Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 03, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | GLACIER BANCORP INC | ||
Entity Central Index Key | 868,671 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,194,320,679 | ||
Entity Common Stock, Shares Outstanding | 76,086,288 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets | |||
Cash on hand and in banks | $ 117,137 | $ 122,834 | |
Federal funds sold | 6,080 | 1,025 | |
Interest bearing cash deposits | 70,036 | 318,550 | |
Cash and cash equivalents | 193,253 | 442,409 | |
Investment securities, available-for-sale | 2,610,760 | 2,387,428 | |
Investment securities, held-to-maturity | 702,072 | 520,997 | |
Total investment securities | 3,312,832 | 2,908,425 | |
Loans held for sale | 56,514 | 46,726 | |
Loans receivable | [1] | 5,078,681 | 4,488,095 |
Allowance for loan and lease losses | (129,697) | (129,753) | |
Loans receivable, net | 4,948,984 | 4,358,342 | |
Premises and equipment, net | 194,030 | 179,175 | |
Other real estate owned | 26,815 | 27,804 | |
Accrued interest receivable | 44,524 | 40,587 | |
Deferred tax asset | 58,475 | 41,737 | |
Core deposit intangible, net | 14,555 | 10,900 | |
Goodwill | 140,638 | 129,706 | |
Non-marketable equity securities | 27,495 | 52,868 | |
Other assets | 71,117 | 67,828 | |
Total assets | 9,089,232 | 8,306,507 | |
Liabilities | |||
Non-interest bearing deposits | 1,918,310 | 1,632,403 | |
Interest bearing deposits | 5,026,698 | 4,712,809 | |
Securities sold under agreements to repurchase | 423,414 | 397,107 | |
Federal Home Loan Bank advances | 394,131 | 296,944 | |
Other borrowed funds | 6,602 | 7,311 | |
Subordinated debentures | 125,848 | 125,705 | |
Accrued interest payable | 3,517 | 4,155 | |
Other liabilities | 114,062 | 102,026 | |
Total liabilities | 8,012,582 | 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 | 761 | 750 | |
Paid-in capital | 736,368 | 708,356 | |
Retained earnings - substantially restricted | 337,532 | 301,197 | |
Accumulated other comprehensive income | 1,989 | 17,744 | |
Total stockholders’ equity | 1,076,650 | 1,028,047 | |
Total liabilities and stockholders’ equity | $ 9,089,232 | $ 8,306,507 | |
Number of common stock shares issued and outstanding | 76,086,288 | 75,026,092 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $15,529,000 and $13,710,000 at December 31, 2015 and 2014, respectively. |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - $ / shares | Dec. 31, 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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Income | |||
Investment securities | $ 91,086 | $ 93,052 | $ 74,512 |
Residential real estate loans | 32,153 | 30,721 | 29,525 |
Commercial loans | 164,966 | 145,631 | 127,450 |
Consumer and other loans | 31,476 | 30,515 | 32,089 |
Total interest income | 319,681 | 299,919 | 263,576 |
Interest Expense | |||
Deposits | 16,138 | 13,195 | 13,870 |
Securities sold under agreements to repurchase | 1,021 | 865 | 867 |
Federal Home Loan Bank advances | 8,841 | 9,570 | 10,610 |
Federal funds purchased and other borrowed funds | 81 | 199 | 206 |
Subordinated debentures | 3,194 | 3,137 | 3,205 |
Total interest expense | 29,275 | 26,966 | 28,758 |
Net Interest Income | 290,406 | 272,953 | 234,818 |
Provision for loan losses | 2,284 | 1,912 | 6,887 |
Net interest income after provision for loan losses | 288,122 | 271,041 | 227,931 |
Non-Interest Income | |||
Service charges and other fees | 57,321 | 54,089 | 49,478 |
Miscellaneous loan fees and charges | 4,276 | 4,696 | 4,982 |
Gain on sale of loans | 26,389 | 19,797 | 28,517 |
Gain (loss) on sale of investments | 19 | (188) | (299) |
Other income | 10,756 | 11,908 | 10,369 |
Total non-interest income | 98,761 | 90,302 | 93,047 |
Non-Interest Expense | |||
Compensation and employee benefits | 134,409 | 118,571 | 104,221 |
Occupancy and equipment | 31,149 | 27,498 | 24,875 |
Advertising and promotions | 8,661 | 7,912 | 6,913 |
Data processing | 5,833 | 6,607 | 4,493 |
Other real estate owned | 3,693 | 2,568 | 7,196 |
Regulatory assessments and insurance | 5,283 | 5,064 | 6,362 |
Core deposit intangible amortization | 2,964 | 2,811 | 2,401 |
Other expense | 44,765 | 41,648 | 38,856 |
Total non-interest expense | 236,757 | 212,679 | 195,317 |
Income Before Income Taxes | 150,126 | 148,664 | 125,661 |
Federal and state income tax expense | 33,999 | 35,909 | 30,017 |
Net Income | $ 116,127 | $ 112,755 | $ 95,644 |
Basic earnings per share | $ 1.54 | $ 1.51 | $ 1.31 |
Diluted earnings per share | 1.54 | 1.51 | 1.31 |
Dividends declared per share | $ 1.05 | $ 0.98 | $ 0.60 |
Average outstanding shares - basic | 75,542,455 | 74,641,957 | 73,191,713 |
Average outstanding shares - diluted | 75,595,581 | 74,687,315 | 73,260,278 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 116,127 | $ 112,755 | $ 95,644 |
Other Comprehensive (Loss) Income, Net of Tax | |||
Unrealized (losses) gains on available-for-sale securities | (22,845) | 31,569 | (81,739) |
Reclassification adjustment for (gains) losses included in net income | (69) | 204 | 299 |
Net unrealized (losses) gains on available-for-sale securities | (22,914) | 31,773 | (81,440) |
Tax effect | 8,904 | (12,313) | 31,680 |
Net of tax amount | (14,010) | 19,460 | (49,760) |
Unrealized (losses) gains on derivatives used for cash flow hedges | (7,857) | (19,557) | 18,728 |
Reclassification adjustment for losses included in net income | 5,025 | 993 | 0 |
Net unrealized (losses) gains on derivatives used for cash flow hedges | (2,832) | (18,564) | 18,728 |
Tax effect | 1,087 | 7,203 | (7,285) |
Net of tax amount | (1,745) | (11,361) | 11,443 |
Total other comprehensive (loss) income, net of tax | (15,755) | 8,099 | (38,317) |
Total Comprehensive Income | $ 100,372 | $ 120,854 | $ 57,327 |
Consolidated Statements of Chan
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, shares at Dec. 31, 2012 | 71,937,222 | ||||
Balance at Dec. 31, 2012 | $ 900,949 | $ 719 | $ 641,737 | $ 210,531 | $ 47,962 |
Net income | 95,644 | 95,644 | |||
Comprehensive income (loss), accumulated other comprehensive income | (38,317) | (38,317) | |||
Comprehensive income, total | 57,327 | ||||
Cash dividends declared | (44,232) | (44,232) | |||
Stock issuances under stock incentive plans, shares | 292,942 | ||||
Stock issuances under stock incentive plans, amount | 4,507 | $ 3 | 4,504 | ||
Stock issued in connection with acquisitions, shares | 2,143,132 | ||||
Stock issued in connection with acquisitions, amount | 45,033 | $ 22 | 45,011 | ||
Stock-based compensation and related taxes | (334) | (334) | |||
Balance, shares at Dec. 31, 2013 | 74,373,296 | ||||
Balance at Dec. 31, 2013 | 963,250 | $ 744 | 690,918 | 261,943 | 9,645 |
Net income | 112,755 | 112,755 | |||
Comprehensive income (loss), accumulated other comprehensive income | 8,099 | 8,099 | |||
Comprehensive income, total | 120,854 | ||||
Cash dividends declared | (73,501) | (73,501) | |||
Stock issuances under stock incentive plans, shares | 97,064 | ||||
Stock issuances under stock incentive plans, amount | 784 | $ 1 | 783 | ||
Stock issued in connection with acquisitions, shares | 555,732 | ||||
Stock issued in connection with acquisitions, amount | 15,127 | $ 5 | 15,122 | ||
Stock-based compensation and related taxes | $ 1,533 | 1,533 | |||
Balance, shares at Dec. 31, 2014 | 75,026,092 | 75,026,092 | |||
Balance at Dec. 31, 2014 | $ 1,028,047 | $ 750 | 708,356 | 301,197 | 17,744 |
Net income | 116,127 | 116,127 | |||
Comprehensive income (loss), accumulated other comprehensive income | (15,755) | (15,755) | |||
Comprehensive income, total | 100,372 | ||||
Cash dividends declared | (79,792) | (79,792) | |||
Stock issuances under stock incentive plans, shares | 62,346 | ||||
Stock issuances under stock incentive plans, amount | 17 | $ 1 | 16 | ||
Stock issued in connection with acquisitions, shares | 997,850 | ||||
Stock issued in connection with acquisitions, amount | 25,939 | $ 10 | 25,929 | ||
Stock-based compensation and related taxes | $ 2,067 | 2,067 | |||
Balance, shares at Dec. 31, 2015 | 76,086,288 | 76,086,288 | |||
Balance at Dec. 31, 2015 | $ 1,076,650 | $ 761 | $ 736,368 | $ 337,532 | $ 1,989 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividends declared per share | $ 1.05 | $ 0.98 | $ 0.60 |
Retained Earnings Substantially Restricted | |||
Cash dividends declared per share | $ 1.05 | $ 0.98 | $ 0.60 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating Activities | ||||
Net income | $ 116,127 | $ 112,755 | $ 95,644 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for loan losses | 2,284 | 1,912 | 6,887 | |
Net amortization of investment securities premiums and discounts | 26,709 | 27,491 | 64,066 | |
Loans held for sale originated or acquired | (888,676) | (669,144) | (918,451) | |
Proceeds from sales of loans held for sale | 925,353 | 705,178 | 1,084,799 | |
Gain on sale of loans | (26,389) | (19,797) | (28,517) | |
(Gain) loss on sale of investments | (19) | 188 | 299 | |
Bargain purchase gain | 0 | (680) | 0 | |
Stock-based compensation expense, net of tax benefits | 1,087 | 859 | 1,011 | |
Excess tax (benefits) deficiencies from stock-based compensation | (102) | (138) | 223 | |
Depreciation of premises and equipment | 14,365 | 12,108 | 10,485 | |
Loss (gain) on sale of other real estate owned and write-downs, net | 938 | (937) | 1,450 | |
Core deposit intangible amortization | 2,964 | 2,811 | 2,401 | |
Deferred tax (benefit) expense | [1] | (4,080) | 5,931 | 4,633 |
Net (increase) decrease in accrued interest receivable | (2,377) | 2,648 | (265) | |
Net (increase) decrease in other assets | (793) | (5,702) | 19,881 | |
Net (decrease) increase in accrued interest payable | (828) | 567 | (1,354) | |
Net increase (decrease) in other liabilities | 4,903 | 6,684 | (9,097) | |
Net cash provided by operating activities | 171,466 | 182,734 | 334,095 | |
Investing Activities | ||||
Sales of available-for-sale securities | 136,777 | 169,372 | 181,971 | |
Maturities, prepayments and calls of available-for-sale securities | 663,828 | 628,238 | 1,682,363 | |
Purchases of available-for-sale securities | (961,224) | (281,332) | (1,426,262) | |
Maturities, prepayments and calls of held-to-maturity securities | 20,997 | 8,930 | 0 | |
Purchases of held-to-maturity securities | (203,554) | (49,691) | 0 | |
Principal collected on loans | 1,737,508 | 1,418,517 | 1,224,222 | |
Loans originated or acquired | (2,112,154) | (1,735,155) | (1,559,353) | |
Net addition of premises and equipment and other real estate owned | (18,224) | (14,389) | (8,977) | |
Proceeds from sale of other real estate owned | 10,278 | 15,714 | 28,535 | |
Net proceeds from sale of non-marketable equity securities | 27,770 | 801 | 583 | |
Net cash received (paid) in acquisitions | 21,427 | (2,112) | 26,155 | |
Net cash (used in) provided by investing activities | (676,571) | 158,893 | 149,237 | |
Financing Activities | ||||
Net increase (decrease) in deposits | 215,650 | 455,604 | (334,672) | |
Net increase in securities sold under agreements to repurchase | 24,951 | 83,713 | 23,886 | |
Net increase (decrease) in short-term Federal Home Loan Bank advances | 140,000 | (421,000) | (204,467) | |
Proceeds from long-term Federal Home Loan Bank advances | 50,000 | 192,500 | 1,147,451 | |
Repayments of long-term Federal Home Loan Bank advances | (94,749) | (314,738) | (1,105,282) | |
Net decrease in other borrowed funds | (566) | (933) | (1,502) | |
Cash dividends paid | (79,456) | (50,944) | (44,232) | |
Excess tax benefits (deficiencies) from stock-based compensation | 102 | 138 | (223) | |
Stock-based compensation activity | 17 | 785 | 4,326 | |
Net cash provided by (used in) financing activities | 255,949 | (54,875) | (514,715) | |
Net (decrease) increase in cash and cash equivalents | (249,156) | 286,752 | (31,383) | |
Cash and cash equivalents at beginning of period | 442,409 | 155,657 | 187,040 | |
Cash and cash equivalents at end of period | 193,253 | 442,409 | 155,657 | |
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid during the period for interest | 30,103 | 26,398 | 30,111 | |
Cash paid during the period for income taxes | 39,622 | 33,343 | 23,576 | |
Supplemental Disclosure of Non-Cash Investing Activities | ||||
Transfer of investment securities from available-for-sale to held-to-maturity | 0 | 484,583 | 0 | |
Sale and refinancing of other real estate owned | 446 | 1,361 | 4,819 | |
Transfer of loans to other real estate owned | 7,989 | 11,493 | 15,266 | |
Fair value of common stock shares issued | 25,939 | 15,127 | 45,033 | |
Cash consideration for outstanding shares | 28,364 | 16,690 | 24,858 | |
Fair value of assets acquired | 434,963 | 349,167 | 630,569 | |
Liabilities assumed | $ 391,592 | $ 316,670 | $ 560,678 | |
[1] | Includes tax benefit of operating loss carryforwards of $391,000, $0 and $0 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the valuation of investment securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. Principles of Consolidation The consolidated financial statements of the Company include the parent holding company, 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. 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 October 2015, the Company completed its acquisition of Cañon Bank Corporation and its wholly-owned subsidiary, Cañon National Bank, a community bank based in Cañon City, Colorado (collectively, “Cañon”). 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 (collectively, “FNBR”). In July 2013, the Company completed its acquisition of North Cascades Bancshares, Inc. and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. In May 2013, the Company acquired Wheatland Bankshares, Inc. and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. The transactions were accounted for using the acquisition method, and their results of operations have been included in the Company’s consolidated financial statements as of the acquisition dates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash held as demand deposits at various banks and the Federal Reserve Bank (“FRB”), interest bearing deposits, federal funds sold, and liquid investments with original maturities of three months or less. The Bank is required to maintain an average reserve balance with either the FRB or in the form of cash on hand. The required reserve balance at December 31, 2015 was $34,309,000 . Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) Investment Securities Debt securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Debt and equity securities held primarily for the purpose of selling in the near term are classified as trading securities and are reported at fair market value, with unrealized gains and losses included in income. Debt and equity securities not classified as held-to-maturity or trading are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of other comprehensive income. Premiums and discounts on investment securities are amortized or accreted into income using a method that approximates the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. The Company does not have any investment securities classified as trading securities. The Company reviews and analyzes the various risks that may be present within the investment portfolio on an ongoing basis, including market risk and credit risk. Market risk is the risk to an entity’s financial condition resulting from adverse changes in the value of its holdings arising from movements in interest rates, foreign exchange rates, equity prices or commodity prices. The Company assesses the market risk of individual securities as well as the investment portfolio as a whole. Credit risk, broadly defined, is the risk that an issuer or counterparty will fail to perform on an obligation. A security is investment grade if the issuer has an adequate capacity to meet its commitment over the expected life of the investment, i.e., the risk of default is low and full and timely repayment of interest and principal is expected. To determine investment grade status for securities, the Company conducts due diligence of the creditworthiness of the issuer or counterparty prior to acquisition and ongoing thereafter consistent with the risk characteristics of the security and the overall risk of the investment portfolio. Credit quality due diligence takes into account the extent to which a security is guaranteed by the U.S. government and other agencies of the U.S. government. The depth of the due diligence is based on the complexity of the structure, the size of the security, and takes into account material positions and specific groups of securities or stratifications for analysis and review of similar risk positions. The due diligence includes consideration of payment performance, collateral adequacy, internal analyses, third party research and analytics, external credit ratings and default statistics. For additional information relating to investment securities, see Note 2. Temporary versus Other-Than-Temporary Impairment The Company assesses individual securities in its investment portfolio for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. An investment is impaired if the fair value of the security is less than its carrying value at the financial statement date. If impairment is determined to be other-than-temporary, an impairment loss is recognized by reducing the amortized cost for the credit loss portion of the impairment with a corresponding charge to earnings for a like amount. In evaluating impaired securities for other-than-temporary impairment losses, management considers 1) the severity and duration of the impairment; 2) the credit ratings of the security; and 3) the overall deal structure, including the Company’s position within the structure, the overall and near term financial performance of the issuer and underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, discounted cash flows and fair value estimates. In evaluating debt securities for other-than-temporary impairment losses, management assesses whether the Company intends to sell the security or if it is more-likely-than-not that the Company will be required to sell the debt security. In so doing, management considers contractual constraints, liquidity, capital, asset/liability management and securities portfolio objectives. If impairment is determined to be other-than-temporary and the Company does not intend to sell a debt security, and it is more-likely-than-not the Company will not be required to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion (noncredit portion) in other comprehensive income, net of tax. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively, as an increase to the carrying amount of the security, over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) If impairment is determined to be other-than-temporary and the Company intends to sell a debt security or it is more-likely-than-not the Company will be required to sell the security before recovery of its cost basis, it recognizes the entire amount of the other-than-temporary impairment in earnings. For debt securities with other-than-temporary impairment, the previous amortized cost basis less the other-than-temporary impairment recognized in earnings shall be the new amortized cost basis of the security. In subsequent periods, the Company accretes into interest income the difference between the new amortized cost basis and cash flows expected to be collected prospectively over the life of the debt security. Loans Held for Sale Loans held for sale generally consist of long-term, fixed rate, conforming, single-family residential real estate loans and are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized by charges to non-interest income. A sale is recognized when the Company surrenders control of the loan and consideration, is received in exchange. A gain is recognized in non-interest income to the extent the sales price exceeds the carrying value of the sold loan. Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. Anticipated prepayments are not included when applying the interest method. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR: • reduction of the stated interest rate for the remaining term of the debt; • extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and • reduction of the face amount of the debt as stated in the debt agreements. The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example: • analysis of global, i.e., aggregate debt service for total debt obligations; • assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and • loan structures and related covenants. For additional information relating to loans, see Note 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. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) Commercial . Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity . Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 15 years. Other Consumer . The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following: • changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; • changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; • changes in the nature and volume of the portfolio and in the terms of loans; • changes in experience, ability, and depth of lending management and other relevant staff; • changes in the volume and severity of past due and nonaccrual loans; • changes in the quality of the Company’s loan review system; • changes in the value of underlying collateral for collateral-dependent loans; • the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged off as a reduction of the ALLL and recoveries of amounts previously charged off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. Premises and Equipment Premises and equipment are accounted for at cost less depreciation. Depreciation is computed on a straight-line method over the estimated useful lives or the term of the related lease. The estimated useful life for office buildings is 15 - 40 years and the estimated useful life for furniture, fixtures, and equipment is 3 - 10 years. Interest is capitalized for any significant building projects. For additional information relating to premises and equipment, see Note 4. Leases The Company leases certain land, premises and equipment from third parties under operating and capital leases. The lease payments for operating lease agreements are recognized on a straight-line basis. The present value of the future minimum rental payments for capital leases is recognized as an asset when the lease is formed. Lease improvements incurred at the inception of the lease are recorded as an asset and depreciated over the initial term of the lease and lease improvements incurred subsequently are depreciated over the remaining term of the lease. For additional information relating to leases, see Note 4. Other Real Estate Owned Property acquired by foreclosure or deed-in-lieu of foreclosure is initially recorded at fair value, less estimated selling cost, at acquisition date (i.e., cost of the property). The Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon the occurrence of either the Company obtaining legal title to the property or the borrower conveying all interest in the property through a deed-in-lieu or similar agreement. Fair value is determined as the amount that could be reasonably expected in a current sale between a willing buyer and a willing seller in an orderly transaction between market participants at the measurement date. Subsequent to the initial acquisition, if the fair value of the asset, less estimated selling cost, is less than the cost of the property, a loss is recognized in other expense and the asset carrying value is reduced. Gain or loss on disposition of other real estate owned (“OREO”) is recorded in non-interest income or non-interest expense, respectively. In determining the fair value of the properties on the date of transfer and any subsequent estimated losses of net realizable value, the fair value of other real estate acquired by foreclosure or deed-in-lieu of foreclosure is determined primarily based upon appraisal or evaluation of the underlying property value. Long-lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is deemed impaired if the sum of the expected future cash flows is less than the carrying amount of the asset. If impaired, an impairment loss is recognized in other expense to reduce the carrying value of the asset to fair value. At December 31, 2015 and 2014 , no long-lived assets were considered impaired. Business Combinations and Intangible Assets Acquisition accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets. Goodwill is recorded if the purchase price exceeds the net fair value of assets acquired and a bargain purchase gain is recorded in other income if the net fair value of assets acquired exceeds the purchase price. Adjustment of the allocated purchase price may be related to fair value estimates for which all information has not been obtained of the acquired entity known or discovered during the allocation period, the period of time required to identify and measure the fair values of the assets and liabilities acquired in the business combination. The allocation period is generally limited to one year following consummation of a business combination. Core deposit intangible represents the intangible value of depositor relationships resulting from deposit liabilities assumed in acquisitions and is amortized using an accelerated method based on an estimated runoff of the related deposits. The core deposit intangible is evaluated for impairment and recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. For additional information relating to core deposit intangibles, see Note 5. The Company tests goodwill for impairment at the reporting unit level annually during the third quarter. The Company has identified that each of the bank divisions are reporting units (i.e., components of the Glacier Bank operating segment) given that each division has a separate management team that regularly reviews its respective division financial information; however, the reporting units are aggregated into a single reporting unit due to the reporting units having similar economic characteristics. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) The goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. Examples of events and circumstances that could trigger the need for interim impairment testing include: • a significant change in legal factors or in the business climate; • an adverse action or assessment by a regulator; • unanticipated competition; • a loss of key personnel; • a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; and • the testing for recoverability of a significant asset group within a reporting unit. For the goodwill impairment assessment, the Company has the option, prior to the two-step process, to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. The Company opted to bypass the qualitative assessment for its 2015 and 2014 annual goodwill impairment testing and proceed directly to the two-step goodwill impair |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 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: December 31, 2015 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 47,868 15 (432 ) 47,451 U.S. government sponsored enterprises 93,230 100 (163 ) 93,167 State and local governments 856,738 34,159 (5,878 ) 885,019 Corporate bonds 386,629 611 (3,077 ) 384,163 Residential mortgage-backed securities 1,203,548 6,180 (8,768 ) 1,200,960 Total available-for-sale 2,588,013 41,065 (18,318 ) 2,610,760 Held-to-maturity State and local governments 702,072 31,863 (4,422 ) 729,513 Total held-to-maturity 702,072 31,863 (4,422 ) 729,513 Total investment securities $ 3,290,085 72,928 (22,740 ) 3,340,273 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 Note 2. Investment Securities (continued) The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity securities by contractual maturity at December 31, 2015 . Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties. December 31, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 140,703 141,230 — — Due after one year through five years 486,235 484,467 — — Due after five years through ten years 128,158 131,883 25,073 25,605 Due after ten years 629,369 652,220 676,999 703,908 1,384,465 1,409,800 702,072 729,513 Residential mortgage-backed securities 1 1,203,548 1,200,960 — — Total $ 2,588,013 2,610,760 702,072 729,513 ________ 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: Years ended (Dollars in thousands) December 31, December 31, December 31, Available-for-sale Proceeds from sales and calls of investment securities $ 167,660 219,849 181,971 Gross realized gains 1 1,877 501 3,723 Gross realized losses 1 (1,808 ) (705 ) (4,022 ) Held-to-maturity Proceeds from calls of investment securities 20,997 8,930 — Gross realized gains 1 50 22 — Gross realized losses 1 (100 ) (6 ) — __________ 1 The gain or loss on the sale or call of each investment security is determined by the specific identification method. At December 31, 2015 and 2014 , the Company had investment securities with carrying values of $1,824,819,000 and $1,673,263,000 , respectively, pledged as collateral for FHLB advances, FRB discount window borrowings, repurchase agreements, interest rate swap agreements and deposits of several local government units. Note 2. Investment Securities (continued) Investment securities with an unrealized loss position are summarized as follows: December 31, 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 $ 42,493 (432 ) 2 — 42,495 (432 ) U.S. government sponsored enterprises 60,010 (163 ) — — 60,010 (163 ) State and local governments 102,422 (1,629 ) 115,943 (4,249 ) 218,365 (5,878 ) Corporate bonds 228,258 (1,812 ) 13,962 (1,265 ) 242,220 (3,077 ) Residential mortgage-backed securities 730,412 (7,226 ) 53,021 (1,542 ) 783,433 (8,768 ) Total available-for-sale $ 1,163,595 (11,262 ) 182,928 (7,056 ) 1,346,523 (18,318 ) Held-to-maturity State and local governments $ 42,322 (594 ) 81,709 (3,828 ) 124,031 (4,422 ) Total held-to-maturity $ 42,322 (594 ) 81,709 (3,828 ) 124,031 (4,422 ) 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 December 31, 2015 and 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 December 31, 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 | 12 Months Ended |
