Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 02, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GLACIER BANCORP INC | |
Entity Central Index Key | 868,671 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 76,086,288 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash on hand and in banks | $ 104,363 | $ 122,834 | |
Federal funds sold | 2,210 | 1,025 | |
Interest bearing cash deposits | 136,262 | 318,550 | |
Cash and cash equivalents | 242,835 | 442,409 | |
Investment securities, available-for-sale | 2,530,994 | 2,387,428 | |
Investment securities, held-to-maturity | 651,822 | 520,997 | |
Total investment securities | 3,182,816 | 2,908,425 | |
Loans held for sale | 40,456 | 46,726 | |
Loans receivable | [1] | 4,876,419 | 4,488,095 |
Allowance for loan and lease losses | (130,768) | (129,753) | |
Loans receivable, net | 4,745,651 | 4,358,342 | |
Premises and equipment, net | 185,864 | 179,175 | |
Other real estate owned | 26,609 | 27,804 | |
Accrued interest receivable | 46,786 | 40,587 | |
Deferred tax asset | 55,095 | 41,737 | |
Core deposit intangible, net | 10,781 | 10,900 | |
Goodwill | 130,843 | 129,706 | |
Non-marketable equity securities | 24,905 | 52,868 | |
Other assets | 71,658 | 67,828 | |
Total assets | 8,764,299 | 8,306,507 | |
Liabilities | |||
Non-interest bearing deposits | 1,893,723 | 1,632,403 | |
Interest bearing deposits | 4,779,456 | 4,712,809 | |
Securities sold under agreements to repurchase | 441,041 | 397,107 | |
Federal Home Loan Bank advances | 329,299 | 296,944 | |
Other borrowed funds | 6,619 | 7,311 | |
Subordinated debentures | 125,812 | 125,705 | |
Accrued interest payable | 3,641 | 4,155 | |
Other liabilities | 109,900 | 102,026 | |
Total liabilities | 7,689,491 | 7,278,460 | |
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 | 755 | 750 | |
Paid-in capital | 720,639 | 708,356 | |
Retained earnings - substantially restricted | 345,407 | 301,197 | |
Accumulated other comprehensive income | 8,007 | 17,744 | |
Total stockholders' equity | 1,074,808 | 1,028,047 | |
Total liabilities and stockholders' equity | $ 8,764,299 | $ 8,306,507 | |
Number of common stock shares issued and outstanding | 75,532,082 | 75,026,092 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014, respectively. |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
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 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income | ||||
Investment securities | $ 22,437 | $ 22,794 | $ 67,355 | $ 71,002 |
Residential real estate loans | 7,878 | 7,950 | 23,581 | 22,257 |
Commercial loans | 42,137 | 37,387 | 121,857 | 107,696 |
Consumer and other loans | 7,915 | 7,559 | 23,677 | 22,785 |
Total interest income | 80,367 | 75,690 | 236,470 | 223,740 |
Interest Expense | ||||
Deposits | 3,947 | 3,027 | 12,206 | 9,177 |
Securities sold under agreements to repurchase | 261 | 225 | 734 | 627 |
Federal Home Loan Bank advances | 2,273 | 2,356 | 6,685 | 7,317 |
Other borrowed funds | 21 | 34 | 63 | 135 |
Subordinated debentures | 807 | 788 | 2,372 | 2,342 |
Total interest expense | 7,309 | 6,430 | 22,060 | 19,598 |
Net Interest Income | 73,058 | 69,260 | 214,410 | 204,142 |
Provision for loan losses | 826 | 360 | 1,873 | 1,721 |
Net interest income after provision for loan losses | 72,232 | 68,900 | 212,537 | 202,421 |
Non-Interest Income | ||||
Service charges and other fees | 14,975 | 14,319 | 42,277 | 40,085 |
Miscellaneous loan fees and charges | 1,055 | 1,342 | 3,354 | 3,571 |
Gain on sale of loans | 7,326 | 6,000 | 20,356 | 14,373 |
Loss on sale of investments | (31) | (61) | (124) | (160) |
Other income | 2,474 | 2,832 | 8,431 | 8,455 |
Total non-interest income | 25,799 | 24,432 | 74,294 | 66,324 |
Non-Interest Expense | ||||
Compensation and employee benefits | 33,534 | 30,142 | 98,507 | 87,764 |
Occupancy and equipment | 7,887 | 6,961 | 23,059 | 20,307 |
Advertising and promotions | 2,459 | 2,141 | 6,626 | 5,866 |
Data processing | 1,258 | 1,472 | 4,100 | 4,792 |
Other real estate owned | 1,047 | 602 | 3,182 | 1,675 |
Regulatory assessments and insurance | 1,478 | 1,435 | 3,789 | 4,055 |
Core deposit intangibles amortization | 720 | 692 | 2,206 | 2,095 |
Other expenses | 10,729 | 10,793 | 33,085 | 30,427 |
Total non-interest expense | 59,112 | 54,238 | 174,554 | 156,981 |
Income Before Income Taxes | 38,919 | 39,094 | 112,277 | 111,764 |
Federal and state income tax expense | 9,305 | 9,800 | 25,658 | 27,063 |
Net Income | $ 29,614 | $ 29,294 | $ 86,619 | $ 84,701 |
Basic earnings per share | $ 0.39 | $ 0.40 | $ 1.15 | $ 1.14 |
Diluted earnings per share | 0.39 | 0.40 | 1.15 | 1.14 |
Dividends declared per share | $ 0.19 | $ 0.17 | $ 0.56 | $ 0.50 |
Average outstanding shares - basic | 75,531,923 | 74,631,317 | 75,424,147 | 74,512,806 |
Average outstanding shares - diluted | 75,586,453 | 74,676,124 | 75,469,355 | 74,554,263 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 29,614 | $ 29,294 | $ 86,619 | $ 84,701 |
Other Comprehensive Income (Loss), Net of Tax | ||||
Unrealized gains (losses) on available-for-sale securities | 11,506 | (2,764) | (9,063) | 32,553 |
Reclassification adjustment for losses included in net income | 50 | 61 | 95 | 182 |
Net unrealized gains (losses) on available-for-sale securities | 11,556 | (2,703) | (8,968) | 32,735 |
Tax effect | (4,476) | 1,049 | 3,502 | (12,687) |
Net of tax amount | 7,080 | (1,654) | (5,466) | 20,048 |
Unrealized (losses) gains on derivatives used for cash flow hedges | (8,630) | 201 | (10,727) | (11,468) |
Reclassification adjustment for losses included in net income | 1,263 | 0 | 3,771 | 0 |
Net unrealized (losses) gains on derivatives used for cash flow hedges | (7,367) | 201 | (6,956) | (11,468) |
Tax effect | 2,854 | (78) | 2,685 | 4,450 |
Net of tax amount | (4,513) | 123 | (4,271) | (7,018) |
Total other comprehensive income (loss), net of tax | 2,567 | (1,531) | (9,737) | 13,030 |
Total Comprehensive Income | $ 32,181 | $ 27,763 | $ 76,882 | $ 97,731 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings Substantially Restricted | Accumulated Other Comprehensive Income |
Balance, beginning, shares at Dec. 31, 2013 | 74,373,296 | ||||
Balance, beginning at Dec. 31, 2013 | $ 963,250 | $ 744 | $ 690,918 | $ 261,943 | $ 9,645 |
Net income | 84,701 | 84,701 | |||
Comprehensive income, accumulated other comprehensive income | 13,030 | 13,030 | |||
Comprehensive income, total | 97,731 | ||||
Cash dividends declared | (37,410) | (37,410) | |||
Stock issuances under stock incentive plans, shares | 95,064 | ||||
Stock issuances under stock incentive plans, value | 758 | $ 1 | 757 | ||
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 | 1,024 | 1,024 | |||
Balance, ending, shares at Sep. 30, 2014 | 75,024,092 | ||||
Balance, ending at Sep. 30, 2014 | $ 1,040,480 | $ 750 | 707,821 | 309,234 | 22,675 |
Balance, beginning, shares at Dec. 31, 2014 | 75,026,092 | 75,026,092 | |||
Balance, beginning at Dec. 31, 2014 | $ 1,028,047 | $ 750 | 708,356 | 301,197 | 17,744 |
Net income | 86,619 | 86,619 | |||
Comprehensive income, accumulated other comprehensive income | (9,737) | (9,737) | |||
Comprehensive income, total | 76,882 | ||||
Cash dividends declared | (42,409) | (42,409) | |||
Stock issuances under stock incentive plans, shares | 62,346 | ||||
Stock issuances under stock incentive plans, value | 17 | $ 1 | 16 | ||
Stock issued in connection with acquisitions, shares | 443,644 | ||||
Stock issued in connection with acquisitions, value | 10,776 | $ 4 | 10,772 | ||
Stock-based compensation and related taxes | $ 1,495 | 1,495 | |||
Balance, ending, shares at Sep. 30, 2015 | 75,532,082 | 75,532,082 | |||
Balance, ending at Sep. 30, 2015 | $ 1,074,808 | $ 755 | $ 720,639 | $ 345,407 | $ 8,007 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash dividends declared per share | $ 0.56 | $ 0.50 |
Retained Earnings Substantially Restricted | ||
Cash dividends declared per share | $ 0.56 | $ 0.50 |
Unaudited Condensed Consolidat8
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 86,619 | $ 84,701 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 1,873 | 1,721 |
Net amortization of investment securities premiums and discounts | 20,082 | 21,239 |
Loans held for sale originated or acquired | (681,826) | (498,118) |
Proceeds from sales of loans held for sale | 719,989 | 504,518 |
Gain on sale of loans | (20,356) | (14,373) |
Loss on sale of investments | 124 | 160 |
Bargain purchase gain | 0 | (680) |
Stock-based compensation expense, net of tax benefits | 737 | 652 |
Excess tax (benefits) deficiencies from stock-based compensation | (102) | 14 |
Depreciation of premises and equipment | 10,178 | 8,706 |
Loss (gain) on sale of other real estate owned and write-downs, net | 997 | (1,096) |
Amortization of core deposit intangibles | 2,206 | 2,095 |
Net (increase) decrease in accrued interest receivable | (5,397) | 254 |
Net increase in other assets | (7,198) | (1,373) |
Net decrease in accrued interest payable | (645) | (530) |
Net increase in other liabilities | 6,547 | 12,908 |
Net cash provided by operating activities | 133,828 | 120,798 |
Investing Activities | ||
Sales of available-for-sale securities | 52,691 | 162,930 |
Maturities, prepayments and calls of available-for-sale securities | 504,062 | 476,286 |
Purchases of available-for-sale securities | (686,146) | (126,666) |
Maturities, prepayments and calls of held-to-maturity securities | 16,762 | 8,930 |
Purchases of held-to-maturity securities | (148,583) | (11,250) |
Principal collected on loans | 1,202,256 | 993,806 |
Loans originated or acquired | (1,524,814) | (1,273,235) |
Net addition of premises and equipment and other real estate owned | (10,099) | (9,463) |
Proceeds from sale of other real estate owned | 7,769 | 12,644 |
Net proceeds from sale of non-marketable equity securities | 29,886 | 801 |
Net cash received (paid) in acquisitions | 19,712 | (2,112) |
Net cash (used in) provided by investing activities | (536,504) | 232,671 |
Financing Activities | ||
Net increase in deposits | 181,147 | 217,203 |
Net increase in securities sold under agreements to repurchase | 42,578 | 53,819 |
Net decrease in short-term Federal Home Loan Bank advances | 0 | (381,000) |
Proceeds from long-term Federal Home Loan Bank advances | 50,000 | 175,000 |
Repayments of long-term Federal Home Loan Bank advances | (19,581) | (267,316) |
Net decrease in other borrowed funds | (585) | (929) |
Cash dividends paid | (50,576) | (24,629) |
Excess tax benefits (deficiencies) from stock-based compensation | 102 | (14) |
Stock-based compensation activity | 17 | 837 |
Net cash provided by (used in) financing activities | 203,102 | (227,029) |
Net (decrease) increase in cash and cash equivalents | (199,574) | 126,440 |
Cash and cash equivalents at beginning of period | 442,409 | 155,657 |
Cash and cash equivalents at end of period | 242,835 | 282,097 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 22,705 | 20,128 |
Cash paid during the period for income taxes | 33,912 | 23,504 |
Supplemental Disclosure of Non-Cash Investing Activities | ||
Transfer of investment securities from available-for-sale to held-to-maturity | 0 | 484,583 |
Sale and refinancing of other real estate owned | 382 | 665 |
Transfer of loans to other real estate owned | 6,910 | 8,995 |
Fair value of common stock shares issued | 10,776 | 15,127 |
Cash consideration for outstanding shares | 12,219 | 16,690 |
Fair value of assets acquired | 174,637 | 349,167 |
Liabilities assumed | $ 152,779 | $ 316,670 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of September 30, 2015 , the results of operations and comprehensive income for the three and nine month periods ended September 30, 2015 and 2014 , and changes in stockholders’ equity and cash flows for the nine month periods ended September 30, 2015 and 2014 . The condensed consolidated statement of financial condition of the Company as of December 31, 2014 has been derived from the audited consolidated statements of the Company as of that date. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results anticipated for the year ending December 31, 2015 . The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the 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, the Bank and all variable interest entities (“VIE”) for which the Company has both the power to direct the VIE’s significant activities and the obligation to absorb a majority of the expected losses and/or receive a majority of the expected residual returns. 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 February 2015, the Company completed its acquisition of Montana Community Banks, Inc. and its wholly-owned subsidiary, Community Bank, Inc., a community bank based in Ronan, Montana (collectively, “CB”). In August 2014, the Company completed its acquisition of FNBR Holding Corporation and its wholly-owned subsidiary, First National Bank of the Rockies, a community bank based in Grand Junction, Colorado. 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. Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. 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 3. Allowance for Loan and Lease Losses Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about all known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. Commercial Real Estate . Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and / or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. Commercial . Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity . Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 20 years. Other Consumer . The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; • Changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; • Changes in the nature and volume of the portfolio and in the terms of loans; • Changes in experience, ability, and depth of lending management and other relevant staff; • Changes in the volume and severity of past due and nonaccrual loans; • Changes in the quality of the Company’s loan review system; • Changes in the value of underlying collateral for collateral-dependent loans; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged off as a reduction of the ALLL and recoveries of amounts previously charged off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. Impact of Recent Authoritative Accounting Guidance The Accounting Standards Codification ™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. The following paragraphs provide descriptions of recently adopted or newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In September 2015, FASB amended FASB ASC Topic 805, Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are necessary. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments should be applied prospectively 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, 2015. The Company is currently evaluating the impact of these amendments, but does not expect them to have a material effect on the Company’s financial position or results of operations. In February 2015, FASB amended FASB ASC Topic 810, Consolidation. The amendments in this Update make targeted changes to the current consolidation guidance and ends a deferral available for investment companies. The amendments modify the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. Consolidation conclusions may change for entities that already are VIEs due to changes in how entities would analyze related-party relationships and fee arrangements. The amendments relax existing criteria for determining when fees paid to a decision maker or service provider do not represent a variable interest by focusing on whether those fees are “at market.” The amendments eliminate both the consolidation model specific to limited partnerships and the current presumption that a general partner controls a limited partnership. Application of the new amendments could result in some entities being deconsolidated or considered a VIE and subject to additional disclosures. