | ) | (1,040 | ) | ||||
Loss on sale of investments | — | 3,248 | — | |||||||
Excess tax (benefits) deficiencies from stock-based compensation | (138 | ) | 223 | 8 | ||||||
Net change in other assets and other liabilities | 140 | 2,575 | 3,684 | |||||||
Net cash provided by operating activities | 73,306 | 64,561 | 78,168 | |||||||
Investing Activities | ||||||||||
Sales of available-for-sale securities | — | 23,990 | — | |||||||
Maturities, prepayments and calls of available-for-sale securities | — | 2,571 | 787 | |||||||
Changes in investment securities and other stock - intercompany | — | (946 | ) | (19,183 | ) | |||||
Net addition of premises and equipment | (179 | ) | (603 | ) | (2,927 | ) | ||||
Net sale of non-marketable equity securities | (667 | ) | — | — | ||||||
Equity contributions to subsidiaries | (18,115 | ) | (11,336 | ) | (28,500 | ) | ||||
Net cash (used in) provided by investing activities | (18,961 | ) | 13,676 | (49,823 | ) | |||||
Financing Activities | ||||||||||
Net increase in other borrowed funds | 143 | 144 | 143 | |||||||
Cash dividends paid | (50,944 | ) | (44,232 | ) | (47,472 | ) | ||||
Excess tax benefits (deficiencies) from stock-based compensation | 138 | (223 | ) | (8 | ) | |||||
Stock-based compensation activity | 785 | 4,326 | 81 | |||||||
Net cash used in financing activities | (49,878 | ) | (39,985 | ) | (47,256 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 4,467 | 38,252 | (18,911 | ) | ||||||
Cash and cash equivalents at beginning of year | 50,679 | 12,427 | 31,338 | |||||||
Cash and cash equivalents at end of year | $ | 55,146 | 50,679 | 12,427 | ||||||
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data | ||||||||||||
Summarized unaudited quarterly financial data is as follows: | |||||||||||||
Quarters ended 2014 | |||||||||||||
(Dollars in thousands, except per share data) | March 31 | June 30 | September 30 | December 31 | |||||||||
Interest income | $ | 74,087 | 73,963 | 75,690 | 76,179 | ||||||||
Interest expense | 6,640 | 6,528 | 6,430 | 7,368 | |||||||||
Net interest income | 67,447 | 67,435 | 69,260 | 68,811 | |||||||||
Provision for loan losses | 1,122 | 239 | 360 | 191 | |||||||||
Net interest income after provision for loan losses | 66,325 | 67,196 | 68,900 | 68,620 | |||||||||
Non-interest income | 19,388 | 22,504 | 24,432 | 23,978 | |||||||||
Non-interest expense | 50,070 | 52,673 | 54,238 | 55,698 | |||||||||
Income before income taxes | 35,643 | 37,027 | 39,094 | 36,900 | |||||||||
Federal and state income tax expense | 8,913 | 8,350 | 9,800 | 8,846 | |||||||||
Net income | 26,730 | 28,677 | 29,294 | 28,054 | |||||||||
Basic earnings per share | 0.36 | 0.38 | 0.4 | 0.37 | |||||||||
Diluted earnings per share | 0.36 | 0.38 | 0.4 | 0.37 | |||||||||
Quarters ended 2013 | |||||||||||||
(Dollars in thousands, except per share data) | March 31 | June 30 | September 30 | December 31 | |||||||||
Interest income | $ | 57,955 | 62,151 | 69,531 | 73,939 | ||||||||
Interest expense | 7,458 | 7,185 | 7,186 | 6,929 | |||||||||
Net interest income | 50,497 | 54,966 | 62,345 | 67,010 | |||||||||
Provision for loan losses | 2,100 | 1,078 | 1,907 | 1,802 | |||||||||
Net interest income after provision for loan losses | 48,397 | 53,888 | 60,438 | 65,208 | |||||||||
Non-interest income | 22,950 | 23,222 | 23,873 | 23,002 | |||||||||
Non-interest expense | 43,434 | 48,481 | 50,368 | 53,034 | |||||||||
Income before income taxes | 27,913 | 28,629 | 33,943 | 35,176 | |||||||||
Federal and state income tax expense | 7,145 | 5,927 | 8,315 | 8,630 | |||||||||
Net income | 20,768 | 22,702 | 25,628 | 26,546 | |||||||||
Basic earnings per share | 0.29 | 0.31 | 0.35 | 0.36 | |||||||||
Diluted earnings per share | 0.29 | 0.31 | 0.35 | 0.36 | |||||||||
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 12 Months Ended | ||||||||||||
Dec. 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 years ended December 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 December 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. | |||||||||||||
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. | |||||||||||||
Note 20. Fair Value of Assets and Liabilities (continued) | |||||||||||||
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 December 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 and federal agency | $ | 44 | — | 44 | — | ||||||||
U.S. government sponsored enterprises | 21,945 | — | 21,945 | — | |||||||||
State and local governments | 997,969 | — | 997,969 | — | |||||||||
Corporate bonds | 314,854 | — | 314,854 | — | |||||||||
Residential mortgage-backed securities | 1,052,616 | — | 1,052,616 | — | |||||||||
Total assets measured at fair value on a recurring basis | $ | 2,387,428 | — | 2,387,428 | — | ||||||||
Interest rate swaps | $ | 16,668 | — | 16,668 | — | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | 16,668 | — | 16,668 | — | ||||||||
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 December 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. | |||||||||||||
Note 20. Fair Value of Assets and Liabilities (continued) | |||||||||||||
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 December 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 | $ | 3,000 | — | — | 3,000 | ||||||||
Collateral-dependent impaired loans, net of ALLL | 15,480 | — | — | 15,480 | |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 18,480 | — | — | 18,480 | ||||||||
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 | ||||||||
Note 20. Fair Value of Assets and Liabilities (continued) | |||||||||||||
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 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | December 31, | Valuation Technique | Unobservable Input | Range (Weighted- Average) 1 | |||||||||
2014 | |||||||||||||
Other real estate owned | $ | 2,393 | Sales comparison approach | Selling costs | 0.0% - 10.0% (5.8%) | ||||||||
Adjustment to comparables | 0.0% - 7.0% (0.5%) | ||||||||||||
607 | Combined approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||||||
Discount rate | 10.0% - 10.0% (10.0%) | ||||||||||||
$ | 3,000 | ||||||||||||
Collateral-dependent impaired loans, net of ALLL | $ | 6 | Cost approach | Selling costs | 7.0% - 7.0% (7.0%) | ||||||||
5,335 | Income approach | Selling costs | 8.0% - 10.0% (8.5%) | ||||||||||
Discount rate | 8.3% - 12.0% (9.1%) | ||||||||||||
6,330 | Sales comparison approach | Selling costs | 0.0% - 10.0% (8.3%) | ||||||||||
Adjustment to comparables | 0.0% - 30.0% (3.5%) | ||||||||||||
3,809 | Combined approach | Selling costs | 8.0% - 10.0% (9.2%) | ||||||||||
Adjustment to comparables | 10.0% - 20.0% (16.2%) | ||||||||||||
$ | 15,480 | ||||||||||||
Fair Value | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | December 31, | Valuation Technique | Unobservable Input | Range (Weighted- Average) 1 | |||||||||
2013 | |||||||||||||
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. | |||||||||||||
Note 20. Fair Value of Assets and Liabilities (continued) | |||||||||||||
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. | |||||||||||||
Note 20. Fair Value of Assets and Liabilities (continued) | |||||||||||||
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 December 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Financial assets | |||||||||||||
Cash and cash equivalents | $ | 442,409 | 442,409 | — | — | ||||||||
Investment securities, available-for-sale | 2,387,428 | — | 2,387,428 | — | |||||||||
Investment securities, held-to-maturity | 520,997 | — | 550,946 | — | |||||||||
Loans held for sale | 46,726 | 46,726 | — | — | |||||||||
Loans receivable, net of ALLL | 4,358,342 | — | 4,288,417 | 149,769 | |||||||||
Accrued interest receivable | 40,587 | 40,587 | — | — | |||||||||
Non-marketable equity securities | 52,868 | — | 52,868 | — | |||||||||
Total financial assets | $ | 7,849,357 | 529,722 | 7,279,659 | 149,769 | ||||||||
Financial liabilities | |||||||||||||
Deposits | $ | 6,345,212 | 4,928,771 | 1,421,234 | — | ||||||||
FHLB advances | 296,944 | — | 312,363 | — | |||||||||
Repurchase agreements and other borrowed funds | 404,418 | — | 404,418 | — | |||||||||
Subordinated debentures | 125,705 | — | 76,711 | — | |||||||||
Accrued interest payable | 4,155 | 4,155 | — | — | |||||||||
Interest rate swaps | 16,668 | — | 16,668 | — | |||||||||
Total financial liabilities | $ | 7,193,102 | 4,932,926 | 2,231,394 | — | ||||||||
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 Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
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 | — | ||||||||
Contingencies_and_Commitments
Contingencies and Commitments | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Contingencies and Commitments | Contingencies and Commitments | ||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, and involve, to varying degrees, elements of credit risk. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||
The Company had the following outstanding commitments: | |||||||
(Dollars in thousands) | December 31, | December 31, | |||||
2014 | 2013 | ||||||
Commitments to extend credit | $ | 960,180 | 866,885 | ||||
Letters of credit | 16,531 | 14,665 | |||||
Total outstanding commitments | $ | 976,711 | 881,550 | ||||
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. |
Mergers_and_Acquisitions
Mergers and Acquisitions | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Business Combinations [Abstract] | ||||||||||
Mergers and Acquisitions | Mergers and Acquisitions | |||||||||
On August 31, 2014, the Company acquired 100 percent of the outstanding common stock of FNBR, a privately-owned company, and its wholly-owned subsidiary, First National Bank of the Rockies, a community bank based in Grand Junction, Colorado. First National Bank of the Rockies provides community banking services to individuals and businesses in northwestern Colorado, with banking offices located in Grand Junction, Steamboat Springs, Meeker, Rangely, Craig, Hayden and Oak Creek. As a result of the acquisition, the Company further diversified its loan and deposit customer base with its increased presence in the state of Colorado. The branches of First National Bank of the Rockies were merged into Glacier Bank and became a part of the Bank of the San Juans division. The consideration paid by the Company to acquire FNBR was $31,817,000, which resulted in the Company issuing 555,732 shares of its common stock and $16,690,000 in cash in exchange for all of FNBR’s outstanding common stock. The fair value of the Company’s common stock shares issued was determined on the basis of the closing market price of the Company’s common stock shares on the August 31, 2014 acquisition date. The Company recorded a $680,000 bargain purchase gain due to the fair value of FNBR’s identifiable net assets exceeding the consideration transferred. The bargain purchase gain is included in other income in the Company’s consolidated statements of operations. Before recognizing the bargain purchase gain, the Company reassessed whether it correctly identified and valued each of the assets acquired and liabilities assumed. The objective of the reassessment process was to ensure that the measurements reflected consideration of all available information as of the acquisition date. The reassessment process included reviewing FNBR’s statement of financial condition to verify that all assets and liabilities had been identified and then re-evaluating and challenging again the procedures and the reasonableness of the significant assumptions utilized in determining the fair value of the identifiable assets and liabilities with respect to the acquisition date. The Company obtained fair value estimates from independent third party specialists for the significant identifiable assets and liabilities, including loans, investment securities and deposits. Following the reassessment process, the Company concluded that the consideration transferred and all of the assets acquired and liabilities assumed had been properly identified and valued. | ||||||||||
On July 31, 2013, the Company acquired 100 percent of the outstanding common stock of NCBI and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. North Cascades Bank provides community banking services to individuals and businesses in central Washington, with banking offices located in Chelan, Wenatchee, East Wenatchee, Omak, Brewster, Twisp, Okanogan, Grand Coulee and Waterville, Washington. The acquisition expanded the Company’s market into central Washington and further diversified the Company’s loan, customer and deposit base due to the region’s solid economic base of agriculture, fruit processing and tourism. North Cascades Bank operates as a division of the Bank under the name “North Cascades Bank, division of Glacier Bank.” The NCBI acquisition was valued at $30,576,000 and resulted in the Company issuing 687,876 shares of its common stock and $13,833,000 in cash in exchange for all of NCBI’s outstanding common stock shares. The fair value of the Company’s common stock shares issued was determined on the basis of the closing market price of the Company’s common stock shares on the July 31, 2013 acquisition date. The excess of the fair value of consideration transferred over total identifiable net assets was recorded as goodwill. The goodwill arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company and NCBI. None of the goodwill is deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange. | ||||||||||
Note 22. Mergers and Acquisitions (continued) | ||||||||||
On May 31, 2013, the Company acquired 100 percent of the outstanding common stock of Wheatland and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. First State Bank provides community banking services to individuals and businesses from banking offices in Wheatland, Torrington and Guernsey, Wyoming. As a result of the acquisition, the Company has increased its presence in the State of Wyoming and further diversified its loan, customer and deposit base with First State Bank’s strong commitment to agriculture. First State Bank operates as a division of the Bank under the name “First State Bank, division of Glacier Bank.” The Wheatland acquisition was valued at $39,315,000 and resulted in the Company issuing 1,455,256 shares of its common stock and $11,025,000 in cash in exchange for all of Wheatland’s outstanding common stock shares. The fair value of the Company’s common stock shares issued was determined on the basis of the closing market price of the Company’s common stock shares on the May 31, 2013 acquisition date. The excess of the fair value of consideration transferred over total identifiable net assets was recorded as goodwill. The goodwill arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of the Company and Wheatland. None of the goodwill is deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange. | ||||||||||
The assets and liabilities of FNBR, NCBI and Wheatland were recorded on the Company’s consolidated statements of financial condition at their estimated fair values as of the August 31, 2014, July 31, 2013 and May 31, 2013 acquisition dates, respectively, and their results of operations have been included in the Company’s consolidated statements of operations since those dates. The following table discloses the calculation of the fair value of the consideration transferred, the total identifiable net assets acquired and the resulting bargain purchase gain or goodwill arising from the FNBR, NCBI and Wheatland acquisitions: | ||||||||||
FNBR | NCBI | Wheatland | ||||||||
(Dollars in thousands) | August 31, | July 31, | May 31, | |||||||
2014 | 2013 | 2013 | ||||||||
Fair value of consideration transferred | ||||||||||
Fair value of Company shares issued, net of equity issuance costs | $ | 15,127 | 16,743 | 28,290 | ||||||
Cash consideration for outstanding shares | 16,690 | 13,833 | 11,025 | |||||||
Contingent consideration | — | — | — | |||||||
Total fair value of consideration transferred | 31,817 | 30,576 | 39,315 | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||
Identifiable assets acquired | ||||||||||
Cash and cash equivalents | 14,578 | 27,865 | 23,148 | |||||||
Investment securities | 157,018 | 48,058 | 75,643 | |||||||
Loans receivable | 137,488 | 215,986 | 171,199 | |||||||
Core deposit intangible | 4,199 | 3,660 | 2,079 | |||||||
Accrued income and other assets | 35,884 | 24,262 | 15,063 | |||||||
Total identifiable assets acquired | 349,167 | 319,831 | 287,132 | |||||||
Liabilities assumed | ||||||||||
Deposits | 309,641 | 294,980 | 255,197 | |||||||
Federal Home Loan Bank advances | — | — | 5,467 | |||||||
Accrued expenses and other liabilities | 7,029 | 4,472 | 562 | |||||||
Total liabilities assumed | 316,670 | 299,452 | 261,226 | |||||||
Total identifiable net assets | 32,497 | 20,379 | 25,906 | |||||||
(Bargain purchase gain) goodwill recognized | $ | (680 | ) | 10,197 | 13,409 | |||||
Note 22. Mergers and Acquisitions (continued) | ||||||||||
The fair value of the FNBR, NCBI and Wheatland assets acquired includes loans with fair values of $137,488,000, $215,986,000 and $171,199,000, respectively. The gross principal and contractual interest due under the FNBR, NCBI and Wheatland contracts is $146,019,000, $223,949,000 and $176,698,000, respectively, all of which is expected to be collectible. | ||||||||||
Core deposit intangible assets related to the FNBR, NCBI and Wheatland acquisitions totaled $4,199,000 with an estimated life of 10 years, $3,660,000 with an estimated life of 10 years, and $2,079,000 with an estimated life of 11 years, respectively. | ||||||||||
The Company incurred $552,000 of FNBR third-party acquisition-related costs during the year ended December 31, 2014. The Company incurred $667,000 and $832,000, respectively, of NCBI and Wheatland third-party acquisition-related costs during the year ended December 31, 2013. The expenses are included in other expense in the Company's consolidated statements of operations. | ||||||||||
Total income consisting of net interest income and non-interest income of the acquired operations of FNBR was approximately $6,672,000 and net income was approximately $1,675,000 from August 31, 2014 to December 31, 2014. Total income consisting of net interest income and non-interest income of the acquired operations of NCBI was approximately $6,837,000 and net income was approximately $1,108,000 from July 31, 2013 to December 31, 2013. Total income consisting of net interest income and non-interest income of the acquired operations of Wheatland was approximately $7,946,000 and net income was approximately $2,100,000 from May 31, 2013 to December 31, 2013. | ||||||||||
The following unaudited pro forma summary presents consolidated information of the Company as if the FNBR acquisition had occurred on January 1, 2013: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Net interest income and non-interest income | $ | 371,772 | 340,393 | |||||||
Net income | 113,364 | 99,275 | ||||||||
The following unaudited pro forma summary presents consolidated information of the Company as if the NCBI and Wheatland acquisitions had occurred on January 1, 2012: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2013 | 2012 | |||||||||
Net interest income and non-interest income | $ | 339,236 | 334,317 | |||||||
Net income | 96,392 | 80,403 | ||||||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 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 individuals and businesses in Montana, Idaho, Wyoming, Colorado, Utah and Washington through 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. | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||
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 valuation of investment securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) 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 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 August 2014, the Company completed its acquisition of FNBR Holding Corporation (“FNBR”) and its wholly-owned subsidiary, First National Bank of the Rockies, a community bank based in Grand Junction, Colorado. In July 2013, the Company completed its acquisition of North Cascades Bancshares, Inc. (“NCBI”) and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. In May 2013, the Company acquired Wheatland Bankshares, Inc. (“Wheatland”) and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. The 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 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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