Dec. 31, 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: At or for the Year ended (Dollars in thousands) December 31, December 31, Residential real estate loans $ 688,912 611,463 Commercial loans Real estate 2,633,953 2,337,548 Other commercial 1,099,564 925,900 Total 3,733,517 3,263,448 Consumer and other loans Home equity 420,901 394,670 Other consumer 235,351 218,514 Total 656,252 613,184 Loans receivable 1 5,078,681 4,488,095 Allowance for loan and lease losses (129,697 ) (129,753 ) Loans receivable, net $ 4,948,984 4,358,342 Weighted-average interest rate on loans (tax-equivalent) 4.84 % 4.86 % __________ 1 Includes net deferred fees, costs, premiums and discounts of $15,529,000 and $13,710,000 at December 31, 2015 and 2014 , respectively. The following tables summarize the activity in the ALLL by portfolio segment: Year ended December 31, 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 2,284 640 (696 ) 3,030 (480 ) (210 ) Charge-offs (7,002 ) (985 ) (1,920 ) (2,322 ) (809 ) (966 ) Recoveries 4,662 92 2,694 926 324 626 Balance at end of period $ 129,697 14,427 67,877 32,525 8,998 5,870 Year ended December 31, 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 1,912 716 (2,877 ) 3,708 1,254 (889 ) Charge-offs (7,603 ) (431 ) (1,802 ) (3,058 ) (1,038 ) (1,274 ) Recoveries 5,093 328 2,146 1,611 448 560 Balance at end of period $ 129,753 14,680 67,799 30,891 9,963 6,420 Note 3. Loans Receivable, Net (continued) Year ended December 31, 2013 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,854 15,482 74,398 21,567 10,659 8,748 Provision for loan losses 6,887 (921 ) (3,670 ) 10,271 868 339 Charge-offs (13,643 ) (793 ) (3,736 ) (4,671 ) (2,594 ) (1,849 ) Recoveries 6,253 299 3,340 1,463 366 785 Balance at end of period $ 130,351 14,067 70,332 28,630 9,299 8,023 The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment: December 31, 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 $ 8,124 782 1,629 5,277 64 372 Collectively evaluated for impairment 121,573 13,645 66,248 27,248 8,934 5,498 Total allowance for loan and lease losses $ 129,697 14,427 67,877 32,525 8,998 5,870 Loans receivable Individually evaluated for impairment $ 140,773 20,767 85,845 23,874 6,493 3,794 Collectively evaluated for impairment 4,937,908 668,145 2,548,108 1,075,690 414,408 231,557 Total loans receivable $ 5,078,681 688,912 2,633,953 1,099,564 420,901 235,351 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 Substantially all of the Company’s loans receivable are with customers in the Company’s geographic market areas. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ ability to honor their obligations is dependent upon the economic performance in the Company’s market areas. The Company is subject to regulatory limits for the amount of loans to any individual borrower and the Company is in compliance with this regulation as of December 31, 2015 and 2014 . No borrower had outstanding loans or commitments exceeding 10 percent of the Company’s consolidated stockholders’ equity as of December 31, 2015 . At December 31, 2015 , the Company had $3,298,198,000 in variable rate loans and $1,780,483,000 in fixed rate loans. At December 31, 2015 , 2014 , and 2013 , loans sold and serviced for others were $128,499,000 , $133,768,000 , and $148,376,000 , respectively. At December 31, 2015 , the Company had loans of $2,899,827,000 pledged as collateral for FHLB advances and FRB discount window. There were no significant purchases or sales of portfolio loans during 2015 , 2014 and 2013 . Note 3. Loans Receivable, Net (continued) The Company has entered into transactions with its executive officers and directors and their affiliates. The aggregate amount of loans outstanding to such related parties at December 31, 2015 and 2014 was $57,764,000 and $55,427,000 , respectively. During 2015 , new loans to such related parties were $10,435,000 and repayments were $8,098,000 . In management’s opinion, such loans were made in the ordinary course of business and were made on substantially the same terms as those prevailing at the time for comparable transaction with other persons. The following tables disclose information related to impaired loans by portfolio segment: At or for the Year ended December 31, 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 $ 34,683 8,253 12,554 11,923 102 1,851 Unpaid principal balance 36,157 9,198 12,581 12,335 109 1,934 Specific valuation allowance 8,124 782 1,629 5,277 64 372 Average balance 36,176 6,393 15,827 11,768 426 1,762 Loans without a specific valuation allowance Recorded balance $ 106,090 12,514 73,291 11,951 6,391 1,943 Unpaid principal balance 132,718 13,969 94,028 15,539 7,153 2,029 Average balance 116,356 13,615 78,684 15,479 6,350 2,228 Total Recorded balance $ 140,773 20,767 85,845 23,874 6,493 3,794 Unpaid principal balance 168,875 23,167 106,609 27,874 7,262 3,963 Specific valuation allowance 8,124 782 1,629 5,277 64 372 Average balance 152,532 20,008 94,511 27,247 6,776 3,990 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 years ended December 31, 2015 , 2014 , and 2013 was not significant. Note 3. Loans Receivable, Net (continued) The following tables present an aging analysis of the recorded investment in loans by portfolio segment: December 31, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 15,801 4,895 4,393 3,564 1,601 1,348 Accruing loans 60-89 days past due 3,612 961 1,841 286 280 244 Accruing loans 90 days or more past due 2,131 — 231 1,820 15 65 Non-accrual loans 51,133 8,073 28,819 7,691 6,022 528 Total past due and non-accrual loans 72,677 13,929 35,284 13,361 7,918 2,185 Current loans receivable 5,006,004 674,983 2,598,669 1,086,203 412,983 233,166 Total loans receivable $ 5,078,681 688,912 2,633,953 1,099,564 420,901 235,351 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 Interest income that would have been recorded on non-accrual loans if such loans had been current for the entire period would have been approximately $2,471,000 , $3,005,000 , and $4,122,000 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. 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: Year ended December 31, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 64 3 25 22 1 13 Pre-modification recorded balance $ 22,316 2,259 8,877 10,545 137 498 Post-modification recorded balance $ 23,110 2,203 9,927 10,325 157 498 TDRs that subsequently defaulted Number of loans 7 1 1 4 — 1 Recorded balance $ 2,556 1,947 78 529 — 2 Note 3. Loans Receivable, Net (continued) Year ended December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 51 — 18 24 6 3 Pre-modification recorded balance $ 37,781 — 21,760 12,522 3,385 114 Post-modification recorded balance $ 37,075 — 21,803 11,884 3,274 114 TDRs that subsequently defaulted Number of loans 5 — 2 1 2 — Recorded balance $ 4,453 — 927 693 2,833 — Year ended December 31, 2013 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 63 9 21 23 2 8 Pre-modification recorded balance $ 29,046 1,907 20,334 6,087 147 571 Post-modification recorded balance $ 29,359 2,293 20,334 6,087 147 498 TDRs that subsequently defaulted Number of loans 5 1 1 3 — — Recorded balance $ 849 265 79 505 — — The modifications for the TDRs that occurred during the years ended December 31, 2015 , 2014 and 2013 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 $8,893,000 , $12,674,000 and $18,345,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively, for which OREO was received in full or partial satisfaction of the loans. The majority of such TDRs were in commercial real estate for the years ended December 31, 2015 , 2014 and 2013 . At December 31, 2015 and 2014 , the Company had $3,253,000 and $698,000 , respectively, of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process. At December 31, 2015 and 2014 , the Company had $1,496,000 and $2,322,000 , respectively, of OREO secured by residential real estate properties. There were $2,803,000 and $4,263,000 of additional unfunded commitments on TDRs outstanding at December 31, 2015 and 2014 , respectively. The amount of charge-offs on TDRs during 2015 , 2014 and 2013 was $1,310,000 , $1,361,000 and $1,945,000 , respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment, net of accumulated depreciation, consist of the following: (Dollars in thousands) December 31, 2015 December 31, 2014 Land $ 30,108 27,605 Office buildings and construction in progress 187,787 172,544 Furniture, fixtures and equipment 78,803 70,622 Leasehold improvements 8,028 7,813 Accumulated depreciation (110,696 ) (99,409 ) Net premises and equipment $ 194,030 179,175 Depreciation expense for the years ended December 31, 2015 , 2014 , and 2013 was $14,365,000 , $12,108,000 , and $10,485,000 , respectively. The Company leases certain land, premises and equipment from third parties under operating and capital leases. Total rent expense for the years ended December 31, 2015 , 2014 , and 2013 was $3,137,000 , $2,786,000 , and $2,912,000 , respectively. Amortization of building capital lease assets is included in depreciation. The Company has entered into lease transactions with related parties. Rent expense with such related parties for the years ended December 31, 2015 , 2014 , and 2013 was $150,000 , $146,000 , and $142,000 , respectively. The total future minimum rental commitments required under operating and capital leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2015 are as follows: (Dollars in thousands) Capital Leases Operating Leases Total Years ending December 31, 2016 $ 92 2,443 2,535 2017 92 2,132 2,224 2018 92 1,877 1,969 2019 92 1,682 1,774 2020 92 1,160 1,252 Thereafter 11 3,202 3,213 Total minimum lease payments 471 12,496 12,967 Less: Amount representing interest 64 Present value of minimum lease payments 407 Less: Current portion of obligations under capital leases 72 Long-term portion of obligations under capital leases $ 335 |
Other Intangible Assets and Goo
Other Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets and Goodwill | Other Intangible Assets and Goodwill The following table sets forth information regarding the Company’s core deposit intangibles: At or for the Years ended (Dollars in thousands) December 31, December 31, December 31, Gross carrying value $ 38,527 32,056 27,857 Accumulated amortization (23,972 ) (21,156 ) (18,345 ) Net carrying value $ 14,555 10,900 9,512 Aggregate amortization expense $ 2,964 2,811 2,401 Weighted-average amortization period 9.7 years Estimated amortization expense for the years ending December 31, 2016 $ 2,923 2017 2,027 2018 1,598 2019 1,512 2020 1,465 Core deposit intangibles increased $6,619,000 , $4,199,000 and $5,739,000 during 2015 , 2014 and 2013 , respectively, due to acquisitions. For additional information relating to acquisitions, see Note 22. The following table discloses the changes in the carrying value of goodwill: Years ended (Dollars in thousands) December 31, December 31, December 31, Net carrying value at beginning of period $ 129,706 129,706 106,100 Acquisitions 10,932 — 23,606 Net carrying value at end of period $ 140,638 129,706 129,706 The gross carrying value of goodwill and the accumulated impairment charge consists of the following: (Dollars in thousands) December 31, December 31, Gross carrying value $ 180,797 169,865 Accumulated impairment charge 1 (40,159 ) (40,159 ) Net carrying value $ 140,638 129,706 __________ 1 A goodwill impairment charge was recognized in 2011 and was due to high levels of volatility and dislocation in bank stock prices nationwide. Note 5. Other Intangible Assets and Goodwill (continued) The Company’s first step in evaluating goodwill for possible impairment is a control premium analysis. The analysis first calculates the market capitalization and then adjusts such value for a control premium range which results in an implied fair value. The control premium range is determined based on historical control premiums for acquisitions that are comparable to the Company and is obtained from an independent third party. The calculated implied fair value is then compared to the book value to determine whether the Company needs to proceed to step two of the goodwill impairment assessment. The Company performed its annual goodwill impairment test during the third quarter of 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. In recognition there were no events or circumstances that occurred during the fourth quarter of 2015 that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value, the Company did not perform interim testing at December 31, 2015. 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. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 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. Note 6. Variable Interest Entities (continued) 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. December 31, 2015 December 31, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC Assets Loans receivable $ 57,126 — 36,077 — Premises and equipment, net — 13,503 — 13,106 Accrued interest receivable 117 — 116 — Other assets 887 542 616 258 Total assets $ 58,130 14,045 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 139 — 185 — Total liabilities $ 4,698 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 years ended December 31, 2015 and 2014 . The net investment loss was included in income before income taxes on the Company’s statements of operations. Years ended December 31, 2015 December 31, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC VIE loss $ (1,286 ) (974 ) (879 ) (1,082 ) Federal income tax credits 2,138 1,175 1,744 1,270 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. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Deposits Time deposits that meet or exceed the Federal Deposit Insurance Corporation Insurance limit of $250,000 at December 31, 2015 and 2014 were $258,573,000 and $314,752,000 , respectively. The scheduled maturities of time deposits are as follows: (Dollars in thousands) Amount Years ending December 31, 2016 $ 775,227 2017 149,999 2018 56,554 2019 40,696 2020 36,674 Thereafter 1,500 $ 1,060,650 The Company reclassified $2,966,000 and $4,385,000 of overdraft demand deposits to loans as of December 31, 2015 and 2014 , respectively. The Company has entered into deposit transactions with its executive officers, directors and their affiliates. The aggregate amount of deposits with such related parties at December 31, 2015 and 2014 was $15,730,000 and $16,287,000 , respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company’s repurchase agreements totaled $423,414,000 and $397,107,000 at December 31, 2015 and 2014 , respectively, and are secured by investment securities with carrying values of $446,838,000 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 category of collateral: December 31, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total U.S. government sponsored enterprises $ 12,507 — 12,507 Residential mortgage-backed securities 408,460 2,447 410,907 Total $ 420,967 2,447 423,414 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 Note 8. Borrowings (continued) The Company’s FHLB advances bear a fixed rate of interest and are subject to restrictions or penalties in the event of prepayment. The advances are collateralized by specifically pledged loans and investment securities, FHLB stock owned by the Company, and a blanket assignment of the unpledged qualifying loans and investments. The scheduled maturities of FHLB advances consist of the following: December 31, 2015 December 31, 2014 (Dollars in thousands) Amount Weighted Rate Amount Weighted Rate Maturing within one year $ 185,091 1.02 % $ 93,979 2.81 % Maturing one year through two years 179 4.19 % 45,042 2.99 % Maturing two years through three years 70,597 1.01 % — — % Maturing three years through four years 167 3.79 % 20,250 2.83 % Maturing four years through five years 945 4.98 % 174 4.74 % Thereafter 137,152 3.12 % 137,499 3.12 % Total $ 394,131 1.76 % $ 296,944 2.98 % With respect to $200,000,000 of FHLB advances at December 31, 2015 , FHLB holds put options that will be exercised on the quarterly measurement date when 3-month LIBOR is 8 percent or greater. The FHLB put option maturities range from 2016 to 2021 and the interest rates range from 2.73 percent to 3.43 percent . The Company’s remaining borrowings consisted of capital lease obligations and other debt obligations through consolidation of certain VIEs. At December 31, 2015 , the Company had $255,000,000 in unsecured lines of credit which are typically renewed on an annual basis with various correspondent entities. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Subordinated Debentures | Subordinated Debentures Trust preferred securities were issued by the Company’s trust subsidiaries, the common stock of which is wholly-owned by the Company, in conjunction with the Company issuing subordinated debentures to the trust subsidiaries. The terms of the subordinated debentures are the same as the terms of the trust preferred securities. The Company guaranteed the payment of distributions and payments for redemption or liquidation of the trust preferred securities to the extent of funds held by the trust subsidiaries. The obligations of the Company under the subordinated debentures together with the guarantee and other back-up obligations, in the aggregate, constitute a full and unconditional guarantee by the Company of the obligations of all trusts under the trust preferred securities. The trust preferred securities are subject to mandatory redemption upon repayment of the subordinated debentures at their stated maturity date or the earlier redemption in an amount equal to their liquidation amount plus accumulated and unpaid distributions to the date of redemption. Interest distributions are payable quarterly. The Company may defer the payment of interest at any time for a period not exceeding 20 consecutive quarters provided that the deferral period does not extend past the stated maturity. During any such deferral period, distributions on the trust preferred securities will also be deferred and the Company’s ability to pay dividends on its common shares will be restricted. Subject to prior approval by the FRB, the trust preferred securities may be redeemed at par prior to maturity at the Company’s option on or after the redemption date. All of the Company’s trust preferred securities have reached the redemption date and could be redeemed at the Company’s option. The trust preferred securities may also be redeemed at any time in whole (but not in part) for the Trusts in the event of unfavorable changes in laws or regulations that result in 1) subsidiary trusts becoming subject to federal income tax on income received on the subordinated debentures; 2) interest payable by the Company on the subordinated debentures becoming non-deductible for federal tax purposes; 3) the requirement for the trusts to register under the Investment Company Act of 1940, as amended; or 4) loss of the ability to treat the trust preferred securities as Tier 1 capital under the FRB capital adequacy guidelines. For regulatory capital purposes, the FRB has allowed bank holding companies to continue to include trust preferred securities in Tier 1 capital up to a certain limit. Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) require the FRB to exclude trust preferred securities from Tier 1 capital, but a permanent grandfather provision applicable to the Company permits bank holding companies with consolidated assets of less than $15 billion to continue counting existing trust preferred securities as Tier 1 capital until they mature, even after the Company’s total assets exceed $15 billion . All of the Company’s trust preferred securities qualified as Tier 1 capital instruments at December 31, 2015 . For additional information on regulatory capital, see Note 11. Note 9. Subordinated Debentures (continued) The terms of the subordinated debentures, arranged by maturity date, are reflected in the table below. The amounts include fair value adjustments from acquisitions. December 31, 2015 Variable Rate Structure Maturity Date (Dollars in thousands) Balance Rate First Company Statutory Trust 2001 $ 3,144 3.629 % 3 mo LIBOR plus 3.30% 07/31/2031 First Company Statutory Trust 2003 2,316 3.576 % 3 mo LIBOR plus 3.25% 03/26/2033 Glacier Capital Trust II 46,393 3.071 % 3 mo LIBOR plus 2.75% 04/07/2034 Citizens (ID) Statutory Trust I 5,155 3.176 % 3 mo LIBOR plus 2.65% 06/17/2034 Glacier Capital Trust III 36,083 1.611 % 3 mo LIBOR plus 1.29% 04/07/2036 Glacier Capital Trust IV 30,928 2.082 % 3 mo LIBOR plus 1.57% 09/15/2036 Bank of the San Juans Bancorporation Trust I 1,829 2.234 % 3 mo LIBOR plus 1.82% 03/01/2037 $ 125,848 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company is exposed to certain risk relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s forecasted variable rate borrowings. The Company recognizes interest rate swaps as either assets or liabilities at fair value in the statements of financial condition, after taking into account the effects of bilateral collateral and master netting agreements. These agreements allow the Company to settle all interest rate swap agreements held with a single counterparty on a net basis, and to offset net interest rate swap derivative positions with related collateral, where applicable. The interest rate swaps on variable rate borrowings were designated as cash flow hedges and were over-the-counter contracts. The contracts were entered into by the Company with a single counterparty, and the specific terms and conditions were negotiated, including forecasted notional amounts, interest rates and maturity dates. The Company is exposed to credit-related losses in the event of nonperformance by the counterparty to the agreements. The Company controls the counterparty credit risk by maintaining bilateral collateral agreements and through monitoring policy and procedures. The Company only conducts business with primary dealers and believes that the credit risk inherent in these contracts was not significant. The Company’s interest rate swap derivative financial instruments as of December 31, 2015 are as follows: (Dollars in thousands) Forecasted Notional Amount Variable Interest Rate 1 Fixed Interest Rate 1 Payment Term 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. 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. Note 10. Derivatives and Hedging Activities (continued) The interest rate swaps with the $160,000,000 and $100,000,000 notional amounts began their payment terms in October 2014 and November 2015, respectively. The Company designated wholesale deposits as the cash flow hedge and these deposits were determined to be fully effective during the current and prior year. As such, no amount of ineffectiveness has been included in the Company’s statements of operations for the years ended December 31, 2015 and 2014 . Therefore, the aggregate fair value of the interest rate swaps was recorded in other liabilities with changes recorded in other comprehensive income. The Company expects the hedges to remain highly effective during the remaining terms of the interest rate swaps. Interest expense recorded on the interest rate swaps totaled $5,695,000 and $1,066,000 during 2015 and 2014 , respectively, and is reported as a component of interest expense on deposits. Unless the interest rate swaps are terminated during the next year, the Company expects $7,903,000 of the unrealized loss reported in other comprehensive income at December 31, 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: Years ended (Dollars in thousands) December 31, December 31, December 31, Interest rate swaps Amount of (loss) gain recognized in OCI (effective portion) $ (7,857 ) (19,557 ) 18,728 Amount of loss reclassified from OCI to interest expense (5,025 ) (993 ) — 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. December 31, 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 $ 19,499 — 19,499 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 $25,730,000 at December 31, 2015 . There was $0 collateral pledged from the counterparty to the Company as of December 31, 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. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital The Federal Reserve has adopted capital adequacy guidelines that are used to assess the adequacy of capital in supervising a bank holding company. Prior to 2015, the regulatory capital requirements effective for the Company followed the Capital Accord of the Basel Committee on Banking Supervision (“Basel I”). The federal banking agencies implemented final rules (the “Final Rules”) to establish a new comprehensive regulatory capital framework with a phase-in period beginning on January 1, 2015 and ending on January 1, 2019. The Final Rules implemented the third installment of the Basel Accords (“Basel III”) regulatory capital reforms and changes required by the Dodd-Frank Act and substantially amend the regulatory risk-based capital rules applicable to the Company. Basel III redefines the regulatory capital elements and minimum capital ratios, introduces regulatory capital buffers above those minimums, revises rules for calculating risk-weighted assets and adds a new component of Tier 1 capital called Common Equity Tier 1, which includes common equity and retained earnings and excludes preferred equity. Note 11. Regulatory Capital (continued) Prompt corrective action regulations provide the following classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. If undercapitalized, capital distributions (including payment of a dividend) are generally restricted, as is paying management fees to its bank holding company. Failure to meet minimum capital requirements set forth in the table below can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial condition. The Company’s and Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. At December 31, 2015 and 2014 , the most recent regulatory notifications categorized the Company and Bank as well capitalized under the regulatory framework for prompt corrective action. To be well capitalized, the Bank must maintain minimum total capital, Tier 1 capital, Common Tier 1 capital and Tier 1 Leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2015 that management believes have changed the Company’s or Bank’s risk-based capital category. The following tables illustrate the FRB’s adequacy guidelines and the Company’s and the Bank’s compliance with those guidelines: December 31, 2015 Actual Required for Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 1,131,460 17.17 % $ 527,160 8.00 % N/A N/A Glacier Bank 1,093,669 16.66 % 525,228 8.00 % 656,535 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated $ 1,048,505 15.91 % $ 395,370 6.00 % N/A N/A Glacier Bank 1,010,981 15.40 % 393,921 6.00 % 525,228 8.00 % Common Equity Tier 1 (to risk-weighted assets) Consolidated $ 926,523 14.06 % $ 296,528 4.50 % N/A N/A Glacier 1,010,981 15.40 % 295,441 4.50 % 426,748 6.50 % Tier 1 capital (to average assets) Consolidated $ 1,048,505 12.01 % $ 349,066 4.00 % N/A N/A Glacier Bank 1,010,981 11.66 % 346,715 4.00 % $ 433,394 5.00 % December 31, 2014 Actual Required for Capital Adequacy Purposes To Be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 1,065,282 18.93 % $ 450,240 8.00 % $ 562,800 10.00 % Glacier Bank 1,023,669 18.25 % 448,739 8.00 % 560,924 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated $ 994,197 17.67 % $ 225,120 4.00 % $ 337,680 6.00 % Glacier Bank 952,815 16.99 % 224,370 4.00 % 336,554 6.00 % Tier 1 capital (to average assets) Consolidated $ 994,197 12.45 % $ 319,505 4.00 % N/A N/A Glacier Bank 952,815 12.03 % 316,938 4.00 % $ 396,173 5.00 % __________ N/A - Not applicable Current guidance from the Federal Reserve provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. The Bank is also subject to Montana state law and cannot declare a dividend greater than the previous two years’ net earnings without providing notice to the state. |
Stock-based Compensation Plan