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period with any adjustments reflected as of the beginning of the reporting year that includes the interim period. A reporting entity may apply the amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the reporting year of adoption or may apply the amendments retrospectively. The Company is currently evaluating the impact of these 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. The entity should apply the amendments using one of two retrospective methods described in the amendment. Accounting Standards Update No 2015-14, Revenue from Contracts with Customers (Topic 606) delayed the effective date for public entities to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of these 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 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 adoption of these amendments did not have a material effect on the Company’s financial position or results of operations. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 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: September 30, 2015 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 49,712 15 (412 ) 49,315 U.S. government sponsored enterprises 98,095 699 (3 ) 98,791 State and local governments 903,722 34,084 (6,806 ) 931,000 Corporate bonds 360,846 1,219 (1,254 ) 360,811 Residential mortgage-backed securities 1,081,926 11,440 (2,289 ) 1,091,077 Total available-for-sale 2,494,301 47,457 (10,764 ) 2,530,994 Held-to-maturity State and local governments 651,822 26,470 (5,897 ) 672,395 Total held-to-maturity 651,822 26,470 (5,897 ) 672,395 Total investment securities $ 3,146,123 73,927 (16,661 ) 3,203,389 December 31, 2014 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 The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at September 30, 2015 . Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 155,812 156,630 — — Due after one year through five years 432,211 433,896 — — Due after five years through ten years 151,861 156,083 18,557 18,706 Due after ten years 672,491 693,308 633,265 653,689 1,412,375 1,439,917 651,822 672,395 Residential mortgage-backed securities 1 1,081,926 1,091,077 — — Total $ 2,494,301 2,530,994 651,822 672,395 __________ 1 Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Proceeds from sales and calls of investment securities and the associated gains and losses that have been included in earnings are listed below: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Available-for-sale Proceeds from sales and calls of investment securities $ 39,502 166,577 114,123 200,277 Gross realized gains 1 516 160 598 341 Gross realized losses 1 (566 ) (221 ) (693 ) (523 ) Held-to-maturity Proceeds from calls of investment securities 6,697 5,006 16,762 8,936 Gross realized gains 1 19 — 34 22 Gross realized losses 1 — — (63 ) — __________ 1 The gain or loss on the sale or call of each investment security is determined by the specific identification method. Investment securities with an unrealized loss position are summarized as follows: September 30, 2015 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale U.S. government and federal agency $ 46,129 (412 ) 2 — 46,131 (412 ) U.S. government sponsored enterprises 4,595 (3 ) — — 4,595 (3 ) State and local governments 135,878 (1,986 ) 137,894 (4,820 ) 273,772 (6,806 ) Corporate bonds 131,483 (826 ) 10,736 (428 ) 142,219 (1,254 ) Residential mortgage-backed securities 222,095 (1,317 ) 56,363 (972 ) 278,458 (2,289 ) Total available-for-sale $ 540,180 (4,544 ) 204,995 (6,220 ) 745,175 (10,764 ) Held-to-maturity State and local governments $ 108,671 (2,389 ) 69,625 (3,508 ) 178,296 (5,897 ) Total held-to-maturity $ 108,671 (2,389 ) 69,625 (3,508 ) 178,296 (5,897 ) December 31, 2014 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized 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 ) Based on an analysis of its investment securities with unrealized losses as of September 30, 2015 and December 31, 2014 , 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 September 30, 2015 , 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 | 9 Months Ended |
Sep. 30, 2015 | |
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 table presents loans receivable for each portfolio class of loans: (Dollars in thousands) September 30, December 31, Residential real estate loans $ 644,694 611,463 Commercial loans Real estate 2,500,952 2,337,548 Other commercial 1,080,715 925,900 Total 3,581,667 3,263,448 Consumer and other loans Home equity 412,256 394,670 Other consumer 237,802 218,514 Total 650,058 613,184 Loans receivable 1 4,876,419 4,488,095 Allowance for loan and lease losses (130,768 ) (129,753 ) Loans receivable, net $ 4,745,651 4,358,342 __________ 1 Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014 , respectively. 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 following tables summarize the activity in the ALLL by portfolio segment: Three Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,519 14,850 68,697 31,483 8,946 6,543 Provision for loan losses 826 854 (657 ) 195 397 37 Charge-offs (2,073 ) (20 ) (921 ) (367 ) (433 ) (332 ) Recoveries 1,496 24 907 290 136 139 Balance at end of period $ 130,768 15,708 68,026 31,601 9,046 6,387 Three Months ended September 30, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,636 14,624 68,929 29,589 9,725 7,769 Provision for loan losses 360 374 (1,072 ) 758 900 (600 ) Charge-offs (2,243 ) — (944 ) (579 ) (607 ) (113 ) Recoveries 1,879 42 650 997 86 104 Balance at end of period $ 130,632 15,040 67,563 30,765 10,104 7,160 Nine Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 129,753 14,680 67,799 30,891 9,963 6,420 Provision for loan losses 1,873 1,036 (452 ) 1,839 (621 ) 71 Charge-offs (4,671 ) (78 ) (1,669 ) (1,736 ) (586 ) (602 ) Recoveries 3,813 70 2,348 607 290 498 Balance at end of period $ 130,768 15,708 68,026 31,601 9,046 6,387 Nine Months ended September 30, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,351 14,067 70,332 28,630 9,299 8,023 Provision for loan losses 1,721 1,111 (3,261 ) 3,025 1,411 (565 ) Charge-offs (5,567 ) (413 ) (1,208 ) (2,328 ) (906 ) (712 ) Recoveries 4,127 275 1,700 1,438 300 414 Balance at end of period $ 130,632 15,040 67,563 30,765 10,104 7,160 The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment: September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Allowance for loan and lease losses Individually evaluated for impairment $ 7,497 1,857 1,224 3,956 52 408 Collectively evaluated for impairment 123,271 13,851 66,802 27,645 8,994 5,979 Total allowance for loan and lease losses $ 130,768 15,708 68,026 31,601 9,046 6,387 Loans receivable Individually evaluated for impairment $ 146,239 22,483 88,122 24,343 7,405 3,886 Collectively evaluated for impairment 4,730,180 622,211 2,412,830 1,056,372 404,851 233,916 Total loans receivable $ 4,876,419 644,694 2,500,952 1,080,715 412,256 237,802 December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other 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 The following tables disclose information related to impaired loans by portfolio segment: At or for the Three or Nine Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Loans with a specific valuation allowance Recorded balance $ 32,176 9,438 11,360 9,532 175 1,671 Unpaid principal balance 32,931 9,580 11,384 9,613 195 2,159 Specific valuation allowance 7,497 1,857 1,224 3,956 52 408 Average balance - three months 33,095 7,246 13,236 10,697 205 1,711 Average balance - nine months 36,549 5,927 16,646 11,729 507 1,740 Loans without a specific valuation allowance Recorded balance $ 114,063 13,045 76,762 14,811 7,230 2,215 Unpaid principal balance 140,979 14,389 97,633 18,469 8,209 2,279 Average balance - three months 115,891 13,095 78,255 15,505 6,788 2,248 Average balance - nine months 118,921 13,890 80,032 16,361 6,339 2,299 Total Recorded balance $ 146,239 22,483 88,122 24,343 7,405 3,886 Unpaid principal balance 173,910 23,969 109,017 28,082 8,404 4,438 Specific valuation allowance 7,497 1,857 1,224 3,956 52 408 Average balance - three months 148,986 20,341 91,491 26,202 6,993 3,959 Average balance - nine months 155,470 19,817 96,678 28,090 6,846 4,039 At or for the Year ended December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other 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 Interest income recognized on impaired loans for the nine months ended September 30, 2015 and 2014 was not significant. The following tables present an aging analysis of the recorded investment in loans by portfolio segment: September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 10,753 399 4,126 3,958 1,380 890 Accruing loans 60-89 days past due 7,069 236 5,567 501 549 216 Accruing loans 90 days or more past due 3,784 43 1,675 1,999 22 45 Non-accrual loans 54,632 9,590 29,251 8,160 6,856 775 Total past due and non-accrual loans 76,238 10,268 40,619 14,618 8,807 1,926 Current loans receivable 4,800,181 634,426 2,460,333 1,066,097 403,449 235,876 Total loans receivable $ 4,876,419 644,694 2,500,952 1,080,715 412,256 237,802 December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other 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 The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: Three Months ended September 30, 2015 (Dollars in thousands) Total Residential Commercial Other Home Other Troubled debt restructurings Number of loans 10 2 3 4 — 1 Pre-modification recorded balance $ 3,004 2,134 436 397 — 37 Post-modification recorded balance $ 3,004 2,134 436 397 — 37 Troubled debt restructurings that subsequently defaulted Number of loans 3 1 — 2 — — Recorded balance $ 2,287 1,947 — 340 — — Three Months ended September 30, 2014 (Dollars in thousands) Total Residential Commercial Other Home Other Troubled debt restructurings Number of loans 12 — 8 3 — 1 Pre-modification recorded balance $ 8,681 — 8,361 309 — 11 Post-modification recorded balance $ 8,681 — 8,361 309 — 11 Troubled debt restructurings that subsequently defaulted Number of loans 3 — 2 1 — — Recorded balance $ 1,620 — 927 693 — — Nine Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Troubled debt restructurings Number of loans 30 2 12 12 — 4 Pre-modification recorded balance $ 10,127 2,134 5,446 2,306 — 241 Post-modification recorded balance $ 9,833 2,134 5,366 2,092 — 241 Troubled debt restructurings that subsequently defaulted Number of loans 7 1 1 3 1 1 Recorded balance $ 2,542 1,947 78 440 75 2 Nine Months ended September 30, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Troubled debt restructurings Number of loans 38 — 16 18 2 2 Pre-modification recorded balance $ 32,957 — 12,793 19,908 242 14 Post-modification recorded balance $ 32,320 — 12,836 19,228 242 14 Troubled debt restructurings that subsequently defaulted Number of loans 7 — 2 5 — — Recorded balance $ 1,676 — 927 749 — — The modifications for the TDRs that occurred during the nine months ended September 30, 2015 and 2014 included one or a combination of the following: an extension of the maturity date, a reduction of the interest rate or a reduction in the principal amount. In addition to the TDRs that occurred during the period provided in the preceding tables, the Company had TDRs with pre-modification loan balances of $7,677,000 and $10,178,000 for the nine months ended September 30, 2015 and 2014 , respectively, for which other real estate owned (“OREO”) was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate for the nine months ended September 30, 2015 and 2014 . At September 30, 2015 , the Company had $3,864,000 of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At September 30, 2015 , the Company had $1,308,000 of OREO secured by residential real estate properties. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The following schedule discloses the changes in the carrying value of goodwill: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Net carrying value at beginning of period $ 130,843 129,706 129,706 129,706 Acquisitions — — 1,137 — Net carrying value at end of period $ 130,843 129,706 130,843 129,706 The gross carrying value of goodwill and the accumulated impairment charge consists of the following: (Dollars in thousands) September 30, December 31, Gross carrying value $ 171,002 169,865 Accumulated impairment charge (40,159 ) (40,159 ) Net carrying value $ 130,843 129,706 The Company performed its annual goodwill impairment test during the third quarter of 2015 and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. 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. For additional information on goodwill related to acquisitions, see Note 12. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities A VIE is a partnership, limited liability company, trust or other legal entity that meets either one of the following criteria; 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. 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. A previously unconsolidated VIE is consolidated when the Company becomes the primary beneficiary. A previously consolidated VIE is deconsolidated when the Company ceases to be the primary beneficiary or the entity is no longer a VIE. Consolidated Variable Interest Entities The Company has equity investments in Certified Development Entities (“CDE”) which have received allocations of New Markets Tax Credits (“NMTC”). The Company also has equity investments in Low-Income Housing Tax Credit (“LIHTC”) partnerships. The CDEs and the LIHTC partnerships are 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 and the federal income tax credit allocations from the investments are recognized in the Company’s statements of operations as a component of income tax expense. 