Pending Acquisition | |||||||||||||
On November 5, 2014, the Company announced the signing of a definitive agreement to acquire Montana Community Banks, Inc. (“Community”) and its wholly-owned subsidiary, Community Bank, Inc., a community bank based in Ronan, Montana. Community provides banking services to individuals and businesses in western Montana, with banking offices located in Missoula, Polson, Ronan and Pablo, Montana. As of December 31, 2014, Community had total assets of $175,041,000, gross loans of $92,952,000 and total deposits of $149,544,000. All necessary regulatory approvals and waivers have been obtained and closing is anticipated to take place in the first quarter of 2015. The branches of Community will be merged into Glacier Bank and will become part of the Glacier Bank and First Security Bank of Missoula bank divisions. | |||||||||||||
Variable Interest Entities | Variable Interest Entities | ||||||||||||
A variable interest entity (“VIE”) exists when either 1) the entity’s total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or 2) the entity has equity investors that cannot make significant decisions about the entity’s operations or that do not absorb their proportionate share of the expected losses or receive the expected returns of the entity. In addition, a VIE must be consolidated by the Company if it is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has the power to direct the VIE’s significant activities and will absorb a majority of the expected losses, receive a majority of the expected residual returns, or both. The Company’s VIEs are regularly monitored to determine if any reconsideration events have occurred that could cause the primary beneficiary status to change. | |||||||||||||
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 VIEs. The underlying activities of the VIEs are community development projects designed primarily to promote community welfare, such as economic rehabilitation and development of low-income areas by providing housing, services, or jobs for residents. The maximum exposure to loss in the VIEs is the amount of equity invested and credit extended by the Company. However, the Company has credit protection in the form of indemnification agreements, guarantees, and collateral arrangements. The primary activities of the VIEs are recognized in commercial loans interest income, other non-interest income and other borrowed funds interest expense on the Company’s statements of operations. Such related cash flows are recognized in loans originated, principal collected on loans and change in other borrowed funds. The Company has evaluated the variable interests held by the Company in each CDE (NMTC) and LIHTC partnership investment and determined that the Company continues to be the primary beneficiary of such VIEs. As the primary beneficiary, the VIEs’ assets, liabilities, and results of operations are included in the Company’s consolidated financial statements. | |||||||||||||
The following table summarizes the carrying amounts of the VIEs’ assets and liabilities included in the Company’s consolidated financial statements at December 31, 2014 and 2013: | |||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
(Dollars in thousands) | CDE (NMTC) | LIHTC | CDE (NMTC) | LIHTC | |||||||||
Assets | |||||||||||||
Loans receivable | $ | 36,077 | — | 36,039 | — | ||||||||
Premises and equipment, net | — | 13,106 | — | 13,536 | |||||||||
Accrued interest receivable | 116 | — | 117 | — | |||||||||
Other assets | 616 | 258 | 843 | 153 | |||||||||
Total assets | $ | 36,809 | 13,364 | 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 | 185 | — | 151 | 189 | |||||||||
Total liabilities | $ | 4,744 | 1,695 | 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. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents include cash on hand, cash held as demand deposits at various banks and the Federal Reserve Bank (“FRB”), interest bearing deposits, federal funds sold, and liquid investments with original maturities of three months or less. | |||||||||||||
Investment Securities | Investment Securities | ||||||||||||
Debt securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Debt and equity securities held primarily for the purpose of selling in the near term are classified as trading securities and are reported at fair market value, with unrealized gains and losses included in income. Debt and equity securities not classified as held-to-maturity or trading are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of other comprehensive income. Premiums and discounts on investment securities are amortized or accreted into income using a method that approximates the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. The Company does not have any investment securities classified as trading securities. | |||||||||||||
The Company reviews and analyzes the various risks that may be present within the investment portfolio on an ongoing basis, including market risk and credit risk. Market risk is the risk to an entity’s financial condition resulting from adverse changes in the value of its holdings arising from movements in interest rates, foreign exchange rates, equity prices or commodity prices. The Company assesses the market risk of individual securities as well as the investment portfolio as a whole. Credit risk, broadly defined, is the risk that an issuer or counterparty will fail to perform on an obligation. A security is investment grade if the issuer has an adequate capacity to meet its commitment over the expected life of the investment, i.e., the risk of default is low and full and timely repayment of interest and principal is expected. To determine investment grade status for securities, the Company conducts due diligence of the creditworthiness of the issuer or counterparty prior to acquisition and ongoing thereafter consistent with the risk characteristics of the security and the overall risk of the investment portfolio. Credit quality due diligence takes into account the extent to which a security is guaranteed by the U.S. government and other agencies of the U.S. government. The depth of the due diligence is based on the complexity of the structure, the size of the security, and takes into account material positions and specific groups of securities or stratifications for analysis and review of similar risk positions. The due diligence includes consideration of payment performance, collateral adequacy, internal analyses, third party research and analytics, external credit ratings and default statistics. | |||||||||||||
For additional information relating to investment securities, see Note 3. | |||||||||||||
Temporary versus Other-Than-Temporary Impairment | Temporary versus Other-Than-Temporary Impairment | ||||||||||||
The Company assesses individual securities in its investment portfolio for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. An investment is impaired if the fair value of the security is less than its carrying value at the financial statement date. If impairment is determined to be other-than-temporary, an impairment loss is recognized by reducing the amortized cost for the credit loss portion of the impairment with a corresponding charge to earnings for a like amount. | |||||||||||||
In evaluating impaired securities for other-than-temporary impairment losses, management considers 1) the severity and duration of the impairment; 2) the credit ratings of the security; and 3) the overall deal structure, including the Company’s position within the structure, the overall and near term financial performance of the issuer and underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, discounted cash flows and fair value estimates. | |||||||||||||
In evaluating debt securities for other-than-temporary impairment losses, management assesses whether the Company intends to sell the security or if it is more-likely-than-not that the Company will be required to sell the debt security. In so doing, management considers contractual constraints, liquidity, capital, asset / liability management and securities portfolio objectives. If impairment is determined to be other-than-temporary and the Company does not intend to sell a debt security, and it is more-likely-than-not the Company will not be required to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion (noncredit portion) in other comprehensive income, net of tax. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively, as an increase to the carrying amount of the security, over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |||||||||||||
If impairment is determined to be other-than-temporary and the Company intends to sell a debt security or it is more-likely-than-not the Company will be required to sell the security before recovery of its cost basis, it recognizes the entire amount of the other-than-temporary impairment in earnings. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
For debt securities with other-than-temporary impairment, the previous amortized cost basis less the other-than-temporary impairment recognized in earnings shall be the new amortized cost basis of the security. In subsequent periods, the Company accretes into interest income the difference between the new amortized cost basis and cash flows expected to be collected prospectively over the life of the debt security. | |||||||||||||
Loans Held for Sale | Loans Held for Sale | ||||||||||||
Loans held for sale generally consist of long-term, fixed rate, conforming, single-family residential real estate loans and are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized by charges to non-interest income. A sale is recognized when the Company surrenders control of the loan and consideration, is received in exchange. A gain is recognized in non-interest income to the extent the sales price exceeds the carrying value of the sold loan. | |||||||||||||
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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. 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 4. | |||||||||||||
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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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. | |||||||||||||
Premises and Equipment | Premises and Equipment | ||||||||||||
Premises and equipment are accounted for at cost less depreciation. Depreciation is computed on a straight-line method over the estimated useful lives or the term of the related lease. The estimated useful life for office buildings is 15 - 40 years and the estimated useful life for furniture, fixtures, and equipment is 3 - 10 years. Interest is capitalized for any significant building projects. For additional information relating to premises and equipment, see Note 5. | |||||||||||||
Leases | Leases | ||||||||||||
The Company leases certain land, premises and equipment from third parties under operating and capital leases. The lease payments for operating lease agreements are recognized on a straight-line basis. The present value of the future minimum rental payments for capital leases is recognized as an asset when the lease is formed. Lease improvements incurred at the inception of the lease are recorded as an asset and depreciated over the initial term of the lease and lease improvements incurred subsequently are depreciated over the remaining term of the lease. For additional information relating to leases, see Note 5. | |||||||||||||
Other Real Estate Owned | Other Real Estate Owned | ||||||||||||
Property acquired by foreclosure or deed-in-lieu of foreclosure is initially recorded at fair value, less estimated selling cost, at acquisition date (i.e., cost of the property). The Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon the occurrence of either the Company obtaining legal title to the property or the borrower conveying all interest in the property through a deed-in-lieu or similar agreement. Fair value is determined as the amount that could be reasonably expected in a current sale between a willing buyer and a willing seller in an orderly transaction between market participants at the measurement date. Subsequent to the initial acquisition, if the fair value of the asset, less estimated selling cost, is less than the cost of the property, a loss is recognized in other expense and the asset carrying value is reduced. Gain or loss on disposition of other real estate owned (“OREO”) is recorded in non-interest income or non-interest expense, respectively. In determining the fair value of the properties on the date of transfer and any subsequent estimated losses of net realizable value, the fair value of other real estate acquired by foreclosure or deed-in-lieu of foreclosure is determined primarily based upon appraisal or evaluation of the underlying property value. | |||||||||||||
Long- Lived Assets | Long-lived Assets | ||||||||||||
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is deemed impaired if the sum of the expected future cash flows is less than the carrying amount of the asset. If impaired, an impairment loss is recognized in other expense to reduce the carrying value of the asset to fair value. At December 31, 2014 and 2013, no long-lived assets were considered impaired. | |||||||||||||
Business Combinations and Intangible Assets | Business Combinations and Intangible Assets | ||||||||||||
Acquisition accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets. Goodwill is recorded if the purchase price exceeds the net fair value of assets acquired and a bargain purchase gain is recorded in other income if the net fair value of assets acquired exceeds the purchase price. | |||||||||||||
Adjustment of the allocated purchase price may be related to fair value estimates for which all information has not been obtained of the acquired entity known or discovered during the allocation period, the period of time required to identify and measure the fair values of the assets and liabilities acquired in the business combination. The allocation period is generally limited to one year following consummation of a business combination. | |||||||||||||
Core deposit intangible represents the intangible value of depositor relationships resulting from deposit liabilities assumed in acquisitions and is amortized using an accelerated method based on an estimated runoff of the related deposits. The core deposit intangible is evaluated for impairment and recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. For additional information relating to core deposit intangibles, see Note 6. | |||||||||||||
The Company tests goodwill for impairment at the reporting unit level annually during the third quarter. The Company has identified that each of the bank divisions are reporting units (i.e., components of the Glacier Bank operating segment) given that each division has a separate management team that regularly reviews its respective division financial information; however, the reporting units are aggregated into a single reporting unit due to the reporting units having similar economic characteristics. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
The goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting units below its carrying amount. Examples of events and circumstances that could trigger the need for interim impairment testing include: | |||||||||||||
• | A significant change in legal factors or in the business climate; | ||||||||||||
• | An adverse action or assessment by a regulator; | ||||||||||||
• | Unanticipated competition; | ||||||||||||
• | A loss of key personnel; | ||||||||||||
• | A more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; and | ||||||||||||
• | The testing for recoverability of a significant asset group within a reporting unit. | ||||||||||||
For the goodwill impairment assessment, the Company has the option, prior to the two-step process, to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. The Company opted to bypass the qualitative assessment for its 2014 and 2013 annual goodwill impairment testing and proceed directly to the two-step goodwill impairment test. The goodwill impairment two-step process requires the Company to make assumptions and judgments regarding fair value. In the first step, the Company calculates an implied fair value based on a control premium analysis. If the implied fair value is less than the carrying value, the second step is completed to compute the impairment amount, if any, by determining the “implied fair value” of goodwill. This determination requires the allocation of the estimated fair value of the reporting units to the assets and liabilities of the reporting units. Any remaining unallocated fair value represents the “implied fair value” of goodwill, which is compared to the corresponding carrying value of goodwill to compute impairment, if any. | |||||||||||||
For additional information relating to goodwill, see Note 6. | |||||||||||||
Non-Marketable Equity Securities | Non-Marketable Equity Securities | ||||||||||||
Non-marketable equity securities primarily consists of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Company’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. | |||||||||||||
Bank-Owned Life Insurance | Bank-Owned Life Insurance | ||||||||||||
The Company maintains bank-owned life insurance policies on certain current and former employees and directors, which are recorded at their cash surrender values as determined by the insurance carriers. At December 31, 2014 and 2013, the carrying value associated with these policies is $46,030,000 and $37,617,000, respectively, and is recorded in other assets in the Company’s statements of financial position. The appreciation in the cash surrender value of the policies is recognized as a component of other non-interest income in the Company’s statements of operations. | |||||||||||||
Derivatives and Hedging Activities | Derivatives and Hedging Activities | ||||||||||||
For asset and liability management purposes, the Company has entered into interest rate swap agreements to hedge against changes in forecasted cash flows due to interest rate exposures. The interest rate swaps are recognized as assets or liabilities on the Company’s statements of financial condition and measured at fair value. Fair value estimates are obtained from third parties and are based on pricing models. The Company does not enter into interest rate swap agreements for trading or speculative purposes. | |||||||||||||
The Company takes into account the impact of bilateral collateral and master netting agreements that allows the Company to settle all interest rate swap agreements held with a single counterparty on a net basis, and to offset the net interest rate swap derivative position with the related collateral when recognizing interest rate swap derivative assets and liabilities. | |||||||||||||
Interest rate swaps are contracts in which a series of interest payments are exchanged over a prescribed period. The notional amount upon which the interest payments are based is not exchanged. The swap agreements are derivative instruments and convert a portion of the Company’s forecasted variable rate debt to a fixed rate (i.e., cash flow hedge) over the payment term of the interest rate swap. The effective portion of the gain or loss on the cash flow hedging instruments is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same period during which the transaction affects earnings. The ineffective portion of the gain or loss on derivative instruments, if any, is recognized in earnings. For the years ended December 31, 2014, 2013, and 2012, the Company’s cash flow hedges were determined to be fully effective. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, highly effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Derivative financial instruments that do not meet specified hedging criteria are recorded at fair value with changes in fair value recorded in income. The Company’s interest rate swaps are considered highly effective and currently meet the hedging accounting criteria. | |||||||||||||