Stock-based Compensation Plan | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation Plan | Stock-based Compensation Plan The Company has two stock-based compensation plans in effect at December 31, 2015 . The 2005 Stock Incentive Plan expired in April 2015, but still has non-vested restricted stock awards at December 31, 2015 . The 2015 Stock Incentive Plan provides incentives and awards to select employees and directors of the Company and permits the granting of stock options, share appreciation rights, restricted shares, restricted share units, unrestricted shares and performance awards. At December 31, 2015 , the number of shares available to award to employees and directors under the 2015 Stock Incentive Plan was 2,485,765 . Stock Options The Company granted stock options to certain full-time employees and directors of the Company under the 2005 Stock Incentive Plan. There were no stock options granted during 2015, 2014 or 2013. Compensation expense and the recognized income tax benefit related to stock options for the years ended December 31, 2015 , 2014 and 2013 was not significant. There was no unrecognized compensation cost related to stock options as of December 31, 2015 . The total intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 was $13,000 , $778,000 and $1,907,000 , respectively, and the income tax benefit related to these exercises was $5,000 , $302,000 and $742,000 . Total cash received from options exercised during the years ended December 31, 2015 , 2014 and 2013 was $17,000 , $871,000 and $4,327,000 . Changes in shares granted for stock options for the year ended December 31, 2015 are summarized as follows: Options Weighted- Average Exercise Price Outstanding at December 31, 2014 1,000 $ 16.73 Exercised (1,000 ) 16.73 Forfeited or expired — — Outstanding at December 31, 2015 — — Exercisable at December 31, 2015 — — Restricted Stock Awards The Company has awarded restricted stock to select employees and directors under the 2005 and 2015 Stock Incentive Plans. Common stock is issued as vesting restrictions lapse, which may be immediately or according to the terms of a vesting schedule. Restricted stock awards may not be sold, pledged or otherwise transferred until restrictions have lapsed. Under the 2005 Stock Incentive Plan, the recipient does not have the right to vote until the restricted stock award has vested but does have the right to receive dividends. Under the 2015 Stock Incentive Plan, the recipient does not have the right to vote or to receive dividends until the restricted stock award has vested. The fair value of the restricted stock awarded is the closing price of the Company’s common stock on the award date. Compensation expense related to restricted stock awards for the years ended December 31, 2015 , 2014 and 2013 was $2,470,000 , $1,603,000 and $768,000 , respectively, and the recognized income tax benefit related to this expense was $957,000 , $622,000 and $299,000 . As of December 31, 2015 , total unrecognized compensation expense of $2,965,000 related to restricted stock awards is expected to be recognized over a weighted-average period of 2.0 years . The fair value of restricted stock awards that vested during the years ended December 31, 2015 , 2014 and 2013 was $1,761,000 , $953,000 and $197,000 , respectively, and the income tax benefit related to these awards was $795,000 , $532,000 and $77,000 , respectively. Upon vesting of restricted stock awards, the shares are issued from the Company’s authorized stock balance. Note 12. Stock-based Compensation Plan (continued) The following table summarizes the restricted stock award activity for the year ended December 31, 2015 : Restricted Stock Weighted- Average Grant Date Fair Value Non-vested at December 31, 2014 162,053 $ 22.04 Granted 133,414 25.35 Vested (81,294 ) 21.66 Forfeited (8,184 ) 24.36 Non-vested at December 31, 2015 205,989 24.24 The average remaining contractual term on non-vested restricted stock awards at December 31, 2015 is eleven months . The aggregate intrinsic value of the non-vested restricted stock awards at December 31, 2015 was $5,465,000 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company provides its employees with a comprehensive benefit program, including health, dental and vision insurance, life and accident insurance, long-term disability coverage, vacation and sick leave, 401(k) plan, profit sharing plan and a stock-based compensation plan. The Company has elected to self-insure certain costs related to employee health, dental and vision benefit programs. Costs resulting from noninsured losses are expensed as incurred. The Company has purchased insurance that limits its exposure on an individual claim basis for the employee health benefit programs. 401(k) Plan and Profit Sharing Plan The Company’s 401(k) plan and profit sharing plan have safe harbor and employer discretionary components. To be considered eligible for the 401(k) and safe harbor components of the profit sharing plan, an employee must be 21 years of age and employed for three full months. Employees are eligible to participate in the 401(k) plan the first day of the month once they have met the eligibility requirements. To be considered eligible for the employer discretionary contribution of the profit sharing plan, an employee must be 21 years of age, worked one full calendar quarter, worked 501 hours in the plan year and be employed as of the last day of the plan year. Participants are at all times fully vested in all contributions. The profit sharing plan contributions consists of a 3 percent non-elective safe harbor contribution fully funded by the Company and an employer discretionary contribution. The employer discretionary contribution depends on the Company’s profitability. The total profit sharing plan expense for the years ended December 31, 2015 , 2014 , and 2013 was $8,017,000 , $7,107,000 and $5,862,000 respectively. The 401(k) plan allows eligible employees to contribute up to 60 percent of their eligible annual compensation up to the limit set annually by the Internal Revenue Service (“IRS”). The Company matches an amount equal to 50 percent of the first 6 percent of an employee’s contribution. The Company’s contribution to the 401(k) for the years ended December 31, 2015 , 2014 and 2013 was $2,629,000 , $2,246,000 , and $1,935,000 , respectively. Deferred Compensation Plans The Company has non-funded deferred compensation plans for directors, senior officers and certain nonemployee service providers. The plans provide for participants’ elective deferral of cash payments of up to 50 percent of a participants’ salary and 100 percent of bonuses and directors fees. The total amount deferred for the plans was $720,000 , $591,000 , and $376,000 , for the years ending December 31, 2015 , 2014 , and 2013 , respectively. The participant receives an earnings credit at a rate equal to 50 percent of the Company’s return on average equity. The total earnings for the years ended December 31, 2015 , 2014 , and 2013 for the plans was $386,000 , $369,000 and $515,000 , respectively. In connection with several acquisitions, the Company assumed the obligations of deferred compensation plans for certain key employees. As of December 31, 2015 and 2014 , the liability related to the obligations was $11,971,000 and $11,165,000 , respectively, and was included in other liabilities. The total earnings for the years ended December 31, 2015 , 2014 , and 2013 for the acquired plans was insignificant. Note 13. Employee Benefit Plans (continued) Supplemental Executive Retirement Plan The Company has a Supplemental Executive Retirement Plan (“SERP”) which is intended to supplement payments due to participants upon retirement under the Company’s other qualified plans. The Company credits the participant’s account on an annual basis for an amount equal to employer contributions that would have otherwise been allocated to the participant’s account under the tax-qualified plans were it not for limitations imposed by the IRS or the participation in the non-funded deferred compensation plan. Eligible employees include participants of the non-funded deferred compensation plan and employees whose benefits were limited as a result of IRS regulations. The Company’s required contribution to the SERP for the years ended December 31, 2015 , 2014 and 2013 was $224,000 , $151,000 , and $76,000 , respectively. The participant receives an earnings credit at a rate equal to 50 percent of the Company’s return on average equity. The total earnings for the years ended December 31, 2015 , 2014 , and 2013 for this plan was $69,000 , $59,000 , and $48,000 , respectively. |
Other Expenses
Other Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Other Expenses [Abstract] | |
Other Expenses | Other Expenses Other expenses consists of the following: Years ended (Dollars in thousands) December 31, December 31, December 31, Debit card expenses $ 6,153 5,802 6,131 Consulting and outside services 5,525 4,179 3,243 VIE write-downs, losses and other expenses 4,528 4,231 4,210 Employee expenses 4,034 3,557 2,686 Postage 3,716 3,391 3,302 Checking and operating expenses 3,554 3,517 3,091 Printing and supplies 3,530 3,547 3,112 Telephone 3,353 2,911 2,498 Loan expenses 2,824 2,513 2,444 Accounting and audit fees 1,401 1,393 1,146 ATM expenses 1,082 1,268 1,087 Legal fees 1,082 1,455 1,728 Other 3,983 3,884 4,178 Total other expenses $ 44,765 41,648 38,856 |
Federal and State Income Taxes
Federal and State Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Federal and State Income Taxes | Federal and State Income Taxes The following table is a summary of consolidated income tax expense: Years ended (Dollars in thousands) December 31, December 31, December 31, Current Federal $ 28,705 21,860 18,377 State 9,374 8,118 7,007 Total current income tax expense 38,079 29,978 25,384 Deferred 1 Federal (3,451 ) 5,016 3,918 State (629 ) 915 715 Total deferred income tax (benefit) expense (4,080 ) 5,931 4,633 Total income tax expense $ 33,999 35,909 30,017 __________ 1 Includes tax benefit of operating loss carryforwards of $391,000 , $0 and $0 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Note 15. Federal and State Income Taxes (continued) Combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: Years ended December 31, December 31, December 31, Federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal income tax benefit 3.7 % 4.0 % 4.0 % Tax-exempt interest income (12.6 )% (11.5 )% (12.2 )% Tax credits (3.0 )% (2.8 )% (3.2 )% Other, net (0.5 )% (0.5 )% 0.3 % Effective tax rate 22.6 % 24.2 % 23.9 % The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows: (Dollars in thousands) December 31, December 31, Deferred tax assets Allowance for loan and lease losses $ 50,123 50,013 Other real estate owned 8,380 8,200 Deferred compensation 8,166 5,024 Interest rate swap agreements 7,554 6,467 Acquisition fair market value adjustments 5,842 5,302 Income tax credits and net operating loss carryforwards 3,590 4,652 Employee benefits 3,165 2,839 Other 5,433 4,290 Total gross deferred tax assets 92,253 86,787 Deferred tax liabilities Available-for-sale securities (8,812 ) (17,716 ) Deferred loan costs (7,427 ) (6,419 ) Intangibles (6,272 ) (4,290 ) FHLB stock dividends (4,601 ) (10,342 ) Depreciation of premises and equipment (2,376 ) (2,358 ) Other (4,290 ) (3,925 ) Total gross deferred tax liabilities (33,778 ) (45,050 ) Net deferred tax asset $ 58,475 41,737 The Company has federal net operating loss carryforwards of $8,882,000 expiring between 2029 and 2031 . The Company has Colorado net operating loss carryforwards of $15,985,000 expiring between 2029 and 2031 . The net operating loss carryforwards originated from bank acquisitions. Note 15. Federal and State Income Taxes (continued) The Company and the Bank file consolidated income tax returns in the following jurisdictions: federal, Montana, Idaho, Colorado and Utah. Although the Bank has operations in Wyoming and Washington, neither Wyoming nor Washington imposes a corporate-level income tax. All required income tax returns have been timely filed. The following schedule summarizes the years that remain subject to examination as of December 31, 2015 : Years ended December 31, Federal 2008, 2009, 2010, 2012, 2013 and 2014 Montana 2012, 2013 and 2014 Idaho 2009, 2010, 2011, 2012, 2013 and 2014 Colorado 2008, 2009, 2010, 2011, 2012, 2013 and 2014 Utah 2012, 2013 and 2014 The Company had no unrecognized income tax benefits as of December 31, 2015 and 2014 . The Company recognizes interest related to unrecognized income tax benefits in interest expense and penalties are recognized in other expense. Interest expense and penalties recognized with respect to income tax liabilities for the years ended December 31, 2015 , 2014 , and 2013 was not significant. The Company had no accrued liabilities for the payment of interest or penalties at December 31, 2015 and 2014 . The Company has assessed the need for a valuation allowance and determined that a valuation allowance was not necessary at December 31, 2015 and 2014 . The Company believes that it is more-likely-than-not that the Company’s deferred tax assets will be realizable by offsetting future taxable income from reversing taxable temporary differences and anticipated future taxable income (exclusive of reversing temporary differences). In its assessment, the Company considered its strong earnings history, no history of income tax credit carryforwards expiring unused, and no future net operating losses (for tax purposes) are expected. Retained earnings at December 31, 2015 includes $3,600,000 for which no provision for federal income tax has been made. This amount represents the base year reserve for bad debts, which is essentially an allocation of earnings to pre-1988 bad debt deductions for federal income tax purposes only. This amount is treated as a permanent difference and deferred taxes are not recognized unless it appears that this bad debt reserve will be reduced and thereby result in taxable income in the foreseeable future. The Company is not currently contemplating any changes in its business or operations which would result in a recapture of this reserve for bad debts for federal income tax purposes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 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 (Losses) Gains on Derivatives Used for Cash Flow Hedges Total Balance at December 31, 2012 $ 58,245 (10,283 ) 47,962 Other comprehensive (loss) income before reclassification (49,943 ) 11,443 (38,500 ) Amounts reclassified from accumulated other comprehensive income 183 — 183 Net current period other comprehensive (loss) income (49,760 ) 11,443 (38,317 ) Balance at December 31, 2013 8,485 1,160 9,645 Other comprehensive income (loss) before reclassification 19,335 (11,969 ) 7,366 Amounts reclassified from accumulated other comprehensive income 125 608 733 Net current period other comprehensive income (loss) 19,460 (11,361 ) 8,099 Balance at December 31, 2014 27,945 (10,201 ) 17,744 Other comprehensive loss before reclassification (13,968 ) (4,823 ) (18,791 ) Amounts reclassified from accumulated other comprehensive income (42 ) 3,078 3,036 Net current period other comprehensive loss (14,010 ) (1,745 ) (15,755 ) Balance at December 31, 2015 $ 13,935 (11,946 ) 1,989 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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: Years ended (Dollars in thousands, except per share data) December 31, December 31, December 31, Net income available to common stockholders, basic and diluted $ 116,127 112,755 95,644 Average outstanding shares - basic 75,542,455 74,641,957 73,191,713 Add: dilutive stock options and awards 53,126 45,358 68,565 Average outstanding shares - diluted 75,595,581 74,687,315 73,260,278 Basic earnings per share $ 1.54 1.51 1.31 Diluted earnings per share $ 1.54 1.51 1.31 There were 0 , 0 and 38,915 stock options or restricted stock awards excluded from the diluted average outstanding share calculation for the years ended December 31, 2015 , 2014 , and 2013 , 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. |
Parent Holding Company Informat
Parent Holding Company Information (Condensed) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Holding Company Information (Condensed) | Parent Holding Company Information (Condensed) The following condensed financial information was the unconsolidated information for the parent holding company: Condensed Statements of Financial Condition (Dollars in thousands) December 31, December 31, Assets Cash on hand and in banks $ 1,854 4,019 Interest bearing cash deposits 46,808 51,127 Cash and cash equivalents 48,662 55,146 Investment securities, available-for-sale 65 91 Other assets 11,553 8,511 Investment in subsidiaries 1,175,844 1,121,937 Total assets $ 1,236,124 1,185,685 Liabilities and Stockholders’ Equity Dividends payable $ 22,893 22,557 Subordinated debentures 125,848 125,705 Other liabilities 10,733 9,376 Total liabilities 159,474 157,638 Common stock 761 750 Paid-in capital 736,368 708,356 Retained earnings 337,532 301,197 Accumulated other comprehensive income 1,989 17,744 Total stockholders’ equity 1,076,650 1,028,047 Total liabilities and stockholders’ equity $ 1,236,124 1,185,685 Condensed Statements of Operations and Comprehensive Income Years ended (Dollars in thousands) December 31, December 31, December 31, Income Dividends from subsidiaries $ 109,000 78,500 65,445 Loss on sale of investments — — (3,248 ) Other income 196 199 966 Intercompany charges for services 10,562 9,283 7,387 Total income 119,758 87,982 70,550 Expenses Compensation and employee benefits 13,205 10,773 9,175 Other operating expenses 7,313 6,824 6,536 Total expenses 20,518 17,597 15,711 Income before income tax benefit and equity in undistributed net income of subsidiaries 99,240 70,385 54,839 Income tax benefit 3,105 2,919 3,676 Income before equity in undistributed net income of subsidiaries 102,345 73,304 58,515 Equity in undistributed net income of subsidiaries 13,782 39,451 37,129 Net Income $ 116,127 112,755 95,644 Comprehensive Income $ 100,372 120,854 57,327 Note 18. Parent Holding Company Information (Condensed) (continued) Condensed Statements of Cash Flows Years ended (Dollars in thousands) December 31, December 31, December 31, Operating Activities Net income $ 116,127 112,755 95,644 Adjustments to reconcile net income to net cash provided by operating activities: Subsidiary income in excess of dividends distributed (13,782 ) (39,451 ) (37,129 ) Loss on sale of investments — — 3,248 Excess tax (benefits) deficiencies from stock-based compensation (102 ) (138 ) 223 Net change in other assets and other liabilities 307 140 2,575 Net cash provided by operating activities 102,550 73,306 64,561 Investing Activities Sales of available-for-sale securities — — 23,990 Maturities, prepayments and calls of available-for-sale securities — — 2,571 Changes in investment securities and other stock - intercompany — — (946 ) Net addition of premises and equipment (1,405 ) (179 ) (603 ) Net sale (purchase) of non-marketable equity securities 22 (667 ) — Equity contributions to subsidiaries (28,457 ) (18,115 ) (11,336 ) Net cash (used in) provided by investing activities (29,840 ) (18,961 ) 13,676 Financing Activities Net increase in other borrowed funds 143 143 144 Cash dividends paid (79,456 ) (50,944 ) (44,232 ) Excess tax benefits (deficiencies) from stock-based compensation 102 138 (223 ) Stock-based compensation activity 17 785 4,326 Net cash used in financing activities (79,194 ) (49,878 ) (39,985 ) Net (decrease) increase in cash and cash equivalents (6,484 ) 4,467 38,252 Cash and cash equivalents at beginning of year 55,146 50,679 12,427 Cash and cash equivalents at end of year $ 48,662 55,146 50,679 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data Summarized unaudited quarterly financial data is as follows: Quarters ended 2015 (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 77,486 78,617 80,367 83,211 Interest expense 7,382 7,369 7,309 7,215 Net interest income 70,104 71,248 73,058 75,996 Provision for loan losses 765 282 826 411 Net interest income after provision for loan losses 69,339 70,966 72,232 75,585 Non-interest income 22,693 25,802 25,799 24,467 Non-interest expense 55,497 59,945 59,112 62,203 Income before income taxes 36,535 36,823 38,919 37,849 Federal and state income tax expense 8,865 7,488 9,305 8,341 Net income $ 27,670 29,335 29,614 29,508 Basic earnings per share $ 0.37 0.39 0.39 0.39 Diluted earnings per share $ 0.37 0.39 0.39 0.39 Quarters ended 2014 (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 74,087 73,963 75,690 76,179 Interest expense 6,640 6,528 6,430 7,368 Net interest income 67,447 67,435 69,260 68,811 Provision for loan losses 1,122 239 360 191 Net interest income after provision for loan losses 66,325 67,196 68,900 68,620 Non-interest income 19,388 22,504 24,432 23,978 Non-interest expense 50,070 52,673 54,238 55,698 Income before income taxes 35,643 37,027 39,094 36,900 Federal and state income tax expense 8,913 8,350 9,800 8,846 Net income $ 26,730 28,677 29,294 28,054 Basic earnings per share $ 0.36 0.38 0.40 0.37 Diluted earnings per share $ 0.36 0.38 0.40 0.37 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 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 years ended December 31, 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 December 31, 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, market spreads, prepayments, defaults, recoveries, 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 vendors’ pricing system methodologies, procedures and system controls are reviewed to ensure they are appropriately designed and operating effectively. The Company reviews the vendors’ inputs for fair value estimates and the recommended assignments of levels within the fair value hierarchy. The review includes the extent to which markets for investment securities are determined to have limited or no activity, or are judged to be active markets. The Company reviews the extent to which observable and unobservable inputs are used as well as the appropriateness of the underlying assumptions about risk that a market participant would use in active markets, with adjustments for limited or inactive markets. In considering the inputs to the fair value estimates, the Company places less reliance on quotes that are judged to not reflect orderly transactions, or are non-binding indications. In assessing credit risk, the Company reviews payment performance, collateral adequacy, third party research and analyses, credit rating histories and issuers’ financial statements. For those markets determined to be inactive or limited, the valuation techniques used are models for which management has verified that discount rates are appropriately adjusted to reflect illiquidity and credit risk. Interest rate swap derivative financial instruments: fair values for interest rate swap derivative financial instruments are based upon the estimated amounts to settle the contracts considering current interest rates and are calculated using discounted cash flows that are observable or that can be corroborated by observable market data and, therefore, are classified within Level 2 of the valuation hierarchy. The inputs used to determine fair value include the 3 month LIBOR forward curve to estimate variable rate cash inflows and the Fed Funds Effective Swap Rate to estimate the discount rate. The estimated variable rate cash inflows are compared to the fixed rate outflows and such difference is discounted to a present value to estimate the fair value of the interest rate swaps. The Company also obtains and compares the reasonableness of the pricing from an independent third party. Note 20. Fair Value of Assets and Liabilities (continued) The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 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 $ 47,451 — 47,451 — U.S. government sponsored enterprises 93,167 — 93,167 — State and local governments 885,019 — 885,019 — Corporate bonds 384,163 — 384,163 — Residential mortgage-backed securities 1,200,960 — 1,200,960 — Total assets measured at fair value on a recurring basis $ 2,610,760 — 2,610,760 — Interest rate swaps $ 19,499 — 19,499 — Total liabilities measured at fair value on a recurring basis $ 19,499 — 19,499 — 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 December 31, 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. Note 20. Fair Value of Assets and Liabilities (continued) 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 tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 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 $ 7,609 — — 7,609 Collateral-dependent impaired loans, net of ALLL 12,938 — — 12,938 Total assets measured at fair value on a non-recurring basis $ 20,547 — — 20,547 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 Note 20. Fair Value of Assets and Liabilities (continued) 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 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) December 31, Valuation Technique Unobservable Input Range (Weighted- Average) 1 Other real estate owned $ 4,067 Sales comparison approach Selling costs 7.0% - 10.0% (7.9%) 3,542 Combined approach Selling costs 8.0% - 8.0% (8.0%) $ 7,609 Collateral-dependent impaired loans, net of ALLL $ 162 Cost approach Selling costs 0.0% - 20.0% (6.1%) 9,465 Sales comparison approach Selling costs 8.0% - 20.0% (8.9%) Adjustment to comparables 0.0% - 5.0% (0.0%) 3,311 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 12,938 Fair Value Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) December 31, 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. Note 20. Fair Value of Assets and Liabilities (continued) Fair Value of Financial Instruments The following is a description of the methods used to estimate the fair value of all other assets and liabilities recognized at amounts other than fair value. Cash and cash equivalents: fair value is estimated at book value. Investment securities, held-to-maturity: fair value for held-to-maturity securities is estimated in the same manner as available-for-sale securities, which is described above. Loans held for sale: fair value is estimated at book value. Loans receivable, net of ALLL: fair value is estimated by discounting the future cash flows using the rates at which similar notes would be written for the same remaining maturities. The market rates used are based on current rates the Company would impose for similar loans and reflect a market participant assumption about risks associated with non-performance, illiquidity, and the structure and term of the loans along with local economic and market conditions. Estimated fair value of impaired loans is based on the fair value of the collateral, less estimated cost to sell, or the present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate). All impaired loans are classified as Level 3 and all other loans are classified as Level 2 within the valuation hierarchy. Accrued interest receivable: fair value is estimated at book value. Non-marketable equity securities: fair value is estimated at book value due to restrictions that limit the sale or transfer of such securities. Deposits: fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from an independent third party and reviewed by the Company. The rates were the average of current rates offered by the Company’s local competitors. The estimated fair value of demand, NOW, savings, and money market deposits is the book value since rates are regularly adjusted to market rates and transactions are executed at book value daily. Therefore, such deposits are classified in Level 1 of the valuation hierarchy. Certificate accounts and wholesale deposits are classified as Level 2 within the hierarchy. Federal Home Loan Bank advances: fair value of non-callable FHLB advances is estimated by discounting the future cash flows using rates of similar advances with similar maturities. Such rates were obtained from current rates offered by FHLB. The estimated fair value of callable FHLB advances was obtained from FHLB and the model was reviewed by the Company. 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. Note 20. Fair Value of Assets and Liabilities (continued) The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 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 $ 193,253 193,253 — — Investment securities, available-for-sale 2,610,760 — 2,610,760 — Investment securities, held-to-maturity 702,072 — 729,513 — Loans held for sale 56,514 56,514 — — Loans receivable, net of ALLL 4,948,984 — 4,851,934 132,649 Accrued interest receivable 44,524 44,524 — — Non-marketable equity securities 27,495 — 27,495 — Total financial assets $ 8,583,602 294,291 8,219,702 132,649 Financial liabilities Deposits $ 6,945,008 5,654,638 1,293,506 — FHLB advances 394,131 — 401,530 — Repurchase agreements and other borrowed funds 430,016 — 430,016 — Subordinated debentures 125,848 — 81,840 — Accrued interest payable 3,517 3,517 — — Interest rate swaps 19,499 — 19,499 — Total financial liabilities $ 7,918,019 5,658,155 2,226,391 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 2014 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 $ 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 — |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, and involve, to varying degrees, elements of credit risk. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company had the following outstanding commitments: (Dollars in thousands) December 31, December 31, Commitments to extend credit $ 1,240,923 960,180 Letters of credit 22,415 16,531 Total outstanding commitments $ 1,263,338 976,711 The Company is a defendant in legal proceedings arising in the normal course of business. In the opinion of management, the disposition of pending litigation will not have a material affect on the Company’s consolidated financial position, results of operations or liquidity. |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions 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. 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. 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 Cañon. None of the goodwill is deductible for income tax purposes as the acquisition was accounted for as a tax-free exchange. 