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 consolidated VIEs’ assets and liabilities included in the Company’s statements of financial condition and 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. September 30, 2015 December 31, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC Assets Loans receivable $ 36,114 — 36,077 — Premises and equipment, net — 12,783 — 13,106 Accrued interest receivable 113 — 116 — Other assets 376 312 616 258 Total assets $ 36,603 13,095 36,809 13,364 Liabilities Other borrowed funds $ 4,555 1,640 4,555 1,690 Accrued interest payable 4 5 4 5 Other liabilities 35 — 185 — Total liabilities $ 4,594 1,645 4,744 1,695 The following table summarizes the net investment loss of the consolidated VIEs and the associated tax credits included in the Company’s statements of operations during the three and nine months ended September 30, 2015 and 2014 . Three Months ended Nine Months ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC CDE (NMTC) LIHTC CDE (NMTC) LIHTC VIE loss $ (15 ) (177 ) (14 ) (270 ) (705 ) (680 ) (701 ) (811 ) Federal income tax credits 276 294 275 318 1,441 881 1,439 953 Unconsolidated Variable Interest Entities 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 have no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the securities held by third parties. The trust subsidiaries are not included in the Company’s consolidated financial statements because the sole asset of each trust subsidiary is a receivable from the Company, even though the Company owns all of the voting equity shares of the trust subsidiaries, has fully guaranteed the obligations of the trust subsidiaries and may have the right to redeem the third party securities under certain circumstances. The Company reports the trust preferred securities issued to the trust subsidiaries as subordinated debentures on the Company’s statements of financial condition. |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase The Company’s securities sold under agreements to repurchase (“repurchase agreements”) totaled $441,041,000 and $397,107,000 at September 30, 2015 and December 31, 2014 , respectively, and are secured by investment securities with carrying values of $472,289,000 and $479,345,000 , respectively. Securities are pledged to customers at the time of the transaction in an amount at least equal to the outstanding balance and are held in custody accounts by third parties. The fair value of collateral is continually monitored and additional collateral is provided as deemed appropriate. The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and by class of collateral pledged: September 30, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total U.S. government sponsored enterprises $ 12,603 — 12,603 Residential mortgage-backed securities 425,614 2,824 428,438 Total $ 438,217 2,824 441,041 December 31, 2014 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total Residential mortgage-backed securities $ 391,997 5,110 397,107 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities As of September 30, 2015 , the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows: (Dollars in thousands) Forecasted Notional Amount Variable Interest Rate 1 Fixed Interest Rate 1 Payment Term 2 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 N o cash will be exchanged prior to the beginning of the payment term. 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. In October 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 period. As such, no amount of ineffectiveness has been included in the Company’s statements of operations for the nine months ended September 30, 2015 . Therefore, the aggregate fair value of the interest rate swap was recorded in other liabilities with changes recorded in other comprehensive income. 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 $4,099,000 during 2015 and is reported as a component of interest expense on deposits. Unless the interest rate swap is terminated during the next year, the Company expects $5,405,000 of the unrealized loss reported in other comprehensive income at September 30, 2015 to be reclassified to interest expense during the next twelve months. 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: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Interest rate swaps Amount of gain (loss) recognized in OCI (effective portion) $ (8,630 ) 201 (10,727 ) (11,468 ) Amount of loss reclassified from OCI to interest expense (1,263 ) — (3,771 ) — Amount of loss recognized in other non-interest expense (ineffective portion) — — — — The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities. There were no interest rate swap derivative assets at the dates presented. September 30, 2015 December 31, 2014 (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 $ 23,623 — 23,623 16,668 — 16,668 Pursuant to the interest rate swap agreements, the Company pledged collateral to the counterparty in the form of investment securities totaling $26,074,000 at September 30, 2015 . There was $0 collateral pledged from the counterparty to the Company as of September 30, 2015 . 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. |
Other Expenses
Other Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Other Expenses [Abstract] | |
Other Expenses | Other Expenses Other expenses consists of the following: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Debit card expenses $ 1,625 1,455 4,510 4,457 Consulting and outside services 898 1,634 4,173 3,024 VIE write-downs, losses and other expenses 761 858 3,062 3,210 Employee expenses 1,032 907 2,827 2,486 Postage 902 828 2,743 2,472 Printing and supplies 937 871 2,633 2,540 Checking and operating expenses 1,104 1,033 2,551 2,587 Telephone 816 667 2,453 2,207 Loan expenses 642 618 2,433 1,761 Accounting and audit fees 405 366 1,264 1,219 ATM expenses 242 268 811 836 Legal fees 332 389 780 1,027 Other 1,033 899 2,845 2,601 Total other expenses $ 10,729 10,793 33,085 30,427 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
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 on Available-For-Sale Securities Gains (Losses) on Derivatives Used for Cash Flow Hedges Total Balance at December 31, 2013 $ 8,485 1,160 9,645 Other comprehensive income (loss) before reclassification 19,936 (7,018 ) 12,918 Amounts reclassified from accumulated other comprehensive income 112 — 112 Net current period other comprehensive income (loss) 20,048 (7,018 ) 13,030 Balance at September 30, 2014 $ 28,533 (5,858 ) 22,675 Balance at December 31, 2014 $ 27,945 (10,201 ) 17,744 Other comprehensive loss before reclassification (5,524 ) (6,581 ) (12,105 ) Amounts reclassified from accumulated other comprehensive income 58 2,310 2,368 Net current period other comprehensive loss (5,466 ) (4,271 ) (9,737 ) Balance at September 30, 2015 $ 22,479 (14,472 ) 8,007 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period presented. Diluted earnings per share is computed by including the net increase in shares as if dilutive outstanding stock options were exercised and restricted stock awards were vested, using the treasury stock method. Basic and diluted earnings per share has been computed based on the following: Three Months ended Nine Months ended (Dollars in thousands, except per share data) September 30, September 30, September 30, September 30, Net income available to common stockholders, basic and diluted $ 29,614 29,294 86,619 84,701 Average outstanding shares - basic 75,531,923 74,631,317 75,424,147 74,512,806 Add: dilutive stock options and awards 54,530 44,807 45,208 41,457 Average outstanding shares - diluted 75,586,453 74,676,124 75,469,355 74,554,263 Basic earnings per share $ 0.39 0.40 1.15 1.14 Diluted earnings per share $ 0.39 0.40 1.15 1.14 There were 3,181 and 0 stock options or restricted stock awards excluded from the diluted average outstanding share calculation for the nine months ended September 30, 2015 and 2014 , respectively, because to do so would have been anti-dilutive for those periods. Anti-dilution occurs when the exercise price of a stock option or the unrecognized compensation cost per share of a restricted stock award exceeds the market price of the Company’s stock. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
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 nine month periods ended September 30, 2015 and 2014 . 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 September 30, 2015 . 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. 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 September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities, available-for-sale U.S. government and federal agency $ 49,315 — 49,315 — U.S. government sponsored enterprises 98,791 — 98,791 — State and local governments 931,000 — 931,000 — Corporate bonds 360,811 — 360,811 — Residential mortgage-backed securities 1,091,077 — 1,091,077 — Total assets measured at fair value on a recurring basis $ 2,530,994 — 2,530,994 — Interest rate swaps $ 23,623 — 23,623 — Total liabilities measured at fair value on a recurring basis $ 23,623 — 23,623 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 — 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 September 30, 2015 . Other real estate owned: OREO is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell. Estimated fair value of OREO is based on appraisals or evaluations (new or updated). OREO is classified within Level 3 of the fair value hierarchy. Collateral-dependent impaired loans, net of ALLL: loans included in the Company’s loan portfolio for which it is probable that the Company will not collect all principal and interest due according to contractual terms are considered impaired. Estimated fair value of collateral-dependent impaired loans is based on the fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company’s credit departments review appraisals for OREO and collateral-dependent loans, giving consideration to the highest and best use of the collateral. The appraisal or evaluation (new or updated) is considered the starting point for determining fair value. The valuation techniques used in preparing appraisals or evaluations (new or updated) include the cost approach, income approach, sales comparison approach, or a combination of the preceding valuation techniques. The key inputs used to determine the fair value of the collateral-dependent loans and OREO include selling costs, discounted cash flow rate or capitalization rate, and adjustment to comparables. Valuations and significant inputs obtained by independent sources are reviewed by the Company for accuracy and reasonableness. The Company also considers other factors and events in the environment that may affect the fair value. The appraisals or evaluations (new or updated) are reviewed at least quarterly and more frequently based on current market conditions, including deterioration in a borrower’s financial condition and when property values may be subject to significant volatility. After review and acceptance of the collateral appraisal or evaluation (new or updated), adjustments to the impaired loan or OREO may occur. The Company generally obtains appraisals or evaluations (new or updated) annually. The following schedules disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned $ 6,582 — — 6,582 Collateral-dependent impaired loans, net of ALLL 12,401 — — 12,401 Total assets measured at fair value on a non-recurring basis $ 18,983 — — 18,983 Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 Non-recurring Measurements Using Significant Unobservable Inputs (Level 3) The following tables present 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 September 30, 2015 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 3,040 Sales comparison approach Selling costs 7.0% - 10.0% (8.4%) 3,542 Combined approach Selling costs 8.0% - 8.0% (8.0%) $ 6,582 Collateral-dependent impaired loans, net of ALLL $ 71 Cost approach Selling costs 0.0% - 20.0% (9.7%) 9,117 Sales comparison approach Selling costs 7.0% - 10.0% (8.8%) Adjustment to comparables 0.0% - 5.0% (0.0%) 3,213 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 12,401 Fair Value December 31, 2014 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 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 __________ 1 The range for selling costs and adjustments to comparables indicate reductions to the fair value. Fair Value of Financial Instruments The following is a description of the methods used to estimate the fair value of all other assets and liabilities recognized at amounts other than fair value. Cash and cash equivalents: fair value is estimated at book value. Investment securities, held-to-maturity: fair value for held-to-maturity securities is estimated in the same manner as available-for-sale securities, which is described above. Loans held for sale: fair value is estimated at book value. Loans receivable, net of ALLL: fair value is estimated by discounting the future cash flows using the rates at which similar notes would be written for the same remaining maturities. The market rates used are based on current rates the Company would impose for similar loans and reflect a market participant assumption about risks associated with non-performance, illiquidity, and the structure and term of the loans along with local economic and market conditions. Estimated fair value of impaired loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All impaired loans are classified as Level 3 and all other loans are classified as Level 2 within the valuation hierarchy. Accrued interest receivable: fair value is estimated at book value. Non-marketable equity securities: fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities. Deposits: fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from an independent third party and reviewed by the Company. The rates were the average of current rates offered by the Company’s local competitors. The estimated fair value of demand, NOW, savings, and money market deposits is the book value since rates are regularly adjusted to market rates and transactions are executed at book value daily. Therefore, such deposits are classified in Level 1 of the valuation hierarchy. Certificate accounts and wholesale deposits are classified as Level 2 within the hierarchy. Federal Home Loan Bank advances: fair value of non-callable Federal Home Loan Bank (“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. Securities sold under agreements to repurchase and other borrowed funds: fair value of term repurchase agreements and other term borrowings is estimated based on current repurchase rates and borrowing rates currently available to the Company for repurchases and borrowings with similar terms and maturities. The estimated fair value for overnight repurchase agreements and other borrowings is book value. Subordinated debentures: fair value of the subordinated debt is estimated by discounting the estimated future cash flows using current estimated market rates. The market rates used were averages of currently traded trust preferred securities with similar characteristics to the Company’s issuances and obtained from an independent third party. Accrued interest payable: fair value is estimated at book value. Off-balance sheet financial instruments: commitments to extend credit and letters of credit represent the principal categories of off-balance sheet financial instruments. Rates for these commitments are set at time of loan closing, such that no adjustment is necessary to reflect these commitments at market value. The Company has an insignificant amount of off-balance sheet financial instruments. The following schedules present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 242,835 242,835 — — Investment securities, available-for-sale 2,530,994 — 2,530,994 — Investment securities, held-to-maturity 651,822 — 672,395 — Loans held for sale 40,456 40,456 — — Loans receivable, net of ALLL 4,745,651 — 4,661,095 138,742 Accrued interest receivable 46,786 46,786 — — Non-marketable equity securities 24,905 — 24,905 — Total financial assets $ 8,283,449 330,077 7,889,389 138,742 Financial liabilities Deposits $ 6,673,179 5,388,835 1,287,943 — FHLB advances 329,299 — 340,776 — Repurchase agreements and other borrowed funds 447,660 — 447,660 — Subordinated debentures 125,812 — 78,002 — Accrued interest payable 3,641 3,641 — — Interest rate swaps 23,623 — 23,623 — Total financial liabilities $ 7,603,214 5,392,476 2,178,004 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 2014 Quoted Prices Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 — |
Mergers and Acquisitions