Cash flows resulting from the interest rate derivative financial instruments that are accounted for as hedges of assets and liabilities are classified in the Company’s cash flow statement in the same category as the cash flows of the items being hedged. For additional information relating to interest rate swap agreements, see Note 10. | |||||||||||||
The Company also has residential real estate derivatives for commitments to fund certain residential real estate loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of residential real estate loans to third party investors on a best efforts basis. It is the Company’s practice to enter into forward commitments for the future delivery of residential real estate loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These derivatives are not designated in hedge relationships. Such derivatives are short-term in nature and changes in fair value are not recorded as gains on sale of loans because the change is not significant. | |||||||||||||
Stock-based Compensation | Stock-based Compensation | ||||||||||||
Stock-based compensation awards granted, comprised of stock options and restricted stock awards, are valued at fair value and compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of each award. For additional information relating to stock-based compensation, see Note 12. | |||||||||||||
Advertising and Promotion | Advertising and Promotion | ||||||||||||
Advertising and promotion costs are recognized in the period incurred. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The Company’s income tax expense consists of current and deferred income tax expense. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to earnings or losses. Deferred income tax expense results from changes in deferred assets and liabilities between periods. | |||||||||||||
Deferred tax assets and liabilities are recognized for estimated future income tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||
Deferred tax assets are reduced by a valuation allowance, if based on the weight of available evidence, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The term more-likely-than-not means a likelihood of more than fifty percent. The recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the Company’s judgment. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence. For additional information relating to income taxes, see Note 15. | |||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||
Comprehensive income consists of net income and other comprehensive income (“OCI”). OCI includes unrealized gains and losses, net of tax effect, on available-for-sale securities and derivatives used for cash flow hedges. | |||||||||||||
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, using the treasury stock method. For additional information relating to earnings per share, see Note 17. | |||||||||||||
Reclassifications | Reclassifications | ||||||||||||
Certain reclassifications have been made to the 2013 and 2012 financial statements to conform to the 2014 presentation. | |||||||||||||
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 August 2014, FASB amended FASB ASC Subtopic 310-40, Receivables - Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The amendment requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: 1) The loan has a government guarantee that is not separable from the loan before foreclosure; 2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and 3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. 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 prospective transition method or a modified retrospective method as defined in the amendment. The Company has evaluated the impact of the adoption of this amendment and determined there would not be a material effect on the Company’s financial position or results of operations. | |||||||||||||
In June 2014, FASB amended FASB ASC Topic 860, Transfers and Servicing. The amendments in this Update require the following two accounting changes: 1) change the accounting for repurchase-to-maturity transactions to secured borrowing accounting; and 2) for repurchase finance arrangements, require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in a secured borrowing accounting for the repurchase agreement. The amendments also require certain disclosures for securities sold under agreements to repurchase (“repurchase agreements”), securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The accounting changes are effective for public business entities for the first interim or annual reporting periods beginning after December 15, 2014. Early application for public business entities is not permitted. The disclosure changes for repurchase agreements are effective for public business entities for annual reporting 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. | |||||||||||||
In May 2014, FASB amended FASB ASC Topic 606, Revenue from Contracts with Customers. The amendments clarify the principals for recognizing revenue and develop a common revenue standard among industries. The new guidance establishes the following core principal: recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods or services. Five steps are provided for a company or organization to follow to achieve such core principle. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within the reporting period. Early application is not permitted. The entity should apply the amendments using one of two retrospective methods described in the amendment. 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. | |||||||||||||
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 has evaluated the impact of the adoption of this amendment and determined there was not a material effect on the Company’s financial position or results of operations. | |||||||||||||
Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) | |||||||||||||
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) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Carrying amounts of VIE's assets and liabilities | The following table summarizes the carrying amounts of the VIEs’ assets and liabilities included in the Company’s consolidated financial statements at December 31, 2014 and 2013: | ||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
(Dollars in thousands) | CDE (NMTC) | LIHTC | CDE (NMTC) | LIHTC | |||||||||
Assets | |||||||||||||
Loans receivable | $ | 36,077 | — | 36,039 | — | ||||||||
Premises and equipment, net | — | 13,106 | — | 13,536 | |||||||||
Accrued interest receivable | 116 | — | 117 | — | |||||||||
Other assets | 616 | 258 | 843 | 153 | |||||||||
Total assets | $ | 36,809 | 13,364 | 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 | 185 | — | 151 | 189 | |||||||||
Total liabilities | $ | 4,744 | 1,695 | 4,710 | 1,917 | ||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 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-Dec-14 | |||||||||||||||||||
Amortized Cost | Gross Unrealized | Fair Value | |||||||||||||||||
(Dollars in thousands) | Gains | Losses | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
U.S. government and federal agency | $ | 44 | — | — | 44 | ||||||||||||||
U.S. government sponsored enterprises | 21,916 | 31 | (2 | ) | 21,945 | ||||||||||||||
State and local governments | 962,365 | 40,173 | (4,569 | ) | 997,969 | ||||||||||||||
Corporate bonds | 313,545 | 2,059 | (750 | ) | 314,854 | ||||||||||||||
Residential mortgage-backed securities | 1,043,897 | 11,205 | (2,486 | ) | 1,052,616 | ||||||||||||||
Total available-for-sale | 2,341,767 | 53,468 | (7,807 | ) | 2,387,428 | ||||||||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | 520,997 | 32,925 | (2,976 | ) | 550,946 | ||||||||||||||
Total held-to-maturity | 520,997 | 32,925 | (2,976 | ) | 550,946 | ||||||||||||||
Total investment securities | $ | 2,862,764 | 86,393 | (10,783 | ) | 2,938,374 | |||||||||||||
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 | 1,380,816 | 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 | |||||||||||||
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 December 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-Dec-14 | |||||||||||||||||||
Available-for-Sale | Held-to-Maturity | ||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||
Due within one year | $ | 126,102 | 126,779 | — | — | ||||||||||||||
Due after one year through five years | 367,037 | 370,349 | — | — | |||||||||||||||
Due after five years through ten years | 90,172 | 93,356 | 188 | 188 | |||||||||||||||
Due after ten years | 714,559 | 744,328 | 520,809 | 550,758 | |||||||||||||||
1,297,870 | 1,334,812 | 520,997 | 550,946 | ||||||||||||||||
Residential mortgage-backed securities 1 | 1,043,897 | 1,052,616 | — | — | |||||||||||||||
Total | $ | 2,341,767 | 2,387,428 | 520,997 | 550,946 | ||||||||||||||
________ | |||||||||||||||||||
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 | Gain or loss on sale of investment securities consists of the following: | ||||||||||||||||||
Years ended | |||||||||||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Available-for-sale | |||||||||||||||||||
Gross proceeds | $ | 219,849 | 181,971 | — | |||||||||||||||
Less amortized cost 1 | (220,053 | ) | (182,270 | ) | — | ||||||||||||||
Net available-for-sale | $ | (204 | ) | (299 | ) | — | |||||||||||||
Gross gain on sale of investments | $ | 501 | 3,723 | — | |||||||||||||||
Gross loss on sale of investments | (705 | ) | (4,022 | ) | — | ||||||||||||||
Net available-for-sale | $ | (204 | ) | (299 | ) | — | |||||||||||||
Held-to-maturity 2 | |||||||||||||||||||
Gross proceeds | $ | 8,930 | — | — | |||||||||||||||
Less amortized cost 1 | (8,914 | ) | — | — | |||||||||||||||
Net held-to-maturity | $ | 16 | — | — | |||||||||||||||
Gross gain on sale of investments | $ | 22 | — | — | |||||||||||||||
Gross loss on sale of investments | (6 | ) | — | — | |||||||||||||||
Net held-to-maturity | $ | 16 | — | — | |||||||||||||||
__________ | |||||||||||||||||||
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 investment securities with an unrealized loss position | Investment securities with an unrealized loss position are summarized as follows: | ||||||||||||||||||
31-Dec-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 and federal agency | $ | — | — | 3 | — | 3 | — | ||||||||||||
U.S. government sponsored enterprises | 13,793 | (2 | ) | — | — | 13,793 | (2 | ) | |||||||||||
State and local governments | 91,082 | (1,273 | ) | 115,927 | (3,296 | ) | 207,009 | (4,569 | ) | ||||||||||
Corporate bonds | 60,289 | (545 | ) | 7,874 | (205 | ) | 68,163 | (750 | ) | ||||||||||
Residential mortgage-backed securities | 192,962 | (926 | ) | 78,223 | (1,560 | ) | 271,185 | (2,486 | ) | ||||||||||
Total available-for-sale | $ | 358,126 | (2,746 | ) | 202,027 | (5,061 | ) | 560,153 | (7,807 | ) | |||||||||
Held-to-maturity | |||||||||||||||||||
State and local governments | $ | 18,643 | (624 | ) | 76,761 | (2,352 | ) | 95,404 | (2,976 | ) | |||||||||
Total held-to-maturity | $ | 18,643 | (624 | ) | 76,761 | (2,352 | ) | 95,404 | (2,976 | ) | |||||||||
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) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||
Summary of activity in the ALLL | The following schedules summarize the activity in the ALLL: | ||||||||||||||||||
Year ended December 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 | 1,912 | 716 | (2,877 | ) | 3,708 | 1,254 | (889 | ) | |||||||||||
Charge-offs | (7,603 | ) | (431 | ) | (1,802 | ) | (3,058 | ) | (1,038 | ) | (1,274 | ) | |||||||
Recoveries | 5,093 | 328 | 2,146 | 1,611 | 448 | 560 | |||||||||||||
Balance at end of period | $ | 129,753 | 14,680 | 67,799 | 30,891 | 9,963 | 6,420 | ||||||||||||
Year ended December 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 | 6,887 | (921 | ) | (3,670 | ) | 10,271 | 868 | 339 | |||||||||||
Charge-offs | (13,643 | ) | (793 | ) | (3,736 | ) | (4,671 | ) | (2,594 | ) | (1,849 | ) | |||||||
Recoveries | 6,253 | 299 | 3,340 | 1,463 | 366 | 785 | |||||||||||||
Balance at end of period | $ | 130,351 | 14,067 | 70,332 | 28,630 | 9,299 | 8,023 | ||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||
(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 | $ | 137,516 | 17,227 | 76,920 | 20,833 | 13,616 | 8,920 | ||||||||||||
Provision for loan losses | 21,525 | 2,879 | 11,012 | 4,690 | 324 | 2,620 | |||||||||||||
Charge-offs | (34,672 | ) | (5,267 | ) | (16,339 | ) | (5,239 | ) | (4,369 | ) | (3,458 | ) | |||||||
Recoveries | 6,485 | 643 | 2,805 | 1,283 | 1,088 | 666 | |||||||||||||
Balance at end of period | $ | 130,854 | 15,482 | 74,398 | 21,567 | 10,659 | 8,748 | ||||||||||||
Summary of ALLL and loans receivable | The following schedules disclose the ALLL and loans receivable: | ||||||||||||||||||
31-Dec-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 | $ | 11,597 | 853 | 2,967 | 6,836 | 447 | 494 | ||||||||||||
Collectively evaluated for impairment | 118,156 | 13,827 | 64,832 | 24,055 | 9,516 | 5,926 | |||||||||||||
Total allowance for loan and lease losses | $ | 129,753 | 14,680 | 67,799 | 30,891 | 9,963 | 6,420 | ||||||||||||
Loans receivable | |||||||||||||||||||
Individually evaluated for impairment | $ | 161,366 | 19,576 | 105,264 | 25,321 | 6,901 | 4,304 | ||||||||||||
Collectively evaluated for impairment | 4,326,729 | 591,887 | 2,232,284 | 900,579 | 387,769 | 214,210 | |||||||||||||
Total loans receivable | $ | 4,488,095 | 611,463 | 2,337,548 | 925,900 | 394,670 | 218,514 | ||||||||||||
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 the impaired loans | The following schedules disclose the impaired loans: | ||||||||||||||||||
At or for the Year ended December 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 | $ | 45,688 | 4,110 | 27,155 | 11,377 | 1,214 | 1,832 | ||||||||||||
Unpaid principal balance | 48,477 | 4,276 | 28,048 | 12,461 | 1,336 | 2,356 | |||||||||||||
Specific valuation allowance | 11,597 | 853 | 2,967 | 6,836 | 447 | 494 | |||||||||||||
Average balance | 53,339 | 5,480 | 24,519 | 19,874 | 1,039 | 2,427 | |||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||
Recorded balance | $ | 115,678 | 15,466 | 78,109 | 13,944 | 5,687 | 2,472 | ||||||||||||
Unpaid principal balance | 145,038 | 16,683 | 100,266 | 19,117 | 6,403 | 2,569 | |||||||||||||
Average balance | 128,645 | 15,580 | 89,015 | 14,024 | 7,163 | 2,863 | |||||||||||||
Total | |||||||||||||||||||
Recorded balance | $ | 161,366 | 19,576 | 105,264 | 25,321 | 6,901 | 4,304 | ||||||||||||
Unpaid principal balance | 193,515 | 20,959 | 128,314 | 31,578 | 7,739 | 4,925 | |||||||||||||
Specific valuation allowance | 11,597 | 853 | 2,967 | 6,836 | 447 | 494 | |||||||||||||
Average balance | 181,984 | 21,060 | 113,534 | 33,898 | 8,202 | 5,290 | |||||||||||||
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 | |||||||||||||
Total | |||||||||||||||||||
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 | The following is a loans receivable aging analysis: | ||||||||||||||||||
31-Dec-14 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Accruing loans 30-59 days past due | $ | 19,139 | 3,506 | 7,925 | 5,310 | 1,374 | 1,024 | ||||||||||||
Accruing loans 60-89 days past due | 6,765 | 1,686 | 3,592 | 609 | 679 | 199 | |||||||||||||
Accruing loans 90 days or more past due | 214 | 35 | 31 | 74 | 17 | 57 | |||||||||||||
Non-accrual loans | 61,882 | 6,798 | 39,717 | 8,421 | 5,969 | 977 | |||||||||||||
Total past due and non-accrual loans | 88,000 | 12,025 | 51,265 | 14,414 | 8,039 | 2,257 | |||||||||||||
Current loans receivable | 4,400,095 | 599,438 | 2,286,283 | 911,486 | 386,631 | 216,257 | |||||||||||||
Total loans receivable | $ | 4,488,095 | 611,463 | 2,337,548 | 925,900 | 394,670 | 218,514 | ||||||||||||
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 | 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: | ||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 51 | — | 18 | 24 | 6 | 3 | |||||||||||||
Pre-modification recorded balance | $ | 37,781 | — | 21,760 | 12,522 | 3,385 | 114 | ||||||||||||
Post-modification recorded balance | $ | 37,075 | — | 21,803 | 11,884 | 3,274 | 114 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 5 | — | 2 | 1 | 2 | — | |||||||||||||
Recorded balance | $ | 4,453 | — | 927 | 693 | 2,833 | — | ||||||||||||
Note 4. Loans Receivable, Net (continued) | |||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 63 | 9 | 21 | 23 | 2 | 8 | |||||||||||||
Pre-modification recorded balance | $ | 29,046 | 1,907 | 20,334 | 6,087 | 147 | 571 | ||||||||||||
Post-modification recorded balance | $ | 29,359 | 2,293 | 20,334 | 6,087 | 147 | 498 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 5 | 1 | 1 | 3 | — | — | |||||||||||||
Recorded balance | $ | 849 | 265 | 79 | 505 | — | — | ||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||
(Dollars in thousands) | Total | Residential | Commercial | Other | Home | Other | |||||||||||||
Real Estate | Real Estate | Commercial | Equity | Consumer | |||||||||||||||
Troubled debt restructurings | |||||||||||||||||||
Number of loans | 198 | 11 | 85 | 75 | 10 | 17 | |||||||||||||
Pre-modification recorded balance | $ | 90,747 | 2,280 | 57,382 | 28,639 | 1,358 | 1,088 | ||||||||||||
Post-modification recorded balance | $ | 89,558 | 2,281 | 56,120 | 28,711 | 1,358 | 1,088 | ||||||||||||
Troubled debt restructurings that subsequently defaulted | |||||||||||||||||||
Number of loans | 14 | — | 4 | 6 | 3 | 1 | |||||||||||||
Recorded balance | $ | 8,304 | — | 6,192 | 1,753 | 301 | 58 | ||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Premises and equipment, net of accumulated depreciation | Premises and equipment, net of accumulated depreciation, consist of the following: | |||||||||
(Dollars in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||
Land | $ | 27,605 | 27,260 | |||||||
Office buildings and construction in progress | 172,544 | 159,391 | ||||||||
Furniture, fixtures and equipment | 70,622 | 66,375 | ||||||||
Leasehold improvements | 7,813 | 7,589 | ||||||||
Accumulated depreciation | (99,409 | ) | (92,944 | ) | ||||||
Net premises and equipment | $ | 179,175 | 167,671 | |||||||
Future Minimum Rental Commitments required under Operating and Capital Leases | The total future minimum rental commitments required under operating and capital leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2014 are as follows: | |||||||||
(Dollars in thousands) | Capital | Operating | Total | |||||||
Leases | Leases | |||||||||
Years ending December 31, | ||||||||||
2015 | $ | 694 | 2,348 | 3,042 | ||||||
2016 | 92 | 2,089 | 2,181 | |||||||
2017 | 92 | 1,786 | 1,878 | |||||||
2018 | 92 | 1,541 | 1,633 | |||||||
2019 | 92 | 1,360 | 1,452 | |||||||
Thereafter | 103 | 3,820 | 3,923 | |||||||
Total minimum lease payments | 1,165 | 12,944 | 14,109 | |||||||
Less: Amount representing interest | 99 | |||||||||
Present value of minimum lease payments | 1,066 | |||||||||
Less: Current portion of obligations under capital leases | 659 | |||||||||
Long-term portion of obligations under capital leases | $ | 407 | ||||||||
Other_Intangible_Assets_and_Go1
Other Intangible Assets and Goodwill (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||
Core deposit intangibles | The following table sets forth information regarding the Company’s core deposit intangibles: | |||||||||
At or for the Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Gross carrying value | $ | 32,056 | 27,857 | 22,404 | ||||||
Accumulated amortization | (21,156 | ) | (18,345 | ) | (16,230 | ) | ||||
Net carrying value | $ | 10,900 | 9,512 | 6,174 | ||||||
Aggregate amortization expense | $ | 2,811 | 2,401 | 2,110 | ||||||
Weighted-average amortization period | ||||||||||
(Period in years) | 9.6 | |||||||||
Estimated amortization expense for the years ending December 31, | ||||||||||
2015 | $ | 2,676 | ||||||||
2016 | 2,170 | |||||||||
2017 | 1,287 | |||||||||
2018 | 876 | |||||||||
2019 | 810 | |||||||||