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. Note 22. Mergers and Acquisitions (continued) On August 31, 2014, the Company acquired 100 percent of the outstanding common stock of FNBR, a privately-owned company, and its wholly-owned subsidiary, First National Bank of the Rockies, a community bank based in Grand Junction, Colorado. First National Bank of the Rockies provides community banking services to individuals and businesses in northwestern Colorado, with banking offices located in Grand Junction, Steamboat Springs, Meeker, Rangely, Craig, Hayden and Oak Creek. As a result of the acquisition, the Company further diversified its loan and deposit customer base with its increased presence in the state of Colorado. The branches of FNBR were merged into Glacier Bank and became a part of the Bank of the San Juans division. The consideration paid by the Company to acquire FNBR was $31,817,000 , which resulted in the Company issuing 555,732 shares of its common stock and $16,690,000 in cash in exchange for all of FNBR’s outstanding common stock. The fair value of the Company’s common stock shares issued was determined on the basis of the closing market price of the Company’s common stock shares on the August 31, 2014 acquisition date. The Company recorded a $680,000 bargain purchase gain due to the fair value of FNBR’s identifiable net assets exceeding the consideration transferred. The bargain purchase gain is included in other income in the Company’s consolidated statements of operations. Before recognizing the bargain purchase gain, the Company reassessed whether it correctly identified and valued each of the assets acquired and liabilities assumed. The objective of the reassessment process was to ensure that the measurements reflected consideration of all available information as of the acquisition date. The reassessment process included reviewing FNBR’s statement of financial condition to verify that all assets and liabilities had been identified and then re-evaluating and challenging again the procedures and the reasonableness of the significant assumptions utilized in determining the fair value of the identifiable assets and liabilities with respect to the acquisition date. The Company obtained fair value estimates from independent third party specialists for the significant identifiable assets and liabilities, including loans, investment securities and deposits. Following the reassessment process, the Company concluded that the consideration transferred and all of the assets acquired and liabilities assumed had been properly identified and valued. The assets and liabilities of Cañon, CB and FNBR were recorded on the Company’s consolidated statements of financial condition at their estimated fair values as of the October 31, 2015, February 28, 2015 and August 31, 2014 acquisition dates, respectively, and their results of operations have been included in the Company’s consolidated statements of operations since those dates. The following table discloses the calculation of the fair value of the consideration transferred, the total identifiable net assets acquired and the resulting goodwill or bargain purchase gain arising from the Cañon, CB and FNBR acquisitions: Cañon CB FNBR (Dollars in thousands) October 31, February 28, August 31, Fair value of consideration transferred Fair value of Company shares issued, net of equity issuance costs $ 15,163 10,776 15,127 Cash consideration for outstanding shares 16,145 12,219 16,690 Contingent consideration — — — Total fair value of consideration transferred 31,308 22,995 31,817 Recognized amounts of identifiable assets acquired and liabilities assumed Identifiable assets acquired Cash and cash equivalents 17,860 31,931 14,578 Investment securities 68,486 42,350 157,018 Loans receivable 159,759 84,689 137,488 Core deposit intangible 4,532 2,087 4,199 Accrued income and other assets 9,689 13,580 35,884 Total identifiable assets acquired 260,326 174,637 349,167 Liabilities assumed Deposits 237,326 146,820 309,641 FHLB advances and repurchase agreements — 3,292 — Accrued expenses and other liabilities 1,487 2,667 7,029 Total liabilities assumed 238,813 152,779 316,670 Total identifiable net assets 21,513 21,858 32,497 Goodwill (bargain purchase gain) recognized $ 9,795 1,137 (680 ) Note 22. Mergers and Acquisitions (continued) The fair value of the Cañon, CB and FNBR assets acquired includes loans with fair values of $159,759,000 and $84,689,000 and $137,488,000 , respectively. The gross principal and contractual interest due under the Cañon, CB and FNBR contracts is $164,568,000 , $88,817,000 and $146,019,000 , respectively, all of which is expected to be collectible. Core deposit intangible assets related to the Cañon, CB and FNBR acquisitions totaled $4,532,000 , $2,087,000 and $4,199,000 , respectively, all with estimated lives of 10 years. The Company incurred $707,000 and $1,605,000 , respectively, of Cañon and CB third-party acquisition-related costs during the year ended December 31, 2015. The Company incurred $552,000 of FNBR third-party acquisition-related costs during the year ended December 31, 2014. 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 Cañon was approximately $2,606,000 and net income was approximately $563,000 from October 31, 2015 to December 31, 2015. Total income consisting of net interest income and non-interest income of the acquired operations of CB was approximately $7,492,000 and net income was approximately $1,808,000 from February 28, 2015 to December 31, 2015. Total income consisting of net interest income and non-interest income of the acquired operations of FNBR was approximately $6,672,000 and net income was approximately $1,675,000 from August 31, 2014 to December 31, 2014. The following unaudited pro forma summary presents consolidated information of the Company as if the Cañon and CB acquisitions had occurred on January 1, 2014: Years ended (Dollars in thousands) December 31, December 31, Net interest income and non-interest income $ 401,140 383,387 Net income 115,613 115,899 The following unaudited pro forma summary presents consolidated information of the Company as if the FNBR acquisition had occurred on January 1, 2013: Years ended (Dollars in thousands) December 31, December 31, Net interest income and non-interest income $ 371,772 340,393 Net income 113,364 99,275 |
Nature of Operations and Summ31
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include: 1) the determination of the allowance for loan and lease losses (“ALLL” or “allowance”); 2) the valuation of investment securities; 3) the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans; and 4) the evaluation of goodwill impairment. For the determination of the ALLL and real estate valuation estimates, management obtains independent appraisals (new or updated) for significant items. Estimates relating to investment valuations are obtained from independent third parties. Estimates relating to the evaluation of goodwill for impairment are determined based on internal calculations using significant independent party inputs. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of the Company include the parent holding company, 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. 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 October 2015, the Company completed its acquisition of Cañon Bank Corporation and its wholly-owned subsidiary, Cañon National Bank, a community bank based in Cañon City, Colorado (collectively, “Cañon”). 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 (collectively, “FNBR”). In July 2013, the Company completed its acquisition of North Cascades Bancshares, Inc. and its wholly-owned subsidiary, North Cascades National Bank, a community bank based in Chelan, Washington. In May 2013, the Company acquired Wheatland Bankshares, Inc. and its wholly-owned subsidiary, First State Bank, a community bank based in Wheatland, Wyoming. The transactions were accounted for using the acquisition method, and their results of operations have been included in the Company’s consolidated financial statements as of the acquisition dates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash held as demand deposits at various banks and the Federal Reserve Bank (“FRB”), interest bearing deposits, federal funds sold, and liquid investments with original maturities of three months or less. The Bank is required to maintain an average reserve balance with either the FRB or in the form of cash on hand. The required reserve balance at December 31, 2015 was $34,309,000 . |
Investment Securities | Investment Securities Debt securities for which the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity and are carried at amortized cost. Debt and equity securities held primarily for the purpose of selling in the near term are classified as trading securities and are reported at fair market value, with unrealized gains and losses included in income. Debt and equity securities not classified as held-to-maturity or trading are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of income taxes, as a separate component of other comprehensive income. Premiums and discounts on investment securities are amortized or accreted into income using a method that approximates the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. The Company does not have any investment securities classified as trading securities. The Company reviews and analyzes the various risks that may be present within the investment portfolio on an ongoing basis, including market risk and credit risk. Market risk is the risk to an entity’s financial condition resulting from adverse changes in the value of its holdings arising from movements in interest rates, foreign exchange rates, equity prices or commodity prices. The Company assesses the market risk of individual securities as well as the investment portfolio as a whole. Credit risk, broadly defined, is the risk that an issuer or counterparty will fail to perform on an obligation. A security is investment grade if the issuer has an adequate capacity to meet its commitment over the expected life of the investment, i.e., the risk of default is low and full and timely repayment of interest and principal is expected. To determine investment grade status for securities, the Company conducts due diligence of the creditworthiness of the issuer or counterparty prior to acquisition and ongoing thereafter consistent with the risk characteristics of the security and the overall risk of the investment portfolio. Credit quality due diligence takes into account the extent to which a security is guaranteed by the U.S. government and other agencies of the U.S. government. The depth of the due diligence is based on the complexity of the structure, the size of the security, and takes into account material positions and specific groups of securities or stratifications for analysis and review of similar risk positions. The due diligence includes consideration of payment performance, collateral adequacy, internal analyses, third party research and analytics, external credit ratings and default statistics. For additional information relating to investment securities, see Note 2. |
Temporary versus Other-Than-Temporary Impairment | Temporary versus Other-Than-Temporary Impairment The Company assesses individual securities in its investment portfolio for impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant. An investment is impaired if the fair value of the security is less than its carrying value at the financial statement date. If impairment is determined to be other-than-temporary, an impairment loss is recognized by reducing the amortized cost for the credit loss portion of the impairment with a corresponding charge to earnings for a like amount. In evaluating impaired securities for other-than-temporary impairment losses, management considers 1) the severity and duration of the impairment; 2) the credit ratings of the security; and 3) the overall deal structure, including the Company’s position within the structure, the overall and near term financial performance of the issuer and underlying collateral, delinquencies, defaults, loss severities, recoveries, prepayments, cumulative loss projections, discounted cash flows and fair value estimates. In evaluating debt securities for other-than-temporary impairment losses, management assesses whether the Company intends to sell the security or if it is more-likely-than-not that the Company will be required to sell the debt security. In so doing, management considers contractual constraints, liquidity, capital, asset/liability management and securities portfolio objectives. If impairment is determined to be other-than-temporary and the Company does not intend to sell a debt security, and it is more-likely-than-not the Company will not be required to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion (noncredit portion) in other comprehensive income, net of tax. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively, as an increase to the carrying amount of the security, over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. |
Loans Held for Sale | Loans Held for Sale Loans held for sale generally consist of long-term, fixed rate, conforming, single-family residential real estate loans and are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized by charges to non-interest income. A sale is recognized when the Company surrenders control of the loan and consideration, is received in exchange. A gain is recognized in non-interest income to the extent the sales price exceeds the carrying value of the sold loan. |
Loans Receivable | Loans Receivable Loans that are intended to be held-to-maturity are reported at the unpaid principal balance less net charge-offs and adjusted for deferred fees and costs on originated loans and unamortized premiums or discounts on acquired loans. Fees and costs on originated loans and premiums or discounts on acquired loans are deferred and subsequently amortized or accreted as a yield adjustment over the expected life of the loan utilizing the interest method. The objective of the interest method is to calculate periodic interest income at a constant effective yield. Anticipated prepayments are not included when applying the interest method. When a loan is paid off prior to maturity, the remaining fees and costs on originated loans and premiums or discounts on acquired loans are immediately recognized into interest income. The Company’s loan segments, which are based on the purpose of the loan, include residential real estate, commercial, and consumer loans. The Company’s loan classes, a further disaggregation of segments, include residential real estate loans (residential real estate segment), commercial real estate and other commercial loans (commercial segment), and home equity and other consumer loans (consumer segment). Loans that are thirty days or more past due based on payments received and applied to the loan are considered delinquent. Loans are designated non-accrual and the accrual of interest is discontinued when the collection of the contractual principal or interest is unlikely. A loan is typically placed on non-accrual when principal or interest is due and has remained unpaid for ninety days or more. When a loan is placed on non-accrual status, interest previously accrued but not collected is reversed against current period interest income. Subsequent payments on non-accrual loans are applied to the outstanding principal balance if doubt remains as to the ultimate collectability of the loan. Interest accruals are not resumed on partially charged-off impaired loans. For other loans on nonaccrual, interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. The Company considers impaired loans to be the primary credit quality indicator for monitoring the credit quality of the loan portfolio. Loans are designated impaired when, based upon current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement and, therefore, the Company has serious doubts as to the ability of such borrowers to fulfill the contractual obligation. Impaired loans include non-performing loans (i.e., non-accrual loans and accruing loans ninety days or more past due) and accruing loans under ninety days past due where it is probable payments will not be received according to the loan agreement (e.g., troubled debt restructuring). Interest income on accruing impaired loans is recognized using the interest method. The Company measures impairment on a loan-by-loan basis in the same manner for each class within the loan portfolio. An insignificant delay or shortfall in the amounts of payments would not cause a loan or lease to be considered impaired. The Company determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the facts and circumstances surrounding the loan and the borrower, including the length and reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest due. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) A restructured loan is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The Company periodically enters into restructure agreements with borrowers whereby the loans were previously identified as TDRs. When such circumstances occur, the Company carefully evaluates the facts of the subsequent restructure to determine the appropriate accounting and under certain circumstances it may be acceptable not to account for the subsequently restructured loan as a TDR. When assessing whether a concession has been granted by the Company, any prior forgiveness on a cumulative basis is considered a continuing concession. A TDR loan is considered an impaired loan and a specific valuation allowance is established when the fair value of the collateral-dependent loan or present value of the loan’s expected future cash flows (discounted at the loan’s effective interest rate based on the original contractual rate) is lower than the carrying value of the impaired loan. The Company has made the following types of loan modifications, some of which were considered a TDR: • reduction of the stated interest rate for the remaining term of the debt; • extension of the maturity date(s) at a stated rate of interest lower than the current market rate for newly originated debt having similar risk characteristics; and • reduction of the face amount of the debt as stated in the debt agreements. The Company recognizes that while borrowers may experience deterioration in their financial condition, many continue to be creditworthy customers who have the willingness and capacity for debt repayment. In determining whether non-restructured or unimpaired loans issued to a single or related party group of borrowers should continue to accrue interest when the borrower has other loans that are impaired or are TDRs, the Company on a quarterly or more frequent basis performs an updated and comprehensive assessment of the willingness and capacity of the borrowers to timely and ultimately repay their total debt obligations, including contingent obligations. Such analysis takes into account current financial information about the borrowers and financially responsible guarantors, if any, including for example: • analysis of global, i.e., aggregate debt service for total debt obligations; • assessment of the value and security protection of collateral pledged using current market conditions and alternative market assumptions across a variety of potential future situations; and • loan structures and related covenants. For additional information relating to loans, see Note 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. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) Commercial . Commercial loans consist of loans to commercial customers for use in financing working capital needs, equipment purchases and business expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations across the Company’s diverse, geographic market areas. Home Equity . Home equity loans consist of junior lien mortgages and first and junior lien lines of credit (revolving open-end and amortizing closed-end) secured by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans is impacted by economic conditions within the Company’s market areas that affect the value of the residential property securing the loans and affect the borrowers' personal incomes. Mitigating risk factors for this loan class are a large number of borrowers, geographic dispersion of market areas and the loans are originated for terms that range from 10 years to 15 years. Other Consumer . The other consumer loan portfolio consists of various short-term loans such as automobile loans and loans for other personal purposes. Repayment of these loans is primarily dependent on the personal income of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s diverse, geographic market area) and the creditworthiness of a borrower. The ALLL consists of a specific valuation allowance component and a general valuation allowance component. The specific component relates to loans that are determined to be impaired and individually evaluated for impairment. The Company measures impairment on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except when it is determined that repayment of the loan is expected to be provided solely by the underlying collateral. For impairment based on expected future cash flows, the Company considers all information available as of a measurement date, including past events, current conditions, potential prepayments, and estimated cost to sell when such costs are expected to reduce the cash flows available to repay or otherwise satisfy the loan. For alternative ranges of cash flows, the likelihood of the possible outcomes is considered in determining the best estimate of expected future cash flows. The effective interest rate for a loan restructured in a TDR is based on the original contractual rate. For collateral-dependent loans and real estate loans for which foreclosure or a deed-in-lieu of foreclosure is probable, impairment is measured by the fair value of the collateral, less estimated cost to sell. The fair value of the collateral is determined primarily based upon appraisal or evaluation of the underlying real property value. The general valuation allowance component relates to probable credit losses inherent in the balance of the loan portfolio based on historical loss experience, adjusted for changes in trends and conditions of qualitative or environmental factors. The historical loss experience is based on the previous twelve quarters loss experience by loan class adjusted for risk characteristics in the existing loan portfolio. The same trends and conditions are evaluated for each class within the loan portfolio; however, the risk characteristics are weighted separately at the individual class level based on the Company’s judgment and experience. The changes in trends and conditions evaluated for each class within the loan portfolio include the following: • changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; • changes in global, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; • changes in the nature and volume of the portfolio and in the terms of loans; • changes in experience, ability, and depth of lending management and other relevant staff; • changes in the volume and severity of past due and nonaccrual loans; • changes in the quality of the Company’s loan review system; • changes in the value of underlying collateral for collateral-dependent loans; • the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and • the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the Company’s existing portfolio. The ALLL is increased by provisions for loan losses which are charged to expense. The portions of loan balances determined by management to be uncollectible are charged off as a reduction of the ALLL and recoveries of amounts previously charged off are credited as an increase to the ALLL. The Company’s charge-off policy is consistent with bank regulatory standards. Consumer loans generally are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure or by deed-in-lieu of foreclosure is classified as real estate owned until such time as it is sold. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) At acquisition date, the assets and liabilities of acquired banks are recorded at their estimated fair values which results in no ALLL carried over from acquired banks. Subsequent to acquisition, an allowance will be recorded on the acquired loan portfolios for further credit deterioration, if any. |
Premises and Equipment | Premises and Equipment Premises and equipment are accounted for at cost less depreciation. Depreciation is computed on a straight-line method over the estimated useful lives or the term of the related lease. The estimated useful life for office buildings is 15 - 40 years and the estimated useful life for furniture, fixtures, and equipment is 3 - 10 years. Interest is capitalized for any significant building projects. For additional information relating to premises and equipment, see Note 4. |
Leases | Leases The Company leases certain land, premises and equipment from third parties under operating and capital leases. The lease payments for operating lease agreements are recognized on a straight-line basis. The present value of the future minimum rental payments for capital leases is recognized as an asset when the lease is formed. Lease improvements incurred at the inception of the lease are recorded as an asset and depreciated over the initial term of the lease and lease improvements incurred subsequently are depreciated over the remaining term of the lease. For additional information relating to leases, see Note 4. |
Other Real Estate Owned | Other Real Estate Owned Property acquired by foreclosure or deed-in-lieu of foreclosure is initially recorded at fair value, less estimated selling cost, at acquisition date (i.e., cost of the property). The Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon the occurrence of either the Company obtaining legal title to the property or the borrower conveying all interest in the property through a deed-in-lieu or similar agreement. Fair value is determined as the amount that could be reasonably expected in a current sale between a willing buyer and a willing seller in an orderly transaction between market participants at the measurement date. Subsequent to the initial acquisition, if the fair value of the asset, less estimated selling cost, is less than the cost of the property, a loss is recognized in other expense and the asset carrying value is reduced. Gain or loss on disposition of other real estate owned (“OREO”) is recorded in non-interest income or non-interest expense, respectively. In determining the fair value of the properties on the date of transfer and any subsequent estimated losses of net realizable value, the fair value of other real estate acquired by foreclosure or deed-in-lieu of foreclosure is determined primarily based upon appraisal or evaluation of the underlying property value. |
Long- Lived Assets | Long-lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is deemed impaired if the sum of the expected future cash flows is less than the carrying amount of the asset. If impaired, an impairment loss is recognized in other expense to reduce the carrying value of the asset to fair value. At December 31, 2015 and 2014 , no long-lived assets were considered impaired. |
Business Combinations and Intangible Assets | Business Combinations and Intangible Assets Acquisition accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets. Goodwill is recorded if the purchase price exceeds the net fair value of assets acquired and a bargain purchase gain is recorded in other income if the net fair value of assets acquired exceeds the purchase price. Adjustment of the allocated purchase price may be related to fair value estimates for which all information has not been obtained of the acquired entity known or discovered during the allocation period, the period of time required to identify and measure the fair values of the assets and liabilities acquired in the business combination. The allocation period is generally limited to one year following consummation of a business combination. Core deposit intangible represents the intangible value of depositor relationships resulting from deposit liabilities assumed in acquisitions and is amortized using an accelerated method based on an estimated runoff of the related deposits. The core deposit intangible is evaluated for impairment and recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable, with any changes in estimated useful life accounted for prospectively over the revised remaining life. For additional information relating to core deposit intangibles, see Note 5. The Company tests goodwill for impairment at the reporting unit level annually during the third quarter. The Company has identified that each of the bank divisions are reporting units (i.e., components of the Glacier Bank operating segment) given that each division has a separate management team that regularly reviews its respective division financial information; however, the reporting units are aggregated into a single reporting unit due to the reporting units having similar economic characteristics. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) The goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying amount. Examples of events and circumstances that could trigger the need for interim impairment testing include: • a significant change in legal factors or in the business climate; • an adverse action or assessment by a regulator; • unanticipated competition; • a loss of key personnel; • a more-likely-than-not expectation that a reporting unit or a significant portion of a reporting unit will be sold or otherwise disposed of; and • the testing for recoverability of a significant asset group within a reporting unit. For the goodwill impairment assessment, the Company has the option, prior to the two-step process, to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. The Company opted to bypass the qualitative assessment for its 2015 and 2014 annual goodwill impairment testing and proceed directly to the two-step goodwill impairment test. The goodwill impairment two-step process requires the Company to make assumptions and judgments regarding fair value. In the first step, the Company calculates an implied fair value based on a control premium analysis. If the implied fair value is less than the carrying value, the second step is completed to compute the impairment amount, if any, by determining the “implied fair value” of goodwill. This determination requires the allocation of the estimated fair value of the reporting units to the assets and liabilities of the reporting units. Any remaining unallocated fair value represents the “implied fair value” of goodwill, which is compared to the corresponding carrying value of goodwill to compute impairment, if any. For additional information relating to goodwill, see Note 5. |