Mergers and Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions On February 28, 2015, the Company acquired 100 percent of the outstanding common stock of Montana Community Banks, Inc. and its wholly-owned subsidiary, Community Bank, Inc., a community bank based in Ronan, Montana. CB provides banking services to individuals and businesses in western Montana, with banking offices located in Missoula, Polson, Ronan and Pablo, Montana. The acquisition allowed the Company to add new markets in western Montana and complimented the Company’s presence in Missoula and Polson, Montana. The branches of CB have become a part of the Glacier Bank and First Security Bank of Missoula bank divisions. The CB acquisition was valued at $22,995,000 and resulted in the Company issuing 443,644 shares of its common stock and $12,219,000 in cash in exchange for all of CB’s outstanding common stock shares. The fair value of the Company shares issued was determined on the basis of the closing market price of the Company’s common stock on the February 28, 2015 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 CB. 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 CB were recorded on the Company’s consolidated statements of financial condition at their estimated fair values as of the February 28, 2015 acquisition date and CB’s results of operations have been included in the Company’s consolidated statements of operations since that date. The following table discloses the calculation of the fair value of the consideration transferred, the total identifiable net assets acquired and the resulting goodwill arising from the CB acquisition: (Dollars in thousands) February 28, Fair value of consideration transferred Fair value of Company shares issued, net of equity issuance costs $ 10,776 Cash consideration for outstanding shares 12,219 Contingent consideration — Total fair value of consideration transferred 22,995 Recognized amounts of identifiable assets acquired and liabilities assumed Identifiable assets acquired Cash and cash equivalents 31,931 Investment securities 42,350 Loans receivable 84,689 Core deposit intangible 2,087 Accrued income and other assets 13,580 Total identifiable assets acquired 174,637 Liabilities assumed Deposits 146,820 FHLB advances and repurchase agreements 3,292 Accrued expenses and other liabilities 2,667 Total liabilities assumed 152,779 Total identifiable net assets 21,858 Goodwill recognized $ 1,137 The fair value of the CB assets acquired includes loans with fair values of $84,689,000 and the gross principal and contractual interest due under the CB contracts is $88,817,000 . The Company evaluated the principal and contractual interest due at the acquisition date and determined that an insignificant amount is not expected to be collectible. Core deposit intangible assets related to the CB acquisition totaled $2,087,000 with an estimated life of 10 years. The Company incurred $1,528,000 of third-party acquisition-related costs in connection with the CB acquisition during the nine months ended September 30, 2015 . 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 CB was approximately $5,493,000 and the net income was approximately $866,000 from February 28, 2015 to September 30, 2015 . The following unaudited pro forma summary presents consolidated information of the Company as if the CB acquisition had occurred on January 1, 2014: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Net interest income and non-interest income $ 98,857 95,669 289,861 276,403 Net income 29,614 29,561 86,620 85,359 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 31, 2015, the Company acquired 100 percent of the outstanding common stock of Cañon Bank Corporation and its wholly-owned subsidiary, Cañon National Bank, a community bank based in Cañon City, Colorado (collectively, “Cañon”). Cañon provides banking services to individuals and businesses in south central Colorado, with banking offices located in Colorado Springs, Pueblo, Pueblo West, Cañon City, Colorado City, and Florence, Colorado. The acquisition expands the Company’s market into south central Colorado and further diversifies the Company’s loan, customer and deposit base. The branches of Cañon have become a part of the Bank of the San Juans bank division. The Cañon acquisition was valued at $31,308,000 and resulted in the Company issuing 554,206 shares of its common stock and $16,145,000 in cash in exchange for all of Cañon’s outstanding common stock shares. The fair value of the Company shares issued was determined on the basis of the closing market price of the Company’s common stock on the October 31, 2015 acquisition date. As of October 31, 2015, the book value of Cañon’s total assets was $258,179,000 . The initial accounting for the Cañon acquisition has not been completed because the fair value of loans, deposits and numerous other items has not yet been determined. |
Nature of Operations and Summ22
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the Company’s financial condition as of September 30, 2015 , the results of operations and comprehensive income for the three and nine month periods ended September 30, 2015 and 2014 , and changes in stockholders’ equity and cash flows for the nine month periods ended September 30, 2015 and 2014 . The condensed consolidated statement of financial condition of the Company as of December 31, 2014 has been derived from the audited consolidated statements of the Company as of that date. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results anticipated for the year ending December 31, 2015 . The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the 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, the Bank and all variable interest entities (“VIE”) for which the Company has both the power to direct the VIE’s significant activities and the obligation to absorb a majority of the expected losses and/or receive a majority of the expected residual returns. 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 February 2015, the Company completed its acquisition of Montana Community Banks, Inc. and its wholly-owned subsidiary, Community Bank, Inc., a community bank based in Ronan, Montana (collectively, “CB”). In August 2014, the Company completed its acquisition of FNBR Holding Corporation and its wholly-owned subsidiary, First National Bank of the Rockies, a community bank based in Grand Junction, Colorado. 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. |
Loans Receivable | Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. 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 3. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses Based upon management’s analysis of the Company’s loan portfolio, the balance of the ALLL is an estimate of probable credit losses known and inherent within the Bank’s loan portfolio as of the date of the consolidated financial statements. The ALLL is analyzed at the loan class level and is maintained within a range of estimated losses. Determining the adequacy of the ALLL involves a high degree of judgment and is inevitably imprecise as the risk of loss is difficult to quantify. The determination of the ALLL and the related provision for loan losses is a critical accounting estimate that involves management’s judgments about all known relevant internal and external environmental factors that affect loan losses. The balance of the ALLL is highly dependent upon management’s evaluations of borrowers’ current and prospective performance, appraisals and other variables affecting the quality of the loan portfolio. Individually significant loans and major lending areas are reviewed periodically to determine potential problems at an early date. Changes in management’s estimates and assumptions are reasonably possible and may have a material impact upon the Company’s consolidated financial statements, results of operations or capital. Risk characteristics considered in the ALLL analysis applicable to each loan class within the Company's loan portfolio are as follows: Residential Real Estate. Residential real estate loans are secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class include a large number of borrowers, geographic dispersion of market areas and the loans are originated for relatively smaller amounts. Commercial Real Estate . Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operation of the property securing the loan and / or the business conducted on the property securing the loan. Credit risk in these loans is impacted by the creditworthiness of a borrower, valuation of the property securing the loan and conditions within the local economies in the Company’s diverse, geographic market areas. Commercial . Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity . Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 20 years. Other Consumer . The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following: • Changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; • Changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; • Changes in the nature and volume of the portfolio and in the terms of loans; • Changes in experience, ability, and depth of lending management and other relevant staff; • Changes in the volume and severity of past due and nonaccrual loans; • Changes in the quality of the Company’s loan review system; • Changes in the value of underlying collateral for collateral-dependent loans; • The existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • The effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged off as a reduction of the ALLL and recoveries of amounts previously charged off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. |
Impact of Recent Authoritative Accounting Guidance | Impact of Recent Authoritative Accounting Guidance The Accounting Standards Codification ™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. The following paragraphs provide descriptions of recently adopted or newly issued but not yet effective accounting standards that could have a material effect on the Company’s financial position or results of operations. In September 2015, FASB amended FASB ASC Topic 805, Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this Update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are necessary. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments should be applied prospectively 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, 2015. The Company is currently evaluating the impact of these amendments, but does not expect them to have a material effect on the Company’s financial position or results of operations. In February 2015, FASB amended FASB ASC Topic 810, Consolidation. The amendments in this Update make targeted changes to the current consolidation guidance and ends a deferral available for investment companies. The amendments modify the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities. Consolidation conclusions may change for entities that already are VIEs due to changes in how entities would analyze related-party relationships and fee arrangements. The amendments relax existing criteria for determining when fees paid to a decision maker or service provider do not represent a variable interest by focusing on whether those fees are “at market.” The amendments eliminate both the consolidation model specific to limited partnerships and the current presumption that a general partner controls a limited partnership. Application of the new amendments could result in some entities being deconsolidated or considered a VIE and subject to additional disclosures. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period with any adjustments reflected as of the beginning of the reporting year that includes the interim period. A reporting entity may apply the amendments using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the reporting year of adoption or may apply the amendments retrospectively. The Company is currently evaluating the impact of these 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. The entity should apply the amendments using one of two retrospective methods described in the amendment. Accounting Standards Update No 2015-14, Revenue from Contracts with Customers (Topic 606) delayed the effective date for public entities to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of these 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 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 adoption of these amendments did not have a material effect on the Company’s financial position or results of operations. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost, gross unrealized gains 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: September 30, 2015 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 49,712 15 (412 ) 49,315 U.S. government sponsored enterprises 98,095 699 (3 ) 98,791 State and local governments 903,722 34,084 (6,806 ) 931,000 Corporate bonds 360,846 1,219 (1,254 ) 360,811 Residential mortgage-backed securities 1,081,926 11,440 (2,289 ) 1,091,077 Total available-for-sale 2,494,301 47,457 (10,764 ) 2,530,994 Held-to-maturity State and local governments 651,822 26,470 (5,897 ) 672,395 Total held-to-maturity 651,822 26,470 (5,897 ) 672,395 Total investment securities $ 3,146,123 73,927 (16,661 ) 3,203,389 December 31, 2014 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 |
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 September 30, 2015 . Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties. September 30, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 155,812 156,630 — — Due after one year through five years 432,211 433,896 — — Due after five years through ten years 151,861 156,083 18,557 18,706 Due after ten years 672,491 693,308 633,265 653,689 1,412,375 1,439,917 651,822 672,395 Residential mortgage-backed securities 1 1,081,926 1,091,077 — — Total $ 2,494,301 2,530,994 651,822 672,395 __________ 1 Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
Proceeds from sales and calls of investment securities and the associated gains and losses | Proceeds from sales and calls of investment securities and the associated gains and losses that have been included in earnings are listed below: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Available-for-sale Proceeds from sales and calls of investment securities $ 39,502 166,577 114,123 200,277 Gross realized gains 1 516 160 598 341 Gross realized losses 1 (566 ) (221 ) (693 ) (523 ) Held-to-maturity Proceeds from calls of investment securities 6,697 5,006 16,762 8,936 Gross realized gains 1 19 — 34 22 Gross realized losses 1 — — (63 ) — __________ 1 The gain or loss on the sale or call of each investment security is determined by the specific identification method. |
Summary of investments with an unrealized loss position | Investment securities with an unrealized loss position are summarized as follows: September 30, 2015 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale U.S. government and federal agency $ 46,129 (412 ) 2 — 46,131 (412 ) U.S. government sponsored enterprises 4,595 (3 ) — — 4,595 (3 ) State and local governments 135,878 (1,986 ) 137,894 (4,820 ) 273,772 (6,806 ) Corporate bonds 131,483 (826 ) 10,736 (428 ) 142,219 (1,254 ) Residential mortgage-backed securities 222,095 (1,317 ) 56,363 (972 ) 278,458 (2,289 ) Total available-for-sale $ 540,180 (4,544 ) 204,995 (6,220 ) 745,175 (10,764 ) Held-to-maturity State and local governments $ 108,671 (2,389 ) 69,625 (3,508 ) 178,296 (5,897 ) Total held-to-maturity $ 108,671 (2,389 ) 69,625 (3,508 ) 178,296 (5,897 ) December 31, 2014 Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized 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 ) |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Summary of loans receivable | The following table presents loans receivable for each portfolio class of loans: (Dollars in thousands) September 30, December 31, Residential real estate loans $ 644,694 611,463 Commercial loans Real estate 2,500,952 2,337,548 Other commercial 1,080,715 925,900 Total 3,581,667 3,263,448 Consumer and other loans Home equity 412,256 394,670 Other consumer 237,802 218,514 Total 650,058 613,184 Loans receivable 1 4,876,419 4,488,095 Allowance for loan and lease losses (130,768 ) (129,753 ) Loans receivable, net $ 4,745,651 4,358,342 __________ 1 Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014 , respectively. |