Changes in the carrying value of goodwill | The following schedule discloses the changes in the carrying value of goodwill: | |||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Net carrying value at beginning of period | $ | 129,706 | 106,100 | 106,100 | ||||||
Acquisitions | — | 23,606 | — | |||||||
Net carrying value at end of period | $ | 129,706 | 129,706 | 106,100 | ||||||
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) | December 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 | |||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Deposits [Abstract] | ||||
Scheduled maturities of time deposits | The scheduled maturities of time deposits are as follows and include $15,699,000 of wholesale deposits as of December 31, 2014: | |||
(Dollars in thousands) | Amount | |||
Years ending December 31, | ||||
2015 | $ | 871,060 | ||
2016 | 182,513 | |||
2017 | 72,987 | |||
2018 | 23,335 | |||
2019 | 29,745 | |||
Thereafter | 3,287 | |||
$ | 1,182,927 | |||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
FHLB Advances | The scheduled maturities of FHLB advances consist of the following: | |||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||
(Dollars in thousands) | Amount | Weighted | Amount | Weighted | ||||||||||
Rate | Rate | |||||||||||||
Maturing within one year | $ | 93,979 | 2.81 | % | $ | 559,084 | 0.24 | % | ||||||
Maturing one year through two years | 45,042 | 2.99 | % | 77,979 | 3.36 | % | ||||||||
Maturing two years through three years | — | — | % | 45,042 | 2.99 | % | ||||||||
Maturing three years through four years | 20,250 | 2.83 | % | — | — | % | ||||||||
Maturing four years through five years | 174 | 4.74 | % | 20,250 | 2.83 | % | ||||||||
Thereafter | 137,499 | 3.12 | % | 137,827 | 3.12 | % | ||||||||
Total | $ | 296,944 | 2.98 | % | $ | 840,182 | 1.21 | % | ||||||
Subordinated_Debentures_Tables
Subordinated Debentures (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Debt Instruments [Abstract] | |||||||||||
Terms of Subordinated Debentures | The terms of the subordinated debentures, arranged by maturity date, are reflected in the table below. The amounts include fair value adjustments from acquisitions. | ||||||||||
31-Dec-14 | Variable Rate Structure | Maturity Date | |||||||||
(Dollars in thousands) | Balance | Rate | |||||||||
First Company Statutory Trust 2001 | $ | 3,081 | 3.533 | % | 3 mo LIBOR plus 3.30% | 7/31/31 | |||||
First Company Statutory Trust 2003 | 2,272 | 3.505 | % | 3 mo LIBOR plus 3.25% | 3/26/33 | ||||||
Glacier Capital Trust II | 46,393 | 2.98 | % | 3 mo LIBOR plus 2.75% | 4/7/34 | ||||||
Citizens (ID) Statutory Trust I | 5,155 | 2.893 | % | 3 mo LIBOR plus 2.65% | 6/17/34 | ||||||
Glacier Capital Trust III | 36,083 | 1.52 | % | 3 mo LIBOR plus 1.29% | 4/7/36 | ||||||
Glacier Capital Trust IV | 30,928 | 1.811 | % | 3 mo LIBOR plus 1.57% | 9/15/36 | ||||||
Bank of the San Juans Bancorporation Trust I | 1,793 | 2.056 | % | 3 mo LIBOR plus 1.82% | 3/1/37 | ||||||
$ | 125,705 | ||||||||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||
Summary of Interest Rate Swap Derivative Financial Instruments | The Company’s interest rate swap derivative financial instruments as of December 31, 2014 are as follows: | ||||||||||||||||||
(Dollars in thousands) | Forecasted | Variable | Fixed | Payment 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 counterparty pays the Company the variable interest rate. | |||||||||||||||||||
2 No cash will be exchanged prior to the beginning of the payment term. | |||||||||||||||||||
Summary of Pre-Tax Gains or Losses | The following table presents the pre-tax gains or losses recorded in accumulated other comprehensive income and the Company’s statements of operations relating to the interest rate swap derivative financial instruments: | ||||||||||||||||||
Years ended | |||||||||||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Interest rate swaps | |||||||||||||||||||
Amount of (loss) gain recognized in OCI (effective portion) | $ | (19,557 | ) | 18,728 | (7,926 | ) | |||||||||||||
Amount of loss reclassified from OCI to interest expense | (993 | ) | — | — | |||||||||||||||
Amount of loss recognized in other non-interest expense (ineffective portion) | — | — | — | ||||||||||||||||
Offsetting Assets | The following table discloses the offsetting of financial assets and interest rate swap derivative assets: | ||||||||||||||||||
December 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 | $ | — | — | — | 6,844 | (4,948 | ) | 1,896 | |||||||||||
Offsetting Liabilities | The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities: | ||||||||||||||||||
December 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 | $ | 16,668 | — | 16,668 | 4,948 | (4,948 | ) | — | |||||||||||
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||
Capital adequacy guidelines and compliance | The following tables illustrate the FRB’s adequacy guidelines and the Company’s and the Bank’s compliance with those guidelines: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Actual | Minimum Capital | Well Capitalized | |||||||||||||||||||
Requirement | Requirement | ||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 1,065,282 | 18.93 | % | $ | 450,240 | 8 | % | $ | 562,800 | 10 | % | |||||||||
Glacier Bank | 1,023,669 | 18.25 | % | 448,739 | 8 | % | 560,924 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 994,197 | 17.67 | % | $ | 225,120 | 4 | % | $ | 337,680 | 6 | % | |||||||||
Glacier Bank | 952,815 | 16.99 | % | 224,370 | 4 | % | 336,554 | 6 | % | ||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||
Consolidated | $ | 994,197 | 12.45 | % | $ | 319,505 | 4 | % | N/A | N/A | |||||||||||
Glacier Bank | 952,815 | 12.03 | % | 316,938 | 4 | % | $ | 396,173 | 5 | % | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Actual | Minimum Capital | Well Capitalized | |||||||||||||||||||
Requirement | Requirement | ||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 1,005,980 | 18.97 | % | $ | 424,322 | 8 | % | $ | 530,402 | 10 | % | |||||||||
Glacier Bank | 948,618 | 17.93 | % | 423,235 | 8 | % | 529,044 | 10 | % | ||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||
Consolidated | $ | 938,887 | 17.7 | % | $ | 212,161 | 4 | % | $ | 318,241 | 6 | % | |||||||||
Glacier Bank | 881,692 | 16.67 | % | 211,618 | 4 | % | 317,426 | 6 | % | ||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||
Consolidated | $ | 938,887 | 12.11 | % | $ | 310,082 | 4 | % | N/A | N/A | |||||||||||
Glacier Bank | 881,692 | 11.44 | % | 308,281 | 4 | % | $ | 385,351 | 5 | % | |||||||||||
Stockbased_Compensation_Plan_T
Stock-based Compensation Plan (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Changes in shares granted for stock options | Changes in shares granted for stock options for the year ended December 31, 2014 are summarized as follows: | ||||||
Options | Weighted- | ||||||
Average | |||||||
Exercise Price | |||||||
Outstanding at December 31, 2013 | 58,810 | $ | 15.47 | ||||
Exercised | (56,360 | ) | 15.45 | ||||
Forfeited or expired | (1,450 | ) | 15.37 | ||||
Outstanding at December 31, 2014 | 1,000 | 16.73 | |||||
Exercisable at December 31, 2014 | 1,000 | 16.73 | |||||
Activity for restricted stock awards | The following table summarizes the restricted stock award activity for the year ended December 31, 2014: | ||||||
Restricted Stock | Weighted- | ||||||
Average | |||||||
Grant Date Fair Value | |||||||
Non-vested at December 31, 2013 | 117,442 | $ | 16.76 | ||||
Granted | 97,367 | 26.63 | |||||
Vested | (51,068 | ) | 18.66 | ||||
Forfeited | (1,688 | ) | 21.76 | ||||
Non-vested at December 31, 2014 | 162,053 | 22.04 | |||||
Other_Expenses_Tables
Other Expenses (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Other Expenses [Abstract] | ||||||||||
Schedule of Other Expenses | Other expenses consists of the following: | |||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Debit card expenses | $ | 5,802 | 6,131 | 4,497 | ||||||
VIE write-downs, losses and other expenses | 4,231 | 4,210 | 3,879 | |||||||
Consulting and outside services | 4,179 | 3,243 | 2,079 | |||||||
Employee expenses | 3,557 | 2,686 | 2,098 | |||||||
Printing and supplies | 3,547 | 3,112 | 2,922 | |||||||
Checking and operating expenses | 3,517 | 3,091 | 1,644 | |||||||
Postage | 3,391 | 3,302 | 3,120 | |||||||
Telephone | 2,911 | 2,498 | 2,252 | |||||||
Loan expenses | 2,513 | 2,444 | 3,430 | |||||||
Legal fees | 1,455 | 1,728 | 1,521 | |||||||
Accounting and audit fees | 1,393 | 1,146 | 1,442 | |||||||
ATM expenses | 1,268 | 1,087 | 1,161 | |||||||
Other | 3,884 | 4,178 | 6,042 | |||||||
Total other expenses | $ | 41,648 | 38,856 | 36,087 | ||||||
Federal_and_State_Income_Taxes1
Federal and State Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Summary of consolidated income tax expense | The following is a summary of consolidated income tax expense: | |||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Current | ||||||||||
Federal | $ | 21,860 | 18,377 | 12,718 | ||||||
State | 8,118 | 7,007 | 5,522 | |||||||
Total current income tax expense | 29,978 | 25,384 | 18,240 | |||||||
Deferred | ||||||||||
Federal | 5,016 | 3,918 | 708 | |||||||
State | 915 | 715 | 129 | |||||||
Total deferred income tax expense | 5,931 | 4,633 | 837 | |||||||
Total income tax expense | $ | 35,909 | 30,017 | 19,077 | ||||||
Summary of effective tax rate | Combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: | |||||||||
Years ended | ||||||||||
December 31, | December 31, | December 31, | ||||||||
2014 | 2013 | 2012 | ||||||||
Federal statutory rate | 35 | % | 35 | % | 35 | % | ||||
State taxes, net of federal income tax benefit | 4 | % | 4 | % | 3.9 | % | ||||
Tax-exempt interest income | (11.5 | )% | (12.2 | )% | (14.0 | )% | ||||
Tax credits | (2.8 | )% | (3.2 | )% | (4.2 | )% | ||||
Other, net | (0.5 | )% | 0.3 | % | (0.5 | )% | ||||
Effective tax rate | 24.2 | % | 23.9 | % | 20.2 | % | ||||
Summary of net deferred tax asset | The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows: | |||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Deferred tax assets | ||||||||||
Allowance for loan and lease losses | $ | 50,013 | 50,652 | |||||||
Other real estate owned | 8,200 | 8,041 | ||||||||
Interest rate swap agreements | 6,467 | — | ||||||||
Acquisition fair market value adjustments | 5,302 | 4,151 | ||||||||
Deferred compensation | 5,024 | 4,837 | ||||||||
Income tax credits and net operating loss carryforwards | 4,652 | 2,778 | ||||||||
Employee benefits | 2,839 | 3,132 | ||||||||
Other | 4,290 | 3,662 | ||||||||
Total gross deferred tax assets | 86,787 | 77,253 | ||||||||
Deferred tax liabilities | ||||||||||
Available-for-sale securities | (17,716 | ) | (5,402 | ) | ||||||
FHLB stock dividends | (10,342 | ) | (10,359 | ) | ||||||
Deferred loan costs | (6,419 | ) | (6,058 | ) | ||||||
Intangibles | (4,290 | ) | (3,099 | ) | ||||||
Depreciation of premises and equipment | (2,358 | ) | (3,939 | ) | ||||||
Interest rate swap agreements | — | (736 | ) | |||||||
Other | (3,925 | ) | (4,111 | ) | ||||||
Total gross deferred tax liabilities | (45,050 | ) | (33,704 | ) | ||||||
Net deferred tax asset | $ | 41,737 | 43,549 | |||||||
Income tax returns jurisdictions and years subject to examination | The following schedule summarizes the years that remain subject to examination as of December 31, 2014: | |||||||||
Years ended December 31, | ||||||||||
Federal | 2008, 2009, 2010, 2011, 2012 and 2013 | |||||||||
Montana | 2011, 2012 and 2013 | |||||||||
Idaho | 2009, 2010, 2011, 2012 and 2013 | |||||||||
Colorado | 2008, 2009, 2010, 2011, 2012 and 2013 | |||||||||
Utah | 2011, 2012 and 2013 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Equity [Abstract] | ||||||||||
Activity within Accumulated Other Comprehensive Income, Net of Tax | The following table illustrates the activity within accumulated other comprehensive income by component, net of tax: | |||||||||
(Dollars in thousands) | Gains (Losses) on Available-For-Sale Securities | (Losses) Gains on Derivatives Used for Cash Flow Hedges | Total | |||||||
Balance at December 31, 2011 | $ | 38,928 | (5,441 | ) | 33,487 | |||||
Other comprehensive income (loss) before reclassification | 19,317 | (4,842 | ) | 14,475 | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | — | — | |||||||
Net current period other comprehensive income (loss) | 19,317 | (4,842 | ) | 14,475 | ||||||
Balance at December 31, 2012 | 58,245 | (10,283 | ) | 47,962 | ||||||
Other comprehensive (loss) income before reclassification | (49,943 | ) | 11,443 | (38,500 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | 183 | — | 183 | |||||||
Net current period other comprehensive (loss) income | (49,760 | ) | 11,443 | (38,317 | ) | |||||
Balance at December 31, 2013 | 8,485 | 1,160 | 9,645 | |||||||
Other comprehensive income (loss) before reclassification | 19,335 | (11,969 | ) | 7,366 | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 125 | 608 | 733 | |||||||
Net current period other comprehensive income (loss) | 19,460 | (11,361 | ) | 8,099 | ||||||
Balance at December 31, 2014 | $ | 27,945 | (10,201 | ) | 17,744 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 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: | |||||||||
Years ended | ||||||||||
(Dollars in thousands, except per share data) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Net income available to common stockholders, basic and diluted | $ | 112,755 | 95,644 | 75,516 | ||||||
Average outstanding shares - basic | 74,641,957 | 73,191,713 | 71,928,570 | |||||||
Add: dilutive stock options and awards | 45,358 | 68,565 | 86 | |||||||
Average outstanding shares - diluted | 74,687,315 | 73,260,278 | 71,928,656 | |||||||
Basic earnings per share | $ | 1.51 | 1.31 | 1.05 | ||||||
Diluted earnings per share | $ | 1.51 | 1.31 | 1.05 | ||||||
Parent_Holding_Company_Informa1
Parent Holding Company Information (Condensed) (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition | |||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Assets | ||||||||||
Cash on hand and in banks | $ | 4,019 | 1,582 | |||||||
Interest bearing cash deposits | 51,127 | 49,097 | ||||||||
Cash and cash equivalents | 55,146 | 50,679 | ||||||||
Investment securities, available-for-sale | 91 | 87 | ||||||||
Other assets | 8,511 | 9,050 | ||||||||
Investment in subsidiaries | 1,121,937 | 1,040,104 | ||||||||
Total assets | $ | 1,185,685 | 1,099,920 | |||||||
Liabilities and Stockholders’ Equity | ||||||||||
Dividends payable | $ | 22,557 | — | |||||||
Subordinated debentures | 125,705 | 125,562 | ||||||||
Other liabilities | 9,376 | 11,108 | ||||||||
Total liabilities | 157,638 | 136,670 | ||||||||
Common stock | 750 | 744 | ||||||||
Paid-in capital | 708,356 | 690,918 | ||||||||
Retained earnings | 301,197 | 261,943 | ||||||||
Accumulated other comprehensive income | 17,744 | 9,645 | ||||||||
Total stockholders’ equity | 1,028,047 | 963,250 | ||||||||
Total liabilities and stockholders’ equity | $ | 1,185,685 | 1,099,920 | |||||||
Condensed Statements of Operations and Comprehensive Income | Condensed Statements of Operations and Comprehensive Income | |||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Income | ||||||||||
Dividends from subsidiaries | $ | 78,500 | 65,445 | 78,209 | ||||||
Loss on sale of investments | — | (3,248 | ) | — | ||||||
Other income | 199 | 966 | 566 | |||||||
Intercompany charges for services | 9,283 | 7,387 | 16,041 | |||||||
Total income | 87,982 | 70,550 | 94,816 | |||||||
Expenses | ||||||||||
Compensation and employee benefits | 10,773 | 9,175 | 12,392 | |||||||
Other operating expenses | 6,824 | 6,536 | 10,267 | |||||||
Total expenses | 17,597 | 15,711 | 22,659 | |||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 70,385 | 54,839 | 72,157 | |||||||
Income tax benefit | 2,919 | 3,676 | 2,319 | |||||||
Income before equity in undistributed net income of subsidiaries | 73,304 | 58,515 | 74,476 | |||||||
Equity in undistributed net income of subsidiaries | 39,451 | 37,129 | 1,040 | |||||||
Net Income | $ | 112,755 | 95,644 | 75,516 | ||||||
Comprehensive Income | $ | 120,854 | 57,327 | 89,991 | ||||||
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows | |||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | December 31, | |||||||
2014 | 2013 | 2012 | ||||||||
Operating Activities | ||||||||||
Net income | $ | 112,755 | 95,644 | 75,516 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Subsidiary income in excess of dividends distributed | (39,451 | ) | (37,129 | ) | (1,040 | ) | ||||
Loss on sale of investments | — | 3,248 | — | |||||||
Excess tax (benefits) deficiencies from stock-based compensation | (138 | ) | 223 | 8 | ||||||
Net change in other assets and other liabilities | 140 | 2,575 | 3,684 | |||||||
Net cash provided by operating activities | 73,306 | 64,561 | 78,168 | |||||||
Investing Activities | ||||||||||
Sales of available-for-sale securities | — | 23,990 | — | |||||||
Maturities, prepayments and calls of available-for-sale securities | — | 2,571 | 787 | |||||||
Changes in investment securities and other stock - intercompany | — | (946 | ) | (19,183 | ) | |||||
Net addition of premises and equipment | (179 | ) | (603 | ) | (2,927 | ) | ||||
Net sale of non-marketable equity securities | (667 | ) | — | — | ||||||
Equity contributions to subsidiaries | (18,115 | ) | (11,336 | ) | (28,500 | ) | ||||
Net cash (used in) provided by investing activities | (18,961 | ) | 13,676 | (49,823 | ) | |||||
Financing Activities | ||||||||||
Net increase in other borrowed funds | 143 | 144 | 143 | |||||||
Cash dividends paid | (50,944 | ) | (44,232 | ) | (47,472 | ) | ||||
Excess tax benefits (deficiencies) from stock-based compensation | 138 | (223 | ) | (8 | ) | |||||
Stock-based compensation activity | 785 | 4,326 | 81 | |||||||
Net cash used in financing activities | (49,878 | ) | (39,985 | ) | (47,256 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 4,467 | 38,252 | (18,911 | ) | ||||||
Cash and cash equivalents at beginning of year | 50,679 | 12,427 | 31,338 | |||||||
Cash and cash equivalents at end of year | $ | 55,146 | 50,679 | 12,427 | ||||||
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Summarized unaudited quarterly financial data | Summarized unaudited quarterly financial data is as follows: | ||||||||||||
Quarters ended 2014 | |||||||||||||
(Dollars in thousands, except per share data) | March 31 | June 30 | September 30 | December 31 | |||||||||
Interest income | $ | 74,087 | 73,963 | 75,690 | 76,179 | ||||||||
Interest expense | 6,640 | 6,528 | 6,430 | 7,368 | |||||||||
Net interest income | 67,447 | 67,435 | 69,260 | 68,811 | |||||||||
Provision for loan losses | 1,122 | 239 | 360 | 191 | |||||||||
Net interest income after provision for loan losses | 66,325 | 67,196 | 68,900 | 68,620 | |||||||||
Non-interest income | 19,388 | 22,504 | 24,432 | 23,978 | |||||||||
Non-interest expense | 50,070 | 52,673 | 54,238 | 55,698 | |||||||||
Income before income taxes | 35,643 | 37,027 | 39,094 | 36,900 | |||||||||
Federal and state income tax expense | 8,913 | 8,350 | 9,800 | 8,846 | |||||||||
Net income | 26,730 | 28,677 | 29,294 | 28,054 | |||||||||
Basic earnings per share | 0.36 | 0.38 | 0.4 | 0.37 | |||||||||
Diluted earnings per share | 0.36 | 0.38 | 0.4 | 0.37 | |||||||||
Quarters ended 2013 | |||||||||||||
(Dollars in thousands, except per share data) | March 31 | June 30 | September 30 | December 31 | |||||||||
Interest income | $ | 57,955 | 62,151 | 69,531 | 73,939 | ||||||||
Interest expense | 7,458 | 7,185 | 7,186 | 6,929 | |||||||||
Net interest income | 50,497 | 54,966 | 62,345 | 67,010 | |||||||||
Provision for loan losses | 2,100 | 1,078 | 1,907 | 1,802 | |||||||||
Net interest income after provision for loan losses | 48,397 | 53,888 | 60,438 | 65,208 | |||||||||
Non-interest income | 22,950 | 23,222 | 23,873 | 23,002 | |||||||||
Non-interest expense | 43,434 | 48,481 | 50,368 | 53,034 | |||||||||
Income before income taxes | 27,913 | 28,629 | 33,943 | 35,176 | |||||||||
Federal and state income tax expense | 7,145 | 5,927 | 8,315 | 8,630 | |||||||||
Net income | 20,768 | 22,702 | 25,628 | 26,546 | |||||||||
Basic earnings per share | 0.29 | 0.31 | 0.35 | 0.36 | |||||||||