Non-Marketable Equity Securities | Non-Marketable Equity Securities Non-marketable equity securities primarily consist of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Company’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs is jointly and severally liable for repayment of each other’s debt. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company maintains bank-owned life insurance policies on certain current and former employees and directors, which are recorded at their cash surrender values as determined by the insurance carriers. At December 31, 2015 and 2014 , the carrying value associated with these policies is $49,534,000 and $46,030,000 , respectively, and is recorded in other assets in the Company’s statements of financial position. The appreciation in the cash surrender value of the policies is recognized as a component of other non-interest income in the Company’s statements of operations. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities For asset and liability management purposes, the Company has entered into interest rate swap agreements to hedge against changes in forecasted cash flows due to interest rate exposures. The interest rate swaps are recognized as assets or liabilities on the Company’s statements of financial condition and measured at fair value. Fair value estimates are obtained from third parties and are based on pricing models. The Company does not enter into interest rate swap agreements for trading or speculative purposes. The Company takes into account the impact of bilateral collateral and master netting agreements that allows the Company to settle all interest rate swap agreements held with a single counterparty on a net basis, and to offset the net interest rate swap derivative position with the related collateral when recognizing interest rate swap derivative assets and liabilities. Interest rate swaps are contracts in which a series of interest payments are exchanged over a prescribed period. The notional amount upon which the interest payments are based is not exchanged. The swap agreements are derivative instruments and convert a portion of the Company’s forecasted variable rate debt to a fixed rate (i.e., cash flow hedge) over the payment term of the interest rate swap. The effective portion of the gain or loss on the cash flow hedging instruments is initially reported as a component of other comprehensive income and subsequently reclassified into earnings in the same period during which the transaction affects earnings. The ineffective portion of the gain or loss on derivative instruments, if any, is recognized in earnings. For the years ended December 31, 2015 , 2014 , and 2013 , the Company’s cash flow hedges were determined to be fully effective. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) Interest rate derivative financial instruments receive hedge accounting treatment only if they are designated as a hedge and are expected to be, and are, highly effective in substantially reducing interest rate risk arising from the assets and liabilities identified as exposing the Company to risk. Derivative financial instruments that do not meet specified hedging criteria are recorded at fair value with changes in fair value recorded in income. The Company’s interest rate swaps are considered highly effective and currently meet the hedge accounting criteria. Cash flows resulting from the interest rate derivative financial instruments that are accounted for as hedges of assets and liabilities are classified in the Company’s cash flow statement in the same category as the cash flows of the items being hedged. For additional information relating to interest rate swap agreements, see Note 10. The Company also has residential real estate derivatives for commitments to fund certain residential real estate loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of residential real estate loans to third party investors on a best efforts basis. It is the Company’s practice to enter into forward commitments for the future delivery of residential real estate loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These derivatives are not designated in hedge relationships. Such derivatives are short-term in nature and changes in fair value are not recorded as gains on sale of loans because the change is not significant. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation awards granted, comprised of stock options and restricted stock awards, are valued at fair value and compensation cost is recognized on a straight-line basis, net of estimated forfeitures, over the requisite service period of each award. For additional information relating to stock-based compensation, see Note 12. |
Advertising and Promotion | Advertising and Promotion Advertising and promotion costs are recognized in the period incurred. |
Income Taxes | Income Taxes The Company’s income tax expense consists of current and deferred income tax expense. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of enacted tax law to earnings or losses. Deferred income tax expense results from changes in deferred assets and liabilities between periods. The Company recognizes interest and penalties related to income tax matters in income tax expense. Deferred tax assets and liabilities are recognized for estimated future income tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The term more-likely-than-not means a likelihood of more than fifty percent . The recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to the Company’s judgment. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence. For additional information relating to income taxes, see Note 15. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (“OCI”). OCI includes unrealized gains and losses, net of tax effect, on available-for-sale securities and derivatives used for cash flow hedges. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period presented. Diluted earnings per share is computed by including the net increase in shares as if dilutive outstanding stock options were exercised and restricted stock awards were vested, using the treasury stock method. For additional information relating to earnings per share, see Note 17. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2014 and 2013 financial statements to conform to the 2015 presentation. |
Impact of Recent Authoritative Accounting Guidance | Impact of Recent Authoritative Accounting Guidance The Accounting Standards Codification ™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of the federal securities laws are also sources of authoritative GAAP for the Company as an SEC registrant. All other accounting literature is non-authoritative. 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 January 2016, FASB amended FASB ASC Topic 825, Financial Instruments. The amendments in this Update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments are effective for public business entities for the first interim and annual reporting periods beginning after December 15, 2017. Early adoption is only permitted under certain circumstances outlined in the amendments. A reporting entity should apply the amendments by means of a cumulative-effect adjustment to the Company’s statement of financial condition as of the beginning of the reporting year of adoption. The amendments related to equity securities without readily determinable fair values should be applied prospectively. 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 September 2015, FASB amended FASB ASC Topic 805, Business Combinations. 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 has evaluated the impact of these amendments and determined there would not be 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 end 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 August 2014, FASB amended FASB ASC Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors . The amendment requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: 1) The loan has a government guarantee that is not separable from the loan before foreclosure; 2) At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and 3) At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendment is effective for public business entities for interim and annual periods beginning after December 15, 2014. An entity can elect to adopt the amendments using either a prospective transition method or a modified retrospective method as defined in the amendment. The Company has evaluated the impact of the adoption of this amendment and determined there was not a material effect on the Company’s financial position or results of operations. Note 1. Nature of Operations and Summary of Significant Accounting Policies (continued) In June 2014, FASB amended FASB ASC Topic 860, Transfers and Servicing. The amendments in this Update require the following accounting changes: 1) change the accounting for repurchase-to-maturity transactions to secured borrowing accounting; and 2) for repurchase finance arrangements, require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in a secured borrowing accounting for the repurchase agreement. The amendments also require certain disclosures for securities sold under agreements to repurchase (“repurchase agreements”), securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The accounting changes are effective for public business entities for the first interim or annual reporting periods beginning after December 15, 2014. Early application for public business entities is not permitted. The disclosure changes for repurchase agreements are effective for public business entities for annual reporting periods beginning after December 15, 2014. The Company has evaluated the impact of the adoption of this amendment and determined there was not a material effect on the Company’s financial position or results of operations. 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 Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors . The amendment clarifies that an in substance repossession foreclosure occurs when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either 1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or 2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed-in-lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both 1) the amount of foreclosed residential real estate property held by the creditor; and 2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendment is effective for public business entities for interim and annual periods beginning after December 15, 2014. An entity can elect to adopt the amendments using either a modified retrospective transition method or a prospective transition method as defined in the amendment. The Company has evaluated the impact of the adoption of this amendment and determined there was not a material effect on the Company’s financial position or results of operations. 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) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost, gross unrealized gain and losses and fair value of investment securities | The following tables present the amortized cost, the gross unrealized gains and losses and the fair value of the Company’s investment securities: December 31, 2015 Amortized Cost Gross Unrealized Fair Value (Dollars in thousands) Gains Losses Available-for-sale U.S. government and federal agency $ 47,868 15 (432 ) 47,451 U.S. government sponsored enterprises 93,230 100 (163 ) 93,167 State and local governments 856,738 34,159 (5,878 ) 885,019 Corporate bonds 386,629 611 (3,077 ) 384,163 Residential mortgage-backed securities 1,203,548 6,180 (8,768 ) 1,200,960 Total available-for-sale 2,588,013 41,065 (18,318 ) 2,610,760 Held-to-maturity State and local governments 702,072 31,863 (4,422 ) 729,513 Total held-to-maturity 702,072 31,863 (4,422 ) 729,513 Total investment securities $ 3,290,085 72,928 (22,740 ) 3,340,273 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 December 31, 2015 . Actual maturities may differ from expected or contractual maturities since issuers have the right to prepay obligations with or without prepayment penalties. December 31, 2015 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 140,703 141,230 — — Due after one year through five years 486,235 484,467 — — Due after five years through ten years 128,158 131,883 25,073 25,605 Due after ten years 629,369 652,220 676,999 703,908 1,384,465 1,409,800 702,072 729,513 Residential mortgage-backed securities 1 1,203,548 1,200,960 — — Total $ 2,588,013 2,610,760 702,072 729,513 ________ 1 Residential mortgage-backed securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. |
Gain or loss on sale of investment securities | Proceeds from sales and calls of investment securities and the associated gains and losses that have been included in earnings are listed below: Years ended (Dollars in thousands) December 31, December 31, December 31, Available-for-sale Proceeds from sales and calls of investment securities $ 167,660 219,849 181,971 Gross realized gains 1 1,877 501 3,723 Gross realized losses 1 (1,808 ) (705 ) (4,022 ) Held-to-maturity Proceeds from calls of investment securities 20,997 8,930 — Gross realized gains 1 50 22 — Gross realized losses 1 (100 ) (6 ) — __________ 1 The gain or loss on the sale or call of each investment security is determined by the specific identification method. |
Summary of investment securities with an unrealized loss position | Investment securities with an unrealized loss position are summarized as follows: December 31, 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 $ 42,493 (432 ) 2 — 42,495 (432 ) U.S. government sponsored enterprises 60,010 (163 ) — — 60,010 (163 ) State and local governments 102,422 (1,629 ) 115,943 (4,249 ) 218,365 (5,878 ) Corporate bonds 228,258 (1,812 ) 13,962 (1,265 ) 242,220 (3,077 ) Residential mortgage-backed securities 730,412 (7,226 ) 53,021 (1,542 ) 783,433 (8,768 ) Total available-for-sale $ 1,163,595 (11,262 ) 182,928 (7,056 ) 1,346,523 (18,318 ) Held-to-maturity State and local governments $ 42,322 (594 ) 81,709 (3,828 ) 124,031 (4,422 ) Total held-to-maturity $ 42,322 (594 ) 81,709 (3,828 ) 124,031 (4,422 ) 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) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of loans receivable | The following table presents loans receivable for each portfolio class of loans: At or for the Year ended (Dollars in thousands) December 31, December 31, Residential real estate loans $ 688,912 611,463 Commercial loans Real estate 2,633,953 2,337,548 Other commercial 1,099,564 925,900 Total 3,733,517 3,263,448 Consumer and other loans Home equity 420,901 394,670 Other consumer 235,351 218,514 Total 656,252 613,184 Loans receivable 1 5,078,681 4,488,095 Allowance for loan and lease losses (129,697 ) (129,753 ) Loans receivable, net $ 4,948,984 4,358,342 Weighted-average interest rate on loans (tax-equivalent) 4.84 % 4.86 % __________ 1 Includes net deferred fees, costs, premiums and discounts of $15,529,000 and $13,710,000 at December 31, 2015 and 2014 , respectively. |
Summary of the activity in the ALLL | The following tables summarize the activity in the ALLL by portfolio segment: Year ended December 31, 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 2,284 640 (696 ) 3,030 (480 ) (210 ) Charge-offs (7,002 ) (985 ) (1,920 ) (2,322 ) (809 ) (966 ) Recoveries 4,662 92 2,694 926 324 626 Balance at end of period $ 129,697 14,427 67,877 32,525 8,998 5,870 Year ended December 31, 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 1,912 716 (2,877 ) 3,708 1,254 (889 ) Charge-offs (7,603 ) (431 ) (1,802 ) (3,058 ) (1,038 ) (1,274 ) Recoveries 5,093 328 2,146 1,611 448 560 Balance at end of period $ 129,753 14,680 67,799 30,891 9,963 6,420 Note 3. Loans Receivable, Net (continued) Year ended December 31, 2013 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Balance at beginning of period $ 130,854 15,482 74,398 21,567 10,659 8,748 Provision for loan losses 6,887 (921 ) (3,670 ) 10,271 868 339 Charge-offs (13,643 ) (793 ) (3,736 ) (4,671 ) (2,594 ) (1,849 ) Recoveries 6,253 299 3,340 1,463 366 785 Balance at end of period $ 130,351 14,067 70,332 28,630 9,299 8,023 |
Summary of ALLL and loans receivable | The following tables disclose the balance in the ALLL and the recorded investment in loans by portfolio segment: December 31, 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 $ 8,124 782 1,629 5,277 64 372 Collectively evaluated for impairment 121,573 13,645 66,248 27,248 8,934 5,498 Total allowance for loan and lease losses $ 129,697 14,427 67,877 32,525 8,998 5,870 Loans receivable Individually evaluated for impairment $ 140,773 20,767 85,845 23,874 6,493 3,794 Collectively evaluated for impairment 4,937,908 668,145 2,548,108 1,075,690 414,408 231,557 Total loans receivable $ 5,078,681 688,912 2,633,953 1,099,564 420,901 235,351 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 the impaired loans | The following tables disclose information related to impaired loans by portfolio segment: At or for the Year ended December 31, 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 $ 34,683 8,253 12,554 11,923 102 1,851 Unpaid principal balance 36,157 9,198 12,581 12,335 109 1,934 Specific valuation allowance 8,124 782 1,629 5,277 64 372 Average balance 36,176 6,393 15,827 11,768 426 1,762 Loans without a specific valuation allowance Recorded balance $ 106,090 12,514 73,291 11,951 6,391 1,943 Unpaid principal balance 132,718 13,969 94,028 15,539 7,153 2,029 Average balance 116,356 13,615 78,684 15,479 6,350 2,228 Total Recorded balance $ 140,773 20,767 85,845 23,874 6,493 3,794 Unpaid principal balance 168,875 23,167 106,609 27,874 7,262 3,963 Specific valuation allowance 8,124 782 1,629 5,277 64 372 Average balance 152,532 20,008 94,511 27,247 6,776 3,990 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: December 31, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer Accruing loans 30-59 days past due $ 15,801 4,895 4,393 3,564 1,601 1,348 Accruing loans 60-89 days past due 3,612 961 1,841 286 280 244 Accruing loans 90 days or more past due 2,131 — 231 1,820 15 65 Non-accrual loans 51,133 8,073 28,819 7,691 6,022 528 Total past due and non-accrual loans 72,677 13,929 35,284 13,361 7,918 2,185 Current loans receivable 5,006,004 674,983 2,598,669 1,086,203 412,983 233,166 Total loans receivable $ 5,078,681 688,912 2,633,953 1,099,564 420,901 235,351 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: Year ended December 31, 2015 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 64 3 25 22 1 13 Pre-modification recorded balance $ 22,316 2,259 8,877 10,545 137 498 Post-modification recorded balance $ 23,110 2,203 9,927 10,325 157 498 TDRs that subsequently defaulted Number of loans 7 1 1 4 — 1 Recorded balance $ 2,556 1,947 78 529 — 2 Note 3. Loans Receivable, Net (continued) Year ended December 31, 2014 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 51 — 18 24 6 3 Pre-modification recorded balance $ 37,781 — 21,760 12,522 3,385 114 Post-modification recorded balance $ 37,075 — 21,803 11,884 3,274 114 TDRs that subsequently defaulted Number of loans 5 — 2 1 2 — Recorded balance $ 4,453 — 927 693 2,833 — Year ended December 31, 2013 (Dollars in thousands) Total Residential Real Estate Commercial Real Estate Other Commercial Home Equity Other Consumer TDRs that occurred during the period Number of loans 63 9 21 23 2 8 Pre-modification recorded balance $ 29,046 1,907 20,334 6,087 147 571 Post-modification recorded balance $ 29,359 2,293 20,334 6,087 147 498 TDRs that subsequently defaulted Number of loans 5 1 1 3 — — Recorded balance $ 849 265 79 505 — — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and equipment, net of accumulated depreciation | Premises and equipment, net of accumulated depreciation, consist of the following: (Dollars in thousands) December 31, 2015 December 31, 2014 Land $ 30,108 27,605 Office buildings and construction in progress 187,787 172,544 Furniture, fixtures and equipment 78,803 70,622 Leasehold improvements 8,028 7,813 Accumulated depreciation (110,696 ) (99,409 ) Net premises and equipment $ 194,030 179,175 |
Future Minimum Rental Commitments required under Operating and Capital Leases | The total future minimum rental commitments required under operating and capital leases that have initial or remaining noncancelable lease terms in excess of one year at December 31, 2015 are as follows: (Dollars in thousands) Capital Leases Operating Leases Total Years ending December 31, 2016 $ 92 2,443 2,535 2017 92 2,132 2,224 2018 92 1,877 1,969 2019 92 1,682 1,774 2020 92 1,160 1,252 Thereafter 11 3,202 3,213 Total minimum lease payments 471 12,496 12,967 Less: Amount representing interest 64 Present value of minimum lease payments 407 Less: Current portion of obligations under capital leases 72 Long-term portion of obligations under capital leases $ 335 |
Other Intangible Assets and G35
Other Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core deposit intangibles | The following table sets forth information regarding the Company’s core deposit intangibles: At or for the Years ended (Dollars in thousands) December 31, December 31, December 31, Gross carrying value $ 38,527 32,056 27,857 Accumulated amortization (23,972 ) (21,156 ) (18,345 ) Net carrying value $ 14,555 10,900 9,512 Aggregate amortization expense $ 2,964 2,811 2,401 Weighted-average amortization period 9.7 years Estimated amortization expense for the years ending December 31, 2016 $ 2,923 2017 2,027 2018 1,598 2019 1,512 2020 1,465 |
Changes in the carrying value of goodwill | The following table discloses the changes in the carrying value of goodwill: Years ended (Dollars in thousands) December 31, December 31, December 31, Net carrying value at beginning of period $ 129,706 129,706 106,100 Acquisitions 10,932 — 23,606 Net carrying value at end of period $ 140,638 129,706 129,706 |
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) December 31, December 31, Gross carrying value $ 180,797 169,865 Accumulated impairment charge 1 (40,159 ) (40,159 ) Net carrying value $ 140,638 129,706 __________ 1 A goodwill impairment charge was recognized in 2011 and was due to high levels of volatility and dislocation in bank stock prices nationwide. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 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. December 31, 2015 December 31, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC Assets Loans receivable $ 57,126 — 36,077 — Premises and equipment, net — 13,503 — 13,106 Accrued interest receivable 117 — 116 — Other assets 887 542 616 258 Total assets $ 58,130 14,045 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 139 — 185 — Total liabilities $ 4,698 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 years ended December 31, 2015 and 2014 . The net investment loss was included in income before income taxes on the Company’s statements of operations. Years ended December 31, 2015 December 31, 2014 (Dollars in thousands) CDE (NMTC) LIHTC CDE (NMTC) LIHTC VIE loss $ (1,286 ) (974 ) (879 ) (1,082 ) Federal income tax credits 2,138 1,175 1,744 1,270 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Scheduled maturities of time deposits | The scheduled maturities of time deposits are as follows: (Dollars in thousands) Amount Years ending December 31, 2016 $ 775,227 2017 149,999 2018 56,554 2019 40,696 2020 36,674 Thereafter 1,500 $ 1,060,650 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Carrying Value of Repurchase Agreements | The following tables summarize the carrying value of the Company’s repurchase agreements by remaining contractual maturity and category of collateral: December 31, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Continuous Up to 30 Days Total U.S. government sponsored enterprises $ 12,507 — 12,507 Residential mortgage-backed securities 408,460 2,447 410,907 Total $ 420,967 2,447 423,414 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 |
FHLB Advances | The scheduled maturities of FHLB advances consist of the following: December 31, 2015 December 31, 2014 (Dollars in thousands) Amount Weighted Rate Amount Weighted Rate Maturing within one year $ 185,091 1.02 % $ 93,979 2.81 % Maturing one year through two years 179 4.19 % 45,042 2.99 % Maturing two years through three years 70,597 1.01 % — — % Maturing three years through four years 167 3.79 % 20,250 2.83 % Maturing four years through five years 945 4.98 % 174 4.74 % Thereafter 137,152 3.12 % 137,499 3.12 % Total $ 394,131 1.76 % $ 296,944 2.98 % |
Subordinated Debentures (Tables
Subordinated Debentures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Terms of Subordinated Debentures | The terms of the subordinated debentures, arranged by maturity date, are reflected in the table below. The amounts include fair value adjustments from acquisitions. December 31, 2015 Variable Rate Structure Maturity Date (Dollars in thousands) Balance Rate First Company Statutory Trust 2001 $ 3,144 3.629 % 3 mo LIBOR plus 3.30% 07/31/2031 First Company Statutory Trust 2003 2,316 3.576 % 3 mo LIBOR plus 3.25% 03/26/2033 Glacier Capital Trust II 46,393 3.071 % 3 mo LIBOR plus 2.75% 04/07/2034 Citizens (ID) Statutory Trust I 5,155 3.176 % 3 mo LIBOR plus 2.65% 06/17/2034 Glacier Capital Trust III 36,083 1.611 % 3 mo LIBOR plus 1.29% 04/07/2036 Glacier Capital Trust IV 30,928 2.082 % 3 mo LIBOR plus 1.57% 09/15/2036 Bank of the San Juans Bancorporation Trust I 1,829 2.234 % 3 mo LIBOR plus 1.82% 03/01/2037 $ 125,848 |
Derivatives and Hedging Activ40
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Interest Rate Swap Derivative Financial Instruments | The Company’s interest rate swap derivative financial instruments as of December 31, 2015 are as follows: (Dollars in thousands) Forecasted Notional Amount Variable Interest Rate 1 Fixed Interest Rate 1 Payment Term 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. |
Summary of Pre-Tax Gains or Losses | The following table presents the pre-tax gains or losses recorded in accumulated other comprehensive income and the Company’s statements of operations relating to the interest rate swap derivative financial instruments: Years ended (Dollars in thousands) December 31, December 31, December 31, Interest rate swaps Amount of (loss) gain recognized in OCI (effective portion) $ (7,857 ) (19,557 ) 18,728 Amount of loss reclassified from OCI to interest expense (5,025 ) (993 ) — 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. December 31, 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 $ 19,499 — 19,499 16,668 — 16,668 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Capital adequacy guidelines and compliance | The following tables illustrate the FRB’s adequacy guidelines and the Company’s and the Bank’s compliance with those guidelines: December 31, 2015 Actual Required for Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 1,131,460 17.17 % $ 527,160 8.00 % N/A N/A Glacier Bank 1,093,669 16.66 % 525,228 8.00 % 656,535 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated $ 1,048,505 15.91 % $ 395,370 6.00 % N/A N/A Glacier Bank 1,010,981 15.40 % 393,921 6.00 % 525,228 8.00 % Common Equity Tier 1 (to risk-weighted assets) Consolidated $ 926,523 14.06 % $ 296,528 4.50 % N/A N/A Glacier 1,010,981 15.40 % 295,441 4.50 % 426,748 6.50 % Tier 1 capital (to average assets) Consolidated $ 1,048,505 12.01 % $ 349,066 4.00 % N/A N/A Glacier Bank 1,010,981 11.66 % 346,715 4.00 % $ 433,394 5.00 % December 31, 2014 Actual Required for Capital Adequacy Purposes To Be Well Capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Total capital (to risk-weighted assets) Consolidated $ 1,065,282 18.93 % $ 450,240 8.00 % $ 562,800 10.00 % Glacier Bank 1,023,669 18.25 % 448,739 8.00 % 560,924 10.00 % Tier 1 capital (to risk-weighted assets) Consolidated $ 994,197 17.67 % $ 225,120 4.00 % $ 337,680 6.00 % Glacier Bank 952,815 16.99 % 224,370 4.00 % 336,554 6.00 % Tier 1 capital (to average assets) Consolidated $ 994,197 12.45 % $ 319,505 4.00 % N/A N/A Glacier Bank 952,815 12.03 % 316,938 4.00 % $ 396,173 5.00 % __________ N/A - Not applicable |
Stock-based Compensation Plan (
Stock-based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Changes in shares granted for stock options | Changes in shares granted for stock options for the year ended December 31, 2015 are summarized as follows: Options Weighted- Average Exercise Price Outstanding at December 31, 2014 1,000 $ 16.73 Exercised (1,000 ) 16.73 Forfeited or expired — — Outstanding at December 31, 2015 — — Exercisable at December 31, 2015 — — |
Activity for restricted stock awards | The following table summarizes the restricted stock award activity for the year ended December 31, 2015 : Restricted Stock Weighted- Average Grant Date Fair Value Non-vested at December 31, 2014 162,053 $ 22.04 Granted 133,414 25.35 Vested (81,294 ) 21.66 Forfeited (8,184 ) 24.36 Non-vested at December 31, 2015 205,989 24.24 |
Other Expenses (Tables)
Other Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Expenses [Abstract] | |