Summary of the activity in the ALLL | The following tables summarize the activity in the ALLL by portfolio segment: Three Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,519 14,850 68,697 31,483 8,946 6,543 Provision for loan losses 826 854 (657 ) 195 397 37 Charge-offs (2,073 ) (20 ) (921 ) (367 ) (433 ) (332 ) Recoveries 1,496 24 907 290 136 139 Balance at end of period $ 130,768 15,708 68,026 31,601 9,046 6,387 Three Months ended September 30, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,636 14,624 68,929 29,589 9,725 7,769 Provision for loan losses 360 374 (1,072 ) 758 900 (600 ) Charge-offs (2,243 ) — (944 ) (579 ) (607 ) (113 ) Recoveries 1,879 42 650 997 86 104 Balance at end of period $ 130,632 15,040 67,563 30,765 10,104 7,160 Nine Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 129,753 14,680 67,799 30,891 9,963 6,420 Provision for loan losses 1,873 1,036 (452 ) 1,839 (621 ) 71 Charge-offs (4,671 ) (78 ) (1,669 ) (1,736 ) (586 ) (602 ) Recoveries 3,813 70 2,348 607 290 498 Balance at end of period $ 130,768 15,708 68,026 31,601 9,046 6,387 Nine Months ended September 30, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,351 14,067 70,332 28,630 9,299 8,023 Provision for loan losses 1,721 1,111 (3,261 ) 3,025 1,411 (565 ) Charge-offs (5,567 ) (413 ) (1,208 ) (2,328 ) (906 ) (712 ) Recoveries 4,127 275 1,700 1,438 300 414 Balance at end of period $ 130,632 15,040 67,563 30,765 10,104 7,160 |
Summary of ALLL and loans receivable | The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment: September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Allowance for loan and lease losses Individually evaluated for impairment $ 7,497 1,857 1,224 3,956 52 408 Collectively evaluated for impairment 123,271 13,851 66,802 27,645 8,994 5,979 Total allowance for loan and lease losses $ 130,768 15,708 68,026 31,601 9,046 6,387 Loans receivable Individually evaluated for impairment $ 146,239 22,483 88,122 24,343 7,405 3,886 Collectively evaluated for impairment 4,730,180 622,211 2,412,830 1,056,372 404,851 233,916 Total loans receivable $ 4,876,419 644,694 2,500,952 1,080,715 412,256 237,802 December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other 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 |
Summary of impaired loans | The following tables disclose information related to impaired loans by portfolio segment: At or for the Three or Nine Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Loans with a specific valuation allowance Recorded balance $ 32,176 9,438 11,360 9,532 175 1,671 Unpaid principal balance 32,931 9,580 11,384 9,613 195 2,159 Specific valuation allowance 7,497 1,857 1,224 3,956 52 408 Average balance - three months 33,095 7,246 13,236 10,697 205 1,711 Average balance - nine months 36,549 5,927 16,646 11,729 507 1,740 Loans without a specific valuation allowance Recorded balance $ 114,063 13,045 76,762 14,811 7,230 2,215 Unpaid principal balance 140,979 14,389 97,633 18,469 8,209 2,279 Average balance - three months 115,891 13,095 78,255 15,505 6,788 2,248 Average balance - nine months 118,921 13,890 80,032 16,361 6,339 2,299 Total Recorded balance $ 146,239 22,483 88,122 24,343 7,405 3,886 Unpaid principal balance 173,910 23,969 109,017 28,082 8,404 4,438 Specific valuation allowance 7,497 1,857 1,224 3,956 52 408 Average balance - three months 148,986 20,341 91,491 26,202 6,993 3,959 Average balance - nine months 155,470 19,817 96,678 28,090 6,846 4,039 At or for the Year ended December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other 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 |
Loan portfolio aging analysis | The following tables present an aging analysis of the recorded investment in loans by portfolio segment: September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 10,753 399 4,126 3,958 1,380 890 Accruing loans 60-89 days past due 7,069 236 5,567 501 549 216 Accruing loans 90 days or more past due 3,784 43 1,675 1,999 22 45 Non-accrual loans 54,632 9,590 29,251 8,160 6,856 775 Total past due and non-accrual loans 76,238 10,268 40,619 14,618 8,807 1,926 Current loans receivable 4,800,181 634,426 2,460,333 1,066,097 403,449 235,876 Total loans receivable $ 4,876,419 644,694 2,500,952 1,080,715 412,256 237,802 December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other 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 |
Summary of TDRs | The following tables present TDRs that occurred during the periods presented and the TDRs that occurred within the previous twelve months that subsequently defaulted during the periods presented: Three Months ended September 30, 2015 (Dollars in thousands) Total Residential Commercial Other Home Other Troubled debt restructurings Number of loans 10 2 3 4 — 1 Pre-modification recorded balance $ 3,004 2,134 436 397 — 37 Post-modification recorded balance $ 3,004 2,134 436 397 — 37 Troubled debt restructurings that subsequently defaulted Number of loans 3 1 — 2 — — Recorded balance $ 2,287 1,947 — 340 — — Three Months ended September 30, 2014 (Dollars in thousands) Total Residential Commercial Other Home Other Troubled debt restructurings Number of loans 12 — 8 3 — 1 Pre-modification recorded balance $ 8,681 — 8,361 309 — 11 Post-modification recorded balance $ 8,681 — 8,361 309 — 11 Troubled debt restructurings that subsequently defaulted Number of loans 3 — 2 1 — — Recorded balance $ 1,620 — 927 693 — — Nine Months ended September 30, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Troubled debt restructurings Number of loans 30 2 12 12 — 4 Pre-modification recorded balance $ 10,127 2,134 5,446 2,306 — 241 Post-modification recorded balance $ 9,833 2,134 5,366 2,092 — 241 Troubled debt restructurings that subsequently defaulted Number of loans 7 1 1 3 1 1 Recorded balance $ 2,542 1,947 78 440 75 2 Nine Months ended September 30, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Troubled debt restructurings Number of loans 38 — 16 18 2 2 Pre-modification recorded balance $ 32,957 — 12,793 19,908 242 14 Post-modification recorded balance $ 32,320 — 12,836 19,228 242 14 Troubled debt restructurings that subsequently defaulted Number of loans 7 — 2 5 — — Recorded balance $ 1,676 — 927 749 — — |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying value of goodwill | The following schedule discloses the changes in the carrying value of goodwill: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Net carrying value at beginning of period $ 130,843 129,706 129,706 129,706 Acquisitions — — 1,137 — Net carrying value at end of period $ 130,843 129,706 130,843 129,706 |
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) September 30, December 31, Gross carrying value $ 171,002 169,865 Accumulated impairment charge (40,159 ) (40,159 ) Net carrying value $ 130,843 129,706 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Carrying amounts of VIEs' assets and liabilities | The following table summarizes the carrying amounts of the consolidated VIEs’ assets and liabilities included in the Company’s statements of financial condition and 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. September 30, 2015 December 31, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC Assets Loans receivable $ 36,114 — 36,077 — Premises and equipment, net — 12,783 — 13,106 Accrued interest receivable 113 — 116 — Other assets 376 312 616 258 Total assets $ 36,603 13,095 36,809 13,364 Liabilities Other borrowed funds $ 4,555 1,640 4,555 1,690 Accrued interest payable 4 5 4 5 Other liabilities 35 — 185 — Total liabilities $ 4,594 1,645 4,744 1,695 |
VIE Net Income or Loss and Associated Tax Credits | The following table summarizes the net investment loss of the consolidated VIEs and the associated tax credits included in the Company’s statements of operations during the three and nine months ended September 30, 2015 and 2014 . Three Months ended Nine Months ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC CDE (NMTC) LIHTC CDE (NMTC) LIHTC VIE loss $ (15 ) (177 ) (14 ) (270 ) (705 ) (680 ) (701 ) (811 ) Federal income tax credits 276 294 275 318 1,441 881 1,439 953 |
Securities Sold Under Agreeme27
Securities Sold Under Agreements to Repurchase Securities Sold Under Agreements to Repurchase (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Carrying Value of Repurchase Agreements | The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and by class of collateral pledged: September 30, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total U.S. government sponsored enterprises $ 12,603 — 12,603 Residential mortgage-backed securities 425,614 2,824 428,438 Total $ 438,217 2,824 441,041 December 31, 2014 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total Residential mortgage-backed securities $ 391,997 5,110 397,107 |
Derivatives and Hedging Activ28
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of interest rate swap derivative financial instruments | As of September 30, 2015 , the Company’s interest rate swap derivative financial instruments were designated as cash flow hedges and are summarized as follows: (Dollars in thousands) Forecasted Notional Amount Variable Interest Rate 1 Fixed Interest Rate 1 Payment Term 2 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 N o 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: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Interest rate swaps Amount of gain (loss) recognized in OCI (effective portion) $ (8,630 ) 201 (10,727 ) (11,468 ) Amount of loss reclassified from OCI to interest expense (1,263 ) — (3,771 ) — Amount of loss recognized in other non-interest expense (ineffective portion) — — — — |
Offsetting liabilities | The following table discloses the offsetting of financial liabilities and interest rate swap derivative liabilities. There were no interest rate swap derivative assets at the dates presented. September 30, 2015 December 31, 2014 (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 $ 23,623 — 23,623 16,668 — 16,668 |
Other Expenses (Tables)
Other Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Expenses [Abstract] | |
Schedule of Other Expenses | Other expenses consists of the following: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Debit card expenses $ 1,625 1,455 4,510 4,457 Consulting and outside services 898 1,634 4,173 3,024 VIE write-downs, losses and other expenses 761 858 3,062 3,210 Employee expenses 1,032 907 2,827 2,486 Postage 902 828 2,743 2,472 Printing and supplies 937 871 2,633 2,540 Checking and operating expenses 1,104 1,033 2,551 2,587 Telephone 816 667 2,453 2,207 Loan expenses 642 618 2,433 1,761 Accounting and audit fees 405 366 1,264 1,219 ATM expenses 242 268 811 836 Legal fees 332 389 780 1,027 Other 1,033 899 2,845 2,601 Total other expenses $ 10,729 10,793 33,085 30,427 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 on Available-For-Sale Securities Gains (Losses) on Derivatives Used for Cash Flow Hedges Total Balance at December 31, 2013 $ 8,485 1,160 9,645 Other comprehensive income (loss) before reclassification 19,936 (7,018 ) 12,918 Amounts reclassified from accumulated other comprehensive income 112 — 112 Net current period other comprehensive income (loss) 20,048 (7,018 ) 13,030 Balance at September 30, 2014 $ 28,533 (5,858 ) 22,675 Balance at December 31, 2014 $ 27,945 (10,201 ) 17,744 Other comprehensive loss before reclassification (5,524 ) (6,581 ) (12,105 ) Amounts reclassified from accumulated other comprehensive income 58 2,310 2,368 Net current period other comprehensive loss (5,466 ) (4,271 ) (9,737 ) Balance at September 30, 2015 $ 22,479 (14,472 ) 8,007 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share has been computed based on the following: Three Months ended Nine Months ended (Dollars in thousands, except per share data) September 30, September 30, September 30, September 30, Net income available to common stockholders, basic and diluted $ 29,614 29,294 86,619 84,701 Average outstanding shares - basic 75,531,923 74,631,317 75,424,147 74,512,806 Add: dilutive stock options and awards 54,530 44,807 45,208 41,457 Average outstanding shares - diluted 75,586,453 74,676,124 75,469,355 74,554,263 Basic earnings per share $ 0.39 0.40 1.15 1.14 Diluted earnings per share $ 0.39 0.40 1.15 1.14 |
Fair Value of Assets and Liab32
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment securities, available-for-sale U.S. government and federal agency $ 49,315 — 49,315 — U.S. government sponsored enterprises 98,791 — 98,791 — State and local governments 931,000 — 931,000 — Corporate bonds 360,811 — 360,811 — Residential mortgage-backed securities 1,091,077 — 1,091,077 — Total assets measured at fair value on a recurring basis $ 2,530,994 — 2,530,994 — Interest rate swaps $ 23,623 — 23,623 — Total liabilities measured at fair value on a recurring basis $ 23,623 — 23,623 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 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 September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other real estate owned $ 6,582 — — 6,582 Collateral-dependent impaired loans, net of ALLL 12,401 — — 12,401 Total assets measured at fair value on a non-recurring basis $ 18,983 — — 18,983 Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 |
Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used | The following tables present 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 September 30, 2015 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 3,040 Sales comparison approach Selling costs 7.0% - 10.0% (8.4%) 3,542 Combined approach Selling costs 8.0% - 8.0% (8.0%) $ 6,582 Collateral-dependent impaired loans, net of ALLL $ 71 Cost approach Selling costs 0.0% - 20.0% (9.7%) 9,117 Sales comparison approach Selling costs 7.0% - 10.0% (8.8%) Adjustment to comparables 0.0% - 5.0% (0.0%) 3,213 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 12,401 Fair Value December 31, 2014 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Valuation Technique Unobservable Input Range (Weighted-Average) 1 Other real estate owned $ 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 __________ 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 September 30, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash and cash equivalents $ 242,835 242,835 — — Investment securities, available-for-sale 2,530,994 — 2,530,994 — Investment securities, held-to-maturity 651,822 — 672,395 — Loans held for sale 40,456 40,456 — — Loans receivable, net of ALLL 4,745,651 — 4,661,095 138,742 Accrued interest receivable 46,786 46,786 — — Non-marketable equity securities 24,905 — 24,905 — Total financial assets $ 8,283,449 330,077 7,889,389 138,742 Financial liabilities Deposits $ 6,673,179 5,388,835 1,287,943 — FHLB advances 329,299 — 340,776 — Repurchase agreements and other borrowed funds 447,660 — 447,660 — Subordinated debentures 125,812 — 78,002 — Accrued interest payable 3,641 3,641 — — Interest rate swaps 23,623 — 23,623 — Total financial liabilities $ 7,603,214 5,392,476 2,178,004 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 2014 Quoted Prices Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 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 — |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Consideration transferred, identifiable net assets acquired and resulting goodwill | The following table discloses the calculation of the fair value of the consideration transferred, the total identifiable net assets acquired and the resulting goodwill arising from the CB acquisition: (Dollars in thousands) February 28, Fair value of consideration transferred Fair value of Company shares issued, net of equity issuance costs $ 10,776 Cash consideration for outstanding shares 12,219 Contingent consideration — Total fair value of consideration transferred 22,995 Recognized amounts of identifiable assets acquired and liabilities assumed Identifiable assets acquired Cash and cash equivalents 31,931 Investment securities 42,350 Loans receivable 84,689 Core deposit intangible 2,087 Accrued income and other assets 13,580 Total identifiable assets acquired 174,637 Liabilities assumed Deposits 146,820 FHLB advances and repurchase agreements 3,292 Accrued expenses and other liabilities 2,667 Total liabilities assumed 152,779 Total identifiable net assets 21,858 Goodwill recognized $ 1,137 |