Diluted earnings per share | 0.29 | 0.31 | 0.35 | 0.36 | |||||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 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 December 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 and federal agency | $ | 44 | — | 44 | — | ||||||||
U.S. government sponsored enterprises | 21,945 | — | 21,945 | — | |||||||||
State and local governments | 997,969 | — | 997,969 | — | |||||||||
Corporate bonds | 314,854 | — | 314,854 | — | |||||||||
Residential mortgage-backed securities | 1,052,616 | — | 1,052,616 | — | |||||||||
Total assets measured at fair value on a recurring basis | $ | 2,387,428 | — | 2,387,428 | — | ||||||||
Interest rate swaps | $ | 16,668 | — | 16,668 | — | ||||||||
Total liabilities measured at fair value on a recurring basis | $ | 16,668 | — | 16,668 | — | ||||||||
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 December 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 | $ | 3,000 | — | — | 3,000 | ||||||||
Collateral-dependent impaired loans, net of ALLL | 15,480 | — | — | 15,480 | |||||||||
Total assets measured at fair value on a non-recurring basis | $ | 18,480 | — | — | 18,480 | ||||||||
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 | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | December 31, | Valuation Technique | Unobservable Input | Range (Weighted- Average) 1 | |||||||||
2014 | |||||||||||||
Other real estate owned | $ | 2,393 | Sales comparison approach | Selling costs | 0.0% - 10.0% (5.8%) | ||||||||
Adjustment to comparables | 0.0% - 7.0% (0.5%) | ||||||||||||
607 | Combined approach | Selling costs | 10.0% - 10.0% (10.0%) | ||||||||||
Discount rate | 10.0% - 10.0% (10.0%) | ||||||||||||
$ | 3,000 | ||||||||||||
Collateral-dependent impaired loans, net of ALLL | $ | 6 | Cost approach | Selling costs | 7.0% - 7.0% (7.0%) | ||||||||
5,335 | Income approach | Selling costs | 8.0% - 10.0% (8.5%) | ||||||||||
Discount rate | 8.3% - 12.0% (9.1%) | ||||||||||||
6,330 | Sales comparison approach | Selling costs | 0.0% - 10.0% (8.3%) | ||||||||||
Adjustment to comparables | 0.0% - 30.0% (3.5%) | ||||||||||||
3,809 | Combined approach | Selling costs | 8.0% - 10.0% (9.2%) | ||||||||||
Adjustment to comparables | 10.0% - 20.0% (16.2%) | ||||||||||||
$ | 15,480 | ||||||||||||
Fair Value | Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||
(Dollars in thousands) | December 31, | Valuation Technique | Unobservable Input | Range (Weighted- Average) 1 | |||||||||
2013 | |||||||||||||
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 December 31, 2014 | Quoted Prices | Significant | Significant | |||||||||
in Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Financial assets | |||||||||||||
Cash and cash equivalents | $ | 442,409 | 442,409 | — | — | ||||||||
Investment securities, available-for-sale | 2,387,428 | — | 2,387,428 | — | |||||||||
Investment securities, held-to-maturity | 520,997 | — | 550,946 | — | |||||||||
Loans held for sale | 46,726 | 46,726 | — | — | |||||||||
Loans receivable, net of ALLL | 4,358,342 | — | 4,288,417 | 149,769 | |||||||||
Accrued interest receivable | 40,587 | 40,587 | — | — | |||||||||
Non-marketable equity securities | 52,868 | — | 52,868 | — | |||||||||
Total financial assets | $ | 7,849,357 | 529,722 | 7,279,659 | 149,769 | ||||||||
Financial liabilities | |||||||||||||
Deposits | $ | 6,345,212 | 4,928,771 | 1,421,234 | — | ||||||||
FHLB advances | 296,944 | — | 312,363 | — | |||||||||
Repurchase agreements and other borrowed funds | 404,418 | — | 404,418 | — | |||||||||
Subordinated debentures | 125,705 | — | 76,711 | — | |||||||||
Accrued interest payable | 4,155 | 4,155 | — | — | |||||||||
Interest rate swaps | 16,668 | — | 16,668 | — | |||||||||
Total financial liabilities | $ | 7,193,102 | 4,932,926 | 2,231,394 | — | ||||||||
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 Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs | |||||||||||
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 | — | ||||||||
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Outstanding commitments | The Company had the following outstanding commitments: | ||||||
(Dollars in thousands) | December 31, | December 31, | |||||
2014 | 2013 | ||||||
Commitments to extend credit | $ | 960,180 | 866,885 | ||||
Letters of credit | 16,531 | 14,665 | |||||
Total outstanding commitments | $ | 976,711 | 881,550 | ||||
Mergers_and_Acquisitions_Table
Mergers and Acquisitions (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Business Combinations [Abstract] | ||||||||||
Consideration transferred, identifiable net assets acquired and resulting bargain purchase gain or goodwill | The following table discloses the calculation of the fair value of the consideration transferred, the total identifiable net assets acquired and the resulting bargain purchase gain or goodwill arising from the FNBR, NCBI and Wheatland acquisitions: | |||||||||
FNBR | NCBI | Wheatland | ||||||||
(Dollars in thousands) | August 31, | July 31, | May 31, | |||||||
2014 | 2013 | 2013 | ||||||||
Fair value of consideration transferred | ||||||||||
Fair value of Company shares issued, net of equity issuance costs | $ | 15,127 | 16,743 | 28,290 | ||||||
Cash consideration for outstanding shares | 16,690 | 13,833 | 11,025 | |||||||
Contingent consideration | — | — | — | |||||||
Total fair value of consideration transferred | 31,817 | 30,576 | 39,315 | |||||||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||||||||
Identifiable assets acquired | ||||||||||
Cash and cash equivalents | 14,578 | 27,865 | 23,148 | |||||||
Investment securities | 157,018 | 48,058 | 75,643 | |||||||
Loans receivable | 137,488 | 215,986 | 171,199 | |||||||
Core deposit intangible | 4,199 | 3,660 | 2,079 | |||||||
Accrued income and other assets | 35,884 | 24,262 | 15,063 | |||||||
Total identifiable assets acquired | 349,167 | 319,831 | 287,132 | |||||||
Liabilities assumed | ||||||||||
Deposits | 309,641 | 294,980 | 255,197 | |||||||
Federal Home Loan Bank advances | — | — | 5,467 | |||||||
Accrued expenses and other liabilities | 7,029 | 4,472 | 562 | |||||||
Total liabilities assumed | 316,670 | 299,452 | 261,226 | |||||||
Total identifiable net assets | 32,497 | 20,379 | 25,906 | |||||||
(Bargain purchase gain) goodwill recognized | $ | (680 | ) | 10,197 | 13,409 | |||||
Unaudited Pro Forma Summary of the Company as if the Acquisitions had Occurred at the Beginning of the Period | The following unaudited pro forma summary presents consolidated information of the Company as if the FNBR acquisition had occurred on January 1, 2013: | |||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2014 | 2013 | |||||||||
Net interest income and non-interest income | $ | 371,772 | 340,393 | |||||||
Net income | 113,364 | 99,275 | ||||||||
The following unaudited pro forma summary presents consolidated information of the Company as if the NCBI and Wheatland acquisitions had occurred on January 1, 2012: | ||||||||||
Years ended | ||||||||||
(Dollars in thousands) | December 31, | December 31, | ||||||||
2013 | 2012 | |||||||||
Net interest income and non-interest income | $ | 339,236 | 334,317 | |||||||
Net income | 96,392 | 80,403 | ||||||||
VIE_Carrying_Amounts_Included_
VIE Carrying Amounts Included in Financial Statements (Details) (USD $) | Dec. 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 | 616 | 843 |
Total assets | 36,809 | 36,999 |
Other borrowed funds | 4,555 | 4,555 |
Accrued interest payable | 4 | 4 |
Other liabilities | 185 | 151 |
Total liabilities | 4,744 | 4,710 |
LIHTC | ||
Carrying amounts of the VIEs' assets and liabilities | ||
Loans receivable | 0 | 0 |
Premises and equipment, net | 13,106 | 13,536 |
Accrued interest receivable | 0 | 0 |
Other assets | 258 | 153 |
Total assets | 13,364 | 13,689 |
Other borrowed funds | 1,690 | 1,723 |
Accrued interest payable | 5 | 5 |
Other liabilities | 0 | 189 |
Total liabilities | $1,695 | $1,917 |
Nature_of_Operations_and_Summa3
Nature of Operations and Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Nature of Operations and Summary of Significant Accounting Policies | ||
Number of Bank Divisions | 13 | |
Number of Operating Segments | 1 | |
Assets | $8,306,507,000 | $7,884,350,000 |
Gross Loans | 4,488,095,000 | 4,062,838,000 |
Maximum Period of Original Maturity to be Included in Cash and Cash Equivalents | 3 months | |
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 | |
Maximum period up to which purchase price of business is allocated to assets acquired and liabilities assumed | 1 year | |
Number of Reporting Units Subsequent to Aggregation for Goodwill Assessment | 1 | |
Bank Owned Life Insurance | 46,030,000 | 37,617,000 |
Percentage of likelihood for term more likely than not | 50.00% | |
Number of Steps to Achieve Core Revenue Recognition Principal | 5 | |
Minimum Range | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Number of years for home equity loan origination term | 10 years | |
Minimum Range | Office Buildings | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 15 years | |
Minimum Range | Furniture, fixtures and equipment | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 3 years | |
Maximum Range | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Number of years for home equity loan origination term | 15 years | |
Maximum Range | Office Buildings | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 40 years | |
Maximum Range | Furniture, fixtures and equipment | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 10 years | |
Montana Community Banks, Inc. | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Assets | 175,041,000 | |
Gross Loans | 92,952,000 | |
Deposits | $149,544,000 |
Cash_on_Hand_and_in_Banks_Deta
Cash on Hand and in Banks (Details Textual) (USD $) | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | |
Federal Reserve balance or cash on hand required | $33,177,000 |
Amortized_Cost_Gross_Unrealize
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of investment securities | ||
Amortized Cost | $2,862,764 | $3,208,941 |
Gross Unrealized Gains | 86,393 | 49,801 |
Gross Unrealized Losses | -10,783 | -35,913 |
Fair Value | 2,938,374 | 3,222,829 |
Available-for-sale securities | ||
Summary of investment securities | ||
Amortized Cost | 2,341,767 | 3,208,941 |
Gross Unrealized Gains | 53,468 | 49,801 |
Gross Unrealized Losses | -7,807 | -35,913 |
Fair Value | 2,387,428 | 3,222,829 |
Available-for-sale securities | U.S. government and federal agency | ||
Summary of investment securities | ||
Amortized Cost | 44 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 44 | |
Available-for-sale securities | U.S. government sponsored enterprises | ||
Summary of investment securities | ||
Amortized Cost | 21,916 | 10,441 |
Gross Unrealized Gains | 31 | 187 |
Gross Unrealized Losses | -2 | 0 |
Fair Value | 21,945 | 10,628 |
Available-for-sale securities | State and local governments | ||
Summary of investment securities | ||
Amortized Cost | 962,365 | 1,377,347 |
Gross Unrealized Gains | 40,173 | 31,621 |
Gross Unrealized Losses | -4,569 | -23,890 |
Fair Value | 997,969 | 1,385,078 |
Available-for-sale securities | Corporate bonds | ||
Summary of investment securities | ||
Amortized Cost | 313,545 | 440,337 |
Gross Unrealized Gains | 2,059 | 3,922 |
Gross Unrealized Losses | -750 | -1,758 |
Fair Value | 314,854 | 442,501 |
Available-for-sale securities | Residential mortgage-backed securities | ||
Summary of investment securities | ||
Amortized Cost | 1,043,897 | 1,380,816 |
Gross Unrealized Gains | 11,205 | 14,071 |
Gross Unrealized Losses | -2,486 | -10,265 |
Fair Value | 1,052,616 | 1,384,622 |
Held-to-maturity securities | ||
Summary of investment securities | ||
Amortized Cost | 520,997 | |
Gross Unrealized Gains | 32,925 | |
Gross Unrealized Losses | -2,976 | |
Fair Value | 550,946 | |
Held-to-maturity securities | State and local governments | ||
Summary of investment securities | ||
Amortized Cost | 520,997 | |
Gross Unrealized Gains | 32,925 | |
Gross Unrealized Losses | -2,976 | |
Fair Value | $550,946 |
Investment_Securities_Investme
Investment Securities Investment Securities Maturity Schedule (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Available-for-Sale, Amortized Cost | |||
Due within one year | $126,102 | ||
Due after one year through five years | 367,037 | ||
Due after five years through ten years | 90,172 | ||
Due after ten years | 714,559 | ||
Total before residential mortgage-backed securities | 1,297,870 | ||
Total | 2,341,767 | ||
Available-for-Sale, Fair Value | |||
Due with one year | 126,779 | ||
Due after one year through five years | 370,349 | ||
Due after five years through ten years | 93,356 | ||
Due after ten years | 744,328 | ||
Total before residential mortgage-backed securities | 1,334,812 | ||
Total | 2,387,428 | ||
Held-to-Maturity, Amortized Cost | |||
Due within one year | 0 | ||
Due after one year through five years | 0 | ||
Due after five years through ten years | 188 | ||
Due after ten years | 520,809 | ||
Total before residential mortgage-backed securities | 520,997 | ||
Total | 520,997 | 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 | 188 | ||
Due after ten years | 550,758 | ||
Total before residential mortgage-backed securities | 550,946 | ||
Total | 550,946 | ||
Residential mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Residential mortgage-backed securities | 1,043,897 | [1] | |
Available-for-Sale, Fair Value | |||
Residential mortgage-backed securities | 1,052,616 | [1] | |
Held-to-Maturity, Amortized Cost | |||
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 $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Available-for-sale | ||||||
Gross proceeds | $219,849 | $181,971 | $0 | |||
Less amortized cost | -220,053 | [1] | -182,270 | [1] | 0 | [1] |
Net available-for-sale | -204 | -299 | 0 | |||
Gross gain on sale of investments | 501 | 3,723 | 0 | |||
Gross loss on sale of investments | -705 | -4,022 | 0 | |||
Held-to-maturity | ||||||
Gross proceeds | 8,930 | [2] | 0 | [2] | 0 | [2] |
Less amortized cost | -8,914 | [1],[2] | 0 | [1],[2] | 0 | [1],[2] |
Net held-to-maturity | 16 | [2] | 0 | [2] | 0 | [2] |
Gross gain on sale of investments | 22 | [2] | 0 | [2] | 0 | [2] |
Gross loss on sale of investments | ($6) | [2] | $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. |
Investments_with_an_Unrealized
Investments with an Unrealized Loss Position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value | ||
Less than 12 Months | $358,126 | $995,941 |
12 Months or More | 202,027 | 77,856 |
Total | 560,153 | 1,073,797 |
Unrealized Loss | ||
Less than 12 Months | -2,746 | -29,736 |
12 Months or Longer | -5,061 | -6,177 |
Total | -7,807 | -35,913 |
Fair Value | ||
Less than 12 Months | 18,643 | |
12 Months or More | 76,761 | |
Total | 95,404 | |
Unrealized Loss | ||
Less than 12 Months | -624 | |
12 Months or More | -2,352 | |
Total | -2,976 | |
U.S. government and federal agency | ||
Fair Value | ||
Less than 12 Months | 0 | |
12 Months or More | 3 | |
Total | 3 | |
Unrealized Loss | ||
Less than 12 Months | 0 | |
12 Months or Longer | 0 | |
Total | 0 | |
U.S. government sponsored enterprises | ||
Fair Value | ||
Less than 12 Months | 13,793 | 3 |
12 Months or More | 0 | 0 |
Total | 13,793 | 3 |
Unrealized Loss | ||
Less than 12 Months | -2 | 0 |
12 Months or Longer | 0 | 0 |
Total | -2 | 0 |
State and local governments | ||
Fair Value | ||
Less than 12 Months | 91,082 | 408,812 |
12 Months or More | 115,927 | 74,161 |
Total | 207,009 | 482,973 |
Unrealized Loss | ||
Less than 12 Months | -1,273 | -17,838 |
12 Months or Longer | -3,296 | -6,052 |
Total | -4,569 | -23,890 |
Fair Value | ||
Less than 12 Months | 18,643 | |
12 Months or More | 76,761 | |
Total | 95,404 | |
Unrealized Loss | ||
Less than 12 Months | -624 | |
12 Months or More | -2,352 | |
Total | -2,976 | |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 60,289 | 129,515 |
12 Months or More | 7,874 | 1,702 |
Total | 68,163 | 131,217 |
Unrealized Loss | ||
Less than 12 Months | -545 | -1,672 |
12 Months or Longer | -205 | -86 |
Total | -750 | -1,758 |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 192,962 | 457,611 |
12 Months or More | 78,223 | 1,993 |
Total | 271,185 | 459,604 |
Unrealized Loss | ||
Less than 12 Months | -926 | -10,226 |
12 Months or Longer | -1,560 | -39 |
Total | ($2,486) | ($10,265) |
Investment_Securities_Details_
Investment Securities (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 01, 2014 | |
Investment Securities | |||
Investment securities pledged as collateral | $1,673,263,000 | $1,635,316,000 | |
Other-than-temporary impairment on investment securities | 0 | 0 | |
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 |
ALLL_Activity_Details
ALLL Activity (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | $130,351 | $130,854 | $130,351 | $130,854 | $137,516 | ||||||
Provision for loan losses | 191 | 360 | 239 | 1,122 | 1,802 | 1,907 | 1,078 | 2,100 | 1,912 | 6,887 | 21,525 |
Charge-offs | -7,603 | -13,643 | -34,672 | ||||||||
Recoveries | 5,093 | 6,253 | 6,485 | ||||||||
Balance at end of period | 129,753 | 130,351 | 129,753 | 130,351 | 130,854 | ||||||
Residential Real Estate | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 14,067 | 15,482 | 14,067 | 15,482 | 17,227 | ||||||
Provision for loan losses | 716 | -921 | 2,879 | ||||||||
Charge-offs | -431 | -793 | -5,267 | ||||||||
Recoveries | 328 | 299 | 643 | ||||||||
Balance at end of period | 14,680 | 14,067 | 14,680 | 14,067 | 15,482 | ||||||
Commercial Real Estate | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 70,332 | 74,398 | 70,332 | 74,398 | 76,920 | ||||||
Provision for loan losses | -2,877 | -3,670 | 11,012 | ||||||||
Charge-offs | -1,802 | -3,736 | -16,339 | ||||||||
Recoveries | 2,146 | 3,340 | 2,805 | ||||||||
Balance at end of period | 67,799 | 70,332 | 67,799 | 70,332 | 74,398 | ||||||
Other Commercial | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 28,630 | 21,567 | 28,630 | 21,567 | 20,833 | ||||||
Provision for loan losses | 3,708 | 10,271 | 4,690 | ||||||||
Charge-offs | -3,058 | -4,671 | -5,239 | ||||||||
Recoveries | 1,611 | 1,463 | 1,283 | ||||||||
Balance at end of period | 30,891 | 28,630 | 30,891 | 28,630 | 21,567 | ||||||
Home Equity | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 9,299 | 10,659 | 9,299 | 10,659 | 13,616 | ||||||
Provision for loan losses | 1,254 | 868 | 324 | ||||||||
Charge-offs | -1,038 | -2,594 | -4,369 | ||||||||
Recoveries | 448 | 366 | 1,088 | ||||||||
Balance at end of period | 9,963 | 9,299 | 9,963 | 9,299 | 10,659 | ||||||
Other Consumer | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 8,023 | 8,748 | 8,023 | 8,748 | 8,920 | ||||||
Provision for loan losses | -889 | 339 | 2,620 | ||||||||
Charge-offs | -1,274 | -1,849 | -3,458 | ||||||||
Recoveries | 560 | 785 | 666 | ||||||||
Balance at end of period | $6,420 | $8,023 | $6,420 | $8,023 | $8,748 |
Loans_Receivable_Net_ALLL_and_
Loans Receivable, Net ALLL and Loans Receivable Summary (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | $11,597 | $11,949 |
Collectively evaluated for impairment | 118,156 | 118,402 |
Total allowance for loan and lease losses | 129,753 | 130,351 |
Individually evaluated for impairment | 161,366 | 199,680 |
Collectively evaluated for impairment | 4,326,729 | 3,863,158 |
Total loans receivable | 4,488,095 | 4,062,838 |
Residential Real Estate | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 853 | 990 |
Collectively evaluated for impairment | 13,827 | 13,077 |
Total allowance for loan and lease losses | 14,680 | 14,067 |
Individually evaluated for impairment | 19,576 | 24,070 |
Collectively evaluated for impairment | 591,887 | 553,519 |
Total loans receivable | 611,463 | 577,589 |
Commercial Real Estate | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 2,967 | 3,763 |
Collectively evaluated for impairment | 64,832 | 66,569 |
Total allowance for loan and lease losses | 67,799 | 70,332 |
Individually evaluated for impairment | 105,264 | 119,526 |
Collectively evaluated for impairment | 2,232,284 | 1,929,721 |
Total loans receivable | 2,337,548 | 2,049,247 |