Schedule of Other Expenses | Other expenses consists of the following: Years ended (Dollars in thousands) December 31, December 31, December 31, Debit card expenses $ 6,153 5,802 6,131 Consulting and outside services 5,525 4,179 3,243 VIE write-downs, losses and other expenses 4,528 4,231 4,210 Employee expenses 4,034 3,557 2,686 Postage 3,716 3,391 3,302 Checking and operating expenses 3,554 3,517 3,091 Printing and supplies 3,530 3,547 3,112 Telephone 3,353 2,911 2,498 Loan expenses 2,824 2,513 2,444 Accounting and audit fees 1,401 1,393 1,146 ATM expenses 1,082 1,268 1,087 Legal fees 1,082 1,455 1,728 Other 3,983 3,884 4,178 Total other expenses $ 44,765 41,648 38,856 |
Federal and State Income Taxes
Federal and State Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of consolidated income tax expense | The following table is a summary of consolidated income tax expense: Years ended (Dollars in thousands) December 31, December 31, December 31, Current Federal $ 28,705 21,860 18,377 State 9,374 8,118 7,007 Total current income tax expense 38,079 29,978 25,384 Deferred 1 Federal (3,451 ) 5,016 3,918 State (629 ) 915 715 Total deferred income tax (benefit) expense (4,080 ) 5,931 4,633 Total income tax expense $ 33,999 35,909 30,017 __________ 1 Includes tax benefit of operating loss carryforwards of $391,000 , $0 and $0 for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Summary of effective tax rate | Combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: Years ended December 31, December 31, December 31, Federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal income tax benefit 3.7 % 4.0 % 4.0 % Tax-exempt interest income (12.6 )% (11.5 )% (12.2 )% Tax credits (3.0 )% (2.8 )% (3.2 )% Other, net (0.5 )% (0.5 )% 0.3 % Effective tax rate 22.6 % 24.2 % 23.9 % |
Summary of net deferred tax asset | The tax effect of temporary differences which give rise to a significant portion of deferred tax assets and deferred tax liabilities are as follows: (Dollars in thousands) December 31, December 31, Deferred tax assets Allowance for loan and lease losses $ 50,123 50,013 Other real estate owned 8,380 8,200 Deferred compensation 8,166 5,024 Interest rate swap agreements 7,554 6,467 Acquisition fair market value adjustments 5,842 5,302 Income tax credits and net operating loss carryforwards 3,590 4,652 Employee benefits 3,165 2,839 Other 5,433 4,290 Total gross deferred tax assets 92,253 86,787 Deferred tax liabilities Available-for-sale securities (8,812 ) (17,716 ) Deferred loan costs (7,427 ) (6,419 ) Intangibles (6,272 ) (4,290 ) FHLB stock dividends (4,601 ) (10,342 ) Depreciation of premises and equipment (2,376 ) (2,358 ) Other (4,290 ) (3,925 ) Total gross deferred tax liabilities (33,778 ) (45,050 ) Net deferred tax asset $ 58,475 41,737 |
Income tax returns jurisdictions and years subject to examination | The following schedule summarizes the years that remain subject to examination as of December 31, 2015 : Years ended December 31, Federal 2008, 2009, 2010, 2012, 2013 and 2014 Montana 2012, 2013 and 2014 Idaho 2009, 2010, 2011, 2012, 2013 and 2014 Colorado 2008, 2009, 2010, 2011, 2012, 2013 and 2014 Utah 2012, 2013 and 2014 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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 (Losses) Gains on Derivatives Used for Cash Flow Hedges Total Balance at December 31, 2012 $ 58,245 (10,283 ) 47,962 Other comprehensive (loss) income before reclassification (49,943 ) 11,443 (38,500 ) Amounts reclassified from accumulated other comprehensive income 183 — 183 Net current period other comprehensive (loss) income (49,760 ) 11,443 (38,317 ) Balance at December 31, 2013 8,485 1,160 9,645 Other comprehensive income (loss) before reclassification 19,335 (11,969 ) 7,366 Amounts reclassified from accumulated other comprehensive income 125 608 733 Net current period other comprehensive income (loss) 19,460 (11,361 ) 8,099 Balance at December 31, 2014 27,945 (10,201 ) 17,744 Other comprehensive loss before reclassification (13,968 ) (4,823 ) (18,791 ) Amounts reclassified from accumulated other comprehensive income (42 ) 3,078 3,036 Net current period other comprehensive loss (14,010 ) (1,745 ) (15,755 ) Balance at December 31, 2015 $ 13,935 (11,946 ) 1,989 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share has been computed based on the following: Years ended (Dollars in thousands, except per share data) December 31, December 31, December 31, Net income available to common stockholders, basic and diluted $ 116,127 112,755 95,644 Average outstanding shares - basic 75,542,455 74,641,957 73,191,713 Add: dilutive stock options and awards 53,126 45,358 68,565 Average outstanding shares - diluted 75,595,581 74,687,315 73,260,278 Basic earnings per share $ 1.54 1.51 1.31 Diluted earnings per share $ 1.54 1.51 1.31 |
Parent Holding Company Inform47
Parent Holding Company Information (Condensed) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Financial Condition | Condensed Statements of Financial Condition (Dollars in thousands) December 31, December 31, Assets Cash on hand and in banks $ 1,854 4,019 Interest bearing cash deposits 46,808 51,127 Cash and cash equivalents 48,662 55,146 Investment securities, available-for-sale 65 91 Other assets 11,553 8,511 Investment in subsidiaries 1,175,844 1,121,937 Total assets $ 1,236,124 1,185,685 Liabilities and Stockholders’ Equity Dividends payable $ 22,893 22,557 Subordinated debentures 125,848 125,705 Other liabilities 10,733 9,376 Total liabilities 159,474 157,638 Common stock 761 750 Paid-in capital 736,368 708,356 Retained earnings 337,532 301,197 Accumulated other comprehensive income 1,989 17,744 Total stockholders’ equity 1,076,650 1,028,047 Total liabilities and stockholders’ equity $ 1,236,124 1,185,685 |
Condensed Statements of Operations and Comprehensive Income | Condensed Statements of Operations and Comprehensive Income Years ended (Dollars in thousands) December 31, December 31, December 31, Income Dividends from subsidiaries $ 109,000 78,500 65,445 Loss on sale of investments — — (3,248 ) Other income 196 199 966 Intercompany charges for services 10,562 9,283 7,387 Total income 119,758 87,982 70,550 Expenses Compensation and employee benefits 13,205 10,773 9,175 Other operating expenses 7,313 6,824 6,536 Total expenses 20,518 17,597 15,711 Income before income tax benefit and equity in undistributed net income of subsidiaries 99,240 70,385 54,839 Income tax benefit 3,105 2,919 3,676 Income before equity in undistributed net income of subsidiaries 102,345 73,304 58,515 Equity in undistributed net income of subsidiaries 13,782 39,451 37,129 Net Income $ 116,127 112,755 95,644 Comprehensive Income $ 100,372 120,854 57,327 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Years ended (Dollars in thousands) December 31, December 31, December 31, Operating Activities Net income $ 116,127 112,755 95,644 Adjustments to reconcile net income to net cash provided by operating activities: Subsidiary income in excess of dividends distributed (13,782 ) (39,451 ) (37,129 ) Loss on sale of investments — — 3,248 Excess tax (benefits) deficiencies from stock-based compensation (102 ) (138 ) 223 Net change in other assets and other liabilities 307 140 2,575 Net cash provided by operating activities 102,550 73,306 64,561 Investing Activities Sales of available-for-sale securities — — 23,990 Maturities, prepayments and calls of available-for-sale securities — — 2,571 Changes in investment securities and other stock - intercompany — — (946 ) Net addition of premises and equipment (1,405 ) (179 ) (603 ) Net sale (purchase) of non-marketable equity securities 22 (667 ) — Equity contributions to subsidiaries (28,457 ) (18,115 ) (11,336 ) Net cash (used in) provided by investing activities (29,840 ) (18,961 ) 13,676 Financing Activities Net increase in other borrowed funds 143 143 144 Cash dividends paid (79,456 ) (50,944 ) (44,232 ) Excess tax benefits (deficiencies) from stock-based compensation 102 138 (223 ) Stock-based compensation activity 17 785 4,326 Net cash used in financing activities (79,194 ) (49,878 ) (39,985 ) Net (decrease) increase in cash and cash equivalents (6,484 ) 4,467 38,252 Cash and cash equivalents at beginning of year 55,146 50,679 12,427 Cash and cash equivalents at end of year $ 48,662 55,146 50,679 |
Unaudited Quarterly Financial48
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized unaudited quarterly financial data | Summarized unaudited quarterly financial data is as follows: Quarters ended 2015 (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 77,486 78,617 80,367 83,211 Interest expense 7,382 7,369 7,309 7,215 Net interest income 70,104 71,248 73,058 75,996 Provision for loan losses 765 282 826 411 Net interest income after provision for loan losses 69,339 70,966 72,232 75,585 Non-interest income 22,693 25,802 25,799 24,467 Non-interest expense 55,497 59,945 59,112 62,203 Income before income taxes 36,535 36,823 38,919 37,849 Federal and state income tax expense 8,865 7,488 9,305 8,341 Net income $ 27,670 29,335 29,614 29,508 Basic earnings per share $ 0.37 0.39 0.39 0.39 Diluted earnings per share $ 0.37 0.39 0.39 0.39 Quarters ended 2014 (Dollars in thousands, except per share data) March 31 June 30 September 30 December 31 Interest income $ 74,087 73,963 75,690 76,179 Interest expense 6,640 6,528 6,430 7,368 Net interest income 67,447 67,435 69,260 68,811 Provision for loan losses 1,122 239 360 191 Net interest income after provision for loan losses 66,325 67,196 68,900 68,620 Non-interest income 19,388 22,504 24,432 23,978 Non-interest expense 50,070 52,673 54,238 55,698 Income before income taxes 35,643 37,027 39,094 36,900 Federal and state income tax expense 8,913 8,350 9,800 8,846 Net income $ 26,730 28,677 29,294 28,054 Basic earnings per share $ 0.36 0.38 0.40 0.37 Diluted earnings per share $ 0.36 0.38 0.40 0.37 |
Fair Value of Assets and Liab49
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement of assets and liabilities measured at fair value on a recurring basis | The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 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 $ 47,451 — 47,451 — U.S. government sponsored enterprises 93,167 — 93,167 — State and local governments 885,019 — 885,019 — Corporate bonds 384,163 — 384,163 — Residential mortgage-backed securities 1,200,960 — 1,200,960 — Total assets measured at fair value on a recurring basis $ 2,610,760 — 2,610,760 — Interest rate swaps $ 19,499 — 19,499 — Total liabilities measured at fair value on a recurring basis $ 19,499 — 19,499 — 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 tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Fair Value December 31, 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 $ 7,609 — — 7,609 Collateral-dependent impaired loans, net of ALLL 12,938 — — 12,938 Total assets measured at fair value on a non-recurring basis $ 20,547 — — 20,547 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 Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) December 31, Valuation Technique Unobservable Input Range (Weighted- Average) 1 Other real estate owned $ 4,067 Sales comparison approach Selling costs 7.0% - 10.0% (7.9%) 3,542 Combined approach Selling costs 8.0% - 8.0% (8.0%) $ 7,609 Collateral-dependent impaired loans, net of ALLL $ 162 Cost approach Selling costs 0.0% - 20.0% (6.1%) 9,465 Sales comparison approach Selling costs 8.0% - 20.0% (8.9%) Adjustment to comparables 0.0% - 5.0% (0.0%) 3,311 Combined approach Selling costs 10.0% - 10.0% (10.0%) Adjustment to comparables 20.0% - 20.0% (20.0%) $ 12,938 Fair Value Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) December 31, 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 tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments: Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 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 $ 193,253 193,253 — — Investment securities, available-for-sale 2,610,760 — 2,610,760 — Investment securities, held-to-maturity 702,072 — 729,513 — Loans held for sale 56,514 56,514 — — Loans receivable, net of ALLL 4,948,984 — 4,851,934 132,649 Accrued interest receivable 44,524 44,524 — — Non-marketable equity securities 27,495 — 27,495 — Total financial assets $ 8,583,602 294,291 8,219,702 132,649 Financial liabilities Deposits $ 6,945,008 5,654,638 1,293,506 — FHLB advances 394,131 — 401,530 — Repurchase agreements and other borrowed funds 430,016 — 430,016 — Subordinated debentures 125,848 — 81,840 — Accrued interest payable 3,517 3,517 — — Interest rate swaps 19,499 — 19,499 — Total financial liabilities $ 7,918,019 5,658,155 2,226,391 — Fair Value Measurements At the End of the Reporting Period Using (Dollars in thousands) Carrying Amount December 31, 2014 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 $ 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 — |
Contingencies and Commitments (
Contingencies and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding commitments | The Company had the following outstanding commitments: (Dollars in thousands) December 31, December 31, Commitments to extend credit $ 1,240,923 960,180 Letters of credit 22,415 16,531 Total outstanding commitments $ 1,263,338 976,711 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Consideration transferred, identifiable net assets acquired and resulting bargain purchase gain or goodwill | The following table discloses the calculation of the fair value of the consideration transferred, the total identifiable net assets acquired and the resulting goodwill or bargain purchase gain arising from the Cañon, CB and FNBR acquisitions: Cañon CB FNBR (Dollars in thousands) October 31, February 28, August 31, Fair value of consideration transferred Fair value of Company shares issued, net of equity issuance costs $ 15,163 10,776 15,127 Cash consideration for outstanding shares 16,145 12,219 16,690 Contingent consideration — — — Total fair value of consideration transferred 31,308 22,995 31,817 Recognized amounts of identifiable assets acquired and liabilities assumed Identifiable assets acquired Cash and cash equivalents 17,860 31,931 14,578 Investment securities 68,486 42,350 157,018 Loans receivable 159,759 84,689 137,488 Core deposit intangible 4,532 2,087 4,199 Accrued income and other assets 9,689 13,580 35,884 Total identifiable assets acquired 260,326 174,637 349,167 Liabilities assumed Deposits 237,326 146,820 309,641 FHLB advances and repurchase agreements — 3,292 — Accrued expenses and other liabilities 1,487 2,667 7,029 Total liabilities assumed 238,813 152,779 316,670 Total identifiable net assets 21,513 21,858 32,497 Goodwill (bargain purchase gain) recognized $ 9,795 1,137 (680 ) |
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 Cañon and CB acquisitions had occurred on January 1, 2014: Years ended (Dollars in thousands) December 31, December 31, Net interest income and non-interest income $ 401,140 383,387 Net income 115,613 115,899 The following unaudited pro forma summary presents consolidated information of the Company as if the FNBR acquisition had occurred on January 1, 2013: Years ended (Dollars in thousands) December 31, December 31, Net interest income and non-interest income $ 371,772 340,393 Net income 113,364 99,275 |
Nature of Operations and Summ52
Nature of Operations and Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Nature of Operations and Summary of Significant Accounting Policies | ||
Number of Bank Divisions | 13 | |
Number of Operating Segments | 1 | |
Maximum Period of Original Maturity to be Included in Cash and Cash Equivalents | 3 months | |
Federal Reserve Balance or Cash on Hand Required | $ 34,309,000 | |
Minimum Period Past Due to Consider Loans as Delinquent | 30 days | |
Minimum Period Past Due to Consider Loans as Non Accrual | 90 days | |
Number of Quarters used to Determine Historical Loss Experience | 12 | |
Minimum Number Days Delinquent to Charge off Consumer Loans | 120 days | |
Long-lived assets considered impaired | $ 0 | $ 0 |
Maximum period up to which purchase price of business is allocated to assets acquired and liabilities assumed | 1 year | |
Number of Reporting Units Subsequent to Aggregation for Goodwill Assessment | 1 | |
Bank Owned Life Insurance | $ 49,534,000 | $ 46,030,000 |
Percentage of likelihood for term more likely than not | 50.00% | |
Number of Steps to Achieve Core Revenue Recognition Principal | 5 | |
Minimum Range | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Number of years for home equity loan origination term | 10 years | |
Minimum Range | Office Buildings | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 15 years | |
Minimum Range | Furniture, fixtures and equipment | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 3 years | |
Maximum Range | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Number of years for home equity loan origination term | 15 years | |
Maximum Range | Office Buildings | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 40 years | |
Maximum Range | Furniture, fixtures and equipment | ||
Nature of Operations and Summary of Significant Accounting Policies | ||
Useful life of premises and equipment | 10 years |
Amortized Cost, Gross Unrealize
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale | ||
Amortized Cost | $ 2,588,013 | $ 2,341,767 |
Gross Unrealized Gains | 41,065 | 53,468 |
Gross Unrealized Losses | (18,318) | (7,807) |
Fair Value | 2,610,760 | 2,387,428 |
Held-to-maturity | ||
Amortized Cost | 702,072 | 520,997 |
Gross Unrealized Gains | 31,863 | 32,925 |
Gross Unrealized Losses | (4,422) | (2,976) |
Fair Value | 729,513 | 550,946 |
Total | ||
Amortized Cost | 3,290,085 | 2,862,764 |
Gross Unrealized Gains | 72,928 | 86,393 |
Gross Unrealized Losses | (22,740) | (10,783) |
Fair Value | 3,340,273 | 2,938,374 |
U.S. government and federal agency | ||
Available-for-sale | ||
Amortized Cost | 47,868 | 44 |
Gross Unrealized Gains | 15 | 0 |
Gross Unrealized Losses | (432) | 0 |
Fair Value | 47,451 | 44 |
U.S. government sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 93,230 | 21,916 |
Gross Unrealized Gains | 100 | 31 |
Gross Unrealized Losses | (163) | (2) |
Fair Value | 93,167 | 21,945 |
State and local governments | ||
Available-for-sale | ||
Amortized Cost | 856,738 | 962,365 |
Gross Unrealized Gains | 34,159 | 40,173 |
Gross Unrealized Losses | (5,878) | (4,569) |
Fair Value | 885,019 | 997,969 |
Held-to-maturity | ||
Amortized Cost | 702,072 | 520,997 |
Gross Unrealized Gains | 31,863 | 32,925 |
Gross Unrealized Losses | (4,422) | (2,976) |
Fair Value | 729,513 | 550,946 |
Corporate bonds | ||
Available-for-sale | ||
Amortized Cost | 386,629 | 313,545 |
Gross Unrealized Gains | 611 | 2,059 |
Gross Unrealized Losses | (3,077) | (750) |
Fair Value | 384,163 | 314,854 |
Residential mortgage-backed securities | ||
Available-for-sale | ||
Amortized Cost | 1,203,548 | 1,043,897 |
Gross Unrealized Gains | 6,180 | 11,205 |
Gross Unrealized Losses | (8,768) | (2,486) |
Fair Value | $ 1,200,960 | $ 1,052,616 |
Investment Securities Investmen
Investment Securities Investment Securities Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Available-for-Sale, Amortized Cost | |||
Due within one year | $ 140,703 | ||
Due after one year through five years | 486,235 | ||
Due after five years through ten years | 128,158 | ||
Due after ten years | 629,369 | ||
Total before residential mortgage-backed securities | 1,384,465 | ||
Total | 2,588,013 | $ 2,341,767 | |
Available-for-Sale, Fair Value | |||
Due with one year | 141,230 | ||
Due after one year through five years | 484,467 | ||
Due after five years through ten years | 131,883 | ||
Due after ten years | 652,220 | ||
Total before residential mortgage-backed securities | 1,409,800 | ||
Total | 2,610,760 | 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 | 25,073 | ||
Due after ten years | 676,999 | ||
Total before residential mortgage-backed securities | 702,072 | ||
Amortized Cost | 702,072 | 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 | 25,605 | ||
Due after ten years | 703,908 | ||
Total before residential mortgage-backed securities | 729,513 | ||
Total | 729,513 | 550,946 | |
Residential mortgage-backed securities | |||
Available-for-Sale, Amortized Cost | |||
Residential mortgage-backed securities | [1] | 1,203,548 | |
Total | 1,203,548 | 1,043,897 | |
Available-for-Sale, Fair Value | |||
Residential mortgage-backed securities | [1] | 1,200,960 | |
Total | 1,200,960 | $ 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. |
Gain or Loss on Sale of Investm
Gain or Loss on Sale of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Available-for-sale | ||||
Proceeds from sales and calls of investment securities | $ 167,660 | $ 219,849 | $ 181,971 | |
Gross realized gains | [1] | 1,877 | 501 | 3,723 |
Gross realized losses | [1] | (1,808) | (705) | (4,022) |
Held-to-maturity | ||||
Proceeds from calls of investment securities | 20,997 | 8,930 | 0 | |
Gross realized gains | [1] | 50 | 22 | 0 |
Gross realized losses | [1] | $ (100) | $ (6) | $ 0 |
[1] | The gain or loss on the sale or call of each investment security is determined by the specific identification method. |
Investments with an Unrealized
Investments with an Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale, Fair Value | ||
Less than 12 Months | $ 1,163,595 | $ 358,126 |
12 Months or More | 182,928 | 202,027 |
Total | 1,346,523 | 560,153 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (11,262) | (2,746) |
12 Months or Longer | (7,056) | (5,061) |
Total | (18,318) | (7,807) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 42,322 | 18,643 |
12 Months or More | 81,709 | 76,761 |
Total | 124,031 | 95,404 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | (594) | (624) |
12 Months or More | (3,828) | (2,352) |
Total | (4,422) | (2,976) |
U.S. government and federal agency | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 42,493 | 0 |
12 Months or More | 2 | 3 |
Total | 42,495 | 3 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (432) | 0 |
12 Months or Longer | 0 | 0 |
Total | (432) | 0 |
U.S. government sponsored enterprises | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 60,010 | 13,793 |
12 Months or More | 0 | 0 |
Total | 60,010 | 13,793 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (163) | (2) |
12 Months or Longer | 0 | 0 |
Total | (163) | (2) |
State and local governments | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 102,422 | 91,082 |
12 Months or More | 115,943 | 115,927 |
Total | 218,365 | 207,009 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (1,629) | (1,273) |
12 Months or Longer | (4,249) | (3,296) |
Total | (5,878) | (4,569) |
Held-to-maturity, Fair Value | ||
Less than 12 Months | 42,322 | 18,643 |
12 Months or More | 81,709 | 76,761 |
Total | 124,031 | 95,404 |
Held-to-maturity, Unrealized Loss | ||
Less than 12 Months | (594) | (624) |
12 Months or More | (3,828) | (2,352) |
Total | (4,422) | (2,976) |
Corporate bonds | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 228,258 | 60,289 |
12 Months or More | 13,962 | 7,874 |
Total | 242,220 | 68,163 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (1,812) | (545) |
12 Months or Longer | (1,265) | (205) |
Total | (3,077) | (750) |
Residential mortgage-backed securities | ||
Available-for-sale, Fair Value | ||
Less than 12 Months | 730,412 | 192,962 |
12 Months or More | 53,021 | 78,223 |
Total | 783,433 | 271,185 |
Available-for-sale, Unrealized Loss | ||
Less than 12 Months | (7,226) | (926) |
12 Months or Longer | (1,542) | (1,560) |
Total | $ (8,768) | $ (2,486) |
Investment Securities (Details
Investment Securities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Investment securities pledged as collateral | $ 1,824,819,000 | $ 1,673,263,000 |
Other-than-temporary impairment on investment securities | $ 0 | $ 0 |
Loans Receivable, Net Summary o
Loans Receivable, Net Summary of Loans Receivable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of Loans Receivable | |||
Loans receivable | [1] | $ 5,078,681,000 | $ 4,488,095,000 |
Allowance for loan and lease losses | (129,697,000) | (129,753,000) | |
Loans receivable, net | $ 4,948,984,000 | $ 4,358,342,000 | |
Weighted Average Interest Rate on Loans | 4.84% | 4.86% | |
Net deferred fees, costs, premiums, and discounts included in loans receivable | $ 15,529,000 | $ 13,710,000 | |
Residential Real Estate | |||
Summary of Loans Receivable | |||
Loans receivable | 688,912,000 | 611,463,000 | |
Allowance for loan and lease losses | (14,427,000) | (14,680,000) | |
Commercial Real Estate | |||
Summary of Loans Receivable | |||
Loans receivable | 2,633,953,000 | 2,337,548,000 | |
Allowance for loan and lease losses | (67,877,000) | (67,799,000) | |
Other Commercial | |||
Summary of Loans Receivable | |||
Loans receivable | 1,099,564,000 | 925,900,000 | |
Allowance for loan and lease losses | (32,525,000) | (30,891,000) | |
Total Commercial | |||
Summary of Loans Receivable | |||
Loans receivable | 3,733,517,000 | 3,263,448,000 | |
Home Equity | |||
Summary of Loans Receivable | |||
Loans receivable | 420,901,000 | 394,670,000 | |
Allowance for loan and lease losses | (8,998,000) | (9,963,000) | |
Other Consumer | |||
Summary of Loans Receivable | |||
Loans receivable | 235,351,000 | 218,514,000 | |
Allowance for loan and lease losses | (5,870,000) | (6,420,000) | |
Total Consumer and Other | |||
Summary of Loans Receivable | |||
Loans receivable | $ 656,252,000 | $ 613,184,000 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $15,529,000 and $13,710,000 at December 31, 2015 and 2014, respectively. |
ALLL Activity (Details)
ALLL Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | $ 129,753 | $ 130,351 | $ 129,753 | $ 130,351 | $ 130,854 | ||||||
Provision for loan losses | $ 411 | $ 826 | $ 282 | 765 | $ 191 | $ 360 | $ 239 | 1,122 | 2,284 | 1,912 | 6,887 |
Charge-offs | (7,002) | (7,603) | (13,643) | ||||||||
Recoveries | 4,662 | 5,093 | 6,253 | ||||||||
Balance at end of period | 129,697 | 129,753 | 129,697 | 129,753 | 130,351 | ||||||
Residential Real Estate | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 14,680 | 14,067 | 14,680 | 14,067 | 15,482 | ||||||
Provision for loan losses | 640 | 716 | (921) | ||||||||
Charge-offs | (985) | (431) | (793) | ||||||||
Recoveries | 92 | 328 | 299 | ||||||||
Balance at end of period | 14,427 | 14,680 | 14,427 | 14,680 | 14,067 | ||||||
Commercial Real Estate | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 67,799 | 70,332 | 67,799 | 70,332 | 74,398 | ||||||
Provision for loan losses | (696) | (2,877) | (3,670) | ||||||||
Charge-offs | (1,920) | (1,802) | (3,736) | ||||||||
Recoveries | 2,694 | 2,146 | 3,340 | ||||||||
Balance at end of period | 67,877 | 67,799 | 67,877 | 67,799 | 70,332 | ||||||
Other Commercial | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 30,891 | 28,630 | 30,891 | 28,630 | 21,567 | ||||||
Provision for loan losses | 3,030 | 3,708 | 10,271 | ||||||||
Charge-offs | (2,322) | (3,058) | (4,671) | ||||||||
Recoveries | 926 | 1,611 | 1,463 | ||||||||
Balance at end of period | 32,525 | 30,891 | 32,525 | 30,891 | 28,630 | ||||||
Home Equity | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | 9,963 | 9,299 | 9,963 | 9,299 | 10,659 | ||||||
Provision for loan losses | (480) | 1,254 | 868 | ||||||||
Charge-offs | (809) | (1,038) | (2,594) | ||||||||
Recoveries | 324 | 448 | 366 | ||||||||
Balance at end of period | 8,998 | 9,963 | 8,998 | 9,963 | 9,299 | ||||||
Other Consumer | |||||||||||
Allowance for loan and lease losses | |||||||||||
Balance at beginning of period | $ 6,420 | $ 8,023 | 6,420 | 8,023 | 8,748 | ||||||
Provision for loan losses | (210) | (889) | 339 | ||||||||
Charge-offs | (966) | (1,274) | (1,849) | ||||||||
Recoveries | 626 | 560 | 785 | ||||||||
Balance at end of period | $ 5,870 | $ 6,420 | $ 5,870 | $ 6,420 | $ 8,023 |
Loans Receivable, Net ALLL and
Loans Receivable, Net ALLL and Loans Receivable Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | $ 8,124 | $ 11,597 | |
Collectively evaluated for impairment | 121,573 | 118,156 | |
Total allowance for loan and lease losses | 129,697 | 129,753 | |
Individually evaluated for impairment | 140,773 | 161,366 | |
Collectively evaluated for impairment | 4,937,908 | 4,326,729 | |
Total loans receivable | [1] | 5,078,681 | 4,488,095 |
Residential Real Estate | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 782 | 853 | |
Collectively evaluated for impairment | 13,645 | 13,827 | |
Total allowance for loan and lease losses | 14,427 | 14,680 | |
Individually evaluated for impairment | 20,767 | 19,576 | |
Collectively evaluated for impairment | 668,145 | 591,887 | |
Total loans receivable | 688,912 | 611,463 | |
Commercial Real Estate | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 1,629 | 2,967 | |
Collectively evaluated for impairment | 66,248 | 64,832 | |
Total allowance for loan and lease losses | 67,877 | 67,799 | |
Individually evaluated for impairment | 85,845 | 105,264 | |
Collectively evaluated for impairment | 2,548,108 | 2,232,284 | |
Total loans receivable | 2,633,953 | 2,337,548 | |
Other Commercial | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 5,277 | 6,836 | |
Collectively evaluated for impairment | 27,248 | 24,055 | |
Total allowance for loan and lease losses | 32,525 | 30,891 | |
Individually evaluated for impairment | 23,874 | 25,321 | |
Collectively evaluated for impairment | 1,075,690 | 900,579 | |
Total loans receivable | 1,099,564 | 925,900 | |
Home Equity | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 64 | 447 | |
Collectively evaluated for impairment | 8,934 | 9,516 | |
Total allowance for loan and lease losses | 8,998 | 9,963 | |
Individually evaluated for impairment | 6,493 | 6,901 | |
Collectively evaluated for impairment | 414,408 | 387,769 | |
Total loans receivable | 420,901 | 394,670 | |
Other Consumer | |||
Allowance for Loan and Lease Losses and Loans Receivable | |||