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 CB acquisition had occurred on January 1, 2014: Three Months ended Nine Months ended (Dollars in thousands) September 30, September 30, September 30, September 30, Net interest income and non-interest income $ 98,857 95,669 289,861 276,403 Net income 29,614 29,561 86,620 85,359 |
Nature of Operations and Summ34
Nature of Operations and Summary of Significant Accounting Policies (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
Number of Bank Divisions | 13 |
Number of Operating Segments | 1 |
Minimum Period Past Due to Consider Loan as Delinquent | 30 days |
Minimum Period Past Due to Consider Loan as Non Accrual | 90 days |
Minimum Number of Days Delinquent to Charge off Consumer Loans | 120 days |
Number of Steps to Achieve Core Revenue Recognition Principal | 5 |
Minimum Range | |
Number of years for home equity loan origination term | 10 years |
Maximum Range | |
Number of years for home equity loan origination term | 20 years |
Amortized Cost, Gross Unrealize
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Amortized Cost | $ 2,494,301 | $ 2,341,767 |
Gross Unrealized Gains | 47,457 | 53,468 |
Gross Unrealized Losses | (10,764) | (7,807) |
Fair Value | 2,530,994 | 2,387,428 |
Held-to-maturity | ||
Amortized Cost | 651,822 | 520,997 |
Gross Unrealized Gains | 26,470 | 32,925 |
Gross Unrealized Losses | (5,897) | (2,976) |
Fair Value | 672,395 | 550,946 |
Total | ||
Amortized Cost | 3,146,123 | 2,862,764 |
Gross Unrealized Gains | 73,927 | 86,393 |
Gross Unrealized Losses | (16,661) | (10,783) |
Fair Value | 3,203,389 | 2,938,374 |
U.S. government and federal agency | ||
Available-for-sale | ||
Amortized Cost | 49,712 | 44 |
Gross Unrealized Gains | 15 | 0 |
Gross Unrealized Losses | (412) | 0 |
Fair Value | 49,315 | 44 |
U.S. government sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 98,095 | 21,916 |
Gross Unrealized Gains | 699 | 31 |
Gross Unrealized Losses | (3) | (2) |
Fair Value | 98,791 | 21,945 |
State and local governments | ||
Available-for-sale | ||
Amortized Cost | 903,722 | 962,365 |
Gross Unrealized Gains | 34,084 | 40,173 |
Gross Unrealized Losses | (6,806) | (4,569) |
Fair Value | 931,000 | 997,969 |
Held-to-maturity | ||
Amortized Cost | 651,822 | 520,997 |
Gross Unrealized Gains | 26,470 | 32,925 |
Gross Unrealized Losses | (5,897) | (2,976) |
Fair Value | 672,395 | 550,946 |
Corporate bonds | ||
Available-for-sale | ||
Amortized Cost | 360,846 | 313,545 |
Gross Unrealized Gains | 1,219 | 2,059 |
Gross Unrealized Losses | (1,254) | (750) |
Fair Value | 360,811 | 314,854 |
Residential mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 1,081,926 | 1,043,897 |
Gross Unrealized Gains | 11,440 | 11,205 |
Gross Unrealized Losses | (2,289) | (2,486) |
Fair Value | $ 1,091,077 | $ 1,052,616 |
Investment Securities Maturity
Investment Securities Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Available-for-Sale, Amortized Cost | |||
Due within one year | $ 155,812 | ||
Due after one year through five years | 432,211 | ||
Due after five years through ten years | 151,861 | ||
Due after ten years | 672,491 | ||
Total before residential mortgage-backed securities | 1,412,375 | ||
Total | 2,494,301 | $ 2,341,767 | |
Available-for-Sale, Fair Value | |||
Due within one year | 156,630 | ||
Due after one year through five years | 433,896 | ||
Due after five years through ten years | 156,083 | ||
Due after ten years | 693,308 | ||
Total before residential mortgage-backed securities | 1,439,917 | ||
Total | 2,530,994 | 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 | 18,557 | ||
Due after ten years | 633,265 | ||
Total before residential mortgage-backed securities | 651,822 | ||
Amortized Cost | 651,822 | 520,997 | |
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 | 18,706 | ||
Due after ten years | 653,689 | ||
Total before residential mortgage-backed securities | 672,395 | ||
Total | 672,395 | 550,946 | |
Residential mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Residential mortgage-backed securities | [1] | 1,081,926 | |
Total | 1,081,926 | 1,043,897 | |
Available-for-Sale, Fair Value | |||
Residential mortgage-backed securities | [1] | 1,091,077 | |
Total | 1,091,077 | $ 1,052,616 | |
Held-to-Maturity, Amortized Cost | |||
Residential mortgage-backed securities | [1] | 0 | |
Held-to-Maturity, Fair Value | |||
Residential mortgage-backed securities | [1] | $ 0 | |
[1] | Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
Proceeds From Sales and Calls o
Proceeds From Sales and Calls of Investment Securities and Associates Gains or Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Available-for-sale | |||||
Proceeds from sales and calls of investment securities | $ 39,502 | $ 166,577 | $ 114,123 | $ 200,277 | |
Gross realized gains | [1] | 516 | 160 | 598 | 341 |
Gross realized losses | [1] | (566) | (221) | (693) | (523) |
Held-to-maturity | |||||
Proceeds from calls of investment securities | 6,697 | 5,006 | 16,762 | 8,936 | |
Gross realized gains | [1] | 19 | 0 | 34 | 22 |
Gross realized losses | [1] | $ 0 | $ 0 | $ (63) | $ 0 |
[1] | The gain or loss on the sale or call of each investment security is determined by the specific identification method. |
Investment with an Unrealized L
Investment with an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale, Fair Value | ||
Less than 12 Months | $ 540,180 | $ 358,126 |
12 Months or More | 204,995 | 202,027 |
Total | 745,175 | 560,153 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (4,544) | (2,746) |
12 Months or More | (6,220) | (5,061) |
Total | (10,764) | (7,807) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 108,671 | 18,643 |
12 Months or More | 69,625 | 76,761 |
Total | 178,296 | 95,404 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | (2,389) | (624) |
12 Months or More | (3,508) | (2,352) |
Total | (5,897) | (2,976) |
U.S. government and federal agency | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 46,129 | 0 |
12 Months or More | 2 | 3 |
Total | 46,131 | 3 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (412) | 0 |
12 Months or More | 0 | 0 |
Total | (412) | 0 |
U.S. government sponsored enterprises | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 4,595 | 13,793 |
12 Months or More | 0 | 0 |
Total | 4,595 | 13,793 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (3) | (2) |
12 Months or More | 0 | 0 |
Total | (3) | (2) |
State and local governments | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 135,878 | 91,082 |
12 Months or More | 137,894 | 115,927 |
Total | 273,772 | 207,009 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (1,986) | (1,273) |
12 Months or More | (4,820) | (3,296) |
Total | (6,806) | (4,569) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 108,671 | 18,643 |
12 Months or More | 69,625 | 76,761 |
Total | 178,296 | 95,404 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | (2,389) | (624) |
12 Months or More | (3,508) | (2,352) |
Total | (5,897) | (2,976) |
Corporate bonds | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 131,483 | 60,289 |
12 Months or More | 10,736 | 7,874 |
Total | 142,219 | 68,163 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (826) | (545) |
12 Months or More | (428) | (205) |
Total | (1,254) | (750) |
Residential mortgage-backed securities | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 222,095 | 192,962 |
12 Months or More | 56,363 | 78,223 |
Total | 278,458 | 271,185 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (1,317) | (926) |
12 Months or More | (972) | (1,560) |
Total | $ (2,289) | $ (2,486) |
Investment Securities (Details
Investment Securities (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Other-than-temporary impairment on investment securities | $ 0 | $ 0 |
Loans Receivable, Net Summary o
Loans Receivable, Net Summary of Loans Receivable (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | |
Summary of Loans Receivable | |||
Loans receivable | [1] | $ 4,876,419,000 | $ 4,488,095,000 |
Allowance for loan and lease losses | (130,768,000) | (129,753,000) | |
Loans receivable, net | 4,745,651,000 | 4,358,342,000 | |
Net deferred fees, costs, premiums, and discounts included in loans receivable | 12,450,000 | 13,710,000 | |
Residential Real Estate | |||
Summary of Loans Receivable | |||
Loans receivable | 644,694,000 | 611,463,000 | |
Allowance for loan and lease losses | (15,708,000) | (14,680,000) | |
Commercial Real Estate | |||
Summary of Loans Receivable | |||
Loans receivable | 2,500,952,000 | 2,337,548,000 | |
Allowance for loan and lease losses | (68,026,000) | (67,799,000) | |
Other Commercial | |||
Summary of Loans Receivable | |||
Loans receivable | 1,080,715,000 | 925,900,000 | |
Allowance for loan and lease losses | (31,601,000) | (30,891,000) | |
Total Commercial | |||
Summary of Loans Receivable | |||
Loans receivable | 3,581,667,000 | 3,263,448,000 | |
Home Equity | |||
Summary of Loans Receivable | |||
Loans receivable | 412,256,000 | 394,670,000 | |
Allowance for loan and lease losses | (9,046,000) | (9,963,000) | |
Other Consumer | |||
Summary of Loans Receivable | |||
Loans receivable | 237,802,000 | 218,514,000 | |
Allowance for loan and lease losses | (6,387,000) | (6,420,000) | |
Total Consumer and Other | |||
Summary of Loans Receivable | |||
Loans receivable | $ 650,058,000 | $ 613,184,000 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014, respectively. |
ALLL Activity (Details)
ALLL Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for loan and lease losses | ||||
Balance at beginning of period | $ 130,519 | $ 130,636 | $ 129,753 | $ 130,351 |
Provision for loan losses | 826 | 360 | 1,873 | 1,721 |
Charge-offs | (2,073) | (2,243) | (4,671) | (5,567) |
Recoveries | 1,496 | 1,879 | 3,813 | 4,127 |
Balance at end of period | 130,768 | 130,632 | 130,768 | 130,632 |
Residential Real Estate | ||||
Allowance for loan and lease losses | ||||
Balance at beginning of period | 14,850 | 14,624 | 14,680 | 14,067 |
Provision for loan losses | 854 | 374 | 1,036 | 1,111 |
Charge-offs | (20) | 0 | (78) | (413) |
Recoveries | 24 | 42 | 70 | 275 |
Balance at end of period | 15,708 | 15,040 | 15,708 | 15,040 |
Commercial Real Estate | ||||
Allowance for loan and lease losses | ||||
Balance at beginning of period | 68,697 | 68,929 | 67,799 | 70,332 |
Provision for loan losses | (657) | (1,072) | (452) | (3,261) |
Charge-offs | (921) | (944) | (1,669) | (1,208) |
Recoveries | 907 | 650 | 2,348 | 1,700 |
Balance at end of period | 68,026 | 67,563 | 68,026 | 67,563 |
Other Commercial | ||||
Allowance for loan and lease losses | ||||
Balance at beginning of period | 31,483 | 29,589 | 30,891 | 28,630 |
Provision for loan losses | 195 | 758 | 1,839 | 3,025 |
Charge-offs | (367) | (579) | (1,736) | (2,328) |
Recoveries | 290 | 997 | 607 | 1,438 |
Balance at end of period | 31,601 | 30,765 | 31,601 | 30,765 |
Home Equity | ||||
Allowance for loan and lease losses | ||||
Balance at beginning of period | 8,946 | 9,725 | 9,963 | 9,299 |
Provision for loan losses | 397 | 900 | (621) | 1,411 |
Charge-offs | (433) | (607) | (586) | (906) |
Recoveries | 136 | 86 | 290 | 300 |
Balance at end of period | 9,046 | 10,104 | 9,046 | 10,104 |
Other Consumer | ||||
Allowance for loan and lease losses | ||||
Balance at beginning of period | 6,543 | 7,769 | 6,420 | 8,023 |
Provision for loan losses | 37 | (600) | 71 | (565) |
Charge-offs | (332) | (113) | (602) | (712) |
Recoveries | 139 | 104 | 498 | 414 |
Balance at end of period | $ 6,387 | $ 7,160 | $ 6,387 | $ 7,160 |
ALLL and Loans Receivable Summa
ALLL and Loans Receivable Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | $ 7,497 | $ 11,597 | |
Collectively evaluated for impairment | 123,271 | 118,156 | |
Total allowance for loan and lease losses | 130,768 | 129,753 | |
Individually evaluated for impairment | 146,239 | 161,366 | |
Collectively evaluated for impairment | 4,730,180 | 4,326,729 | |
Total loans receivable | [1] | 4,876,419 | 4,488,095 |
Residential Real Estate | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 1,857 | 853 | |
Collectively evaluated for impairment | 13,851 | 13,827 | |
Total allowance for loan and lease losses | 15,708 | 14,680 | |
Individually evaluated for impairment | 22,483 | 19,576 | |
Collectively evaluated for impairment | 622,211 | 591,887 | |
Total loans receivable | 644,694 | 611,463 | |
Commercial Real Estate | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 1,224 | 2,967 | |
Collectively evaluated for impairment | 66,802 | 64,832 | |
Total allowance for loan and lease losses | 68,026 | 67,799 | |
Individually evaluated for impairment | 88,122 | 105,264 | |
Collectively evaluated for impairment | 2,412,830 | 2,232,284 | |
Total loans receivable | 2,500,952 | 2,337,548 | |
Other Commercial | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 3,956 | 6,836 | |
Collectively evaluated for impairment | 27,645 | 24,055 | |
Total allowance for loan and lease losses | 31,601 | 30,891 | |
Individually evaluated for impairment | 24,343 | 25,321 | |
Collectively evaluated for impairment | 1,056,372 | 900,579 | |
Total loans receivable | 1,080,715 | 925,900 | |
Home Equity | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 52 | 447 | |
Collectively evaluated for impairment | 8,994 | 9,516 | |
Total allowance for loan and lease losses | 9,046 | 9,963 | |
Individually evaluated for impairment | 7,405 | 6,901 | |
Collectively evaluated for impairment | 404,851 | 387,769 | |
Total loans receivable | 412,256 | 394,670 | |
Other Consumer | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 408 | 494 | |
Collectively evaluated for impairment | 5,979 | 5,926 | |
Total allowance for loan and lease losses | 6,387 | 6,420 | |
Individually evaluated for impairment | 3,886 | 4,304 | |
Collectively evaluated for impairment | 233,916 | 214,210 | |
Total loans receivable | $ 237,802 | $ 218,514 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014, respectively. |
Impaired Loans (Details)
Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Summary of the impaired loans by portfolio class of loans | |||
Loans with a specific valuation allowance, Recorded balance | $ 32,176 | $ 32,176 | $ 45,688 |
Loans with a specific valuation allowance, Unpaid principal balance | 32,931 | 32,931 | 48,477 |
Specific valuation allowance | 7,497 | 7,497 | 11,597 |
Loans with a specific valuation allowance, Average balance | 33,095 | 36,549 | 53,339 |
Loans without a specific valuation allowance, Recorded balance | 114,063 | 114,063 | 115,678 |
Loans without a specific valuation allowance, Unpaid principal balance | 140,979 | 140,979 | 145,038 |
Loans without a specific valuation allowance, Average balance | 115,891 | 118,921 | 128,645 |