Other Commercial | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 6,836 | 6,155 |
Collectively evaluated for impairment | 24,055 | 22,475 |
Total allowance for loan and lease losses | 30,891 | 28,630 |
Individually evaluated for impairment | 25,321 | 41,504 |
Collectively evaluated for impairment | 900,579 | 810,532 |
Total loans receivable | 925,900 | 852,036 |
Home Equity | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 447 | 265 |
Collectively evaluated for impairment | 9,516 | 9,034 |
Total allowance for loan and lease losses | 9,963 | 9,299 |
Individually evaluated for impairment | 6,901 | 9,039 |
Collectively evaluated for impairment | 387,769 | 357,426 |
Total loans receivable | 394,670 | 366,465 |
Other Consumer | ||
Allowance for Loan and Lease Losses and Loans Receivable | ||
Individually evaluated for impairment | 494 | 776 |
Collectively evaluated for impairment | 5,926 | 7,247 |
Total allowance for loan and lease losses | 6,420 | 8,023 |
Individually evaluated for impairment | 4,304 | 5,541 |
Collectively evaluated for impairment | 214,210 | 211,960 |
Total loans receivable | $218,514 | $217,501 |
Impaired_Loans_Details
Impaired Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | $45,688 | $61,503 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 48,477 | 63,406 |
Specific valuation allowance | 11,597 | 11,949 |
Loans with a Specific Valuation Allowance, Average Balance | 53,339 | 59,823 |
Loans without a Specific Valuation Allowance, Recorded Balance | 115,678 | 138,177 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 145,038 | 169,082 |
Loans without a Specific Valuation Allowance, Average Balance | 128,645 | 139,129 |
Recorded balance | 161,366 | 199,680 |
Unpaid principal balance | 193,515 | 232,488 |
Average balance | 181,984 | 198,952 |
Residential Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 4,110 | 7,233 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 4,276 | 7,394 |
Specific valuation allowance | 853 | 990 |
Loans with a Specific Valuation Allowance, Average Balance | 5,480 | 7,237 |
Loans without a Specific Valuation Allowance, Recorded Balance | 15,466 | 16,837 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 16,683 | 18,033 |
Loans without a Specific Valuation Allowance, Average Balance | 15,580 | 18,103 |
Recorded balance | 19,576 | 24,070 |
Unpaid principal balance | 20,959 | 25,427 |
Average balance | 21,060 | 25,340 |
Commercial Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 27,155 | 23,917 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 28,048 | 25,331 |
Specific valuation allowance | 2,967 | 3,763 |
Loans with a Specific Valuation Allowance, Average Balance | 24,519 | 26,105 |
Loans without a Specific Valuation Allowance, Recorded Balance | 78,109 | 95,609 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 100,266 | 119,017 |
Loans without a Specific Valuation Allowance, Average Balance | 89,015 | 95,808 |
Recorded balance | 105,264 | 119,526 |
Unpaid principal balance | 128,314 | 144,348 |
Average balance | 113,534 | 121,913 |
Other Commercial | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 11,377 | 27,015 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 12,461 | 27,238 |
Specific valuation allowance | 6,836 | 6,155 |
Loans with a Specific Valuation Allowance, Average Balance | 19,874 | 22,460 |
Loans without a Specific Valuation Allowance, Recorded Balance | 13,944 | 14,489 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 19,117 | 19,156 |
Loans without a Specific Valuation Allowance, Average Balance | 14,024 | 14,106 |
Recorded balance | 25,321 | 41,504 |
Unpaid principal balance | 31,578 | 46,394 |
Average balance | 33,898 | 36,566 |
Home Equity | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 1,214 | 886 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 1,336 | 949 |
Specific valuation allowance | 447 | 265 |
Loans with a Specific Valuation Allowance, Average Balance | 1,039 | 767 |
Loans without a Specific Valuation Allowance, Recorded Balance | 5,687 | 8,153 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 6,403 | 9,631 |
Loans without a Specific Valuation Allowance, Average Balance | 7,163 | 8,844 |
Recorded balance | 6,901 | 9,039 |
Unpaid principal balance | 7,739 | 10,580 |
Average balance | 8,202 | 9,611 |
Other Consumer | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 1,832 | 2,452 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 2,356 | 2,494 |
Specific valuation allowance | 494 | 776 |
Loans with a Specific Valuation Allowance, Average Balance | 2,427 | 3,254 |
Loans without a Specific Valuation Allowance, Recorded Balance | 2,472 | 3,089 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 2,569 | 3,245 |
Loans without a Specific Valuation Allowance, Average Balance | 2,863 | 2,268 |
Recorded balance | 4,304 | 5,541 |
Unpaid principal balance | 4,925 | 5,739 |
Average balance | $5,290 | $5,522 |
Loans_Receivable_Aging_Analysi
Loans Receivable Aging Analysis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loan portfolio aging analysis | ||
Accruing loans 30-59 days past due | $19,139 | $25,761 |
Accruing loans 60-89 days past due | 6,765 | 6,355 |
Accruing loans 90 days or more past due | 214 | 604 |
Non-accrual loans | 61,882 | 81,956 |
Total past due and non-accrual loans | 88,000 | 114,676 |
Current loans receivable | 4,400,095 | 3,948,162 |
Total loans receivable | 4,488,095 | 4,062,838 |
Residential Real Estate | ||
Loan portfolio aging analysis | ||
Accruing loans 30-59 days past due | 3,506 | 10,367 |
Accruing loans 60-89 days past due | 1,686 | 1,055 |
Accruing loans 90 days or more past due | 35 | 429 |
Non-accrual loans | 6,798 | 10,702 |
Total past due and non-accrual loans | 12,025 | 22,553 |
Current loans receivable | 599,438 | 555,036 |
Total loans receivable | 611,463 | 577,589 |
Commercial Real Estate | ||
Loan portfolio aging analysis | ||
Accruing loans 30-59 days past due | 7,925 | 7,016 |
Accruing loans 60-89 days past due | 3,592 | 2,709 |
Accruing loans 90 days or more past due | 31 | 0 |
Non-accrual loans | 39,717 | 51,438 |
Total past due and non-accrual loans | 51,265 | 61,163 |
Current loans receivable | 2,286,283 | 1,988,084 |
Total loans receivable | 2,337,548 | 2,049,247 |
Other Commercial | ||
Loan portfolio aging analysis | ||
Accruing loans 30-59 days past due | 5,310 | 3,673 |
Accruing loans 60-89 days past due | 609 | 1,421 |
Accruing loans 90 days or more past due | 74 | 160 |
Non-accrual loans | 8,421 | 10,139 |
Total past due and non-accrual loans | 14,414 | 15,393 |
Current loans receivable | 911,486 | 836,643 |
Total loans receivable | 925,900 | 852,036 |
Home Equity | ||
Loan portfolio aging analysis | ||
Accruing loans 30-59 days past due | 1,374 | 2,432 |
Accruing loans 60-89 days past due | 679 | 668 |
Accruing loans 90 days or more past due | 17 | 5 |
Non-accrual loans | 5,969 | 7,950 |
Total past due and non-accrual loans | 8,039 | 11,055 |
Current loans receivable | 386,631 | 355,410 |
Total loans receivable | 394,670 | 366,465 |
Other Consumer | ||
Loan portfolio aging analysis | ||
Accruing loans 30-59 days past due | 1,024 | 2,273 |
Accruing loans 60-89 days past due | 199 | 502 |
Accruing loans 90 days or more past due | 57 | 10 |
Non-accrual loans | 977 | 1,727 |
Total past due and non-accrual loans | 2,257 | 4,512 |
Current loans receivable | 216,257 | 212,989 |
Total loans receivable | $218,514 | $217,501 |
Troubled_Debt_Restructurings_D
Troubled Debt Restructurings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loan | Loan | Loan | |
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | 51 | 63 | 198 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $37,781 | $29,046 | $90,747 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | 37,075 | 29,359 | 89,558 |
TDRs that Subsequently Defaulted, Number of Loans | 5 | 5 | 14 |
TDRs that Subsequently Defaulted, Recorded Balance | 4,453 | 849 | 8,304 |
Residential Real Estate | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | 0 | 9 | 11 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | 0 | 1,907 | 2,280 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | 0 | 2,293 | 2,281 |
TDRs that Subsequently Defaulted, Number of Loans | 0 | 1 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | 0 | 265 | 0 |
Commercial Real Estate | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | 18 | 21 | 85 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | 21,760 | 20,334 | 57,382 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | 21,803 | 20,334 | 56,120 |
TDRs that Subsequently Defaulted, Number of Loans | 2 | 1 | 4 |
TDRs that Subsequently Defaulted, Recorded Balance | 927 | 79 | 6,192 |
Other Commercial | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | 24 | 23 | 75 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | 12,522 | 6,087 | 28,639 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | 11,884 | 6,087 | 28,711 |
TDRs that Subsequently Defaulted, Number of Loans | 1 | 3 | 6 |
TDRs that Subsequently Defaulted, Recorded Balance | 693 | 505 | 1,753 |
Home Equity | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | 6 | 2 | 10 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | 3,385 | 147 | 1,358 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | 3,274 | 147 | 1,358 |
TDRs that Subsequently Defaulted, Number of Loans | 2 | 0 | 3 |
TDRs that Subsequently Defaulted, Recorded Balance | 2,833 | 0 | 301 |
Other Consumer | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | 3 | 8 | 17 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | 114 | 571 | 1,088 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | 114 | 498 | 1,088 |
TDRs that Subsequently Defaulted, Number of Loans | 0 | 0 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | $0 | $0 | $58 |
Loans_Receivable_Net_Details_T
Loans Receivable, Net (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loans Receivable | |||
Percentage of consolidated stockholders equity exceeding which no borrower had outstanding loans or commitments | 10.00% | ||
Net deferred fees, premiums, and discounts included in the loan receivable | $13,710,000 | $10,662,000 | |
Variable rate loans | 2,915,617,000 | ||
Fixed rate loans | 1,572,478,000 | ||
Weighted average interest rate on loans | 4.86% | 5.04% | |
Loan sold and serviced for others | 133,768,000 | 148,376,000 | 116,439,000 |
Loans pledged as collateral | 2,596,010,000 | ||
Aggregate amount of loans outstanding to related parties | 49,446,000 | 35,224,000 | |
New loans to related parties | 24,380,000 | ||
Repayments of loans by related parties | 9,864,000 | ||
Loans and Leases Receivable, Related Parties, Change in Composition | -294,000 | ||
Interest income that would have been recorded on non-accrual loans | 3,005,000 | 4,122,000 | 5,161,000 |
TDR With Pre Modification Loan Balance for Which Oreo Was Received | 12,674,000 | 18,345,000 | 39,769,000 |
Foreclosure in Process, Consumer Mortgage Loans Secured by Residential Real Estate | 698,000 | ||
OREO Secured by Residential Real Estate | 2,322,000 | ||
Additional outstanding commitments on TDRs | 4,263,000 | 2,024,000 | |
Charge-offs on TDRs | $1,361,000 | $1,945,000 | $6,271,000 |
Premises_and_Equipment_Net_of_
Premises and Equipment, Net of Accumulated Depreciation (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Accumulated depreciation | ($99,409) | ($92,944) |
Premises and equipment, net | 179,175 | 167,671 |
Land | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | 27,605 | 27,260 |
Office buildings and construction in progress | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | 172,544 | 159,391 |
Furniture, fixtures and equipment | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | 70,622 | 66,375 |
Leasehold improvements | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | $7,813 | $7,589 |
Premises_and_Equipment_Future_
Premises and Equipment Future Minimum Rental Commitments under Operating and Capital Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Capital Leases | |
For the Year Ended December 31, 2015 | $694 |
For the Year Ended December 31, 2016 | 92 |
For the Year Ended December 31, 2017 | 92 |
For the Year Ended December 31, 2018 | 92 |
For the Year Ended December 31, 2019 | 92 |
Thereafter | 103 |
Total minimum lease payments | 1,165 |
Less: Amount representing interest | 99 |
Present value of minimum lease payments | 1,066 |
Less: Current portion of obligations under capital leases | 659 |
Long-term portion of obligations under capital leases | 407 |
Operating Leases | |
For the Year Ended December 31, 2015 | 2,348 |
For the Year Ended December 31, 2016 | 2,089 |
For the Year Ended December 31, 2017 | 1,786 |
For the Year Ended December 31, 2018 | 1,541 |
For the Year Ended December 31, 2019 | 1,360 |
Thereafter | 3,820 |
Total Minimum Lease Payments | 12,944 |
Total | |
For the Year Ended December 31, 2015 | 3,042 |
For the Year Ended December 31, 2016 | 2,181 |
For the Year Ended December 31, 2017 | 1,878 |
For the Year Ended December 31, 2018 | 1,633 |
For the Year Ended December 31, 2019 | 1,452 |
Thereafter | 3,923 |
Total Minimum Lease Payments | $14,109 |
Premises_and_Equipment_Details
Premises and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premises and Equipment | |||
Depreciation expense | $12,108,000 | $10,485,000 | $10,615,000 |
Total rent expense | 2,786,000 | 2,912,000 | 2,868,000 |
Related party rent expense | $146,000 | $142,000 | $410,000 |
Net_Carrying_Value_of_Core_Dep
Net Carrying Value of Core Deposit Intangibles (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Core Deposit Intangibles and Aggregate Amortization Expense | |||
Net carrying value | $10,900,000 | $9,512,000 | |
Aggregate amortization expense | 2,811,000 | 2,401,000 | 2,110,000 |
Core Deposits Intangibles | |||
Net Core Deposit Intangibles and Aggregate Amortization Expense | |||
Gross carrying value | 32,056,000 | 27,857,000 | 22,404,000 |
Accumulated amortization | -21,156,000 | -18,345,000 | -16,230,000 |
Net carrying value | 10,900,000 | 9,512,000 | 6,174,000 |
Aggregate amortization expense | 2,811,000 | 2,401,000 | 2,110,000 |
Estimated Amortization Expense | |||
For the year ending December 31, 2015 | 2,676,000 | ||
For the year ending December 31, 2016 | 2,170,000 | ||
For the year ending December 31, 2017 | 1,287,000 | ||
For the year ending December 31, 2018 | 876,000 | ||
For the year ending December 31, 2019 | 810,000 | ||
Core Deposit Intangibles Acquired During the Year | |||
Core Deposit Intangibles Acquired | $4,199,000 | $5,739,000 | |
Core Deposits Intangibles | Weighted Average | |||
Net Core Deposit Intangibles and Aggregate Amortization Expense | |||
Weighted-average amortization period (Period in years) | 9 years 7 months |
Changes_in_the_Carrying_Value_
Changes in the Carrying Value of Goodwill (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill Roll Forward | |||
Net carrying value at beginning of period | $129,706 | $106,100 | $106,100 |
Acquisitions | 0 | 23,606 | 0 |
Net carrying value at end of period | $129,706 | $129,706 | $106,100 |
Other_Intangible_Assets_and_Go2
Other Intangible Assets and Goodwill Net Carrying Value of Goodwill (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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 | $106,100 | $106,100 |
Scheduled_Maturities_of_Time_D
Scheduled Maturities of Time Deposits (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturities of Time Deposits | |
For the year ending December 31, 2015 | $871,060 |
For the year ending December 31, 2016 | 182,513 |
For the year ending December 31, 2017 | 72,987 |
For the year ending December 31, 2018 | 23,335 |
For the year ending December 31, 2019 | 29,745 |
Thereafter | 3,287 |
Total | $1,182,927 |
Deposits_Details_Textual
Deposits (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits | ||
FDIC Insurance limit | $250,000 | |
Time deposits that meet or exceed FDIC Insurance limit | 314,752,000 | 232,783,000 |
Wholesale deposits included in time deposits | 15,699,000 | |
Overdraft demand deposits reclassified as loans | 4,385,000 | 3,422,000 |
Deposits with related parties | $11,263,000 | $12,770,000 |
Summary_of_FHLB_Advances_Detai
Summary of FHLB Advances (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
FHLB Advances | ||
Maturing within one year, Amount | $93,979 | $559,084 |
Maturing within one year, Weighted rate | 2.81% | 0.24% |
Maturing one year through two years, Amount | 45,042 | 77,979 |
Maturing one year through two years, Weighted rate | 2.99% | 3.36% |
Maturing two years through three years, Amount | 0 | 45,042 |
Maturing two years through three years, Weighted rate | 0.00% | 2.99% |
Maturing three years through four years, Amount | 20,250 | 0 |
Maturing three years through four years, Weighted rate | 2.83% | 0.00% |
Maturing four years through five years, Amount | 174 | 20,250 |
Maturing four years through five years, Weighted rate | 4.74% | 2.83% |
Thereafter, Amount | 137,499 | 137,827 |
Thereafter, Weighted rate | 3.12% | 3.12% |
Total, Amount | $296,944 | $840,182 |
Total, Weighted rate | 2.98% | 1.21% |
Borrowings_Details_Textual
Borrowings (Details Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Borrowings | ||
Securities sold under agreements to repurchase | $397,107,000 | $313,394,000 |
Investment securities pledged as collateral | 1,673,263,000 | 1,635,316,000 |
FHLB advances | 296,944,000 | 840,182,000 |
FHLB Put Options | ||
Borrowings | ||
FHLB advances | 275,000,000 | |
Minimum rate to exercise put option | 8.00% | |
FHLB Advances, Due Date, Earliest | 2015 | |
FHLB Advances, Due Date, Last | 2021 | |
FHLB Advances, Interest Rate, Range from | 2.73% | |
FHLB Advances, Interest Rate, Range to | 3.64% | |
Repurchase Agreements | ||
Borrowings | ||
Investment securities pledged as collateral | 523,855,000 | 398,447,000 |
Lines of Credit | ||
Borrowings | ||
Lines of credit | $255,000,000 |
Subordinated_Debentures_Detail
Subordinated Debentures (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Terms of Subordinated Debentures | ||
Balance | $125,705 | $125,562 |
First Company Statutory Trust 2001 | ||
Terms of Subordinated Debentures | ||
Balance | 3,081 | |
Rate at December 31, 2014 | 3.53% | |
Variable Rate Structure | 3 mo LIBOR plus 3.30% | |
LIBOR Rate Spread | 3.30% | |
Maturity Date | 31-Jul-31 | |
First Company Statutory Trust 2003 | ||
Terms of Subordinated Debentures | ||
Balance | 2,272 | |
Rate at December 31, 2014 | 3.51% | |
Variable Rate Structure | 3 mo LIBOR plus 3.25% | |
LIBOR Rate Spread | 3.25% | |
Maturity Date | 26-Mar-33 | |
Glacier Capital Trust II | ||
Terms of Subordinated Debentures | ||
Balance | 46,393 | |
Rate at December 31, 2014 | 2.98% | |
Variable Rate Structure | 3 mo LIBOR plus 2.75% | |
LIBOR Rate Spread | 2.75% | |
Maturity Date | 7-Apr-34 | |
Citizens (ID) Statutory Trust I | ||
Terms of Subordinated Debentures | ||
Balance | 5,155 | |
Rate at December 31, 2014 | 2.89% | |
Variable Rate Structure | 3 mo LIBOR plus 2.65% | |
LIBOR Rate Spread | 2.65% | |
Maturity Date | 17-Jun-34 | |
Glacier Capital Trust III | ||
Terms of Subordinated Debentures | ||
Balance | 36,083 | |
Rate at December 31, 2014 | 1.52% | |
Variable Rate Structure | 3 mo LIBOR plus 1.29% | |
LIBOR Rate Spread | 1.29% | |
Maturity Date | 7-Apr-36 | |
Glacier Capital Trust IV | ||
Terms of Subordinated Debentures | ||
Balance | 30,928 | |
Rate at December 31, 2014 | 1.81% | |
Variable Rate Structure | 3 mo LIBOR plus 1.57% | |
LIBOR Rate Spread | 1.57% | |
Maturity Date | 15-Sep-36 | |
Bank of the San Juans Bancorporation Trust I | ||
Terms of Subordinated Debentures | ||
Balance | $1,793 | |
Rate at December 31, 2014 | 2.06% | |
Variable Rate Structure | 3 mo LIBOR plus 1.82% | |
LIBOR Rate Spread | 1.82% | |
Maturity Date | 1-Mar-37 |
Subordinated_Debentures_Detail1
Subordinated Debentures (Details Textual) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Instruments [Abstract] | |
Maximum Number of Consecutive Quarters for Deferral of Interest Payments on Trust Preferred Securities | 20 |
Size of company eligible for Tier 1 grandfather provision | 15,000,000,000 |
Interest_Rate_Swap_Summary_Det