Individually evaluated for impairment | 372 | 494 | |
Collectively evaluated for impairment | 5,498 | 5,926 | |
Total allowance for loan and lease losses | 5,870 | 6,420 | |
Individually evaluated for impairment | 3,794 | 4,304 | |
Collectively evaluated for impairment | 231,557 | 214,210 | |
Total loans receivable | $ 235,351 | $ 218,514 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $15,529,000 and $13,710,000 at December 31, 2015 and 2014, respectively. |
Impaired Loans (Details)
Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | $ 34,683 | $ 45,688 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 36,157 | 48,477 |
Specific valuation allowance | 8,124 | 11,597 |
Loans with a Specific Valuation Allowance, Average Balance | 36,176 | 53,339 |
Loans without a Specific Valuation Allowance, Recorded Balance | 106,090 | 115,678 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 132,718 | 145,038 |
Loans without a Specific Valuation Allowance, Average Balance | 116,356 | 128,645 |
Recorded balance | 140,773 | 161,366 |
Unpaid principal balance | 168,875 | 193,515 |
Average balance | 152,532 | 181,984 |
Residential Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 8,253 | 4,110 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 9,198 | 4,276 |
Specific valuation allowance | 782 | 853 |
Loans with a Specific Valuation Allowance, Average Balance | 6,393 | 5,480 |
Loans without a Specific Valuation Allowance, Recorded Balance | 12,514 | 15,466 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 13,969 | 16,683 |
Loans without a Specific Valuation Allowance, Average Balance | 13,615 | 15,580 |
Recorded balance | 20,767 | 19,576 |
Unpaid principal balance | 23,167 | 20,959 |
Average balance | 20,008 | 21,060 |
Commercial Real Estate | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 12,554 | 27,155 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 12,581 | 28,048 |
Specific valuation allowance | 1,629 | 2,967 |
Loans with a Specific Valuation Allowance, Average Balance | 15,827 | 24,519 |
Loans without a Specific Valuation Allowance, Recorded Balance | 73,291 | 78,109 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 94,028 | 100,266 |
Loans without a Specific Valuation Allowance, Average Balance | 78,684 | 89,015 |
Recorded balance | 85,845 | 105,264 |
Unpaid principal balance | 106,609 | 128,314 |
Average balance | 94,511 | 113,534 |
Other Commercial | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 11,923 | 11,377 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 12,335 | 12,461 |
Specific valuation allowance | 5,277 | 6,836 |
Loans with a Specific Valuation Allowance, Average Balance | 11,768 | 19,874 |
Loans without a Specific Valuation Allowance, Recorded Balance | 11,951 | 13,944 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 15,539 | 19,117 |
Loans without a Specific Valuation Allowance, Average Balance | 15,479 | 14,024 |
Recorded balance | 23,874 | 25,321 |
Unpaid principal balance | 27,874 | 31,578 |
Average balance | 27,247 | 33,898 |
Home Equity | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 102 | 1,214 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 109 | 1,336 |
Specific valuation allowance | 64 | 447 |
Loans with a Specific Valuation Allowance, Average Balance | 426 | 1,039 |
Loans without a Specific Valuation Allowance, Recorded Balance | 6,391 | 5,687 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 7,153 | 6,403 |
Loans without a Specific Valuation Allowance, Average Balance | 6,350 | 7,163 |
Recorded balance | 6,493 | 6,901 |
Unpaid principal balance | 7,262 | 7,739 |
Average balance | 6,776 | 8,202 |
Other Consumer | ||
Summary of the impaired loans by portfolio class of loans | ||
Loans with a Specific Valuation Allowance, Recorded Balance | 1,851 | 1,832 |
Loans with a Specific Valuation Allowance, Unpaid Principal Balance | 1,934 | 2,356 |
Specific valuation allowance | 372 | 494 |
Loans with a Specific Valuation Allowance, Average Balance | 1,762 | 2,427 |
Loans without a Specific Valuation Allowance, Recorded Balance | 1,943 | 2,472 |
Loans without a Specific Valuation Allowance, Unpaid Principal Balance | 2,029 | 2,569 |
Loans without a Specific Valuation Allowance, Average Balance | 2,228 | 2,863 |
Recorded balance | 3,794 | 4,304 |
Unpaid principal balance | 3,963 | 4,925 |
Average balance | $ 3,990 | $ 5,290 |
Loans Receivable Aging Analysis
Loans Receivable Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Loan portfolio aging analysis | |||
Non-accrual loans | $ 51,133 | $ 61,882 | |
Total past due and non-accrual loans | 72,677 | 88,000 | |
Current loans receivable | 5,006,004 | 4,400,095 | |
Total loans receivable | [1] | 5,078,681 | 4,488,095 |
Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 15,801 | 19,139 | |
Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 3,612 | 6,765 | |
Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 2,131 | 214 | |
Residential Real Estate | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 8,073 | 6,798 | |
Total past due and non-accrual loans | 13,929 | 12,025 | |
Current loans receivable | 674,983 | 599,438 | |
Total loans receivable | 688,912 | 611,463 | |
Residential Real Estate | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 4,895 | 3,506 | |
Residential Real Estate | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 961 | 1,686 | |
Residential Real Estate | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 0 | 35 | |
Commercial Real Estate | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 28,819 | 39,717 | |
Total past due and non-accrual loans | 35,284 | 51,265 | |
Current loans receivable | 2,598,669 | 2,286,283 | |
Total loans receivable | 2,633,953 | 2,337,548 | |
Commercial Real Estate | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 4,393 | 7,925 | |
Commercial Real Estate | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,841 | 3,592 | |
Commercial Real Estate | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 231 | 31 | |
Other Commercial | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 7,691 | 8,421 | |
Total past due and non-accrual loans | 13,361 | 14,414 | |
Current loans receivable | 1,086,203 | 911,486 | |
Total loans receivable | 1,099,564 | 925,900 | |
Other Commercial | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 3,564 | 5,310 | |
Other Commercial | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 286 | 609 | |
Other Commercial | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,820 | 74 | |
Home Equity | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 6,022 | 5,969 | |
Total past due and non-accrual loans | 7,918 | 8,039 | |
Current loans receivable | 412,983 | 386,631 | |
Total loans receivable | 420,901 | 394,670 | |
Home Equity | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,601 | 1,374 | |
Home Equity | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 280 | 679 | |
Home Equity | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | 15 | 17 | |
Other Consumer | |||
Loan portfolio aging analysis | |||
Non-accrual loans | 528 | 977 | |
Total past due and non-accrual loans | 2,185 | 2,257 | |
Current loans receivable | 233,166 | 216,257 | |
Total loans receivable | 235,351 | 218,514 | |
Other Consumer | Accruing loans 30 to 59 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 1,348 | 1,024 | |
Other Consumer | Accruing loans 60 to 89 days past due | |||
Loan portfolio aging analysis | |||
Past due loans | 244 | 199 | |
Other Consumer | Accruing loans 90 days or more past due | |||
Loan portfolio aging analysis | |||
Past due loans | $ 65 | $ 57 | |
[1] | Includes net deferred fees, costs, premiums and discounts of $15,529,000 and $13,710,000 at December 31, 2015 and 2014, respectively. |
Troubled Debt Restructurings (D
Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | |
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | Loan | 64 | 51 | 63 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $ 22,316 | $ 37,781 | $ 29,046 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | $ 23,110 | $ 37,075 | $ 29,359 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 7 | 5 | 5 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 2,556 | $ 4,453 | $ 849 |
Residential Real Estate | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | Loan | 3 | 0 | 9 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $ 2,259 | $ 0 | $ 1,907 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | $ 2,203 | $ 0 | $ 2,293 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 1 | 0 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 1,947 | $ 0 | $ 265 |
Commercial Real Estate | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | Loan | 25 | 18 | 21 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $ 8,877 | $ 21,760 | $ 20,334 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | $ 9,927 | $ 21,803 | $ 20,334 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 1 | 2 | 1 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 78 | $ 927 | $ 79 |
Other Commercial | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | Loan | 22 | 24 | 23 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $ 10,545 | $ 12,522 | $ 6,087 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | $ 10,325 | $ 11,884 | $ 6,087 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 4 | 1 | 3 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 529 | $ 693 | $ 505 |
Home Equity | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | Loan | 1 | 6 | 2 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $ 137 | $ 3,385 | $ 147 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | $ 157 | $ 3,274 | $ 147 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 0 | 2 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 0 | $ 2,833 | $ 0 |
Other Consumer | |||
Troubled Debt Restructurings | |||
Troubled Debt Restructurings, Number of Loans | Loan | 13 | 3 | 8 |
Troubled Debt Restructurings, Pre-Modification Recorded Balance | $ 498 | $ 114 | $ 571 |
Troubled Debt Restructurings, Post-Modification Recorded Balance | $ 498 | $ 114 | $ 498 |
TDRs that Subsequently Defaulted, Number of Loans | Loan | 1 | 0 | 0 |
TDRs that Subsequently Defaulted, Recorded Balance | $ 2 | $ 0 | $ 0 |
Loans Receivable, Net (Details
Loans Receivable, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans Receivable | |||
Number of segments in loan portfolio | 3 | ||
Percentage of consolidated stockholders equity exceeding which no borrower had outstanding loans or commitments | 10.00% | ||
Variable rate loans | $ 3,298,198,000 | ||
Fixed rate loans | 1,780,483,000 | ||
Loan sold and serviced for others | 128,499,000 | $ 133,768,000 | $ 148,376,000 |
Loans pledged as collateral | 2,899,827,000 | ||
Aggregate amount of loans outstanding to related parties | 57,764,000 | 55,427,000 | |
New loans to related parties | 10,435,000 | ||
Repayments of loans by related parties | 8,098,000 | ||
Interest income that would have been recorded on non-accrual loans | 2,471,000 | 3,005,000 | 4,122,000 |
TDR With Pre Modification Loan Balance for Which Oreo Was Received | 8,893,000 | 12,674,000 | 18,345,000 |
Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process | 3,253,000 | 698,000 | |
OREO Secured by Residential Real Estate | 1,496,000 | 2,322,000 | |
Additional outstanding commitments on TDRs | 2,803,000 | 4,263,000 | |
Charge-offs on TDRs | $ 1,310,000 | $ 1,361,000 | $ 1,945,000 |
Premises and Equipment, Net of
Premises and Equipment, Net of Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Premises and Equipment, Net of Accumulated Depreciation | ||
Accumulated depreciation | $ (110,696) | $ (99,409) |
Premises and equipment, net | 194,030 | 179,175 |
Land | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | 30,108 | 27,605 |
Office buildings and construction in progress | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | 187,787 | 172,544 |
Furniture, fixtures and equipment | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | 78,803 | 70,622 |
Leasehold improvements | ||
Premises and Equipment, Net of Accumulated Depreciation | ||
Premises and equipment, gross | $ 8,028 | $ 7,813 |
Premises and Equipment Future M
Premises and Equipment Future Minimum Rental Commitments under Operating and Capital Leases (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Capital Leases | |
For the Year Ended December 31, 2016 | $ 92 |
For the Year Ended December 31, 2017 | 92 |
For the Year Ended December 31, 2018 | 92 |
For the Year Ended December 31, 2019 | 92 |
For the Year Ended December 31, 2020 | 92 |
Thereafter | 11 |
Total minimum lease payments | 471 |
Less: Amount representing interest | 64 |
Present value of minimum lease payments | 407 |
Less: Current portion of obligations under capital leases | 72 |
Long-term portion of obligations under capital leases | 335 |
Operating Leases | |
For the Year Ended December 31, 2016 | 2,443 |
For the Year Ended December 31, 2017 | 2,132 |
For the Year Ended December 31, 2018 | 1,877 |
For the Year Ended December 31, 2019 | 1,682 |
For the Year Ended December 31, 2020 | 1,160 |
Thereafter | 3,202 |
Total Minimum Lease Payments | 12,496 |
Total | |
For the Year Ended December 31, 2016 | 2,535 |
For the Year Ended December 31, 2017 | 2,224 |
For the Year Ended December 31, 2018 | 1,969 |
For the Year Ended December 31, 2019 | 1,774 |
For the Year Ended December 31, 2020 | 1,252 |
Thereafter | 3,213 |
Total Minimum Lease Payments | $ 12,967 |
Premises and Equipment (Details
Premises and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises and Equipment | |||
Depreciation expense | $ 14,365,000 | $ 12,108,000 | $ 10,485,000 |
Total rent expense | 3,137,000 | 2,786,000 | 2,912,000 |
Related party rent expense | $ 150,000 | $ 146,000 | $ 142,000 |
Net Carrying Value of Core Depo
Net Carrying Value of Core Deposit Intangibles (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Core Deposit Intangibles and Aggregate Amortization Expense | |||
Net carrying value | $ 14,555,000 | $ 10,900,000 | |
Aggregate amortization expense | 2,964,000 | 2,811,000 | $ 2,401,000 |
Core Deposits Intangibles | |||
Net Core Deposit Intangibles and Aggregate Amortization Expense | |||
Gross carrying value | 38,527,000 | 32,056,000 | 27,857,000 |
Accumulated amortization | (23,972,000) | (21,156,000) | (18,345,000) |
Net carrying value | 14,555,000 | 10,900,000 | 9,512,000 |
Aggregate amortization expense | 2,964,000 | 2,811,000 | 2,401,000 |
Estimated Amortization Expense | |||
For the year ending December 31, 2016 | 2,923,000 | ||
For the year ending December 31, 2017 | 2,027,000 | ||
For the year ending December 31, 2018 | 1,598,000 | ||
For the year ending December 31, 2019 | 1,512,000 | ||
For the year ending December 31, 2020 | 1,465,000 | ||
Core Deposit Intangibles Acquired During the Year | |||
Core Deposit Intangibles Acquired | $ 6,619,000 | $ 4,199,000 | $ 5,739,000 |
Core Deposits Intangibles | Weighted Average | |||
Net Core Deposit Intangibles and Aggregate Amortization Expense | |||
Weighted-average amortization period | 9 years 8 months |
Changes in the Carrying Value o
Changes in the Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill Roll Forward | |||
Net carrying value at beginning of period | $ 129,706 | $ 129,706 | $ 106,100 |
Acquisitions | 10,932 | 0 | 23,606 |
Net carrying value at end of period | $ 140,638 | $ 129,706 | $ 129,706 |
Other Intangible Assets and G70
Other Intangible Assets and Goodwill Net Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Gross carrying value of goodwill and the accumulated impairment charge | |||||
Gross carrying value | $ 180,797 | $ 169,865 | |||
Accumulated impairment charge | [1] | (40,159) | (40,159) | ||
Net carrying value | $ 140,638 | $ 129,706 | $ 129,706 | $ 106,100 | |
[1] | A goodwill impairment charge was recognized in 2011 and was due to high levels of volatility and dislocation in bank stock prices nationwide. |
Variable Interest Entities VIE
Variable Interest Entities VIE Carrying Amounts Included in Financial Statements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CDE (NMTC) | ||
Carrying amounts of the VIEs' assets and liabilities | ||
Loans receivable | $ 57,126 | $ 36,077 |
Premises and equipment, net | 0 | 0 |
Accrued interest receivable | 117 | 116 |
Other assets | 887 | 616 |
Total assets | 58,130 | 36,809 |
Other borrowed funds | 4,555 | 4,555 |
Accrued interest payable | 4 | 4 |
Other liabilities | 139 | 185 |
Total liabilities | 4,698 | 4,744 |
LIHTC | ||
Carrying amounts of the VIEs' assets and liabilities | ||
Loans receivable | 0 | 0 |
Premises and equipment, net | 13,503 | 13,106 |
Accrued interest receivable | 0 | 0 |
Other assets | 542 | 258 |
Total assets | 14,045 | 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 VI72
Variable Interest Entities VIE Net Income or Loss and Tax Credits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CDE (NMTC) | ||
Consolidated VIEs | ||
VIE loss | $ (1,286) | $ (879) |
Federal income tax credits | 2,138 | 1,744 |
LIHTC | ||
Consolidated VIEs | ||
VIE loss | (974) | (1,082) |
Federal income tax credits | $ 1,175 | $ 1,270 |
Scheduled Maturities of Time De
Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Maturities of Time Deposits | |
For the year ending December 31, 2016 | $ 775,227 |
For the year ending December 31, 2017 | 149,999 |
For the year ending December 31, 2018 | 56,554 |
For the year ending December 31, 2019 | 40,696 |
For the year ending December 31, 2020 | 36,674 |
Thereafter | 1,500 |
Total | $ 1,060,650 |
Deposits (Details Textual)
Deposits (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits | ||
FDIC Insurance limit | $ 250,000 | |
Time deposits that meet or exceed FDIC Insurance limit | 258,573,000 | $ 314,752,000 |
Overdraft demand deposits reclassified as loans | 2,966,000 | 4,385,000 |
Deposits with related parties | $ 15,730,000 | $ 16,287,000 |
Borrowings Summary of Repurchas
Borrowings Summary of Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 423,414 | $ 397,107 |
Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 420,967 | |
Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 2,447 | |
U.S. government sponsored enterprises | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 12,507 | |
U.S. government sponsored enterprises | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 12,507 | |
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 | 410,907 | 397,107 |
Residential mortgage-backed securities | Overnight and Continuous | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | 408,460 | 391,997 |
Residential mortgage-backed securities | Up to 30 Days | ||
Securities Sold Under Agreements to Repurchase | ||
Repurchase Agreements | $ 2,447 | $ 5,110 |
Scheduled Maturities of FHLB Ad
Scheduled Maturities of FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
FHLB Advances | ||
Maturing within one year, Amount | $ 185,091 | $ 93,979 |
Maturing within one year, Weighted rate | 1.02% | 2.81% |
Maturing one year through two years, Amount | $ 179 | $ 45,042 |
Maturing one year through two years, Weighted rate | 4.19% | 2.99% |
Maturing two years through three years, Amount | $ 70,597 | $ 0 |
Maturing two years through three years, Weighted rate | 1.01% | 0.00% |
Maturing three years through four years, Amount | $ 167 | $ 20,250 |
Maturing three years through four years, Weighted rate | 3.79% | 2.83% |
Maturing four years through five years, Amount | $ 945 | $ 174 |
Maturing four years through five years, Weighted rate | 4.98% | 4.74% |
Thereafter, Amount | $ 137,152 | $ 137,499 |
Thereafter, Weighted rate | 3.12% | 3.12% |
Total, Amount | $ 394,131 | $ 296,944 |
Total, Weighted rate | 1.76% | 2.98% |
Borrowings (Details Textual)
Borrowings (Details Textual) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Borrowings | ||
Repurchase Agreements | $ 423,414,000 | $ 397,107,000 |
Securities Pledged for Repurchase Agreements | 446,838,000 | 479,345,000 |
FHLB advances | 394,131,000 | $ 296,944,000 |
Lines of credit | 255,000,000 | |
FHLB Put Options | ||
Borrowings | ||
FHLB advances | $ 200,000,000 | |
Minimum rate to exercise put option | 8.00% | |
FHLB Advances, Due Date, Earliest | 2,016 | |
FHLB Advances, Due Date, Last | 2,021 | |
FHLB Advances, Interest Rate, Range from | 2.73% | |
FHLB Advances, Interest Rate, Range to | 3.43% |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Terms of Subordinated Debentures | ||
Balance | $ 125,848 | $ 125,705 |
First Company Statutory Trust 2001 | ||
Terms of Subordinated Debentures | ||
Balance | $ 3,144 | |
Rate at December 31, 2015 | 3.629% | |
Variable Rate Structure | 3 mo LIBOR plus 3.30% | |
LIBOR Rate Spread | 3.30% | |
Maturity Date | Jul. 31, 2031 | |
First Company Statutory Trust 2003 | ||
Terms of Subordinated Debentures | ||
Balance | $ 2,316 | |
Rate at December 31, 2015 | 3.576% | |
Variable Rate Structure | 3 mo LIBOR plus 3.25% | |
LIBOR Rate Spread | 3.25% | |
Maturity Date | Mar. 26, 2033 | |
Glacier Capital Trust II | ||
Terms of Subordinated Debentures | ||
Balance | $ 46,393 | |
Rate at December 31, 2015 | 3.071% | |
Variable Rate Structure | 3 mo LIBOR plus 2.75% | |
LIBOR Rate Spread | 2.75% | |
Maturity Date | Apr. 7, 2034 | |
Citizens (ID) Statutory Trust I | ||
Terms of Subordinated Debentures | ||
Balance | $ 5,155 | |
Rate at December 31, 2015 | 3.176% | |
Variable Rate Structure | 3 mo LIBOR plus 2.65% | |
LIBOR Rate Spread | 2.65% | |
Maturity Date | Jun. 17, 2034 | |
Glacier Capital Trust III | ||
Terms of Subordinated Debentures | ||
Balance | $ 36,083 | |
Rate at December 31, 2015 | 1.611% | |
Variable Rate Structure | 3 mo LIBOR plus 1.29% | |
LIBOR Rate Spread | 1.29% | |
Maturity Date | Apr. 7, 2036 | |
Glacier Capital Trust IV | ||
Terms of Subordinated Debentures | ||
Balance | $ 30,928 | |
Rate at December 31, 2015 | 2.082% | |
Variable Rate Structure | 3 mo LIBOR plus 1.57% | |
LIBOR Rate Spread | 1.57% | |
Maturity Date | Sep. 15, 2036 | |
Bank of the San Juans Bancorporation Trust I | ||
Terms of Subordinated Debentures | ||
Balance | $ 1,829 | |
Rate at December 31, 2015 | 2.234% | |
Variable Rate Structure | 3 mo LIBOR plus 1.82% | |
LIBOR Rate Spread | 1.82% | |
Maturity Date | Mar. 1, 2037 |
Subordinated Debentures (Deta79
Subordinated Debentures (Details Textual) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instruments [Abstract] | |
Maximum Number of Consecutive Quarters for Deferral of Interest Payments on Trust Preferred Securities | 20 |
Size of company eligible for Tier 1 grandfather provision | 15,000,000,000 |
Interest Rate Swap Summary (Det
Interest Rate Swap Summary (Details) - Interest Rate Swap $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | |
Term, Maturity Date | Oct. 21, 2021 | |
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 | |
Term, Maturity Date | Nov. 30, 2022 | |
[1] | The Company pays the fixed interest rate and the counterparty pays the Company the variable interest rate. |
Derivatives and Hedging Activ81
Derivatives and Hedging Activities Interest Rate Swap Gains or Losses (Details) - Interest Rate Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Expense | |||
Pre-Tax Gains or Losses | |||
Amount of loss reclassified from OCI to interest expense | $ (5,025) | $ (993) | $ 0 |
Other Non-Interest Expense | |||
Pre-Tax Gains or Losses | |||
Amount of loss recognized in other non-interest expense (ineffective portion) | 0 | 0 | 0 |
Other Comprehensive Income | |||
Pre-Tax Gains or Losses | |||
Amount of (loss) gain recognized in OCI (effective portion) | $ (7,857) | $ (19,557) | $ 18,728 |
Derivatives and Hedging Activ82
Derivatives and Hedging Activities Offsetting Assets (Details) - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 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 Activ83
Derivatives and Hedging Activities Offsetting Liabilities (Details) - Interest Rate Swap - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | $ 19,499 | $ 16,668 |
Gross Amounts Offset in the Statements of Financial Position | 0 | 0 |
Net Amounts of Liabilities Presented in the Statements of Financial Position | $ 19,499 | $ 16,668 |
Derivatives and Hedging Activ84
Derivatives and Hedging Activities Derivatives and Hedging Activities (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest rate swap derivative financial instruments | ||
Investment securities pledged as collateral | $ 1,824,819,000 | $ 1,673,263,000 |
Interest Rate Swap | ||
Interest rate swap derivative financial instruments | ||
Interest rate expense recorded on interest rate swap | 5,695,000 | $ 1,066,000 |
Unrealized loss to be reclassified within twelve months | 7,903,000 | |
Investment securities pledged as collateral | 25,730,000 | |
Collateral pledged from counterparties to the Company | 0 | |
Interest Rate Swap One | Interest Rate Swap | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | 160,000,000 | |
Interest Rate Swap Two | Interest Rate Swap | ||
Interest rate swap derivative financial instruments | ||
Forecasted Notional Amount | $ 100,000,000 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Total capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,131,460 | $ 1,065,282 |
Actual, Ratio | 17.17% | 18.93% |
Minimum capital requirement, Amount | $ 527,160 | $ 450,240 |
Minimum capital requirement, Ratio | 8.00% | 8.00% |
Well capitalized requirement, Amount | $ 562,800 | |
Well capitalized requirement, Ratio | 10.00% | |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,048,505 | $ 994,197 |
Actual, Ratio | 15.91% | 17.67% |
Minimum capital requirement, Amount | $ 395,370 | $ 225,120 |
Minimum capital requirement, Ratio | 6.00% | 4.00% |
Well capitalized requirement, Amount | $ 337,680 | |
Well capitalized requirement, Ratio | 6.00% | |
Common Equity Tier 1 (to risk-weighted assets) | ||
Actual, Amount | $ 926,523 | |
Actual, Ratio | 14.06% | |
Minimum capital requirement, Amount | $ 296,528 | |
Minimum capital requirement, Ratio | 4.50% | |
Tier 1 capital (to average assets) | ||
Actual, Amount | $ 1,048,505 | $ 994,197 |
Actual, Ratio | 12.01% | 12.45% |
Minimum capital requirement, Amount | $ 349,066 | $ 319,505 |
Minimum capital requirement, Ratio | 4.00% | 4.00% |
Glacier Bank | ||
Total capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,093,669 | $ 1,023,669 |
Actual, Ratio | 16.66% | 18.25% |
Minimum capital requirement, Amount | $ 525,228 | $ 448,739 |
Minimum capital requirement, Ratio | 8.00% | 8.00% |
Well capitalized requirement, Amount | $ 656,535 | $ 560,924 |
Well capitalized requirement, Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,010,981 | $ 952,815 |
Actual, Ratio | 15.40% | 16.99% |
Minimum capital requirement, Amount | $ 393,921 | $ 224,370 |
Minimum capital requirement, Ratio | 6.00% | 4.00% |
Well capitalized requirement, Amount | $ 525,228 | $ 336,554 |
Well capitalized requirement, Ratio | 8.00% | 6.00% |
Common Equity Tier 1 (to risk-weighted assets) | ||
Actual, Amount | $ 1,010,981 | |
Actual, Ratio | 15.40% | |
Minimum capital requirement, Amount | $ 295,441 | |
Minimum capital requirement, Ratio | 4.50% | |
Well capitalized requirement, Amount | $ 426,748 | |
Well capitalized requirement, Ratio | 6.50% | |
Tier 1 capital (to average assets) | ||
Actual, Amount | $ 1,010,981 | $ 952,815 |
Actual, Ratio | 11.66% | 12.03% |
Minimum capital requirement, Amount | $ 346,715 | $ 316,938 |
Minimum capital requirement, Ratio | 4.00% | 4.00% |
Well capitalized requirement, Amount | $ 433,394 | $ 396,173 |
Well capitalized requirement, Ratio | 5.00% | 5.00% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Changes in shares granted for stock options for the year | |
Options outstanding, Beginning Balance | shares | 1,000 |
Options, Exercised | shares | (1,000) |
Options, forfeited or expired | shares | 0 |
Options outstanding, Ending Balance | shares | 0 |
Options, Exercisable | shares | 0 |
Weighted-Average Exercise Price | |
Options outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 16.73 |
Options, exercised, weighted average exercise price | $ / shares | 16.73 |
Options, forfeited or expired, weighted average exercise price | $ / shares | 0 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares | 0 |
Options exercisable, Weighted Average Exercise Price | $ / shares | $ 0 |
Stock-based Compensation Plan S
Stock-based Compensation Plan Summary of Restricted Stock Award Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Restricted stock award activity for the year | |
Restricted Stock Non-Vested, Beginning Balance | shares | 162,053 |
Restricted Stock, Granted | shares | 133,414 |
Restricted Stock, Vested | shares | (81,294) |
Restricted Stock, Forfeited | shares | (8,184) |
Restricted Stock Non-Vested, Ending Balance | shares | 205,989 |
Weighted-average grant date fair value | |
Restricted stock, weighted average grant date fair value, beginning balance | $ / shares | $ 22.04 |
Restricted stock, granted, weighted average grant date fair value | $ / shares | 25.35 |
Restricted stock, vested, weighted average grant date fair value | $ / shares | 21.66 |
Restricted stock, forfeited, weighted average grant date fair value | $ / shares | 24.36 |
Restricted stock, weighted average grant date fair value, ending balance | $ / shares | $ 24.24 |
Stock-based Compensation Plan88
Stock-based Compensation Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based Compensation Plans | |||
Number of stock-based compensation plans | 2 | ||
Shares available to grant to employees and directors | 2,485,765 | ||
Stock Options | |||
Stock Options | |||
Number of stock options granted | 0 | 0 | 0 |
Unrecognized compensation expense | $ 0 | ||
Total intrinsic value of options exercised | 13,000 | $ 778,000 | $ 1,907,000 |
Total intrinsic value of options exercised, tax benefit | 5,000 | 302,000 | 742,000 |
Cash received from options exercised | 17,000 | 871,000 | 4,327,000 |