Recorded balance | 146,239 | 146,239 | 161,366 |
Unpaid principal balance | 173,910 | 173,910 | 193,515 |
Average balance | 148,986 | 155,470 | 181,984 |
Residential Real Estate | |||
Summary of the impaired loans by portfolio class of loans | |||
Loans with a specific valuation allowance, Recorded balance | 9,438 | 9,438 | 4,110 |
Loans with a specific valuation allowance, Unpaid principal balance | 9,580 | 9,580 | 4,276 |
Specific valuation allowance | 1,857 | 1,857 | 853 |
Loans with a specific valuation allowance, Average balance | 7,246 | 5,927 | 5,480 |
Loans without a specific valuation allowance, Recorded balance | 13,045 | 13,045 | 15,466 |
Loans without a specific valuation allowance, Unpaid principal balance | 14,389 | 14,389 | 16,683 |
Loans without a specific valuation allowance, Average balance | 13,095 | 13,890 | 15,580 |
Recorded balance | 22,483 | 22,483 | 19,576 |
Unpaid principal balance | 23,969 | 23,969 | 20,959 |
Average balance | 20,341 | 19,817 | 21,060 |
Commercial Real Estate | |||
Summary of the impaired loans by portfolio class of loans | |||
Loans with a specific valuation allowance, Recorded balance | 11,360 | 11,360 | 27,155 |
Loans with a specific valuation allowance, Unpaid principal balance | 11,384 | 11,384 | 28,048 |
Specific valuation allowance | 1,224 | 1,224 | 2,967 |
Loans with a specific valuation allowance, Average balance | 13,236 | 16,646 | 24,519 |
Loans without a specific valuation allowance, Recorded balance | 76,762 | 76,762 | 78,109 |
Loans without a specific valuation allowance, Unpaid principal balance | 97,633 | 97,633 | 100,266 |
Loans without a specific valuation allowance, Average balance | 78,255 | 80,032 | 89,015 |
Recorded balance | 88,122 | 88,122 | 105,264 |
Unpaid principal balance | 109,017 | 109,017 | 128,314 |
Average balance | 91,491 | 96,678 | 113,534 |
Other Commercial | |||
Summary of the impaired loans by portfolio class of loans | |||
Loans with a specific valuation allowance, Recorded balance | 9,532 | 9,532 | 11,377 |
Loans with a specific valuation allowance, Unpaid principal balance | 9,613 | 9,613 | 12,461 |
Specific valuation allowance | 3,956 | 3,956 | 6,836 |
Loans with a specific valuation allowance, Average balance | 10,697 | 11,729 | 19,874 |
Loans without a specific valuation allowance, Recorded balance | 14,811 | 14,811 | 13,944 |
Loans without a specific valuation allowance, Unpaid principal balance | 18,469 | 18,469 | 19,117 |
Loans without a specific valuation allowance, Average balance | 15,505 | 16,361 | 14,024 |
Recorded balance | 24,343 | 24,343 | 25,321 |
Unpaid principal balance | 28,082 | 28,082 | 31,578 |
Average balance | 26,202 | 28,090 | 33,898 |
Home Equity | |||
Summary of the impaired loans by portfolio class of loans | |||
Loans with a specific valuation allowance, Recorded balance | 175 | 175 | 1,214 |
Loans with a specific valuation allowance, Unpaid principal balance | 195 | 195 | 1,336 |
Specific valuation allowance | 52 | 52 | 447 |
Loans with a specific valuation allowance, Average balance | 205 | 507 | 1,039 |
Loans without a specific valuation allowance, Recorded balance | 7,230 | 7,230 | 5,687 |
Loans without a specific valuation allowance, Unpaid principal balance | 8,209 | 8,209 | 6,403 |
Loans without a specific valuation allowance, Average balance | 6,788 | 6,339 | 7,163 |
Recorded balance | 7,405 | 7,405 | 6,901 |
Unpaid principal balance | 8,404 | 8,404 | 7,739 |
Average balance | 6,993 | 6,846 | 8,202 |
Other Consumer | |||
Summary of the impaired loans by portfolio class of loans | |||
Loans with a specific valuation allowance, Recorded balance | 1,671 | 1,671 | 1,832 |
Loans with a specific valuation allowance, Unpaid principal balance | 2,159 | 2,159 | 2,356 |
Specific valuation allowance | 408 | 408 | 494 |
Loans with a specific valuation allowance, Average balance | 1,711 | 1,740 | 2,427 |
Loans without a specific valuation allowance, Recorded balance | 2,215 | 2,215 | 2,472 |
Loans without a specific valuation allowance, Unpaid principal balance | 2,279 | 2,279 | 2,569 |
Loans without a specific valuation allowance, Average balance | 2,248 | 2,299 | 2,863 |
Recorded balance | 3,886 | 3,886 | 4,304 |
Unpaid principal balance | 4,438 | 4,438 | 4,925 |
Average balance | $ 3,959 | $ 4,039 | $ 5,290 |
Loans Receivable Aging Analysis
Loans Receivable Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Loan portfolio aging analysis | |||
Non-accrual loans | $ 54,632 | $ 61,882 | |
Total past due and non-accrual loans | 76,238 | 88,000 | |
Current loans receivable | 4,800,181 | 4,400,095 | |
Total loans receivable | [1] | 4,876,419 | 4,488,095 |
Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 10,753 | 19,139 | |
Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 7,069 | 6,765 | |
Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 3,784 | 214 | |
Residential Real Estate | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 9,590 | 6,798 | |
Total past due and non-accrual loans | 10,268 | 12,025 | |
Current loans receivable | 634,426 | 599,438 | |
Total loans receivable | 644,694 | 611,463 | |
Residential Real Estate | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 399 | 3,506 | |
Residential Real Estate | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 236 | 1,686 | |
Residential Real Estate | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 43 | 35 | |
Commercial Real Estate | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 29,251 | 39,717 | |
Total past due and non-accrual loans | 40,619 | 51,265 | |
Current loans receivable | 2,460,333 | 2,286,283 | |
Total loans receivable | 2,500,952 | 2,337,548 | |
Commercial Real Estate | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 4,126 | 7,925 | |
Commercial Real Estate | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 5,567 | 3,592 | |
Commercial Real Estate | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,675 | 31 | |
Other Commercial | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 8,160 | 8,421 | |
Total past due and non-accrual loans | 14,618 | 14,414 | |
Current loans receivable | 1,066,097 | 911,486 | |
Total loans receivable | 1,080,715 | 925,900 | |
Other Commercial | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 3,958 | 5,310 | |
Other Commercial | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 501 | 609 | |
Other Commercial | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,999 | 74 | |
Home Equity | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 6,856 | 5,969 | |
Total past due and non-accrual loans | 8,807 | 8,039 | |
Current loans receivable | 403,449 | 386,631 | |
Total loans receivable | 412,256 | 394,670 | |
Home Equity | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,380 | 1,374 | |
Home Equity | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 549 | 679 | |
Home Equity | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 22 | 17 | |
Other Consumer | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 775 | 977 | |
Total past due and non-accrual loans | 1,926 | 2,257 | |
Current loans receivable | 235,876 | 216,257 | |
Total loans receivable | 237,802 | 218,514 | |
Other Consumer | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 890 | 1,024 | |
Other Consumer | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 216 | 199 | |
Other Consumer | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | $ 45 | $ 57 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $12,450,000 and $13,710,000 at September 30, 2015 and December 31, 2014, respectively. |
Troubled Debt Restructurings (D
Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($)Loan | Sep. 30, 2015USD ($)Loan | Sep. 30, 2014USD ($)Loan | |
Troubled Debt Restructurings | ||||
Troubled debt restructurings, Number of Loans | Loan | 10 | 12 | 30 | 38 |
Troubled debt restructurings, Pre-modification recorded balance | $ 3,004 | $ 8,681 | $ 10,127 | $ 32,957 |
Troubled debt restructurings, Post-modification recorded balance | $ 3,004 | $ 8,681 | $ 9,833 | $ 32,320 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 3 | 3 | 7 | 7 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 2,287 | $ 1,620 | $ 2,542 | $ 1,676 |
Residential Real Estate | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, Number of Loans | Loan | 2 | 0 | 2 | 0 |
Troubled debt restructurings, Pre-modification recorded balance | $ 2,134 | $ 0 | $ 2,134 | $ 0 |
Troubled debt restructurings, Post-modification recorded balance | $ 2,134 | $ 0 | $ 2,134 | $ 0 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 1 | 0 | 1 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 1,947 | $ 0 | $ 1,947 | $ 0 |
Commercial Real Estate | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, Number of Loans | Loan | 3 | 8 | 12 | 16 |
Troubled debt restructurings, Pre-modification recorded balance | $ 436 | $ 8,361 | $ 5,446 | $ 12,793 |
Troubled debt restructurings, Post-modification recorded balance | $ 436 | $ 8,361 | $ 5,366 | $ 12,836 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 2 | 1 | 2 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 927 | $ 78 | $ 927 |
Other Commercial | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, Number of Loans | Loan | 4 | 3 | 12 | 18 |
Troubled debt restructurings, Pre-modification recorded balance | $ 397 | $ 309 | $ 2,306 | $ 19,908 |
Troubled debt restructurings, Post-modification recorded balance | $ 397 | $ 309 | $ 2,092 | $ 19,228 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 2 | 1 | 3 | 5 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 340 | $ 693 | $ 440 | $ 749 |
Home Equity | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, Number of Loans | Loan | 0 | 0 | 0 | 2 |
Troubled debt restructurings, Pre-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 242 |
Troubled debt restructurings, Post-modification recorded balance | $ 0 | $ 0 | $ 0 | $ 242 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 | 1 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 | $ 75 | $ 0 |
Other Consumer | ||||
Troubled Debt Restructurings | ||||
Troubled debt restructurings, Number of Loans | Loan | 1 | 1 | 4 | 2 |
Troubled debt restructurings, Pre-modification recorded balance | $ 37 | $ 11 | $ 241 | $ 14 |
Troubled debt restructurings, Post-modification recorded balance | $ 37 | $ 11 | $ 241 | $ 14 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 0 | 1 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 0 | $ 2 | $ 0 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details Textual) - USD ($) | Sep. 30, 2015 | Sep. 30, 2014 |
Loans and Leases Receivable Disclosure | ||
TDR With Pre Modification Loan Balance for Which Oreo Was Received | $ 7,677,000 | $ 10,178,000 |
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | 3,864,000 | |
OREO Secured by Residential Real Estate | $ 1,308,000 |
Goodwill Changes in the Carryin
Goodwill Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill Roll Forward | ||||
Net carrying value at beginning of period | $ 130,843 | $ 129,706 | $ 129,706 | $ 129,706 |
Acquisitions | 0 | 0 | 1,137 | 0 |
Net carrying value at end of period | $ 130,843 | $ 129,706 | $ 130,843 | $ 129,706 |
Net Carrying Value of Goodwill
Net Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Gross carrying value of goodwill and the accumulated impairment charge | ||||||
Gross carrying value | $ 171,002 | $ 169,865 | ||||
Accumulated impairment charge | (40,159) | (40,159) | ||||
Net carrying value | $ 130,843 | $ 130,843 | $ 129,706 | $ 129,706 | $ 129,706 | $ 129,706 |
Variable Interest Entities VIE
Variable Interest Entities VIE Carrying Amounts Included in Financial Statements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CDE (NMTC) | ||
Carrying amounts of the VIEs' assets and liabilities | ||
Loans receivable | $ 36,114 | $ 36,077 |
Premises and equipment, net | 0 | 0 |
Accrued interest receivable | 113 | 116 |
Other assets | 376 | 616 |
Total assets | 36,603 | 36,809 |
Other borrowed funds | 4,555 | 4,555 |
Accrued interest payable | 4 | 4 |
Other liabilities | 35 | 185 |
Total liabilities | 4,594 | 4,744 |
LIHTC | ||
Carrying amounts of the VIEs' assets and liabilities | ||
Loans receivable | 0 | 0 |
Premises and equipment, net | 12,783 | 13,106 |
Accrued interest receivable | 0 | 0 |
Other assets | 312 | 258 |
Total assets | 13,095 | 13,364 |
Other borrowed funds | 1,640 | 1,690 |
Accrued interest payable | 5 | 5 |
Other liabilities | 0 | 0 |
Total liabilities | $ 1,645 | $ 1,695 |
Variable Interest Entities VI50
Variable Interest Entities VIE Net Income or Loss and Tax Credits (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
CDE (NMTC) | ||||
Consolidated VIEs | ||||
VIE loss | $ (15) | $ (14) | $ (705) | $ (701) |
Federal income tax credits | 276 | 275 | 1,441 | 1,439 |
LIHTC | ||||
Consolidated VIEs | ||||
VIE loss | (177) | (270) | (680) | (811) |
Federal income tax credits | $ 294 | $ 318 | $ 881 | $ 953 |
Carrying Value of Repurchase Ag
Carrying Value of Repurchase Agreements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 441,041 | $ 397,107 |
Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 438,217 | |
Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 2,824 | |
U.S. government sponsored enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 12,603 | |
U.S. government sponsored enterprises | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 12,603 | |
U.S. government sponsored enterprises | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 0 | |
Residential mortgage-backed securities | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 428,438 | 397,107 |
Residential mortgage-backed securities | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 425,614 | 391,997 |
Residential mortgage-backed securities | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 2,824 | $ 5,110 |
Securities Sold Under Agreeme52
Securities Sold Under Agreements to Repurchase Securities Sold Under Agreements to Repurchase (Details Textual) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 441,041,000 | $ 397,107,000 |
Securities Pledged for Repurchase Agreements | $ 472,289,000 | $ 479,345,000 |
Interest Rate Swap Summary (Det
Interest Rate Swap Summary (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
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 | 3.378% | [1] |
Term, Effective Date | Oct. 21, 2014 | [2] |
Term, Maturity Date | Oct. 21, 2021 | [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 | 2.498% | [1] |
Term, Effective Date | Nov. 30, 2015 | [2] |
Term, Maturity Date | Nov. 30, 2022 | [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 Activ54
Derivatives and Hedging Activities Interest Rate Swap Gains or Losses (Details) - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Expense | ||||
Pre-Tax Gains or Losses | ||||
Amount of loss reclassified from OCI to interest expense | $ (1,263) | $ 0 | $ (3,771) | $ 0 |
Other Non-Interest Expense | ||||
Pre-Tax Gains or Losses | ||||
Amount of loss recognized in other non-interest expense (ineffective portion) | 0 | 0 | 0 | 0 |
Other Comprehensive Income | ||||
Pre-Tax Gains or Losses | ||||
Amount of gain (loss) recognized in OCI (effective portion) | $ (8,630) | $ 201 | $ (10,727) | $ (11,468) |
Derivatives and Hedging Activ55
Derivatives and Hedging Activities Offsetting Assets (Details) - Interest Rate Swap - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 0 | $ 0 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts of Assets Presented in the Statements of Financial Position | $ 0 | $ 0 |
Derivatives and Hedging Activ56