Interest Rate Swap Summary (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 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 | 3 month 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 counterparty pays the Company the variable interest rate. | |
[2] | No cash will be exchanged prior to the beginning of the payment term. |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities Interest Rate Swap Gains or Losses (Details) (Interest Rate Swap, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense | |||
Pre-Tax Gains or Losses | |||
Amount of loss reclassified from OCI to interest expense | ($993) | $0 | $0 |
Other Non-Interest Expense | |||
Pre-Tax Gains or Losses | |||
Amount of loss recognized in other non-interest expense (ineffective portion) | 0 | 0 | 0 |
Other Comprehensive Income | |||
Pre-Tax Gains or Losses | |||
Amount of (loss) gain recognized in OCI (effective portion) | ($19,557) | $18,728 | ($7,926) |
Derivatives_and_Hedging_Activi3
Derivatives and Hedging Activities Offsetting Assets (Details) (Interest Rate Swap, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap | ||
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $0 | $6,844 |
Gross Amounts Offset in the Statements of Financial Position | 0 | -4,948 |
Net Amounts of Assets Presented in the Statements of Financial Position | $0 | $1,896 |
Derivatives_and_Hedging_Activi4
Derivatives and Hedging Activities Offsetting Liabilities (Details) (Interest Rate Swap, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Rate Swap | ||
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | $16,668 | $4,948 |
Gross Amounts Offset in the Statements of Financial Position | 0 | -4,948 |
Net Amounts of Liabilities Presented in the Statements of Financial Position | $16,668 | $0 |
Derivatives_and_Hedging_Activi5
Derivatives and Hedging Activities Derivatives and Hedging Activities (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Interest rate swap derivative financial instruments | ||
Investment securities pledged as collateral | $1,673,263,000 | $1,635,316,000 |
Interest Rate Swap | ||
Interest rate swap derivative financial instruments | ||
Investment securities pledged as collateral | 20,339,000 | |
Collateral pledged from counterparties to the Company | 0 | |
Interest Rate Swap One | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | 160,000,000 | |
Interest rate expense recorded on interest rate swap | 1,066,000 | |
Unrealized loss to be reclassified within twelve months | $5,064,000 |
Regulatory_Capital_Details
Regulatory Capital (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total capital (to risk-weighted assets) | ||
Actual, Amount | $1,065,282 | $1,005,980 |
Actual, Ratio | 18.93% | 18.97% |
Minimum capital requirement, Amount | 450,240 | 424,322 |
Minimum capital requirement, Ratio | 8.00% | 8.00% |
Well capitalized requirement, Amount | 562,800 | 530,402 |
Well capitalized requirement, Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | 994,197 | 938,887 |
Actual, Ratio | 17.67% | 17.70% |
Minimum capital requirement, Amount | 225,120 | 212,161 |
Minimum capital requirement, Ratio | 4.00% | 4.00% |
Well capitalized requirement, Amount | 337,680 | 318,241 |
Well capitalized requirement, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets) | ||
Actual, Amount | 994,197 | 938,887 |
Actual, Ratio | 12.45% | 12.11% |
Minimum capital requirement, Amount | 319,505 | 310,082 |
Minimum capital requirement, Ratio | 4.00% | 4.00% |
Glacier Bank | ||
Total capital (to risk-weighted assets) | ||
Actual, Amount | 1,023,669 | 948,618 |
Actual, Ratio | 18.25% | 17.93% |
Minimum capital requirement, Amount | 448,739 | 423,235 |
Minimum capital requirement, Ratio | 8.00% | 8.00% |
Well capitalized requirement, Amount | 560,924 | 529,044 |
Well capitalized requirement, Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | 952,815 | 881,692 |
Actual, Ratio | 16.99% | 16.67% |
Minimum capital requirement, Amount | 224,370 | 211,618 |
Minimum capital requirement, Ratio | 4.00% | 4.00% |
Well capitalized requirement, Amount | 336,554 | 317,426 |
Well capitalized requirement, Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets) | ||
Actual, Amount | 952,815 | 881,692 |
Actual, Ratio | 12.03% | 11.44% |
Minimum capital requirement, Amount | 316,938 | 308,281 |
Minimum capital requirement, Ratio | 4.00% | 4.00% |
Well capitalized requirement, Amount | $396,173 | $385,351 |
Well capitalized requirement, Ratio | 5.00% | 5.00% |
Regulatory_Capital_Details_Tex
Regulatory Capital (Details Textual) | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory Capital | ||
Percentage of total capital required for capital adequacy (to risk weighted assets) | 8.00% | 8.00% |
Percentage of Tier 1 risk based capital required for capital adequacy (to risk weighted assets) | 4.00% | 4.00% |
Percentage of Tier 1 leverage capital required for capital adequacy (to average assets) | 4.00% | 4.00% |
Percentage of total capital required to be well capitalized (to risk weighted assets) | 10.00% | 10.00% |
Percentage of Tier 1 risk based capital required to be well capitalized (to risk weighted assets) | 6.00% | 6.00% |
Glacier Bank | ||
Regulatory Capital | ||
Percentage of total capital required for capital adequacy (to risk weighted assets) | 8.00% | 8.00% |
Percentage of Tier 1 risk based capital required for capital adequacy (to risk weighted assets) | 4.00% | 4.00% |
Percentage of Tier 1 leverage capital required for capital adequacy (to average assets) | 4.00% | 4.00% |
Percentage of total capital required to be well capitalized (to risk weighted assets) | 10.00% | 10.00% |
Percentage of Tier 1 risk based capital required to be well capitalized (to risk weighted assets) | 6.00% | 6.00% |
Percentage of capital measures exceed the well capitalized threshold of leverage capital (to average assets) | 5.00% | 5.00% |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Details) (Stock Options, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Stock Options | |
Changes in shares granted for stock options for the year | |
Options outstanding, Beginning Balance | 58,810 |
Options, Exercised | -56,360 |
Options, forfeited or expired | -1,450 |
Options outstanding, Ending Balance | 1,000 |
Options, Exercisable | 1,000 |
Weighted-Average Exercise Price | |
Options outstanding, Weighted Average Exercise Price, Beginning Balance | $15.47 |
Options, exercised, weighted average exercise price | $15.45 |
Options, forfeited or expired, weighted average exercise price | $15.37 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | $16.73 |
Options exercisable, Weighted Average Exercise Price | $16.73 |
Stockbased_Compensation_Plan_S
Stock-based Compensation Plan Summary of Restricted Stock Award Activity (Details) (Restricted Stock, USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock | |
Restricted stock award activity for the year | |
Restricted Stock Non-Vested, Beginning Balance | 117,442 |
Restricted Stock, Granted | 97,367 |
Restricted Stock, Vested | -51,068 |
Restricted Stock, Forfeited | -1,688 |
Restricted Stock Non-Vested, Ending Balance | 162,053 |
Weighted-average grant date fair value | |
Restricted stock, weighted average grant date fair value, beginning balance | $16.76 |
Restricted stock, granted, weighted average grant date fair value | $26.63 |
Restricted stock, vested, weighted average grant date fair value | $18.66 |
Restricted stock, forfeited, weighted average grant date fair value | $21.76 |
Restricted stock, weighted average grant date fair value, ending balance | $22.04 |
Stockbased_Compensation_Plan_D
Stock-based Compensation Plan (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock-based Compensation Plans | |||
Shares available to grant to employees and directors | 4,022,452 | ||
Stock Options | |||
Stock Options | |||
Expiration date of stock options granted | 5 years | ||
Stock options granted during year | 0 | 0 | 0 |
Unrecognized compensation cost, net of tax | $0 | ||
Total intrinsic value of options exercised | 778,000 | 1,907,000 | 3,000 |
Total intrinsic value of options exercised, tax benefit | 302,000 | 742,000 | 1,000 |
Cash received from options exercised | 871,000 | 4,327,000 | 81,000 |
Average remaining life on stock options outstanding | 6 months | ||
Average remaining life on stock options exercisable | 6 months | ||
Aggregate intrinsic value of stock options outstanding | 11,000 | ||
Aggregate intrinsic value of stock options exercisable | 11,000 | ||
Stock Options | Director | |||
Stock Options | |||
Requisite service period of stock options granted | 6 months | ||
Stock Options | Employee | |||
Stock Options | |||
Requisite service period of stock options granted | 2 years | ||
Restricted Stock | |||
Restricted Stock Awards | |||
Compensation cost for stock compensation plans | 1,603,000 | 768,000 | 243,000 |
Income tax benefit from stock compensation plans | 622,000 | 299,000 | 96,000 |
Unrecognized compensation cost, net of tax | 2,276,000 | ||
Unrecognized compensation costs, recognized over weighted-average period | 1 year 11 months | ||
Fair value of shares vested | 953,000 | 197,000 | 243,000 |
Tax benefit of shares vested | $532,000 | $77,000 | $96,000 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefit Plans | |||
Number of officers in employment contract | 25 | ||
401(k) and Profit Sharing Plans | |||
401(k) and Profit Sharing Plans | |||
Minimum age required to be considered eligible for plan | 21 | ||
Period of Employment Required to be Eligible for Plan | 3 | ||
Minimum number of quarters required to be eligible for employer discretionary contribution | 1 | ||
Minimum number of hours required to be considered eligible for employer discretionary contribution | 501 | ||
Percent rate for non-elective safe harbor contribution as component of profit sharing plan | 3.00% | ||
Profit Sharing Plan Expense | $7,107,000 | $5,862,000 | $3,974,000 |
Maximum percentage of annual compensation allowable for contribution by eligible employees | 60.00% | ||
Percentage of amount out of first specific percent of employee's contribution matched under plan | 50.00% | ||
Percentage of employee's contribution required to determine the matched amount under the plan | 6.00% | ||
Employee Benefits Plans | |||
Company's contribution to the plan | 2,246,000 | 1,935,000 | 1,751,000 |
Deferred Compensation Plans | |||
Deferred Compensation Plans | |||
Percentage of salary for deferral of cash payments | 50.00% | ||
Percentage of bonuses and directors fees for deferral of cash payments | 100.00% | ||
Total amount deferred | 591,000 | 376,000 | 278,000 |
Liability related to obligations of deferred compensation plans | 4,810,000 | 5,042,000 | |
Employee Benefits Plans | |||
Credit earning rate as a percentage of return on equity | 50.00% | ||
Total earnings for the plan | 369,000 | 515,000 | 231,000 |
Supplemental Employee Retirement Plan | |||
Employee Benefits Plans | |||
Company's contribution to the plan | 151,000 | 76,000 | 47,000 |
Credit earning rate as a percentage of return on equity | 50.00% | ||
Total earnings for the plan | $59,000 | $48,000 | $37,000 |
Other_Expenses_Details
Other Expenses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Expenses | |||
Debit Card Expense | $5,802 | $6,131 | $4,497 |
VIE Write-downs, Losses and Other Expenses | 4,231 | 4,210 | 3,879 |
Consulting Fees | 4,179 | 3,243 | 2,079 |
Miscellaneous Employee Expenses | 3,557 | 2,686 | 2,098 |
Supplies Expense | 3,547 | 3,112 | 2,922 |
Deposit-Related Expenses | 3,517 | 3,091 | 1,644 |
Postage Expense | 3,391 | 3,302 | 3,120 |
Telephone Expenses | 2,911 | 2,498 | 2,252 |
Loan-Related Expenses | 2,513 | 2,444 | 3,430 |
Legal Fees | 1,455 | 1,728 | 1,521 |
Accounting Fees | 1,393 | 1,146 | 1,442 |
ATM Expenses | 1,268 | 1,087 | 1,161 |
Other Cost and Expense, Operating | 3,884 | 4,178 | 6,042 |
Other Noninterest Expense | $41,648 | $38,856 | $36,087 |
Summary_of_Income_Tax_Expense_
Summary of Income Tax Expense (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||||||||||
Federal | $21,860 | $18,377 | $12,718 | ||||||||
State | 8,118 | 7,007 | 5,522 | ||||||||
Total current income tax expense | 29,978 | 25,384 | 18,240 | ||||||||
Deferred | |||||||||||
Federal | 5,016 | 3,918 | 708 | ||||||||
State | 915 | 715 | 129 | ||||||||
Total deferred income tax expense | 5,931 | 4,633 | 837 | ||||||||
Total income tax expense | $8,846 | $9,800 | $8,350 | $8,913 | $8,630 | $8,315 | $5,927 | $7,145 | $35,909 | $30,017 | $19,077 |
Summary_of_Effective_Tax_Rate_
Summary of Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective income tax rate reconciliation | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal income tax benefit | 4.00% | 4.00% | 3.90% |
Tax-exempt interest income | -11.50% | -12.20% | -14.00% |
Tax credits | -2.80% | -3.20% | -4.20% |
Other, net | -0.50% | 0.30% | -0.50% |
Effective tax rate | 24.20% | 23.90% | 20.20% |
Deferred_Tax_Assets_and_Deferr
Deferred Tax Assets and Deferred Tax Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Allowance for loan and lease losses | $50,013 | $50,652 |
Other real estate owned | 8,200 | 8,041 |
Interest rate swap agreements | 6,467 | 0 |
Acquisition fair market value adjustments | 5,302 | 4,151 |
Deferred compensation | 5,024 | 4,837 |
Income tax credits and net operating loss carryforwards | 4,652 | 2,778 |
Employee benefits | 2,839 | 3,132 |
Other | 4,290 | 3,662 |
Total gross deferred tax assets | 86,787 | 77,253 |
Deferred tax liabilities | ||
Available-for-sale securities | -17,716 | -5,402 |
FHLB stock dividends | -10,342 | -10,359 |
Deferred loan costs | -6,419 | -6,058 |
Intangibles | -4,290 | -3,099 |
Depreciation of premises and equipment | -2,358 | -3,939 |
Interest rate swap agreements | 0 | -736 |
Other | -3,925 | -4,111 |
Total gross deferred tax liabilities | -45,050 | -33,704 |
Net deferred tax asset | $41,737 | $43,549 |
Years_Subject_to_Examination_D
Years Subject to Examination (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Federal | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2008, 2009, 2010, 2011, 2012 and 2013 |
Montana | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2011, 2012 and 2013 |
Idaho | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2009, 2010, 2011, 2012 and 2013 |
Colorado | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2008, 2009, 2010, 2011, 2012 and 2013 |
Utah | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2011, 2012 and 2013 |
Federal_and_State_Income_Taxes2
Federal and State Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of Tax Credit Carryforwards | ||
Federal income tax credit carryforwards, Amount | $845,000 | |
Federal Income Tax Credit Carryforwards, Expiration Date | 31-Dec-34 | |
Income Tax Uncertainties | ||
Unrecognized income tax benefit | 0 | 0 |
Accrued liabilities for the payment of interest or penalties | 0 | 0 |
Valuation Allowance | ||
Deferred tax valuation allowance | 0 | 0 |
Federal and State Income Taxes | ||
Base year reserve for bad debts | 3,600,000 | |
Federal | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Amount | 9,388,000 | |
Federal | Earliest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | 31-Dec-29 | |
Federal | Latest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | 31-Dec-31 | |
Colorado | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Amount | $17,317,000 | |
Colorado | Earliest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | 31-Dec-29 | |
Colorado | Latest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | 31-Dec-31 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) | |||
Balance | $9,645 | $47,962 | $33,487 |
Other comprehensive income (loss) before reclassification | 7,366 | -38,500 | 14,475 |
Amounts reclassified from accumulated other comprehensive income | 733 | 183 | 0 |
Net current period other comprehensive income (loss) | 8,099 | -38,317 | 14,475 |
Balance | 17,744 | 9,645 | 47,962 |
Available-For-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance | 8,485 | 58,245 | 38,928 |
Other comprehensive income (loss) before reclassification | 19,335 | -49,943 | 19,317 |
Amounts reclassified from accumulated other comprehensive income | 125 | 183 | 0 |
Net current period other comprehensive income (loss) | 19,460 | -49,760 | 19,317 |
Balance | 27,945 | 8,485 | 58,245 |
Derivatives Used for Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance | 1,160 | -10,283 | -5,441 |
Other comprehensive income (loss) before reclassification | -11,969 | 11,443 | -4,842 |
Amounts reclassified from accumulated other comprehensive income | 608 | 0 | 0 |
Net current period other comprehensive income (loss) | -11,361 | 11,443 | -4,842 |
Balance | ($10,201) | $1,160 | ($10,283) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic and Diluted Earnings Per Share | |||||||||||
Net Income | $28,054 | $29,294 | $28,677 | $26,730 | $26,546 | $25,628 | $22,702 | $20,768 | $112,755 | $95,644 | $75,516 |
Average outstanding shares - basic | 74,641,957 | 73,191,713 | 71,928,570 | ||||||||
Add: dilutive stock options and awards | 45,358 | 68,565 | 86 | ||||||||
Average outstanding shares - diluted | 74,687,315 | 73,260,278 | 71,928,656 | ||||||||
Basic earnings per share | $0.37 | $0.40 | $0.38 | $0.36 | $0.36 | $0.35 | $0.31 | $0.29 | $1.51 | $1.31 | $1.05 |
Diluted earnings per share | $0.37 | $0.40 | $0.38 | $0.36 | $0.36 | $0.35 | $0.31 | $0.29 | $1.51 | $1.31 | $1.05 |
Earnings Per Share | |||||||||||
Options excluded from the diluted average outstanding share calculation | 0 | 38,915 | 879,525 |
Condensed_Statements_of_Financ
Condensed Statements of Financial Condition (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash on hand and in banks | $122,834 | $109,995 | ||
Interest bearing cash deposits | 318,550 | 35,135 | ||
Cash and cash equivalents | 442,409 | 155,657 | ||
Investment securities, available-for-sale | 2,387,428 | 3,222,829 | ||
Other assets | 67,828 | 55,251 | ||
Total assets | 8,306,507 | 7,884,350 | ||
Liabilities and Stockholders' Equity | ||||
Subordinated debentures | 125,705 | 125,562 | ||
Other liabilities | 102,026 | 50,103 | ||
Total liabilities | 7,278,460 | 6,921,100 | ||
Common stock | 750 | 744 | ||
Paid-in capital | 708,356 | 690,918 | ||
Retained earnings | 301,197 | 261,943 | ||
Accumulated other comprehensive income | 17,744 | 9,645 | 47,962 | 33,487 |
Total stockholders’ equity | 1,028,047 | 963,250 | 900,949 | 850,227 |
Total liabilities and stockholders’ equity | 8,306,507 | 7,884,350 | ||
Parent Company | ||||
Assets | ||||
Cash on hand and in banks | 4,019 | 1,582 | ||
Interest bearing cash deposits | 51,127 | 49,097 | ||
Cash and cash equivalents | 55,146 | 50,679 | ||
Investment securities, available-for-sale | 91 | 87 | ||
Other assets | 8,511 | 9,050 | ||
Investment in subsidiaries | 1,121,937 | 1,040,104 | ||
Total assets | 1,185,685 | 1,099,920 | ||
Liabilities and Stockholders' Equity | ||||
Dividends Payable | 22,557 | 0 | ||
Subordinated debentures | 125,705 | 125,562 | ||
Other liabilities | 9,376 | 11,108 | ||
Total liabilities | 157,638 | 136,670 | ||
Common stock | 750 | 744 | ||
Paid-in capital | 708,356 | 690,918 | ||
Retained earnings | 301,197 | 261,943 | ||
Accumulated other comprehensive income | 17,744 | 9,645 | ||
Total stockholders’ equity | 1,028,047 | 963,250 | ||
Total liabilities and stockholders’ equity | $1,185,685 | $1,099,920 |
Condensed_Statements_of_Operat
Condensed Statements of Operations and Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income | |||||||||||
Loss on sale of investments | ($188) | ($299) | $0 | ||||||||
Expenses | |||||||||||
Compensation and employee benefits | 118,571 | 104,221 | 95,373 | ||||||||
Other operating expenses | 41,648 | 38,856 | 36,087 | ||||||||
Total expenses | 55,698 | 54,238 | 52,673 | 50,070 | 53,034 | 50,368 | 48,481 | 43,434 | 212,679 | 195,317 | 193,421 |
Income tax benefit | -8,846 | -9,800 | -8,350 | -8,913 | -8,630 | -8,315 | -5,927 | -7,145 | -35,909 | -30,017 | -19,077 |
Net Income | 28,054 | 29,294 | 28,677 | 26,730 | 26,546 | 25,628 | 22,702 | 20,768 | 112,755 | 95,644 | 75,516 |
Total Comprehensive Income | 120,854 | 57,327 | 89,991 | ||||||||
Parent Company | |||||||||||
Income | |||||||||||
Dividends from subsidiaries | 78,500 | 65,445 | 78,209 | ||||||||