Restricted Stock | |||
Restricted Stock Awards | |||
Compensation expense related to awards | 2,470,000 | 1,603,000 | 768,000 |
Income tax benefit related to awards | 957,000 | 622,000 | 299,000 |
Unrecognized compensation expense | $ 2,965,000 | ||
Unrecognized compensation expense, recognized over weighted-average period | 2 years | ||
Fair value of awards that vested | $ 1,761,000 | 953,000 | 197,000 |
Tax benefit of awards that vested | $ 795,000 | $ 532,000 | $ 77,000 |
Average remaining contractual term on non-vested awards | 11 months | ||
Aggregate intrinsic value of non-vested awards | $ 5,465,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
401(k) and Profit Sharing Plans | |||
401(k) and Profit Sharing Plans | |||
Minimum age required to be considered eligible for plan | 21 | ||
Period of Employment Required to be Eligible for Plan | 3 | ||
Minimum number of quarters required to be eligible for employer discretionary contribution | 1 | ||
Minimum number of hours required to be considered eligible for employer discretionary contribution | 501 | ||
Percent rate for non-elective safe harbor contribution as component of profit sharing plan | 3.00% | ||
Profit Sharing Plan Expense | $ 8,017,000 | $ 7,107,000 | $ 5,862,000 |
Maximum percentage of annual compensation allowable for contribution by eligible employees | 60.00% | ||
Percentage of amount out of first specific percent of employee's contribution matched under plan | 50.00% | ||
Percentage of employee's contribution required to determine the matched amount under the plan | 6.00% | ||
Employee Benefits Plans | |||
Company's contribution to the plan | $ 2,629,000 | 2,246,000 | 1,935,000 |
Deferred Compensation Plans | |||
Deferred Compensation Plans | |||
Percentage of salary for deferral of cash payments | 50.00% | ||
Percentage of bonuses and directors fees for deferral of cash payments | 100.00% | ||
Total amount deferred | $ 720,000 | 591,000 | 376,000 |
Liability related to obligations of deferred compensation plans | $ 11,971,000 | 11,165,000 | |
Employee Benefits Plans | |||
Credit earning rate as a percentage of return on equity | 50.00% | ||
Total earnings for the plan | $ 386,000 | 369,000 | 515,000 |
Supplemental Employee Retirement Plan | |||
Employee Benefits Plans | |||
Company's contribution to the plan | $ 224,000 | 151,000 | 76,000 |
Credit earning rate as a percentage of return on equity | 50.00% | ||
Total earnings for the plan | $ 69,000 | $ 59,000 | $ 48,000 |
Other Expenses (Details)
Other Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Expenses | |||
Debit card expenses | $ 6,153 | $ 5,802 | $ 6,131 |
Consulting and outside services | 5,525 | 4,179 | 3,243 |
VIE write-downs, losses and other expenses | 4,528 | 4,231 | 4,210 |
Employee expenses | 4,034 | 3,557 | 2,686 |
Postage | 3,716 | 3,391 | 3,302 |
Checking and operating expenses | 3,554 | 3,517 | 3,091 |
Printing and supplies | 3,530 | 3,547 | 3,112 |
Telephone | 3,353 | 2,911 | 2,498 |
Loan expenses | 2,824 | 2,513 | 2,444 |
Accounting and audit fees | 1,401 | 1,393 | 1,146 |
ATM expenses | 1,082 | 1,268 | 1,087 |
Legal fees | 1,082 | 1,455 | 1,728 |
Other | 3,983 | 3,884 | 4,178 |
Total other expenses | $ 44,765 | $ 41,648 | $ 38,856 |
Summary of Income Tax Expense (
Summary of Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Current | ||||||||||||
Federal | $ 28,705,000 | $ 21,860,000 | $ 18,377,000 | |||||||||
State | 9,374,000 | 8,118,000 | 7,007,000 | |||||||||
Total current income tax expense | 38,079,000 | 29,978,000 | 25,384,000 | |||||||||
Deferred | ||||||||||||
Federal | [1] | (3,451,000) | 5,016,000 | 3,918,000 | ||||||||
State | [1] | (629,000) | 915,000 | 715,000 | ||||||||
Total deferred income tax (benefit) expense | [1] | (4,080,000) | 5,931,000 | 4,633,000 | ||||||||
Total income tax expense | $ 8,341,000 | $ 9,305,000 | $ 7,488,000 | $ 8,865,000 | $ 8,846,000 | $ 9,800,000 | $ 8,350,000 | $ 8,913,000 | 33,999,000 | 35,909,000 | 30,017,000 | |
Tax benefit of operating loss carryforwards | $ 391,000 | $ 0 | $ 0 | |||||||||
[1] | Includes tax benefit of operating loss carryforwards of $391,000, $0 and $0 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Summary of Effective Tax Rate (
Summary of Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective income tax rate reconciliation | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal income tax benefit | 3.70% | 4.00% | 4.00% |
Tax-exempt interest income | (12.60%) | (11.50%) | (12.20%) |
Tax credits | (3.00%) | (2.80%) | (3.20%) |
Other, net | (0.50%) | (0.50%) | 0.30% |
Effective tax rate | 22.60% | 24.20% | 23.90% |
Deferred Tax Assets and Deferre
Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Allowance for loan and lease losses | $ 50,123 | $ 50,013 |
Other real estate owned | 8,380 | 8,200 |
Deferred compensation | 8,166 | 5,024 |
Interest rate swap agreements | 7,554 | 6,467 |
Acquisition fair market value adjustments | 5,842 | 5,302 |
Income tax credits and net operating loss carryforwards | 3,590 | 4,652 |
Employee benefits | 3,165 | 2,839 |
Other | 5,433 | 4,290 |
Total gross deferred tax assets | 92,253 | 86,787 |
Deferred tax liabilities | ||
Available-for-sale securities | (8,812) | (17,716) |
Deferred loan costs | (7,427) | (6,419) |
Intangibles | (6,272) | (4,290) |
FHLB stock dividends | (4,601) | (10,342) |
Depreciation of premises and equipment | (2,376) | (2,358) |
Other | (4,290) | (3,925) |
Total gross deferred tax liabilities | (33,778) | (45,050) |
Net deferred tax asset | $ 58,475 | $ 41,737 |
Years Subject to Examination (D
Years Subject to Examination (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Federal | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2008, 2009, 2010, 2012, 2013 and 2014 |
Montana | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2012, 2013 and 2014 |
Idaho | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2009, 2010, 2011, 2012, 2013 and 2014 |
Colorado | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2008, 2009, 2010, 2011, 2012, 2013 and 2014 |
Utah | |
Income Tax Examination | |
Income tax return jurisdictions and years that remain subject to examination | 2012, 2013 and 2014 |
Federal and State Income Taxe95
Federal and State Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Uncertainties | ||
Unrecognized income tax benefit | $ 0 | $ 0 |
Accrued liabilities for the payment of interest or penalties | 0 | 0 |
Valuation Allowance | ||
Deferred tax valuation allowance | 0 | $ 0 |
Federal and State Income Taxes | ||
Base year reserve for bad debts | 3,600,000 | |
Federal | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Amount | $ 8,882,000 | |
Federal | Earliest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | |
Federal | Latest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2031 | |
Colorado | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Amount | $ 15,985,000 | |
Colorado | Earliest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | |
Colorado | Latest Tax Year | ||
Operating Loss Carryforwards | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2031 |
Accumulated Other Comprehensi96
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning | $ 17,744 | $ 9,645 | $ 47,962 |
Other comprehensive income (loss) before reclassification | (18,791) | 7,366 | (38,500) |
Amounts reclassified from accumulated other comprehensive income | 3,036 | 733 | 183 |
Net current period other comprehensive income (loss) | (15,755) | 8,099 | (38,317) |
Balance, end | 1,989 | 17,744 | 9,645 |
Available-For-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning | 27,945 | 8,485 | 58,245 |
Other comprehensive income (loss) before reclassification | (13,968) | 19,335 | (49,943) |
Amounts reclassified from accumulated other comprehensive income | (42) | 125 | 183 |
Net current period other comprehensive income (loss) | (14,010) | 19,460 | (49,760) |
Balance, end | 13,935 | 27,945 | 8,485 |
Derivatives Used for Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance, beginning | (10,201) | 1,160 | (10,283) |
Other comprehensive income (loss) before reclassification | (4,823) | (11,969) | 11,443 |
Amounts reclassified from accumulated other comprehensive income | 3,078 | 608 | 0 |
Net current period other comprehensive income (loss) | (1,745) | (11,361) | 11,443 |
Balance, end | $ (11,946) | $ (10,201) | $ 1,160 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic and Diluted Earnings Per Share | |||||||||||
Net Income | $ 29,508 | $ 29,614 | $ 29,335 | $ 27,670 | $ 28,054 | $ 29,294 | $ 28,677 | $ 26,730 | $ 116,127 | $ 112,755 | $ 95,644 |
Average outstanding shares - basic | 75,542,455 | 74,641,957 | 73,191,713 | ||||||||
Add: dilutive stock options and awards | 53,126 | 45,358 | 68,565 | ||||||||
Average outstanding shares - diluted | 75,595,581 | 74,687,315 | 73,260,278 | ||||||||
Basic earnings per share | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.37 | $ 0.37 | $ 0.40 | $ 0.38 | $ 0.36 | $ 1.54 | $ 1.51 | $ 1.31 |
Diluted earnings per share | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.37 | $ 0.37 | $ 0.40 | $ 0.38 | $ 0.36 | $ 1.54 | $ 1.51 | $ 1.31 |
Earnings Per Share | |||||||||||
Stock options and restricted stock awards excluded from the diluted average outstanding share calculation | 0 | 0 | 38,915 |
Condensed Statements of Financi
Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ||||
Cash on hand and in banks | $ 117,137 | $ 122,834 | ||
Interest bearing cash deposits | 70,036 | 318,550 | ||
Cash and cash equivalents | 193,253 | 442,409 | ||
Investment securities, available-for-sale | 2,610,760 | 2,387,428 | ||
Other assets | 71,117 | 67,828 | ||
Total assets | 9,089,232 | 8,306,507 | ||
Liabilities and Stockholders' Equity | ||||
Subordinated debentures | 125,848 | 125,705 | ||
Other liabilities | 114,062 | 102,026 | ||
Total liabilities | 8,012,582 | 7,278,460 | ||
Common stock | 761 | 750 | ||
Paid-in capital | 736,368 | 708,356 | ||
Retained earnings | 337,532 | 301,197 | ||
Accumulated other comprehensive income | 1,989 | 17,744 | $ 9,645 | $ 47,962 |
Total stockholders’ equity | 1,076,650 | 1,028,047 | $ 963,250 | $ 900,949 |
Total liabilities and stockholders’ equity | 9,089,232 | 8,306,507 | ||
Parent Company | ||||
Assets | ||||
Cash on hand and in banks | 1,854 | 4,019 | ||
Interest bearing cash deposits | 46,808 | 51,127 | ||
Cash and cash equivalents | 48,662 | 55,146 | ||
Investment securities, available-for-sale | 65 | 91 | ||
Other assets | 11,553 | 8,511 | ||
Investment in subsidiaries | 1,175,844 | 1,121,937 | ||
Total assets | 1,236,124 | 1,185,685 | ||
Liabilities and Stockholders' Equity | ||||
Dividends Payable | 22,893 | 22,557 | ||
Subordinated debentures | 125,848 | 125,705 | ||
Other liabilities | 10,733 | 9,376 | ||
Total liabilities | 159,474 | 157,638 | ||
Common stock | 761 | 750 | ||
Paid-in capital | 736,368 | 708,356 | ||
Retained earnings | 337,532 | 301,197 | ||
Accumulated other comprehensive income | 1,989 | 17,744 | ||
Total stockholders’ equity | 1,076,650 | 1,028,047 | ||
Total liabilities and stockholders’ equity | $ 1,236,124 | $ 1,185,685 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income | |||||||||||
Loss on sale of investments | $ 19 | $ (188) | $ (299) | ||||||||
Expenses | |||||||||||
Compensation and employee benefits | 134,409 | 118,571 | 104,221 | ||||||||
Other operating expenses | 44,765 | 41,648 | 38,856 | ||||||||
Total non-interest expense | $ 62,203 | $ 59,112 | $ 59,945 | $ 55,497 | $ 55,698 | $ 54,238 | $ 52,673 | $ 50,070 | 236,757 | 212,679 | 195,317 |
Income tax benefit | (8,341) | (9,305) | (7,488) | (8,865) | (8,846) | (9,800) | (8,350) | (8,913) | (33,999) | (35,909) | (30,017) |
Net Income | $ 29,508 | $ 29,614 | $ 29,335 | $ 27,670 | $ 28,054 | $ 29,294 | $ 28,677 | $ 26,730 | 116,127 | 112,755 | 95,644 |
Total Comprehensive Income | 100,372 | 120,854 | 57,327 | ||||||||
Parent Company | |||||||||||
Income | |||||||||||
Dividends from subsidiaries | 109,000 | 78,500 | 65,445 | ||||||||
Loss on sale of investments | 0 | 0 | (3,248) | ||||||||
Other income | 196 | 199 | 966 | ||||||||
Intercompany charges for services | 10,562 | 9,283 | 7,387 | ||||||||
Total income | 119,758 | 87,982 | 70,550 | ||||||||
Expenses | |||||||||||
Compensation and employee benefits | 13,205 | 10,773 | 9,175 | ||||||||
Other operating expenses | 7,313 | 6,824 | 6,536 | ||||||||
Total non-interest expense | 20,518 | 17,597 | 15,711 | ||||||||
Income before income tax benefit and equity in undistributed net income of subsidiaries | 99,240 | 70,385 | 54,839 | ||||||||
Income tax benefit | 3,105 | 2,919 | 3,676 | ||||||||
Income before equity in undistributed net income of subsidiaries | 102,345 | 73,304 | 58,515 | ||||||||
Equity in undistributed net income of subsidiaries | 13,782 | 39,451 | 37,129 | ||||||||
Net Income | 116,127 | 112,755 | 95,644 | ||||||||
Total Comprehensive Income | $ 100,372 | $ 120,854 | $ 57,327 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||||||||||
Net income | $ 29,508 | $ 29,614 | $ 29,335 | $ 27,670 | $ 28,054 | $ 29,294 | $ 28,677 | $ 26,730 | $ 116,127 | $ 112,755 | $ 95,644 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Loss on sale of investments | (19) | 188 | 299 | ||||||||
Excess tax (benefits) deficiencies from stock-based compensation | (102) | (138) | 223 | ||||||||
Net cash provided by operating activities | 171,466 | 182,734 | 334,095 | ||||||||
Investing Activities | |||||||||||
Sales of available-for-sale securities | 136,777 | 169,372 | 181,971 | ||||||||
Maturities, prepayments and calls of available-for-sale securities | 663,828 | 628,238 | 1,682,363 | ||||||||
Net addition of premises and equipment | (18,224) | (14,389) | (8,977) | ||||||||
Net sale (purchase) of non-marketable equity securities | 27,770 | 801 | 583 | ||||||||
Net cash (used in) provided by investing activities | (676,571) | 158,893 | 149,237 | ||||||||
Financing Activities | |||||||||||
Net increase in other borrowed funds | (566) | (933) | (1,502) | ||||||||
Cash dividends paid | (79,456) | (50,944) | (44,232) | ||||||||
Excess tax benefits (deficiencies) from stock-based compensation | 102 | 138 | (223) | ||||||||
Stock-based compensation activity | 17 | 785 | 4,326 | ||||||||
Net cash used in financing activities | 255,949 | (54,875) | (514,715) | ||||||||
Net (decrease) increase in cash and cash equivalents | (249,156) | 286,752 | (31,383) | ||||||||
Cash and cash equivalents at beginning of period | 442,409 | 155,657 | 442,409 | 155,657 | 187,040 | ||||||
Cash and cash equivalents at end of period | 193,253 | 442,409 | 193,253 | 442,409 | 155,657 | ||||||
Parent Company | |||||||||||
Operating Activities | |||||||||||
Net income | 116,127 | 112,755 | 95,644 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Subsidiary income in excess of dividends distributed | (13,782) | (39,451) | (37,129) | ||||||||
Loss on sale of investments | 0 | 0 | 3,248 | ||||||||
Excess tax (benefits) deficiencies from stock-based compensation | (102) | (138) | 223 | ||||||||
Net change in other assets and other liabilities | 307 | 140 | 2,575 | ||||||||
Net cash provided by operating activities | 102,550 | 73,306 | 64,561 | ||||||||
Investing Activities | |||||||||||
Sales of available-for-sale securities | 0 | 0 | 23,990 | ||||||||
Maturities, prepayments and calls of available-for-sale securities | 0 | 0 | 2,571 | ||||||||
Changes in investment securities and other stock - intercompany | 0 | 0 | (946) | ||||||||
Net addition of premises and equipment | (1,405) | (179) | (603) | ||||||||
Net sale (purchase) of non-marketable equity securities | 22 | (667) | 0 | ||||||||
Equity contribution to subsidiaries | (28,457) | (18,115) | (11,336) | ||||||||
Net cash (used in) provided by investing activities | (29,840) | (18,961) | 13,676 | ||||||||
Financing Activities | |||||||||||
Net increase in other borrowed funds | 143 | 143 | 144 | ||||||||
Cash dividends paid | (79,456) | (50,944) | (44,232) | ||||||||
Excess tax benefits (deficiencies) from stock-based compensation | 102 | 138 | (223) | ||||||||
Stock-based compensation activity | 17 | 785 | 4,326 | ||||||||
Net cash used in financing activities | (79,194) | (49,878) | (39,985) | ||||||||
Net (decrease) increase in cash and cash equivalents | (6,484) | 4,467 | 38,252 | ||||||||
Cash and cash equivalents at beginning of period | $ 55,146 | $ 50,679 | 55,146 | 50,679 | 12,427 | ||||||
Cash and cash equivalents at end of period | $ 48,662 | $ 55,146 | $ 48,662 | $ 55,146 | $ 50,679 |
Unaudited Quarterly Financia101
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summarized unaudited quarterly financial data | |||||||||||
Interest income | $ 83,211 | $ 80,367 | $ 78,617 | $ 77,486 | $ 76,179 | $ 75,690 | $ 73,963 | $ 74,087 | $ 319,681 | $ 299,919 | $ 263,576 |
Interest expense | 7,215 | 7,309 | 7,369 | 7,382 | 7,368 | 6,430 | 6,528 | 6,640 | 29,275 | 26,966 | 28,758 |
Net interest income | 75,996 | 73,058 | 71,248 | 70,104 | 68,811 | 69,260 | 67,435 | 67,447 | 290,406 | 272,953 | 234,818 |
Provision for loan losses | 411 | 826 | 282 | 765 | 191 | 360 | 239 | 1,122 | 2,284 | 1,912 | 6,887 |
Net interest income after provision for loan losses | 75,585 | 72,232 | 70,966 | 69,339 | 68,620 | 68,900 | 67,196 | 66,325 | 288,122 | 271,041 | 227,931 |
Non-interest income | 24,467 | 25,799 | 25,802 | 22,693 | 23,978 | 24,432 | 22,504 | 19,388 | 98,761 | 90,302 | 93,047 |
Non-interest expense | 62,203 | 59,112 | 59,945 | 55,497 | 55,698 | 54,238 | 52,673 | 50,070 | 236,757 | 212,679 | 195,317 |
Income before income taxes | 37,849 | 38,919 | 36,823 | 36,535 | 36,900 | 39,094 | 37,027 | 35,643 | 150,126 | 148,664 | 125,661 |
Federal and state income tax expense | 8,341 | 9,305 | 7,488 | 8,865 | 8,846 | 9,800 | 8,350 | 8,913 | 33,999 | 35,909 | 30,017 |
Net Income | $ 29,508 | $ 29,614 | $ 29,335 | $ 27,670 | $ 28,054 | $ 29,294 | $ 28,677 | $ 26,730 | $ 116,127 | $ 112,755 | $ 95,644 |
Basic earnings per share | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.37 | $ 0.37 | $ 0.40 | $ 0.38 | $ 0.36 | $ 1.54 | $ 1.51 | $ 1.31 |
Diluted earnings per share | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.37 | $ 0.37 | $ 0.40 | $ 0.38 | $ 0.36 | $ 1.54 | $ 1.51 | $ 1.31 |
Fair Value Measurements on a Re
Fair Value Measurements on a Recurring Basis (Details) - Recurring measurements - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Total assets measured at fair value on a recurring basis | $ 2,610,760 | $ 2,387,428 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 19,499 | 16,668 |
Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 19,499 | 16,668 |
U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 47,451 | 44 |
U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 93,167 | 21,945 |
State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 885,019 | 997,969 |
Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 384,163 | 314,854 |
Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 1,200,960 | 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 | 2,610,760 | 2,387,428 |
Financial Liabilities | ||
Total liabilities measured at fair value on a recurring basis | 19,499 | 16,668 |
Level 2 | Interest rate swaps | ||
Financial Liabilities | ||
Interest rate swaps | 19,499 | 16,668 |
Level 2 | U.S. government and federal agency | ||
Financial Assets | ||
Investment securities, available-for-sale | 47,451 | 44 |
Level 2 | U.S. government sponsored enterprises | ||
Financial Assets | ||
Investment securities, available-for-sale | 93,167 | 21,945 |
Level 2 | State and local governments | ||
Financial Assets | ||
Investment securities, available-for-sale | 885,019 | 997,969 |
Level 2 | Corporate bonds | ||
Financial Assets | ||
Investment securities, available-for-sale | 384,163 | 314,854 |
Level 2 | Residential mortgage-backed securities | ||
Financial Assets | ||
Investment securities, available-for-sale | 1,200,960 | 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) - Nonrecurring Measurements - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets with a recorded change from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | $ 7,609 | $ 3,000 |
Collateral-dependent impaired loans, net of ALLL | 12,938 | 15,480 |
Total assets measured at fair value on a non-recurring basis | 20,547 | 18,480 |
Level 1 | ||
Assets with a recorded change from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 2 | ||
Assets with a recorded change from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 0 | 0 |
Collateral-dependent impaired loans, net of ALLL | 0 | 0 |
Total assets measured at fair value on a non-recurring basis | 0 | 0 |
Level 3 | ||
Assets with a recorded change from re-measuring at fair value on a non-recurring basis | ||
Other real estate owned | 7,609 | 3,000 |
Collateral-dependent impaired loans, net of ALLL | 12,938 | 15,480 |
Total assets measured at fair value on a non-recurring basis | $ 20,547 | $ 18,480 |
Fair Value of Assets and Lia104
Fair Value of Assets and Liabilities Quantitative Information about Level 3 Fair Value Measurements (Details) - Nonrecurring Measurements - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 20,547 | $ 18,480 | |
Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 20,547 | 18,480 | |
Other real estate owned | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 7,609 | 3,000 | |
Other real estate owned | Sales Comparison Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 4,067 | 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] | 7.90% | 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 | $ 12,938 | $ 15,480 | |
Collateral-dependent Impaired Loans, Net of ALLL | Sales Comparison Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 9,465 | 6,330 | |
Collateral-dependent Impaired Loans, Net of ALLL | Combined Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | 3,311 | 3,809 | |
Collateral-dependent Impaired Loans, Net of ALLL | Cost Approach | Level 3 | |||
Quantitative Information About Level 3 Fair Value Measurements | |||
Fair Value | $ 162 | 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] | 8.00% | 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] | 20.00% | 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] | 8.90% | 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] | 6.10% | 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 | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | $ 193,253 | $ 442,409 |
Investment securities, available-for-sale | 2,610,760 | 2,387,428 |
Investment securities, held-to-maturity | 702,072 | 520,997 |
Loans held-for-sale | 56,514 | 46,726 |
Loans receivable, net of ALLL | 4,948,984 | 4,358,342 |
Accrued interest receivable | 44,524 | 40,587 |
Non-marketable equity securities | 27,495 | 52,868 |
Total financial assets | 8,583,602 | 7,849,357 |
Financial Liabilities | ||
Deposits | 6,945,008 | 6,345,212 |
FHLB advances | 394,131 | 296,944 |
Repurchase agreements and other borrowed funds | 430,016 | 404,418 |
Subordinated debentures | 125,848 | 125,705 |
Accrued interest payable | 3,517 | 4,155 |
Interest rate swaps | 19,499 | 16,668 |
Total financial liabilities | 7,918,019 | 7,193,102 |
Estimated Fair Value | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 193,253 | 442,409 |
Investment securities, available-for-sale | 0 | 0 |
Investment securities, held-to-maturity | 0 | 0 |
Loans held-for-sale | 56,514 | 46,726 |
Loans receivable, net of ALLL | 0 | 0 |
Accrued interest receivable | 44,524 | 40,587 |
Non-marketable equity securities | 0 | 0 |
Total financial assets | 294,291 | 529,722 |
Financial Liabilities | ||
Deposits | 5,654,638 | 4,928,771 |
FHLB advances | 0 | 0 |
Repurchase agreements and other borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 3,517 | 4,155 |
Interest rate swaps | 0 | 0 |
Total financial liabilities | 5,658,155 | 4,932,926 |
Estimated Fair Value | Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Investment securities, available-for-sale | 2,610,760 | 2,387,428 |
Investment securities, held-to-maturity | 729,513 | 550,946 |
Loans held-for-sale | 0 | 0 |
Loans receivable, net of ALLL | 4,851,934 | 4,288,417 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 27,495 | 52,868 |
Total financial assets | 8,219,702 | 7,279,659 |
Financial Liabilities | ||
Deposits | 1,293,506 | 1,421,234 |
FHLB advances | 401,530 | 312,363 |
Repurchase agreements and other borrowed funds | 430,016 | 404,418 |
Subordinated debentures | 81,840 | 76,711 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 19,499 | 16,668 |
Total financial liabilities | 2,226,391 | 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 | 132,649 | 149,769 |
Accrued interest receivable | 0 | 0 |
Non-marketable equity securities | 0 | 0 |
Total financial assets | 132,649 | 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 |
Contingencies and Commitment106
Contingencies and Commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Outstanding Commitments | ||
Outstanding commitments | $ 1,263,338 | $ 976,711 |
Commitments to Extend Credit | ||
Outstanding Commitments | ||
Outstanding commitments | 1,240,923 | 960,180 |
Letters of Credit | ||
Outstanding Commitments | ||
Outstanding commitments | $ 22,415 | $ 16,531 |
Consideration Transferred, Iden
Consideration Transferred, Identifiable Net Assets Acquired and Goodwill Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liabilities assumed | |||
Goodwill recognized | $ 10,932 | $ 0 | $ 23,606 |
Bargain purchase gain | 0 | (680) | $ 0 |
Canon National Bank | |||
Fair value of consideration transferred | |||
Fair value of Company shares issued, net of equity issuance costs | 15,163 | ||
Cash consideration for outstanding shares | 16,145 | ||
Contingent consideration | 0 | ||
Total fair value of consideration transferred | 31,308 | ||
Identifiable assets acquired | |||
Cash and cash equivalents | 17,860 | ||
Investment securities | 68,486 | ||
Loans receivable | 159,759 | ||
Core deposit intangible | 4,532 | ||
Accrued income and other assets | 9,689 | ||
Total identifiable assets acquired | 260,326 | ||
Liabilities assumed | |||
Deposits | 237,326 | ||
FHLB advances and repurchase agreements | 0 | ||
Accrued expenses and other liabilities | 1,487 | ||
Total liabilities assumed | 238,813 | ||
Total identifiable net assets | 21,513 | ||
Goodwill recognized | 9,795 | ||
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 | ||
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 | ||
FNBR Holding Corporation | |||
Fair value of consideration transferred | |||
Fair value of Company shares issued, net of equity issuance costs | 15,127 | ||
Cash consideration for outstanding shares | 16,690 | ||
Contingent consideration | 0 | ||
Total fair value of consideration transferred | 31,817 | ||
Identifiable assets acquired | |||
Cash and cash equivalents | 14,578 | ||
Investment securities | 157,018 | ||
Loans receivable | 137,488 | ||
Core deposit intangible | 4,199 | ||
Accrued income and other assets | 35,884 | ||
Total identifiable assets acquired | 349,167 | ||
Liabilities assumed | |||
Deposits | 309,641 | ||
FHLB advances and repurchase agreements | 0 | ||
Accrued expenses and other liabilities | 7,029 | ||
Total liabilities assumed | 316,670 | ||
Total identifiable net assets | 32,497 | ||
Bargain purchase gain | $ (680) |
Pro Forma Summary (Details)
Pro Forma Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
2015 acquisitions | |||
Pro Forma Information | |||
Net interest income and non-interest income | $ 401,140 | $ 383,387 | |
Net income | $ 115,613 | 115,899 | |
2014 acquisitions | |||
Pro Forma Information | |||
Net interest income and non-interest income | 371,772 | $ 340,393 | |
Net income | $ 113,364 | $ 99,275 |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition | |||
Bargain purchase gain, amount | $ 0 | $ 680,000 | $ 0 |
Canon National Bank | |||
Business Acquisition | |||
Effective Date of Acquisition | Oct. 31, 2015 | ||
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 | ||
Loans receivable | 159,759,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due | 164,568,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due, Expected to be Uncollectible | 0 | ||
Core deposit intangible | $ 4,532,000 | ||
Core Deposit Intangible Assets, Weighted Average Useful Life | 10 years | ||
Third-party Acquisition Related Costs | $ 707,000 | ||
Net interest income and non-interest income | 2,606,000 | ||
Net income | $ 563,000 | ||
Montana Community Banks, Inc. | |||
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 | 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 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due, Expected to be Uncollectible | 0 | ||
Core deposit intangible | $ 2,087,000 | ||
Core Deposit Intangible Assets, Weighted Average Useful Life | 10 years | ||
Third-party Acquisition Related Costs | $ 1,605,000 | ||
Net interest income and non-interest income | 7,492,000 | ||
Net income | $ 1,808,000 | ||
FNBR Holding Corporation | |||
Business Acquisition | |||
Effective Date of Acquisition | Aug. 31, 2014 | ||
Percentage of Outstanding Common Stock Acquired | 100.00% | ||
Business Combination, Consideration Transferred | $ 31,817,000 | ||
Number of Shares Issued for Aquisition | 555,732 | ||
Cash consideration for outstanding shares | $ 16,690,000 | ||
Bargain purchase gain, amount | 680,000 | ||
Loans receivable | 137,488,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due | 146,019,000 | ||
Loans Receivable Acquired, Gross Principal and Contractual Interest Due, Expected to be Uncollectible | 0 | ||
Core deposit intangible | $ 4,199,000 | ||
Core Deposit Intangible Assets, Weighted Average Useful Life | 10 years | ||
Third-party Acquisition Related Costs | $ 552,000 | ||
Net interest income and non-interest income | 6,672,000 | ||
Net income | $ 1,675,000 |