Derivatives and Hedging Activities Offsetting Liabilities (Details) - Interest Rate Swap - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | $ 23,623 | $ 16,668 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Financial Position | $ 23,623 | $ 16,668 |
Derivatives and Hedging Activ57
Derivatives and Hedging Activities (Details Textual) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Interest Rate Swap | |
Interest rate swap derivative financial instruments | |
Investment securities pledged as collateral | $ 26,074,000 |
Collateral pledged from the counterparties to the Company | 0 |
Interest Rate Swap One | |
Interest rate swap derivative financial instruments | |
Forecasted Notional Amount | 160,000,000 |
Interest expense recorded on interest rate swap | 4,099,000 |
Unrealized loss to be reclassified within twelve months | $ 5,405,000 |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Expenses | ||||
Debit card expenses | $ 1,625 | $ 1,455 | $ 4,510 | $ 4,457 |
Consulting and outside services | 898 | 1,634 | 4,173 | 3,024 |
VIE write-downs, losses and other expenses | 761 | 858 | 3,062 | 3,210 |
Employee expenses | 1,032 | 907 | 2,827 | 2,486 |
Postage | 902 | 828 | 2,743 | 2,472 |
Printing and supplies | 937 | 871 | 2,633 | 2,540 |
Checking and operating expenses | 1,104 | 1,033 | 2,551 | 2,587 |
Telephone | 816 | 667 | 2,453 | 2,207 |
Loan expenses | 642 | 618 | 2,433 | 1,761 |
Accounting and audit fees | 405 | 366 | 1,264 | 1,219 |
ATM expenses | 242 | 268 | 811 | 836 |
Legal fees | 332 | 389 | 780 | 1,027 |
Other | 1,033 | 899 | 2,845 | 2,601 |
Total other expenses | $ 10,729 | $ 10,793 | $ 33,085 | $ 30,427 |
Accumulated Other Comprehensi59
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income | ||||
Balance, beginning | $ 17,744 | $ 9,645 | ||
Other comprehensive income before reclassification | (12,105) | 12,918 | ||
Amounts reclassified from accumulated other comprehensive income | 2,368 | 112 | ||
Net current period other comprehensive income | $ 2,567 | $ (1,531) | (9,737) | 13,030 |
Balance, end | 8,007 | 22,675 | 8,007 | 22,675 |
Available-For-Sale Securities | ||||
Accumulated Other Comprehensive Income | ||||
Balance, beginning | 27,945 | 8,485 | ||
Other comprehensive income before reclassification | (5,524) | 19,936 | ||
Amounts reclassified from accumulated other comprehensive income | 58 | 112 | ||
Net current period other comprehensive income | (5,466) | 20,048 | ||
Balance, end | 22,479 | 28,533 | 22,479 | 28,533 |
Derivatives Used for Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income | ||||
Balance, beginning | (10,201) | 1,160 | ||
Other comprehensive income before reclassification | (6,581) | (7,018) | ||
Amounts reclassified from accumulated other comprehensive income | 2,310 | 0 | ||
Net current period other comprehensive income | (4,271) | (7,018) | ||
Balance, end | $ (14,472) | $ (5,858) | $ (14,472) | $ (5,858) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Basic and Diluted Earnings Per Share | ||||
Net income available to common stockholders, basic and diluted | $ 29,614 | $ 29,294 | $ 86,619 | $ 84,701 |
Average outstanding shares - basic | 75,531,923 | 74,631,317 | 75,424,147 | 74,512,806 |
Add: dilutive stock options and awards | 54,530 | 44,807 | 45,208 | 41,457 |
Average outstanding shares - diluted | 75,586,453 | 74,676,124 | 75,469,355 | 74,554,263 |
Basic earnings per share | $ 0.39 | $ 0.40 | $ 1.15 | $ 1.14 |
Diluted earnings per share | $ 0.39 | $ 0.40 | $ 1.15 | $ 1.14 |
Earnings Per Share | ||||
Stock options and restricted stock awards excluded from the diluted average outstanding share calculation | 3,181 | 0 |
Fair Value Measurements on a Re
Fair Value Measurements on a Recurring Basis (Details) - Recurring Measurements - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Total assets measured at fair value on a recurring basis | $ 2,530,994 | $ 2,387,428 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 23,623 | 16,668 |
Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 23,623 | 16,668 |
U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 49,315 | 44 |
U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 98,791 | 21,945 |
State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 931,000 | 997,969 |
Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 360,811 | 314,854 |
Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 1,091,077 | 1,052,616 |
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 | 0 |
Level 1 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 0 | 0 |
Level 1 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 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 2 | ||
Financial Assets | ||
Total assets measured at fair value on a recurring basis | 2,530,994 | 2,387,428 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 23,623 | 16,668 |
Level 2 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 23,623 | 16,668 |
Level 2 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 49,315 | 44 |
Level 2 | U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 98,791 | 21,945 |
Level 2 | State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 931,000 | 997,969 |
Level 2 | Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 360,811 | 314,854 |
Level 2 | Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 1,091,077 | 1,052,616 |
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 | 0 |
Level 3 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 0 | 0 |
Level 3 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 0 | 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 |
Fair Value Measurements on a No
Fair Value Measurements on a Non-Recurring Basis (Details) - Non-Recurring Measurements - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | $ 6,582 | $ 3,000 |
Collateral-dependent impaired loans, net of ALLL | 12,401 | 15,480 |
Total assets measured at fair value on a non-recurring basis | 18,983 | 18,480 |
Level 1 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 3 | ||
Assets with a recorded change resulting from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 6,582 | 3,000 |
Collateral-dependent impaired loans, net of ALLL | 12,401 | 15,480 |
Total assets measured at fair value on a non-recurring basis | $ 18,983 | $ 18,480 |
Quantitative Information about
Quantitative Information about Level 3 Fair Value Measurements (Details) - Non-Recurring Measurements - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 18,983 | $ 18,480 | |
Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 18,983 | 18,480 | |
Other real estate owned | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 6,582 | 3,000 | |
Other real estate owned | Sales Comparison Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 3,040 | 2,393 | |
Other real estate owned | Combined Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 3,542 | $ 607 | |
Other real estate owned | Minimum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 7.00% | 0.00% |
Adjustment to Comparables | [1] | 0.00% | |
Other real estate owned | Minimum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 10.00% |
Discount Rate | [1] | 10.00% | |
Other real estate owned | Maximum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Adjustment to Comparables | [1] | 7.00% | |
Other real estate owned | Maximum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 10.00% |
Discount Rate | [1] | 10.00% | |
Other real estate owned | Weighted Average Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.40% | 5.80% |
Adjustment to Comparables | [1] | 0.50% | |
Other real estate owned | Weighted Average Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | 10.00% |
Discount Rate | [1] | 10.00% | |
Collateral-dependent Impaired Loans, Net of ALLL | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 12,401 | $ 15,480 | |
Collateral-dependent Impaired Loans, Net of ALLL | Sales Comparison Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 9,117 | 6,330 | |
Collateral-dependent Impaired Loans, Net of ALLL | Combined Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 3,213 | 3,809 | |
Collateral-dependent Impaired Loans, Net of ALLL | Cost Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 71 | 6 | |
Collateral-dependent Impaired Loans, Net of ALLL | Income Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 5,335 | ||
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 7.00% | 0.00% |
Adjustment to Comparables | [1] | 0.00% | 0.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 8.00% |
Adjustment to Comparables | [1] | 20.00% | 10.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Cost Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 0.00% | 7.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Minimum Range | Income Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.00% | |
Discount Rate | [1] | 8.30% | |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Adjustment to Comparables | [1] | 5.00% | 30.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 10.00% |
Adjustment to Comparables | [1] | 20.00% | 20.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Cost Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 20.00% | 7.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Maximum Range | Income Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | |
Discount Rate | [1] | 12.00% | |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Sales Comparison Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.80% | 8.30% |
Adjustment to Comparables | [1] | 0.00% | 3.50% |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Combined Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 10.00% | 9.20% |
Adjustment to Comparables | [1] | 20.00% | 16.20% |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Cost Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 9.70% | 7.00% |
Collateral-dependent Impaired Loans, Net of ALLL | Weighted Average Range | Income Approach | Level 3 | |||
Unobservable Inputs | |||
Selling Costs | [1] | 8.50% | |
Discount Rate | [1] | 9.10% | |
[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 ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | $ 242,835 | $ 442,409 |
Investment securities, available-for-sale | 2,530,994 | 2,387,428 |
Investment securities, held-to-maturity | 651,822 | 520,997 |
Loans held for sale | 40,456 | 46,726 |
Loans receivable, net of ALLL | 4,745,651 | 4,358,342 |
Accrued interest receivable | 46,786 | 40,587 |
Non-marketable equity securities | 24,905 | 52,868 |
Total financial assets | 8,283,449 | 7,849,357 |
Financial liabilities | ||
Deposits | 6,673,179 | 6,345,212 |
FHLB advances | 329,299 | 296,944 |
Repurchase agreements and other borrowed funds | 447,660 | 404,418 |
Subordinated debentures | 125,812 | 125,705 |
Accrued interest payable | 3,641 | 4,155 |
Interest rate swaps | 23,623 | 16,668 |
Total financial liabilities | 7,603,214 | 7,193,102 |
Estimated Fair Value | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 242,835 | 442,409 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | 0 |
Loans held for sale | 40,456 | 46,726 |
Loans receivable, net of ALLL | 0 | 0 |
Accrued interest receivable | 46,786 | 40,587 |
Non-marketable equity securities | 0 | 0 |
Total financial assets | 330,077 | 529,722 |
Financial liabilities | ||
Deposits | 5,388,835 | 4,928,771 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 3,641 | 4,155 |
Interest rate swaps | 0 | 0 |
Total financial liabilities | 5,392,476 | 4,932,926 |
Estimated Fair Value | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities, available-for-sale | 2,530,994 | 2,387,428 |
Investment securities, held-to-maturity | 672,395 | 550,946 |
Loans held for sale | 0 | 0 |
Loans receivable, net of ALLL | 4,661,095 | 4,288,417 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 24,905 | 52,868 |
Total financial assets | 7,889,389 | 7,279,659 |
Financial liabilities | ||
Deposits | 1,287,943 | 1,421,234 |
FHLB advances | 340,776 | 312,363 |
Repurchase agreements and other borrowed funds | 447,660 | 404,418 |
Subordinated debentures | 78,002 | 76,711 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 23,623 | 16,668 |
Total financial liabilities | 2,178,004 | 2,231,394 |
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 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net of ALLL | 138,742 | 149,769 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 0 | 0 |
Total financial assets | 138,742 | 149,769 |
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 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Consideration Transferred, Iden
Consideration Transferred, Identifiable Net Assets Acquired and Resulting Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Liabilities assumed | ||||
Goodwill recognized | $ 0 | $ 0 | $ 1,137 | $ 0 |
Montana Community Banks, Inc. | ||||
Fair value of consideration transferred | ||||
Fair value of Company shares issued, net of equity issuance costs | 10,776 | |||
Cash consideration for outstanding shares | 12,219 | |||
Contingent consideration | 0 | |||
Total fair value of consideration transferred | 22,995 | |||
Identifiable assets acquired | ||||
Cash and cash equivalents | 31,931 | 31,931 | ||
Investment securities | 42,350 | 42,350 | ||
Loans receivable | 84,689 | 84,689 | ||
Core deposit intangible | 2,087 | 2,087 | ||
Accrued income and other assets | 13,580 | 13,580 | ||
Total identifiable assets acquired | 174,637 | 174,637 | ||
Liabilities assumed | ||||
Deposits | 146,820 | 146,820 | ||
FHLB advances and repurchase agreements | 3,292 | 3,292 | ||
Accrued expenses and other liabilities | 2,667 | 2,667 | ||
Total liabilities assumed | 152,779 | 152,779 | ||
Total identifiable net assets | $ 21,858 | 21,858 | ||
Goodwill recognized | $ 1,137 |
Mergers and Acquisitions Pro Fo
Mergers and Acquisitions Pro Forma Summary (Details) - 2015 acquisitions - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pro Forma Information | ||||
Net interest income and non-interest income | $ 98,857 | $ 95,669 | $ 289,861 | $ 276,403 |
Net income | $ 29,614 | $ 29,561 | $ 86,620 | $ 85,359 |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details Textual) - Montana Community Banks, Inc. | 9 Months Ended |
Sep. 30, 2015USD ($)shares | |
Business Acquisition | |
Effective Date of Acquisition | Feb. 28, 2015 |
Percentage of Outstanding Common Stock Acquired | 100.00% |
Business Combination, Consideration Transferred | $ 22,995,000 |
Number of Shares Issued for Aquisition | shares | 443,644 |
Cash consideration for outstanding shares | $ 12,219,000 |
Loans receivable | 84,689,000 |
Loans Receivable Acquired, Gross Principal and Contractual Interest Due | 88,817,000 |
Core deposit intangible | $ 2,087,000 |
Core Deposit Intangible Assets, Weighted Average Useful Life | 10 years |
Third-party Acquisition Related Costs | $ 1,528,000 |
Net interest income and non-interest income | 5,493,000 |
Net income | $ 866,000 |
Subsequent Event (Details Textu
Subsequent Event (Details Textual) - USD ($) | Oct. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Subsequent Event | |||
Total assets | $ 8,764,299,000 | $ 8,306,507,000 | |
Subsequent Event | |||
Subsequent Event | |||
Subsequent Event, Description | The Company acquired 100 percent of the outstanding common stock of Cañon Bank Corporation and its wholly-owned subsidiary, Cañon National Bank. | ||
Subsequent Event | Canon National Bank | |||
Subsequent Event | |||
Percentage of Outstanding Common Stock Acquired | 100.00% | ||
Business Combination, Consideration Transferred | $ 31,308,000 | ||
Number of Shares Issued for Aquisition | 554,206 | ||
Cash consideration for outstanding shares | $ 16,145,000 | ||
Total assets | $ 258,179,000 |