Loss on sale of investments | 0 | -3,248 | 0 | ||||||||
Other income | 199 | 966 | 566 | ||||||||
Intercompany charges for services | 9,283 | 7,387 | 16,041 | ||||||||
Total income | 87,982 | 70,550 | 94,816 | ||||||||
Expenses | |||||||||||
Compensation and employee benefits | 10,773 | 9,175 | 12,392 | ||||||||
Other operating expenses | 6,824 | 6,536 | 10,267 | ||||||||
Total expenses | 17,597 | 15,711 | 22,659 | ||||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 70,385 | 54,839 | 72,157 | ||||||||
Income tax benefit | 2,919 | 3,676 | 2,319 | ||||||||
Income before equity in undistributed net income of subsidiaries | 73,304 | 58,515 | 74,476 | ||||||||
Equity in undistributed net income of subsidiaries | 39,451 | 37,129 | 1,040 | ||||||||
Net Income | 112,755 | 95,644 | 75,516 | ||||||||
Total Comprehensive Income | $120,854 | $57,327 | $89,991 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $112,755 | $95,644 | $75,516 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss on sale of investments | 188 | 299 | 0 |
Excess tax (benefits) deficiencies from stock-based compensation | -138 | 223 | 8 |
Net cash provided by operating activities | 182,734 | 334,095 | 183,793 |
Investing Activities | |||
Maturities, prepayments and calls of available-for-sale securities | 628,238 | 1,682,363 | 2,041,416 |
Net addition of premises and equipment | -14,389 | -8,977 | -10,730 |
Net sale of non-marketable equity securities | 801 | 583 | 888 |
Net cash provided by (used in) investing activities | 158,893 | 149,237 | -579,646 |
Financing Activities | |||
Net increase in other borrowed funds | -933 | -1,502 | 180 |
Cash dividends paid | -50,944 | -44,232 | -47,472 |
Excess tax benefits (deficiencies) from stock-based compensation | 138 | -223 | -8 |
Stock-based compensation activity | 785 | 4,326 | 81 |
Net cash used in financing activities | -54,875 | -514,715 | 454,861 |
Net increase (decrease) in cash and cash equivalents | 286,752 | -31,383 | 59,008 |
Cash and cash equivalents at beginning of period | 155,657 | 187,040 | 128,032 |
Cash and cash equivalents at end of period | 442,409 | 155,657 | 187,040 |
Parent Company | |||
Operating Activities | |||
Net income | 112,755 | 95,644 | 75,516 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Subsidiary income (in excess of) less than dividends distributed | -39,451 | -37,129 | -1,040 |
Loss on sale of investments | 0 | 3,248 | 0 |
Excess tax (benefits) deficiencies from stock-based compensation | -138 | 223 | 8 |
Net change in other assets and other liabilities | 140 | 2,575 | 3,684 |
Net cash provided by operating activities | 73,306 | 64,561 | 78,168 |
Investing Activities | |||
Proceeds from Sale, Maturity and Collection of Investments | 0 | 23,990 | 0 |
Maturities, prepayments and calls of available-for-sale securities | 0 | 2,571 | 787 |
Changes in investment securities and other stock - intercompany | 0 | -946 | -19,183 |
Net addition of premises and equipment | -179 | -603 | -2,927 |
Net sale of non-marketable equity securities | -667 | 0 | 0 |
Equity contribution to subsidiaries | -18,115 | -11,336 | -28,500 |
Net cash provided by (used in) investing activities | -18,961 | 13,676 | -49,823 |
Financing Activities | |||
Net increase in other borrowed funds | 143 | 144 | 143 |
Cash dividends paid | -50,944 | -44,232 | -47,472 |
Excess tax benefits (deficiencies) from stock-based compensation | 138 | -223 | -8 |
Stock-based compensation activity | 785 | 4,326 | 81 |
Net cash used in financing activities | -49,878 | -39,985 | -47,256 |
Net increase (decrease) in cash and cash equivalents | 4,467 | 38,252 | -18,911 |
Cash and cash equivalents at beginning of period | 50,679 | 12,427 | 31,338 |
Cash and cash equivalents at end of period | $55,146 | $50,679 | $12,427 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summarized unaudited quarterly financial data | |||||||||||
Interest income | $76,179 | $75,690 | $73,963 | $74,087 | $73,939 | $69,531 | $62,151 | $57,955 | $299,919 | $263,576 | $253,757 |
Interest expense | 7,368 | 6,430 | 6,528 | 6,640 | 6,929 | 7,186 | 7,185 | 7,458 | 26,966 | 28,758 | 35,714 |
Net Interest Income | 68,811 | 69,260 | 67,435 | 67,447 | 67,010 | 62,345 | 54,966 | 50,497 | 272,953 | 234,818 | 218,043 |
Provision for loan losses | 191 | 360 | 239 | 1,122 | 1,802 | 1,907 | 1,078 | 2,100 | 1,912 | 6,887 | 21,525 |
Net interest income after provision for loan losses | 68,620 | 68,900 | 67,196 | 66,325 | 65,208 | 60,438 | 53,888 | 48,397 | 271,041 | 227,931 | 196,518 |
Noninterest Income | 23,978 | 24,432 | 22,504 | 19,388 | 23,002 | 23,873 | 23,222 | 22,950 | 90,302 | 93,047 | 91,496 |
Noninterest Expense | 55,698 | 54,238 | 52,673 | 50,070 | 53,034 | 50,368 | 48,481 | 43,434 | 212,679 | 195,317 | 193,421 |
Income Before Income Taxes | 36,900 | 39,094 | 37,027 | 35,643 | 35,176 | 33,943 | 28,629 | 27,913 | 148,664 | 125,661 | 94,593 |
Federal and state income tax expense | 8,846 | 9,800 | 8,350 | 8,913 | 8,630 | 8,315 | 5,927 | 7,145 | 35,909 | 30,017 | 19,077 |
Net Income | $28,054 | $29,294 | $28,677 | $26,730 | $26,546 | $25,628 | $22,702 | $20,768 | $112,755 | $95,644 | $75,516 |
Basic earnings per share | $0.37 | $0.40 | $0.38 | $0.36 | $0.36 | $0.35 | $0.31 | $0.29 | $1.51 | $1.31 | $1.05 |
Diluted earnings per share | $0.37 | $0.40 | $0.38 | $0.36 | $0.36 | $0.35 | $0.31 | $0.29 | $1.51 | $1.31 | $1.05 |
Fair_Value_Measurements_on_a_R
Fair Value Measurements on a Recurring Basis (Details) (Recurring measurements, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets | ||
Total assets measured at fair value on a recurring basis | $2,387,428 | $3,224,725 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 16,668 | |
Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 16,668 | |
U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 44 | |
U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 21,945 | 10,628 |
State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 997,969 | 1,385,078 |
Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 314,854 | 442,501 |
Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 1,052,616 | 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 and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 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 | 2,387,428 | 3,224,725 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 16,668 | |
Level 2 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 16,668 | |
Level 2 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 44 | |
Level 2 | U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 21,945 | 10,628 |
Level 2 | State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 997,969 | 1,385,078 |
Level 2 | Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 314,854 | 442,501 |
Level 2 | Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 1,052,616 | 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 and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 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) (Nonrecurring Measurements, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets with a recorded change from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | $3,000 | $10,888 |
Collateral-dependent impaired loans, net of ALLL | 15,480 | 18,670 |
Total assets measured at fair value on a non-recurring basis | 18,480 | 29,558 |
Level 1 | ||
Assets with a recorded change 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 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 from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 3,000 | 10,888 |
Collateral-dependent impaired loans, net of ALLL | 15,480 | 18,670 |
Total assets measured at fair value on a non-recurring basis | $18,480 | $29,558 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities Quantitative Information about Level 3 Fair Value Measurements (Details) (Nonrecurring Measurements, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 18,480 | 29,558 | ||
Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 18,480 | 29,558 | ||
Other real estate owned | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 3,000 | 10,888 | ||
Other real estate owned | Sales Comparison Approach | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 2,393 | 9,278 | ||
Other real estate owned | Combined Approach | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 607 | 1,610 | ||
Other real estate owned | Minimum Range | Sales Comparison Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 0.00% | [1] | 7.00% | [1] |
Adjustment to Comparables | 0.00% | [1] | 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 | 7.00% | [1] | 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 | 5.80% | [1] | 7.70% | [1] |
Adjustment to Comparables | 0.50% | [1] | 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 | 15,480 | 18,670 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Sales Comparison Approach | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 6,330 | 11,784 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Combined Approach | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 3,809 | 2,810 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Cost Approach | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 6 | |||
Collateral-dependent Impaired Loans, Net of ALLL | Income Approach | Level 3 | ||||
Quantitative Information About Level 3 Fair Value Measurements | ||||
Fair Value | 5,335 | 4,076 | ||
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] | 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] | ||
Adjustment to Comparables | 10.00% | [1] | 10.00% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Cost Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 7.00% | [1] | ||
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 | Maximum Range | Sales Comparison Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 10.00% | [1] | 10.00% | [1] |
Adjustment to Comparables | 30.00% | [1] | 1.00% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Combined Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 10.00% | [1] | 8.00% | [1] |
Discount Rate | 7.30% | [1] | ||
Adjustment to Comparables | 20.00% | [1] | 50.00% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Cost Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 7.00% | [1] | ||
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Income Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 10.00% | [1] | 8.00% | [1] |
Discount Rate | 12.00% | [1] | 8.30% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Sales Comparison Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 8.30% | [1] | 7.90% | [1] |
Adjustment to Comparables | 3.50% | [1] | 0.00% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Combined Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 9.20% | [1] | 7.80% | [1] |
Discount Rate | 7.30% | [1] | ||
Adjustment to Comparables | 16.20% | [1] | 18.90% | [1] |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Cost Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 7.00% | [1] | ||
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Income Approach | Level 3 | ||||
Unobservable Inputs | ||||
Selling Costs | 8.50% | [1] | 8.00% | [1] |
Discount Rate | 9.10% | [1] | 8.30% | [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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Financial Assets | ||
Cash and Cash Equivalents | $442,409 | $155,657 |
Investment securities, available-for-sale | 2,387,428 | 3,222,829 |
Investment securities, held-to-maturity | 520,997 | |
Loans Held-for-sale | 46,726 | 46,738 |
Loans Receivable, net of ALLL | 4,358,342 | 3,932,487 |
Accrued interest receivable | 40,587 | 41,898 |
Non-marketable Equity Securities | 52,868 | 52,192 |
Interest rate swaps | 1,896 | |
Total Financial Assets | 7,849,357 | 7,453,697 |
Financial Liabilities | ||
Deposits | 6,345,212 | 5,579,967 |
FHLB advances | 296,944 | 840,182 |
Repurchase agreements and other borrowed funds | 404,418 | 321,781 |
Subordinated debentures | 125,705 | 125,562 |
Accrued interest payable | 4,155 | 3,505 |
Interest rate swaps | 16,668 | |
Total financial liabilities | 7,193,102 | 6,870,997 |
Estimated Fair Value | Level 1 | ||
Financial Assets | ||
Cash and Cash Equivalents | 442,409 | 155,657 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | |
Loans Held-for-sale | 46,726 | 46,738 |
Loans Receivable, net of ALLL | 0 | 0 |
Accrued interest receivable | 40,587 | 41,898 |
Non-marketable Equity Securities | 0 | 0 |
Interest rate swaps | 0 | |
Total Financial Assets | 529,722 | 244,293 |
Financial Liabilities | ||
Deposits | 4,928,771 | 4,258,213 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 4,155 | 3,505 |
Interest rate swaps | 0 | |
Total financial liabilities | 4,932,926 | 4,261,718 |
Estimated Fair Value | Level 2 | ||
Financial Assets | ||
Cash and Cash Equivalents | 0 | 0 |
Investment securities, available-for-sale | 2,387,428 | 3,222,829 |
Investment securities, held-to-maturity | 550,946 | |
Loans Held-for-sale | 0 | 0 |
Loans Receivable, net of ALLL | 4,288,417 | 3,807,993 |
Accrued interest receivable | 0 | 0 |
Non-marketable Equity Securities | 52,868 | 52,192 |
Interest rate swaps | 1,896 | |
Total Financial Assets | 7,279,659 | 7,084,910 |
Financial Liabilities | ||
Deposits | 1,421,234 | 1,341,382 |
FHLB advances | 312,363 | 857,551 |
Repurchase agreements and other borrowed funds | 404,418 | 321,781 |
Subordinated debentures | 76,711 | 71,501 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 16,668 | |
Total financial liabilities | 2,231,394 | 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 | 149,769 | 187,731 |
Accrued interest receivable | 0 | 0 |
Non-marketable Equity Securities | 0 | 0 |
Interest rate swaps | 0 | |
Total Financial Assets | 149,769 | 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 |
Contingencies_and_Commitments_1
Contingencies and Commitments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Outstanding Commitments | ||
Outstanding commitments | $976,711 | $881,550 |
Commitments to Extend Credit | ||
Outstanding Commitments | ||
Outstanding commitments | 960,180 | 866,885 |
Letters of Credit | ||
Outstanding Commitments | ||
Outstanding commitments | $16,531 | $14,665 |
Consideration_Transferred_Iden
Consideration Transferred, Identifiable Net Assets Acquired and Goodwill Recognized (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liabilities assumed | |||
Bargain purchase gain | ($680) | $0 | $0 |
Goodwill recognized | 0 | 23,606 | 0 |
FNBR Holding Corporation | |||
Fair value of consideration transferred | |||
Fair value of Company shares issued, net of equity issuance costs | 15,127 | ||
Cash consideration for outstanding shares | 16,690 | ||
Contingent consideration | 0 | ||
Total fair value of consideration transferred | 31,817 | ||
Identifiable assets acquired | |||
Cash and cash equivalents | 14,578 | ||
Investment securities | 157,018 | ||
Loans receivable | 137,488 | ||
Core deposit intangible | 4,199 | ||
Accrued income and other assets | 35,884 | ||
Total identifiable assets acquired | 349,167 | ||
Liabilities assumed | |||
Deposits | 309,641 | ||
Federal Home Loan Bank advances | 0 | ||
Accrued expenses and other liabilities | 7,029 | ||
Total liabilities assumed | 316,670 | ||
Total identifiable net assets | 32,497 | ||
Bargain purchase gain | -680 | ||
North Cascades Bancshares | |||
Fair value of consideration transferred | |||
Fair value of Company shares issued, net of equity issuance costs | 16,743 | ||
Cash consideration for outstanding shares | 13,833 | ||
Contingent consideration | 0 | ||
Total fair value of consideration transferred | 30,576 | ||
Identifiable assets acquired | |||
Cash and cash equivalents | 27,865 | ||
Investment securities | 48,058 | ||
Loans receivable | 215,986 | ||
Core deposit intangible | 3,660 | ||
Accrued income and other assets | 24,262 | ||
Total identifiable assets acquired | 319,831 | ||
Liabilities assumed | |||
Deposits | 294,980 | ||
Federal Home Loan Bank advances | 0 | ||
Accrued expenses and other liabilities | 4,472 | ||
Total liabilities assumed | 299,452 | ||
Total identifiable net assets | 20,379 | ||
Goodwill recognized | 10,197 | ||
Wheatland Bankshares | |||
Fair value of consideration transferred | |||
Fair value of Company shares issued, net of equity issuance costs | 28,290 | ||
Cash consideration for outstanding shares | 11,025 | ||
Contingent consideration | 0 | ||
Total fair value of consideration transferred | 39,315 | ||
Identifiable assets acquired | |||
Cash and cash equivalents | 23,148 | ||
Investment securities | 75,643 | ||
Loans receivable | 171,199 | ||
Core deposit intangible | 2,079 | ||
Accrued income and other assets | 15,063 | ||
Total identifiable assets acquired | 287,132 | ||
Liabilities assumed | |||
Deposits | 255,197 | ||
Federal Home Loan Bank advances | 5,467 | ||
Accrued expenses and other liabilities | 562 | ||
Total liabilities assumed | 261,226 | ||
Total identifiable net assets | 25,906 | ||
Goodwill recognized | $13,409 |
Pro_Forma_Summary_Details
Pro Forma Summary (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2014 acquisitions | |||
Pro Forma Information | |||
Net interest income and non-interest income | $371,772 | $340,393 | |
Net income | 113,364 | 99,275 | |
2013 acquisitions | |||
Pro Forma Information | |||
Net interest income and non-interest income | 339,236 | 334,317 | |
Net income | $96,392 | $80,403 |
Mergers_and_Acquisitions_Detai
Mergers and Acquisitions (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition | |||
Bargain purchase gain, amount | $680,000 | $0 | $0 |
FNBR Holding Corporation | |||
Business Acquisition | |||
Effective Date of Acquisition | 31-Aug-14 | ||
Percentage of Outstanding Common Stock Acquired | 100.00% | ||
Business Combination, Consideration Transferred | 31,817,000 | ||
Number of Shares Issued for Aquisition | 555,732 | ||
Cash consideration for outstanding shares | 16,690,000 | ||
Bargain purchase gain, amount | 680,000 | ||
Bargain purchase gain, financial statement caption | The bargain purchase gain is included in other income in the Company’s consolidated statements of operations. | ||
Loans receivable | 137,488,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due | 146,019,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due, Expected to be Uncollectible | 0 | ||
Core deposit intangible | 4,199,000 | ||
Core Deposit Intangible Assets, Weighted Average Useful Life | 10 years | ||
Third-party Acquisition Related Costs | 552,000 | ||
Net interest income and non-interest income | 6,672,000 | ||
Net income | 1,675,000 | ||
North Cascades Bancshares | |||
Business Acquisition | |||
Effective Date of Acquisition | 31-Jul-13 | ||
Percentage of Outstanding Common Stock Acquired | 100.00% | ||
Business Combination, Consideration Transferred | 30,576,000 | ||
Number of Shares Issued for Aquisition | 687,876 | ||
Cash consideration for outstanding shares | 13,833,000 | ||
Loans receivable | 215,986,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due | 223,949,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due, Expected to be Uncollectible | 0 | ||
Core deposit intangible | 3,660,000 | ||
Core Deposit Intangible Assets, Weighted Average Useful Life | 10 years | ||
Third-party Acquisition Related Costs | 667,000 | ||
Net interest income and non-interest income | 6,837,000 | ||
Net income | 1,108,000 | ||
Wheatland Bankshares | |||
Business Acquisition | |||
Effective Date of Acquisition | 31-May-13 | ||
Percentage of Outstanding Common Stock Acquired | 100.00% | ||
Business Combination, Consideration Transferred | 39,315,000 | ||
Number of Shares Issued for Aquisition | 1,455,256 | ||
Cash consideration for outstanding shares | 11,025,000 | ||
Loans receivable | 171,199,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due | 176,698,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due, Expected to be Uncollectible | 0 | ||
Core deposit intangible | 2,079,000 | ||
Core Deposit Intangible Assets, Weighted Average Useful Life | 11 years | ||
Third-party Acquisition Related Costs | 832,000 | ||
Net interest income and non-interest income | 7,946,000 | ||
Net income | $2,100,000 |